Real economy are mostly stimulate by the free market and the international trade.
Real economy such as real estate, energy resource, cars, furniture, and foods. Most of these real products are created by people who born between 1960s' and 1969. They are usually the generation of our parents. They created those company and product in order to make our life better.
For those real economy, they usually choose the pricing method which add some amount of money on the cost or they choose to price as a percentage.
Now the market of real economy is almost saturation.
Fictitious economy is caused by the breakthrough of internet. The internet bring us a totally new market for us. Many entrepreneurs who born between 1970-1989 army to this market. Apple,Amazon, google, Yahoo, Facebook eBay, Instagram and YouTube, those are all created by entrepreneurs who born between 1970-1989.
In this new market, there are a lot of entrepreneurs success. They are also trying to overturn those old business model from real economy. I want to use a Chinese sell-phone company as an example.
Usually, in the real economy market, the factory need to sell its product to wholesalers or middle man, and then the wholesalers or middle man sell its products to retailers and then retailers sells the products to consumers. But within the internet breakthrough, things begin to change.
XiaoMi is a Chinese sell-phone company. It choose its method that zero channel fee, zero marketing fee, zero storage fee. It used its lowest price to earn the consumers. It makes its phone's price unlimited close to its cost. This is much different with the old structure business model.
Now, this internet market is about half saturation.
So, what should we do in the future as a entrepreneurs who born around 1990-1999? AI!
AI will change the market just like the internet did to the real economy. There will be totally new baby market for us to explore. AI will overturn all the business format which existing today.
For example, the Speech Recognition skill can change our world. When someone say something to a machine, it will recognize it. After merely recognizing the words, it can also translate English to Chinese. If one day each one of us have this machine, we will destroy the language class market because no one need to learn other language anymore. Maybe in the future, some language test such as TOEFL will be cancel. Everyone can go to other countries without any language problem. A Chinese business man can easily talk to an American business man without learning any English.
AI is the market for us to explore. Guys, be ready!
Posted By: zhenzhou wang
Thursday, January 4th 2018 at 7:38PM
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