Data from iResearch: In October, the number of Chinese mobile users has reached 800 million and the number keeps increasing. Meanwhile, due to the reviving of the mobile value-added service market in China, the mobile internet market has risen again since the 3rd quarter of 2010. Now the market value has been estimated to be as much as 5.11 biliion RMB for the 4th quarter of this year.
From The Next Web: As now China owns more than 440 millino internet users while the internet penetration rate is only 32.6%, the dominant position of English decrease if China keeps the current internet growth rate in the coming 5 years.
Its’ an interesting work from Sina Weibo(China’s Twitter). In this map you can find most of the major sites in China’s cyberworld.
Now let’s go through it from the Desktop Software Empire(DSE) where you can find Tencent QQ & 360 antivirus, the two who have been fighting with each other a month ago. Thunder also has a place here. To the east of DSE, it is E-commerce Federation(EF), here B2C sites & groupon sites exist together.
Joy Land(JL), a place full of joy and happiness. Here we have Kaixin001, Renren, Tudou, Youku and Sina Weibo, Q-zone, Baidu Tieba, the top social networks are all here. This place is also the important battle ground for all the marketers in China.
Looking to the east and you will see the Search Continent(SC). It is supposed to be dominated by Baidu, but in fact we find 3 different search types— Baidu search engine, Taobao search, Navigating sites. Oops, the Google Island is out there, separated by the Policy Channel(ironic, but true).
In the left bottom of this map is the Portal Kingdom(PK). It’s constituted by Sina, Tencent, Sohu and NetEase, the 4 portal sites in China.
The last one in the map is Game Delta(GD), a piece of fascinated land for the youth & middle-aged people in China. We can find that Tencent & NetEase also share a considerable part here.
From Meihua Info: The graph is about the ad marketshare of the first 3 quarters in 2010 in China internet market. Baidu, based on its mighty search engine, tops in the rank. Due to the censorship problem in the beginning of this year, Google has lost partial control of China market, it follows Baidu as the 2nd in the graph.
Data from Alexa: The time of netizens spend on SNS has reduced gradually in the past 6 months. As to now, the on site time of Douban.com is around 9 min while 13 min for Renren.com and 19 min for Kaixin001.com. The SNS heat is fading in China, like the dropping of the temperature in winter.
From Jeremiah Owyang via Sam Flemming; the different social media structures set up by Western business. Interesting in general, but is it applicable to China? So far my experience is the centralized model; this is likely due to China’s fast pace and high turnover rates leading to simplified structures, especially true when the initiative is instigated locally. Larger foreign firms entering the market tend to align with the Hub and Spoke model where one centralized agency manages the activities in multiple regions executed via local vendors.
Image from Vincos Blog: From the latest data aquisition of Google Trends & Alexa, we can see that though Facebook has colonized almost 2/3 of the world’s netizens, people in China, Russia and half of South America remain isolated. As to China, there are 400 millions active QQ users(while Facebook owns 500 million users worldwide) and this leads to the dominant position of Q-Zone. Besides Q-Zone, netizens still have more options like Renren.com, Kaixin001.com, etc.. The SNS market in China now is in a fierce competition.
From Niko Partners:
1. Chinese gamers prefer the Free-to-Play (F2P) model of online games in which online operators generate revenue via the virtual economy, rather than the time-based model in which access is provided for a fixed number of pre-paid hours.
2. 63% of gamers surveyed increased their spending on online games in the past year.
3. Social Networking Sites (SNS) games have gained popularity among Chinese consumers, and 88% of the gamers Niko surveyed claim to play SNS games.
4. The primary reasons gamers with PCs at home go to an Internet café are to be social with their friends and to participate in gaming competitions.
5. At least 65% of gamers use Internet cafés at least part of the time.
6. There were 68 million online gamers in China by our definition at the end of 2009 and by 2014; the number should reach 141 million, a 15.5% CAGR.
From China Internet Watch: East coast cities (blue bar) showed high penetration rate of online shopping but the west (red bar) is a fast growing market with high potential.
Please note that the 17 cities shown above do not represent a ranking of national online shopping penetration rate; these cities are sampled in online shopping research. The trend is more useful than the absolute numbers.
Picked from McKinsey Quarterly: It is being estimated that within five years, this billion-plus user market in Asia (mostly in China) may generate revenues of more than $80 billion in Internet commerce, access fees, device sales, and so forth. Digital marketing and internet sale in China are supposed to have a vigorous growth in the coming 5 years.
