GAME CHANGER Brands and Gaming

Total Page:16

File Type:pdf, Size:1020Kb

GAME CHANGER Brands and Gaming Gamefluencer, a recent phenomenon reshaping the brand's marketing strategy for many sectors as it becoming the ‘GAME CHANGER’ This report is about Brands and Gaming: The Unlikely Partnership Set To Explode In 2020 2 Gaming The Next Frontier For Brand Activations After the halt of new game licenses that paused the Luxury and lifestyle brands and the video games industry in late 2018, new licenses finally resumed in industry are set to become increasingly 2019, although at a slower pace than before. This intertwined as high-end brands find new ways to slowdown in the industry allowed the Chinese market, “engage and excite millennials”. previously the largest and fastest growing in the world, to slip back into slot #2 going into 2020. PP / / 2 2 Capitalize On The Increasingly Lucrative Market According to a new report from investment banking giant Jefferies, luxury brands are set to drive this unlikely partnership forward over the coming years as they seek to capitalize on the increasingly lucrative market. China is the number one games market in the world accounting for 25 percent of the market, and Jefferies expects the Chinese cluster to account for 80 percent growth in the luxury industry in 2020. P / 3 Women Lead The Way Over a third of China’s population play some sort of video game 630 million people with women representing over 58 percent of those players, this figure is expected to grow by another 55 million in two years. P / 4 The Next Generation of Luxury Consumers With current market revenues at approximately $21.4 billion, China surpasses all other countries when it comes to mobile games. It argues that the current gaming demographic represent the next generation of luxury consumers, with 46 percent of the world’s active gamers already spending money in-game. P / 5 Keep Customers in Their Branded Worlds More and more brands has started to implement gaming an explicit part of their annual plans targeting the Chinese market, since China have the largest gaming market. The brands will be mainly focus on millennials and Gen Z. P / 6 How Burberry Won Over Chinese With ‘Ratberry’ Ratberry is the central character in a world inspired by the limited- edition Thomas Burberry Monogram motif in honor of the Year of the Rat. Burberry has seen a growing appetite for gaming among younger consumers, particularly in China. As interactive digital content is increasingly becoming source of inspiration, Ratberry is another opportunity for consumers to connect with the Burberry community online. P / 7 Gucci’s Old School is China’s New School Gucci's vintage style video games might stir up emotions and stimulate purchases by millennials, they also serve to pique the interest of younger consumers – also known as Generation Z. “Generation Z is used to living their lives in the digital world. Since old school games – the not-so-digital elements – come to the fore, they are seen as something new and hip. P / 8 MAC X Honor of Kings Background MAC collaborated with Honor of Kings and released five co-branded lipsticks, featuring the lip colors of 5 well- known game characters. Delivery The products were marked it in the equally novel way using Tencent’s own products such as the WeChat moments ads, QQ group, WeChat H5 Pages and mini-programs. MAC utilized Tencent’s AR technology to communicate with fans of the beauty product in the mobile game. With AR, the Honor ok Kings lipsticks could be scanned revealing interactive avatar Results Over 14,000 pre-orders across all three platforms (Tmall, the official M.A.C. website and a WeChat mini-program) were placed; and all five shades sold out across all sales channels within 24 hours of the launch. P / 9 BAZAAR x Luo Tianyi Background Harper’s BAZAAR created its first collaboration with a virtual idol singer to sharing the stories about Wuhan Solution Invited China‘s most successful VR idol, Luo Tianyi, to go to Wuhan to explore the city. It is the first time that the VR idol singer appeared on the cover of BAZAAR. Featuring clothing and accessories for purchase Delivery The content launched on BAZAAR’s digital version magazine—mini BAZAAR, and based on WeChat mini application, that surface with background music and #Traditional interacting more obviously and effective. media with a st Results 21 Century 60K purchased on WeChat platform of digital magazine version twist 12K Weibo reposted and comments. P / 1 0 Moschino X The Sims Background This collaboration mended the virtual reality with real life. The Sims X Moschino Pixel Capsule Collection features Sims-themed items and clothing as well as pixelated outfits and other apparel. Delivery Allows players to outfit their characters in runway garments. The pool of potential gaming customers who are already Moschino customers [is likely not] as big as the pool of gamers who are potential Moschino customers. Moschino models lounge in a digitally