The Strengths of Daxue Consulting 6 Crucial Competitive Advantages
Total Page:16
File Type:pdf, Size:1020Kb
COVID-19 STIMULATED THE STAY-AT- HOME ECONOMY IN CHINA May. 2020 HONG KONG | BEIJING | SHANGHAI www.daxueconsulting.com [email protected] +86 (21) 5386 0380 1 TO ACCESS MORE INFORMATION ON THE IMPACT OF THE STAY-AT-HOME ECONOMY IN CHINA, PLEASE CONTACT [email protected] Who we are Your Market Research Company in China Covered Tier-1 cities Covered Tier-2 cities Covered Tier-3 (and below) cities We are daxue consulting: • A market research firm specializing on the Chinese market since 2010 • With 3 offices in China: in Shanghai, Beijing and Hong Kong 北京 BEIJING, CHINA Room 726, Building 1, 40 • Employing 40+ full-time consultants Dongzhong Road, Dongcheng District • Full, complete, national coverage • Efficient and reliable fieldwork execution across China 上海 • Using our expertise to draw precise, reliable SHANGHAI, CHINA (Head Office) recommendations Room 504, 768 Xietu Road, Huangpu District • With key accounts from around the world © 2020 DAXUE CONSULTING 2 ALL RIGHTS RESERVED The strengths of Daxue Consulting 6 crucial competitive advantages 1. Localized & Creative 创造和本土 2. Responsive & Flexible 负责和灵活 Our team has an international At all levels at daxue consulting, daxue is creating an background, leveraging the best of environment where freedom and responsibility go Rigorous together. & creative both worlds Responsive Teams are tailor-made depending daxue consulting has a commitment to answer on the projects emails within a day. We are result-oriented and do not count our time to accomplish our tasks. One client = one dedicated team Regular reports with our clients in order to make sure we reach the goal expected from our clients. Manage from A to Z 3. We manage from A to Z 内部 4. Actionable recommendations 可行建议 daxue consulting does not outsource We care about results and design our its services. We manage our own research in order to be operational. assistants and use directly technological We are driven by metrics such as tools. customer acquisition costs, business Actionable We have a deep understanding on the plan KPIs, P&L optimization. recommen- fieldwork and the context within which dations data was collected. 5. Innovative 创新 6. Professional 专业 Innovative Constant on the look for new Our methodologies are rigorous and Professional research tools and methodologies serious, taking information from the best practice in the world of consulting Our goal is to combine and research. traditional methodologies with the latest tech tools Demanding on the results, detail- oriented, respectful towards our commitments. © 2020 DAXUE CONSULTING 3 ALL RIGHTS RESERVED Our services Experienced in answering to a wide variety of strategic business questions MARKET GAP MARKET RESEARCH REGULATORY BUSINESS PLAN MARKET POTENTIAL IDENTIFICATION 市场调研 FRAMEWORK 商业计划 ASSESSMENT 市场缺口 管理框架 市场潜力评估 GO-TO-MARKET MARKET ENTRY CUSTOMER JOURNEY COMPETITOR MARKET SIZING STRATEGY 市场准入 消费者旅程 BENCHMARKING 市场规模 市场进入 竞争者对标 VALUE PROPOSITION PARTNERSHIP PRODUCT TESTING DIGITAL STRATEGY OMNI-CHANNEL & USP DEFINITION SCREENING AND LOCALIZATION 数字战略 STRATEGY 价值主张和销售主张 合作伙伴筛选 产品测试和本地化 全渠道策略 © 2020 DAXUE CONSULTING 4 ALL RIGHTS RESERVED 350+ clients with 600+ projects for the past 7 years Examples of references © 2020 DAXUE CONSULTING 5 ALL RIGHTS RESERVED A recognized expertise on the Chinese market Regularly featured and quoted in global publications Daxue latest quotations in recent publications © 2020 DAXUE CONSULTING 6 ALL RIGHTS RESERVED CONTENT OUTLINE 1. The rise of the Stay-at-home Economy in 08 China 2. Social media and news apps are more 17 embedded into Chinese daily lives 3. The 4 types of rising entertainment 22 platforms 4. E-commerce and delivery to keep growth 38 5. Growth points of the Stay-at-home 40 Economy © 2020 DAXUE CONSULTING 7 ALL RIGHTS RESERVED 1 The rise of the Stay-at-home Economy in China © 2020 DAXUE CONSULTING 8 ALL RIGHTS RESERVED What is the Stay-at-home Economy? 宅经济 The Stay-at-home Economy is series of consumption and commercial activities carried out by people at home, such as online shopping, entertainment, work, education and fitness. Industries that Stay-at-home Economy involves Online shopping Online entertainment Delivery services Social media Remote work Online education Telemedicine Online fitness © 2020 DAXUE CONSULTING 9 ALL RIGHTS RESERVED Consumers of the Stay-at-home Economy: Zhai people (宅人群) The expression of Zhai people (宅人群) refers to men and women who depend on the internet to meet their daily needs without leaving their homes. They are usually keen on online videos, games and animation. During COVID- 19, most Chinese people lived the Zhai lifestyle. Thus, the Zhai economy has expanded. Hobbies of Zhai people Background of Zhai people “Zhai people” aka “宅男 and 宅女” (Zhai men and zhai women) is originally a Japanese word “Otaku” meaning “geeks”, now it