Eight impacts on Chinese and society after coronavirus
- Author:owen zhong
- Origin:original copyright
- Time of issue:2020-07-02 22:37
Eight impacts on Chinese and society after coronavirus
(Summary description)What are the coronavirus impacts on Chinese and society? This article tries to explore into the impacts on Chinese people and society by coronavirus outbreak since 2020 January 20th to March.
- Author:owen zhong
- Origin:original copyright
- Time of issue:2020-07-02 22:37
What are the coronavirus impacts on Chinese and society? This article tries to explore into the impacts on Chinese people and society by coronavirus outbreak since 2020 January 20th to March.
The coronavirus is testing not only the individual immunity system, but also the whole country immunity system. The coronavirus is regarded as a sudden disaster, but it is also a filter, an accelerator or an upgrader, which weeds out the weak ones and improve the strong ones.
"Strong get stronger, weak get weaker", is the rule of the history, and also the rule of social evoluation. In the long history of natural evolution, the one who can survive is neither the strongest ones, nor the smartest ones, but the most adaptable ones.
Being alive is so plain a wish. But it needs us to have a clear view on the basic rules of the evolution. I summarize it as Eight Impacts
Technology revolution evolved all other revolutions or changes
Coronavirus forces 1.4 billion people to stay at home for at least two or three weeks, which greatly increases the online time and frequency. For the O2O (online-to-offline) internet companies, it tests their capability of receiving order online, warehousing, delivering and customer service, such like many order-online internet companies, Meituan, Hema Fresh, Dingdong Fresh etc.
On the contrary, it almost killed all the product offline or service offline traditional companies, or at least gave them a long time depression. We realize that, the traditional offline business is so fragile, against external environment fluctuation.
Thus, the computing is the essential capability. The computing high peak is forced to be increased by the coronavirus. Take "Meituan" as an example, it uses the AI plus big data calculating tech, to be able to dispatch 600,000 couriers, to delivery 20 million take-away food, within 30-40 minutes.
Since 5G is coming, the AI, big data, block-chain will replace the current tech infrastructure, what will be the capability of your company ? How do you find your customers, and gives them the most matchable products, by what algorithmic tool ？
2. Cognition revolution, the underlying business logic
The biggest differences between humans is cognition. What humans valued most will be the track of their lives.
Chinese people was regarded as the most hard-working and money-oriented race globally. But the two things in the world will be valued more than money, which are freedom and healthy. Unfortunately, coronavirus takes both them away from Chinese people in the past weeks, which is that, no one can go outside, and more people died. Finally, people realize that, the immunity system is the core competition for indivisual, and for organization to conduct dimensional reduction attack against others competitors.
Many mind-sets is changing, such like
We thought "making money" is right, but being alive seems to be important First; We thought "social activities" is the focus of life, but accompany family seems to be more to the center; We thought "more choice more happy", but the fact we can see is, one pajamas can be used for the whole spring festival. "limited choice" seems make you more happy. We thought “expanding the scope of the enterprise” is the path to success, but sustainable stable money flow seems to be more fatal before failure. We thought "increasing sales revenue" is the key to profit, but "strong, reliable and active users" seems more to be the core asset of enterprise. We thought "highest value of assessment" is the direction of a CEO, but "the valued-added person on the whole supplier chain" seems to be more necessary, who should be paid more according to their contribution by the block-chain technology.
The human cognition is silently changing, which will definitely bring a revolution to the whole business structure and even society operation.
3. Habit revolution, forms your behavior and be your destiny
Many new habit is silently happening in Chinese people daily life. And, as we say, habit will be part of your character, which will finally determines your destiny. The behavioral psychology shows, 21 days repeated actions will become habits; 90 days repeated actions will become stable habits. Coronavirus gives us at least 21 days repeated actions, even longer.
People at home needs to buy vegetable, meat, fruit, snacks online by their mobile phones in the past several weeks, and they'll get used to buying everything online, instead of shopping outside, even will continue after the coronavirus.
Very soon, more and more people will get used to use internet to do everything, purchasing cooking material, shopping, learning, doing business, sharing experience, such like the new business mode, short video purchasing and learning.
