Chinese digital media today Guide
When it comes to digital media, mobile phones are a frequently occurring topic. From mobile video to the rise of chatting on social networks and microblogging, netizens are able to use unique methods to maintain their Internet lifestyles. In this volume we will specifically use the perspective of mobile technology to view the influence of different trends. Look out for the MOBILE symbol, which is used to point out those discoveries targeting mobile phones.
2 In the past year, Chinese Internet revenues grew 54%...
… representing an increase of 13.5 billion RMB from last year
Chinese Internet revenues from 2010 to 2013
Revenue (billion RMB) Growth Rate
66.9% 54.1% 800.0 46.9% 44.9% 600.0 400.0 557.9 200.0 385.0 249.9 149.8
0.0 2010 2011 2012e 2013e
Source: iResearch 2012 China Internet Economy Report 3 18% of growth or 20% of growth or 55% of growth or 270 billion RMB comes from 630 billion RMB 240 billion RMB comes mobile devices comes from e-commerce from advertisements
*includes ads streamed before videos *includes video searching, social networking and videos
Source: iResearch 2012 China Internet Economy Report 4 Looking at the broad picture, even though trends are leaning towards users of mobile devices; online video, social networks and e-commerce still play a leading role. 371,830,000
14% year-on-year growth (Online video users) 66% of netizens
Online video 275,050,000
20% year-on-year growth (Social network users) Social networks 49% of netizens 242,020,000
25% year-on-year growth E-commerce (E-commerce users) 43% of netizens
Sources: CNNIC Jan 2013, National Bureau of Statistics of China 2013 5 Advertisements The headline of digital consumption reports
6 Next year, due to shifting budgets for printed media, expenses for digital media will be 24% higher than forecasts predict.
Advertisement expenditures for different media from 2009 to 2014
Magazine Newspaper Internet Radio Outdoor Cinema TV
100% 90%
80% 38% 43% 42% 42% 41% 70% 60% 50%
40% 30% 18% 14% 18% 21% 24% 20% 10% 22% 22% 21% 19% 18%
0% 2009 2010 2011 2012 2013 2014 Ad expenditure share
Source: ZenithOptimedia AdForecast 2013 7 This trend is being propelled by advertisements streamed before online videos; it is especially prevalent for the food and drink, beauty and skincare industries
Internet expenditures for all industries by ad format (not including searches)
132% year-on-year growth
Digital ad banner 20% 11% year-on-year growth 3% Display ad special format
Video (Pre-roll) 77% Others
year-on-year growth
Source: iAdTracker February 2013 8 As of February 2013 As of February 2013 Food and drink products: growth of Cosmetic and bath products: growth 125% of50%
Drinks: Nestle 6082%; C'estbon: 12331% .L'Oréal Group: 168% Food: Mars: 701%; Kraft: 3609% .Procter & Gamble: 22% Spirits: Harbin Beer: 661%; Snow Beer: 4891% .Unilever: 187%
As of February 2013 Telecommunications and IT: growth As of February 2013 Automobiles: growth of of 20% 10% . China Mobile: 54% FAW-VW: 245% . China Telecom: 54% Changan Ford: 77% Dongfeng Nissan: 288% Mercedes-Benz: 287% Chery: 105%
Source: iAdTracker February 2013 9 Although mobile sales only account for 8% of advertising expenditures, they are also the most rapidly growing sector.
