After two years of shuffling, will Internet cafes be the ultimate outlet for Internet cafes？
The "tall" environment of many Internet cafes is comparable to that of star-rated hotels. (photo by Cui Xiaoming)
Internet cafes in the early years (data pictures)
Zhejiang Online July 29th Yesterday, the reporter walked into Sihe Net Garden in Fuqiao Street, Haishu District. The comfortable and spacious booth, bright and transparent space, spotless floor and literary decoration made people feel like they were in a star-rated hotel. Is this the same Internet cafe that used to be crowded, with turbid air and shelter evil people from evil practices? After several years of silence and depression, the Internet cafe industry, which has almost come to an end, has turned around luxuriously after several years of development pains and market reshuffle, and has become a fashionable place for young people to relax, entertain and socialize.
savage growth
It is understood that the first Internet cafe in our city appeared in 1998. With the development of the Internet, the Internet cafe industry has experienced more than 10 years of great leap forward development. Once, when people met, it was very fashionable to say, "Did you surf the Internet today?"
Zhong Guohong, the owner of Sihe Net Garden, began to "touch the net" in 2003, which is also the first batch of people who "eat crabs" in Ningbo. He still remembers that the first Internet cafe opened at that time was called Green Internet Cafe, next to Wanli College. At that time, the internet access fee was about two yuan per hour, which was not cheap compared with the per capita income. At that time, surfing the Internet was a fashion, and watching news, chatting online and playing games were the main purposes of surfing the Internet. In 2005, with the rapid development of economy, the number of people surfing the Internet increased sharply. People from all walks of life have joined the ranks of netizens. At the same time, the dirty environment of Internet cafes is criticized by the society. Some black internet cafes allow minors, which leads to the whole internet cafe industry being criticized by the whole society. However, the chaotic Internet cafe industry is still growing wildly. The regulatory authorities frequently made heavy punches and constantly increased the intensity of rectification. Internet cafes once became the focus of social attention. Due to the difficulty of management, the state controls the total amount of Internet cafes, and the threshold for entering the Internet cafe industry is getting higher and higher. For a time, Luoyang paper is expensive for Internet cafes. Chen Mingming, the owner of the starting point Internet cafe, entered the Internet cafe industry in 2009 and spent more than 400,000 yuan to get an Internet cafe through the overall transfer of others. Zhong Guohong, the owner of Sihe Net Garden, couldn’t get more licenses, so he kept expanding the number of computers in Internet cafes: from 60 to 250. Even though the number has tripled, business is still booming. The daily business income of a computer is 20 yuan to 25 yuan, and the daily cash income of an Internet cafe is more than 5,000 yuan. At that time, the labor and venue rent were not expensive, so the profit was considerable.This fiery situation will last until about 2011.
Go into decline
Internet cafes flourish and decline because of the Internet. The rapid development and popularization of mobile Internet technology has brought great convenience to people surfing the Internet. Whether it is to get information or to have fun, Internet cafes have become less important. Coupled with backward management, outdated equipment and poor environment, Internet cafes that used to be crowded will soon be empty. Zhong Guohong clearly felt the overall decline of the industry. The most direct reflection is that fewer people come to Internet cafes, and the operating income of each computer has dropped by almost two-thirds compared with the peak period. Most Internet cafes cannot make ends meet. Pessimists believe that Internet cafes are bound to be crushed by the mobile Internet and die out. Many practitioners feel confused and helpless.
Luo Jianrong, Marketing Department of Municipal Press and Publication Bureau, analyzed that the main reasons for the decline of Internet cafes are: backward management mode and weak service consciousness; The profit model is single, almost all of which are maintained by internet access fees; The environment is dirty, the space is crowded, the air mobility is poor, and there are great hidden dangers in fire safety; The marketing concept is backward, and there is no way to retain loyal customers; The illegal operation of black internet cafes has affected the image of the whole industry; Operating costs remain high, but the machine time fee remains at the level of 10 years ago. According to incomplete statistics, it is not bad that Internet cafes can maintain the profit balance point during this period. In order to save money, some owners started the work of network management themselves. Prosperity fades away, leaving only you.
