What does the sinking market of the Internet mean?

The sinking market refers to the markets in cities, counties and rural areas below the third line, which are large and scattered and have high service costs. With the continuous improvement of Internet infrastructure in remote areas, the digital divide has been eliminated, and the scale of users in the sinking market has been expanding. Even if the current sinking market is based on the fact that every two people have a mobile device, the combined scale of Internet users exceeds the overall scale of China.

Compared with first-tier cities, users in second, third and even lower-tier cities are more willing to have children, and to some extent, this trend even affects future consumption patterns.

Extended data

Pinduoduo's success stems from its deep cultivation of the sinking market. Before the two e-commerce giants, Ali and JD.COM, responded, they had a sufficiently deep user layout. Pinduoduo's success made many enterprises that didn't realize the importance of sinking the market begin to wake up. A sinking market means a huge consumer group, and most of the people in this group are at the age of very spending power. The huge market potential has attracted countless enterprises to be crazy about it.

The user traffic in the sinking market is increasingly favored by Internet giants. The success of short video in Pinduoduo and Aika Automobile proves the huge traffic value of sinking market. Because of this, Huawei announced that it will cover more than 2,000 counties across the country and follow OV's steps to establish its own sales network in small and medium-sized cities.

Baidu encyclopedia-sinking market