Mark Tanner
13 April 2016 0 Comments

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

Consumers,  Chinese Consumers

Brandz Top-100 Most Valuable Chinese Brands: China’s 100 most valuable brands grew 13% in the last year according to WPP’s BrandZ tally. Market-driven brands accounted for over half of the value of the top-100 brands, surpassing SOEs for the first time. Brands that are innovative and unique grew eight times faster than their rivals.

Millennial Entrepreneurs Lead the Way: 44% of Mainland Chinese business owners with a net worth of between $250,000 and $20 million are aged under 35, versus 30% globally according to an HSBC survey. Women account for 47% of the Millennial entrepreneurs globally.

Made for China: When Disneyland opens in Shanghai this June, more than half of the 7,000 merchandise items will be specifically designed for Chinese consumers. One consistent theme of the products are the ‘3 Cs’ – colour, cartoon and cute. Colours will be very brightly toned, the cartoon characters will be distinctive, and most importantly, they’ll be cute.

Chinese Girls Queue all Weekend to Touch a Mailbox: Girls in Shanghai queued until 3am to touch, hug and hold a postbox after Chinese-born K-Pop sensation, Lu Han, posted a Weibo selfie touching it.

Premium Food & Beverage

China’s Government Orders Inquiry into Sale of Counterfeit Baby Milk Formula: Shanghai authorities arrested six people over 17,000 tins of counterfeit baby formula. It will be a long time before Chinese consumers trust baby products that touch local supply chains.

How China Is Becoming The World’s Largest Market For Healthy Eating: 87% of Chinese drink plant protein drinks such as soybean drinks, juices or grain drinks according to Mintel. Consumption of coconut water grew by 30% over the last year.

McDonald’s Plans to Add More Than 1,000 Restaurants in China: McDonalds plans to add 1,300 restaurants to its current 2,200 outlets over the next five years. Although Chinese consumers are increasingly health-conscious and sceptical of fast food, the company is betting on population growth and urbanization rates to propel sales. In mid-March, KFC’s parent company Yum! Brands announced it would be launching Taco Bell in China this year.

Overall Health

Food Regulator Shuts Down Popular Herbal Supplement Maker: The China Food and Drug Administration has ordered a company making nutritional supplements using a rare fungus to stop manufacturing after an investigation found that their products contained four to seven times more arsenic than allowed by law. One gram of the caterpillar fungus stems costs over ¥370 ($57) in the retail market.

One in Three of World’s Adults With Diabetes is in China: Diabetes rates in China have risen from less than 1% in 1980 to 9.4% in 2014 – more than double the world’s growth rate. Soaring rates are due to sedentary lifestyles, unhealthy diets, population growth and ageing. An estimated 129.3 million Chinese have diabetes, with rates now higher in China than the US.

Clinique Taps Mobile Throwback Favourite to Engage Chinese Consumers: Clinique has brought back the Nokia 90s classic game Snake on WeChat, where followers are invited to play the addictive game, with the added twist of getting rid of dark spots to promote their Clinical Dark Spot Corrector & Optimizer.

Online: Digital China

Alibaba’s Near-Monopoly in China’s E-Commerce: A short infographic illustrating some of Alibaba’s staggering numbers.

‘Arrogance’ Why Western Tech Firms Fail in China: Top VC: “The reason that most Western companies fail in China is because of their own doing. It’s got nothing to do with the Chinese government or regulation, it’s a whole series of Western imperial arrogance that brings about the downfall of many of these companies in China,” says Michael Moritz, chairman of Sequoia Capital.

Overseas Chinese Tourists

Shangri-La Hotel’s view on the Future of Content Marketing in China: Shangri-La’s heavy presence in China has forced it to produce content for Chinese consumers more rapidly as demand is fierce and technology advances faster than in other regions.

Paris Named Top Luxury Shopping Destination for Chinese Consumers: Paris ranked first, followed by Hong Kong and Tokyo as the destination Chinese expected to make a luxury purchase in the next 12 months according to a BCG survey. In reality, Paris suffered a drop in shopping from Chinese tourists following the November terrorist attacks according to Global Blue. Chinese tourists spent $39.8 billion on luxury goods in Europe in 2015, $15.9 billion in the US, $14.8 billion in HK, $14.8 billion in the Middle East and $2.3 billion in Macau.

Here’s How Alibaba Is Keeping Its Users Hooked To Alipay: Alipay’s launch in Europe will not only allow Chinese travellers to pay for things there, the app will also automatically recognize the location of a user and recommend restaurants and tourist attractions and give shopping info.

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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