From Trendstream: One is the biggest developing market while the other is the most mature market, the factors that influence the purchasing desion of the consumers in these 2 markets are slightly different. Compared with the Americans, Chinese seem to be easily convienced by the country’s leader, well known company and famous bloggers, etc. What’s interesting is that there are about 15% Chinese people who are willing to trust a stranger in a bar.
From Trend Stream: Among five Asian countries, netizens have different purposes while they stay online. It is interesting that netizens in China & Australia enjoy being connected with friends through the internet while netizens in Japan & South Korea share the almost same motivation: researching/ purchasing.
Sources: BCG Digital Generations Consumer Research, 2009; Business Insider; BCG research.
Note: NA means not available.
1 Includes travel booking, e-payments, and e-shopping.
2 “Other” in India represents sports (57%), e-greetings (57%), and dating and friendship (51%); in Russia it represents weather forecasts (67%).
3 At least 10% higher than the average level across all countries.
From BCG‘s report The Internet’s New Billion: IM utilization dominated among all the internet engagements in 2009 and it demonstrated that netizens in China were enjoying communicating and sharing info through internet, especially the various kinds of IM tools. Closely after IM were the entertainment & information acquisition demands.
From Plus 8 Star‘s Social Media in China: Different Than You Think: Though operators of farming game in SNS in China keepChin complaining of the decline of profit, the number of online farmers remains considerable. Furthermore, farming game brings considerable traffic as usuall and it will not phase out in a short time.
From Colour Lovers: An amazing aggregation of the world’s top 100 prestige brands. Anyway, besides the No.71—Tudou.com, it seems there is no other influential brand from China! In the forum of littleredbook there is a twin of this picture. Click to check the more detailed version if you are interested.
- The Most Powerful Colors In the Web [Web] (gizmodo.com)
- The Most Powerful Colors in the World (colourlovers.com)
- The Colors of The Web’s Superbrands [INFOGRAPHIC] (mashable.com)
- Red and Blue Still Dominate Web Brand Colors (futurechanges.org)
- Revealed: the colour of the social web is the colour of Twitter (guardian.co.uk)
- Global Business Color Identities (colourlovers.com)
- New Web to Print Design Online and Print Management Features Help Increase Conversions for Printing Websites (prweb.com)
Data from Holaba: Holaba.com is a site speciallized in aggregating comments on different prestige brands in almost every business field in China. The resource of this graph comes from its poll function (see the screenshot below) which has now ranked Qzone (Tencent) as the 1st SNS in China.
- Social games help drive growth for China’s Tencent network (games.com)
- Analysis: Facebook could be social pariah in Asia (reuters.com)
- Facebook could be social pariah in Asia (theglobeandmail.com)
- Tencent Buys Google Backed Chinese Portal (webguild.org)
- F-U Tencent! (thedarkvisitor.com)
- Copying is not the future of social games, unless you’re a Chinese social network (games.venturebeat.com)
From GWC‘s Report Chinnovations on The New Media: Due to large number of users, in 5 years time Tencent has already become the 3rd internet company, after Google & Amazon onChina’ market cap. The ferocious increasing speed just leaves Google & Amazon far behind.
From GWC‘s Chinnovations on The New Media: Compared with the distrustful attitude towards online payment several years ago, netizens have become mature when they are dealing with e-commerce. And this engenders the booming development of e-commerce in China.
From GWC‘s Chinnovations on The New Media: Though Facebook is pretty hot all over the world, this statistical picture has just revealed a fact: Tencent is overtaking it on subscribers, revenue, net profit and market cap. With the generalization of internet in China, the local superiority of Tencent will become more obvious.
From GWC‘s Chinnovations on The New Media: Leave Google aside, the margin of the rest of the global players seems to be weaker than that of the China internet companies. And in China, NetEase & Tencent have shared the largest portion of the internet market collectively.
Form OgilivyOne Worldwide’s Frands : In January 2010, Youku was ranked #1 in Chinese Internet video sector according to Internet metrics provider CR-Nielsen. If the commercial has been executed well , the campaign will go with a favorable start.
From CNNIC’s 26th Statistic Report in July, 2010, we can discover that the IM penetration rate still dominates the utilization of mobile. Anyway, acquisition of information & entertainment follows quite closely behind it.
Dragon Trail’s China Travel Social Media Marketing Report: This graph shows intuitively to us that compared with people in other countries, Chinese are much more easily influenced by the internet; comments & reviews.
Form OgilivyOne Worldwide’s Frands: Taking the lion’s share of IM users, QQ occupies the 1st rank with no doubt. While chatting with friends, netizens share their reviews or opinions spontaneously affecting both personal and commercial actions.
