Recently, IDC released the report "China's Digital Overall Market, 2023-2028". The report lowered the overall market size of China's digital market in the next five years, and the five-year compound growth rate decreased from 12% to 94%, and the time node to reach the market size target of 200 billion yuan will be postponed from 2026 to 2028.
The main reason behind this is: after the epidemic, the current economic situation is not clear, and at the same time, the local government has entered the peak period of debt repayment, and the financial pressure is greater, which will affect the digital demand in the next 2-3 years to a certain extent, and the overall market will enter a relatively low-speed growth trend.
To put it simply, there is no money, and it will be impossible to engage in flood irrigation in digital construction in the next few years, and we must start intensive cultivation.
For digital ** and smart city service providers, they will face severe challenges.
Declining market demand: With the slowdown in digital** growth, related manufacturers are facing the challenge of declining market demand. **The reduction in projects has directly affected their business volume, and some manufacturers are even facing survival difficulties.
Technological innovation pressure: In the context of limited resources, relevant manufacturers need to increase technological innovation efforts to meet the needs of digital development. However, this requires a large amount of capital and human resource investment, which increases the burden on manufacturers.
Intensified competitive pressure: Competition has become more intense in the face of declining market demand. Manufacturers need to continuously improve their competitiveness in order to gain market share.
Contract performance risk: Due to the reduction of investment, some manufacturers may face the risk of not being able to perform the contract, which will affect their business reputation and future development.
In this regard, I think that relevant manufacturers can make the following coping strategies to survive the cold winter
Adjust the business structure: Relevant manufacturers can adjust the business structure and expand the business area from a single ** project to a wider market area. In this way, the dependence on ** projects can be reduced and the ability to resist risks can be improved.
Strengthen technological innovation: In order to meet the needs of digital development, relevant manufacturers need to continuously strengthen technological innovation and improve the quality and efficiency of products and services. At the same time, technological innovation can also help manufacturers reduce costs and improve competitiveness.
Deepen cooperation with the world: Despite the reduction in investment, relevant manufacturers should still deepen cooperation with the company. By strengthening information communication with ** departments and understanding their needs and expectations, we can better adjust the business direction and improve service quality.
Expand financing channels: In order to cope with the financial pressure, relevant manufacturers can actively expand financing channels, such as seeking venture capital, bank loans, etc. At the same time, it can also consider raising funds and sharing risks with other enterprises through cooperation and alliances.
Improve service quality: In order to stand out from the competition, relevant manufacturers need to continuously improve service quality to meet the demand for efficient and convenient services from digital**. By optimizing service processes and improving service quality, customer satisfaction and loyalty can be enhanced, laying the foundation for future business expansion.
Strengthen risk management: For risk issues such as contract performance, relevant vendors need to establish and improve risk management mechanisms. By strengthening contract management and improving the risk early warning mechanism, we can reduce the impact of potential risks on business development.
Cultivating a talent team: In the context of constantly updating technology and changing market demand, cultivating a high-quality talent team is crucial to the development of relevant manufacturers. By increasing the introduction of talents, strengthening internal training and other ways, improve the professional skills and management ability of employees, and provide strong support for the sustainable development of the enterprise.
Pay attention to policy trends: In order to grasp policy opportunities and market demand changes in a timely manner, relevant manufacturers need to pay close attention to policy trends and industry development trends. Through in-depth study of policy guidance and market demand, we can adjust business strategies, optimize products and services, and enhance market competitiveness in a timely manner.
Exploring new business models: In the context of traditional business models being challenged, relevant manufacturers can actively explore new business models. For example, by carrying out platform-based services and providing solutions, we can realize the transformation from simple product sales to providing comprehensive solutions, and enhance the comprehensive competitiveness of enterprises.