rendered Sims background in ads. Results An effective marketing campaign that targeted millennials. Created the kind of tone that appeals to this generation, and it lent itself perfectly to being widely shared on social media. P / 1 1 P / 1 1 LOL X Louis Vuitton Background Louis Vuitton and Riot Games announced a partnership, starting with the 2019 League of Legends World Championships. • Created a Trophy Travel Case for the Summoner's Cup. • In-game digital assets like champion skins • Clothing collection • LV &LOL stickers for WeChat Delivery The collaboration along with the products were linked to #Leverage posts on LV’s App, Newsletter and Weibo drive traffic to LV’s official website. WeChat Account’s navigation bar and fashion articles provide entrances to its mini-program. understanding Results into e-sports to 2 million+ Video Viewership and 50,000+ Engagements drive Gen Z on YouTube. Less than an hour later the collection sold out in LV’s online shop. Weibo has attracted more than 1 million discussions P / 1 2 From Nike to MAC Cosmetics and Louis Vuitton, consumer brands across categories are tapping into marketing opportunities in A Game Changer China’s massive gaming and esports industry. As brands seek out new platforms for For Brand In 2020 exposure, gaming is ripe for marketing thanks to its devoted fan base that can deliver authentic impressions for brands. For more information please email us at [email protected].
Recommended publications
  • Prospering in the Pandemic: the Top 100 Companies the First in an FT Series on Corporate Resilience in a Year of Human and Economic Devastation
    FRIDAY 19 JUNE 2020 FT SERIES Coronavirus economic impact Prospering in the pandemic: the top 100 companies The first in an FT series on corporate resilience in a year of human and economic devastation In a dismal year for single day in April, up from 20m drawing more users into an most companies, a 1. Amazon in late 2019. ever-expanding ecosystem of minority have shone: wearables and services. pharmaceutical groups SECTOR: ECOMMERCE Apple executives predicted boosted by their hunt HQ: SEATTLE, US $269.9bn sales of some items would even for a Covid-19 vaccine; MARKET CAP ADDED accelerate, as millions of technology giants buoyed Key stat: Amazon anticipates consumers working from home by the trend for working it could spend $4bn to keep its Microsoft’s shift to the cloud would opt to upgrade their from home; and retailers logistics running during the under Satya Nadella has left it electronics. Investors crowned offering lockdown coronavirus crisis. well-placed for a world where Apple the first $1.5tn company. necessities online. large numbers of people are Patrick McGee in San Francisco Public companies working remotely. The Teams had the tailwind of a $401.1bn communication app has MARKET CAP ADDED become a way for workers to surprisingly robust stock stay in touch. The Azure cloud 4. Tesla market — which many As world leaders ordered their computing platform has become believe is a bubble. citizens indoors, Amazon became a more critical part of the digital SECTOR: AUTOS To rank companies the emergency port of call for backbone for many companies.
    [Show full text]
  • [TME] - Tencent Music Entertainment Group Second Quarter 2019 Financial Results Conference Call Monday, August 12, 2019, 8:00 PM ET
    [TME] - Tencent Music Entertainment Group Second Quarter 2019 Financial Results Conference Call Monday, August 12, 2019, 8:00 PM ET Officers Millicent Tu, VGM, IR Cussion Pang, CEO Tony Yip, CSO Shirley Hu, CFO Analysts John Egbert, Stifel, Nicolaus Alex Yao, JPMorgan Chase Eddie Leung, Bank of America Merrill Lynch Piyush Mubayi, Goldman Sachs Group Thomas Chong, Jefferies Hans Chung, KeyBanc Capital Markets Gary Yu, Morgan Stanley Presentation [Technical Difficulty] Operator: Ladies and gentlemen, good evening and good morning, and thank you for standing by. Welcome to the Tencent Music Entertainment Group's Second Quarter 2019 Earnings Conference Call. At this time, all participants are in listen-only mode. (Operator Instructions). Today you will hear discussions from the management team of Tencent Music Entertainment Group, followed by a question-and-answer session. (Operator Instructions). Please be advised that this conference is being recorded today. If you have any objections, you may disconnect at this time. Now, I will turn the conference over to your speaker host today, Ms. Millicent Tu. Please go ahead. Millicent Tu: Thank you, operator. Hello, everyone, and thank you all for joining us on today's call. Tencent Music Entertainment Group announced its financial results for the second quarter of 2019 today after the market close. An earnings release is now available on our IR website at ir.tencentmusic.com, as well as via newswire services. Today you will hear from Mr. Cussion Pang, our CEO, who will start off the call with an overview of our recent achievements and growth strategy. He will be followed by Mr.