From Sinotech Group’s Buzz Generation: The report indicates that in every single day, or even every single hour, a new conversation will take place and it may engage millions of netizens in a ferocious speed if the topic is luring.
Chosen from Nielsen‘s APAC Social Media Report(June, 2010);
Personal & Communities will soon surpass traditional China network channels: Search Engines & Directories and Portals. Nowadays China netizens prefer to share their experience with their friends through the internet.
From McKinsey‘s Mesuring of WOMM (Word of Mouth Marketing) Report (June, 2010):
As ordinary customers in one of the greatest developing markets around the world, Chinese consumers’ purchasing decisions are easily influenced by the reviews or recommendations of their friends. That’s why WOMM is more and more valued by both prestige & common brands in China market.
Due to the worry that “negative posts will be deleted” on official company sites leading to failure to express their opinions freely, China consumers prefer to use the third party BBS for objective discussions about the product they are going to purchase or they have already owned.
This illustration is chosen from Nielsen‘s APAC Social Media Report (June, 2010):
The 4 dominators are colored brown and they are:
A graph from Frands Report from OgilvyOne Worldwide:
It is obvious that China’s netizens spend a lot of time and energy on the aquisition of information. The second is to communicate with friends and search for news. The graph above gives an excellent view of China netizen social media activities.
Picked up from Edelman‘s China Digital Brand Index:
During the period of 2010 FIFA World Cup which has helped drive a record of amount of social media traffic, Samsung worked with 3 major portals including Sina, Sohu and Tudou.com to launch social ads and initiate online competitions. As a result, Samsung became the buzziest brand in China.
Adopted from ADMA Digital Marketing Yearbook 2010
Just as being conjectured before, WOMM (Word of Mouth Marketing) becomes the most important & effective approach for branding campaign in China, maybe also around the whole world.
China netizens prefer to share their reviews or experience through internet in recent years, and they have changed from discussing simple topics, to becoming active participants in all things digitally social. From discussing topics through BBS, to discussing their lives on IM, and expanding their friendships through social networks, as in the West Chinese have evolved their online interactions; albeit through completely different networks than their western counterparts.
Today we are going to talk about the most popular search engines in China.
Before we start, let’s see something about SEO which matters a lot in China internet marketing. A quick definition of SEO: Search engine optimization (SEO) is the process of improving the visibility of a web site or a web page in search engines via the “natural” or un-paid (“organic” or “algorithmic”) search results.
So how does SEO relate with business in China? Have a look at CCDI’s Report on Investigation of Chinese Internet Marketing Service Condition which covers more than 1800 companies in 18 cities. In China’s developed areas there are 80.97% companies already using some form of internet marketing; and the backbone of internet strategy in China is SEO.
CNNIC (China Internet Network Information Center): in 2010, the utilization rate of search engine reaches 76.3%, an increase of 3% compared to 2009; presently, the number of search engine users reaches 320 million and the half annual growth rate is 13.9%.
According to China Intelli Consulting Corporation the penetration rate of search engine keeps increasing and 91% of China’s netizens will use it at least once a month, 4% higher than last year. Furthermore, every single day, 58.8% of netizens will use search engines, 4.4% higher compared to last year. This is why so many Chinese companies do SEO work and why foreign business people pay more attention to these search engines.
From CIC, China’s netizen’s preferred activities online.
We see a distinct preference for Entertainment driven activities, followed by events and lottery. China’s social environment, both online and offline push emphasis for low-cost methods of interaction on the web, be it social or entertainment driven.
This leads us to rewards for interaction. China’s netizens tend to be practical, rather than gaining knowledge, they look to getting cash or gifts, or free product trials.
When Brands plan campaigns, its important to take into account what drives the average Chinese netizen; while there is connection and engagement with the Brand, this doesn’t come without addition costs in the form of rewards. while China’s market is not unique to rewards for interaction, it may be unique in its emphasis of the tangible over the intangible.
From Synovate China Media Atlas; Chinese activity by income levels.
Upper income leveled Chinese lead digital engagement; with top information searched being financial this gives insight into China’s psychographic priorities.
From China Daily:
For the first time in history, Chinese Internet users have produced more content than professional websites.
Hu Yanping, of the Data Center of China Internet (DCCI), said the era of Web 2.0 has officially overtaken Web 1.0 as the amount of content generated by personal users on blogs, online forums, social networking sites (SNS) and question answers exceeded the amount contributed by professional organizations in news, search engines and e-commerce.
