Pareto improvement is an economic term.
It describes a situation where implementation of a policy or introduction of a new one does not make anyone in system worse, but makes at least one of them better.
We believe that emergence of smaller programs is a kind of Pareto improvement.
The advent of smaller programs has made company's B-side better.
Part B enterprises can be divided into small and medium enterprises and large enterprises.
When a small business transforms into mobile internet and digital economy, it always faces challenge of being too expensive.
Mobile Internet provides marketing solutions including app development, e-commerce and self-hosted media, none of which are cheap. Taking app development as an example, cost of developing an app that meets online requirements of app store and becomes second-rate or higher will cost at least 500,000 yuan. Small and micro enterprises can only be at a respectful distance, and small and medium-sized enterprises will also be a little “crushed”.
The emergence of small programs has greatly reduced cost of digital transformation for small and medium enterprises and is a cheap mobile Internet solution.
In a mobile Internet environment, small and medium-sized enterprises still face challenge of how to connect with existing customers of large manufacturers? For example, Alipay and WeChat, which have hundreds of millions of users, how can SMEs contact them?
The small program solves this problem by incorporating small and medium enterprises into existing users and realizing connection between users and small programs.
Let's go back to big business.
Big companies are very rich. They have ability to develop applications and access mobile Internet. However, they also have a mess - investments in IT seem to have turned into a bottomless abyss, only money is coming, but there is no money.
Why is this happening?
In our opinion, this is due to fact that investments of large enterprises in IT and financing of mobile Internet form a "black hole" or "island".
For example: a brand like McDonald's. Allowing them to enter mobile web is not as easy as developing an application. What else do you need? Mobile order management systems, takeaway delivery systems, mobile logistics systems, workforce management systems, open access systems, etc. are also required, and various IT systems may not be able to be connected. And each system requires promotion, training and operation. You might think how much investment is required behind this.
Mini-programs are also targeted at large enterprises. With small programs, large enterprises can quickly mobilize operations time, and IT operation and management costs are significantly reduced, smoothing out black holes and islands between different IT solutions.
The advent of smaller programs has made C-side clients better.
This point needs no further explanation. For mobile usersphone traffic, time and process required to install an application are becoming more and more complicated than finding and opening a small program.
In this way, use of applets is more convenient and efficient for C end users. Of course, there have been problems with lack of a good app experience in mini-program before, such as problems with slow opening and freezing. With increase in investment of WeChat and Alipay in mini-programs and popularity of 5G websites, I believe that these problems will not be a problem.
The advent of small programs has made giants like WeChat and Alipay better.
For statistics, in 2018, more than half of 120 million new Taobao users were not Taobao, but Alipay, and more than half of new users attracted by Alipay were small programs.
In other words, mini-programs have become "champions" in attracting new traffic to main platforms.
This is easy to understand. Although e-commerce has become popular, there are still more than 100 million users who have not used Taobao but use Alipay and WeChat, so they use Alipay and WeChat mini programs when they do not use Taobao mobile phones. This has undoubtedly expanded number of Alipay and WeChat users.
In short, advent of small programs has led to a win-win situation. Therefore, development of small programs should be included in the schedule.
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