    [Show full text]
  • Anti-Cheat Expert Product Introduction
    Anti-Cheat Expert Anti-Cheat Expert Product Introduction Product Documentation ©2013-2019 Tencent Cloud. All rights reserved. Page 1 of 7 Anti-Cheat Expert Copyright Notice ©2013-2019 Tencent Cloud. All rights reserved. Copyright in this document is exclusively owned by Tencent Cloud. You must not reproduce, modify, copy or distribute in any way, in whole or in part, the contents of this document without Tencent Cloud's the prior written consent. Trademark Notice All trademarks associated with Tencent Cloud and its services are owned by Tencent Cloud Computing (Beijing) Company Limited and its affiliated companies. Trademarks of third parties referred to in this document are owned by their respective proprietors. Service Statement This document is intended to provide users with general information about Tencent Cloud's products and services only and does not form part of Tencent Cloud's terms and conditions. Tencent Cloud's products or services are subject to change. Specific products and services and the standards applicable to them are exclusively provided for in Tencent Cloud's applicable terms and conditions. ©2013-2019 Tencent Cloud. All rights reserved. Page 2 of 7 Anti-Cheat Expert Contents Product Introduction Overview Features ©2013-2019 Tencent Cloud. All rights reserved. Page 3 of 7 Anti-Cheat Expert Product Introduction Overview Last updated:2021-06-22 11:17:30 Overview of the Mobile Game Market Market size According to a third-party data source, China's mobile game industry reported a total revenue of 102.28 billion CNY in 2016. With the rise of online gaming, game virtual social system, PVP system, and high-value game economy system are becoming more and more prevalent in mobile games, posing considerable security risks to the industry.
    [Show full text]
  • For Immediate Release
    For Immediate Release TENCENT ANNOUNCES 2020 FIRST QUARTER RESULTS Hong Kong, May 13, 2020 – Tencent Holdings Limited (“Tencent” or the “Company”, 00700.HK), a leading provider of Internet value added services in China, today announced the unaudited consolidated results for the first quarter (“1Q2020”) ended March 31, 2020. 1Q2020 Key Highlights Revenues: +26% YoY, non-IFRS1 profit attributable to equity holders of the Company: +29% YoY ▪ Total revenues were RMB108,065 million (USD15,252 million2), an increase of 26% over the first quarter of 2019 (“YoY”). ▪ On a non-IFRS basis, which is intended to reflect core earnings by excluding certain one-time and/or non-cash items: - Operating profit was RMB35,575 million (USD5,021 million), an increase of 25% YoY. Operating margin remained stable at 33%. - Profit for the quarter was RMB27,984 million (USD3,950 million), an increase of 29% YoY. Net margin increased to 26% from 25% last year. - Profit attributable to equity holders of the Company for the quarter was RMB27,079 million (USD3,822 million), an increase of 29% YoY. - Basic earnings per share were RMB2.858. Diluted earnings per share were RMB2.817. ▪ On an IFRS basis: - Operating profit was RMB37,260 million (USD5,259 million), an increase of 1% YoY. Operating margin decreased to 34% from 43% last year. - Profit for the period was RMB29,403 million (USD4,150 million), an increase of 6% YoY. Net margin decreased to 27% from 33% last year. - Profit attributable to equity holders of the Company for the quarter was RMB28,896 million (USD4,078 million), an increase of 6% YoY.
