China Skinny - Digital Marketing from the Ground Up

Insights-Based Marketing | Research | Digital

#CDC15SYD @thechinaskinny

Melbourne13 November 2015

#CDC15MEL @thechinaskinny

China Digital Conference 2015

Understanding & Reaching China’s Super ConsumersHow the Internet is Reshaping the Largest and Most Dynamic Market on Earth



A Meaningful Brand Association



China Today: the Tip of the Iceberg

Affluent &Upper Middle Class

2012

256 million urban households

2022

357 million urban households

Source: McKinsey

Affluent &Upper Middle Class



How are they Spending their Disposable Income?

Fresh food & FMCG overrepresented.Spending growthfastest for wealthy

Fashion, accessories & cosmetics overpresentedThe importance of looking good for Chinese

Lifestyle & entertainmentUnderrepresented and expected to have most growth potential –particularly among youth



Who’s Doing the

Shopping?



Understanding the Target Market

USA’s Income by Age

China’s affluent & worldly youth

Are most open to Western brands

2/3 of China’s international

travellers < 35 years oldMcKinsey

59% < 30 rate USA positively

29% >50 rate USA positivelyPew



China’s Distinctive & Dynamic Youth

Post-80s Generation• Relatively humble upbringing• Ambitious & confident• Strive for sophistication & wealth• Fit in• Now parents

Post-90s Generation• Easy childhood, tech & exposure• Unsure if they/China can succeed• Living the now • Show individuality through products

Both segments pragmatic about price, but increasingly

concerned about quality, value and service



How They’re Living

19799m² / Chinese

201432m² / Chinese



Henan Province, 2013



Channels Consumers Do Extensive Research for Products

& Services

95% trust a brand more if they’ve seen it on social media Source: eMarketer



Connected Everywhere

89%of Online Chinese

access through

mobile



WeChat in China

Active Daily Users on WeChat

2014 2015

55% access WeChat >10 times/day

Average user reads WeChat articles equalling

novel a month

WeChat contributes $1.76 billion/year to

Lifestyle Spending

570 million active users

88% of WeChat users born after 1980



75%of China’s 280 million affluent consumersWill live in ‘smaller cities’ by 2020



How do we Reach Consumers in those Cities?

China’sTop-100Retailers

eCommerce



When Chinese hear ‘shopping’ 45% think of doing it online

14% shop online daily

(5% do it globally)

63% shop online weekly

(21% do it globally)

Source: PWC

Source: McCann

81% of China’s Online Shoppers Born After 1980



Online Shoppers are significantly more

satisfied with customer service than offline shoppers



30.2%

69.8%

AdvocacyPurchase

Top-100 search

terms for wine

935,000

Top-100 search

terms for wine

404,500

Online Customer Journey for Wine

Engagement

Learning about

specific wine

brands and

promotions

Learning about wine

basics

Unlike most markets were Google and other search engines dominate searches for products, in China

searches on ecommerce platforms outnumber search engines for most

products

Wine Search 7-day Activity January 2015

Offline

InfluencesOffline

Influences

Offline

InfluencesOffline

Influences

Offline

Influences



Is Selling Online Only the Best Move?

50% check products offline before buying online

75% of check prices online before buying offline



To Wrap Up

• China is a competitive market and local

brands are upping their game.

• Know your target market

• Understand the channels (online and

offline)

• Understand their customer journey

• Change with the market



Questions?

China Skinny publishes the

most-read English language

newsletter about marketing in

China


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