China internet economy could be a hobbler, according to latest BCG report

According to the latest BCG report, China internet economy should be dissected into the dichotomy:

  • Upstream and Downstream

I)In the downstream consumer side, covering clothing, food, housing, mobility etc, almost every element of everyday life in China is highly digitalized.

Take clothing as an example: 

Local online apparel brand HSTYLE can launch new products 1.5 times more than a global leading brand such as Zara.

For Food: internet giants are actively digitalizing over 600K restaurants across 200 cities in 2018

II)In the upstream, nevertheless, China’s industrial Internet still lags behind developed markets, especially in four core aspects:

  • Smart connectivity
  • Data integration
  • Human-machine collaboration
  • smart decision making&smart data analytics

Overall China internet economy walks like a hobbler:

Though in the past Chinese companies have a tendency to focus more on the downstream consumer side, today the tide is changing. Internet giants are now sitting in the driver seat moving into upstream industrial internet, especially in offline retail which is much more fragmented than the US market. 

 

By: Cecilia wu