Mark Tanner
Mark Tanner
25 November 2015 0 Comments

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

Consumers,  Chinese Consumers

Buzzwords: Global China: Chinese citizens’ national identity, their perception of the world around them and where international brands are all relevant for foreign brands selling in China.  Here are some things to look out for.

No More Tiers: Chinese consumption is forecast to surge from $3.7 trillion in 2014 to $6.4 trillion in 2025, with 27% of the population accounting for 80% of the growth in spending. More than half of new spenders will come from the top-5 city segmentations.

Wal-Mart’s Asia CEO: China Will Drive Retail Growth: “We think online-to-offline is critical,” says Asia CEO and president Scott Price, as “customers look for convenience, and convenience is not just one mode.”

Chinese sport Sports

Li Ruigang’s China Media Capital To Pay $1.3 Billion For Soccer League Broadcast Rights: State-backed investment firm China Media Capital has signed a five year all-media exclusive global broadcast rights of Chinese Super League for $1.3 billion. The league sold its broadcast rights for $13 million for 2015 and $8 million in 2014.

Schooling and Education

Number of Mainland College Students in US Exceeds 300,000 for First Time: Chinese mainland students in the U.S. grew 10.8% in the past year, with the 304,040 students accounting for 31.2% of all international students in the country.

Online: Internet, Mobiles, & Social Media

Why Have QR Codes Taken Off in China?: After largely failing in the West, the mass adoption of WeChat and its embedded QR reader means any brand worth its salt uses QR codes in China.

Are Chinese Tech Companies Innovative?: In 2014, China spent $200 billion on research and development and more than 1.2 million engineers graduated – more than any other country, meaning the country has “the potential to become a global innovation leader.”

Online vs. Offline: Where Do Chinese Consumers Really Win?: The average online prices for consumer goods in China are 8% lower than their offline prices when there are no sales promotions.

Premium Food & Beverage

Chinese Sea Salt May Contain Small Plastic Particles, Study Says: Sea salt samples from 15 supermarket brands in China have high levels of plastic particles, with more than 550 plastic particles for every kilogram according to an East China Normal University study.

China Wine Imports Rebound in 2015: Bottled wine imports to China rose by 38.7% in volume and 34.7% in value to $1.4 billion for the first nine months of 2015, driven by French, Australian and Spanish wine according to Chinese customs data. Australian wines were the standout performer, growing 59% in volume and 16% in price per bottle, with total value now more than half of French wine.

Will Belvita Win at Breakfast in China?: Mondelez has taken its breakfast biscuit concept to China in a bid to capture growing demand for “modern eating habits” in the mornings. Biscuits for snacking are already one of the most popular foreign categories in Chinese supermarkets and online stores, with Britain’s digestives selling increasingly well in China.

Xi Pub Visit Prompts Newfound Interest in British IPA: Photos of China’s president enjoying a pint of British beer in an Oxfordshire pub have sparked a “frenzy” for British Ale, with one publican reporting patrons just asking for “what Xi Dada (President Xi) drank.”

Premium and Luxury

Vuitton Looks to Close Chinese Shops Amid Luxury Slowdown: LV is reviewing eight stores in second-tier cities. While some may be moved or refurbished, others will close to “avoid being overexposed” as market dynamics change and more Chinese shop abroad.

Banking, Property

Chinese Nationals are Buying Multi-Million Dollar US Homes Using the Country’s Most Popular Instant Messaging App: Houses as far afield as NYC worth as much as $14 million are being snapped up by Mainlanders who have only ever seen the house on WeChat.

Autos and Cars

Lower-End Demand to Further Underpin China SUV Sales: China’s SUV sales volume grew by 48.0% year-on-year in the first ten months of 2015, while the overall passenger vehicles growth was 3.8%, down from 9.9% in 2014. SUVs accounted for around 21% of China passenger vehicle sales volume in 2014 and 29% in the first ten months of 2015.

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

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