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"China's audiovisual market is growing rapidly. But now many video platforms are becoming more and more similar to one another which makes them more challenging to user numbers and advertising revenue," said Wei Pengju, director of the Institute of Cultural Economics at the Central University of Finance and Economics in Beijing. Companies in the audiovisual sector are certainly aware of the challenges and are actively seeking solutions. The Xigua video app now targets the new mid-sized video sector to win more users.

"China used to have comparative advantages in developing labor-intensive industries with its abundant and cheap labor to export goods to the international market and benefit from globalization," he said.

"Chinese companies are attaching more importance to enhancing the competitiveness of their products by increasing their efforts in technology research and development," said Xu.

"China's smartphone market is huge, and although it has fallen for two consecutive years, it still accounts for about 30 percent of the global market. In such a big market, there are many niche users, who will satisfy the survival of the niche brand itself," said Jia Mo, an analyst from global market research company Canalys.

"Chinese students used to learn English through reading passages and practicing grammar. We want to innovate this learning mode by establishing this brand-new system," said Yin Xu, a head responsible for the primary school products of Xueersi English.