Every industry has its own lingo and China’s technology scene is no different. If you are new to China’s fast-growing IT industry, these trendy terms below will help you to navigate the scene.
What it means: O2O stands for “online to offline”. It refers to any business that connects its online operations to an offline component. The strategy entails finding customers through an online platform and bring them to an offline shop. Which companies are hot Dianping, also known as the Yelp of China, not only provides merchant information and consumer reviews, Dianping also offers group-buying, online restaurant reservation, take-out delivery and e-coupon promotions. Ele.me is one of China’s largest food delivery platforms and it is backed by Dianping.com and Tencent, which also utilizes O2O services as a key business strategy. Users can order a meal from one of the company’s restaurant partners and it will be delivered via the Ele.me platform.
What it means: OTA stands for online travel agency or a virtual agency that can help you to look for flights, hotels, trains and vacation packages. Which companies are hot: Ctrip.com or China’s Expedia, is one of China’s earliest OTAs. It was established in 1999 and is headquartered in Shanghai. Ctrip was listed on the NASDAQ in 2003. Qunar.com, similar to Ctrip.com, Qunar mainly sells flight tickets and hotels to business travellers Tuniu.com focuses on selling group and individual package tours. It is backed by e-commerce giant JD.com.
Internet Plus (互联网+)
What it means: Internet Plus is a synergistic policy promoting cooperation between digital platforms and offline industries. Chinese Prime Minister Li Keqiang announced Internet Plus as a national strategy in early March, promising to integrate mobile Internet, cloud computing and big data for manufacturing and promote the development of e-commerce, industrial networks and internet banking. Which companies are hot: Taobao is a successful example reflecting the Internet Plus strategy by connecting traditional industries such as markets with the Internet’s ability to exchange information. Didi Kuaidi, China’s largest taxi-hailing service is another example. It links transportation and logistics with the Internet and mobile apps.
What it means: P2P is peer-to-peer or person-to-person. In terms of financial services, P2P often refers to lending between micro loan companies and individuals or small and medium-sized enterprises. The existence of the Internet and e-commerce make P2P lending accessible online. Close to RMB 200 billion (USD 32.2 billion) in liquidity available in the Chinese market comes from P2P lending, the South China Morning Post reported. Which companies are hot Lufax, based in Shanghai, is an example of an Internet finance marketplace. The company is affiliated with Chinese insurance giant Ping An Insurance Group.
What it means: P2C stands for producer to consumer. It means products go straight from the factory into the hands of a consumer, without a middleman. The Bohai Commodity Exchange is China’s largest comprehensive commodity exchange and an example of the production-to-consumer e-commerce model, Sina Finance reported. Smartphone companies Xiaomi and OnePlus sell their products directly to consumers as P2C. P2C also has another explanation: Peer to Company lending. It’s part of the P2P concept. Micro loan companies provide short-term business loans to small and medium-sized enterprises. Online lending startup Jimubox.com is an example.
C2C means consumer-to-consumer or customer-to-customer. As an e-commerce term, it refers to a platform that facilitates business transactions between two customers. Alibaba’s portal Taobao, similar to ebay.com, is an example where anyone can start a shop on its platform and similarly purchasers can also pick and choose from any number of said shops offered through the same platform.
B2B means business to business. It refers to business relationships between enterprises, where business transactions are facilitated by an online platform. China’s e-commerce giant Alibaba is one of the world’s largest B2B web portals.
B2C means business to consumer. The retail experience has changed and online platforms are increasingly replacing brick and mortar outlets. B2C facilitates business transactions between businesses and consumers. Alibaba’s T-mall is an example. (Photo created by Rhea Liu at AllChinaTech.com.)