CCID Consulting Analyzes the Characteristics of China’s Internet Finance Information Service Industry
research, consulting and IT outsourcing service provider, and the first
Chinese consulting firm listed in
HK08235), recently released an article on
service industry.
Amid ups and downs in the Chinese stock markets, the internet finance
information service industry has developed rapidly in recent years as a
supporting industry for the finance market, seeing a series of opportunities
and challenges. Internet finance information service industry in
outstanding features, as well as problems. It is necessary to find out a way
for the development of
Features:
in an initial stage
The internet finance information service industry appeared in
1990s and achieved its peak in 2007 with a growth of 270. With its huge
domestic and overseas market potential,
service industry scale is only
the global finance information service industry.
information service industry has great space for growth.
few big players. There are only 22 service providers that are authorized by
the stock exchanges to provide level 2 and topview services. CCID predicts
that rapid growth and high profit level of Internet finance information
service industry will attract more companies, including prominent
international companies.
Features: The long tail appears among institutional customers and
individual customers
The major income of the internet finance information service industry
comes from securities and other institutional customers, as well as individual
customers, among which about 70% comes from individual information services.
This situation lies in the fact that individual investors form the main body
of
individual investors. 100 million stock investors, 250 million internet
subscribers, and 600 mobile phone subscribers are potential individual
customers for the internet finance information service industry. If each of
them spend
scale will reach
including securities, banks, funds, insurance agents, QFII, trust, and VC. If
each of these organizations spends
will reach
Problems: Trade off between growth and stability
The features of internet finance information service industry lead to the
inevitable conflicts between growth and stability. Services for individual
customers involve more risks, while stable services for institutional
customers are restricted due to limited development space. Hence, it is
necessary for internet finance information service providers to improve their
competence in main business with diversified services and reasonable business
structure so as to balance company growth and stability. Whether a company
would succeed in solving these problems would decide its development prospect.
Problem: Inflexible product strategies
Mainstream Internet finance information service products are homogeneous
with little personalized and customized innovation. For example, most finance
websites still stay in Web 1.0 style with only mass information and few
customized functions and interaction with users. So do data information
services and quotation transaction system. Interface and functions of Topview
products are also similar products due to the guidance of the Shanghai Stock
Exchange. Besides, some companies design their products by imitating and
copying, which reduces the drive for innovation in regular enterprises.
Homogeneous products and price control set by the Shanghai Stock Exchange
led to close price in the market, which results in uncertainty when users make
their choice. On the other hand, functions and contents of most high value
product are not detachable and paid by month or year. High price lifts
purchase threshold.
CCID Consulting recommends the following several key areas for development
to internet finance information service companies
Optimize business structure basing on self-advantages. It is necessary for
Internet finance information service companies to consolidate institutional
business to ensure a stable income. On the other hand, companies should
strengthen individual business, especially innovative services so as to
achieve rapid growth. Development thoughts of Internet finance information
service companies should break the industrial and regional limitation to
expand service scope and product contents.
Develop diversified sales channels based on the internet. For example,
benefiting from cooperation with SINA, NetEase, and other portal websites,
Compass expands its own business and brings more profits to its partners.
Online communities, IM, and other virtual channels are effective sales
channels as users cannot get enough information just from the official
websites of internet finance information service companies due to laggard
service mode and absence of e-commerce functions. Besides, Internet finance
information service companies should strengthen cooperation with securities
and other institutional customers, which have good connections with the main
target user groups.
Adopt feasible prices and promotion strategies. Most individual customers
of finance information services tend to choose micro consumption. However,
current price strategy lifts the threshold of most users. Internet finance
information service companies should improve their pricing strategy and
provide various payment methods. For example, Internet finance information
service companies can provide a fixed ID to individual users, by which users
can deal with deposits through telephone, online banks, third party payment
platform, and other channels so as to pay by recycling times.
Market promotion will be a key issue due to homogeneous product and high
price. Free, low price, and discount are main product promotion methods.
Besides, experiencing marketing will be an effective method by which users can
understand products better and reduce risks.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the
first Chinese consulting firm listed in the Growth Enterprise Market of the
Stock Exchange (GEM) of
affiliated with China Center for Information Industry Development (hereinafter
known as CCID Group). Headquartered in
up branch offices in
over 300 professional consultants after many years of development. The
company’s business scope has covered over 200 large and medium-sized cities in
Based on major areas of competitiveness: industrial resources, information
technology and data channels, CCID Consulting provides customers with public
policy establishment, industry competitiveness upgrading, development strategy
and planning, marketing strategy and research, HR management, IT programming
and management. CCID Consulting’s customers range from industrial users in
electronics, telecommunications, energy, finance, automobile, to government
departments at all levels and diversified industrial parks. CCID Consulting
commits itself to becoming the No. 1 advisor for enterprise management, the No.
1 consultancy for government decisions and the No. 1 brand for informatization
consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
SOURCE CCID Consulting Co., Ltd.