BEIJING, Nov. 11 (Xinhua) -- China's third-party digital goods and service sector has embarked on rapid expansion in recent years, with the market scale up from 230.6 billion yuan in 2014 to 406.5 billion yuan in 2019, according to data from Frost & Sullivan, a California-headquartered research and consulting firm.
The third-party digital goods and service market in China will keep growing at a compound annual growth rate of nine percent in the next five years, predicted by Frost & Sullivan.
The growth could be attributed to the flourishing digital goods industry. The Chinese market of digital offerings, such as e-books, e-vouchers, and virtual currencies in online games, has expanded from 645.6 billion yuan in 2014 to 1.29 trillion yuan in 2019, with a compound annual growth rate of 14.9 percent, showed data from Frost & Sullivan. The consulting firm estimated that the market would continue to grow and hit the size of 2.1 trillion yuan in 2024.
With popularity of mobile payment and other emerging technologies, the consumption scenarios of digital goods have increased rapidly in recent years from traditional e-commerce platforms to payment platforms, various apps and client-end applications developed by financial institutions, outgrowing digital goods providers' own sales channels. Against this backdrop, third-party digital goods and service platforms emerged, to some extend playing the role of distributors to help digital goods providers better connect with clients in diversified consumption scenarios.
China's third-party digital goods and service market is also likely to gain growth impetus from value-added services such as website construction, SaaS-based marketing tools and customized marketing services. Third-party providers are actively exploring based on their accumulated user data and IT capabilities so as to ratchet up income and contribute more to the development of the industrial chain, according to analysts. (Edited by Su Dan with Xinhua Silk Road, sudan@xinhua.org)
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