What is the development trend and prospect of mobile internet industry?

What are the trends and prospects of the mobile Internet industry? How to innovate the business model and grasp the business opportunity in the mobile internet age? It is very difficult to answer these questions comprehensively in the process of technological and commercial change that is taking place. We hope that we can promote the industry colleagues in this new field of practice and thinking.

A new era of mobile internet

For consumers, the most obvious indication of mobile Internet is handheld terminals. In the UK it is called mobile phone (mobile phone); In the United States, it's called Cell phone, and in China it's called a cell phone--now it's a name--the computer on hand.

The mobile Internet, in a narrow sense, refers to users using mobile phones to browse traditional Internet sites and specialized mobile websites through mobile networks; In a broad sense, through mobile terminals such as smartphones, laptops, tablets and PDAs, Internet access is based on browsers, Or use applications that need to be connected to the Internet to get multimedia content, custom information, and data services. With the maturity of 3G mobile communication Network, the popularization of intelligent terminals and the increasing of content and application based on mobile internet, mobile internet has been showing an explosive growth situation in recent years.

In addition to smartphones, mobile terminals such as tablet computers have also developed rapidly in the last two or three years, while mobile terminals have also seen a complete convergence of mobile phones and computer functions-mobile phones have become handheld computers and computers have become mobile terminals. On the other hand, with the development of more intelligent and miniaturized sensing technology, intelligent objects embedded in automatic control chips are becoming reality, and more and more intelligent objects will be connected to mobile Internet. By 2025, the world's Internet will have access to 1 trillion devices, most of which are wireless devices, which provide unlimited space for mobile animal networking, according to a study by David Clark, a professor at MIT.

China's mobile communications industry has more than 1.1 billion users. It is predicted that by 2013, mobile internet users will be more than computer users. If other mobile terminals are counted outside the mobile phone, mobile internet users are expected to break 600 million by 2012, surpassing the number of desktop Internet users.

The development of mobile Internet has benefited from the mature of high-speed mobile communication network and intelligent terminal, and it has brought huge application. China's internet industry has been around the core areas of communication, trade, search and so on, the formation of Tencent, Alibaba and Baidu three major platforms, led the Chinese Internet ecology, and the portal Sina, by virtue of Weibo, from the content portal into the user platform. China Mobile Internet personal market services to music, games, shopping and reading-oriented, has begun to take shape, is expected to usher in a burst of growth in the last two years. The current business model of mobile Internet has four main types:

O2O mode: O2O (online to Offline) is online ordering, offline consumption mode, the most popular example is group buying. Its core is very simple, is to bring online consumers to the reality of the store to pay offline goods, services, and then to the line to enjoy service.

LBS mode: lbs (Location Based service) location-based services, is widely used in mobile positioning near the discount merchant, check-in (Check in) points, etc., it is through the mobile Communication operators wireless communication network or external positioning way to obtain mobile end user location information , with the support of GIS platform, a value-added service mode is provided for users.

Mobile payment mode: As Alipay has achieved great success on the internet, mobile payments will also be hugely successful in mobile internet. When all consumption occurs on the mobile device, how to pay quickly and safely, will become the key to determine the consumption desire and influence the consumption experience.

Mobile Entertainment mode: Mobile Entertainment is more than just mobile games. Mobile Entertainment takes advantage of the user's "fragmented Time", which is a few "minutes" of something we can do every day. Well-designed mobile entertainment helps users spend time with these "fun" "little" apps in the fragmented time period.

For all types of mobile platform application developers, the revenue model is the core of the current problem. Developers based on Apple iOS can get some revenue from paid apps. Application developers based on the Android platform have yet to find a sustainable revenue model, relying solely on the single revenue model of application advertising or hard to maintain. If application platform developers maintain a long-term income-free or low-income situation, China Mobile Internet application market will face bricks situation. Still, mobile advertising has become the only source of revenue for China Mobile's internet application market. 2010 China Mobile phone advertising market size reached 1.74 billion yuan, is expected to 2012 market size will reach 5.52 billion yuan, growth rate reached 83.4%.

