In rural areas, the seriously unbalanced gender ratio makes it more difficult for men to find a partner. Some people are reluctant to introduce a partner because the success rate is too low.

Since the 1980s, there has been a high proportion of boys in children born every year in China. As they gradually enter marriage and childbearing age, there has indeed been a phenomenon that men encounter fierce competition in the marriage market and even can’t find a spouse.

However, the distribution of this phenomenon is uneven. This phenomenon is not obvious in large cities due to the supplementary effect of the incoming population, but it will be more prominent in some rural areas, remote areas, and areas with a low level of economic development.

There are differences in the gender ratio of the marriageable population between urban and rural areas.

The gender ratio of the marriageable population in big cities tends to be feminine, resulting in the phenomenon of “older leftover women”; the gender ratio of the marriageable population in the vast rural areas, especially in remote areas, tends to be masculine, resulting in the problem of “grass-roots singles”.

Gender composition should be divided into age groups. From the main marriage and childbearing age group of 20 to 40, there are more than 17 million men than women, not more than 30 million, according to NBS.

Guangdong is the province with the highest proportion of men, accounting for 53.07% of the male population and 46.93% of the female population, with a gender ratio of 113.08. Followed by Hainan, the proportion of the male population is 53.02%, the female population is 46.98%, and the gender ratio is 112.86.

The three northeastern provinces are the most balanced. Among them, Jilin and Liaoning are the only provinces in China where the female population exceeds the male population.

7 Major Consumer Segments Shaping Chinese Market Landscape

Mogujie is a very popular mobile shopping app among women in China with 2.43 million active users in March 2020 while Jumei app has 1.16 million MAU.

For those not familiar with these apps. Here is a quick introduction.

• Mogujie (MOGU INC) is a social media and e-commerce platform specializing in fashion content, products, and services. Headquartered in Hangzhou, China, Mogu was founded in 2011 by former Alibaba engineer Chen Qi, along with Xue Yuqiang and Wei Yibo.
• Jumei is an online cosmetic shopping platform focused on make-up and skin-care brands
• Meilishuo is a Pinterest-like website that enables women to find personalized clothing and skincare products.
• Youzijie is a technology company focused on mini programs for retail and e-commerce

Check out the different female age groups below for their favorite mobile shopping platforms:

Pinduoduo made it to the top 5 across three out of the four age groups while Tmall made to two.

Top mobile shopping platforms in China: Taobao, Pinduoduo, JD

Airbnb released a report last week on Airbnb China’s women community. According to the report, as of February 10, 2020, 53% of active Chinese landlords are female, and China is one of the top 10 countries with the largest number of female landlords on the platform.

Among them, the millennial generation (Generation Y) and generation Z female landlords are the main players on the Airbnb platform. About 67% of female landlords are post-80s, post-90s and post-00s.

In 2019, Airbnb’s global female landlords are expected to earn US$14.9 billion (about 104.3 billion yuan) through shared accommodation, of which China ranks eighth in the world.

The year 2019 registered 6.01 billion domestic tourists person-trips in China, up by 8.4 percent over that of the previous year. Read more here.

Among the global landlords who receive at least 150 person-trips, more than 37% of the five-star rated female landlords are from China.

In 2019, the five-star rating of Chinese female landlords is 88%, higher than that of global female landlords (83%); the average rating of Chinese female landlords is 4.81, higher than that of global female landlords (4.77).

67% of the team leaders of Airbnb Chinese community are women.

The top ten cities with the largest distribution of female landlords are:

• Shanghai
• Beijing
• Chengdu
• Guangzhou
• Chongqing
• Hangzhou
• Shenzhen
• Xi’an
• Qingdao
• Wuhan

Last year, the top ten types of accommodations most favored by Chinese female tourists based on Airbnb report were: Inn, boat house, resort, island, farmhouse, country house, hotel apartment, boutique hotel, hotel, and apartment.

Among the top ten popular destinations most favored by global female tourists, China occupied four seats, namely Changsha in Hunan, Sanya in Hainan, Lijiang in Yunnan, and Beihai in Guangxi.

Among them, single-person travel is more and more popular with Chinese women. In 2019, the proportion of Chinese female tourists traveling alone in China increased by more than 1.6 times.

Characteristics of China outbound travelers in 4 segments

Relying on Alibaba’s data, Bain identified eight strategic segments of China’s online consumers that collectively account for 80% of FMCG platform users and represent over 90% of gross merchandise volume:

• Rookie White Collars
• Wealthy Middle Class
• Supermoms
• Small-Town Youth
• Gen Z
• Urban Gray Hairs
• Small-Town Mature Crowd
• Urban Blue Collars

Rookie White Collars are educated people in their early 30s who live in tier 1–3 cities. Their careers are advancing. They work in a fast-paced environment and greatly value convenience—hence, they prefer online shopping.

They represent higher per-capita spending on Tmall and Taobao, with annual spending growth of around 20% from 2016 to 2018 according to Bain’s report.

Wealthy Middle Class consists of financially stable consumers, typically in their early 40s in tier 1–3 cities, and primarily work as civil servants or in corporate middle or senior management.

They are less passionate than their younger counterparts when buying the latest new products. They are more rational consumers, they value quality, and a higher proportion of their online purchases are premium products.

Supermoms are women who are pregnant or have children under the age of 12. They live in Tier 1–3cities and are concerned about raising healthy families while taking great care of their own careers—and their own health and beauty.

