The view of Lujiazui area at the Bund in Shanghai, Aug 2, 2019. [Photo/IC]

Net-related biz, gaming, e-payments and e-literature boost consumption

Shanghai is consolidating its position as a hub for the online new \r\neconomy, a year after the municipal government released a guideline to \r\nbolster the sector's development.

According to a recent report, the metropolis saw internet-related \r\nbusinesses to be a cornerstone in driving economic growth in the past \r\nyear, and found itself in a leading position in several key realms from \r\ndigital payments to online literature.

The White Paper on Shanghai's Online New Economy 2020 was released as\r\n the city kicked off an information consumption-themed campaign as one \r\npillar of the city's 5-5 Shopping Festival to boost spending.

The report found that despite COVID-19, Shanghai's software and \r\ninformation services sector saw added value jump 13.5 percent \r\nyear-on-year during the festival, accounting for 11.5 percent of all \r\nadded output across the entire services sector.

Besides, Shanghai is now home to 21 of the Top 100 internet-based \r\ncompanies in China. By the end of October, 84,000 companies were engaged\r\n in cross-border e-commerce, which greatly facilitated exports for small\r\n and medium-sized Chinese companies at the height of the pandemic.

The city also shows resilience among niche segments: it accounts for \r\n60 percent of the third-party payment market, 70 percent of local living\r\n services, 90 percent of online literature and 30 percent of online \r\ngaming.

"Shanghai's goal of building itself into an international consumption\r\n center should also include information consumption," said Vice-Mayor Wu\r\n Qing during a ceremony on May 17. "We should prioritize the development\r\n of the online new economy across 12 sectors like industrial internet, \r\nonline healthcare, remote education and grocery e-commerce."

The Shanghai municipal government released an action plan in April \r\nlast year to develop the city's online new economy, which loosely refers\r\n to employing technologies like artificial intelligence, 5G networks and\r\n big data to transform and empower traditional industries.

The month-long festival, spanning May 17 to June 17, will showcase a \r\nnumber of new technologies and business models applied to all walks of \r\nlife.

In addition to hundreds of campaigns, a virtual gala was held on \r\nopening night, with influencers promoting information-related products \r\nand services such as cloud computing, SaaS (software as a service), and \r\nonline cultural and entertainment offerings.

The Shanghai branch of China Mobile, the country's top telecom \r\ncarrier, is dishing out a number of perks such as steep subsidies and \r\npreferential after-sales services for individual purchases of 5G \r\nsmartphones. The company on May 16 unveiled the edge-to-edge 5G network \r\nslicing, a technology that helps business and government optimize their \r\nrespective industrial applications.

Liang Changlin, founder and CEO of grocery e-tailer Dingdong Maicai, \r\nbelieved that internet technologies stand to transform traditional \r\nindustries that were previously run by intuition.

"For instance, big data can predict customer needs and calculate the \r\nbest route in real time to ensure smooth and in-time door-to-door \r\ndelivery," he said.

"As a medical AI company, we do see the necessity to use internet \r\ntechnologies to empower the traditional industry," said Zhan Yiqiang, \r\nco-founder and chief operating officer of United Imaging Intelligence.

The company is now partnering with some 300 medical institutions \r\nnationwide to run examinations and help doctors detect overlooked \r\nfractures on X-rays.

"For the next step, we look forward to using more novel technologies \r\nlike 5G to revolutionize the entire work flow of hospitals and enhance \r\noperational efficiency," he said.