A little over seven years ago, our fledging little marketing agency wrote its first Weekly Skinny. The topics of the day were common myths about Chinese consumers, the importance of female consumers, food scandals, fakes and 300 million+ users on Weibo. On the surface, the subject matters weren’t too different from those today. Yet open the hood and you see a Chinese consumer, national swagger and marketing landscape that is almost unrecognisable from 2012.
The level of consumer sophistication has changed dramatically. In those days, you could just put a foreign product on the shelf and many shoppers would think it was incredible. No self-respecting consumer would be seen dead with a Chinese smartphone (they now account for almost 90% of smartphones sold) or Chinese brands across a slew of categories. KFC was the pin up kid for foreign brands, managing to balance its ‘aspirational’ foreignness with thoughtful localisation. If Chinese wanted to do the pilgrimage to the source in Kentucky, getting a visa for travel to Western countries was very difficult for travellers outside of tier 1 cities, and many within. Over the seven years, the number of outbound trips has almost doubled.
Over seven years, 130 million people – more than Japan’s total population – have moved from the countryside to cities, although a third of cities are shrinking. The average wage has grown almost 75%, and with it, a willingness to make discretionary purchases. There are around 150 million new passenger cars on the road and 125% more kilometres (29,000km in total) of fast train tracks. The Beijing-Shanghai connection has carried over 100 million passengers/year on average over that time.
One of the most obvious changes on the street is the ever-present smartphone. In 2012, just 288 million Chinese sported a smartphone. By the end of 2018, it was around 785 million. Online shoppers have increased from 242 million to 610 million last year, with their share of total retail growing from 5.3% to 25%. Gone are the wads of 100 kuai notes stuffed under the mattress, with mobile payments, and increasingly facial payments seeing the endangerment of legal tender. Mobile payments in China are now estimated to be over 100 times the size of the US.
That’s China speed for you. They say China years are like dog years – what happens in seven years in some countries, takes a year in China. Based on that, we should be celebrating 50 years of the Skinny sometime in September.
Writing the Skinny every week has forced us to keep up with the macro and micro trends in China. It’s enabled us to see through the hype and often-dubious data and understand the constant changes in this market, something which is incorporated into every project we do. To mark seven years of the Skinny, we thought it would be fitting to share 7 Trends that are impacting Chinese Consumers today. Here they are.
One last note, any recent history of marketing in China would be amiss without including WeChat, which had around 150 million users when the Weekly Skinny was first published. It has now become a big part Chinese consumers’ lives. There’s no better way to learn about marketing on the super app than the China Chat conference in Shanghai this September. China Skinny’s Mark Tanner will be joining the esteemed lineup of speakers. More information here. Go to Page 2 to see this week’s China news and highlights.