Li Zhi: Why do I choose the area of "local life consumption"?

The internet has been developing in China for 12 years since 95. Mail, instant messaging, news, search, E-commerce, games and so on have been widely used, but we found that the Internet to find the surrounding restaurants, rent, second-hand housing, nightclubs, laundry, route guidance and other information is not easy, and these network applications in the United States has long been the second largest application after e-mail. In July 06 alone, 63% of the U.S. netizens used local search services, up to 109 million!

Such a large market demand, why local search in the country has only just begun? In my opinion, this industry in China's development and achievements will eventually surpass the United States.

first, let's take a look at the opportunities in the Chinese market. I think the industry will eventually have a bigger development than the US.

1, the huge demand and user group coverage

There are more than 1.3 billion people in China, and the Internet is close to 150 million people. As of the end of 2005, the proportion of urban population has reached 42.99%, and is still growing at a rapid rate of 0.63% annually, the urban population is expected to reach 1 billion people in 2025! And the United States in total only more than 200 million people, 170 million netizens, I remember Ma Yun previously privately told us a word, he said that after more than 200 million Chinese netizens, Americans no longer can not live with China.

2, local life consumption accounted for an important proportion

With so many urban populations, they eat, entertain, rent and buy houses every day, and consumption, which is related to local life, will account for the majority of personal consumption. For Chinese people, the annual cost of renting, buying a house, eating, and entertaining will occupy the proportion of all expenses? If carefully calculated, this will be a huge number, but 2006 catering industry consumption volume has exceeded the 1 trillion mark. Therefore, the consumption of life is a huge and attractive market.

3, the Internet and the popularity of mobile phones

China's internet users are expected to break 200 million by 2010, and the number of mobile-phone subscribers in the mainland has reached 461 million in 2006, up 68 million from 2005, according to domestic mobile penetration. The rapid development of the Internet and mobile phones and the launch of the 3G business will greatly boost local search and promote its explosive development.

4. Improve people's living standard and construct harmonious social environment

Just imagine, if you could use the phone and the internet, so that people can easily realize the route guidelines, restaurant inquiries, housing rental and other needs, the people will greatly save the choice of time, and greatly increased the transparency of the information, in improving the consumption experience at the same time, the people's living standards are imperceptibly gradually to be promoted. People feel the consumption more and more convenient and comfortable, but also for the construction of a harmonious society has made no small contribution.

Based on the business coverage of the customer base and the universality, I think the industry's service providers will certainly become China's most well-known one of the top ten well-known brands.

of course, there are still some difficulties we need to overcome, such as:

1, the collection of restaurants, bars and other information costs are too high, and the update rate is too fast, low information protection.

2, China's geographical information and electronic map and navigation development has just started.

3, China's vast territory, a large number of cities, the development of this business is a small investment.

4, many people do not realize that the information can be obtained from the Internet, the need for a large number of costs to nurture the market.

5. ...

Every difficulty is very big. Although aware of so many difficulties and problems, but I have made up my mind to take root in this field, determined to let Word-of-mouth network to become a good guide to the urban life of Chinese people. Since its inception in 2004, we have not shaken the purpose of serving local people, because I have been very bullish on the market for a few years ago. Last year, Alibaba Strategic Investment Word-of-mouth Network is also from the industry's long-term development considerations, because living consumption itself is also an important part of E-commerce.

Word-of-mouth Network was founded because of an unpleasant experience of my consumption, so I hope that the Word-of-mouth network can be developed into such a brand, and to improve the lives of Chinese people to contribute greater strength. When I was far away in Henan rural families in the use of Word-of-mouth network, I think already to a certain scale, I look forward to that day early arrival!

The social significance of doing this is much greater than that of others, including personal interests.