China Internet Watch https://www.chinainternetwatch.com China Internet Stats, Trends, Insights Thu, 01 Oct 2020 03:12:22 +0000 en-US hourly 1 https://www.chinainternetwatch.com/wp-content/uploads/cropped-ciw-logo-2019-v1b-80x80.png China Internet Watch https://www.chinainternetwatch.com 32 32 Alibaba opening its first Costco competitor store in Shanghai in Oct https://www.chinainternetwatch.com/31254/hema-member-store/ Mon, 28 Sep 2020 03:00:47 +0000 https://www.chinainternetwatch.com/?p=31254

Alibaba is launching Hema x Member on the coming National Day 1 October 2020 in Shanghai, the first domestic funded warehousing membership retail brand in China.

The first Hema x Member store will be officially opened on October 1st on the B1 floor of Senlan commercial center in Pudong, Shanghai, covering an area of 18,000 square meters, bigger than most of Hema stores.

As early as June 4, Hema announced that it would operate its first Hema x Member store in Shanghai. In the future, it will expand to Beijing, Xi'an, Shenzhen, and other cities.

The official account of the Hema Membership store will be warehousing shelves, with online and offline integration. The first batch of online products for sale includes Moutai, Phillips electric toothbrush, Evian mineral water, and etc.

This is the first landing project of Alibaba's paid member business. It will focus on the scene of "eating" to construct commodity categories and focus on cost-effective consumption.

At present, the...

Already subscribed? Sign in.

Don't Miss Out.

Invest with as little as one bottle of water per week.

Join other top analysts and business executives and navigate the unique market with China Internet Watch.

View subscription options »

Cancel at any time

]]>
KFC & Ting Hsin’s attempts in membership e-commerce in China https://www.chinainternetwatch.com/29919/kfc-v-mall/ Tue, 22 Oct 2019 09:00:17 +0000 https://www.chinainternetwatch.com/?p=29919

At the KFC V Mall, an order was placed with excitement. The price was pretty good! It’s 10 yuan lower with a 20 yuan coupon and 999 credit points than Taobao’s Juhuasuan. What’ so special about KFC V Mall?

In the KFC V Mall, there are quite a few categories – household and kitchen, fresh fruit and gourmet food, beauty and personal care, gaming and related, baby world. Most of the products can be redeemed with the V points of KFC’s member rewards.

There are even products that are 100 percent redeemable with V points. The products will be delivered by brands directly when ordered. The parent company of KFC, Yum! Brands, is more like a commissioned seller, it doesn’t have its own storage and logistics system.

In the category of gaming and related, peripheral products of popular IP such as Marvel, Disney and Pokémon are available for purchase. At the same time, for KFC’s own peripheral products, this section is the launch pad.

In the section of beauty and personal care...

Already subscribed? Sign in.

Don't Miss Out.

Invest with as little as one bottle of water per week.

Join other top analysts and business executives and navigate the unique market with China Internet Watch.

View subscription options »

Cancel at any time

]]>
Alibaba’s OTA Fliggy and Marriott integrating customer loyalty programs https://www.chinainternetwatch.com/29492/fliggy-marriott-rewards-transfer/ Tue, 09 Jul 2019 00:00:05 +0000 https://www.chinainternetwatch.com/?p=29492

Alibaba's OTA platform Fliggy (Feizhu) just made Fliggy Miles transferrable for Marriott Rewards points. Last week, the Marriott International Group's Fliggy Flagship Store officially opened the access for Points conversion from Miles.

The current program page shows that the points conversion between Fliggy and Marriott is only in the "trial period", specifically stating that the program is from June 1st to July 31st, it's not clear that the program is to continue after this period.

The program also rules that the conversion is capped at 20,000 Fliggy Miles within a calendar month, hence 40,000 Fliggy Miles in two months, while the overall cap for the lifespan of the program is 50,000 miles.

As early as October of 2018, Peggy Fang Roe, the Asian Chief Marketing Officer of Marriott International Group declared that "the points conversion will be available by the end of the year. Points of Fliggy and Taobao can be used to redeem Marriott points, and Marriott points can be...

Already subscribed? Sign in.

Don't Miss Out.

Invest with as little as one bottle of water per week.

Join other top analysts and business executives and navigate the unique market with China Internet Watch.

View subscription options »

Cancel at any time

]]>
Factors of offline shopping in China, promotion sources, and memberships https://www.chinainternetwatch.com/26354/consumer-offline-shopping/ Wed, 29 Aug 2018 03:00:42 +0000 https://www.chinainternetwatch.com/?p=26354

The emerging e-commerce has a great impact on the traditional retail industry, which has slowed down its developing pace and started to arrange offline sales since 2017. Seamless integration of online and offline shopping has become a trend, more and more retailers think consumer experience and efficiency important. However, they need to know more about consumers in order to let consumers remember them.

When it comes to the factors affecting Chinese consumers go for offline shopping, besides close to home and convenient transportation, reasonable price, various product categories, reliable products quality, fresh products, and promotions are also important considerations.