They are the main shoppers for their families and are willing to pay a premium for convenience. Among all groups, they have the strongest spending power. It is reflected in the number of categories and brands they buy, their shopping frequency and the amount they spend.

Gen Z consists of students or others born after 1995 in tier 1–3 cities. They are digital natives. Unlike their older counterparts, they value trendy items over established brands and are major fans of insurgent brands.

This group represented the fastest per-capita spending growth on Tmall and Taobao FMCG, with per-capita spending growing 30% annually from 2016 to 2018.

Small-Town Youth are consumers in their 20s in tier 4 or smaller cities. They take their cues from big-city youth, eagerly following the latest urban trends. Without the pressure of exorbitant housing prices, they have considerable disposable income at their fingertips.

The slow pace of life also provides them with enough time to enjoy games, video streaming, and other online leisure activities. Their income and free time make them a huge potential force in online shopping.

Urban Gray Hairs are consumers born before 1970 who live in tier 1–3 cities. The majority of them are retired and have substantial pensions. This group could be considered a hidden gold mine for online sellers.

They now spend relatively little online. In fact, their per-capita spending dropped 20%annually from 2016 to 2018.

Small-Town Mature Crowd consumers are older than 35 and live in tier 4 or smaller cities. With their slow pace of life, they typically have an abundance of time to watch videos or news online. They make most of their purchases offline, a preference that allows them to socialize with acquaintances face-to-face.

They registered the lowest per-capita FMCG spending on Tmall and Taobao of any group in 2018.

Urban Blue Collars are less affluent consumers in tier 1–3 cities who are typically engaged in such professions as catering, transportation or retail. They are familiar with the same e-commerce infrastructure and online channels that influence their middle-class counterparts.

Compared with the Rookie White Collars or Wealthy Middle Class groups, they are more concerned about value for their money when shopping online and tend to buy fewer items. Their per-capita spending on Tmall and Taobao is far below that of middle-class shoppers and grew at a relatively slow 5% rate from 2016 to 2018.

Bain also suggested 4 steps on how brands can win:

1. Clearly understand the targeted strategic consumer groups and their preferences in products and content/promotion channels
2. Identify key growth drivers to customize a category- and brand-specific strategy
3. Optimize product portfolios, marketing, and channel strategy—choosing key growth initiatives for reaching and converting targeted consumers
4. Systematically review and continuously improve strategic initiatives

CIW annual subscribers can download the report here.

Alibaba expects international and domestic cosmetics brands to open 1,000 stores this year on its Tmall platform to meet demand from Chinese consumers.

Seven international cosmetics companies, Tom Ford, Glamglow, P&G’s new beauty line Oriental Therapy, Cosme and d-program from Japan, Primera from Korea and Barnängen from Sweden, have signed agreements to launch flagship stores on Tmall this year at Tmall’s annual beauty summit.

Related: Tmall and JD had a combined market share of over 85% in China’s B2C e-commerce market in Q4 2018

Another five beauty companies signed New Retail partnerships with Tmall during the summit, including Maybelline, Kiehl’s, Innisfree from Korea and domestic brand WINONA. It gives them a complete view of their customer base by integrating insights from digitized offline promotion activities and storefront information with online information.

Catering to the needs of shoppers who want to enjoy a variety of Korean beauty products, the Korean Small & Medium Business Corp. (SBC) announced at the Tmall Beauty Summit that it plans to launch a flagship store to house 50 niche Korean brands.

The store openings and Tmall’s target to open 1,000 new cosmetics stores with brands are part of its drive to cement itself as the platform of choice for beauty brands to connect with Chinese shoppers.

With Alibaba’s extensive reach of nearly 700 million customers in China, its strong technical support and in-depth market knowledge, Tmall has become the most-effective platform for brands to manage the entire customer journey from product discovery, awareness building, engagement, transaction and delivery, to after-sales services, and offers consumers a seamless experience, both online and offline. Tmall physical goods GMV grew 29% year-over-year in Q4 2018.

We are honored to be trusted by 180,000 brands on our platform, empowering them to accelerate their digital transformation and grow their business in China. As China continues its consumption upgrade, more and more people from different age groups and geographic locations are willing to spend on high-quality beauty products. We are looking forward to working with more brands to address the opportunity

said Jet Jing, President of Tmall.

Tmall’s sales of beauty products jumped over 60% last year, surpassing the industry’s average growth rate. Online sales of cosmetics and personal care products grew 37% and 36% in China in 2018, respectively, which was also ahead of the whole fast-moving consumer goods sector average of 32%, according to a report jointly released by Tmall and retail market research firm Kantar during the summit.

The report also highlighted untapped potential in Generation Z. Aged between 15 to 19 years old, Generation Z female consumers are newcomers to the beauty market and are willing to spend more on high-end lipsticks than women in other age groups, representing an opportunity for cosmetics companies.

Tmall offers beauty brands an unparalleled edge in the launch of new products, including consumer insights based on data analytics, using live streaming to enhance shopping experiences and exclusive online offers, as well as leveraging offline and online integrated channels to provide customers with personalized shopping experiences.

In 2018, some 80% of Tmall brands chose the marketplace to launch new products, proof of the platform’s ability to identify new markets and demand. For example, two new emerging domestic beauty brands – Perfect Diary and Home Facial Pro – were among more than 30 beauty and personal care brands whose sales topped RMB100 million at the 2018 11.11 Global Shopping Festival, due largely to Tmall’s robust offerings. Check out Double 11 statistics of top retailers & top 50 Tmall stores in 2018 here.

