Economy

Sharing economic system a rising star regardless of COVID woes

A rider parks a shared bicycle at a parking zone earmarked for shared bikes in Nanjing, Jiangsu province, in October. [Photo by Wang Qiming/For China Daily]

The expansion fee of China’s sharing economic system sector is predicted to be between 10 and 15 p.c this yr, and preserve a mean annual development fee of over 10 p.c within the coming 5 years, due to an anticipated sturdy restoration within the macroeconomy, a current report mentioned.

The State Info Middle mentioned that in 2020, amid challenges introduced by COVID-19, new enterprise modes that includes the sharing economic system demonstrated great resilience and growth potential. The commerce quantity of the sharing economic system for the yr surged 2.9 p.c year-on-year to three.38 trillion yuan ($523.6 billion).

The pandemic’s affect on totally different areas of the sharing economic system different. The market quantity of the sharing healthcare sector grew quickly, with year-on-year development of 27.8 p.c. In distinction, the market quantity of sharing lodging, office-space and transportation dropped by 29.8 p.c, 26 p.c and 15.7 p.c, respectively, as a result of the areas required offline actions to finish a closed transaction loop.

“Sharing companies and new consumption modes had been enjoying a essential position in boosting nationwide financial resilience and vitality. In the meantime, sharing economic system platforms had been continually innovating enterprise methods and advertising modes, thus demonstrating varied benefits,” mentioned the report.

It mentioned that in 2020, one main change for the nation’s sharing economic system sector was that an increasing number of enterprises, which primarily served the consumer-end, expanded their companies to the business-end.

Xiaozhu, a Beijing-based sharing lodging web site/app, signed a strategic partnership with Bytedance’s enterprise service platform Feishu final yr, providing lodging options, akin to lodging for enterprise journeys, company teambuilding workouts and coaching conferences for registered enterprises on Feishu.

Ziyouxin, a versatile employment platform beneath Tencent’s finance and taxation expertise arm GoldenTec, actively responded to surging hiring necessities of enterprises in the course of the pandemic interval. In February of final yr, it launched an emergency recruitment service referred to as “shared staff”, providing greater than 10,000 employees to enterprises, together with Guangzhou Wondfo Biotech Co Ltd, Bluemoon, Wumart Group, iShansong and Yaofangwang.

One other new characteristic highlighted within the report was that the sharing economic system was additional built-in with internet-based advertising approaches, creating extra platform-user interplay and consumer stickiness.

For instance, in July, Xiaozhu teamed up with Xiaohongshu (Little Crimson Guide), an Instagram-like Chinese language style and way of life sharing platform, inviting key opinion leaders and key opinion shoppers on the platform to share their lodging experiences.

Huang Wei, an official from Xiaozhu’s public affairs division, mentioned: “KOLs and KOCs share their residing experiences on Xiaohongshu, and work together with customers on the net neighborhood, encouraging them to pay a go to to the advisable lodging. On this method, a circulation operating from on-line to offline is shaped.”

Information from Xiaozhu confirmed that between July and November, transaction quantity introduced by Xiaohongshu’s channels surpassed 10 million yuan, and the month-to-month development fee of gross merchandise quantity stood at 350 p.c. By Nov 25, 1,610 sharing lodging manufacturers had been registered on Xiaohongshu, and the charge-off fee of presale lodging reached 60 p.c.

“On-line advertising communities akin to Xiaohongshu conform to the principles of latest consumption communication. By means of picture and video-sharing, extra potential customers may be reached, creating extra journey and lodging demand. In the meantime, content material platforms are additional integrating with the tourism trade, bringing new visitors and development alternatives,” Huang mentioned.

As identified within the SIC report, wanting forward, as sharing economic system platforms enhance their useful resource inputs and develop enterprise, trade competitors will intensify.

“When the pandemic is over, the main target of enterprise competitors lies in how they understand consumer retention and revenue mode innovation. Efforts are wanted in product innovation and repair high quality enhancement,” mentioned the report.

Fan Jiping, head of WeDoctor Digital Medical Consortium, mentioned that within the post-pandemic period, there will probably be rising market demand for high-quality companies integrating on-line and offline modes of enterprise.

“For WeDoctor, digitalization and ‘intelligentization’ would be the focus of the entire healthcare trade within the close to future. Find out how to benefit from digital applied sciences to construct a service system that satisfies healthcare wants of varied affected person teams and raises the effectivity and degree of the trade-that is still a key concern for us,” Fan mentioned.

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