A Decade Development, Micro Business in China Reforms a New Ecosystem

Rhea-AI Summary

The micro business sector in China has seen significant growth from 2012 to 2021, particularly driven by the rise of livestream commerce. The market transactions exceeded RMB 5 trillion in 2020, reflecting a remarkable 110.2% year-on-year increase. Employment in this sector surged from 60 million to 130 million. Service providers like Youzan, Weimob, and WeTrade Group are key players supporting this ecosystem. These companies offer various services tailored to micro businesses, enhancing their market presence and sales efficiency.

Positive

• Market transactions in micro businesses exceeded RMB 5 trillion in 2020, marking a 110.2% year-on-year growth.
• Employment in the micro business sector increased from 60 million to 130 million in 2020.
• Service providers are expected to see dramatic growth due to the expanded business scale.

Negative

• None.

BEIJING, May 14, 2021 /PRNewswire/ -- From 2012 to 2021, micro businesses in China have experienced a continuous development. After ten years of growth, Chinese market greets with the popularity of livestream commerce, which has brought a new prosperous opportunity for micro businesses.

According to the report of China's micro businesses market research, published by data consultant company iResearch, the concept of micro businesses has improved with the changes of the Internet social ecosystem. Not only the original form, micro businesses also contain all merchants with sales and marketing business on social ecosystem platforms, including big companies, individuals and e-commerce platforms.

The report also reveals that the micro business market transaction in 2019 surpassed RMB 2 trillion, driven by the external economic circumstance and the extensive demands from other industries. In 2020, the growth year-on-year saw a record high 110.2%, reaching RMB 5 trillion. The prosperity of micro businesses leads to more flexible and time-sharing working opportunities. The number of micro business employees reached 60 million while increased to 130 million in 2020, among which there are also many self-employed people who achieve personal and family income through micro-business mode.

Development status of China's micro business market

To better regulate the micro business industry, support marketers to discover micro business mode on social ecosystem platforms and help those platforms improve customer services, the micro business service providers become more important for the industrial friendly development.

Based on the industrial circular business models of web traffic, conversion, transaction, fission, repurchase and retention, micro businesses take advantage of different service scenarios to establish in-depth links between social ecosystem platforms and marketers, aiming to achieve commercialization. In general, SaaS tools, marketing service and operation service are the key business of these service providers. In view of the enlarged business scale, Chinese micro business service providers expect a dramatic growth in the future.

At present, there are three well-known service providers in the Chinese market, including Youzan, Weimob and WeTrade Group. Youzan, completed its listing in Hong Kong in April 2018, is a SaaS system service provider, mainly providing store opening and business growth to e-commerce retail companies; Weimob, listed on the main board of HKEX in July 2019, is a SaaS service and advertising agency, offering precision marketing for SMEs; WeTrade Group, listing on OTCBB in the USA in July 2020, is a technical service provider of Cloud Intelligent System for micro-businesses, which is an internationalized system in the global micro-business cloud intelligence field.

Cases of third-party service providers in the social ecosystem

Those service providers continue to explore innovative models to accelerate the advancement of the layout and the maturation of the micro business ecosystem. For new companies and micro business practitioners, they also need more support to familiarize the changing micro business models and achieve high-efficiency and regulated sales and transactions.

In the future, following the improved social ecosystem layout and the development of service providers, the operation of the micro business industry will transform with standardized management, and become the mainstream sales models and channels in our daily life.

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SOURCE Shanghai iResearch Co., Ltd., China

FAQ

What is the significance of the micro business sector in China as of 2021?

The micro business sector in China has grown rapidly, contributing over RMB 5 trillion in transactions in 2020.

Who are the major service providers in China's micro business ecosystem?

Major service providers include Youzan, Weimob, and WeTrade Group.

How many people were employed in micro businesses in China by 2020?

By 2020, employment in micro businesses reached 130 million.

What role does livestream commerce play in the micro business market in China?

Livestream commerce has been a driving force behind the growth of the micro business market in China.

What are the future expectations for micro business service providers in China?

Service providers are expected to experience significant growth and help standardize management in the micro business industry.