Grabbing food in the middle of the night for 2 minutes is favourite things done by many working people in china. Online orders soared six or seven times during lockdown in china as reported by various food delivery apps in china like Meituan-Dianping and ele.me .
Nearly 200 million people nationwide worked from home in this sudden epidemic. This let the business model based on digital economy show its unique advantages. The digital economy, not only safeguarded normal day to day living needs during the epidemic, but also played an important role in urban management, transportation and logistics, and production.
format of digital economy further strengthened new economic models
Speaking of the impact of the current epidemic on China’s economy, Lian Weiliang, deputy director of the National Development and Reform Commission, said that the epidemic mainly affected consumption of services such as transportation, cultural tourism, hotels, restaurants, film and entertainment. But at the same time, the digital economy and new business formats such as online shopping, online food ordering, and online entertainment are very active.
Since the implementation of the epidemic control and lockdown measures, the online “home economy” has entered a rising phase. Previously the response was tepid for online education, online shopping, remote collaborative office and other online services. But during lockdown this models have provided users with a more direct experience and benefits. Theseare implicitly cultivating and transferring user purchasing habits, which will bring more business opportunities. Make more digital applications and services to stand out from traditional models.
The development of new areas such as modern logistics systems, remote offices, and online medical services has satisfied people’s needs during the epidemic, reduced service personnel movements, reduced the risk of epidemic transmission, and made important contributions to stable economic growth in china. At the same time, the stagnation of social functions under the epidemic situation has been alleviated, reflecting the vitality and advantages of the digital economy, and highlighting the value and potential of the digital economy.
The sustained development of the digital economy under the epidemic has benefited from China’s focus and accumulation of technological advantages, especially big data, artificial intelligence, 5G and other technologies. Which have effectively promoted economic transformation. These technologies during epidemic prevention and control helped in streamlining people’s work and Life providing strong support.
Although the offline service industry relying on passenger traffic has been greatly affected in the short term, the continued development of new formats and models of the digital economy reflects the huge potential of the Chinese market. The trend of consumption upgrade to new economy continues and there is enough space to ensure the Chinese economy’s fundamentals for long-term positive and high-quality growth remain unchanged.
Enterprises seized the opportunity of digital transformation
Since the outbreak of the epidemic, temporary isolation has not blocked people’s life completely but they felt the charm of digital technology and the digital economy more closely. And Chinese digital technology enterprises are also participating in the epidemic prevention and control and economic reconstruction in an all-round way through digitalization and intelligence through flexible and diversified innovative technological means. Bringing light, Hope and confidence to the people in the fog of new coronavirus
If SARS in 2003 opened the door to the Internet and digital industrialization, then the new Covid-19 epidemic may become a key node that stimulates the digital transformation of SMEs and the acceleration of industrial digitalization. Under the influence of the epidemic, more and more SMEs are beginning to realize the importance of digitalization due to losses some of them faced due to non-integrating with digital consumer ecosystem.
Under the pressure of the epidemic, many companies are finding ways to digitally transform and innovate. On the one hand, companies are starting from the key needs of customers and the market, seize the key elements to promote business growth, and realize product and service innovation through new technologies, new models, and new channels. On the other hand, they are relying on digital analysis of the company’s existing architecture and applications, strategizing the business’s dependence on systems and softwares, formulating a comprehensive and effective well-organized migration plan, and proceeding in an orderly manner.
Whoever can seize the market newly formed needs will be the one to seize blue ocean of the new digital era post coronavirus epidemic. One who transforms in this adversity, will see gain in larger market share when “spring” arrives.
As Chinese Government said, “At present, the Chinese are still fighting the epidemic intensively, and the economy will be affected in the short term. However, the rapid development of the digital economy will largely hedge against the negative impact of the epidemic. A huge Chinese market is still there, and the fundamentals of China’s long-term fundamentals and high-quality growth have not changed. China is confident and capable of defeating the epidemic and maintaining long-term stable economic development. “