After all, as McKinsey titled its China consumer report 2021 – Understanding Chinese Consumers: Growth Engine of the World, China is the world’s growth engine, and savvy Western brands are determined to be part of its success story!

1. Digitisation is bigger than ever

Covid has accelerated digital adoption in China, not only in B2C markets but also B2B processes and markets. Before the pandemic, China led the way in digital B2C with 45% of the world’s total e-commerce transactions and a mobile payments penetration rate 300% greater than the US. However, this looks set to grow further. For example, McKinsey found that 55% of Chinese customers will continue to buy groceries online and Nike experienced a 30% year on year digital sales growth after it launched its app-based home workouts.

2. Greater domestic trade

China’s global exposure has been declining over the past couple of years, particularly as Chinese-US tensions grew under President Trump, and as its domestic markets became incredibly strong and perfectly able to meet consumer demand. However, this isn’t to say that global brands will find themselves made irrelevant by home-grown Chinese competition. The burgeoning Chinese middle classes are still clamouring for luxury, heritage and desirable Western brands and with the Chinese economy set to grow in 2021, sales are expected to strengthen in this already powerful market.

3. Competitiveness is set to grow

China is already heavily competitive, but this degree of competitiveness is expected to grow. Smaller brands who have not invested in the right digital infrastructure – or who are not prepared to invest in a way that allows them to compete in the increasingly online world are likely to find that their sales erode. Large parts of the Western economy are expected to rocket back into action in 2021 – in Britain, for example, the Chancellor has described the economy as a coiled-up spring, waiting for lockdown restrictions to end to begin full and open trade once again. This means that businesses operating in China are likely to be strategising hard and preparing to invest in their e-commerce and digital channels to grab and secure a slice of their target Chinese market. Be prepared to move fast, and move hard in the fight for Chinese consumer spend!

4. Chinese consumers are maturing

The young and affluent generation in China has grown up without experiencing a domestic economic downturn of any kind. Now, the experience of Covid is encouraging them to spend more wisely, to save more and to choose better quality products that support their health and wellbeing. Again, this offers an excellent opportunity to Western brands which can exemplify these attributes and quality in their product offerings. For example, McKinsey found that 70% of younger Chinese customers are expecting to actively seek out eco-friendly, safe and healthy products – and to spend where these quality attributes are evident.

5. Private and social sectors are considering their impact

A number of big Chinese brands, such as WeChat and AliPay, played a crucial role in supporting the government’s efforts to control Covid by supporting a QR code health app rollout. The Bill & Melinda Gates Foundation notably donated millions in aid to support efforts to tackle the virus and its effects on poor communities across the world. Savvy brands in China are waking up to the fact that social marketing is big business and that educated customers want to patronise brands which are sustainable and which make a positive impact in the world. From supporting charities and eco-friendly initiatives to developing products which tackle carbon emissions, Western brands should consider how they integrate these social benefits into their marketing and their overall business plans, to make a difference – as well as a profit.

6. Chinese customers are ready to spend!

Research by McKinsey has also found that Chinese customers are feeling buoyed by the way that the country handled the pandemic, and are now feeling confident, optimistic and, above all else, ready to spend! After living through lifestyle restrictions and often onerous lockdowns, these consumers are ready to enjoy and appreciate life once again. This means that they want to treat themselves, to pursue interests and passions, to upgrade their lifestyles and to enjoy the best of things.

Western brands in sectors such as beauty, homecare, wellness, interior decor, fitness, lifestyle and – hopefully as the year progresses – travel, will find themselves extremely well placed to benefit from this surge forwards to a restored marketplace. Those in education are also likely to find a fresh spike in enquiries from prospective students looking to pursue their ambitions once again. Importantly, too, Chinese customers look ready to engage with new brands once again, especially as supply chains begin to operate freely again, and as delays and supply projects begin to resolve.