Expenditures and growth in Chinese Internet in 2012
Annual Revenue in 2012 (billion RMB) Absolute growth in2012 (billion RMB) % Growth in 2012
180 162.8 Mobile 500% 160 450% 140 329% 400% 120 350% 100 300% 80 75.3 250% 60 51.8 200% 119% 40 29.2 29.1 162% 150% 20 11.0 100% 13.0 5.2 1.3 0 50% Billion RMB 0% 6.4
Source: iResearch 2012 China Internet Economy Report 10 Users
11 The ever-increasing Internet penetration rate helps reduce difficulties with accessing the Internet from households and mobile devices
Total population 564,000,000 42% of the total population Netizens year-on-year growth 16% Internet penetration rate 28% 72% of netizens of netizens Villages Cities
420,000,000 75% of mobile netizens Mobile netizens 32% year-on-year growth
Sources: CNNIC Jan 2013, National Bureau of Statistics of China 2013 12 The amount of time spent on digital media is comparable to traditional media, especially among the under-30 years age group
Time spent on media consumption by age group (hours per week)
40.0 3.5 2.2 4.3 1.4 35.0 0.3 15.1 30.0 12.0 4.2 Mobile Internet 17.5 25.0 2.7 17.1 Internet 20.0 TV 15.0 11.2 Radio 10.0 25.0 Newspaper 20.2 Magazine
14.1 16.5 18.5 5.0 15.1 0.0
Under 18 19-24 25-30 31-35 36-40 41+
Source: CMMS Winter 2010-2012 13 There are numerous opportunities online to target different age groups by using media portfolio optimization
The proportion of time spent on different media by varying age groups
90% Others (net) 80% Game 70% 4.7% 6.4% Finance 60% 9.3% 9.6% 8.3% 7.1% 8.6% 7.4% Recreation 50% 16.5% 10.0% 9.7% 9.8% 9.8% News 40% 19.0% 16.7% 17.9% 17.4% 19.0% 30% Ecommerce 20% 44.2% 39.6% Search Service 32.6% 30.9% 35.2% 10% 29.5% Social Networking 0% Online Video 31-35 19-24 36-40 Under 18 25-30 41+
Source: iUserTracker February 2013 14 Mobile trends
15 MOBILE
Its rapid growth has allowed mobile devices to become China's method of choice for accessing the Internet
Internet-accessing devices
Total Internet
400 Mobile
300 Desktop 200
100 Laptop
0
2H 2009 1H 2010 2H 2010 1H 2011 2H 2011 1H 2012 2H 2012
Source: CNNIC 2009-2013 16 MOBILE
As a matter of fact, the amount of time mobile netizens spend on the Internet is becoming to threaten the television industry
The amount of time spent weekly on different media
60.0
50.0 38.6h TV 14.6 40.0 Radio
Mobile Internet 30.0 12.6 Internet 20.0 Newspaper 19.2 10.0 18.4 Magazine
0.0 3.3 10.8
Total Mobile Netizens
Source: CMMS Winter 2012 17 MOBILE Although it is a cost-driven market, smartphones are still the core of mobile phone boom with advertisements strengthening their hidden potential 73% Smartphones made up 73% of all phones sold in These 213 million new devices will China in 2012 provide a more diversified mobile network and advertising medium
Source: CNNIC Jan 2013, IDC 2012 Q4 18 MOBILE
The importance of smartphones is influencing new behaviors: compared to 12% of time spent browsing the Internet, 88% of time is spent when using apps; this is the new sector for the majority of advertisements to develop
Time spent using apps and browsing the Internet by Android and IOS system mobile users
Time spent monthly (in billions of minutes)
60 Using apps 40 20 0 Browsing the Internet
Source: Nielsen Smartphone Analytics 19 MOBILE
Because over 50% of time spent on apps are concentrated on the top 20, it is very possible that the most popular apps will gain much more attention and demand than others
Top ten 43%
11-20, 8%
21-30, 4% Remaining apps 39% 31-40, 3%
41-50.3%
Source: Nielsen Smartphone Analytics 20 MOBILE
The potential of opening a new mobile network depends on:
Internet browsing App usage 100% 100%
83% use social networks 70% use search engines
Reach Reach 48% use microblogging
32% watch videos 33% play games
*Size of bubble indicates relative time spent 21 Sources: iResearch 2013; CNNIC Jan 2013; InMobi & Decision Fuel APAC Mobile Media Consumption 2012 MOBILE
At the same time, mobile phones implement data caps
Over 90% % of users browse less than Over 80% of users don't exceed their data 300M a month plans
Wireless Internet Plans Data Limit Wireless Internet Plans Data usage Smart Mobile Netizens Non-Smart Mobile Netizens Smart Mobile Ne zens Non-Smart 机 Mobile Ne zens
7.1% Over 300M 1.5% Never beyond monthly traffic 52.6% 100M-300M limit 6.1% 19.1% 62.4% Seldom beyond the monthly 50M-100M 30.5% 19.3% 30.6% traffic limit 26.7% 20M-50M Often beyond the limit, by 32.1% 9.4% 54.7% just a small portion Below 20M 7.0% Often beyond the monthly 11.0% 7.5% None 4.8% limit, by a large portion 3.9% 7.3% 6.3% 0% 20% 40% 60% 0% 20% 40% 60% 80%