Also at the summit, Tmall showcased a one-stop solution, the Alibaba Business Operating System, as part of a new effort to help beauty brands succeed in China. The Alibaba Business Operating System, officially unveiled by the group in January, is a one-stop solution that helps brands digitally transform themselves in sales, logistics and supply chain management, payment, marketing, cloud computing, and other supporting services.

Alibaba’s Tmall also announced plans earlier this year to incubate 100 new products for 10 billion yuan GMV in 2019.

The Chinese government announced on May 30 that it will significantly lower import tariff on many consumer goods. Among them, the average tariff rate for detergents, cosmetics such as skin care and hair care products, and some medicine and health products will be cut from 8.4% to 2.9%.

How will this affect brands’ fate in China?

This is apparently a good news for imported cosmetics products. According to Kantar Worldpanel data in recent years, imported cosmetics products have been enjoying very healthy growth: in 2017, the sales value growth of imported cosmetics products, mostly premium ones, reached 40%. Thanks to the new tariff cut, we expect this trend will continue and this sector will be able to maintain a growth between 30% – 40% in the next couple of years. Some typical brands are Lancôme, Estee Lauder, SK II, Dior, Saint Laurent and Shiseido.

From the origin country perspective, whether the actual products are produced in or outside of China, brand owners have to remember that many Chinese consumers have very consolidated opinion about cosmetics from this country. For example, Japanese products increased their sales in 2017 because Chinese consumers believe Japanese goods are meeting their need for health and professionalism. Japanese cosmetics are widely acknowledged for addictive-free features and outstanding functions.

The growth of European and US brands came against the backdrop that increasingly sophisticated Chinese consumers are entering into previously niche categories, such as essence and eye-cream. European and US brands have accumulated many signature formulae in these categories and have won the votes of many Chinese consumers.

Their usage of social key-opinion leaders (KOLs) has also contributed to their stellar performance because color cosmetics categories are high-involvement sectors and consumers are willing to spend a lot of time to learn from KOLs. South Korean brands went through a challenging period of time in China, but they weathered it by developing lower-tier and online channels as well as launching “fast beauty” hit products.

The macro trend of China’s cosmetics market is favorable to imported products. The rebound of China’s FMCG market was supported by premiumization. Personal care sector outperforms other categories with skin care and makeup products the biggest opportunity to grow.

If we look into the details, Kantar Worldpanel’s Beauty Panel has shown that young females in their 20’s are the market leader and growth driver. They are exposed to and become fans of cosmetics products on mobile APPs, creating numerous instant purchasing occasions. They’ve also formed a habit of making small but frequent purchases, which is a stark contrast with shopping patterns of 40 and above female buyers, who prefer to hoard up products in much fewer purchases to drive down per unit cost.

The rise of vertical e-commerce sites and mobile apps has also created rooms for lesser-known foreign brands to establish themselves. Thai brands, for example, became a surprise leader in sales growth because the humid and hot weather has fostered long-wearing products with outstanding oil-control functions. These are also pain points for many young Chinese consumers.

Geographically speaking, lower-tier cities experienced a big boom of consumer spending. A, B, C and D-tier cities have all posted per person spending growth rates more than doubled that of Key cities (Beijing, Shanghai, Guangzhou).

If a brand wants to make a decision on which products to bring to China first, we can share three latest trends of Chinese consumers’ pursuits for beauty products:

1. Healthier skins

Chinese consumers’ pursuit of healthy skin condition has blurred the definition of traditional functions. For example, new “anti-age” means repairing skin barrier; new “oil control” means improving water-oil balance; new “whitening” means healthy glowing skin.

2. More professional products

As Chinese consumers increase their knowledge about skin care and makeup, they are choosing more professional products more proactively. Kantar Worldpanel Beauty Panel data has shown that the once popular easy-to-use BB cream and CC cream kept losing in penetration rates, while more professional products, such as cushion and foundation have been bought by more consumers. They have also added more pre-steps to create a flawless look.

3. More personality

More Chinese women are now showing off their personality by using fragrant products and bold makeup colors. Brighter and bolder lip colors and eyeshadows have jumped in occasion index.

*Index calculation: occasion share of the period/of 14 fall/winter *100

To summarize, lower tariff definitely will make imported cosmetics more competitive in prices. But the more fundamental factor to decide a brand’s performance in China is their access to reliable market data and their understanding of real Chinese consumer needs. Data-based consumer insight is the ultimate short-cut to win in China.

How to use live streaming for successful marketing in China in 2018

This article was originally published on Kantar.com.

GSMA has a very exciting programme lined up for Mobile World Congress Shanghai 2018. While showcasing the latest developments in mobile, this year’s event will offer attendees a wide range of experiences through the conference, the exhibition and specialized programmes such as Women4Tech, 4YFN and beyond.