Swim into "catfish"
Just when everyone was at a loss, the Internet cafe market in Ningbo swam into a "catfish". In 2012, Wangyu Internet Cafe from Shanghai opened its first store in Ningbo in Tianyi Square. Different from ordinary Internet cafes in the traditional sense, Wangyu Internet Cafe provides customers with Internet access and game services, as well as rest, office, coffee, food and other services. The coffee bar in Wangyu Internet Cafe is equipped with a stand, a booth, an Internet service area and a VIP box, which takes into account all aspects of entertainment, leisure and business to meet the needs of different customers. From environment to marketing, Net Fish Internet Cafe is refreshing and completely subverts the traditional concept of Internet Cafe. As soon as the store opened, it was widely welcomed. Although the price of internet access is higher, it does not affect people’s enthusiasm for net fish internet cafes at all.
Zhong Guohong has been thinking about the transformation for a long time, and has also made many field trips to Shanghai’s Net Fish Internet Cafe, longing for their marketing model and environment creation for a long time. The success of Net Fish Internet Cafe in Ningbo made him determined to take the road of transformation. In 2013, Zhong Guohong upgraded the Internet cafe on Zhongshan Road. He reduced computers from 250 to 178. In the case that the business area has not changed, it means that the floor space of each computer has greatly increased, the environment has become spacious and the comfort has increased a lot. He also learned the model of net fish internet cafe, and opened up a place to make coffee bars and provide tea, drinks and fruits. Internet access charges are raised to 4 yuan to 6 yuan per hour. After a month of trial operation, Zhong Guohong found that the operating income increased by 20% when the number of computers decreased by 30%, especially the operating income of coffee bars accounted for 30% of the total income.
Zhong Guohong is one step ahead, and more people are still watching. In November 2014, the Ministry of Culture and other four ministries and commissions jointly issued a document, fully liberalizing the approval of Internet cafes, canceling the requirements of cultural administrative departments at all levels on the total number and layout of Internet service places, canceling the restrictions on the number of computers and business area of Internet places, and clearly stipulating the implementation of "first license". After the introduction of these heavy policies, a group of people outside the industry entered the internet cafe industry with huge sums of money, and a number of internet cafes with exquisite decoration, excellent hardware and advanced management came into being. Under the squeeze of these new Internet cafes, the owners of Internet cafes who cling to the disabled and try to muddle along are forced into a desperate situation and have embarked on the road of transformation and upgrading. In just two years, 50% of Internet cafes in downtown Ningbo have been renovated. According to the survey of the Internet Cafe Industry Association, by the end of 2015, there were about 250 Internet cafes in the city. The Internet cafe industry has taken on a new look.
Deep transformation
Although there is a word difference between internet cafes and internet cafes, there is a thousand miles difference. If only the decoration is upgraded and the pattern is adjusted, there will be only the shape of an internet cafe without the reality of an internet cafe. Internet cafes in Ningbo have been moving towards deep water areas in the process of transforming into Internet cafes, and the following trends have emerged:
Chain development: Chain operation can give full play to the advantages of brand, business model, business resources and service ability, and can quickly improve service quality at a relatively low cost. For a long time, the Internet cafe industry in our city has the characteristics of small and scattered, and more than 90% are single Internet cafes. In the past two years, the cultural authorities of our city have taken advantage of the opportunity of the transformation of Internet cafes to actively promote the chain, brand and professional development model of Internet cafes. At present, the more successful representatives of the development of chain Internet cafes in our city are Sihe Internet Garden, Tianchuang Internet Cafe, Hi-Family Technology, Net Fish Internet Cafe, Mofei Technology and Insect Internet Cafe. Among them, Sihe Net Garden and Wangyu Internet Cafe are two representative chain models. Sihe Net Garden is a local enterprise, with 5 direct stores and more than 10 Internet cafes, which directly promotes the improvement of the whole industry. Wangyu Internet Cafe is the "aircraft carrier" of the national Internet cafe industry, with advanced management mode and marketing concept, and has also hosted more than 10 Internet cafes. After two years of development, the proportion of chain internet cafes has risen sharply.
Diversified business: Internet cafes represented by Qidian Internet Cafe actively expand diversified business. At the starting point of the Internet cafe Gulou store, the reporter saw at the scene that the water bar was full of bread, milk tea, coffee, mineral water, etc. From time to time, people would come to order. Next to the counter, there are also headsets, keyboards, mice and other internet equipment. Chen Mingming, the boss, said that he had just talked about cooperation with a brand store and sold it in his store, which was divided into proportions. Inside the Internet cafe, there are four billiards tables, and several young people are playing billiards. I’ve been sitting on the Internet for a long time, so I’ll play a few games of billiards, which is just a good time to adjust. Chen Mingming said that diversified business is an inevitable choice for the transformation of Internet cafes. Many internet cafes have expanded rapidly during the rapid development, but now what everyone wants is not quantity, but service and quality, so they are all doing the work of reducing quantity and improving quality. After the number is reduced, the extra venues are used in every way, so Internet cafes are deeply integrated with coffee bars, billiards and board games. It is understood that in this model, the main business will generally be highlighted, that is, 70% of the area will be used for Internet cafes, and the rest will be comprehensively laid out. The advantage of this model is that the site is fully utilized and the income sources are diversified. The survey results of the Internet Cafe Industry Association in 2015 also show that, in addition to Internet access fees, 20% to 30% of the income of Internet cafes comes from water bars, billiards and so on.