Source: CNNIC Jan 2013 22 MOBILE
Very few brands are concerned with the status of their mobile networks; the disapproval rate among mobile users for browsing the Internet are noticeably high
Approval rates for Internet browsing on smartphones
Don't know Completely Unsatisfied Unstatisfied Indifferent Satisfied Completely Satisfied 100%
80%
60%
40%
20%
0%
China France Japan USA
Source: Think With Google – Our Mobile Planet 2012 23 MOBILE
Many websites still lack mobile versions
Only 22% of fashion websites are optimized for mobile phones
… Just 26% of websites use
…52% of websites can't be used with mobile phones
Source: L2 Digital IQ Index: Fashion Supplement 24 MOBILE
Having an optimized mobile version may decrease a website's bounce rate
Bounce rates for site with and without optimized mobile versions
60.00% 54.8% 50.00% 40.00% 30.00% 36.9% 20.00% 10.00% 0.00%
Mobile Websites Desktop Websites
Source: Google Analytics 2013 25 MOBILE
HTML5 allows browsing of mobile websites to become more interactive, more powerful and more effective.
Coding :Simpler than the HTML standard used in the past
Rich media :Even without Flash game and video content can be generated
Geographic positioning: Supports local server support
Ease of use: Forms, text entry and search boxes
26 MOBILE
In regards to mobile advertisements, technological execution is essential to guarantee their effectiveness and ensure a positive user experience.
Device compatibility Data traffic plans
When optimizing ads of different sizes, Suitable for wireless, 3G and 2G using multi-touch and other exclusive restriction plans; provides reasonable interaction methods can maximize user loading speeds and is helpful in convenience implementing data traffic planning (banners, plug-ins and videos, etc.)
27 Videos
28 Rich online video content drives the time consumers spend online
Time spent online viewing different media
6.9% year-on-year growth 14.5% 2.5% Online Video Social Networking 4.6% 37.1% Search Service 5.0% Game Ecommerce 7.1%
9.1% News Recreation 19.7%
Source: iUserTracker February 2013 29 Over 1/6 of netizens spend more time watching videos online than they do watching TV
Comparison of time spent by netizens on watching TV, watching online videos and browsing the Internet 23%
16% 1.4 hours spent watching TV 9% daily 2.1 hours spent watching 5% online videos daily 3.7 hours spent online daily
Q2 2012 Q3 2012 Q4 2012 Q1 2013e
Source: CMMS 2012 30 After one quarter, no noticeable changes were found in time spent on different media
Amount of time spent on different video websites
2.4%
2.5% youku [Video Websites] 3.8% 8.6% iqiyi [Broadband TV] 19.4% 3.9% sohu [Video Websites]
tudou [Video Websites] 6.4% letv [Broadband TV] 16.8% pptv [Online TV] 10.6% xunlei [Broadband TV] qq [Video Websites] cntv [Online TV Station] 12.0% 12.1%
ifeng [Video Websites]
Others
Source: iUserTracker February 2013 31 As the industry moves forward, mainstream video websites have accepted collaboration agreements in order to attract more users
Q2 2012 -Youku and Tudou merge
19 % + 12 % share in the desktop market
Q2 2013 – iQIYI acquires PPS 7% +1% share in the desktop market (PPS also possesses top-notch mobile video apps)
Q2 2013 – Sogou and PPTV discuss possible merger, both have alrea dy begun sharing material) 2% + 6%potential share in the desktop market
Source: Techinasia, People’s Daily, 32 South China Morning Post Mobile videos
33 MOBILE
Due to the ability of mobile phones to stream videos while using wi-fi without being restricted by data plans, mobile video applications have gained widespread usage
Top ten used apps (in millions of minutes)
QQ UC Mobile Browser WeChat Sina Weibo QQ Mobile Browser PPS Audio/Video PPTV Web TV 360 Battery Saver Qiyi Video Taobao 0 5000 10000 15000 20000 25000
Source: iResearch 2013 34 MOBILE
Youku and other video platforms encourage the simultaneous use of phones with other online devices when watching videos; linking with the mobile video market
. The QR codes found in every video allows users to continue watching the same footage on their phone or computer
. HTML5 allows for the possibility of using browsers without video plug-ins
Source: Youku 2013 35 MOBILE
Many Chinese video websites look at 2013 as the advent of profiting from mobile video
Q22013 At the end of this April, iQIYI released a multi-platform advertisement system, with support for computer, IOS and Android systems