The GSMA announced several additional keynote speakers for Mobile World Congress Shanghai, with executives from leading mobile operators, infrastructure providers and other companies across the broad mobile ecosystem. Recently confirmed speakers include:

• Sabeen Ali, Founder and CEO, AngelHack
• Thaddeus Arroyo, CEO, AT&T Business
• Liu Aili, President and COO, China Telecom
• Borje Ekholm, President and CEO, Ericsson
• Eric Xu, Rotating Chairman, Huawei
• Greg Wyler, Founder and Executive Chairman, OneWeb

The GSMA also introduced a new element for this year’s Mobile World Congress Shanghai: the Leaders Stage. The Leaders Stage programme is open to Mobile World Congress Shanghai attendees holding VIP, Gold or All Exhibition Passes, and will explore wide-ranging trends that are shaping the mobile future and impacting citizens’ everyday lives. Executives participating in the Leaders Stage include:

• Nicole Richards, Catalyst, Dovetailed
• Kirti Lad, Executive Director, Meraki Executive Search & Consulting
• Jingyi Yu, CEO, Chairman and Chief Scientist, Plex-VR Digital Technology
• Bessie Lee, CEO and Founder, Withinlink

For further details on the conference programme, including the agenda and confirmed speakers, visit www.mwcshanghai.com/conference-programmes/

Women4Tech Summit at Mobile World Congress Shanghai

The GSMA announced the first speakers for the Women4Tech Summit, which will be held Thursday, 28 June at the Leaders Stage. The Women4Tech Summit will bring together senior-level speakers and panellists to discuss how to ensure gender equality in mainstream work environments and share strategic advice on broadening gender diversity in mobile and related industries.

The Summit will highlight topics around women’s role in empowering, encouraging, transforming and innovating in technology. The first confirmed Women4Tech keynote speakers and panellists include:

• Nicole Peng, Senior Director, Mobility, Canalys
• Åsa Tamsons, EVP and Head of Emerging Business, Ericsson
• Azita Arvani, Head of Innovation Partner & Venture Management, Nokia
• Anna Yip, Executive Director and Chief Executive Officer, SmarTone
• Mary Clark, CMO and EVP Product, Synchronoss

Additional Women4Tech activities include a speed coaching and networking session, activities at 4YFN and Women4Tech Asia Mobile (AMO) Awards for Outstanding Achievement Asia Industry Leadership, among others. For more information on the Women4Tech Programme at Mobile World Congress Shanghai, visit www.mwcshanghai.com/experiences/gsma-women4tech/.

New Developments in 4 Years From Now (4YFN)

4YFN returns to Asia for the third year, highlighting key technology trends and exploring disruptive innovation with a comprehensive programme for startups, investors and corporations. 4YFN offers unique connecting initiatives, including custom networking activities, inspirational talks, technical workshops, community outreach and the 4YFN Summit.

For 2018, 4YFN is located in the NEXTech Hall, which puts the spotlight on next-generation technologies, products and experiences. Exhibitors at 4YFN include Daejeon Information & Culture Industry Promotion Agency (DICIA), Korea Institute of Startups & Entrepreneurship Development (KISED), Qualcomm Technologies and Shanghai Technology Innovation Center, among others.

Leading venture capital and investment organisations including DCM Ventures, IBM Venture Capital Group, Legend Capital, Telefónica Open Future, Telstra Ventures and others will participate in the 4YFN Founders and Investors Programme and 4YFN Summit.

Executives confirmed to speak in the 4YFN Summit taking place 27-29 June include Minette Navarrete, President, Kickstart, Globe Telecom; David Tang, Managing Partner, Nokia Growth Partners; and Volker Heistermann, Managing Director, Yushan Ventures. For more information about 4YFN, visit www.mwcshanghai.com/4yfn.

The Asia Mobile Awards will also showcase 4YFN with the “4YFN Best Startup of the Year Award”, which recognises organisations focused on accelerating business development and the investment of new technologies within the startup community. The winner of this award will be featured on the Leaders Stage and will receive a free stand at 4YFN Barcelona 2019.

The winner will have the opportunity to participate in acceleration, mentoring and investment programmes with 4YFN, including the accelerator programme of BGTA, a London-based accelerator with operations in China and the 4YFN Award Partner. For more information about 4YFN Asia Mobile Awards, visit www.mwcshanghai.com/conference-programmes/asia-mobile-awards-2018/2018-categories/.

droidcon Comes to Mobile World Congress Shanghai

The GSMA will partner with Beijing Changfeng Information Technology Industry Alliance & Mobile Seasons GmbH to bring droidcon to Mobile World Congress Shanghai. Started in Berlin in 2009, droidcon is the premier global community of over 25,000 developers worldwide. droidcon is designed to provide an open platform for Android development engineers, users and entrepreneurs to share technology advances, development experience and innovation practices. droidcon Shanghai 2018 will be held in the NEXTech Theatre in the NEXTech Hall (Hall W5), alongside the Device City, AR/VR/MR Zone and 4YFN.

New Exhibitors and Event Partners Confirmed

The GSMA confirmed several new regional pavilions in the exhibition, including Enterprise Ireland, Russian Export Center JSC and Shanghai Technology Innovation Centre, as well as the Korea pavilion featuring Daegu Digital Industry Promotion Agency (DIP), Daejeon Information & Culture Industry Promotion Agency (DICIA), Gwangju Information & Culture Industry Promotion Agency (GITCT), Korea Association for ICT Promotion (KAIT), Korea Information & Communication Technology Industry Association (KICTA) and Korea Institute of Startups and Entrepreneurship Development.

Elsewhere in the exhibition, Eyesight, Onstar and Volkswagen will explore the intersection of mobile and automotive in the AutoTech Zone. Exhibitors including Dozen, Gowild and others will be showcasing the latest developments in artificial intelligence (AI) in the AI Zone, while 263 Mobile, Acoustics and ZTE Welink will demonstrate the technologies and applications shaping the Internet of Things (IoT) in the IoT Zone. For more information on the exhibition, visit www.mwcshanghai.com/exhibition/.

