Based on the article on the "Matrix Venture Capital" public account, the following summary is made.

The first question is, what structural changes did the Internet industry undergo during the epidemic?

Executives from Tencent, Pinduoduo, and Alibaba all mentioned one thing, which is that the epidemic has accelerated the integration of online and offline.

Online channels for enterprises are indispensable. Tencent President Liu Chiping said that the epidemic has brought about a major cognitive change, that is, many people realize that a company and organization must have its own online presence.

For example, although the offline retail industry has been greatly affected by the epidemic, during this epidemic, they realized one thing, that is, who can , whoever directly connects with consumers online can gain opportunities for growth.

Live streaming brings new meaning. Pinduoduo’s Huang Zheng also shared an interesting detail. The form of live broadcast not only allows manufacturers to establish direct contact with consumers, Huang Zheng said, but also broadens the consumer categories that can be sold online. Such as high-end jewelry such as pearls and jade, and live seafood such as Argentine lobster.

The epidemic has increased the number of shopping groups. For example, the elderly, who were previously insulators of online shopping, have also begun shopping online.

As for the second question, you must be curious. When faced with changes, some people will be happy and some will be sad. So which industries will face serious challenges?

In this article by Matrix Partners, the answer given by major companies such as Tencent, Pinduoduo, and JD.com is the advertising industry.

Advertising is an important revenue pillar for the Internet industry. Affected by the epidemic, advertisers' income has decreased, which has led to their marketing budgets being cut again and again. For example, Xu Lei, CEO of JD.com, said that in the first quarter of 2020, China’s entire advertising market experienced negative growth.

The third question is, are there any business sectors that will bring new growth opportunities to Internet companies?

First of all, online consumption of daily necessities has increased.

Alibaba’s CFO Wu Wei said that in the first quarter of 2020, Tmall’s online physical consumption transaction volume increased by more than 10%. You know, Ali's own forecast was originally not optimistic, and it was thought that negative growth might occur.

So what drove this 10% growth? Wu Wei said that because consumers began to cook at home and upgrade household appliances and 3C products, these two categories grew by 25% year-on-year on the Tmall platform; fresh food, food, and fast-moving consumer goods grew by 40%. On the other hand, Non-essential items such as clothing, home decoration, and auto parts have experienced negative growth.

JD.com also observed a similar phenomenon. At the same time, Xu Lei, CEO of JD.com, said that during the epidemic, a large number of factories engaged in foreign trade switched to domestic sales. This may be a new opportunity for e-commerce platforms, especially for sinking markets.

Secondly, gaming as a pastime has given new meaning and fulfilled people’s social needs.

James Gordon Mitchell, chief strategy officer of Tencent, said that at an individual level, people will be more inclined to spend more time in games with team collaboration. Because people are isolated at home, they will miss their colleagues and friends more and want to socialize with them. The simplest and most effective way is to play games together. You must still remember what we said before. Students from MIT rebuilt a campus in the game "Minecraft", which is actually a manifestation of social needs.