Internet penetration of small and medium-sized enterprises just on the road

LinkedIn, a foreign internet company doing what is called PSNs, has had a hard time, with a staggering 1/4 to 1/5 of its market capitalisation, which is at $45 trillion, and has reached nearly 200 dollars. There is a benchmark in the former, there are quite a few similar domestic network of professional social networking enterprises, from the previous neighbor, to the recent streets, excellent. But oddly enough, although LinkedIn is a good day, none of China's imitators can be called "successful". If the neighbor was founded in 2004, a decade of struggle, is still in a difficult time to get through the stage. Many American concepts will be successful in transplanting to China, but why not PSNs?

In my opinion, China's enterprises are numerous, but the dependence on the Internet is actually not high. The one or two-line city is better, but three lines below, almost in the eyes of enterprises, is a QQ and email, slightly involved in a deeper, is the Internet as a completely media, for enterprises, advertising value may be very important. But beyond that, there is basically no involvement. PSNs to solve the business of recruiting talent, for Chinese companies, is indeed far away. Even if the PSNs is regarded as the traditional signboard website worry and so on, for the Chinese three-tier city enterprises, is still a leading thing.

Chinese netizens have reached 564 million today, although according to Cnnic's definition of netizens is a net in a week, but it is not too exaggerated to expect that the number of people surfing the internet every day will not be under the billion equivalent level. The penetration rate of the Internet for ordinary people has been considerable, but it has only just begun for the Chinese business community.

The application of network media

The first well-known object of Chinese Internet companies in the corporate world is Baidu. Early Baidu push bidding rankings, there are car sales companies through the advertisement, sold BMW. Today, Baidu has 600,000 advertisers, the annual advertising contribution of these customers about 40,000 yuan-this is not a big number, in line with the SME budget.

Baidu's advertising system is well satisfied with the marketing needs of small and medium-sized enterprises. First, it is mainly a kind of CPC valuation, click on the ad spending, and click, the general meaning that the user has a certain interest. Second, business owners in advertising spending can be wrong, buy this keyword today, and then according to click and transform the situation to judge: this keyword is not good enough, need not adjust-this is all the traditional media and network portal media can not do. It is not surprising that small and medium-sized enterprises, which have a tight budget and focus on actual results rather than brand image.

However, Baidu's advertising system still has two problems. The first problem is that businesses have to have a website, and the main business needs to be on this site. If this site is only used to do business façade publicity, Baidu's advertising system can not help its actual operation. The second problem is that more and more small and medium-sized enterprises use the system, the price of key words began to rise. The search of the advertising business is the buyer's bid (said by the buyer quote this keyword I am willing to pay how much money is clicked), this is a good business for search engines, but for advertisers, there is no bargaining advantage. The possibility exists that the keyword is driving up, the price reaches a certain point, it is not the medium and small-sized enterprise can reach.

For a long time, small and medium-sized enterprises, especially the localization service enterprises, the use of the Internet, probably also stay at this level: if possible, do 100-degree advertising. Some enterprises will use QQ group to maintain their own old customer groups, but also the exchange of regular customers, not much serious enterprise-class Internet applications.

The rise of electric dealers and the appearance of group buying

In Ali's efforts, Alipay is a tool that is popular among internet users. The nature of the letter of credit principle of the function, more effective solution to the remote transaction of similar concerns: the buyer to pay for fear that the seller does not ship goods, the seller is afraid the buyer does not pay money. When the problem of cash flow was properly settled, the electric trader began to rise.

A large number of Taobao sellers appear, so far, claiming that there are more than 68 million, most of which belong to the "peddlers" nature. Taobao is known as "free", trading without any commission, which is different from its rival ebay. For Chinese companies (in fact, users are the same), Free is kingly. Later on the cat is a commission, but the cat on the most of the sellers are larger enterprises, they regard this Commission as a marketing expense-to take advantage of the huge flow of Taobao cat, there must be some price.

Taobao led a lot of small micro-enterprises to sell goods. Although Taobao is the so-called Consumer-to-consumer mode (ie consumer to consumer), but in fact, the real meaning of Taobao consumers dispose of their idle goods very little. This is after Baidu, once again set off the Chinese small and medium-sized enterprises on the internet dependence on a wave of enthusiasm. Taobao even claims to help the country raise employment.

However, Taobao still has a certain flaw. Taobao is free to shop and trade, but if you want to make your product appear in a more prominent position (that is, it is easier for consumers to contact) it costs money. Taobao is in fact a relying on advertising as the main revenue model of the so-called electric business platform, home good, channel home, or search results are good, everywhere have advertising. The order of goods is either based on the size of the trade, the larger the more easily in front, or the merchant to pay advertising costs to their goods in front. This mechanism will tilt to large sellers, small and medium sellers can not afford such a cost, Taobao (including the cat) The Matthew effect appears.

The electronic commerce platform is closely connected with the goods transaction, but it is far away from the service nature's profession. Catering, for example, is almost unthinkable to spend on the internet, and most restaurants follow the usual practice of paying after spending ends. So the public comments, such as the Git site appears to help the catering industry to attract diners. But more localized services, such as beauty shops and cinemas, still have little to do with the Internet.

2010, the beginning of group buying, it helped the industry to move closer to the Internet. Group buying industry's most popular time has been unable to use the "Hundred Regiment War" to describe, but the use of "Million Regiment war." The bubble of group buying was once very serious, and some large group buying sites even opened offices to level five towns. This bubble objectively makes the localization service industry aware of the role of the Internet.