New business models and opportunities

The mobile internet is creating new business models. We generalize the business development model of mobile Internet into a two-mode model including "User mode" and "Profit Model". In this "two-mode model", one side is the user mode, including the user size, user experience, user stickiness three elements, the other side is the profit model, including the forward charging mode, the back charging mode, the derivative charging mode.

In the traditional business model before the advent of the Internet, "user mode" is often not considered. Traditional business more from the "profit model" began to consider, the so-called no profit not early, it must be profitable, think clearly the profit model will do this business. But in the Internet business, enterprises must first focus on the user model, first consider how to develop customers, how to obtain customers in some way to obtain a very good user experience, and then form a certain scale of customer platform, wait until the formation of a certain user size and user loyalty (or viscous), Consider how to develop these user resources to make money.

This "two-mode model" of mobile internet gives us an important revelation is that in the mobile Internet era, we can consider the user/customer development and profit model, but should be clearly divided and consider the timing of the development sequence, which is useful for us to develop mobile internet business. The development of mobile internet business, we must first establish a "user model", through the gathering of popularity, sticky customers, forming a huge user space, and then establish a "profit model", that is, in this already formed user space to find the right business value, to achieve our business objectives.

Mobile Internet is a virtual space, is a social network space composed of many individuals, according to consumers in this social network space in the two categories of commercial consumption behavior, we can the social network of this virtual space into two subspaces: digital consumption space and physical life mapping space.

First look at the first kind of subspace: digital consumption space. In this space, the product is a pure digital consumer goods, listening to music, reading can be digitized consumption. All of these information products production and dissemination can be achieved online, no longer need to build any physical carrier.

The second kind of subspace: Entity life mapping space. We drive and influence our behavior in the physical world by mapping information to this virtual space. For example, e-commerce, online shopping, are through the information on the Internet to drive a consumer behavior.

When we look for mobile internet business opportunities, we should be aware of what the mobile Internet has brought to us. In essence, the mobile Internet brings us a virtual space in which we do our best to truly and completely map our physical world.

Our view is that in the entire internet, mobile internet ecology, there is no need to rush to chase the App Store. It should be seen that Apple's App store is just one part of the partially enclosed ecology of Apple itself. But is this part the most important part to emulate? In an open mobile Internet ecosystem, the most important thing is to form an online community. In this online community, users can map the personal social relations, social activities, behaviors, preferences and so on to create a new digital life, thus bringing great innovation opportunities for value-added services.

In the personal mobile Internet ecosystem, its value chain is mainly four parts: content production, content aggregation, content sending, content receiving. The Content Production section includes music, film, News, sports, television programs, network video and other forms of content, its provider is mainly a variety of television programs, film and video and music and other producers and distributors; Content aggregation includes content management, content layout, content transcoding, content rendering, standard transformation, etc. Its typical participants are you YouTube, Youku, Tudou, Facebook, Sina Weibo and other Internet enterprises; The content-sending part is to distribute the aggregated digitized content to the mobile terminal network, including the Wired/iptv/satellite, the next Generation wireless network (4G,LTE), the radio, the plane and so on, This includes China Telecom, Oriental Cable, comcost and at&t operators. The final part of the receiver is a variety of mobile terminals, including smartphones, tablets, PDAs, and other typical participants, including Apple, Nokia, Sony Ericsson and other terminal manufacturers. It should be explained that some enterprises only participate in the value chain of one of the links, and some enterprises are involved in a number of links in the value chain. Sony, for example, is involved in both content production and content reception.

What do we use to generalize in the mobile internet age? It was once said that the content of the King's era, now some people say is the application of the King's era. We believe that the mobile Internet should be the era of user-King. What the mobile Internet brings is that it gives every individual a lot more power; all the information means gives us a new kind of ability that allows people to do more things. Mobile Internet will be a user-King era, and developers as the provider of applications, determines whether operators/Internet companies want to build the platform to attract more consumers and generate revenue.