    [Show full text]
  • Defence of Chinese State-Sanctioned History Against Perceived Attacks from Honor of Kings
    Defence of Chinese state-sanctioned history against perceived attacks from Honor of Kings Bjarke Liboriussen University of Nottingham Ningbo China School of International Communications 199 Taikang East Road +86 574 8818 0000 ext. 8992 [email protected] Paul Martin University of Nottingham Ningbo China School of International Communications 199 Taikang East Road +86 574 8818 0000 ext. 8172 [email protected] Keywords China, Honor of Kings, MOBA, history, social media, Zhihu Honor of Kings (wangzhe rongyao, Tencent 2015) is a multiplayer online battle arena game (MOBA), released in the Chinese market in 2015 and internationally under the name Arena of Valor, in 2017. Like other MOBA games such as League of Legends (Riot Games 2009), Honor of Kings involves players selecting heroes and competing against each other in teams or, more rarely, individually to attack their opponent’s territory and defend their own. Honor of Kings is a mobile game, and its gameplay is less complex than League of Legends. It is also the first major MOBA game to be produced in mainland China. Honor of Kings has been very successful in China, with some reports putting the registered users at 200 million (Shijia 2017; Cowley 2017). With this success has come government scrutiny. From March 2017 critical articles begin to appear in the society, culture and opinion sections of The People’s Daily, the official mouthpiece of the Chinese Communist Party (CCP), as well as a widely discussed article in Guangming Daily (Zhang 2017). The most widely reported of these critical articles (Li, G. 2017) led to a short-term drop in Tencent’s share price, and prompted Tencent to introduce systems to prevent young players spending too much time at the game (Reuters 2017).
    [Show full text]
  • Expected Outstanding Growth in Online Games Business
    股 票 研 [Table_Title] Jason Zhou 周桓葳 Company Report: Tencent (00700 HK) 究 (852) 2509 5347 Equity Research 公司报告: 腾讯控股 (00700 HK) [email protected] 26 June 2020 Expected[Table_Summary] Outstanding Growth in Online Games Business 预计较好的在线游戏业务增长 China’s mobile games market maintained its growth momentum in May, Rating:[Table_Rank] Buy although user time spent is expected to have declined from its peak Maintained 公 during the quarantine period. According to CNG, China’s mobile games market scale increased 11.9% mom in May, reaching RMB17.68 billion. We 司 评级: 买入 (维持) believe that the new titles supply will be the growth engine of the mobile 报 games market in 2H20. 6[Table_Price]-18m TP 目标价 : HK$555.00 告 We have revised up 2020-2022 online games revenue by 2.4%, 2.0% and HK$500.00 Company Report 3.5%, respectively, due to 1) expected strong performance of Tencent signature smatphone games such as HoK and Peacekeeper Elite, and 2) the Share price 股价: HK$485.000 newly launched game Brawl Stars. In addition, we found that the Company has a good balance within their smartphone games portfolio structure in terms of game lifetime and cash generated capability. Stock performance 股价表现 We believe that WeChat Channels ("Channels") could further amplify WeChat's content ecosystem and enhance users' time spend. We view 50.0 % of return Channels more than a short video platform. In addition, we believe that 40.0 Channels will strengthen the Company's online advertising business and 30.0 fintech and business services in the long run.
    [Show full text]
  • Downloads on Ios and Android Combined
    Call of Duty: Mobile Opens to Massive Launch October 4, 2019 Achieves #1 App Ranking on iOS in Over 100 Countries and Regions Surpasses More Than 35 Million Downloads on iOS and Android Combined SANTA MONICA, Calif.--(BUSINESS WIRE)--Oct. 4, 2019-- Activision’s Call of Duty®: Mobile has surpassed 35 million downloads faster than any other mobile First Person or Third Person Action games on App Store and Google Play.i Published by Activision, and developed by Tencent Games’ award-winning TiMi Studios, the new title has achieved the #1 app ranking on App Store based on downloads in over 100 countries and regions since launch.ii Call of Duty: Mobile delivers the definitive, free-to-play, first person action experience on mobile, bringing together the most beloved maps, competitive modes, iconic characters and signature weapons from across the franchise, including the Modern Warfare® and Black Ops universes, in one epic experience. “The response from fans across both Android and iOS has been amazing. Already, Call of Duty: Mobile has surpassed 35 million downloads on its way to becoming the #1 ranked iOS app in downloads overall, not only among games, but also among all apps, in 100 countries,” stated Rob Kostich, president, Activision. “This is an incredibly fun experience, and we’re only getting started. Congratulations to the teams at Activision and at our partner Tencent’s TiMi Studios for making such a great game for players. And special thanks to our fans for their continued support. There is a ton more to look forward to as we release more content and updates.” The title includes full head-to-head competitive Multiplayer modes, as well as an all-new Battle Royale experience, including classic locations from Call of Duty® featuring land, sea and air vehicles.