Group buying can theoretically allow localization services businesses to use a relatively low price to attract consumers, after a certain consumption experience to become repeat customers. On the other hand, can also make full use of idle resources. Most localization service companies have a common feature: the service cannot be stored (for example, after a movie, the fear of attendance is only 1%, the other 99% can not be sold again), how to let almost fixed costs to maximize the benefits, group buying looks like a way.

Group buying has also been involved in the sale of specific goods, which has been a bit like a discount dealer, able to help businesses deal with tail goods. However, the development of this vein is not good, most of the purchase site to deal with the nature of discount dealers will face closure, but to help localize businesses to improve the efficiency of business, is still developing well. In the past, localization services companies think it is easy to make the "world is flat" the Internet has nothing to do with their own, group buying has played a very good role in education: The Internet can also help them this target consumer is limited to a city of small and medium-sized enterprises.

Two micro intervention

Two micro, refers to Sina Weibo and Tencent micro-letter. The two are different to the function of the enterprise.

Weibo, as a social media, is biased to help enterprise marketing. Small and medium-sized enterprises to promote the budget is limited, micro-blog began early, many micro-blog marketing industry advocates "micro-bo Marketing free": Because theoretically can rely on the microblogging user's forwarding, the formation of chain-type communication, spread the level of both many and wide. This makes small and medium-sized enterprises is very encouraged.

For example, a main selling cake of the enterprise 21cake, using a crisis (the consumer ordered cake on the longevity word written on the word), through a sincere apology and introduced the cake, successfully borrowed the power to spread their own brand. There is also a localized service company operating hotpot in Zhengzhou, using the hunger and thirst marketing method (to promote its own store business is very good not to get a seat) finally really have to finish a week after the opening of a branch of the effect of 190% attendance.

Weibo started in 09 with a very rapid development, with an annual account number of millions. Marketers who have been involved in Weibo marketing in the early days with the help of microblogging field "demographic dividend", it does have a small cost effect of marketing, but with the development of micro-bo no longer singing all the way, micro-bo marketing too much, users have a sense of fatigue, micro-bo marketing effect is no longer as early as so marvelous. It is important that after the third party micro-blogging marketing forces intervene, this marketing tool is no longer free. Some big V is just a little bit of forwarding, fees are also at hundreds of thousand. The Super Big V is also in million.

At the beginning of the micro-credit, some micro-blogging marketers moved to the site, as Weibo marketing seemed to have been overused. They use the same way to operate micro-credit public accounts: such as daily jokes to attract subscribers, reach a certain number of levels after the use of advertising to help enterprises promote. Some enterprises also have their own number by the third party on behalf of the operation, the annual fee from the million start, Xing or hundreds of thousands of. But the micro-letter quickly realized how much marketing had hurt the tool and openly shouted "micro-trust is not a marketing tool".

In June, the official launch of the micro-letter, asked several of the presentations on how to use the micro-letter. Although the presence of the enterprises are mostly large companies (such as Southern Airlines), but the focus is on the use of micro-letter and consumer interaction, to provide better service, is biased customer service path, rather than marketing. My personal view is that it is possible to have a large number of users of the tool platform, the first time to become the enterprise's free CRM system, presumably from the beginning of micro-letter.

The approach of enterprise to Internet dependence degree

In just 10 years, most of the companies in China that have started using the Internet for business have seen the Internet as a tool for marketing (essentially, the internet as a kind of media), from search engines to electricity Corps to Twitter, which basically belongs to the marketing department using the Internet. Many other parts of a business, and the Internet, have not had a substantial relationship, especially for SMEs.

Micro-letters allow this use to start turning: turning from marketing bias to customer service bias. Although people have been confusing marketing and customer service (think customer service is a kind of marketing), but in fact, within the enterprise, and the purpose is completely different. Marketing more in the sense of acquiring new customers, and customer service in the old customers after the consumer experience, and may be in a good experience to repeat consumption. Marketing, the relationship between business and potential customers is weak, but customer service, it is possible to rise to strong relationship (loyal customers). Generally speaking, customer service is the business of the enterprise, this area, the past and the Internet has a very small relationship, there is no strong tools to help enterprises. The emergence of micro-letters, so that enterprises to use the Internet, but also a choice.

But that is far from enough. Demand research, production research and development, human resources and many other links, the Chinese enterprise's network dependence is not high enough, this is not only in small and medium-sized enterprises, even some large enterprises are the same (but the financial industry, has already begun large-scale computerization).

The current era, has entered the "Big Data", "3D Printing" (also known as rapid prototyping or material manufacturing), "cloud computing", "Internet of Things" and so on new concepts. Some of the concepts are very small in the application of some local enterprises, such as Guangdong has sporadic freight forwarding companies use the Internet to deploy containers to make it more efficient operation, but more often, SMEs are still waiting to see. This is related to the situation, China pay more attention to the line of face-to-face communication, and also related to the size of enterprises, small and medium-sized enterprises will rarely go to taste the first, leading into a new concept.

Dependence degree problem, it is impossible to enthusiasm, only gradual. We have to admit that China is far behind the United States in this respect and must admit that it is impossible to develop and catch up with the norm. But in turn, increasing the dependence on the Internet is a great business opportunity. This is like more than 10 years ago, Internet advertising is not trusted by the vast majority of enterprises to adopt, this more than 10 years, it has spawned a number of such as search engines, web portals such as many 1 billion dollars above the market capitalisation of the Giants. In this sense, the TMT industry, China has only just begun to start.