Looking back forward to 2003, the SARS brought many internet e-business companies, like Alibaba, JD and so on, replacing the shops. We believe, the Coronavirus in 2020 will bring us the new pay-for-knowledge on-line business forms by articles, reports, e-books, radios, live bars, short videos and so on, replacing the traditional words and pictures medias.
It's very hard to build a habit, and it's more harder to change it. The under-going changes will not be paused anyway, on the contrary, will be accelerated.
4. Relationship revolution, "relation chain" changes to be "value chain"
Most traditional business are paused suddenly by the Coronavirus. The staff has to re-think about how to make a living by a variety of ways. The individual economy and self-employment rise sharply, which converts some consumers to be consumer manager with more power to represent consumers for righting against the producer.
In traditional business structure, developer, producer, investor, manager, are separated by a clear boundary. But now, the line of boundary is more blurred. More consumers become consumer managers, who require the developers and producers, to conduct personalized and flexible production according to their willing and preference, through their flat sales channels, to their defined precise marketing and sales targets.
“Social media influencer” helps their funs to customize products. Many more internet influencer, internet celebrities, opinion leaders, has their own fun consumer groups, even their own brands.
In the near future, the roles of producer, manager and consumer will be more obscurer. The traditional organization chart by administrative power will be replaced by the value contribution. The human resource will be more individual, collaborative, which may finally overturn the traditional working space and structure.
In a word, the individuals will be the smallest business unit finally, who has its own value property and "operation system". Their contributed value in the practical business chain will be noted, to be the criterion to conduct the final profit distribution. Therefore the business chain is changed from "relation chain" to be "value chain". The relation seems to be more loose, but the collaboration is more strengthened.
5. Brand revolutions, a swarm of small brands rises
Looking back the past few weeks, the main thinking and methods against Coronavirus is to control the "Crowd", around which the procedure, measurement, and objective are set. If the "Crowd" is controlled, the Coronavirus is controlled. Thus, the "Crowd" is the critical factor.
On the contrary, the “Commodity” is the fundamental factor for traditional society structure, around which people negotiate, bargain, sell or reject, where the market forms, including food market, fashion market, auto market, furniture market and so on. The traditional society structure and goal is to serve the flow of commodity.
It's foreseen that, the society in near future will be re-structured to serve the "Community" rather than the "Commodity". "Community" is a group of "Crowd" by certain label or property, such like resident community, college community, cyber community, travel community and so on. Around "Community", the business chain of products and service provider need to re-structure their way of produce, transport, stock and consumption, to serve the flow of "Crowd".
How does the "Commodity" cycle runs, in the new "Community" oriented society ?
Let's take the bee society as an example. Each group of bee has only one queen bee, few male bees and lots of worker bees. Male bees and worker bees are very loyal to the queen bee. Each group of bee grows well independently. A good queen bee can spawn 100,000 eggs per year. The worker fees gather honey for repopulating the bee group and also feeding the queen bee.
Similar to the human society, we can see, more and more internet celebrities, social media influencers, opinion leaders becomes new IPs or brands, with whom their team co-works. closely as their "male bees", around whom a lot of "fans" support them with concrete actions, by purchasing their recommended products or services.
In addition, some tiny work-team appears, and operate their own branded products, specially for a niche market users. These users are willing to pay for quality, for feelings or just for being same level users. The group including work-team and their users becomes a new IP or brand naturally, like the group of "Bee", which is capable to grow independently or separate by self-fission.
Either such internet celebrity or tiny work-team, of which the essence is the personalization or branding of IP. Only the personalized brand can hold a group of customers with firm loyalty.
Thus, a new trait of Chinese economy is the rise of a numerous small brands. They have some obvious advantages against the traditional brands. Looking at the currently closing shops of ZARA, and P&G, a lot of small local brands are approaching to the new youth by the new social media tools, like "Little Red Book" (Community E-commerce Platform) or "The Thrilling Video" (The Chinese Tiki's Tok), which is pushing out the old and big brands.