In the first half of this year, the content produced by Chinese Internet users accounted for 50.7 percent of the total, and content produced by professional websites accounted for 47.3 percent, according to statistics released by the Beijing-based DCCI on Thursday.
In the first six months, page views (PV) of SNS accounted for 50.1 percent of the total page views of all Web applications and services, according to statistics from DCCI. Page views of information providers kept decreasing to 8.8 percent of the total, the report said.
Also, Internet users lingered longer on video sites and SNS for entertainment than reading news or seeking information.
The Internet monitoring and research company also predicted that China’s Internet population will reach 469 million by the end of 2010, accounting for 35 percent of China’s total population, and the number will hit 718 million by 2013, accounting for 52.7 percent of the total.
Related articles from around the web.
- Some Internet porn sites in China now accessible (seattletimes.nwsource.com)
- Chinese Internet Companies Restrict Twitter-Style Services (nytimes.com)
- Hand-held devices fuel China’s Internet use (calgaryherald.com)
- Dozens of outspoken, popular blogs shut down in China; microblogs face new restrictions (taragana.com)
- China Restricts Its Own Twitter-Style Services (nytimes.com)
From Synovate China Media Atlas; channel preference of higher income’d Chinese.
Higher income’d Chinese tend to prefer Internet channels vs. all other available channels. While outdoor and TV are strong, expect offline channels to lose ground to digital communication medium; primarily due to low-cost and easy access vs. other channels.
Complied by L2, the below graph shows brand buzz on one of China’s most popular SNS sites RenRen.com (a Facebook clone) and Qzone. From this we get a pretty good idea of buzz in English and Chinese, but further, we get a sense of populations across these social network sites.
You could almost see these two networks as reflective of tier1 cities (Renren) and below tier one cites. Population on Renren tends to be more educated, evidenced by English speaking ability taught in high school and college, vs. lower tiered cities that show less education, but greater overall population.
However, education isn’t necessarily an indicator of wealth; and its definitely not correlated to dreaming about wealth. China’s netizens think in parallel about major brands with BMW, Mercedes, and LV at top of mind as status symbols.
Related articles from around the web.
- China’s RenRen Social Network Introduces Social Gaming (socialtimes.com)
- New Features: New Services (including QZone and Vkontakte), Desktop Support, and 32 x 32 Icons (addthis.com)
- How Facebook plans to get to its first billion (social.venturebeat.com)
- Analysis: Facebook could be social pariah in Asia (reuters.com)
- How will China’s tech-savvy, post-90s generation shape the nation? (cnn.com)
- China’s top four social networks: RenRen, Kaixin001, Qzone, and 51.com (digital.venturebeat.com)
A survey of China’s prestige brands by L2 reveals interesting findings.
Amazing stats are 20% Brands focused on Chinese consumers that do not have a Chinese language website. While its understandable that ecommerce isn’t enabled for many sites due to issues spanning credit cards, trust purchasing online, as well as monster Taobao.com eating up about 75% of all ecommerce in China – it’s a complicated issue to say the least.
However what’s not complicated is localizing your website into Chinese; that one seems to be an oversight, and its interesting to see that many brands haven’t ticked this initial box. There is a lot of room for improvement, and a lot of room for growth.
According to BCG, China’s young professionals are quite digitally connected; however, when we scan their days we see a distinct difference in the manner they regard digital tools.
Key element is using digital primarily as a communication device; while younger teens and university students focus on social sharing, communication, MP3 downloads, etc – young professionals take a more practical approach to digital. That’s not to say its any less a part of their lives; we can venture to state that digital is more of a tool than a companion.
We see some integration of email, sms, digital news sprinkled throughout the day; digital, rather than being the goal of actions, is a simple means of enhancing actions.
From CIC, we can track the buying process Chinese netizens progress through before the buying decision is made.
Tracking the decision process for purchasing a netbook, we can see how the initial inquiry arises, and how a Brand is selected from the buzz. Netizens value collective opinion first, and then look to popular advocates second to confirm their decisions. Afterwards, netizens refer back online for maintenace and upkeep of their new purchase.
The relationship between products and the web is quite clear, while TV, newspaper and magazines may create awareness for Brands, its the web that creates engagement through social community from everything to popular opinions, review, recommendations and upkeep information.
This opens up new avenues of strategy for brands such as creating presence on BBS and forums where products are discussed, in addition to working with blogger advocates to help promotion of products.
Nielsen’s recent social media report release gives great insight into the region; but let’s focus on China specifically.
Some of the key elements to note; of which we’ve discovered through our own campaigns; is that BBS’s dominate China social media, and this is where buzz campaigns and engagement are typically generated.
