'Stay home' order boosts online business growth in China

Source:Global Times Published: 2020/2/2 18:13:35

A medical worker helps a doctor put on the protective suit before he enters an isolation ward at Fuzhou Pulmonary Hospital of Fujian in Fuzhou, southeast China's Fujian Province, Jan. 31, 2020.  (Photo by Wang Yi/Xinhua)


As Chinese people are staying at home as the novel coronavirus spreads, China's online economy, including e-learning and computer games, is witnessing rapid growth. 

By Sunday, nearly 20 education platforms in China such as New Oriental Education and Technology Group, Tomorrow Advancing Life and Hujiang Education Technologies have announced they will provide online education services for free.

Microsoft China said Sunday it will provide distance education solutions for its Office 365 subscribers, aiming to grab the opportunity brought about by surging online learning needs.

Photo: VCG


Online entertainment apps have surged in popularity. From January 21 to 27, apps which saw the biggest rise in activity are related to games, videos and healthcare and medicine, according to data from Qimai Technology Ltd, a Beijing-based application data analysis firm.

Chinese healthcare internet platforms such as Dingxiang Doctor and Haodf.com launched real time coronavirus coverage, online diagnosis and consulting services, which helped them win clients while helping the people better understand the virus.

Another sector that is closely relevant to consumers and saw skyrocketing growth is e-commerce. JDDJ, an online-to-offline retail platform of China's e-commerce giant JD.com, said that during the Chinese Spring Festival holidays, the platform saw sales surge 470 percent year-on-year. Sales of frozen food increased 790 percent year-on-year.

In addition, as many white-collar workers are asked to work at home, this will drive market demand for mobile office and distance meetings. Partly due to this, Chinese mainland software companies trading in Hong Kong stock market have performed well recently. Kingsoft rose 2.8 percent to HK$23.85 ($3.07) on Friday, when the Hang Seng Index slid 0.52 percent.

However, although the frequency and time consumers spent on online platforms increased, it does not mean online services will replace offline services, Liu Dingding, a Beijing-based industry analyst, told the Global Times on Sunday. "Fundamentally, the business model of existing platforms hasn't changed. Offline consumption is expected to instantly recover once the virus disappears," he said.

Global Times



Posted in: INDUSTRIES,ECONOMY,BIZ FOCUS

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