As always, the GSMA Innovation City will be a major highlight of the show, enabling attendees to experience technology in context and see how mobile-connected products and services can improve their daily lives. Continental and Zhejiang Panshi Information Technology become the latest companies to participate in the Innovation City, alongside previously announced partners BICS, Huawei, myFC and SI-Tech Information Technology. For more information, visit www.mwcshanghai.com/exhibition/gsma-innovation-city/.

MWC Shanghai Tours Offer Focused Experiences

To help attendees better navigate Mobile World Congress Shanghai, the GSMA is offering four different tours of the SNIEC, led by industry experts. The MWC Shanghai Tours will focus on topics including 5G & NFV, Artificial Intelligence, Consumer Tech and IoT, and will provide experiences that are tailored to meet attendees’ individual business objectives and requirements. For more information on MWC Shanghai Tours and registration, please visit www.mwcshanghai.com/experiences/mwc-shanghai-tours/.

Register and Get Involved at Mobile World Congress Shanghai 2018

Registration for Mobile World Congress Shanghai is now open. For more information on Mobile World Congress Shanghai, including how to attend, exhibit, partner or sponsor, visit www.mwcshanghai.com. Follow developments and updates on Mobile World Congress Shanghai through our social media channels – follow us on Twitter at @GSMA and use #MWCS18, get regular updates through our LinkedIn Showcase Page at www.linkedin.com/company/mobile-world-congress-shanghai, and follow us on Facebook at www.facebook.com/mwcshanghai. In China, you can follow us on Sina Weibo http://weibo.com/mwcshanghai or search “GSMA_MWCS” in WeChat.

CIW, as our media partner, offers its audience an AEP (worth $75) registration code FEPQWRNEUM that you use to register.

WeChat launched rewarded video ads platform for mini-games

Chinese consumer demands, lifestyle, and behavior and attitude have changed greatly following the demographic structure and society evolutions as well as the three emerging forces in China’s consumer market, leading to more and more new particular consumer segments in China.

Social changes of national consumption age hasten new consumer segments such as “urban fashion men” and “active senior citizens”. The emerging trend of bachelordom develops new consumer group named as “the urban single tribe” with unique demands which are totally different from other consumers.

Emphasizing on experience and feelings as well as following closely the fashion trend have created “experience first” and “eager to become a master” segments. The age of high connectivity and digitization sees the born of “two-dimensional space” and “virtual social networkers”.

Enterprises shall deeply investigate each particular consumer group, and fully consider their special demands to identify the correct positioning of products and services. Then estimate their growth potential and formulate suitable strategies with diversified pricing, particular scenarios, and different functions.

Urban fashion men

Consumptions across various age groups are increasing in China, not limited to a specific consumer segment, age groups, or gender. China has entered into the “national consumption” age.

Rise of male consumers group in China roots in the accumulation of social wealth; social progress brings about diversified social identities for the individual; and, richer social life makes the male’s desire for non-essential materials become unprecedentedly huge, which is the prime power for the rapid rise of male consumers in China.

The number of male consumers increases dramatically on both offline shopping and online shopping; categories of consumption related to the male become more diversified, and the amount of expenditure is close to the female. Especially for online shopping, no matter they buy something for themselves or for female family members,

Especially for online shopping, the annual expenditure of Chinese male consumers is higher than the annual expenditure of Chinese female consumers, having reached 10,025 yuan.

Taking growth rate in skin care products for instance. Compared with the overall growth rate of 11% in China’s overall skin care market, the growth rate of the skin care products for men is twice faster than the overall growing rate and reaches 24%.

Nowadays, young male consumers who were born in the 1980s and 1990s living in the cities are different from their parents. They read male fashion magazines, pay attention to self-image, enjoy life, and are willing to spend money on their clothes and hair styles.  They on average spend 24 minutes on grooming every day. They also concern about their health; and, they will work out in fitness clubs.

73% male consumers in China’s first-tier cities believe that the personal appearance is important for job hunting and dating; 88% will check information of beauty and fashion on the internet; and, 83% in 18-35 years old age group think it is necessary to use skin care products.

Apart from traditional advertising, the influence of the internet on male consumers shall not be neglected. Many brands start to pay more attention to their exposure rate on the internet. Chinese male consumption market’s demands on fashion and personalization are increasing constantly; different brands could offer more differentiated choices.

Active senior citizens

Other than “the economy of fashionable men”, the Chinese demographic structure becomes increasingly mature. “Silver Economy” market is also becoming more and more competitive. The aging tendency of the Chinese population is an indisputable fact. Official research indicates that the total population of the elderly people is more than 200 million in China. Over the past decade, income levels of elderly people in China have increased significantly. Consumption structures also gradually shifted focus from basic necessities of survival to cultural relaxation activities.

Official research indicates that the total population of the elderly people is more than 200 million in China. Over the past decade, income levels of elderly people in China have increased significantly. Consumption structures also gradually shifted focus from basic necessities of survival to cultural relaxation activities.

In such a general background, lifestyles of elderly people in China are becoming more and more active and diverse. According to BCG research and studies on elderly people around the world, elderly people are keeping a more youthful appearance and “not satisfied with being old”. After retirement, they are no longer content with current lifestyle of staying at home. Besides, elderly people don’t just take care of grandchildren, grow

After retirement, they are no longer satisfied with the current lifestyle of staying at home. Besides, elderly people don’t just take care of grandchildren, grow plants, or read books in their twilight years. When asked about “the ideal state of retirement life” in China, the new generation of elderly people aged from 46 to 55 demonstrated significantly different viewpoints as opposed to the previous generation of those who are above 55 years old.