Marketing your brand in the post-Covid world

At Market Me China, we can feel the optimism of the Chinese markets, and we see how Chinese customers are spending freely once again. Our clients are launching back into strategy planning and delivery mode in response, with fresh campaigns, improved digital assets and a determination to capture lucrative segments of their target Chinese markets. The time to act is now, with Western brands already working hard to capture Chinese customers and to build brand recognition and loyalty using highly-effective, omnichannel digital strategies with the power to convert leads to sales.

Contact us

The digital marketing team at Market Me China is here to help you achieve success in the Chinese market, with a highly experienced and skilled digital marketing team that blends together native Chinese and Western marketers into a highly impactful, results-focused team. We work according to each client’s needs and evidence our value at every turn. To find out more about how we might assist you, please contact our friendly and helpful team today for a no-obligation chat.

The post How has Covid changed the Chinese market? appeared first on Market Me China®.

Knowing how online usage, and the markets it created, changed in China over the course of 2013 helps you to prepare for this year. Collecting a wide range of information regarding your target market helps you to create a strong foundation for your marketing, and the best place to start is with the general state of the market as a whole.

Here is an overview of how the digital market in China stood at the end of 2013.

Internet Users in China

The number of Chinese internet users between the end of 2012 and the end of 2013 grew by 58 million. This means that as of December 2013, China had 618 million internet users. The internet penetration rate has risen 3.7 per cent to 45.8 per cent.

With the development of mobile technology (see below), desktop and laptop computer internet usage has continued to decline. Internet access via desktop computers fell to 69.7 per cent, a drop of 0.8 per cent, while for laptops the figure was 44.1 per cent, down 1.8 per cent (source: The Next Web).

Mobile Internet Usage

Mobile internet is one of the biggest driving forces in internet expansion in China. China has over half a billion mobile internet users, and the proportion of internet users going online using their mobile phone was 81 per cent at the end of 2013, rising from 74.5 per cent at the end of the previous year.

Easier and quicker internet access, thanks to the popularisation of 3G networks and wireless technology has played a large role in the growth of mobile internet. The number of internet users who had used their phone to watch or download a video by the end of 2013 had increased by 83.8 per cent upon the figure 12 months prior (source: China Internet Network Information Center).

Chinese Social Media Usage

The top social networks in China at the end of 2013 were WeChat, Tencent Weibo, and Sina Weibo, with 600 million, 580 million, and 556 million users respectively.

Instant messaging is the most popular online activity in China at 86 per cent. There were more than 532 million unique users of instant messaging by the end of 2013, which could be linked to the popularity of mobile internet (source: Social Media Today).

E-Commerce in China

By the end of 2013, China became the leading country in the world for B2C and C2C online purchase. Mobile internet has made online shopping more popular, with 55 per cent of Chinese internet users in 2013 having made a mobile payment. Both the largest e-commerce platforms in China are owned by Alibaba, who report that transactions for its Ebay-like Taobao were 67 seconds quicker when made using mobile payment than on a desktop computer (source: KPMG International).

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Market Me China delivers 125,000 views on Visit Britain video campaign

Market Me China are pleased to have partnered with Be On to promote the latest Visit Britain campaign in the lucrative but strategically difficult Chinese market. Market Me China placed the Sounds of Great Britain video on a prominent position of a Chinese website with a large audience, then drove traffic from Beijing and Shanghai to deliver the target 125,000 views in March 2014.

China has been an historically difficult market to enter for Western companies, and a new region for Be On. Market Me China, with their technical and cultural knowledge of China and its marketing channels were the obvious choice in helping Be On deliver their key objectives for the Visit Britain campaign.

With its population of over half a billion internet users, and a culture that highly values Western goods, China presents a promising market for ambitious global companies. Tough information laws, different customs, and a strongly hierarchical society combine to make China a challenging market to enter without the right knowledge and skills. The failure of big players including eBay, Amazon, Yahoo! and MSN to successfully perform in the Chinese market (source: The Guardian) have demonstrated the need for specialised local knowledge of Chinese consumers and their culture.

