Internet users to break through 500 million, mobile web will become a hot investment and application

China Internet Network Information Center (CNNIC) January 16 in Beijing issued the 29th China Internet Development Statistics Report, as at the end of December 2011, the scale of Chinese Internet users exceeded 500 million. Internet penetration rate has dropped, the overall growth of netizens into the platform period.

Internet users to break through 500 million, mobile web will become a hot investment and application

According to the report, as of the end of December 2011, China's internet users reached 513 million, the whole year added 55.8 million netizens, internet penetration rate than the end of the year up 4%, to 38.3%. China's mobile internet users reached 356 million, an increase of 17.5%, compared with previous years, China's overall growth of internet users into the platform period.

China's Internet users continue to expand, but the growth rate gradually slowed. The report analyses that in the past 5 years, the number of people who push the rapid growth of netizens, internet penetration rate is about to hit the top, while other age and education level of people to accept the Internet is difficult to reach the level of young and highly educated groups, resulting in the growth of Chinese netizens slowed.

The report suggests that late-stage recipients of new technologies, such as the elderly and the less educated, should try to use Internet tools to reduce Internet access and use thresholds.

As a carrier of mobile internet, China's mobile phone users reached 356 million, an increase of 17.5% year-on-year, creating a huge market. The report says future innovations will be the main force driving the growth of mobile internet users. At present, the penetration rate of mobile phone users is only 36.5%, the lack of Internet demand is the main reason why most mobile phone users fail to access mobile Internet.

With the popularity of smartphones, the huge number of smartphone users has provided the basis for the explosion of mobile internet applications, and the major Internet service providers have also begun to lay down mobile internet, and fierce competition will create innovative applications that can meet the needs of segments of the population, and further push mobile internet users into the next round of high-speed growth cycle.

Group purchase number of users up to 64.65 million, group purchase site is still facing the problem of profitability

The report shows that as of the end of 2011, China's Web site reached 2.296 million, a 20% increase from the end of 2010, is expected to enter a new growth cycle. The report analyses that, the website scale picks up, on the one hand benefit from the traditional enterprise to the Internet attention, the construction and the application advancement; On the other hand, the website scale rebound, is the bubble is squeezed, the water evaporates after the rebound, China's internet industry will be healthier, the network application will be more solid

Group purchase is the 2011 Internet hotspot. The report shows that 2011, the number of customers in China reached 64.65 million, the annual growth of up to 244.8%. Group buying users enthusiasm, but the number of group buying site in the second half began to decline.

The report analysis pointed out that, because the group buying service itself has the low threshold, the weak restraint and so on, in addition buys the website Upfront invests the capital to be big, encounters the capital market whole to turn cold, the market negative factor appears, causes the group buying website quantity to drop greatly. Although the flow is big, although the popularity is sufficient, but still face the embarrassing situation that the profit is difficult.

The report argues that the entry of other Internet service providers, represented by shopping websites and travel bookings, will squeeze the space for small group buying sites, while group buying sites with clear positioning and core competitiveness will still be favored by the market.

The interactive mode of netizens has changed obviously, and the application of e-commerce has developed steadily

In several major traditional Internet applications, in recent years, the network news usage rate continues to drop, 2011 is especially obvious. The report noted that in 2011, Internet News users grew by only 3.9%, using 367 million, and the use rate dropped from 77.2% in the previous year to 71.5% per cent.

and E-commerce applications, including online shopping, online payments, online banking, travel reservations, continued to develop steadily in 2011, with online shopping users reaching 194 million, up 20.8% from the end of last year, and online payment users and online banking users growing 21.6% and 19.2% , the current user size is 167 million and 166 million respectively.

The report also points out that nearly half of netizens currently use micro-blogs, up to 48.7% per cent, as a result of the rapid rise of microblogs. Traditional communication applications have fallen sharply: email usage dropped from 54.6% in 2010 to 47.9%, forum/bbs from 32.4% to 28.2%, and blog/personal space from 64.4% to 62.1%.

Entertainment applications continue to decline, the network video industry as a whole still loss

2011, the use of most of the network entertainment applications continue to decline at the same time, the use of network video is on the rise, the network video industry's development momentum is relatively good. The report shows that in 2011, internet music, online games and online entertainment applications, such as the size of the user has a small increase, but the usage rate has declined. In contrast, the network video user size is increased by 14.6%, to 325 million people, the use rate to 63.4%, to become Chinese netizens after instant communication, search, music, news, the fifth largest application.

The report states that the major video sites need to rely on the aggregation of more, better quality copyright content to obtain high flow, so that the network video industry copyright prices, operating costs soared, at the same time the low price of video advertising, other profit models can not be nurtured in a short time mature, and thus the overall network video industry in a loss This situation is still difficult to change.