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Startups targeting consumer goods, service sectors

Updated: 2013-11-27 07:27
By Cai Xiao ( China Daily)

The consumer goods and service sectors were the most popular ones among Chinese startup entrepreneurs in 2013 while fierce competition has become their largest challenge, according to a report released by CY-zone.cn on Tuesday.

The company, an early-stage investment portal, released the figures after polling almost 1,000 Chinese entrepreneurs.

About 56 percent of them said that they had confidence in the consumer goods and service sector, and 53.2 percent looked favorably on the online-to-offline sector.

The online-to-offline sector, also known as offline e-commerce, allows Internet users to see information about discounts on websites that encourage them to visit brick-and-mortar stores rather than virtual outlets.

In 2012, in addition to the consumer goods and service sectors, the mobile payments and healthcare sectors were the most popular.

This year, 24 percent of the respondents said that fierce competition was their biggest challenge, followed by a talent shortage and difficulties in market development.

Attracting talent is regarded as the most important factor in creating a successful startup, according to the Chinese entrepreneurs surveyed. The availability of funds and innovative programs are also considered important.

Meanwhile, an abundance of red tape when registering a company was also a major worry for Chinese startup entrepreneurs.

Deng Feng, founder and managing director of Northern Light Venture Capital, told China Daily that the entrepreneurial environment in China has improved a lot in the past 10 years ago and that sectors such as the online-to-offline business and Internet finance are full of opportunities.

"The online-to-offline sector has great potential. It requires startup entrepreneurs to combine mobile Internet services with a traditional sector and big data services," said Deng.

Deng added that teams, market and innovations are the main considerations when investing in a company.

Li Quansheng, a managing partner at Delta Capital, said that investors in the United States are more upbeat on Chinese US-listed companies than they were two or three years ago.

"Chinese companies have operated their businesses better and paid more attention to investor relation management, and global investors are showing more confidence in the Chinese economy after the new leaders released a series of reforms," said Li.

 
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