Market segmentation: adapting to the development of the times, further segmenting the market and seeking breakthroughs in some niche areas are also a path for the transformation of Internet cafes in our city. Internet cafes with the theme of e-sports have developed rapidly. The reporter saw in an e-sports hall that a large electronic screen was hung in the hall, and the event was being carried out, with an anchor explaining it. It is understood that e-sports has a complete set of equipment including computers and seats for the war zone, and the price is as high as 30,000 yuan. According to the person in charge of the e-sports hall, they are not really an e-sports hall, but only set aside a venue in the Internet cafe as an e-sports area for players to compete and entertain. Although the online price of e-sports hall is more expensive than that of ordinary internet cafes, the most expensive e-sports hall costs 20 yuan/hour to the war zone, but its popularity is in sharp contrast with ordinary internet cafes, and the most expensive location needs to be reserved in advance, which is in short supply. The player who went to the e-sports hall said: "Come here to play games, just to find the atmosphere and feel." Many people in the industry are also very optimistic about this model, saying that the e-sports hall can promote the development of e-sports and find a new way out for the increasingly depressed industry of Internet cafes. At present, there are more than 20 Internet cafes with the theme of e-sports in our city.
Deep-rooted service: Don’t be surprised if one day you walk into an Internet cafe and the waiter hands you a clean wet towel and greets you warmly as soon as you enter the door. This kind of "high-level" service may appear in front of you soon. In recent years, in the process of transforming Internet cafes, the Internet cafe industry in our city has not only to "face", but also to "lining", and has made great efforts in service. The first is the ban on smoking. Most Internet cafes "sacrifice" the trump card of banning smoking in the whole audience. Zhong Guohong, the owner of Sihe Net Garden, said that when it was first implemented, waiters were beaten many times when they stopped smoking. However, creating a refreshing environment is the first step to do a good job of service, for which the vast majority of internet cafes are still silently insisting. In addition, Mofei Internet Cafe, together with 12 other Internet Cafes in the central city, cooperated with the Municipal Library, and opened a mobile book point of the Municipal Library in the Internet Cafe, where books can be borrowed and returned. Some Internet cafes in Haishu District also provide services for migrant workers to purchase Spring Festival travel rush train tickets online. When surfing the Internet in Sihe Net Garden, consumers sit in front of the computer, just click the mouse to order directly, and iced drinks, fruits and takeout will be sent to them. This kind of personal butler service allows consumers to fully enjoy a leisure time. Many Internet cafes have also opened WeChat WeChat official account, where you can make an appointment to surf the Internet and choose your favorite seat on your mobile phone.
Implied worry
Although many Internet cafes have successfully transformed, some hidden worries in the process of transformation have also attracted the attention of people in the industry.
According to the survey of the Internet Cafe Industry Association, the number of Internet users in our city is gradually decreasing, with a decrease of about 5% in 2015 compared with the previous year. The mainstream consumer groups between the ages of 18 and 36 are losing, but the development of the two major markets of "female players" and "40+players" obviously can’t keep up with the market rhythm. Although the consumption base is still huge, it is distributed to many internet cafes, and the number is not what it used to be.
In November 2014, after the introduction of the New Deal to cancel the index of Internet cafes, a wave of capital poured in, and 3 million and 5 million yuan were spent on Internet cafes. On the one hand, the number of consumers in internet cafes is decreasing, and on the other hand, capital is entering in a big way. It is understood that there are 13 large-scale Internet cafes in Tianyi Business Circle alone, and several others are under renovation. According to the data from the Internet Cafe Industry Association, in 2015, the total number of computers in Internet cafes in the city increased by 15.89% compared with the previous year, and the operating area of the place increased by 18.85% compared with the previous year. Judging from the profitability of single machine in average index, which reflects the overall level of the industry, the year 2015 was significantly lower than the previous year, with a decrease of 30%, which means that the recovery period of funds will be longer. The insiders believe that "the climax will definitely reveal the shallows in the past", and the situation of "excess capacity" will gradually emerge. After two or three years, there may be another wave of Internet cafes closing down. In addition, although more than 50% of the internet cafes in the central city have been converted into internet cafes, about 20% of them have coffee bars in name only and have not really operated effectively. The reason is that many waiters are born out of network management, have no service consciousness and skills, and can’t make iced drinks and grind coffee, which leads to the bleak business of coffee bars. Operators have to reduce staff and increase efficiency, which in turn leads to worse business, thus forming a vicious circle, and finally the coffee bar has to "stop". This kind of Internet cafes "wear new clothes, but walk the old road", which is worrying. There are also some remote Internet cafes that blindly transform, without considering the actual consumption capacity, and also introduce coffee bars, water bars, etc., which raises the operating costs, but it is not worth the candle.