The new generation of old people is more willing to go out of their houses and pursue colorful retirement lifestyles. In particular, they are actively engaged in traveling, seeking for new hobbies and interests, sports, reemployment, volunteer work after retirement. The ratio is 10% to 20% higher than the previous generation of old people.

In addition, Wang Deshun, who is known as “the coolest grandpa” and the brand ambassador of Reebok, as well as Shao Quanfa, who is a 72-year-old sportsman and completed 70 marathon races, have become extremely popular and inspiring public figures. They made more retired people realize the new possibilities and created new business opportunities.

China’s elderly consumer market is the future of a blue ocean, showing a large scale, more diversified demand, supply shortage, and obvious consumption willingness.

Take tourism industry targeting the elderly for example. According to statistics from China’s National Tourism Administration, the average annual growth of senior citizen tourism market reached 21.5% between 2012 and 2015 which was higher than the overall growth rate of 16.8%. In 2015, it reached 826 billion yuan. And, 35-40 years old and above 65 years old are major consumers for cruise travel.

Under the age of silver economy, economic growth is as important as economic quality. From the perspective of consumption, the growth of some durable consumer goods slows down; organizations’ focus shifts to the elderly led businesses.

It’s imperative for businesses to develop strategies on how to guide the elderly’s consumption to personalized and diversified directions with high quality.

The urban single tribe

The population of bachelordom in China is about 200 million. The proportion of people who live alone has increased from 6% from ten years ago to 16%; the proportion of people who are more than 35 years old and still single reaches 21%, which is four times as much as it was ten years ago. 36% single women said that they are happy without getting married; as high as 80% expressed that they would rather remain single than rush to get married.

There are more and more white-collar workers and highly-skilled workers choose to remain in “the single tribe”. The reasons for keeping single may be different: some don’t want to interrupt the existing state of life; some keep high standards of choosing a spouse; and, some think that the expense of marriage is high that they would rather invest in themselves to improve themselves and pursue individual freedom.

The proportion of urban Chinese women who choose to be the single on their own initiative is high; they are economically independent, do not rely on men, and believe marriage is not a thing that women are forced into as it was before.

The number of Chinese who meet with the above-mentioned characteristics is increasing. Media and the public voice do not treat them with colored spectacles and do not call the single as “leftover women and men”. State of keeping single has become a kind of common phenomenon.

It is noteworthy that trend of bachelordom does not only refer to marital status but also indicates mental attitude change. Married couples also enjoy personal space and happiness belonging to the single when they are not accompanied by their spouse.

As the number of people who choose to become single on their own initiative increases, “the economy of bachelordom” becomes popular. “The economy of the single women” and “the economy of the single” have created a series of business opportunities.

Producing customized products and services for the single is becoming a trend of marketing; such customized products and services for the single including solo KTV, solo seat in restaurant, refrigerator with small size, small high-end retail store which provides abundant imported products, solo housing supplied by land agent, and solo dwelling with individualized design.

Acceptability of the society on the single is improved constantly. “One person” brings a new pattern of consumption, and hasten new consumers segment targeting the single. The single has become a key consumer segment which shall not be ignored by the consumer market.

The “healthy green advocates” and “environmental protection” segment

Food is the paramount necessity of the people, and safety is the top issue. In recent years, shocking security incidents of food, drug, haze, and water pollution were reported repeatedly. Food security and health have become a top concern in China.

People care for their own health, extending concerns to the environment and sustainable development. The proportion of consumers who are not satisfied with food security or medical treatment is among the highest which are 57% and 47% of respondents respectively according to BCG.

Report on Chinese Green consumers in 2016 issued by AliResearch indicated that Chinese consumers’ aspiration on green consumption and environmental protection upsurges unprecedentedly; their pursuit of healthy and green lifestyle is not only reflected on the preference on green products selections but also reflected on that they hope their consumption behaviors and patterns of consumption will meet health environmental protection standard.

According to a GFK survey, 73% interviewees expressed that they feel guilty if their lifestyle is harmful to the environment. The proportion ranks the 7th among the 23 countries participated in the survey. Furthermore, as high as 80% respondents think that brands and companies shall be responsible for the environment.

Advocating healthy life, laying emphasis on environmental protection, and the idea of sustainability make “environment-friendly consumers” become a new large Chinese consumer segment which develops rapidly. Environment-friendly consumers pay attention to environmental protection and have purchased more than five kinds of environment-friendly products. They have green consciousness; they have turned or may turn green consciousness into green consuming behaviors; they hope to create active influence on other people and society through their behaviors of buying environment-friendly products.

Environment-friendly consumers pay attention to environmental protection and have purchased more than five categories of environment-friendly products. They are green consciousness and hope to create a positive influence on other people and society through their behaviors of buying environment-friendly products.

The AliResearch report also shows that the internet has become the main battlefield of green consumption. Especially in recent years, the proportion of “environment-friendly consumers” had increased from 3.4% in 2011 to 16.3% or 66 million in 2015. Green and environment-friendly consumption have become the main consumer habit, which also increased the price of environment-friendly products by 33%.

The emergence of environment-friendly consumers is significant for consumer markets in China, forcing businesses to pay attention to sustainable development and green products supply. “Experience suprematism” and “people who yearn for becoming great master” who keep up with the trend become the new consumers groups.