+ Youku and Tudou also released advertisements geared at mobile phones in April
Q32013 The latest profit report from Sogou's management team reveals that it plans to release mobile advertisements by Q3 of this year
Source: Technode 36 Viewpoints on videos
37 In-stream advertisements showed before videos are just one type of video advertisement; various formats can be used to achieve different goals
•In-stream advertisements showed before popular videos can bring high click-through rates, but are also very expensive •Pause advertisements may not be very interactive, but they can also promise good click- through rates •Although click-through rates for skippable advertisements are relatively low, they ensure strong interaction with interested consumers, while reducing the number of uninterested ones •Leftover bandwidth on video networks can be used to provide monitored and inexpensive brand exposure, as well as appropriate click-through rates •Investing in and testing the effect of your brand in mobile videos
38 Regardless of whether going through sponsorships, integration or other methods, brands can directly participate in programs
.Integrating with a program ensures brand exposure regardless of wherever the program is played, but at the cost of losing click-through options to guide viewers to e-commerce platforms for said brand .Sponsorship and content cooperation are all possible
39 Social networking media
40 Chinese social media boasts extremely high coverage and participation rates
The popularity of social media among netizens over the past six months 91% 67% 30%
China US Japan
Average time spent daily on social media
minutes 46 minutes 37 minutes 7 China US Japan
Source: McKinsey – China‘s Social Media Boom 2012 41 With the majority of users moving to mobile devices, the coverage of social media websites for laptop and mobile computers has somewhat decreased
Coverage rates for top ten social websites 90.00% 80.00% 70.00% 60.00% qq QQ [SNS Channel] 50.00% baidu [Community] 40.00% Weibo[microblog] 30.00% qq [microblog] 20.00% sina [Blog] pengyou [Vertical SNS] douban [Vertical SNS]
renren [Vertical SNS] 10.00% tianya [Community] 0.00% mop [Community] 2012-09 2012-10 2012-11 2012-12 2013-01 2013-02
Source: iUserTracker February 2013 42 Users who still access social media via desktop and laptop computers have also been visiting said websites less and less, with the largest difference among QQ Space users
Time spent on top ten social websites QQ [SNS Channel] The amount of time spent on primary social media 1,600,000 platforms fell a whole 21% in just one month baidu [Community] 1,400,000 weibo [microblog] 1,200,000 qq [microblog] 1,000,000 sina [Blog] pengyou [Vertical SNS] 800,000 douban [Vertical SNS] 600,000 renren [Vertical SNS] tianya [Community] 400,000 mop [Community] 200,000 0
2012-09 2012-10 2012-11 2012-12 2013-01 2013-02
Source: iUserTracker February 2013 43 Mobile social networking
44 MOBILE
The popularity of social media on smart-phones is higher in China than in developed countries
97% 67% 63% 80%
*Penetration among smartphone users Source: 45 Google Insights 2012 MOBILE
Chinese users frequently visit mobile social networks Rates users use smart-phones to access social media networks
Daily Weekly Monthly Less than Monthly Never 100% 90% 80% 70% 60% 50% 40% 30% Daily access 10% 0% 20%
China France Japan US
Source: Google Insights 2012 46 MOBILE
There is also more participation in social networking
Rates users use smart-phones to share information on social networks
Daily Weekly Monthly Less thanMonthly Never 100% 90% 80%
70% 60% 34
50% 24 40% 21
30% 23 20% 47 10% 32 34 21
0%
China France Japan US
Source: Google Insights 2012 47 MOBILE
QQ, WeChat, Sina Weibo and other social media are where most of mobile device users spend their time Top ten used apps (in millions of minutes) QQ
UC Mobile Browser Over 300 million WeChat users WeChat only use its mobile version Sina Weibo
QQ Mobile Browser
PPS Audio/Video
PPTV Web TV Traffic generated by Weibo's 360 Battery Saver mobile version exceeds that of its Qiyi Video desktop version; 72% of users use both versions Taobao
0 5000 10000 15000 20000 25000
Source: iResearch 2013, Tencent January 2013, Sina Q2 2013 48 MOBILE
WeChat, Momo and other mobile-specific social media platforms have proven themselves to be more competitive than the desktop versions of Sina Weibo, Renren and QQ Space Time spent monthly on the top five social network apps (millions of hours) 500
400
300
200
100
0Aug. Sept. Oct. Nov. Dec. Jan. Feb.
