We roughly divide companies that perform well into four categories
popular tracks
epidemic recovery
low price competition
overseas expansion
In these four categories, there are some companies that have experienced rapid growth this year and made their first pot of gold in 2023.
01 Popular tracks: large models, new cars, you sing and I will appear
The most direct indicator of whether an industry is popular is whether it can recruit people and how much it spends to recruit people.
AI large models and new energy are the two most recruiting tracks this year.
According to the “Employment Data Report for College Graduates of 2023” released by Liepin, the number of positions for fresh graduates released in the two industries of AI large models and new energy ranked first and second in growth among 18 new tracks.
Large AI model companies are recruiting people like crazy, and there is a huge demand for graduates with master’s and doctoral degrees. The average annual salary for deep learning positions is 418,900 yuan, ranking first among all positions.
02 Epidemic recovery: coffee, travel, and concerts are all popular
Catering and tourism are the first industries to recover after the epidemic.
According to data from the National Bureau of Statistics, catering revenue in the first quarter of this year was 1.21 trillion yuan, which not only far exceeded last year, but also exceeded the level in 2019 before the epidemic. Its growth rate was also higher than the growth rate of total social retail sales in the same period.
Chain catering brands have launched store expansion strategies. According to data from the catering consulting agency Narrow Door Restaurant, the number of catering stores in my country has decreased by 2.24 million in the past three years. These vacant store locations have become the basis for “revenge entrepreneurship”.
Take Luckin Coffee as an example. In the two years from the end of 2019 to the end of 2021, the total number of Luckin Coffee stores nationwide increased from 4,789 to 6,024, with a total of 1,235 new stores added. In 2022, Luckin will open 2,190 new stores. In 2023, Luckin opened 2,622 stores in just half a year, greatly accelerating store openings.
03 Competing for low prices: online price war, offline discount stores
Another major trend in the market this year is to fight for low prices. Companies that focus on cost-effectiveness are doing well, such as Pinduoduo.
Pinduoduo started with low-price group sales and emerged with tens of billions of subsidies. Many merchants use Pinduoduo as a channel to clear inventory. Now, Pinduoduo is not only the fastest-growing Internet company in China, but also one of the most profitable.
In the first half of the year, Pinduoduo’s revenue grew as high as 63%, significantly ahead of its peers. At the same time, its net profit increased by 84% year-on-year to 21.2 billion yuan. Especially in the second quarter, Pinduoduo’s revenue exceeded market expectations by 7.8 billion yuan, and its net profit exceeded market expectations by about 3 billion yuan, which was an explosion.
The more cautious everyone is with their money, the more popular Pinduoduo will become.
Taobao and JD.com have also adjusted their strategies this year, tilting towards cost-effectiveness and joining low-price competition.
04 Expanding overseas: Too much money at home, go overseas to make money
Another promising direction this year is going overseas.
From new energy vehicles to coffee and milk tea to cross-border e-commerce, Chinese companies have restarted or accelerated their overseas expansion. They open stores overseas, expand, make money, and even export culture.
In the first half of this year, China exported 2.14 million vehicles, nearly 70% of last year’s total. For the first time, China surpassed Japan and became the world’s largest automobile exporter. Among them, the export proportion of new energy vehicles increased to nearly 30%.
Among traditional car companies, Wuling is vying for territory in Southeast Asia. The legendary Wuling Hongguang MINI entered Vietnam at the end of June, and Wuling Air EV landed in Thailand in July. BYD Passenger Cars has officially entered the Japanese market, opening more stores and showrooms.
Among the new car-making forces, Weilai has opened three NIO Houses in the Netherlands and Germany since March this year, and has also deployed NIO Space, multi-functional service centers and other business formats. Nezha Automobile has opened up overseas markets with Thailand and has become the largest selling brand in Thailand among the new forces.
Chinese e-commerce platforms are conquering overseas markets.
Pinduoduo’s cross-border e-commerce platform Temu uses familiar low-price formulas to allow overseas consumers to “cut a knife”. Since its launch in the United States last year, Temu has quickly topped the charts in major app stores and even spent heavily on advertising during the Super Bowl.