is widely used to describe people who don’t like outdoor activities. They normally spend less than 3 hours outside and Videos, movies, TV Video and mobile Social media around 8 hours on the internet every day. and live-stream games E-commerce and food Online courses Novels and delivery apps comics © 2020 DAXUE CONSULTING 10 ALL RIGHTS RESERVED Zhai people (宅人群) demographics (1/2) China’s progressive internet and technologies make it convenient to meet daily needs without leaving home. Thus the lockdown during the COVID-19 epidemic intensified the trend. Zhai men and women see different benefits of staying at home and have different hobbies. Brands and platforms that want to expand business online need to have a deeper understanding of Zhai people’s desires. The gender distribution of Zhai people The preferences of Zhai people by gender (2019) Most of them like video and mobile games, internet novels, videos about tech, TV dramas and shows, 宅男 Japanese and Chinese anime. 55.5% 44.5% They are usually keen on online shopping, following celebrities on social media, videos about fashion and beauty, animation and TV shows. 宅女 Source: GeTui Data (个推大数据), iimedia, HUAXI Securities © 2020 DAXUE CONSULTING 11 ALL RIGHTS RESERVED Zhai people (宅人群) demographics (2/2) Most Zhai people are younger than 35 years old, however, the stay-at-home lifestyle is also spreading among older generations because of the Coronavirus. Therefore, it’s possible that more people above 35 years old will join the group. Zhai people under 30 are mainly from cities outside Beijing, Shanghai, Shenzhen and Guangzhou. It means stay-at-home economy is expanding in lower tier cities, related industries also can have more consumers from those regions. The age distribution of Zhai people Geographical distribution of China’s Zhai people (2019) under 30 years old (2019) 41.4% 35.4% 15% 29% 31% 26% 15.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4.0% 4.1% Tier-1 cities New tier-1 cities Tier-2 cities Tier-3 cities 18-24 years old 25-34 years old 35-44 years old Above 45 years old Other ages New tier-1 cities= cities that do not equal the traditional first tier cities, Source: GeTui Data, JiGuang Data, iimedia, HUAXI Securities such as Shanghai but stand out beyond other Tier 2 cities. © 2020 DAXUE CONSULTING 12 ALL RIGHTS RESERVED Fast developing internet is the foundation of the stay-at-home economy China’s fast growing internet makes people can have many services without leaving their homes. 2019 H1 vs. 2018 H2 +0.4% of Urban users +1.6% of penetration rate 2019 2019 H1 2019 1.4 Billion 854 Million 910 Million Population internet Users Mobile internet users 61% 65% Of Population 99% VS. internet Users Source: GSMA, CNNIC © 2020 DAXUE CONSULTING 13 ALL RIGHTS RESERVED Mobile internet is the engine of the Stay-at-home economy Digital consumers: people who use Time digital consumers spend on different channels mobile internet to look for and purchase products, take advantage of (2019) the content published online. Others, 24% Social, 33% (e.g. WeChat, Weibo) Total time spent online (per user per day) Online shopping, 4% 358 minutes Gaming, 8% Social Apps Online music, 3% Short video, 11% Content Apps News, 9% Online video, 8% (e.g. iQiyi) Other Apps Source: McKinsey, China digital consumer trends in 2019 © 2020 DAXUE CONSULTING 14 ALL RIGHTS RESERVED Mobile payment enables stay-at-home consumption 92% of people in China’s largest cities use WeChat Pay or Alipay as their main means of payment. The wide use of mobile payment allows Chinese people to buy all daily necessities from home, which is another important driver of the Stay-at-home Economy in China. Market share of mobile vs non-mobile payments in China (2013-2018) 17.0% 25.4% 21.5% 49.3% 57.4% 81.5% Non-mobile 83.0% Mobile 74.6% 78.5% 50.7% 42.6% 18.5% 2013 2014 2015 2016 2017 2018 Source: Walk The Chat, Ipsos © 2020 DAXUE CONSULTING 15 ALL RIGHTS RESERVED COVID-19 pushed Chinese activities further online (1/2) Time spent online has steadily increased for several years, COVID-19 enhanced this trend. During the epidemic, Chinese reliance on the internet increased and they were exposed to more diverse platforms. Average time spent on the Internet per week per Chinese netizen (hours) 30.8 27.6 27.9 27 Dec-17 Dec-18 Jun-19 Mar-20 Source: CNNIC (中国互联网信息中心) © 2020 DAXUE CONSULTING 16 ALL RIGHTS RESERVED COVID-19 pushed Chinese activities further online (2/2) COVID-19 made people stay at home at much as possible, which expedited the development of internet related business like online entertainment and education. Social media platforms: On Weibo, some topics about COVID-19 reached over 1 million reads per minute. Online Shopping: Mobile gaming: In February 2020, Taobao app had Multiplayer online battle arena sector 720 million users in China, increased is the most popular with the game by 33 million users compared with Honor of Kings reached more than December 2019.