The dilemma of mobile Internet development is urgent to break the bottleneck of development

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In the second quarter of 2012, China Mobile's internet market reached 12.65 billion yuan, with a growth rate of more than 100% and more than 300 million mobile internet users, according to the statistics released by Eric Consulting. However, experts and industry insiders said that the mobile internet industry is facing an uncertain profit model and industry environment immature dual dilemma, urgent need to break the bottleneck of development.

Mobile Internet "very hot" market size of tens of billions of dollars

Shenzhen Box payments co-founder Woosung said 2010 is widely regarded as the year of China Mobile Internet, to 2011, the mention of mobile Internet, people's ears filled with "blue sea", "explosive growth", "Nuggets point" "investment boom" and the like, mobile Internet has become the hottest topic, and bring countless followers.

The red-hot market has attracted millions of entrepreneurs, hoping to get a slice of the "gold-strewn" mobile internet sector. China Mobile's Internet market reached 12.65 billion yuan in the second quarter of 2012, an increase of 108.9% per cent year-on-year, according to Eric's consulting statistics.

"The mighty million armies are all in business, this is the market trend, now everybody ventures if do not do mobile internet will appear outdated." "Woosung said. The 26-Year-old young entrepreneur and his team developed a mobile payment software "box payment" in 2011 and achieved good results.

Woosung analysis that because of the advent of the cloud platform, as well as the maturity of the open source community, the technical barriers to mobile Internet entrepreneurship to a very low, while the cost of start-up to a record low, "The PC Internet age startup hardware, software requirements are very high, and now only a few people write app (mobile app), To get online to sell, the cost of starting from the previous tens of millions of dollars, 100,000 yuan or even less. ”

At the same time, as smartphones, tablets and other terminals to accelerate the popularity of mobile internet users to grow rapidly. As of the second quarter of 2012, Chinese internet users were 538 million and mobile internet users were 388 million, according to the survey.

Vice-Mayor, chief executive of Shenzhen Creation and entertainment network, said that with the increasing popularity of mobile terminals, more and more app users would be produced, which would bring enormous opportunities to the mobile Internet.

Profit model is not clear local vicious competition intensified

In stark contrast to the heat of the mobile Internet, however, the industry remains hard to make money. The results show that by the end of November 2011, China's mobile phone application developers total about 1 million people. Of the 1 million of mobile app developers, the profit is only 13.7%, the losses accounted for 64.5%, the flat 21.8%.

Shenzhen Box Payment co-founder Woosung that, because there is no good profit model, entrepreneurs in the short term is difficult to profit, must rely on the wind to invest in continuous blood transfusion, quickly occupy the market, with a large number of users and traffic. Not everyone can get the favor of capital, a lot of cash-strapped grassroots entrepreneurs are suffering, many people reluctantly left the battlefield.

Shenzhen 80 Network Technology Co., Ltd. Chief technology officer Wu Shi Wei that most of the domestic mobile Internet practitioners do not analyze the market from the domestic environment, but follow the development trend of foreign countries, copying foreign business model, will inevitably appear acclimatized.

A new media professional lecturer at the School of Journalism and Communication at the Chinese University of Hong Kong says that the current profit models for mobile internet include paid downloads, advertising, gaming and E-commerce, but these models do not seem to work very well at the moment in mainland China. On the one hand, the domestic pay awareness is still in its infancy, and the way to earn revenue through paid downloads is clearly unworkable. Mobile data monitoring company App Annie announced last month that China has the second largest app download in the IOS market, with an average of just 0.03 dollars per app, almost one-tenth of the U.S. user.

On the other hand, because the mobile terminal screen is relatively small, time is fragmented, advertising value is not as large as the PC Internet, mobile internet to get advertisers to recognize the time will take. The question of the charging of lightweight games on mobile phones is still not well addressed at home.

Experts believe that the mature profit model is based on the mature market environment, but the current China Mobile Internet industry market environment is not mature. Vice-Mayor, chief executive of Shenzhen Creation and entertainment network, said that a lot of money into the mobile internet industry, driven by interest, some of the lack of visionary application developers began to go heretical: piracy, brush volume, spell pornography, resulting in the industry environment chaos.

Guangzhou micro-wo company chief executive Chankomin said, who is the hottest, who will be cottage, which in many industries is the law, app homogenization in the current mobile internet industry is very common phenomenon. Developers rush into a hot area, local vicious competition intensified, making profit almost impossible.

At the same time, "brush" behavior in this industry is also quite common, and some developers even the yellow content quickly packaged into a mobile phone application and add ads. Shenzhen Box Payment co-founder Woosung analysis, developers need products have a good ranking to attract investment, so they through the "brush download" to make an application quickly superior. Chankomin that the list is unfair to other app developers and not enough to support a product that has a longer lifespan, and is a very short-sighted behavior.

Do not blindly trendy difference competition to seek profit

At present, the domestic mobile Internet investment and financing is from 2011 madness to calm. Experts and the industry suggested that the mobile Internet industry to increase product innovation, fine operation and promotion, in the differentiated competition to seek sustainable profit model.

Woosung, co-founder of Shenzhen Box payment, says mobile internet entrepreneurs need to innovate when they choose to start a business, not just trendy, but avoid giants. Industry giants have the innate advantage of small mobile internet companies in terms of capital, technology, operational capabilities and user size.

Woosung said that product innovation is the most important, in the context of homogenization of competition, mobile Internet entrepreneurs need to find something different to increase user viscosity. If you want to continue to persist in this field, you should focus on innovative products, not only to hit the money brush rankings, advertising.

Guangzhou micro-wo company chief executive Chankomin that, from an investment perspective, the current competitive environment, to get the investment, the product must be creative, the model, the user will necessarily have characteristics.

Industry insiders believe that "three products, seven-point operation", entrepreneurs should be as much as possible to understand user needs and feedback, and constantly iterative, continuous improvement. Meticulous operation is a long-term process, more patient than opponents. At the same time need to pay attention to promotion, the promotion of the Internet basically rely on Baidu, but mobile internet channels dispersed, we have to use the most effective channels to promote.

For a number of business owners "We are thinking about how to do the product well, has not yet begun to think about the profit model, says Bernard, a new media professional lecturer at the Chinese University of Hong Kong, the school of thought, which has a fatal flaw, leaving aside countless" dead "products in the difficult user build-up phase, Even if there are many users of the product, if there is no reasonable profit model, the same will fail.

Bernard cautioned that the current mobile internet situation is similar to the PC Internet era 10 years ago, and the industry reshuffle will be inevitable. 2000 PC Internet has a crazy bubble, companies can not make money, but it is easy to get investment and listing. The main reason for the bubble burst was the failure to find a suitable profit model. If an entrepreneur has only a blueprint for how to make money after five years, but does not consider how these two years survive, failure is almost inevitable. Therefore, the entrepreneur must consider the profit model as early as possible, earns the early survival fund.