The Internet cafe industry, which was once popular, has fallen into a “flood of bankruptcy” and closed 6,487 stores in half a year

2020/09/2110:04:05 technology 2820

Wen: Ye Xiao

In 1996, the first computer room "Wigate" was born in Shanghai, laying the foundation for the prosperity of the Internet cafe industry. Around 2000, with the launch of Tencent’s OICQ service and the advent of a series of well-known game IPs such as CS and Warcraft, the Internet cafe industry officially began to rise.

The Internet cafe industry, which was once popular, has fallen into a “flood of bankruptcy” and closed 6,487 stores in half a year - DayDayNews

At that time, there were very few people equipped with computers in their homes, and Internet cafes became the only way most people could access the Internet. "If you want to be rich, open an Internet cafe", this sentence was not an exaggeration at the time. Those who can get the business license will open stores to attract customers; even if they can't get the business license, many people will take the risk. All kinds of black Internet cafes are ploughing in the alleys, inducing people to come and consume.

However, today, the once-popular Internet cafe industry has fallen into a tide of bankruptcies. According to data, in the first half of this year alone, 6,487 Internet cafe-related companies across the country were revoked or cancelled, and 1,557 newly registered, a net decrease of 4,930, and the industry as a whole declined. Among them, February was the month with the least number of Internet cafe companies registering, with only 43 registered nationwide. In just 20 years, Internet cafes have gone from their peak to decline, and finally ushered in a "wave of bankruptcy". What is the reason behind it?

The Internet cafe industry, which was once popular, has fallen into a “flood of bankruptcy” and closed 6,487 stores in half a year - DayDayNews

The "Black Swan Incident" affects

as the Chinese New Year approaches. Just after many Internet cafe owners posted the sign of "See you again in the next year, see or leave", how many people could think that this short goodbye ended up being Farewell. In the current epidemic situation, all walks of life have suspended work and production, and entertainment venues with high crowds such as Internet cafes naturally cannot operate normally. It wasn't until the second half of this year that entertainment venues were able to resume operations, and they could only limit current operations. The closure of business for nearly half a year has already overwhelmed many Internet cafe owners; current limiting operations are also unable to support the operating costs of Internet cafes, resulting in a large number of Internet cafes eventually falling under the epidemic.

The Internet cafe industry, which was once popular, has fallen into a “flood of bankruptcy” and closed 6,487 stores in half a year - DayDayNews

The impact of mobile Internet

In the early days of the Internet, Internet cafes developed rapidly, and when the Internet became more mature, Internet cafes gradually declined. With the rise of home computers, broadband home access, and mobile Internet terminals, it is difficult for Internet cafes to attract a large number of consumers as they did in the past. Consumer groups continue to move abroad, leading to the overall decline of the industry.

The Internet cafe industry, which was once popular, has fallen into a “flood of bankruptcy” and closed 6,487 stores in half a year - DayDayNews

has high operating costs

In order to make their own Internet cafes stand out in the market, many bosses spend a lot of money on decoration and other "packaging expenses". The location is often chosen in high-traffic places such as university towns, and the rent is expensive. In addition, the frequency of computer replacement is also accelerating, and the cost of computers is also increasing. Like chickens that have been on fire in recent years, due to the high configuration requirements, most Internet cafes choose to replace the configuration in order to meet the needs of consumers. But now, the enthusiasm for eating chicken has disappeared, the Internet cafe industry as a whole is down, business is not good, and many bosses have not even recovered the cost of updating the configuration.

The Internet cafe industry, which was once popular, has fallen into a “flood of bankruptcy” and closed 6,487 stores in half a year - DayDayNews

Difficulty in transition and high competitive pressure

Since 2014, many Internet cafes have begun to transform to higher-end Internet cafes and e-sports stadiums. Although compared with Internet cafes, these transformed industries can provide consumers with more services such as catering, but the essence is still the Internet service. For many consumers, it is just a change of name. What an essential difference.

At the same time, with the development of the times, the number of social entertainment venues such as escape rooms, board game halls, and party halls has increased, and offline entertainment scenes have become more diverse and refined. Internet cafes are facing more and more serious diversion problems, and their market share has increased. Narrowed down.

The Internet cafe industry, which was once popular, has fallen into a “flood of bankruptcy” and closed 6,487 stores in half a year - DayDayNews

is precisely because of this. Since entering the second half of the year, there has been more and more product information about "Internet cafes closed" on second-hand platforms. Computers that used to cost a few thousand yuan can only be sold at a low price of one to two thousand yuan; tables, chairs, sofas, etc. are also sold directly, and even presented with the machine.

According to data, since 2015, the number of registrations of Internet cafes across the country has been declining for 4 consecutive years. Among them, 4,667 new registrations were added in 2019, which was the lowest number of new registrations in the past 10 years, but it was revoked and cancelled in the same year. The number is as high as 14,773, which is 3.3 times the number of registrations. The decline of the Internet cafe industry has become a general trend, and the epidemic is only an accelerator of decline. For Internet cafe owners, how to get rid of online services, attract consumers with more hot spots, expand offline entertainment scenes, and achieve true transformation is a problem that urgently needs to be transformed.

The Internet cafe industry, which was once popular, has fallen into a “flood of bankruptcy” and closed 6,487 stores in half a year - DayDayNews

However, although Internet cafes are ushering in a wave of "closures", many parents are "applauding." From the current point of view, the mainstream consumer group of Internet cafes is still students. In the opinion of many parents, it is games and Internet cafes that have harmed their children. It is better for these industries to disappear.

This article was originally produced by Bufan Think Tank. Please do not reprint it on any channel or platform without permission. Offenders must be investigated.

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