    [Show full text]
  • Riot Games Lays out Long Term Growth Strategy
    Publication date: 24 Oct 2019 Author: Omdia Analyst Riot Games Lays Out Long Term Growth Strategy Brought to you by Informa Tech Riot Games Lays Out Long Term Growth 1 Strategy During Riot Games’ League of Legends 10th anniversary celebratory stream, the company announced an unexpectedly large roster of new games and its expansion strategy for at least the next 3-5 years. For a company that has been built and focused on one title for a decade – albeit one that has generated $20 billion in revenues according to the company - this marks a major gear change in its ambitions. The list of announced games and other ‘projects’ in development were as follows: . League of Legends: Wild Rift - a mobile and console version of the world’s biggest PC online and esports game League of Legends (LoL) . Teamfight Tactics - Already available on PC, Riot confirmed that a mobile version of its LoL-based auto battler game was in the works . Legends of Runeterra – A LoL based digital card game coming to PC and mobile, which shares some similarities to Blizzard’s Hearthstone . Project A, a tactical team-based first-person shooter was confirmed to be in development. Not a lot is known about this game, but it looks to combine the aesthetic and some character-based play of Blizzard’s Overwatch with Valve’s Counter-Strike: Global Offensive . Project L, a fighting game set in the LoL universe was confirmed to be in development . Project F, confirmation of development of a 2.5D Diablo-like experience set in Runeterra and based in the LoL universe .
    [Show full text]
  • Newzoo the Role of Mobile in Esports
    FREE REPORT THE STATE AND FUTURE OF MOBILE ESPORTS IN ASIA AND THE WEST FEBURARY 2018 1. Market Overview 5 2. PC Esports vs. Mobile Esports 11 3. Mobile Esports in the West 16 4. Mobile Esports in Asia 22 5. Future Outlook 29 AN OVERVIEW OF THE CURRENT MOBILE ESPORTS SCENE FEATURED CASE STUDIES The past two years has witnessed crucial developments in the global esports market, growing by 102% in revenues from 2015 to 2017. While mobile has quickly grown as the biggest gaming screen worldwide, its esports scene is largely lagging behind that of PC and console. DAU in DAU in the West In Asia however, mobile esports is experiencing a boom, accelerated by the mobile-first China culture of the region. The phenomenon is especially outstanding in China, leading with top Battle of Balls Clash Royale franchises such as Tencent’s Honor of Kings and Giant Network’s Battle of Balls. In Asia, in China in the West mobile esports is expected to follow a similar structure to that of PC, with the top games being played and scalable stadium events taking place with large viewership. In the West, PC is still the dominant form of gaming entertainment and is expected to remain so for the coming years. Here, mobile esports is expected to be more successful in other layers of esports, such as the amateur scene. For the mobile esports scene, 2018 will be a year to uncover its own identity within the larger esports ecosystem. PETER WARMAN NEWZOO CEO 3 © copyright Newzoo 2018 NUMBER OF EVENTS, FEATURING TWO DISTINCTIVE FRANCHISES THE WESTERN OF ASIAN VIEWERS OF
    [Show full text]
  • Special Report EVOLUTION of MOBILE ESPORTS for THE
    Special Report EVOLUTION OF MOBILE ESPORTS FOR THE MASS MARKET nikopartners.com Special Report: Evolution of Mobile Esports for the Mass Market Overview Esports, and the increase in mobile device usage globally, will be the primary drivers for growth in the digital games industry over the next 5 years. A rise in mobile device usage will make gaming more accessible to all, while the mechanics of mobile games revenue models will make it easier for mobile gamers to participate in esports. Mobile gaming revenue already surpasses PC and console gaming revenue, and the development of mobile gaming markets in Greater Southeast Asia and South America (and the continued growth of these markets in North America, Europe, South Korea, Japan, and China) will further tip this balance. Mobile esports is poised to become a cornerstone of the global digital games industry over the next 5 years. 