This week’s China market and marketing news:
In 25 Years to 2025, China Will Have Overtaken 56 Nations in Per Capita Income: Between 2000 to 2025, China’s GDP per capita will have increased 8.8 times to rank it 70th in the world, putting it close to joining the richest one-third of nations. It is forecast to have per-capita GDP, adjusted for purchasing power, equal to $25,307 in 2025. That will take it past Argentina. BRIC countries (Brazil, Russia, India and China) could become collectively bigger than the G-7 countries in the 2030s, almost exclusively to China, and to a smaller degree India.
The 14 Sins of Australia: Beijing Expands List of Grievances and Digs in for Extended Diplomatic Dispute: The Chinese embassy in Australia shared a detailed list of 14 grievances that Beijing has against the country, extending far beyond China’s core interests and directly criticising internal Australian affairs. “Our actions are wrongly seen and interpreted by some only through the lens of the strategic competition between China and the United States,” says Australian PM Scott Morrison.
Ten Words that Defined 2020, According to Chinese Internet Users: As this tumultuous year draws to an end, magazine Youth Digest has released a list of words that dominated the Chinese internet. The translations are: 1. Working people; 2. Balance-owed people; 3. Double festival branches; 4. The coming wave; 5. Suster; 6. Professional team; 7. Errand boy/girl; 8. NetEase depression cloud; 9. Virtual construction monitoring; and 10. Going against the flow-sters.
Chinese War Drama Taken Offline Over Fancy Home, Fancy Hairstyles: Chinese television series “Leiting Zhanjiang” (Warrior of Thunder) has been pulled from the Hunan TV network and several video-streaming platforms after being criticised as a departure from historical reality by state media. The show relied on sensational, over-the-top tropes such as out-of-place hairstyles and mansion to appeal to young viewers.
Maximum Penalties to Skyrocket Under China’s New Copyright Law: China will increase the maximum penalty for copyright infringement by a factor of 10 in an effort to deter intellectual property violations. From 1 June 2021, the highest compensation payment for infringement will rise from ¥500K to 5 million ($762,114). At the copyright holder’s request, courts will be able to order the destruction of any “materials, tools or equipment” used for illegally duplicating protected work, and block their entry into “commercial channels.
China Bans Spending by Teens in New Curbs on Livestreaming: China’s media watchdog has ordered that hosts and gift givers on livestreaming platforms register their real names and banned teenagers from gifting altogether, limiting the main revenue source for the multibillion-dollar online industry. Livestreaming platforms now must limit the amount of money a user can give hosts as a tip.
Chinese Premium Brewers and Distillers Toast Return of Nightlife: The July-September quarter has seen the big alcohol players’ growth bounce back after a tough first half with sales in tobacco and alcohol soaring by 17.6% year-on-year in September. Premium labels have been growing the fastest but still present plenty of opportunity for growth. Demand in traditional karaoke bars for Budweiser has not recovered, but sales at restaurants, bars, pubs and lounges are surging. Tmall reports that consumers between 18 and 29 are responsible for half of the spirit sales on its platform. A report by Tencent last year found that consumers aged between 18 and 24 increasingly prefer spirits and whisky.
China’s Top Hotpot Chain Haidilao Accelerates Expansion Even as COVID-19 Pandemic Bites: China’s biggest hotpot chain Haidilao will open more than 400 new restaurants in 2020, exceeding initial estimates by about a third, even as the coronavirus pandemic batters its and the sector’s profits. The company had initially planned to open around 300 restaurants in 2020, versus 308 new openings in 2019. Meanwhile, another hot pot restaurant is in hot water for refusing to serve male customers.
Here’s why China is going to boom: China produces domestic beef, but not of the same quality as foreign beef; and so China depends on imports to meet the ever-growing demand for premium beef protein. This year, China accounts for 36% of all world meat trade and the quantity is up 26% from last year – helped by the reduced supply of pork from the African Swine Flu. The pork crisis has contributed to Beyond Meat’s launching of Beyond Pork, developed specifically for Chinese consumers in mind.
McCafé Poised for Major Expansion in China: McDonald’s China will invest ¥2.5 billion yuan ($368 million) over the next three years to upgrade the McCafé sub-brand with 4,000 outlets in the domestic market. It will fully leverage existing McDonald’s dining outlets, delivery network, supply chain capabilities and digital channels to build a strong presence in the booming coffee market. China’s coffee market is forecast to grow 15% a year to ¥217 billion ($33 billion) by 2025.
L’Oreal China CEO on Innovating Consumer Experiences on 11.11: L’Oréal was the first cosmetics group to hit ¥1 billion ($151 million) sales on Alibaba’s platforms on Singles’ Day. The brand saw 11.11 as a way to connect and engage with millions of consumers coming online, preparing a lot of surprises and innovations. This included launching new, limited edition products. More than ever, during Covid, consumers have been questioning what and why they are buying, so L’Oreal has had to be even more educational when it comes to our products and innovations.
In Shenzhen, World’s Largest Electronics Market Receives a Cosmetics Makeover: Shenzhen’s Huaqiangbei is home to dozens of multi-storey malls housing about 38,000 businesses once famous for smartphone ripoffs, microchip reels and other components. With changing demographics, consumer preferences and regulations, some markets had 50% vacancy rates by 2016. The area has evolved to gentrified “experience centres” selling genuine 5G handsets, and a strong showing of cosmetics retailers servicing “great demand for beauty products, whether it’s teenagers, women or men in their 60s and 70s.” The beauty business took off this year when border closures halted the flow of traders going to Hong Kong and picking up tax-free goods for resale.
China’s Xi Jinping is Pushing for a Global Covid QR Code. He May Struggle to Convince the World: Chinese President Xi Jinping is pushing for a global Covid-19 tracking system using QR codes. The program would track health certificates based on nucleic acid test results, to help fast-track international travel and business during the coronavirus pandemic. Speaking at the virtual G20 leaders’ meeting on Saturday, Xi said that to ensure the “smooth functioning” of the world economy during the pandemic, countries needed to coordinate a uniform set of policies and standards.
Chinese City Investigates Burning Tap Water: A viral video showing flammable water spurting from a sink has prompted the northeastern city of Panjin to inspect the cause. After a customer complained to their local water supplier in the summer, staff said it was likely because they had recently upgraded their water quality, and there was nothing they could do beyond offering a ¥100 ($15) discount to the family’s water bill.