WeChat Weibo Renren QQ zone Momo
Source: iResearch - mUserTracker 2013 49 MOBILE
In reality, WeChat and microblogging possess a lot of similarities in their commercial aspects Commercial comparison of WeChat and microblogging
Unique content-created ‘advertising’ mode Brand publicity Innovative premium content and opinion-leading publicity model
Relatively simple model with possibility of further diversification in the Interactive Multiple model, open and innovative cooperation futureInteractive sales sales
Automatic reply function, however the majority of User Use of application interface as well as third-party tools to strengthen user features have specific costs services service
Suitable sales for noticeably-positioned users Marketing Strongly increases brand influence and sales
Crisis Hard to look for problems, but able to effectively resolve them assessment Monitoring done by third-party software, official and public relations accounts used to resolve problems
Tools possess a great deal of potential, similar to online focus groups Research and Salespeople can use social data to analyze inspiration can be found from 'messages innovation microblogbuzzes to retrieve valuable information
50 MOBILEMOBILE
85%of mobile social network users have participated in brand publicity campaigns
Source: ZO Mobilization of Social Study 2012 51 MOBILE
70% of users who have participated in brand activities have been left with a favorable impression of said brand
Source: ZO Mobilization of Social Study 2012 52 MOBILE
Men are attracted to brand campaigns that they have something in common with, while women are more steadfast about their own opinion and are more susceptible to activities involving prizes What attracts you to brands on mobile social networks? Most common motivating factor Influence Most common motivating factor Influence Men Women Shared experience with Internet Shared experience with Internet 1 friends 1 friends Fondness for the brand in question 2 2 Expression one’s own opinion 3 Approval of brand reviews 3 Fondness for the brand in question Helping others and offering Being able to win prizes 4 suggestions 4
Source: ZO Mobilization of Social Study 2012 53 MOBILE
Videos, pictures and polls drive men to interact with a brand
The most common formats for brand-related interaction over the past six months
Videos
Pictures
On Jiepang I shared some local activities, as well as information regarding Polls “ Xperia and other Sony products. Occasionally I will post pictures and videos regarding new phones or merely discussing their functions. - Riki "Xiaozhu" (male) Free trials ”
Source: ZO Mobilization of Social Study 2012 54 MOBILE
However when it comes to women, actual usage and prize campaigns are key
Benefits
Discounts
Of course my shared posts are for prize campaigns; one time I participated Sales non-stop and even managed to win a few times. Most [of the prizes] were “ cotmerics, but there were also books and even one time I won an SLR camera “Linxiaoyi" (female) Prize drawings ”
Source: ZO Mobilization of Social Study 2012 55 Viewpoints on social media
56 The influence of mobile phones on social network strategies exceeds the expectations of most brands
.Your communication strategies must take mobile phones into account as a part of social network statuses; when beginning planning work you should first consider mobile phones and think about how they connect to computers, not vice-versa.