2 Special Report: Evolution of Mobile Esports for the Mass Market Exhibit: Global mobile games revenue by region, 2017-2019 Region Mobile games Mobile games Mobile games Mobile games revenue 2019 H1 revenue 2018 H1 revenue 2018 revenue 2017 USD million USD million USD million USD million Global 33,453 28,650 60,786 51,134 Asia (excluding China) 11,321 10,134 20,901 18,643 North America 8,547 6,999 14,850 12,487 China 8,318 7,032 15,627 12,127 Europe 3,474 3,088 6,391 5,307 Oceania 515 489 1,012 916 Latin America 442 293 665 528 Middle East 341 268 566 490 South America 299 196 446 346 Central America 139 95 214 178 Africa 57 56 114 112 Source: Sensor Tower, Niko Partners 2019 In 2019, the most prominent and visible esports platform is the PC, thanks to streaming platforms and live tournaments with lots of media coverage.
    [Show full text]
  • Analysis on Marketing Strategies of Tencent Games—Take Honor of Kings As an Example
    E3S Web of Conferences 235, 03028 (2021) https://doi.org/10.1051/e3sconf/202123503028 NETID 2020 Analysis on Marketing Strategies of Tencent Games—Take Honor of Kings as an Example Dantong Shen1* 1 School of Management and Economics The Chinese University of Hong Kong Shenzhen, China Abstract.This paper mainly focuses on the marketing strategies of Tencent Games. Tencent Games has the largest revenue all over the world. It is considered that the effective marketing strategies play important roles in global competition. Many researches have been focusing on this topic. In this article, strategies are summarized into four main points: product marketing, entertainment marketing, cross-border cooperation and intellectual property creation. Then the author conducts out a deep case study of Honor of Kings, introducing the most striking and latest strategies of the game. The game has cross-border cooperation with a cosmetics brand, idolizes the in-game characters and gets hold of festivals to launch virtual products. The experience of Tencent Games indicates that different strategies fit different periods and the developer should listen to the users and follow the trend. 1 Introduction In the 21st century, with the rapid popularization and innovation of electronic products, more and more video games have penetrated into people’s lives. Games market is now promising and plentiful. At the same time, it is highly competitive. Tencent is one of the most important names of mobile games industry. The company owns a great number of famous games including Player Unknown’s Battlegrounds (PUBG), Honor of Kings, Fortnite, Cross Fire and other Fig2. Top 5 companies in gaming revenue in 2018.
    [Show full text]
  • China's Digital Game Sector
    May 17, 2018 China’s Digital Game Sector Matt Snyder, Analyst, Economics and Trade Acknowledgments: The author thanks Lisa Hanson, Dean Takahashi, and Greg Pilarowski for their helpful insights. Their assistance does not imply any endorsement of this report’s contents, and any errors should be attributed solely to the author. Disclaimer: This paper is the product of professional research performed by staff of the U.S.-China Economic and Security Review Commission, and was prepared at the request of the Commission to support its deliberations. Posting of the report to the Commission’s website is intended to promote greater public understanding of the issues addressed by the Commission in its ongoing assessment of U.S.- China economic relations and their implications for U.S. security, as mandated by Public Law 106-398 and Public Law 113-291. However, the public release of this document does not necessarily imply an endorsement by the Commission, any individual Commissioner, or the Commission’s other professional staff, of the views or conclusions expressed in this staff research report. Table of Contents Executive Summary....................................................................................................................................................3 China’s Digital Game Market ....................................................................................................................................3 Importance of the Digital Game Sector to the U.S. Economy ....................................................................................8
    [Show full text]