Here are this week’s news and highlights for China:
Splashing Out: Chinese Lunar New Year Spending Bucks Growth Slowdown: Transactions made on Unionpay during the Feb 7-13 ‘Golden Week’ holiday were up 31% compared to last year. Retailers and catering firms’ revenue grew 11.2% – ahead of 2015’s overall retail growth of 10.7%. Tourism revenue over the festival period grew 16.3% from 2015.
China’s Malls Trying to get Smarter Amid Slowdown: China’s shopping centres are hoping to draw more consumers by using online-to-offline platforms to engage shoppers and merchants, with one mall in Hangzhou capturing the equivalent of 20% of all visitors – about 200,000 shoppers – on its platform. Shopping malls account for just 10% of consumer spending in China versus more than 50% in the US.
Is This The Recipe For Starbucks’ Continued Success In China?: What have Starbucks done right in China, where so many others have failed?
Is Starbucks Sowing The Seeds Of Its Own Demise In China?: Will Starbucks’ fairy tale run continue in China, or are cracks starting to show?
People are Illegally Buying these ‘Thumb Monkeys’ for $4,500: The new “It pet” for China’s wealthy is a fitting one for year of the monkey — the pygmy marmoset. The world’s smallest monkey comes from the Western Amazonian rainforests and measures 14cm-16cm. It is illegal to sell them in China.
This is Why Alibaba Thinks China’s Economy is Going to be Just Fine: Online sales are leading China’s transition into a consumption-based economy. They accounted for 10.6% of retail spending in China in 2014, growing to 12.9% in 2015.
PayPal Research Shows 2015 Was the Year of Haitao: 35% of Chinese online shoppers bought goods from overseas in 2015 with 41% of buying them on mobile. 47% go directly to websites they have used in the past and 45% to sites that they know the web address. 43% look for foreign websites when they know there will be promotions such as Black Friday. Top concerns are counterfeit goods (38%), difficult return process (37%) and poor support (35%).
China Luxury Hotel Users Insight in 2015: 91.5% of Chinese who stayed in luxury hotels booked online last year. 58.7% booked using a PC, 32.8% used a mobile device, 1.9% via a call centre and 1.4% at a hotel reception. Official hotel websites accounted for 14.1% of bookings.
Chinese Consumers buy Nearly Half of World’s Luxury Products: Over 120 million Chinese travelled abroad last year, collectively spending $183 billion. More than 60% of that was spent on buying luxury goods according to Fortune Character Group. Chinese now account for 46% of global luxury sales.
Adidas in China: Chasing First: A decade ago, Adidas was 4th placed in China. With sales growing 18% in the first 9-months of 2015, it is closing in on the top position through initiatives such as 15 “modules” based on key growth categories, city-specific analysis and propositions, and understanding who is buying online and why.
Four Insights From Vogue China: Fashion brands in China should account for four things: 1. The power of Millennials; 2. Changing preferences; 3. Growing confidence; and 4. The need for a collective voice.
China’s Music Listening Habits Revealed: More than 977 million Chinese – 72% of the population – listen to music every week (versus 91% in the US and 85.5% in the UK), averaging over two hours a day. Affluent Chinese consumers are more likely to enjoy music, with 83% listening weekly and 57% attending concerts. Their preference is for Western or English-language music, with pop, rock and jazz genres being the most popular.
Profits Tumble at Jaguar Land Rover: Sales of Jaguar Land Rover dropped 10% in China in the last quarter of 2015 as buyers mature. Consumers aren’t willing to pay as much for a car they know has been built locally as an imported one, and are becoming more open to buying second-hand cars.
Large Number Of Chinese EV Sales Fake, Investigators Say: News of soaring Electric Vehicle sales last year which helped China become the largest market in the world, may have been exaggerated by more than 50% as sales were faked to take advantage of subsidies up to $8,400 per car and $46,000 for a single electric bus.