.When releasing Internet advertisements also simultaneously work on mobile advertisements to release in social networks
.When cooperating with opinion-leaders, do not underestimate the value of the mobile content they can provide
57 Searching
58 Searching is part of every netizen's Internet experience, with 80% of netizens using search engines
Search engine users
The number of search engine Internet users utilization
80.0% 500 80% 450 79.4% 451.1 75% 400 70% 350 407.4 65% 300 60% 250 55% 200 50% 150 100 50 0
Source: CNNIC Jan 2013 59
2011
2012 Baidu is still the leader in monthly search visits however at the end of 2012, 360 began to make a rise
Monthly visiting rates for search engines
100% 90% 10.8% 10.6% 12.4% 80% 11.3% 12.0%
70% Others (Net) 60% google 50% soso
40% 76.2% 77.5% 78.4% 76.7% 76.7% sogou 30% 360 20% baidu 10% 0%
2012-08 2012-09 2012-10 2012-11 2012-12 2013-01
Source: iUserTracker January 2013 60 Following cross-platform integration, competition between search provides is becoming even more fierce
. Qihoo .Sogou (search method integrated with its Chinese input method) Was able to achieve a coverage rate of over 10% Possesses great potential due to integration of its in a very short amount of time, but has not made Chinese input method and real-time searches. Sogou any significant gains since last quarter. This is input methods are the most common Chinese input due to how it attracts users to its search engine: method software. Able to dramatically reduce time by relying on traffic from its browser and other searching, collecting information and even shopping applications. online
61 By connecting with e-commerce, 360.etao.com combined Qihoo's search engine with Alibaba's e-commerce search engine eTao
Source: Techcrunch 62 New search functions like the ability to showcase product photos are able to produce higher click-through rates and conversion rates
63 Mobile phone searching
64 MOBILE
The amount of searches done on mobile devices is rapidly increasing
Coverage rate for searches done by mobile netizens The amount of users conducting mobile searches 350 69.4% 70% 300 60% 62.1% 291.38 50% 250 40%
200 220.81
150 30% 100 20% 10% 50 0%
0
2011 2012 Users (millions)
Source: CNNIC Jan 2013 65 MOBILE
Since 2010, Baidu's mobile searches have grown eleven-fold
11X
1X
2010-1 2010-5 2010-9 2011-1 2011-5 2011-9 2012-1 2012-5 2012-9 2012-12
Source: TechinAsia MOBILE
China's mobile netizens use mobile searching more than those in developed nations
Rate of search engine usage on smartphones
Daily Weekly Monthly Less thanMonthly Never
100% 90% 80% 70% 60% 50% 40% 30% 68 65 62 20% 49 10% 0% China France Japan US
Source: Think With Google – Our Mobile Planet 2012 MOBILE
Mobile phones, done interactively with television ads, magazines, stores and outdoors media, boast a wealth of opportunities
The amount of users who did a related search right after watching a TV ad in the past week
50% 27% 10% 18%
China China Japan US
Source: Think With Google – Our Mobile Planet 2012 MOBILE
Mobile searching has the potential to change consumer decisions when shopping in stores and online
The influence smartphones have on purchasing decisions
Intentionally take smartphone to research products smartphone Changed mind about in store purchase 60 Changed mind abouot nline purchase 50 40 30 20 10
0
China France Japan US
Source: Think With Google – Our Mobile Planet 2012 Viewpoints on searching Searching can use new platforms and cross-media to create new advantages
.If hoping to increase coverage via a new search campaign, one should consider using Qihoo 360 and Sogou, which combined possess a share of approximately 20% in the search engine market.