Be On is a division of AOL Platforms, specialising in the production and syndication of branded video content for premium clients. They work in markets across the world, alongside 40,000 publishers and 16 verticals (source: Be On). China is a relatively new market for Be On, and they were finding it tough to get the visibility and engagement they required for their initial clients. China is a key market for Be On, and so they were keen to find a way of succeeding, getting the return on investment for their clients that they knew was possible.

Market Me China is a one stop shop for marketing in China. They provide a full spectrum of marketing services to companies across the globe wanting to break into the difficult yet lucrative Chinese market. Learning of Be On’s needs and KPIs, which were to deliver 125,000 views for the Visit Britain campaign targeted at Beijing and Shanghai by 31/03/2014, they were able to use their expertise and cultural knowledge to propose a solution.

The campaign started from 14/03/2014. Market Me China’s solution was to place the Sounds of Great Britain video on the homepage of a Chinese language website with a large audience. They then employed their technical marketing skills to drive extra traffic from Beijing and Shanghai to the website, increasing the number of playbacks. Within two weeks, they had delivered the required KPIs on 29/03/2014, including 125,000 views on the Sounds of Great Britain video.

“Market Me China have been able to provide Be On, a division of AOL Platforms, a strong distribution opportunity throughout the Chinese market,” said Claire Bloxham, International Director Publisher for Be On (a division of AOL Platforms). “We found delivery even and consistent throughout our initial campaigns and are delighted to be able to move forward with a strong provider. With MMC being based in the UK, this makes our business communication extremely efficient when targeting this tough market.”

The success of the partnership between Be On and Market Me China proves the value of understanding foreign markets. Be On succeeded where other companies have failed because they did not assume the same rules and ideas applied to marketing in China as in other regions. By hiring professionals with targeted knowledge of the marketplace in Market Me China, Be On ensured that it met its targets and delivered the value its clients expect of them.

Market Me China helps companies across the globe to benefit from China’s:

– Fast-growing internet population, currently standing at 618million internet users (source: CNNIC)
– 44% internet penetration rate (source: We Are Social)
– A new internet user every 1.6 seconds (source: Go Globe)
– Estimated 597million active social media users (Source: Tech In Asia)
– 3.2billion social media accounts (source: Tech In Asia)

The number of campaigns Be On runs in China will increase over the year as new relationships develop. This presents a great opportunity for Be On and Market Me China to grow together and continue to develop their partnership.

Fenghua Mo (Sammi), Director & Founder of Market Me China Limited, said, “We are very delighted to work with Be On to promote the video campaigns in China for the premium clients. Claire Bloxham is a pro-active, detail-oriented and client-focused International Publisher Director who always understands the importance of delivering the KPIs for Be On’s clients and tries her best to find viable solutions for them. As China is a difficult market to reach, we are pleased that Be On chose Market Me China to help break into this vast market. We are looking forward to working with Be On on further projects.”

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We’ve put together five key facts you need to know about the Chinese demand for luxury items.

1. It’s big, and growing

The value of ecommerce in China this year is set to reach $296billion. Of this huge market, it is estimated that online luxury sales in China will be worth $27billion.

And it’s not going to stop there. Since 2011, the online luxury market in China has seen a 71 per cent increase in value. It is estimated that by 2015 the online luxury market in China will still be growing by 24 per cent per year. Clearly there is plenty of room for Western businesses looking to expand into this potential market.

 2. It’s men

China is bucking the trend when it comes to online shopping, with men making up 55 per cent of China’s online luxury shoppers. In 2010, Chinese men spent nearly three times more than women on luxury goods – a total of $1.1billion. Men in China also spend more on particular goods, such as fragrances and watches. In the luxury bag market, men account for 45 per cent, a huge difference when compared to men in the US, who account for just 7 per cent of the country’s luxury bag market.

3. Credit card users are on the rise

285 million credit cards were issued in China in 2011, and credit card sales reached 7.75trillion yuan: a year on year rise of 48 per cent. It is estimated by Mastercard that there will be 900million credit cards in use in China by 2020. This, combined with the rising wealth of the middle classes, can only be good for the luxury market in China.

