Mark Tanner
Mark Tanner
24 May 2017 0 Comments

Here are this week’s news and highlights for China:

Consumers,  Chinese Consumers

How to Capture the Millennial Market: Go Bush: China’s millennials continue to earn more than their older counterparts causing a stark change in buying behaviour, creating opportunities for many export industries including those from regional areas.

China Craves Foreign Goods. Students in Australia Supply Them: As many as eight in 10 of the 136,000+ Chinese students in Australia are involved in “Daigou” businesses in some form, reports the New York Times.

Online: Digital China

Three Ways Alibaba and Tencent Are Courting Consumers and Marketers: Alibaba’s revenue for Q1 2017 jumped 60% to $5.6 billion symbolising how Chinese consumers just keep spending more. Online sales were up 32% and total retail sales rose 10.2% in the first four months of the year with Alibaba and Tencent capturing an ever-larger share through clever use of their assets.

Infographic: Tencent’s Super-Apps in 2017 Q1: Tencent has another epic quarter with 55% growth in revenue from a year ago. What’s driving the growth?

Chinese Ecommerce Boom — Bigger than US, UK Combined: Last year Chinese consumers spent about $750 billion online, more US and UK consumers combined. China’s ecommerce sales are growing around three times faster too. Chinese consumers spend about 30 minutes each day on Taobao, about three times as long as the average American spends online shopping.

A New Search Engine from WeChat Could Change China’s Internet: WeChat just became even more relevant for brands to create articles and encourage advocacy.  A search tool has been embedded that displays results with recent news related to the search term, followed by mentions made by one’s friends.

Premium Food & Beverage

Food & Beverage Trends in China, Part 1: Food and Snack Products: The big trends from China’s irresistibly huge food & beverage trade show SIAL. How things have changed from last year.

The Amount China Spends Eating Out is Greater than the GDP of Sweden: Chinese consumers spent ¥3.5 trillon ($507 billion) eating out in 2016 according to research by Dianping and Meituan. That’s more than the GDP of Sweden, Nigeria, Thailand and all but 22 countries on the planet. Hot pot accounted for 22% of the restaurant market share.

Starbucks China Thrives with WeChat Partnership: WeChat Pay now accounts for 29% of all Starbucks transactions in China having launched just six months earlier. Since launching their social gifting in February, over 1.2 million gifts have been sent with just over half redeemed. Same-store sales grew 7% and transactions grew 6% last quarter. On a similar note, mobile payments account for 45% of sales in McDonalds’ 2,400 restaurants in China.

Online Market of China’s FMCG Industry is Booming: China’s sales of FMCG online grew 75% between 2010-2015, versus 24.6% in Southeast Asia and 4.8%-10.7% in the US, Hong Kong, UK and Japan according to OC&C. China’s online FMCG market is much more fragmented with Taobao and Tmall accounting for around 50% of the market, versus 70-80% overall. 18-23 year olds make up a much higher percentage of online food shoppers indexed against the category overall, with 24-29 and 42-50 the next highest.

Yum China Revs Up Takeout Business With Acquisition of Sherpa’s: Yum China who operate KFC, Pizza Hut and Taco Bell, have acquired a controlling interest in the Sherpa’s high end restaurant delivery service, marking another step in Yum China’s strategy to accelerate growth through digital and delivery by building know-how and expertise in this growing segment.

Australian Olive Oil Producers use QR Codes to Reassure Chinese of Authenticity: Australian Authentic olive oil is being sold directly to consumers via a network and social marketing process, where consumers can scan a label on the bottle to confirm its authenticity and meet the producer via a personalised video. The brand has the ability to see where every QR code is scanned and flag if a particular QR code is scanned too many times indicating possible counterfeits.

Banking & Payments

Your Mobile Money: Surviving A Day In China Without Cash Or Cards: The phenomenal multi-trillion dollar world of smartphone payments in China.

Parents and Baby

Organic Products ‘Driving Growth’ in Chinese Infant Formula: 75% of Chinese mothers feed their babies organic infant formula according to Mintel, with the highest percentage mothers aged 25-34. Half of mothers choose organic infant formula because they are willing to pay more for their baby’s food, which is also driving niche products such as goat milk infant formula. Nearly 60% of Chinese mothers think that products from Australia or New Zealand are better than those from other milk sources, while less than a fifth associate Chinese milk with a premium image.

Overseas Chinese Tourists

Airbnb’s China Challenge: Difficult Guests: One of Airbnb’s biggest cultural challenges replicating their success in China is that locals are reluctant to open their homes to strangers, particularly their own countrymen. Guests sometimes have expectations that hosts can’t meet such as being on call to carry elderly up stairs in wheelchairs [paywall].

That’s the Skinny for the week! See previous newsletters hereContact China Skinny for marketing strategy, research and digital advice and implementation.

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