.China's search engines are trying very hard to incorporate e-commerce into their product lineups. 360 and eTao's integration has greatly boosted its flagshipTmall brand
.Search engine users' searches originate from non-digital channels (such as television). Going from television to searching allows these two different media to achieve integration.Likewise, adding an 'as seen on TV' label to products links online can help boost the amount of visitors to the product’s website
.When considering mobile phones, employ strategies that involve online searching and of fline purchasing instead of those that revolve around directly buying products with thephone. Favorable user reviews can increase purchasing opportunities. E-commerce E-commerce's total sales volume is expected to at least double in 2015
millions of RMB 3000 Total volume of transactions Growth 140% 2500 128.8% 2,551 120% 112.9% 100% 105.2% 2,012 2000 80% 1,569 60% 1500 40% 75.3% 66.3% 1,184 20% 1000 32.5% 28.3% 26.8%0% 263 767 54.5% 500 56 128 461 0
Sources: iResearch 2011-2012 China E-Commerce Report Which is of benefit to the increasing number of netizens shopping online…
Chinese users taking part in online transactions
Million
450 423.4 400 374.9 350 322.1
300 270.9 250 219.8 200 178.4 150 100 50 0
2011 2012 2013e 2014e 2015e 2016e
Source: eMarketer January 2013 …as well as the stable growth of individual consumption
Average amount of money spent annually online (RMB)
7000 6,382 6000 5872 5000 5233 4000 3000 4115 2000 3077
1953
1000 0
2011 2012 2013 2014 2015 2016
Source: eMarketer January 2013 All types of products are available for purchase online
Goods bought online in China by type
Apparel Computers, communication and consumer 47.2% electronic products 13.2% Shoes and bags Furniture Cosmetics Books and optical media Misc. 7.7%
5.0% 3.1% 4.9%
Source: iResearch 2011-2012 China E-Commerce Report The market share held by B2C (business to consumer) transactions is growing; at the end of last year is accounted for 1/3 of all transactions The ratio of sales volume covered by B2C (business to consumer) and C2C (consumer to consumer) transactions
100% 7.8% 13.7% 80% 23.5% 29.8% 33.8% 37.8% 40.7%
60%
92.2% B2C 40% 86.3% 76.5% 70.2% C2C 66.2% 62.2% 59.3% 20%
0%
Source: iResearch 2011-2012 China E-Commerce Report Purchasing behaviors for B2C (business to consumer) and C2C (consumer to consumer) are very different
Online buyers using the B2C Online buyers using the C2C model tend to… model tend to…
•have a general idea of what kind of •already know specifically what brands product or category of products they they want; honestly is very important want to buy but don’t have a particular to them brand in mind •are willing to spend more for •are usually very frugal convenience •are more willing to spend time •spend less time on detailed browsing browsing multiple online shops and websites until making a decision Alibaba purchased a 18% stake in Sina Weibo, which led to the appearance of Taobao advertisements on Sina platforms On tuan.weibo.com, users can directly browse daily transactions using the same interface without making known whether or not they following the account On tuan.weibo.com, users can directly browse daily transactions using the same interface without making known whether or not they following the account Mobile e-commerce MOBILE
Compared to users in other countries, Chinese smartphone users boast a higher usage rate for mobile e-commerce
59% 39% China Japan
France25% 35%US *Base: Smartphone owners Source: Think With Google – Our Mobile Planet 2012 MOBILE
The amount of sales coming from mobile phones in China is expected to exceed that of the US
Mobile e-commerce sales in China and the US (millions of USD)
China USA 45 41.4 40 35 30 27.1 25 31 20 17.2 23.7 15 11.6 10 15.7 6.7 5 3.5 0 7.8 0.4 1.8 2010 2011 2012(e) 2013(e) 2014(e) 2015(e)
Source: iResearch China Mobile Commerce Report 2012; New Media Trend Watch 2012 MOBILE
The market share held by purchases done on mobile phones will continue to maintain stable growth Ratio of e-commerce profits by device used
11.7% 0 .5% 1.5% 4.2% 8.1% 100% 15.1% 17.8% 90%
80% 70% 60% 99.5% 98.5% 95.8% 91.9% 50% 88.3% 84.9% 82.2% % Mobile Device 40% % PC
30% 20% 10% 0% 2010 2011 2012 2013e 2014e 2015e 2016e
Source: iResearch 2012 China Internet Economy Report MOBILE
Because Taobao applications are very popular, especially on IOS systems, Taobao's holds the leading share in the mobile phone market Shares in the mobile e-commerce market
OUT 0.7% 4 OF 5 Taobao platform 0.7% 0.6% Jingdong 3.6% Four-fifths of mobile transactions Tencent 5.2% 14.0% on Amazon China Taobao are done using IOS Dangdang system devices 75.2% Suning Others
Source: iResearch Q4 2012, Taobao MOBILE
Purchasing transactions done by mobiles is usually focused on
apparel, skincare, jewelry and electronic products
2805 792 Apparel 60 Cosmetics Every 60 seconds 428 spend on Taobao 104 Shoes via a mobile device Household electronics
450 314 300 Accessories Child care products Electronic products
Source: Alibaba 2013, Singles’ Day sales Viewpoints on e-commerce Viewpoints on e-commerce
When first beginning, start from the transaction process: such as combining searching and advertisements and other effective sales techniques with website advertisements
Much like throwing a stone over a river, one should be prepared for both success and failure, but don’t be quick to believe that failure means that a medium has a problem; it is possible that you need to reconsider other methods.
