Without making use of any physical stores, China's smart phone maker Xiaomi has gone from zero to 10 billion USD through online sales alone in just three years.

 

With no advertisement, traditional food seller Huangtaiji amassed over 100,000 followers on Weibo, or Chinese version of Twitter, while achieving one million CNY (162,000 USD) of monthly sales in less than two years.

 

Their business modes and subsequent success were unimaginable a decade ago. But since China has become the world's No. 1 in terms of its 618 million Internet users, or nearly 46 percent of total population, an increasing number of enterprises like Huangtaiji are embracing new ways of doing business.

 

Huangtaiji sells "jianbing", a traditional Chinese pancake made on the spot and a popular take-away. In 2012 its first small, clean and Wi-Fi-equipped store opened in east Beijing's CBD, winning popularity among young white-collar workers who like to share food photos and recommendations online.

 

Marketing campaigns promoted He Chang, 33, as a well-educated young man with overseas education background, love for traditional food and ambition to start a new Chinese-style food brand, which is believed to have helped win more support.

 

Smart phone maker Xiaomi also focuses on understanding consumers' demands in product development via online interaction, having opened an online community where Xiaomi users' recommendations can be heard by the company's research and development personnel.

 

Internet has also pushed Chinese firms to change its sales and management structures in order to reach consumers more directly.

 

Home appliance manufacturer Haier has discarded its pyramidal structure by dividing 80,000 staff into 2,000 independent units which directly dock with users, according to Zhao Dawei, author of "Swordsmanship of Internet Thinking."

 

All changes in sales channels, marketing and corporate structure are meant to make the enterprises more consumer-centred, which is more possible in the Internet era, according to Zhao. 

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