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).



广深铁路 减持 3.18 研报
南京银行 买入 24.67 研报
抚顺特钢 持有 -- 研报
中电远达 持有 -- 研报
奥维通信 买入 30.00 研报
菲利华 持有 -- 研报
德尔家居 持有 -- 研报
南京银行 持有 -- 研报
华润万东 买入 -- 研报
三诺生物 买入 -- 研报
乐普医疗 买入 -- 研报


明家科技 0.38 0.48 研报
南京银行 0.91 1.13 研报
中电远达 0.15 0.35 研报
柳州医药 0 0 研报
中航光电 0.48 0.56 研报
久立特材 0.51 0.51 研报
应流股份 0 0 研报
运盛医疗 0 0 研报
创意信息 0 0 研报
大同煤业 0.78 0.44 研报
永泰能源 0.52 0.59 研报


万科A 29 持有 持有
万华化学 28 持有 中性
浦发银行 27 持有 持有
步步高 24 持有 持有
平安银行 23 持有 持有
兴业银行 22 持有 买入
招商银行 21 持有 持有
均胜电子 21 持有 持有
招商地产 21 持有 持有
保利地产 20 持有 持有
万华化学 20 持有 中性
三安光电 20 持有 中性
万科A 20 持有 持有
腾邦国际 20 持有 买入
华夏幸福 19 持有 持有
金地集团 19 中性 持有
光明乳业 19 持有 买入


电子信息 1056 156 350
商业百货 710 75 266
金融行业 708 47 173
生物制药 646 100 381
农林牧渔 635 36 242
房地产 635 53 151
食品行业 543 39 213
化工行业 530 88 164
机械行业 502 89 112
汽车制造 496 53 127
酒店旅游 457 33 319
服装鞋类 452 32 101
交通运输 403 55 75
电子器件 354 68 58
农药化肥 310 26 114
钢铁行业 308 36 14
建筑建材 308 54 76