Mark Tanner
Mark Tanner
12 July 2017 0 Comments

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

Overall Health & Beauty

Nars Make-Up Boycotted, After Cosmetics Tested on Animals in China: Beauty brand Nars has had to explain itself to shoppers after it introduced animal testing in China on its make-up, causing many customers to publicly boycott its products on social media. China had an estimated $50 billion in domestic sales of beauty products in 2015 and the market is growing.

Consumers,  Chinese Consumers

Li: China’s Growing Economy Records Major Reforms: Addressing the opening ceremony of the Summer Davos Forum in Dalian, prime minister Li Keqiang announced China would further open up to foreign companies expanding market access in the service and manufacturing sectors, relaxing restrictions on foreign ownership, and treating domestic and foreign companies on an equal basis.

Well Educated, Single Women in their Late 20s are Called “Leftover Women” in China: “Leftover Women” or “Sheng Nu” refers to single women at or beyond the socially-recognized marriageable age of around 27. Among people born in the 1980s, unmarried men outnumber women 136:100, however in cities, there are more unmarried women than single men. In Shanghai, for example, the number of unmarried men is only a quarter of the number of unmarried women, most of whom are between 30 and 35 years old.

China KOLs are ‘a True Media Vehicle’: China’s key opinion leader economy is forecast to top ¥100 billion next year – double 2016’s figure – as brands flock to influencers to promote their products. Luxury watchmaker Jaeger-LeCoultre is reported to have paid at least ¥5 million ($731,000) to run a campaign with girl-next-door vlogger Papi Jiang which saw brand awareness more than double.

What Makes Shoppers Pick Bricks Over Clicks?: 69% of Chinese consumers claim they stay longer in a store with a nice atmosphere through music, digital signage and scent according to Mood Media. 86% like hearing music while shopping in store. 85% of shoppers would like smartphone promotions they can redeem in store.

Online: Digital China

WeChat Pay is Now Coming for Overseas Vendors: Overseas businesses can apply online for WeChat Pay payment services, with processing taking 7 to 15 working days.

At Alibaba, Artificial Intelligence is Changing how People Shop Online: Alibaba is implementing less visible forms of AI to improve its shopping experience including smart product searches and recommendations, smart customer service, pervasive personalisation, smart supply chain and smart logistics.

4 Things that Make the China VR Market Unique: There are distinct differences between the VR industries in China and the West that will shape the development of both markets, with China’s unique traits including mobile VR adoption, pay-for-play, enterprise focus and advertising experiences.

50% of WeChat Accounts are Losing Followers: 39% of Official WeChat accounts experienced a decline in readership versus 28% who saw an increase according to Newrank. 51% saw an increase in follower numbers.

Premium Food & Beverage

Chinese Wine Market: Shift in Consumption: Wine Intelligent’s 12 trends for China’s evolving wine market: 1. Expansion; 2. Acceleration of personal consumption versus for the benefits of others; 3. Younger and diversifying drinkers; 4. Flavour becoming a driver of wine choice; 5. Strong growth for fruit-driven, lower tannin styled red wines; 6. Potential for aromatic white wines; 7. Growth in sparking wines, particularly sweeter; 8. Regional preference variances; 9. Continued shift to online purchasing; 10. Normalisation of retail prices; 11. Broader availability on trade; and 12. Increasing acceptance of screw tops.

Overseas Chinese Tourists

TripAdvisor Collaborates to Sate Chinese Retail Therapy: TripAdvisor is hoping to appeal to the 56% more Chinese page views to its Thailand pages last year by offering shopper information including discounts and other promotions, floor maps, brand directories and curated shopping guides for Bangkok, designed with free, independent travellers in mind.

Chinese sport Sports

Adidas Builds a Chinese Empire: Adidas is working closely with China’s education ministry, promising to provide training for 50,000 Chinese sports teachers, who will then teach soccer skills in more than 20,000 schools, to 20 million youngsters in total. Adidas’s Chinese revenues jumped 30% last year to around $3.4 billion, and in Q1 this year, Adidas overtook Nike to lead sales in the fashion segment. Adidas’s operating margins in China are around 35.2% – almost six times its margin in North America. Adidas has 10,000 stores in 1,200 Chinese cities.

Autos and Cars

Survey Finds Regional Flavour to Consumer Tech Tastes: German consumers surveyed would pay almost 50% more than Chinese consumers for sunroof-moonroof technology in cars and Americans were prepared to spend almost double for rare-seat entertainment than Chinese according to IHS Markit. Remote vehicle control from a smartphone was the most popular feature, with 39% indicating it was the most important feature to them.

China’s Electric Cars Are Actually Pretty Dirty: A recent study by Chinese engineers estimated that electric vehicles generate an estimated 50% increase in both greenhouse gas emissions and total energy consumption over their life cycle. Last week China-owned Volvo become the first major manufacturer committing all introduced models being either electric or hybrid by 2019. More than 5 million are expected to be on the road in China by 2020.

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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