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The threshold for investment in Internet cafes is lowered. Is it a challenge or an opportunity? 2013-04-13

 

When it opened, it was said that Ningbo's largest animation Internet cafe and the Yingjia Internet Café with an investment of 6 million yuan were closed for more than seven months. Many people in the industry feel that the business of the Internet cafe industry is getting harder and harder, and it has already reached the bottom of development. There are also some Internet cafe operators who believe that the market is maturing, and some high-end foreign chain Internet cafes have quietly entered the Ningbo market to find development opportunities. This year, according to the current development of the industry, the city has slightly lowered the barriers to entry for Internet cafes. The minimum entry standard has become a business space of 60 computers with 120 square meters. How will Internet cafes develop in the future? Recently, the reporter conducted an in-depth investigation of the Internet cafe industry in Ningbo and saw the new trend of Internet cafes. Mr. Qi, who has been operating Internet cafes in Ningbo for 11 years, has retired since last year. Today, he only keeps an Internet cafe in Haishu District. In 2002, Mr. Qi opened his first Internet cafe, and the business of Internet cafes was good. Later, Mr. Qi continued to expand his business. At the time of the best business, he opened four Internet cafes and had thousands of computers. Because the Internet cafe opened early, Mr. Yu earned the first pot of gold. Since 2006, the business of Internet cafes has been difficult to do, and Mr. Yu has contracted the front line and has transferred some equipment. Speaking of the future trend of Internet cafe operations, Mr. Qi is very lamentable: business is getting harder and harder. Mr. Qi said that in the past, computer penetration rate was not high. Many people came to Internet cafes to play games online. The equipment was basically replaced once every three years. If it was not updated, it could not keep up with the trend, but at that time, the money came quickly and it was willing to invest. Now, everyone can access the Internet, and there are also highly equipped computers in the home. There are fewer and fewer people going to Internet cafes. The rent and labor costs are rising year by year. The cost pressure of opening Internet cafes in the urban area is increasing, and the profit margin is severely squeezed. Many people in the industry have also confirmed the words of Mr. Qi. In the third district, the layout of Internet cafes is already saturated. Taking Haishu District as an example, 76 “Network Culture Business Licenses” have been issued, of which 24 licenses are not open. By the end of 2012, there were 991 Internet cafes in Ningbo, and 110,000 terminal equipments, including 584 small and medium-sized Internet cafes with a scale of 100 to 300, and 25 large Internet cafes with more than 300. . The staff of the Cultural Market Management Office of Ningbo Culture, Radio, Film and Television Press and Publication Bureau told the reporter: "The development of Internet cafes in Ningbo has the characteristics of geographical imbalance. In the areas with large floating population such as Beilun, the operation status of Internet cafes is not bad. But in the old In the three districts, the competition in Internet cafes is particularly fierce, and the survival is extremely difficult.” How much is the current industry profit of the Internet cafe industry in Ningbo compared with the heyday? Ningbo Tianyi Internet Bar Chain Development Co., Ltd. has more than 30 chain Internet cafes. Mr. Xu, the general manager of Tianyi Internet Cafe, told reporters: "We have done a calculation to open a 100-terminal Internet cafe. The normal investment is 600,000 yuan. In the past, the cost can be recovered within half a year, but now it is generally one year. In half to two years, the cost can be recovered. I think that although the profit of Internet cafes has dropped compared with the past, this is the normal state. If an industry can make money in an industry, it is not normal." There is huge market pressure, but some high-end Internet cafes in the field have quietly entered the Ningbo market. The Shanghai chain Internet cafe, located in Tianyi Square, just finished its trial operation. Its responsible person, Mr. Zhuang, chatted with the reporter yesterday about the operation status: "We just raised the price. During the trial operation, the ordinary plane is 2 yuan an hour. Now it has become 3 yuan an hour, and the price of the box office has also increased accordingly. Today, some customers have not come, they went to the Internet cafes around, but some customers who like our environment have stayed." Mr. Zhuang believes that this is the role of consumption habits and market positioning mechanism. The market positioning of net fish net coffee is urban white-collar workers, which is a group of urban white-collar workers who are used to the consumption of net fish net coffee. Any industry has its stage of development, development, maturity and decline. When many people think that Internet cafes are beginning to go downhill, some people continue to invest in this industry in a new way. Where is the development of Internet cafes? According to industry insiders, the development of the Internet cafe industry has gone through three versions: the 1.0 version is the earliest Internet cafe, the most unregulated, family-style business, and still exists in some places where the economy is underdeveloped. Such Internet cafes are low-cost, flexible, and have a certain market. The 2.0 version of the Internet cafe is now a common Internet cafe, most of them open in crowded areas, attracting customers by price. As the living standards of the citizens continue to increase, their profit margins are gradually declining. The 3.0 version of the Internet cafe is an Internet cafe in the business district. It is casual and elegant, and it attracts young people. Some Internet cafes have attached special services such as coffee and desserts, which have become a resting place for urban white-collar workers and a new model for the development of Internet cafes. In addition, once the Internet cafes have a hard-to-find game, the competitive consumer group is likely to return to the Internet cafes again, becoming the support point for future Internet cafes. On March 19, 2013, the State Sports General Administration formed an e-sports team to participate in the 4th Asian Indoor and Budo Games. Some insiders believe that a new career is likely to drive the development of related industries. Just like Ding Junhui's "resurrection" in China, the e-sports team may "resurrect" Internet cafes. This is the prospect of Internet cafes seen by optimistic Internet cafe investors. The industry management department reminded that for investors who are already in the Internet cafe industry, the transformation is an urgent problem to be solved. The era of winning the market by price wars is gone. Investors have to determine their own market positioning, study consumer habits, explore better services to meet customer needs, and keep the industry alive.