Internet Industry

Published:2013-06-04    Source:HICG

Due to its magnificent number of internet users, the internet industry in China has been in a massive development over the last decades, and without any signs of slowing in the next few years, reported by Shanghai Huaran Investment Consulting Group

Today’s internet industry is playing an essential role as basic environment in the future economic development in China; therefore there are several trends that are well expected in China’s internet industry in 2013.

Mobile internet users are soaring 

In 2012, Microsoft and Apple companies almost updated their products in an all-round way; Facebook, Yahoo, Microsoft and Google began vying for mobile Internet. The mobile phones exceeded the desktop computers for the first time to become the most-used Internet terminal in China. Represented by major internet corporations such as Baidu, Qihoo 360, Shanda, Tencent, Sina and NetEase, the Internet companies are competing to develop mobile terminal, smart terminal, open platforms of cloud computing, browser, mobile applications, mobile maps and two-dimensional code, involving both hardware and software.

Broadband development 

The averages speed of Internet connection in China was 1.4 Mbps in 2011, which is lower than the global average 2.7 Mbps. In 2012, the Ministry of Industry and Information Technology of China focused on the popularization and acceleration of broadband and discussed about the strategy of broadband China with the Development and Reform Commission. At the same time, the 4G network is being deployed across China.

The era of the big data 

With the wide application of cloud computing, the mobile Internet and Internet of things have a rapid development. People have never felt so strongly about the rise of social networking, the explosive growth of smart networking equipment and the era of big data before, like in 2012. Baidu, Tencent, Taobao and China Mobile have established their own data centre projects, measuring the achievements with capacity and data processing technology. According to estimation of domestic agencies, the potential market value of China's big data is expected to reach 2 trillion yuan in the future. 

Social media is booming

In 2012, over 400 million Chinese people use social network and the number of micro-blog websites for government affairs has exceeded 60,000. Micro-blog has become the most important social media in China. It is worth noting that over 80 percent of micro-blog users log in the website by mobile terminal in 2012. Compared with wired Internet, intelligent terminal provides more channels for mobile social network. For example, the number of users of WeChat, which was released in 2011, has exceeded 100 million in March 2012 and then doubled after less than six months.

The majority of deals made in the Chinese internet industry are mergers and acquisitions, which allow companies to integrate resources and reduce competition, while phasing out independent companies which are unable to keep up. Shanghai Huaran Investment Consulting Group consistently pays close attention to the internet Industry