On Nov, 16, 2010, Sina held a China Weibo developer conference. As the biggest blog platform in China, Sina Weibo has released data regarding platform performance since inception in 2010. Sina Weibo demonstrates how it influences Chinese netizen’s daily life; with 400 million netizens and only 50 million Sina Weiboers, Sina’s got a good first step into huge online market.
Monthly Increasing Rate of Register: 33.8%
Rate of Mobile Blogging: 38%
Number of App(Plugin) in Sina Weibo: More than 800
Blogs per Day: 25,000,000
Number of Users of Sina Weibo: 50,000,000 (Oct, 20, 2010)
Number of Partnered Sites: 10,000
Total Blogs: 200,000,000 (Nov, 7, 2010)
Blogs per Second: 785
Daily Traffice that Weibo Brings: 30,000,000
From Holaba SNS Overview: A detailed analysis of how the Chinese people in different parts of China handle Kaixin001. From the graph we can find that Kainxin001 really dominates in east & central part of China mainland. HS means Holaba Score, it is a reliable indication of the recommendation power of the SNS, or a brand.
Data from China Internet Watch‘s online shopping report (2009): 85% of the online shoppers choose C2C shopping sites as their first choice when they are planning for purchasing something. Seen from this graph we can have a clear view that Taobao has owned a large chunk of the online shopping market in China.
Data partly from Facebakers: According to the comparison we can find out which big players are now focusing in online marketing in China. One more thing is that the fans of top 5 in Facebook are much more than that in Kaixin001.
From Ogilvy PR‘s social media team: Including Kaixin001, Facebook, Renren, Douban and QQ, each of these SNS has been demonstrated by a typical user. Though Facebook is being blocked in China, people have their own approaches to access.
Following are the detailed info (via Chris Tou) of the 5 users, enjoy!
The Kaixiner (kaixin001.com)
- 32 years old with a MNC white collar job, monthly salary 12,000 RMB.
- Loves to read gossip and fashion magazines, swims and does yoga weekly.
- Long bored of stealing vegetables (Happy Farm) and is instead now “cooking” on Kaixin and will ask friends for help when they’re too busy themselves.
- Will read and write posts as well as post pictures of themselves.
- Thinks it’s more important to enjoy life than to be a success career woman.
- 28 years old British national.
- Originally came to China wanting to do PR, but is now teaching English.
- Lives in a Beijing Hutong, hangs out in Sanlitun and loves Kung Pow Chicken.
- Drinks Yanjing Beer by the large bottles, pretends to love rice wine and smokes Zhong Nan Hai (cigarettes).
- Uses an old school Nokia.
- Watches pirated movies, shops at the Silk Market for fake name brands.
- Gets over the GFW to get on Facebook to chat with old friends “back home” and uploads pictures to “show them China”.
- Can’t stand Chinglish.
- Black-rimmed glasses, thin legs, smokes, hates being called effemine or mistaken for a girl, and loves rock and roll.
- Watches art films, spends literally all waking hours on Douban.
- Loves getting real-time status updates from friends, will rate movies and write reviews.
- Streams music from Douban and has collected 1698 albums.
- Watched hundreds of bands perform and will recommend music and albums.
- Hates it when they get a Douban message and it turns out to be spam.
- Will use Douban to meet and make new friends with similar interests.
- Disappointed that there isn’t a full-featured mobile version of Douban.
- 19 years old college student, works as a part time model.
- Loves to take self-pix and shopping. Owns and endless supply of cosmetics.
- Spends free time on renren.com, looking for new and interesting news.
- Daily pictures uploads of their life and parties.
- Perpetually has 99+ friend invites
- Any status updates always garners a lot of comments
- Loves to read and watch shared posts and videos.
- Interested in reading about the complaints and experiences of the average salaryman/woman.
- 17 years old, senior year in high school with a strict daily schedule.
- Loves to play, but also studies hard.
- Thinks it’s much cheaper to communicate via mobile QQ than to send SMS.
- Has a Qzone blog.
- Updates status, uploads pictures and plays Happy Farm.
- Is proud of recruiting mom and all the aunties to into their band of vegetable stealing misfits.
- When overloaded with schoolwork, stops playing games on QQ. Only logs on to check the status of friends.
- However, the mom continues to steal vegetables like clockwork.
From Bergstrom: As the young generation grows to be the main consumer group in China’s market, it is crucial for the big players to decode what young people are considering most while they are making their purchasing decision.
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.
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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