Which industries in China have good development prospects? What are the corresponding majors?

The top ten latest profitable business models to win in China

1. B2B e-commerce model

Representative companies: Alibaba, Global Sources, Netsun Technology

Areas of influence: online transactions

Keywords of influence: online trade, credit analysis, business platform

Model overview: Alibaba is known as the world’s largest online trade market , not only promotes the establishment of China's commercial credit, but also brings more possibilities to the vast number of small and medium-sized enterprises in the fierce international competition. Alibaba gathers a large amount of market supply and demand information and provides members with market services through value-added services. Particularly worth mentioning is Chengxintong, which is of great significance to the establishment of integrity in the e-commerce market because it can help users understand the credit status of customers.

Demonstration effect: Netsun Technology recently became the first Internet stock in China and successfully landed on the domestic A-share market, proving the capital market’s confidence in the B2B e-commerce model. The core business of Wangsheng Technology is the multiple industry vertical B2B websites it operates, such as China Chemical Network, Global Chemical Network, China Textile Network, Pharmaceutical Network, China Clothing Network, etc.

Model problems: China’s overall e-commerce environment has always troubled the development of B2B e-commerce models, and credit management issues are also prominent.

2. New model of entertainment economy

Representative companies: Hunan Satellite TV's "Super Girl", Shanghai Oriental TV's "Come on, Good Man", Shanghai TV's "My Show", Beijing TV station "Dream of Red Mansions"

Field of influence: Entertainment culture

Keywords of influence: Entertainment marketing, integrated marketing, event marketing

Model overview: Super Girl builds a unique value chain and brand connotation. Since 2004, Super Girl has attracted girls who are good at singing and dancing and eager to innovate through national auditions to participate. It has broken through the original business model of TV programs that rely solely on ratings and advertising to make profits, and has embedded online voting and text messages. , audio station telephone voting and other profit points, and integrated a large number of media resources. This kind of entertainment program that mobilizes consumers' emotions and participation reached an unprecedented climax in 2005. Sponsors, telecommunications manufacturers and organizations became the biggest winners. After the show ended, the agency's agency began to package and operate the Super Girl series and carry out brand extension marketing.

Demonstration effect: Audition programs are popping up all over China, and various radio stations and film and television production organizations have "cloned" them. The more successful ones include Shanghai Oriental Station's "Come on Good Man" and Beijing TV Station's "Dream of Red Mansions".

Problems with the model: Like all TV programs, audition programs can easily enter a bottleneck period. Super Girl in 2006 has lost the glory it had in 2005. The shift in consumer preferences and the ever-changing market are the “Achilles heel” of this type of business model. At the same time, it is also the law of this model to stand out. Although it is easy to be copied, it is difficult for many copycats to surpass the miracle created by the original creator.

3. New direct selling model

Representative companies: Amway, Avon, Perfect, Tiens, Mary Kay

Areas of influence: cosmetics, daily consumer goods, health and nutrition products

Influencing keywords: multi-level direct selling

Model overview: The multi-level human direct sales network is the foundation of Amway’s business model. Every node of this huge sales network-Amway’s Every direct seller has the dual identities of dealer and consumer. Amway, which entered mainland China in 1992, is not a conventional enterprise that targets end consumers and attracts customers with the consumption value of its products. Instead, it targets small investment entities-individuals and families, recruiting them as dealers and joining the Amway direct sales force. China's "Direct Selling Law" has been promulgated. Although Amway, which is in a sensitive area, has obtained a license from the Chinese government, it is also adjusting its new business model. The original dealers can choose between the two channels of "sales representatives" and "service outlets". identity, and Amway’s original dealer team will gradually fade out. In the process of gradually adapting to the Chinese environment and changing its business methods, Amway has held on to the Chinese market.

Demonstration effect: The direct sales model is adopted by many Chinese companies. The most famous one is Tiens Group.

Problems with the model: Policy constraints and moral hazard are the main bottlenecks for the development of direct selling companies in China.

Potential competitors: Tiens’ numerous C2C e-commerce websites

4. Gome model

Representative companies: Gome, Pengrun, Suning, Dazhong

Areas of influence: Home appliance retail industry

Keywords of influence: Capital operation, professional chains win at low prices

Model overview: Home appliances are one of the commodities with good growth potential in China , the low-price chain sales model is deeply favored by consumers.

Relying on the high turnover rate of funds, Gome has expanded at an alarming rate. So far, Gome Electric Appliances has more than 560 directly operated stores in more than 160 cities in mainland China, and the total number of stores in Hong Kong and Macau has reached 12. Gome's expansion rate is four times that of Best Buy, the world-renowned home appliance chain giant, and its profits mainly come from supplier rebates and channel fees.