Still on the road
The transformation from internet cafes to internet cafes is obviously a way out, but it is not once and for all, and the transformation is always on the road. Relevant experts believe that new demands and new formats are emerging one after another, and we need to study the market and pay attention to the trend in order to win the initiative. In Tianyi business circle, a new consumption pattern, Internet cafe entertainment complex, has quietly appeared. There are Internet cafes, board games, billiards and chess in the complex, and consumers need to buy tickets to enter. You can stay in 30 yuan for a whole day if you pay a ticket. At present, this model is still testing the water, and the impact on related industries needs to be evaluated. In addition, VR (Virtual Reality) technology is maturing day by day, and it is currently "running" into the entertainment game industry, and a VR game zone has also appeared in Tianyi Square. The trend of net fish internet cafes has always been the vane of the internet cafe industry. In 2015, "Net Fish" first mentioned the operation mode of "internet plus", created a new O2O format, and created an online and offline one-stop interactive entertainment platform for O2O. The core product, the first O2O game social app in China, was successfully launched. For these dazzling concepts, most Internet cafe owners "can’t come" but "yearn for it". After all, opportunities always favor prepared minds.
The ancestors can be one step ahead of others.
—— Enlightenment from the transformation of Internet cafe industry
After three years of silence and two years of transformation, the Internet cafe industry has found the path of Internet cafes and ushered in its own wave of spring. Its experience of trying first has certain reference significance for cultural industries that are in transition or have not yet transformed.
It is better to take the initiative than to wait passively. Enterprises are the main body of the market and have the most acute sense of smell. Since the overall depression of the Internet cafe industry in 2011, most enterprises are struggling on the line of life and death. Some good experiences and practices have emerged in Shanghai, Changsha and other places, but no one has taken the initiative to break the stagnant situation. After the "catfish" of the net fish Internet cafe swam in, it forced the enterprise to embark on the road of transformation and upgrading. Fortunately, enterprises in our city learn quickly and keep up closely, and most of them catch up with the last bus of industry transformation.
Learning advanced experience should be grounded. In the process of transforming Internet cafes, when many Internet cafes were still waiting to see, Sihe Net Garden made a decisive attack and successfully transformed ahead of others, so it firmly grasped the initiative. They learn advanced experience such as net fish and Internet cafes, and combine local cultural characteristics and consumption habits to explore their own set of management experience, design style and marketing strategy. When other Internet cafes are on the road of transformation, they already have the ability to export their experience in Internet cafe management and operation, and there are an endless stream of Internet cafes that actively request to join their subsidiaries and ask them to be hosted, which not only helps "backward" enterprises, but also enhances the level of the whole industry and strengthens their own strength. Even in the face of such a national first-class enterprise as Netfish Internet Cafe, they can compete with each other.
Actively try to innovate. A group of Internet cafe enterprises, represented by the starting point Internet cafe, are facing difficulties and actively trying to diversify their operations. Whether it’s a combination of water bar and internet cafe, or a combination of board game, billiards and internet cafe, it’s a great try, but it’s a way to survive for itself. Other Internet cafes seize market segments, boldly enter the e-sports industry, and also gain a place for themselves in the industry. This spirit deserves encouragement and affirmation.
The competent department is active and promising. In the face of the decline of the whole industry, the competent government departments are in place, give full play to the decisive role of the market in resource allocation, and introduce policies to guide the development of the Internet cafe industry in the direction of chain, brand and specialization. In July 2015, at key time and important nodes, the competent department organized more than 100 owners’ representatives and held a promotion meeting for industry transformation and upgrading, which sounded the assembly number of comprehensive transformation. Internet cafe industry association has organized many owners to study in Shanghai, Changsha and other cities, which has strengthened the confidence of enterprise transformation.