Here are this week’s news and highlights for China:
Chinese State Broadcaster Loses Viewers, Morale: Spending on online advertising in China this year will total ¥148.3 billion ($24.2 billion) surpassing TV’s ¥119 billion ($19.5 billion) for the first time according to iResearch.
APAC Consumer Survey: How We Like to Shop: 66% of Greater Chinese shoppers prefer to shop in a large shopping mall with at least 50 stores according to a CBRE report. 22% prefer smaller centres and 12% like high street shopping the most. 40% of shoppers in the region consider the overall experience – not just the shops – when choosing a destination. Food and beverage is particularly important.
Digital Dopamine: 71% of Chinese consumers consider it necessary for brands to reward loyal customers, 54% think that loyalty programs are important and 75% consider offers and promotions are key.
Condé Nast Grapples With Rapid Change In China: “China is coming into its own as a major economic and technological power, and that is impacting every aspect of business here with Chinese consumers adapting new technologies at a rapid pace,” says Liz Schimel, President of Condé Nast China. “In particular in the digital arena everything in China is different and the speed of creation and ‘creative destruction’ is like nowhere else in the world.”
China’s Banks Face Disruption: Traditional banks are facing stiff competition from online competitors with lots of data. Chinese consumers hold about 60% of their personal financial assets in bank deposits, versus 12% for US consumers. However, as the internet lowers the minimum threshold for investing while improving financial literacy and convenience, customers are diversifying their portfolios. Almost 80% of banking transactions in China took place online in 2013.
Shanghai FTZ to Allow Chinese Individuals to Invest Overseas: Although specific details are yet to be released, the new Shanghai Free Trade Zone policy is likely to remove regulatory obstacles currently preventing wealthy Chinese from investing in foreign real estate and other assets. The lacklustre domestic property outlook and volatile stock market are driving more investors to diversify overseas. There are 152 billionaires in China according to Forbes.
Baidu Became China’s Largest Android App Distribution Platform in H1 2014: Baidu appears to be winning as China’s app stores consolidate. Baidu, 360 and Tencent now account for more than 70% of the app distribution market.
Chinese Shoppers Choose to Buy British Online: 25% of overseas shoppers buying online from the UK are Chinese according to Paypal research. of the 32% who have purchased from online store internationally in the last 12 months, 45% of online Chinese consumers have bought clothing, footwear or accessories. 38% purchased cosmetics or beauty products, and 31% bought consumer electronics.
McDonald’s Enlists Orcs and Elves in Chinese Food Fight: McDonald’s is hoping to turn around the 23% drop in revenue following July’s food scandal by appealing to the estimated two out of five Chinese who are gamers. Warcraft-themed outlets and virtual item give-aways such as magic turtles tied to the popular online role-playing game have helped quadruple sales of chicken boxes since launching on 24 September.
China Free Trade Deal Boosts Aussie Wine: The current 14%-20% tariffs on Australia wine exports to China will be removed within four years, allowing wine makers to compete on an even footing with tariff-free New Zealand and Chile. Lower duties are expected to soften the blow of the slowdown following the Chinese Government’s clampdown on gifting. Many Chinese believe Australian wine is natural, healthy, powerful and elegant.
Theme Park-Boom in China: New Shanghai Disney Resort Nine Times Larger than Vatican: Pictures and details of Disney’s new mega-theme park in Shanghai have been released, with the castle to be the biggest yet.
Pace of Chinese Enrolments in U.S. Slows: The number of Chinese students enrolled in higher education in the U.S. grew the slowest in seven years this year, but was still a respectable 16.5% up to 275,000, accounting for 25.4% of all international students in America.
Consumers Seeking Protection from Pollution: 40% of urban Chinese consumers bought items designed to protect themselves from the effects of environmental pollution in the past year according to Mintel.
Why The Reign Of China’s Luxury Shoppers Has Just Begun: ‘Bling Dynasty’ Author Erwan Rambourg believes Chinese consumers will make up half of luxury purchases by 2020 due to (1) the immense wave of middle class able to afford the products; (2) the emergence of female luxury consumers; (3) the social and cultural need to stand out and fit in; and (4) Travel – just a small percentage of Mainlanders currently have passports.
How Women’s Bra Sizes Weirdly Correlate To Their Spending Habits: Chinese women who buy larger bras, tend to spend more overall according to Alibaba data.
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