Demonstration effect: Behind Gome, Suning, Yongle and large and medium-sized companies are also known for their professional chains and low prices.

As a listed company in Hong Kong, Gome Electrical Appliances is good at leveraging the power of the capital market. In July 2006, it acquired Yongle Electrical Appliances, the third largest appliance chain seller in China, becoming a veritable giant.

Problems with the model: Gome, which has expanded rapidly, is facing a decline in profitability. Like its competitors, in addition to low prices, it also needs more refined management. And relying on suppliers' accounts receivable to maintain high-speed operation may not be a long-term solution.

5. C2C e-commerce model

Representative companies: Taobao, Ebay, Feige Chuanshu, Tencent Paipai

Areas of influence: Online personal transactions , retail industry

Influence keywords: Online payment, secure transaction, free model, entertainment marketing

Model overview: Taobao has put its largest competitor into a passive position with its free model for several consecutive years. status and attracted many online trading enthusiasts to open stores on Taobao. Taobao has also created the domestic advanced online payment platform "Alipay". Its essence is a value-added service that uses Alipay as a credit intermediary. Before the buyer confirms receipt of the goods, Alipay temporarily holds the payment for the buyer and seller. Taobao quickly occupied the C2C e-commerce market in a short period of time, and Taobao's multi-tentacles and integrated entertainment marketing business model are indispensable. Feige Chuanshu is China's largest classified portal, covering more than 3,000 cities across the country. Feige Chuanshu perfectly combines "classified information release" with "life accurate search" to achieve a deeper level of free release and in-depth accuracy of classified information. The combination of search and interaction is a market with huge potential and prospects, becoming the golden point of the Internet era.

Demonstration effect: The rapid growth of Taobao has enabled peers to discover the huge potential of China's C2C market. Online bookstores Dangdang.com, which was originally known for its B2C model, and Joyo.com, which was acquired by Amazon, have also opened online stores. Store-within-a-store, in order to attract more consumers and increase user stickiness. In March 2006, Tencent also launched its C2C e-commerce website Tencent Paipai to compete with Taobao for users.

Problems with the model: Ebay was defeated by Taobao's free strategy, which shows that China's consumer environment is not yet mature. The method of exchanging profits for market space was effective in the early stages of C2C launch, but how to increase customer stickiness and find profit methods suitable for C2C are common problems faced by websites such as Taobao. In addition, the security of online payment is also a big challenge.

6. Focus model

Representative company: Focus Media (FocusMedia) IZO Corporate TV station

Areas of influence: outdoor advertising, brand communication and business video

Influence keywords: New media, new blue ocean

Focus model: Its commercial value comes from letting white-collar workers in office buildings who are bored waiting for the elevator watch LCD screen advertisements at the elevator entrance, providing advertisers with new ways to accurately deliver advertisements. media. In July 2005, Focus, the pioneer in outdoor LCD TV advertising, listed on Nasdaq to raise US$172 million. Afterwards, it acquired the apartment elevator advertiser Frame Media and the industry's second-ranked Juzhong to create the "Focus Outdoor Life Circle Media Group" business model: When a person goes to work in the morning, he will see elevator posters when entering the elevator, watch LED color screen media advertisements on the way to the city center business district, see building advertisements in office buildings, and see Focus hypermarket simulcasts in supermarkets and hypermarkets. . IZO corporate TV station effectively combines the Internet, television, and video call technology. It can be said to be a high-quality real-time interactive multimedia integration platform created by the fusion of the most advanced technical means. It is the latest media advertising method built on corporate websites. It can play promotional videos and other content online through the video window on corporate websites, allowing companies to easily enjoy interaction with the world anytime, anywhere through sound, images and text. Netizens find corporate websites through search engines and watch corporate TV to learn about corporate culture, product introductions and other information. The audience is completely self-selected without any compulsion. Such active seeking rather than passive acceptance makes the audience more likely to generate interest. Interest and desire to purchase. Whether it is for government websites, city portals or tens of millions of corporate websites, IZO corporate TV is an excellent advertising method. IZO Enterprise TV Station is considered by the industry to be the only new online media that is expected to surpass Focus.

Demonstration effect: The emergence of Focus and IZO has spawned a series of followers: Health Media covering the pharmacy population, Light Source Media covering the railway train system, and Bright Corner Media covering toilets; even Some people suggest that Haier should also transform itself into an advertiser—advertisements pop up when the TV is turned on.