The “experience first” and “eager to become a master” customers

Popularity and accessibility of internet information and booming international tourism enable more and more Chinese consumers in line with global trend; their horizon is more broad, and their ability to accept various emerging things become stronger.

Chinese consumers are increasingly keen to spend longer time researching their own consumption need and acquire purchase information through digital platforms such as the “Little Red Book” to help with their purchase decisions.

Furthermore, experiential consumption has become a kind of trend in China. Consumers are no longer satisfied with visiting familiar cultural and geographical environment and traditional tourist spots; they take delight in tourism which is full of exotic charm and features unconventionality and extreme sports.

According to the report of “high-end tourism in China” issued by Hurun, the popularity to Japan and Korea has declined from 58% to 36% between 2015 and 2017. However, tourism in other foreign lands such as Africa, Antarctica, Arctic, and the Middle East has grown from less than 10% to around 20%. Between 2015 and 2018, the expected growth of participation in rock climbing, motorcycle race and surfing is 124%, 103% and 70% respectively.

Some traditional businesses affected by the internet have identified new opportunities for the “experience first” consumers by crafting the design and sales of customer experiences. A rising group of “experience first” consumers in China is willing to invest in their interests; and, some also expect to achieve a professional level of skills.

In recent years, professional cameras are popular among some photography enthusiasts; mobile applications for fitness and cooking have attracted as many as eight to nine million active users. All of these indicate that more and more Chinese consumers are willing to spend money and time to improve skill levels of their interests.

Experiential consumption such as outbound travel and extreme sports rises quickly; and, these Chinese consumers are willing to invest a lot financially in interests, leading to a rise of “experience first” and “eager to become a master” consumer segments. 00 Yuan each year on hobbies and interests such as oil painting, skiing, watching

Take a 30-year-old white collar living in a tier-1 Chinese city for an instant. The annual spend on the painting, skiing, opera, and pastry material purchase could easily exceed 35,000 yuan.

“Two-dimensional Space” and “virtual social” consumers

“二次元” (Er Ci Yuan) refers to the two-dimensional space, namely the flat space where the early animation and games were composed. And, consumers who are addicted to or fans of those characters in the animations of games are called Er Ci Yuan or “two-dimensional space”.

This consumer segment has an everlasting expectation for skills and experience; they will complete purchase and consumption while studying and creating. Digital times have created “two-dimensional” and “virtual social networking” consumers segments.

Parents who once deemed internet as savage beasts for their children are constantly interacting on WeChat now. Students, white-collar workers, and the elderly all have a smartphone enabling them to 24/7 access to the internet.

PwC data shows that Chinese consumers spend the most time on digital devices in the world; they have extremely high requirements on the convenience of the equipment. The average time a Chinese consumer spends on a smartphone, laptop, and tablets is as high as 170, 161 and 59 minutes respectively, which is far more than the global average time of 147, 108 and 50 minutes. Furthermore, the convenience of online and mobile shopping in China also make consumers willingly to be in the state of 24/7 internet connectivity.

Furthermore, the convenience of online and mobile shopping in China also make consumers willingly to be in the state of 24/7 internet connectivity. There are 62% Chinese consumers believe that online shopping is convenient, 4%-7% higher than the developed markets such as the U.S. and UK.

When encountering with the two-dimension virtual world and three-dimension real world, high connectivity and demands on convenience have made such consumers group feel that the two world has integrated; for them, the boundary between virtual and real world is vague.

For example, in the past, soccer fans of World Cup would only feel satisfied when they go to a bar or restaurant to watch the game with a beer, the crowd, and friends. Now, the “two-dimensional space” and “virtual social networking” consumers move “beer social networking” back home. They buy BBQ and beers on mobile; and, they interact with soccer fans around the world through bullet screen (a function which allows viewers to post on-screen comments in videos) while they watch the live broadcast online.

This brings new consumption pattern and demands. Young people’s entertainment such as the online novel, gaming, animation, and cartoons, which were once deemed as “improper occupation” by most of the adult have now made more and more young consumers realize their value of life, leading to a series of new business opportunities and peripheral products.

Retail sales in China’s skincare and cosmetics products market will grow at an average annual rate of 12.8% from 2016 to 2019, much higher than the global average of 6.0%, and will top RMB 287 billion (USD 44 billion) in 2019 according to Euromonitor International.

The proportion of young women who have the habit of making up (88%) is higher than that of mature women (83%) according to an HKTDC survey. 27% of the respondents said they would “make up every day”, the majority (59%) said they “only make up when the occasion requires” and 14% said they “do not wear any makeup”. And, the higher the monthly household income of respondents, the more likely they are to wear makeup every day according to the same survey.

Participants in the focus group discussions contended that usually three basic items are needed for putting on “light makeup”, while over 10 cosmetics products are required for putting on “full makeup”. Meanwhile, the types of cosmetics used also change according to different seasons and fashion trends.

Respondents said they use on average 4.7 different cosmetic products on average, with the most frequently used items being BB/CC cream (57%), makeup remover (46%), sunscreen/sunblock (44%), lipstick (37%) and foundation (34%). The proportion of young respondents using products such as BB/CC cream, makeup remover and sunscreen/sunblock is considerably higher than that of the more mature respondents.

The main reason for Chinese women wearing makeup is “to make oneself look prettier and boost confidence” according to the HKTDC survey. The higher the monthly household income, the higher the proportion of respondents who believe that putting on makeup can “express one’s personal image and taste” as well as “show respect for others”.

