Chinese is getting the grip of the Social Media in record pace

Do the Stats Work for Chinese Social Media?

Marketing executives in the West are busy checking the stats for Chinese social media to better inform how they promote their brands on social media.

Chinese is getting the grip of the Social Media in record pace

Chinese is getting the grip of the Social Media in record pace – (Photo via http://www.agenciagancho.com.br)

Getting to grips with the country’s wide and complex social media community and developing a strategy for reaching consumers lies at the heart of many brands hoping to succeed in China.

For many marketers, the stats help to tell a story and define social media usage. According to Marketing to China: “Platforms like WeChat and Sina Weibo have more than 300 million users, while Meilishuo, a popular social shopping website grabs about 30 million users per month. Experts say that within next 5 years, China is expected to reach $271 billion from online shopping.”

But do the stats tell marketing executives anything really useful?

  • 47% of Chinese consumers watch videos and television on tablets.
  • Much is made of the affluent rich who live in the big cities but marketers who concentrate only on Tier 1 and Tier 2 cities are bypassing the vast majority of China’s citizens. While there are just 4 Tier 1 cities with over 16 million inhabitants, Tier 3 and 4 cities and towns boast over 161 million people.
  • 82% of Chinese netizens are buying online more than any other country including Germany and the USA.
  • 22% of China’s internet users believe that sharing on social media is an expression of their own personality and 30% believe it is driven by creativity.
  • China’s mobile shopping increased by 168% in 2013 and is estimated to almost double that in 2014. If the trend increases, by 2017 it will have increased by over 1,000%.
  • The preferred format for advertising in China is the use of coupons (33%) and video (36%), with the best time to reach out to netizens on their mobiles being when they are on the way to work or at weekends.
  • While it might not occur to consumers in the West, 61% of china’s netizens would consider actually buying a car online.
  • WeChat is the fastest growing app internationally, outstripping everyone else. Its success has made Tencent the first Chinese internet brand to succeed out of the mainland and is set to make big inroads throughout 2014 and beyond. For many industry experts, WeChat is still the one to watch.
  • 74% of netizens shop online to get a lower price while 78% also worry about the authenticity of the product they are buying.
Chinese Social Media in Stats

Chinese Social Media in Stats – (Photo via http://www.china-brain.com)

Perhaps one of the more influential trends is that China’s ecommerce growth is back on the rise again, estimated to be worth $540 billion by the end of 2014. Industry experts believe that this is in part being driven by the lower Tier cities which lack the stores of their more affluent neighbours. According to China Briefing: “While there are plenty of physical shopping options in China’s larger cities, lower-tier cities cater less to international luxury brands. In light of this demand, the internet has allowed many retailers to offer goods to consumers in lower-tier cities and further afield without the need and cost of setting up a physical outlet.”

It’s a stat that suggest Western brands should be moving out from the Tier 1 and Tier 2 cities to the places where most of the Chinese population are living.

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China’s Slow Down Hits Western Brands

The slowdown in China’s economic growth might be making some big Western brands think twice about investing in this lucrative market in the future.

Garnier ChinaAt the beginning of 2014, both L’Oreal Garnier and Revlon planned exits from China’s competitive cosmetics market.

China is a large and complex arena in which to do business. Foreign companies have often had difficulty navigating it. Luxury brands appear to be suffering more than most, not only because of the economic slowdown but also the government’s crackdown on what it sees as unhealthy extravagance.

“As growth in China slows brands are starting to evaluate their portfolios in China and to focus on where they see the biggest growth,” comments Torsten Stocker, Hong Kong-based partner with consultancy firm AT Kearney

l'Oreal ChinaIn truth, L’Oreal is not pulling out totally from the Chinese market. They will, instead, be concentrating on two main brands: L’Oreal Paris and Maybelline New York. China is one of L’Oreal’s biggest markets, they have a 17% share in it, and they see social media marketing as vital to their success there.

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Lancôme, another luxury cosmetic brand in China, has a strong presence on many social networks including Kaixin, Renren and Sina Weibo. It uses prominent key opinion leaders to promote its products on their blogs and in videos. And its Rose Beauty Weibo page has over 900,000 followers who regularly visit for advice and chat, post comments and reblog to their friends and family.

A Merry Lancome New Year

“A Merry Lancome New Year ” campaign @ 2014

Lancôme created a new campaign for this New Year encouraging their fans to create digital talking greetings cards. “A Merry Lancome New Year” was launced on WeChat, Weibo and their own community website with those who collect the most ‘likes’ eligible to win products from the company’s latest line of cosmetics.

One of the ways in which luxury brands have suffered with the government crackdown in recent months is its effect on the Chinese practice of gift giving. The reason luxury items have caught the attention of the government is because they have often been used as bribes in politics and business.

 affluent Chinese But the affluent Chinese who buy luxury products are also changing their habits and purchasing outside of China’s mainland. And, according to analyst and writer Michael Zakkour: “Chinese luxury consumers are turning increasingly toward spending their ample disposable income on lifestyle purchases in addition to pure social status products.”

There is no doubt that luxury brands are nervous at the moment. Some like L’Oreal and Revlon are altering their approach to the Chinese market. Others are engaging more deeply on social media to offset any decline in popularity. Government crackdowns can disappear almost as quickly as they appeared.

But it’s not all bad news for luxury brands and the people who market them. The past 10 years has seen rapid growth in the economy and many see the current slowdown as a return to a more stable market that will benefit all Western brands trying to sell themselves in China.

“After a decade of rapid growth, the past two years have been a reality call for luxury brands in China. Rather than a downward trajectory, brands should think of the slowing market as a stabilization of rates that weren’t sustainable in the long-term.” The Jing Daily.