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Problems in China's network economy

Source: Shangpin China | Type: website encyclopedia | Time: November 6, 2014
1、 Unreasonable advertising and marketing expenses due to blindly demanding clicks and the number of registered users
Many venture capital companies regard advertising expenses of network companies not only as a cost, but also as an investment. Network design Under the call of "attention economy", the company engages in brand war. The foundation and core value of any company is profit. It is necessary to hype the website moderately. However, if the content and service are not well done, the operation of network companies will not last long. It is not advisable for officials to pursue the browsing rate. Even if users browse a website driven by advertisements, they will not visit the website as time passes because of poor content and general service. The number of registered users does not really represent the market value of network companies, because the number of registered users obtained under the temptation of gifts and prizes is meaningless.
 
internet economy

2、 Any means for financing and listing
Listing is not only a good place for Internet companies to raise funds on a large scale, but also the best mechanism for venture capital withdrawal. Internet companies regard listing as the only destination in their business processes. Since the second half of 2000, China's Internet websites have increased rapidly, but there are few profiteers. Most investors build websites not to make profits, but to hope that companies can raise funds from the capital market through listing. It is important to know that Internet companies should always be supervised by shareholders and relevant supervision agencies after listing. Once their operating performance is poor, it will not only affect the stock price and the enthusiasm of investors, but also affect the company's market image and subsequent financing credit.

3、 Focusing only on the concept of masterpieces, regardless of commercial operation
For the network companies engaged in e-commerce, e-commerce is first and foremost commerce, and there is no difference between e-commerce and traditional enterprises in the purpose of making profits. Their business performance depends on their sales and profit space. It is just the introduction of network technology in the traditional commercial circulation area, and the network is just a tool. Moreover, the biggest commercial advantage of the network is that it can reduce costs through online transactions, such as reducing inventory and intermediate circulation links. Therefore, it is necessary to save costs. If you only focus on concept hype and increase costs excessively, you will end up with a huge cost burden.

4、 Always want to run a horse to encircle the land without seeking commercial value
For many enterprises that are about to enter and have entered the Internet field, the purpose of joining the Internet is not to gain many benefits immediately, but because if they do not join the Internet and let competitors take the lead, they will bring incalculable losses and make themselves extremely passive. The reason why NASDAQ once hyped the network is that although network companies cannot make profits immediately, there is huge profit space in the future. Network companies should be soberly aware that they must have sufficient income to avoid bankruptcy. The bankruptcy of some network companies in NASDAQ is the best example. The network companies have little commercial value in some fields.
 
5、 The economic disputes of network economy are getting bigger and bigger, and the legislative problems are becoming more and more prominent
E-commerce has a short history of development and is not yet fully mature. In addition, it is a virtual society, different from the real society, belonging to the new economic category, different from the traditional economy, which has brought many difficulties to the legislation. This is also the reason why the world has not yet achieved comprehensive legislation on it. Network and e-commerce laws have an international nature. If every country has its own standards, it cannot be called the Internet. The legislation of network economy involves national security, and economic globalization has made the network and e-commerce develop greatly. Therefore, the economy of all countries is more open, and network security and national economic security are bound to become the basic principles of any national network law and e-commerce law. The network economy must be managed by the government. Network resources have become public resources. Without the participation, coordination and management of the government, such public resources will be difficult to form, and even if they are formed, they will soon be exhausted.
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1. Part of the content of this site comes from the network, and the copyright of some articles and pictures involved belongs to the original author. The reprint of this site is for everyone to learn and exchange, and should not be used for any commercial activities.

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