When it comes to buying and using cosmetics products, 52% of the respondents would stick to several specific brands. Among the young respondents, 34% said they would buy and try different brands of cosmetics, while the more mature respondents (28%) are less eager to try new brands.

Overall, respondents’ cosmetics brand loyalty is quite high. In light of this, when a new brand enters the mainland market, it has to offer innovative products or novel makeup themes before it can attract the attention of consumers.

The price of imported cosmetics brands is higher than that of mainland brands. Hence, the purchasing power of a consumer affects her product choice to a certain extent.

Also read: 88% China Tier-2 Consumers Buy Overseas Online in 2015

Both traditional retail brands and start-ups are striving to convert consumers’ interests into a sustainable business in 2016. Customers want to see and experience the world at all times. China is entering “she-economy”. More people are realizing the importance of healthy lifestyle according to Mintel.

O2O Redefined

O2O services have accelerated from a developmental phase to a commercially viable business model across China’s largest cities in 2015. With bigger and faster logistics networks and more dynamic service models, O2O services are expected to elevate to new industries, spread to more cities and regions, and will offer more dynamic and personalized services in 2016.

Challenges and threats to the traditional brick-and-mortar stores will continue to increase in 2016. In addition to exploring O2O offering, traditional retailers should look to add value and meaning to physical stores, turning the space into an environment for new experiences and social activities. The future of O2O lies in how well brands can utilize idle and qualified human resources and then match them with the right consumer needs. The competitive landscape of the Chinese O2O market grants more power to consumers for tailor-made services.

More O2O businesses will be executing strategies to provide products and services to regions where they were previously unavailable in 2016 and beyond. 45% of consumers from tier two and three cities have not used O2O services due to the lack of availability.

Taobao, China’s largest e-commerce platform, has launched campaigns to encourage farmers from China’s countryside to sell on Taobao. More online and offline retailers will participate to win the rural market in 2016.

Interactive Now

Video has become the most popularly consumed online media in China with as much as 83% of internet users watching videos on desktops and an additional 73% viewing videos on tablets in 2015 according to Mintel.

Chinese consumers are gradually developing an appetite for watching videos online, leading to a willingness to pay for high-quality and uninterrupted content. 38% China’s consumers have already paid for online video streaming and 31% would be interested in giving it a try in 2015.

Consumers want to see and experience the world at all times. 74% of Chinese consumers find interactive activities held by brands encourage them to purchase in 2015. Live-streamed video satisfies consumers’ needs for online interactions as Chinese netizens are highly social and active in voicing their opinions online.

More dynamic improvements will be made to online live-streaming content and video technology in China in 2016 and beyond. With better video and recording technology, live-streaming will be more interactive, more immersive and more universal.

Future VR is set to take live-streaming into uncharted territory in 2016. With VR technology, brands could bring consumers into their live-streamed marketing activities from the comfort of their home.

Women Only

China’s women’s rising education level and workforce participation allows them to live more independently and further contribute to the consumer economy which presents more opportunities for brands to tap into ‘the women’s market’.

58% of Chinese moms say they are the sole person who manages household finances. Female consumers aged between 30 and 39 years old in metropolis cities such as Beijing and Shanghai are the driving force of China’s cross-border online shopping market this year according to the Voice of China. Marketers are paying more attention to female preferences and needs in both product development and in the way in which they communicate to and with women.

Women are more likely to be impulsive buyers and tend to be less ‘self-disciplined’ than men. 42% of women say they cannot help buying when there is a shopping atmosphere such as Double 11 (November 11 2015) or Black Friday shopping festival compared to 34% among men.

Lucrative opportunities for brands will target female consumers with ever-increasing spending power to pursue their interests in 2016. This refers not merely to cater to women’s specific product or service needs but also calls for brands to show their understanding, appreciation, and support for the rising ‘she-economy’.

Conscious Health

As brands and institutions strive to keep health threats such as air pollution and food safety issues under control, China’s consumers have begun to take a more proactive approach towards health in 2015.

For busy urbanites, eating fresh and living healthy is made possible thanks to the development of O2O (online to offline) businesses in China. From square dancing aunties to gym club members, regular exercise is indeed becoming a trend and essential part of the Chinese consumer lifestyle. Almost two in five (37%) Chinese consumers have a gym membership, a number that is expected to increase in the coming years according to Mintel. The number of Chinese consumers who claim to have sub-health conditions reached 86% in 2015.

30% of consumers use mobile or tablet apps to track their activity levels in 2015 while approximately one in 10 consumers has used wearable devices to track sleep quality, heart rate, and blood pressure. Furthermore, 74% of consumers show an interest in using wearable devices to manage their health in the future.

Also read: China Retail V.S. Online Shopping 2015

Source: Mintel

Tourism-related consumption in China in H1 2015 totaled 1.65 trillion yuan (US$0.26 trillion), an increase of 14.5% YoY with over 2 billion person-trips. 61.9 million Chinese traveled abroad in H1 2015, an increase of 16.11% YoY.

Chinese women use smartphones more frequently and more engaged in lifestyle and travel research. And, they have higher quality travel needs. Women are more inclined to choose nature as a quick getaway from busy urban life, doing yoga, taking a walk or going to spa. Some hotels and resorts launch custom service for women’s such needs.

Find out more in previously published Chinese Women’s Travel Willingness Report in 2014

Also read: China Hotel Search Behavior Overview 2015