4. Chinese consumers are more willing to make big ticket purchases

70 per cent of online shoppers in China are willing to try buying luxury products online. Not only are Chinese consumers willing to buy, there are willing to buy big. In just 90 minutes, online shopping mall Jingdong sold 300 Smart cars. For those with the cash to spend, you can even buy yourself a Lamborghini. Clearly, China is a great place to be for luxury businesses.

5. It is still based on the values of Chinese consumers

While people in China may value overseas goods and big brands, they are still influenced by their cultural heritage. Trust is a big part of Chinese culture, and consumers are more willing to buy from brands who can demonstrate their heritage. Social recommendation plays a huge role as well, which is why many big brands are investing heavily in social strategies.

(Data sources: www.mckinsey.com, www.legalweek.com,www.funggroup.com, www.chinadaily.com.cn, www.techinasia.com)

(Image source: “Lamborghini Gallardo On Display” | www.freedigitalphotos.net)

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Bottega Veneta is a brand that has not only made a move into China, but they have made a successful move into China, delivering fashion, culture and art. This is one Italian brand that places a strong marketing emphasis on their Italian heritage and craftsmanship but what we love is the way they do it both online and offline inside of China. 

Bottega Veneta – Soaring Male Engagement 

Bottega Veneta ensures that they share all and any type of news related to the brand on their Weibo channel. From new store openings, to exhibitions inside of China or simply a preview of their new collection. They also make sure to post images of their products, whether it is the new collection, the new advertising campaign or a collaborative collection. One fact that we found interesting at Fashionbi was the comparison between a post dedicated to the latest Autumn/Winter mens series, and the Autumn/Winter women’s series. The men’s post was a photo featuring men’s accessories that generated 35 reposts and 9 comments. The image of the autumn/winter women’s series was filled with small accessories including leather gloves that generated less engagement with 23 reposts and 3 comments. But thanks to the power behind Fashionbi, we were able to see that the overall engagement from Men increased by 14% to bring the engagement of men to 50% during the month of August. Half of the engagement! The women’s engagement dropped by 10%, to a total of 50%. In this case it is a helpful hint for the brand to understand that their current engaging fans on Weibo are an even split between half female and half male. It is important for the brand to note that although this may not be the case in other parts of the world, in China the story is different. The Weibo strategy should not focus on only female handbags but it should equally promote and acknowledge both sexes. Which it seems they are already mastering, as one post was dedicated to their new Winter series of bags, but it was a collection of large leather bags, that are suitable for a long weekend trip for both genders. Another post that appeals strongly to both sexes, was a post on their classic intrecciato woven leather stationery that is a perfect gift or home decor piece. The post proved that the Chinese consumers, are not only looking for fashion products, but for the home decor side of Bottega, as the post generated 29 reposts and 14 comments.

Art Exhibitions and Fashion

So it’s not all just about fashion? This is a brand that is telling their story inside of China. Bottega Veneta opened a global concept store dedicated to showcasing the work of the new generation of artists and photographers. The aim is to build a cultural awareness around the brand and to support the commitment of young artists and lastly for consumers to experience a complete shopping experience and to really experience the brand’s heritage. The exhibition opened at the Rock Bund in Shanghai and it was promoted via Weibo. Thanks to Fashionbi Weibo Analytics we were able to see that 30% of follower’s engagement was coming from Shanghai. One post dedicated to the concept store/exhibition generated 145,440 audience reach and one of the most popular user hashtags was Art Exhibition in the Chinese language. The Chinese consumers are hungry for more and looking for the experience that brand’s like Bottega Veneta are delivering with an Art Exhibition, the Yifeng Art Exhibition.

Product Placement

Weibo can be a great source of feedback from Chinese consumers. Bottega Veneta’s autumn/winter collection features a new color of the season, safran amber and they made sure to place images of this new color directly onto their Weibo page. And the reaction? The two combined posts averaged an almost 80 reposts and over 22 comments. We love the color and believe it is stunning combined with the beauty of the intrecciato weaving technique. That’s not all, we have one last tip for luxury brands that are looking to strategize their next move on the Weibo network, always ensure that a user can view your Weibo page clearly from a mobile device. It is super important that photos load properly on mobile devices, because thanks to Fashionbi we analyzed that 45% of engagers on Bottega Veneta’s Weibo page were coming from an iPhone.

