Economy

Everyone has been talking about how economy these days. I read something in one of the forums the other day. It pretty much pointed out the whole Chinese economic model was really messed up. Well, the stock was already down a lot. RMB appreciating, new labor law, squeezed out pretty much all the profits of small companies. according to some stats 30% of the SME on the coast have already closed.

That was before Wall Street crumbles. Now with america going into recession, maybe, import of Chinese goods will sharply decrease, which was how Chinese were making money before. companies are stopping manufactures. a lot of them, factory closing, layoffs. I doubt China has been full impacted by this downturn. wait until Q1, Q2 next year. What is going to happen?? no one know, but lets pray.

So how is digital market will be affected?? first clients have less budget, so media and agencies are going to suffer. But there will still be more people going online in China. so the online population will still increase. More mature netizens will seek for different things online, communities will still be hot. But there wont be any money... internet startups are gonna go through something really hard, especially the ones dont have a clear profit models like SNS and Videos. Their little ad revenue will be cut first by agencies & client. the web 2.0 bubble will fully burst. bad times for new media.

On the upside, marketers will probably pay more attention to the effect of the ads since now the budget is limited. better technology on performance marketing will probably be encouraged and paid attention to. maybe it is a time for Chinese digital market to cool down and really focus on building something nicely instead of blindly expand. Companies focuses on technology will eventually prevail.

When chaos spread, heros arise...