Mark Tanner
Mark Tanner
27 June 2018 0 Comments

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

Consumers,  Chinese Consumers

Chinese Consumers Most Willing to Trade Privacy for Convenience: 94% of Chinese consumers are likely to let businesses share or reuse their personal data – the highest rate in an APAC survey by Experian and IDC. By comparison, 60% of New Zealanders said they would make the same concessions. 56% of Chinese respondents said they were willing to give their personal data to banks, telecom providers, and retailers if doing so would help detect fraud.

5 Surprising Facts on the Consumption Habits of China’s Post-00s Generation: In 2018, the first of China’s 147 million citizens born after the year 2000 reached adulthood. A new report by Tencent and CDC found 5 interesting characteristics: 1. They admire people and brands that are dedicated and faithful; 2. They don’t consume beyond their capability; 3. They care less about Key Opinion Leaders; 4. They use content as a social lubricant; and 5. They see no difference between home-grown and foreign brands.

Confessions of an Internal Migrant to Shenzhen: An interesting and interactive study into China’s migrants, including this fictional white collar migrant to Shenzhen, a city where two-thirds of the population are migrants and 32% work in the tech industry. Urban migrants spend significantly more than rural migrants on food, clothing, transport, entertainment and adult education, whereas they spend less on gifts and healthcare.

Online: Digital China

8 Lessons from the Rise of Douyin (Tik Tok): Douyin’s daily active users reached 150 million on June 12, 2018, quadrupling since January. The average user spends 20.5 minutes per day on the app, watching an estimated 82 short videos with Douyin-dishes becoming commonly accepted menu items across some of China’s biggest chains. This is remarkable growth for an app that is less than two years old. Dance, comedy, babies, life hacks, food, pets, pranks, and stunts are the most popular content types. It is one of the few Chinese apps that is hugely popular both inside and outside of China – in the first quarter of 2018, Douyin’s international version Tik Tok was the most downloaded iPhone app worldwide, totalling 45.8 million.

Alibaba v. Tencent: The Battle for Supremacy in China: How China’s starkly different tech gorillas mutually respect one and other but in reality are archenemies in China and beyond. Investments hint some of their plans with both companies making 21 retail mergers and acquisitions each in 2017. Between January and May this year, Alibaba made 13 AI/Big data investments and Tencent made nine.

Banking & Finance

Internet Lending is Booming in China: The balance of online consumer loans in China has grown about fivefold between 2015 and 2017, reaching ¥350 billion ($54.6 billion). Consumers between 24-35 accounted for more than 70% of consumer borrowers in China. Firms like Alibaba, Tencent and JD are offering seamless and convenient credit where borrowers don’t even need to enter personal details as the platforms already have shopper information and spending data. On Taobao, shoppers can choose their method of payment as soon as they select a product, paying a lump sum or three instalments, for example.

The Carefree China Millennials Who Prefer to Spend than Save: Profiles of the Moonlight Clan: Millennials who’ve enjoyed family support and not experienced tough times like old generations are spending a large share of their incomes on fashion, cosmetics, socialising, dining out and travel. “But I don’t think saving is a good way to make me happy, so I won’t pressure myself. If I like something and I can afford it, I will buy it – that’s it,” says one of the Moonlight clan.

Premium Food & Beverage

Ele.Me Drone Set to Heat Up Competition in Chinese Food Delivery Market: Alibaba’s food delivery platform Ele.me has recently received a license to deliver food using fleet of drones along 17 newly approved delivery routes in Shanghai’s JinShan Industrial Park area. Automation covers 70% of the delivery route, with two delivery personnel taking charge to load the takeaway onto the drone and unpack and deliver to the customer’s front door. Humans would only need to cover 15% of its routes, in turn lowering the operating costs and increasing speed in traffic-clogged cities.

Overseas Chinese Tourists

Sports Tourism Gains Popularity Among Chinese: Survey: 79.3% of Chinese respondents have taken part in sports tourism according to a survey conducted by China Youth Daily. Those surveyed said hiking (51.2%), mountain climbing (51%) and cycling (41.1%) are their favourite sports. They also mentioned other sports including rafting (20.7%), skiing (16.6%), rock climbing (16.2%) and ice-skating (13.6%).

Video & Entertainment

China Film: Quota? What Quota?: Since 2012, 34 foreign films have been officially allowed into China per year, with the proviso that at least 14 of them be in either 3D or IMAX format. Yet “buyout” foreign films have been parallel imported in to China, traditionally bought for a flat amount but increasingly with profit sharing as competition gets more fierce.

Health & Beauty

New Cosmetics Boom as China Eases Mandatory Animal Testing: Finally! Cruelty Free International signed an agreement with Chinese authorities last Friday that will allow foreign cosmetics companies to sell their products in China under a pilot program without having to undergo animal testing on their products.

Chinese Consumers are “All-In on Naturals”: A survey of 3,000 respondents in China, the US and UK found 69% of Chinese consumers are willing to pay a premium for a completely natural product versus the 52% average across the three countries.

Premium and Luxury

Are Chinese Ecommerce Platforms Ready for a Luxury Update?: Chinese account for 32% of the world luxury market, with the average age of Chinese luxury shoppers having dropped from 35 to 25 [the timeframe isn’t given], according to the World Luxury Association. Online luxury shopping used to be associated with discounts, but “instead of going online looking at prices, customers are focusing on whether they can buy the hot ‘it’ piece and how fast they can get their hands on it,” and therefore are seeking the wider choice available online according to Tmall.

Mr. Bags x Longchamp: How to Make 5 Million RMB in Just Two Hours: Longchamp worked with KOL Mr. Bags to design Year of the Dog capsules – this is the first time he has designed a full collection, and the first time Longchamp has worked with a Chinese blogger in this capacity. The timing also worked well, just before the Lunar New Year. The social media strategy involved quite different content on WeChat and Weibo and other social platforms, with WeChat having more written material about the collection and Weibo having more high-quality pictures.

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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