Be aware that even if the Internet doesn’t bring in new sales, it doesn’t mean that such sales won’t occur in the future; they may occur in platforms that you aren’t monitoring. Invest effort into understanding the driving force and influence that e-commerce advertisements have on consumers during the purchasing process. Mobile games MOBILE
One of the major activities mobile netizens engage in on their phones is playing games
43% of mobile users play games Comparison of activities mobile netizens engage in on their devices
10% 22% Information and other searches 12% Entertainment Games 18% 20% Social networking E-mail Shopping MOBILE
Recreational games are especially popular
Coverage of major mobile games by genre by percent 60.9%
33.5%
17.8% 15.9% 14.9%
Recreational Action RPG Sports Strategy Shooting/FPS MOBILE
As HTML5 games start appearing on WeChat, there is now opportunities for the integration of simple entertainment with richer brand information
Source: TechinAsia Chinese travellers A hot topic in digital consumption
Digital lifestyles have managed to tie in with the increasing numbers of Chinese travelling overseas and subsequent tourism opportunities. Activity on travel websites is not limited to booking hotels and ordering tickets, but also has many interactive and social networking factors. Digital media is playing an increasingly important role in travel. In this section we will take a deeper look into the development of travel websites. More and more netizens are booking tickets and making their travel plans online
Amount of travel website users
Amount of travel website users
19.8% Booking train 14.0% 140 20% tickets online 120 18% 100 16% Booking plane 80 14% 9.0% 12% tickets online 8.2% 60 10% 8% Booking 7.2% hotels online 40 6% 20 4% Making travel 2% 5.4% 0 42 112 0% plans online
2011 2012 0.0% 5.0% 10.0% 15.0%
Sources: CNNIC Jan 2013 There are many specialized travel websites providing specific services to choose from
Coverage rates of major travel websites
12306 (train ticket booking) 36.1%
qunar (travel/plane ticket booking) 29.7%
ctrip.com (travel booking) 18.4%
(travel information) 12.8% 17u.com
(travel 6.1% booking) elong.com 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Sources: iUserTracker 2012 Chinese travelers are increasingly relying on the Internet, regardless of whether they are using it before their trip or afterwards
Beforeembarking During the trip After returning home on the trip
•Vertical travel websites •Vertical travel websites •Vertical travel websites •Finding travel plans consultants •Acquire real-time advice and help; access •Share your travel experience and photos, as and other matters of importance; activity livefeeds well as matters of mportance with others looking for travel companions •Microblogging •Travel rating websites •Travel rating websites •Write journals in real-time, which •Rate locations, hotels and other •Finding personal reviews for also includes sharing photos and updating aspects of the trip tourist destinations, hotels and statuses •Microblogging other experiences •Jiepang •Share your experience and photos •Group buying websites •Share your current location and with others •Travel groups purchase packages destination with others •Ticket ordering/hotel booking websites •Booking plane tickets and hotels
Source: CIC 2012 IWOM Travel Special Edition MOBILE
When it comes to highly-directed consumers, mobile devices provide relatively valuable opportunities
On the popular website Qunar.com, 6% of users use mobile devices to book their journeys
However, they account for over 12% of the website's revenue Our view is that communication between brands and consumers getting ready to embark on their voyages provides excellent opportunities
Airplanes or trains
Shopping Hotels Bags
Fine cuisine Watches
Photography Cosmetics
Spirits Thank you!