China’s Economy:Internet Thinking Explored from An Economics Perspective

类别:宏观经济 机构:中国光大证券(香港)有限公司 研究员:光大证券(香港)研究所 日期:2014-04-14

If we are to remove the buzzwords in China, “Internet thinking” mustbe on the list. This is largely to do with the success of Xiaomi mobilephones which Ju Lei, founder of Xiaomi, has boldly attributed toInternet thinking. After Xiaomi, the public has become very interestedin Internet thinking and hopes to use it to revolutionize other sectorsand replicate Xiaomi’s success. However, what exactly is Internetthinking? So far there does not seem to have a definitive answer.

    Many simply dismiss it as a publicity gimmick or Xiaomi marketinghype.

    We believe the confusion is caused by the absence of a cleardefinition of the Internet thinking concept itself. This is exactly whatthe author is trying to explain from an economics perspective.

    In the author’s mind, Internet thinking does exist. Once the Internet isbeing used in businesses, traditional marketing models andphilosophies are revolutionized. Strictly speaking, the so-calledInternet thinking is a business model emerging from a vastcustomer base which has experienced tremendous baseexpansion and cost reduction enabled by the Internet. Theguiding principle of Internet thinking is this: “Ordinary people isking, user experience is priority, and scale is key”. Next, we shallengage the supply and demand analytical tools in economics toelaborate.

    Any given type of goods (service may also be defined as goods),may be rated differently by different users. Customers who are reallyin need of the goods will be willing to pay higher price while thosewith weak desire will only be willing to pay lower price. Therefore, asthe price of a product (or service) increases, the number ofcustomers willing to pay for it will decrease. If we translate this in agraph with price and quantity as the two axis, we will have adownward sloping demand curve that we are all familiar with. On theother hand, companies usually face increasing marginal cost. Thelarger the output, the higher the selling price required to make up forthe higher cost. Graphically, this is an upward sloping supply curve.

    The intersection of the demand and supply curves represents theactual transaction quantity and price.

    Under traditional production technologies, marginal costs ofproduction rise rapidly. This is because companies have limitedcapacities. When utilization closes to the maximum capacity,machine impairment and labour cost will drastically increase. Thismay also be a result of the companies’ limited marketing capacity sothat it needs to bear higher cost to promote the goods to morepeople. No matter what the reasons are, the endgame is that thecompanies can only serve so many customers. If we represent thisgraphically, we will have a rather steep supply curve. Theintersection of this supply and demand curves will not be too faraway from the origin. Let’s call this the “near end” of the demandcurve (Figure 1).



东华能源 持有 16.00 研报
泛海控股 持有 -- 研报
江苏神通 买入 -- 研报
海螺水泥 持有 -- 研报
天山股份 持有 -- 研报
爱仕达 持有 19.50 研报
片仔癀 买入 -- 研报
上海医药 买入 23.19 研报
江淮汽车 买入 -- 研报
宇通客车 买入 -- 研报
东风汽车 买入 -- 研报


东华能源 0.28 0.34 研报
泛海控股 0.14 0.12 研报
江苏神通 0.52 0.39 研报
天山股份 2.45 0.78 研报
海螺水泥 2.35 1.21 研报
片仔癀 1.69 2.43 研报
上海医药 0.82 0.78 研报
太阳纸业 0.70 0.36 研报
天士力 1.27 1.42 研报
美康生物 0 0 研报
宏发股份 0.18 2.25 研报


万科A 32 持有 持有
伊利股份 30 持有 持有
保利地产 29 持有 持有
兴业银行 29 中性 卖出
贵州茅台 28 持有 持有
南京银行 27 持有 卖出
宋城演艺 26 持有 持有
保利地产 25 持有 持有
中炬高新 25 持有 持有
贵州茅台 24 持有 持有
伊利股份 24 持有 持有
万科A 24 中性 持有
江淮汽车 24 持有 买入
泸州老窖 24 持有 持有
五粮液 24 持有 持有
美的集团 23 持有 持有
万华化学 22 持有 持有


电子信息 1192 168 430
房地产 823 73 237
交通运输 732 70 226
商业百货 694 69 286
机械行业 679 109 219
化工行业 677 95 252
建筑建材 674 69 322
生物制药 655 98 339
电子器件 639 102 206
金融行业 638 39 286
食品行业 602 40 290
农林牧渔 556 40 228
服装鞋类 544 44 228
煤炭行业 489 31 109
酒店旅游 488 31 302
酿酒行业 464 21 153
环保行业 427 25 164