China is a big enough market, of which even you get very small market share like 0.1%, you've got a big 14 million market. Don't look down upon the small brands, they nibbles another brand's territory away.
6. Spreading revolutions, searching the "Super Spreader"
At the beginning of Coronavirus, Chinese anti-virus authority Dr. Zhong reminds to the society, must be aware of the "super spreader". The outbreak doesn't depend on the number of infected common individuals, but the number of infected super individuals.
It also applies for the commerce in the near future.
It's very common to see a new internet celebrity who has 1~10 million funs online in China over night, whose fun are mostly looker-on. However, it's very rare to see a real "Opinion Leader" online instead.
The internet booming in China is changing from the "Attention Thinking", to be updated “Persistence Thinking”. In other words, it is being updated from "Public Flow" to "Private Flow".
"Public Flow" likes walkers in an open street. No mater how big people flow the street has, it has no relationship with your shop. "Private Flow" likes the walkers, who step in your shop near the street, where you could talk with further relationship and making friends even.
"How to get the Private Flow", is an essential question for each internet celebrity. A key factor to quickly build a brand is to increase awareness or funs, especially follow the "Super Spreader" closely.
Here, we give a definition for the flow of these "Super Spreader" as "Private Space Golden Flow" and we could make a simple calculation on how it affects compared against "Public Flow", as below
1 Private Space Golden Flow > 100 Private Flow > 10000 Public Flow > 1000000 Pan Public Flow.
( In other words, 1 dying of love > 100 initiation of love > 10000 likes > 1000000 feel pretty)
In a short word, the operator should focus on how to covert the "Public Flow" wisely to "Private Flow", and filter out the "Private Space Golden Flow" from the "Super Spreader". If we make it, then twice as much can be accomplished with half the effort, and built to last.
7. Wealth revolutions, earning power is inferior to earning channel !
Coronavirus has changed the wealth view.
In the past, people like stable income, like salary etc. But with the outbreak of coronavirus from Wuhai to the whole China, more and more companies are locked and can't return to work. The seemingly stable income becomes unstable.
So what wealth-earning mode could built up the sense of safety and happiness ?
One way is, possessing time is better than possessing money. Because rich people may not have freedom, but free people must be rich. Some youth people always talk about wealth freedom. The real wealth freedom consists time freedom, financial freedom and soul freedom.
Second way, rather than building ability to make profit, better to build yourself to be profit itself. Because ability of making profit is an active and hard-working way to search profit, profit itself is a passive way to be searched by capital. Once you become profit, it'll be easier to make more money and more.
Lastly, rather than building ability to make profit, better to possess the pipeline of making profit. We can use social media network tools to locate highly trustable, sticky and active customers and provide them that special products or service they need. Customers will bring new customers. We should provide PGC (professional general content) to attract attention or flow, make live broadcast to sell goods, use client community platform to share user experience, in order to achieve the business grow, fission and multiplication. This procedure is a wealth pipeline.
This mode is going to be widely applied in these industries, including fashion, food, entertainment, education online, health, healing, which will not be influenced by the economic cycle much.
8. City revolutions, leading than blocking, smart cities come
It is unthinkable and that unique in human history, China has to lock down a 10 million people city to stop the outbreak of coronavirus, without any other choices.
It's demanded for a smarter and more intelligent city with all types of information flowing, in order to sense, monitor, manage and response the disaster in a real-time. With the new technology, AI, big data computing, 5G and block chain, it seems to provide us the possibility, to monitor and foresee the possible "sick" of the city, in order to avoid any big risk.
Let's imagine, if anybody's movement in Wuhai is sensed and trackable, it'll be so easy to know the situation of coronavirus in order, and make the right measurement accordingly.
Smart city includes, smart transportation, smart supply chain, smart emergency reservoir, smart information, even AI which can do disaster prediction.
All above is the coming Eight impacts after coronavirus outbreak. Every person or enterprise need to re-think your position and response in between.
(P.S Now, the coronavirus is still going on in the rest of world out of China. Let's see what impacts will happen for other countries. )
Reported by Mr. Owen Zhong.
May 18th, 2020. Evening
In Shenzhen, China