Potential competitors: mobile TV networks, mobile TV

7. Virtual business model

Representative companies: Nike, Metersbonwe

Influence areas: clothing industry, retail industry

Influence keywords: virtual operation outsourcing

Model overview: American Nike is a model of virtual operation in the clothing industry. Nike mainly focuses on design, and contracts specific production to manufacturers in countries and regions with low labor costs to reduce production costs. This virtual manufacturing model has allowed Nike to rapidly expand its market globally. In recent years, Nike has tried to transform its existing product-driven business model into a customer-centric one that drives profit growth through category management of global core business units. organization.

Demonstration effect: Nike's virtual business model has arrived in China and has been sought after by Wenzhou businessmen. As early as 10 years ago, Metersbonwe did not produce a single garment. All products were manufactured by more than 200 OEM clothing factories across the country, and sales were completed through more than 1,200 franchise stores scattered across the country. At present, Metersbonwe has become the leading enterprise of private casual clothing in China.

Problems with the model: Due to the limited production capacity of OEM manufacturers across China, the supplier team is too large and dispersed, which has caused the operating and management costs of brand enterprises to rise, and also poses challenges to the management capabilities of private enterprises.

8. Budget hotel chain model

Representative companies: Home Inns, Jinjiang Inn, Motel, 7 Days, City Inn and other budget hotels

Influence Field: Hotels, catering

Influence keywords: low-priced hotel chains

Homeinns model: Homeinns may not be the “first player” in China’s economy hotels, but it has rapidly expanded the chain The business model is applied to the revolutionaries of budget hotels. Due to its rapid franchising, copying and expansion, Home Inns promptly took advantage of its location and was the first to win the favor of Wall Street among many competitors in the same industry. It successfully landed on Nasdaq on October 26, 2006. In China's first-tier business cities, Home Inn's occupancy rate is close to 100%, and its budget rooms priced between 150 yuan and 300 yuan are extremely attractive to small and medium-sized business people, leisure and self-guided tourists.

Demonstration effect: Homeinns’ business model triggered an upsurge of copying, and the concept of economical hotel chains was very popular in China. Only half a month after Homeinns was listed, the Seven Days Holiday Hotel chain in Guangdong obtained the Warburg Pincus Investment Fund invested tens of millions of dollars. At present, in the field of budget hotel chains, more segmented markets have emerged, such as Motel 268 and Hanting, which are targeting the slightly higher-end market than Home Inn.

The problem with the model: There are huge differences between different cities in China. How to ensure success in each city with relatively uniform service quality while maintaining low-cost operations? However, many franchise stores are poorly managed. It will also affect the brand image. Budget hotel chains need to maintain higher growth rates and profits if they want to please Wall Street.

Potential competitors: Ibis and Super 8 from overseas, and Motel from China are all strong competitors for Home Inns.

9. Online game model

Representative companies: Shanda Company, NetEase, The9th City

Areas of influence: Internet, online games

Influence keywords: free model interactive entertainment

Model overview: Shanda alone created the business model of online games. In December 2005, Shanda proactively announced a change in its business model, changing its time-based point card charging model to a charging model based on value-added props services. Shanda hopes to discover and meet user needs in an efficient operating model, extend the life of games, and provide more sustainable cash flow for the company's interactive entertainment strategy. After a period of downturn, thanks to the implementation of the free-to-play model, Shanda's online games have continuously strengthened their core competitiveness and achieved rapid recovery and growth in revenue.

Demonstration effect: Before Shanda Games transitioned to free-to-play, free online games were not popular in China, but now more and more online game operators are abandoning the single charging model of deducting points based on time. Jiuyou.com is also an online game company that has abandoned the pure time-based charging model and instead provides users with one-stop services.

The problem with the model: Whether it is paid or free, only by relying on good game products can we gain a long-term foothold in the market.

10. Internet search model

Representative companies: Baidu, Google, Yahoo and many vertical search websites

Field of influence: Internet search

Influencing keywords: PPC online advertising search marketing

Model overview: Search engines have completely changed people’s lifestyles, among which PPC is the main source of revenue for search.

Baidu's revenue relies heavily on PPC, which is essentially similar to advertising, that is, customers promote their own web pages by purchasing keyword search rankings and pay based on clicks. Since both the left and right sides of the web page contain PPC results, it is difficult for searchers to clearly identify which search results are paid. Google's PPC business model is different. The left side of the search results display is the natural search ranking, and the right side is the PPC search results, which better takes care of the user experience.

Demonstration effect: Following Google and Baidu, bidding ranking has become the profit model of most search engines.