Looking deeper; social gaming is an excellent, through very expensive alternative to engagement on BBS, and the use of online celebs and bloggers are a common staple in a social media campaign diet.
Chinese being more likely to write a negative review is also quite true; though we’ve found they tend not to be as negative as those found in the west; so while overall quantity of negative comments are high; the overall depth of the negativity isn’t.
From Nielsen’s press release:
- All about BBS, not the SNS: Bulletin board systems underpin popular social media behaviour in China – over 80 percent of social media content is bulletin board systems.
- Revenue from Social Games: Social media games are used as a stimuli to drive new users and gain reach with existing users, while content sharing behaviours are more popular among the more experienced users. Virtual product placement within social networking site games is becoming one of the most profitable methods of revenue for social networking sites, generating between US$200,000 to US$500,000 per month on product placement.
- Online Celebs are hotter than offline: ‘Grass roots’ celebrity tracking dominates online conversations in China, with grass roots celebrities such as Phoenix Sister and Mr Yuan outperforming real life celebrities in popularity.
- Chinese are negative: Chinese Internet users are the most likely in Asia Pacific to post a negative online product review, and are the only consumers in the region more likely to share negative reviews than positive reviews – 62% of Chinese Internet users say they are more likely to share a negative review compared to 41 percent globally.
Related articles by Zemanta
- Social Networking Habits Vary Considerably Across Asia-Pacific Markets (searchenginewatch.com)
- Leaders in social networks usage: Australia by time, Brazil by reach (rossdawsonblog.com)
- Is McKinsey and Nielsen’s social media division a backwards step? (simoncollister.com)
- Nielsen: Social media use increased by 24 percent (sfgate.com)
- Marketwire Buys Social Media Monitor Sysomos (paidcontent.org)
- Social networks and blogs influence buyers (newstatesman.com)
- Nielsen and McKinsey form Joint Venture to Help Companies Use Social Media Intelligence for Superior Business Performance (eon.businesswire.com)
- Social media and China: What you need to know (smartblogs.com)
According to BCG, below is the day in the life of a typical Chinese teen, as it pertains to digital tools. As we can see from a quick glance, China’s youth are very connected digitally throughout their days.
Another clear theme is schoolwork and study; China’s youth are in an ultra competitive environment, and success hinges on their academic prowess; digital tools then, in a sense, help to relieve the solitary confinement of study, either by opening quick windows allowing for social communication and sharing, or by allowing a few moments of peaceful escape.
According to research compiled by L2, China’s luxury market is about to explode.
Interesting to note is the age groups of luxury buyers. China’s unique historical circumstances come into play, with 80% of luxury buyers under the age of 45. This makes luxury branding in China require a distinctly “young/modern” feel vs. the US and Japan.
With such large potential looming in the near future, luxury brands are beginning to enter the market in force. Whether they will succeed will be a careful balance between their brand values, Chinese taste, and their ability to localize their message and cost effectively communicate that message to Chinese audiences.
We can expect digital campaigns to be a large part of luxury brands entrance into China; we’ve seen evidence of this already from Lancome, Porsche, BMW and others.
Sohu had just launched a group shopping site – tuan.sohu.com, which made Sohu the first portal site that joins the group buying competition in China. As reported, the site currently only offers single-product group shopping services in Beijing, which is very similar to other group shopping sites.
The data showed that there are approximately 400 Chinese group shopping sites launched in the last three months. The key reason for the booming is because of the low standard in terms of qualification, several-thousand-Yuan investment would be enough for an easy start-up.
Some experts believe that since the group shopping sites phenomenon has just started in China, Sohu is obviously seeking the chance to take lead.
From Synovate China Media Atlas; activities after online communication.
Once communication occurs through online channels, Chinese will tend to search the web first; alluding to the importance of word-of-mouth and presence across a great number of Chinese websites to create positive impression and suitable information to information seekers.
Before Chinese netizens purchase products, do they go online to check what others say? According to CIC they certainly do.
Topping the list are mobile phones; followed closely by consumer electronics. Seeing as how mobile phones are owned by everyone (thereby more people searching/reviewing), as well as how China’s youth identify with their phones as close friends, it’s no wonder that this product tops the charts. Before the buy, China’s netizens want to make sure they are buying the right phone, with the right message to their social groups.
The bigger picture beyond mobile phones is China’s netizens rely heavily on peer to peer communications before making important “buy” decisions online. This being that case, it is important for brands to be every where consumers make decisions, if they’re to have impact in this ultra competitive landscape.
Resonance is a China digital, social media agency. We design digital relationships for the world’s best lifestyle brands across China’s most popular mobile and social media networks.
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