Chinese Families' economic condition

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Description:

As China's economy kept growing at the rate of 7 or 8 percentage per year, people got richer and richer. Meanwhile, the commodity and food price did not go up sharply when compared with the rise of income. That is to say that people now get more money to spend on some items other than everyday spending than they did a few years before. This significantly stimulates people's consumption on Internet.

China had 338 million Internet users by the end of June/2009, up 40 million from the end of last year, according to a report released recently by the China Internet Network Information Center (CNNIC).[2]

Numbers:

Among the total, 320 million, or 94.3 percent, used broadband services, up 3.7 percentage points from the end of 2008.

The number of people using cell phones to access the Internet hit 155 million, up by 32.1 percent in the first half.

Most people used the Internet for news, entertainment and social networking. Online shopping was gaining popularity as the number of shoppers jumped by 14 million in six months to 87.9 million by June 2009.[3]

Enablers:

  • Increasing income of families
  • Relatively stable commodity price
  • More and more spare money for items other than spending on everyday life

Inhibitors:

  • Most people from last generation, say parents in a family born in 1950s, are not willing to spend money on Internet.
  • Government Policy
    • China government innovates and invests in internet censorship software to filter the information that the government does not want its people to expose.

Paradigms:

  • ADSL: wide band Internet access for family use
  • ISDN: advanced dialing method for family users to get access to Internet

Experts:

CNNIC: http://www.cnnic.net.cn/index/0E/00/11/

Timing:

On 20th April1994 China’s network got connected to the international network and became the 77th member of Internet.
On 17th January 1998 CNNIC started to do annual statistics on Internet
In 2000 Internet users in China got to 200,000
In 2004 the number of Internet users was 79,500,000 and computers connected on Internet was 194,500,000

Web Resources:

  1. [1]
  2. "China Internet addict beaten to death in rehab", NowPublic
  3. "China Search Engine Report 2008 Advertisers and Users Behavior Study", China Internet Watch