Bottega Veneta has seen their sales rapidly rising inside of China, and their unique marketing approach and communication strategy is certainly one that has not showed disappointment. The brand is seeking a clear understanding of the Chinese consumer and connecting with that consumer to create more than just a shopping experience, but an emotional connection with the consumer.

Are you considering Weibo marketing for your business?

Contact Market Me China to learn about this new and exciting marketing channel. 

Contribution by Courtney Gerring, Digital PR at Fashionbi. Fashionbi is is the world leader in Business Intelligence for the Fashion industry. Fashionbi empowers fashion marketers to make smart decisions. Fashionbi is the first and only worldwide fashion brands database and a passionate team of international analysts, helping you connect the dots behind the big data and guiding you to optimize the marketing efforts.

The post Bottega Veneta’s Positioning on Weibo appeared first on Market Me China®.

Search trends

About 454 million internet users search the internet in China per month, followed by 452 million users who watch online videos,  439 million users who are active on online community, 413 million users who are interested in news and information, 404.4 million users enjoying eCommerce.

The major purposes of using search engines are to locate information related to work or studies, personal interests, latest news, software downloads, information related to lifestyles (food, clothing etc), online shopping, offline shopping, foreign travel or search for people and friends.

How to attract your Chinese target audience by using search engine marketing?
Why not contact us to have a chat?

Take a look at Go Globe infographic “Search engine usage in China – Statistics and Trends” to know the latest search engine usage and the search behaviour of Chinese internet users.

Infographic by- GO-Globe.com

(Image source: “Research” | www.freedigitalphotos.net)

The post What are the major Search Engines in China – Statistics and Trends appeared first on Market Me China®.

Interesting facts of internet users in China

Internet usage in China is growing: in 2012, a new internet user was added to the China internet population every 1.6 seconds.

74.5% of Chinese internet users access the internet via a mobile device, 70.6% via a desktop computer, 45.9% via a notebook.

Chinese internet users are spending more time online (20.5 hours per week as compared to 18.7 hours in 2011). 54% of Chinese Internet population is less than 30 years old and only 6.2% is older than 50 years.

Thanks to Go Globe for the following infographic – “Internet Usage in China – Statistics and Trends”.

Infographic by- GO-Globe.com

(Image source: “Www around world” | www.freedigitalphotos.net)

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How can you test if your site is fully accessible in China?
Here at Market Me China, we use WebSitePulse to test for accessibility behind the Great Firewall of China. Using this system you can not only test if your site is viewable in China but also in which cities as well as you may find that your site can be accessed in one city but not another!

With a simple status result of ‘OK’ or ‘Failed to connect’, you can learn if Chinese internet users can view your site or not.

Let’s do some tests.

1. Facebook

We selected Shanghai, China to test Facebook’s website, find out the test results below.

As we all know, Facebook is banned in China. There is no doubt the Status is “Failed to connect”.

2. Twitter

Twitter is blocked by the Great Firewall of China as well. We selected Shanghai to test Twitter’s website, therefore the Status is “Failed to connect”.

3. YouTube

We selected Beijing and Guangzhou to test YouTube’s website, the test results are exactly the same, see below.

4. Market Me China

Now it is time to test our own website, we will be proud to say we are accessible through the Great Firewall of China.

5. Your website

Click here to test your website, just simply enter your website’s URL.

 (Image source: “Brick Wall Shows Chalenges Ahead And Brickwall” | www.freedigitalphotos.net)

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Two Hayle-based entrepreneurs have launched a one-stop-shop to support small businesses into exporting to China.

Market Me China is the brainchild of Mo Fenghua, who offers marketing services focused upon connecting small and medium sized enterprises with business connections in the Far East.

