Mark Tanner
Mark Tanner
16 August 2017 0 Comments

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

Consumers,  Chinese Consumers

Chinese People Have Lots of Faith in China, But Not So Much In Their Fellow Chinese: 87% of Chinese believe their country is heading in the right track – 10 percentage points above second placed India and 40 above the global average. Unemployment, financial/political corruption and poverty & social inequality are the three most worrying topics for Chinese. 47% of Chinese respondents ranked ‘moral decline’ as one of their top-three greatest concerns – the highest of any country.

China’s Consumer Confidence Index Reaches New High: China’s Consumer Confidence Index reached 112 points from April to June, the highest score since the fourth quarter in 2013 according to Nielsen.

Sir Don McKinnon: We’re Facing Stiff Competition with China: New Zealand’s former Deputy Prime Minister, Foreign Minister and Secretary-General of the Commonwealth of Nations shares some polarizing stats about the relative importance of China to its trading partners. Although New Zealand-centric, it applies to many nations.

Online: Digital China

Chinese Brands Hold 48% Smartphone Market Share Globally: Chinese smartphone brands marked a record 48% market share worldwide with India, South Asia and Africa remaining as key focus geographies according to Counterpoint. Xiaomi (60%), Vivo (45%), Oppo (33%) and Huawei (20%) were the fastest growing brands with increasing overseas smartphone shipments.

Xiaomi Scales Pinnacle in Wearables: Xiaomi has leapfrogged Apple Inc to be the world’s largest wearable product manufacturer shipping 3.7 million wearable devices in the second quarter, up 23% year-on-year.

UN Human Rights Watchdog Sends Apple Letter Over China VPN Demands: David Kaye, a human rights expert at the UN, sent a letter to Apple asking if they took into consideration the “international instruments such as the UN Guiding Principles on Business and Human Rights or the Global Network Initiative’s Principles on Freedom of Expression” to protect the rights of Chinese consumers, following their removal of more than 400 VPN apps from their Chinese App store.

Premium Food & Beverage

Chinese State Firms Get a Taste for McDonald’s as Big Mac Starts to Lose its Symbolic Power: McDonalds has completed a deal which will see CITC take a controlling stake of McDonalds’ operations in China, effectively making it a state-owned company. US-based McDonalds will retain just a 20% stake in the business in a fall from the glory days that followed its launch in 1990. Following the deal, McDonalds announced plans to increase its Chinese restaurants from 2,500 to 4,500 within five years. 45% will be in Tier 3 and 4 cities with 75% providing takeout and delivery services.

Stout Beer Surges in China, Eclipsing American Market: Chinese drinkers are projected to consume 264 million litres of stout beer this year – more than ten times the volume 5 years ago. Consumption is expected to grow to 658.7 million litres by 2021 according to Euromonitor.

Overseas Chinese Tourists

Alibaba, Marriott ink JV in Major Play for China Travel Market: Marriott and Alibaba’s travel arm Fliggy have announced a JV that they hope will make global travel easier through planning, booking, paying and managing trips and activities through Alibaba’s tech solutions, offering personalised and VIP experiences, Alipay and ‘Next-Gen loyalty’. Similarly, Qantas has signed a strategic relationship with Fliggy, which will see it open a booking page on the platform.

Overall Health

Toiletries Maker Lion to Release Exclusive Goods for Alibaba: Japanese toiletries brand Lion will produce Japan-themed premium toothpaste exclusively for Alibaba, in what is believed to be the first such deal for a Japanese company.

Designers and Fashion

China’s Designers Want to Tell the Fashion Story Without Bamboo and Pandas: In China’s $300 billion fashion industry, the proportion of Chinese shoppers favouring local brands has more than doubled to 46% from 22% two years ago, driven mainly by younger consumers. Yet most Chinese apparel brands are still suffering from an uncompetitive marketing strategy and appealing product design, as well as lacking a clear focus on their target customers, compared to their foreign peers who have dominated the top spots in the mainland China market.

Video and Entertainment

Top 10 Box Offices Movies in Chinese Market in H1: China’s film industry grew 11.2% on the same time last year from January to June, with just three of the top-10 grossing films either locally made or co-produced with Chinese film makers. Meanwhile the black-out of foreign movies during the popular summer period has helped Chinese film Wolf Warrior 2 smash Chinese box office records grossing $571 million in two weeks.

Chinese sport Sports

Adidas China’s Republic of Sports event attracts more than 92m live streams: More than 92 million people have live streamed events from Adidas’ Republic of Sports activation event which takes place in a custom-built sports facility, showcasing football, basketball, running, training and outdoor through a program of live events. The campaign has helped to recruit 400,000 new members to the brand’s adiClub program.

Liverpool 0-1 Copycats: How Chinese Fake Goods are Beating the Real Thing: Liverpool FC has cut the cost of its latest shirt from $87 to $30, in an attempt to convince Chinese consumers to buy its official merchandise over the fake ones. While the low-cost shirt may look similar to the official jersey, it is redesigned with simpler materials and is not made by the club’s official sponsor, New Balance.

Premium and Luxury

A Luxury Watchmaker Says It’s A Mistake to Adapt to China’s Market — No Matter How Big the Demand: “If people like Patek Philippe, it’s because they like the design and the philosophy of the brand. If you start to adapt yourself to every market, you are going to lose that,” said the owner of the 178-year-old luxury watch brand whose timepieces sell for between $22,135 and $94,464 at Tourneau in New York.

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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