Membership system help to know more about consumers
Supplementary purchase, periodical purchase, and walk around are the three main purposes for residences or people work nearby to go for offline shopping. Most of them choose to walk to the stores.

Generally, most consumers would crazy for a direct...

Already subscribed? Sign in.

Don't Miss Out.

Invest with as little as one bottle of water per week.

Join other top analysts and business executives and navigate the unique market with China Internet Watch.

View subscription options »

Cancel at any time

]]>
Paid content is becoming a mainstream in China https://www.chinainternetwatch.com/25045/paid-content-is-becoming-a-mainstream-in-china/ https://www.chinainternetwatch.com/25045/paid-content-is-becoming-a-mainstream-in-china/#respond Thu, 26 Jul 2018 00:00:57 +0000 http://www.chinainternetwatch.com/?p=25045

With the widespread membership system of video and audio platforms including WeChat Official Accounts, Chinese users are gradually developing the habit of paying for good content on the internet. Online video market generated 21.79 billion yuan (US$3.4 billion) from the paid users in 2017. It will keep the fast-growth of over 60%.

Tons of entrepreneurs and companies are trying to seize the opportunity this trend brings. Suddenly, huge amount of original quality content is created on China’s internet, which is something new.

Some become very successful such as Uncle Kai’s Storytime, founded by an ex-CCTV host. Its WeChat official accounts articles generate over 10 million views per month with over 2,000 stories and a total play of 1.5 billion.

The monthly unique devices and monthly effective duration of the paid content market reached 143 million units and 410 hours respectively in December 2017, up by 73.7% and 100.3% from the beginning of 2017 respectively. In the future, learning from paid content might become a mainstream lifestyle of Chinese netizen.

China paid online knowledge market monthly performance 2017

]]>
https://www.chinainternetwatch.com/25045/paid-content-is-becoming-a-mainstream-in-china/feed/ 0
These 6 key marketing factors can help draw more FMCG Chinese buyers https://www.chinainternetwatch.com/23707/marketing-factors-fmcg-buyers/ https://www.chinainternetwatch.com/23707/marketing-factors-fmcg-buyers/#comments Thu, 12 Apr 2018 03:00:11 +0000 http://www.chinainternetwatch.com/?p=23707

When China’s FMCG growth returns, it doesn’t automatically happen to every brand. Here are six key factors.

Kantar Worldpanel has reported that spending in fast moving consumer goods (FMCG) grew by 4.3% in 2017 from a year ago, which is 0.7 percentage point higher than that in 2016 and the fastest in three years. This signals the end of the FMCG slowdown China has experienced over the recent years. However, the recovery won’t automatically happen to every brand in the market. The key to sales growth is attracting more buyers to your brand—deepening penetration, getting more households in a particular market to buy. Kantar Worldpanel has validated this fact by looking at the correlation between sale changes and different consumer measures for more than 8,000 brands in 19 markets, including China.

To attract buyers to your brand, start by gaining insight into consumer desires and behavior and launch related products. For example, in China today, brands would benefit from introducing premium products that fit with long-term trends that value health, quality, and me-time.

In addition, brands looking to attract buyers should be talking to a wide range of consumers as often as possible in various ways, including: creative media advertising and marketing; presence in physical stores with as many products on shelf as possible; and promotions to get better exposure in store and expand consumption (without discounting too heavily).

But even for brands that do most things right, attracting buyers is a never-ending task, as within any given year at least half of the consumers you won last year will leave and most of all your buyers will only buy one time.

To help brands meet this challenge, we reviewed our extensive brand data, across categories and countries, and identified six key factors that together influence a brand’s ability to grow its buyer base: availability, innovation, price, assortment, promotion, and equity. Here are the details:

1. AVAILABILITY

Globally, the biggest differentiator between a growing brand and a declining brand is distribution. This is also true in China. E-commerce has enabled many brands to reach audiences beyond key cities, but for most brands, it does not replace the benefits derived from expanding presence in physical stores. Food and beverage is still overwhelming bought offline and has strong impulse element in brand and often category choice.

China is a huge country with the fastest growth happening in the western and central regions, meaning many areas that might have been considered too difficult to reach or not profitable now offer potential to widen a brand’s shopper base.

2. INNOVATION

Brands constantly launch new variants in order to try and attract new shoppers. In practice, though, we do not see a strong correlation overall between the percent of sales gained from new products and whether the brand is growing or not.

This makes sense when we dive deeper into the data. In China’s fast-moving consumer goods (FMCG) market over the last three years, 43% of the new SKUs launched from the top brands came from either a new pack size or pack type. Small changes to the current line-up do not result in significant incremental growth, as they do not offer anything new enough to enter into the consideration set of more buyers.

The most reliable way to innovate and gain incremental sales is through offering a more premium product. This is especially true in the snacking and beauty categories, as shown when shoppers are willing to pay more for imported brands and better quality ingredients.