Tapping into the technical skills of her web designer and developer husband Darren Stevens, Ms Mo has already attracted international queries from businesses seeking a route into China and its burgeoning consumer market.

Market Me China’s aim is to help western companies expand their business into China’s market and a country with more than half a billion internet users.

It offers China search engine optimisation, pay per click advertising, social media marketing, web design, branding, Chinese translation and copywriting as well as customer liaison and support, and Chinese language and culture training.

Ms Mo has a background in China-based online marketing and is also search engine optimisation trained by Netconcepts, the top SEO company in China.

Over the past few months, she has been establishing links within Cornwall’s business community, attending networking events and also drawing on start-up support and advice from Outset Cornwall.

“We have already had international enquiries,” said Ms Mo, who was born and raised in Guangzhou in southern China.

“It doesn’t matter where businesses are based, as long as they are looking at the Chinese market. Clients can sell products or services – for instance one company is a business that supports people to apply for a Green Card; another has apartments to let in New York.”

Closer to home, Market Me China has worked for Roddas, to translate their marketing material and look at how the brand will target Chinese consumers.

“It’s very important to understand Chinese consumers,” says Ms Mo. “Not everyone is familiar with Western foods, but if you tell them it’s a famous brand, they will give it a go.”

Market Me China aims to have secured a portfolio of 20 international small and medium sized business clients within the next 12 months.

The company says its tailor-made strategies and links with China-based marketing professionals will save business from having to find different agencies for different needs.

“Market Me China provides a unique experience for the client, who can learn more about the culture, understand how online marketing works in China but also have us as liaison support to overcome any language barriers,” adds Ms Mo.

“We are confident that with this combination we can help clients reach their business goals in one of the world’s largest economies.”

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What are attributes of internet users in China?

1. Demographic：Young internet users in China

The average age of Chinese internet user is approximately 25. The young generation are more active on the internet than older generations.

CNNIC revealed, the percentage of internet users between age of 20 and 29 by the end of 2012 is the highest which is 30.4%, age of 30-39 is 25.3% and age of 10-19 is 24.0%, while older age groups of 40-49 is 12.4% and age of 50-59 is 4.4%. Please consider the age group of Chinese internet users for your target audience.

2. Internet Access Device: Mobile use is increasing rapidly

CNNIC reported China has 422 million mobile internet users, 74.5% among all the internet users. It over passes the desktop which has 70.6% of users. Please consider adapting your website for mobile internet users to explore your products and services as this user group will only continue to rise.

3. Privacy: Using nicknames online

How many names do you have on the internet? For me, I usually use my real name on the Western websites, however I have been using more than 6 nicknames on Chinese websites. Chinese internet users tend to use nicknames rather than their real names online, though there are a number of real name social media sites, such as Renren and Pengyou that require real name use. When dealing with your Chinese online shoppers, you can use a common name to refer to them, which is “Qin (TSin)” that means “My dear” in Mandarin Chinese.

4. Communication: Real time instant messaging

82.9% of Chinese internet users use instant messagers (IM) for live communication. The top B2C and C2C platforms in China, such as Tmall or Taobao are using IM application to communicate with their customers, unlike users in Western countries who tend to use email. So in order to best communicate with your Chinese audience, it would be good to integrate an IM application with your Chinese website.

5. Download: Always seeking free downloads

Chinese users are not willing to pay for softwares, films, games etc. They always seek free download, i.e.free softwares, free films, free music, free games, free books etc. It is a bad behaviour though, because it offends the copyrights. Therefore it is best to protect your content either behind pay-walls or through digital rights management.

6. Location of internet use: Home

CNNIC reported that by the end of 2012, 91.7% of all internet use came from domestic residencies. Weekly average of time spent online in 2012 was 20.5 hours. Key hours during the day are between 19:00 – 21:00 which are considered rush hours for internet users（data from Baidu Tongji). Therefore it is best consider keeping your real-time communication channels open beyond normal hours of business.

(Image source: “World Wide Web And People” | www.freedigitalphotos.net)

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