Dairy is also a category with a lot of incremental innovation as a result of trading up consumers through offering new products promising greater health benefits and exciting flavors. These include organic lines, such as ChangQing yogurt from Yili and Mengniu’s TLS yogurt, which operates at a price premium and won fans with its durian fruit flavor.

3. PRICE

Chinese consumers are trading up their products across most categories in FMCG. In China, brands losing penetration tend to be 20% cheaper than average, showing that success is driven by tapping into the premiumization trend. Brands offering products that feed into wider macro trends in the Chinese middle class are more able to command a price premium.

One megatrend is health and wellness, and it is expressed in the fast growth of organic and imported food, but also in related habits, such as gym membership and use of fitness apps. Another theme is the desire for small indulgences, where shoppers are looking for high-quality treats.

4. ASSORTMENT

Having more products on the shelf is a strong way of predicting whether a brand is growing or not. For example, 22% of the fastest growing brands in China increased their range size, while only 3% of the worst performing did. Although innovation of new flavors and pack sizes does not necessarily lead to brand growth, they can help if you are able to use these offerings to expand the space you have on the shelf.

Growing brands are launching SKUs that are more attractive to retailers, to consumers, or to both. While sales share for these innovations is not any greater, these sales are incremental to the brand portfolio, rather than simply substitute sales in the existing range.

5. PROMOTION

Applying price discounts or providing extra volume does not lead to long-term brand growth; however, they are an unavoidable part of managing an FMCG brand. Everyone buys on promotion and 46% of all FMCG volume in China is sold on the deal. The key to getting the best out of promotions is to seek to make them incremental to your brand and also the category. One way to do that is through larger packs and bundles, as these load up shoppers and have the effect of increasing their consumption rates. All categories have some expandability; however, big winners are snacks, ambient dairy, and soft drinks.

One caution for designing your promotional plan: Avoid very large discounts (ideally those over 30%) as these can have a negative impact on category sales value, and also can be detrimental for the retailer when going above 45% off the average price.

6. EQUITY

Mental availability—awareness and consideration—still correlate well with brand growth. Increasingly, e-commerce is shortening the path-to-purchase, as the wealth of product information that can be accessed online enables consumers to go from being unaware to being ready to purchase, sometimes in a single sitting. This does not mean that old ways of advertising are obsolete, as many FMCG categories are still purchased offline. And while there is a higher chance of switching to more premium and imported brands, the larger offline players still have strong online sales share.

Continue to read: How does Tencent’s QQ influence the young?

This post was originally published on Kantar.com

]]>
https://www.chinainternetwatch.com/23707/marketing-factors-fmcg-buyers/feed/ 3
Cross-border online shopping trends in China 2018 https://www.chinainternetwatch.com/23209/amazon-cross-border-online-shopping-trends-2018/ https://www.chinainternetwatch.com/23209/amazon-cross-border-online-shopping-trends-2018/#comments Tue, 13 Feb 2018 03:00:20 +0000 http://www.chinainternetwatch.com/?p=23209

China's cross-border online buyers consider quality the most important standard when shopping online for imported goods according to Amazon China's “Cross-border Online Shopping Trends” report.

Personalized consumption is now driving cross-border e-commerce. And, paid memberships are a new growth point for cross-border e-commerce platforms.

This report is mainly based on Amazon’s own data regarding the volume of overseas sales and consumer behavioral surveys. One highlight is the fact that the number of overseas brands purchased through its cross-border platform has, in the last half year, increased from 80,000 to 210,000.

In addition, though Amazon Prime was only rolled out in China a year ago, members have already collectively saved some 500 million yuan (US$ 78.5 million) in shipping costs through the program. It also noted three broad trends for its cross-border e-commerce business in China.
Quality is king
As the cross-border e-commerce industry has developed, consu...

Already subscribed? Sign in.

Don't Miss Out.

Invest with as little as one bottle of water per week.

Join other top analysts and business executives and navigate the unique market with China Internet Watch.

View subscription options »

Cancel at any time

]]>
https://www.chinainternetwatch.com/23209/amazon-cross-border-online-shopping-trends-2018/feed/ 2
REPORT Chinese Consumers Paying for Digital Knowledge 2017 https://www.chinainternetwatch.com/22242/digital-knowledge-payment-2017/ https://www.chinainternetwatch.com/22242/digital-knowledge-payment-2017/#comments Tue, 10 Oct 2017 03:00:11 +0000 http://www.chinainternetwatch.com/?p=22242

This report takes a detailed look at the trend that more and more Chinese consumers pay for quality content online; and, it also shares some insights on the most popular platforms of paid digital content.

Content generation start-ups in the United States generally focus on monetizing their viewers or followers through advertising, a la Youtube. In China, however, many such companies are able to directly charge their users for access to content on a pay-per-view or pay-to-subscribe model.

Chinese consumers are much more open to paying for content than American consumers, which has paved the way to the rise of a new content generation and sharing model: the “knowledge payment” platform.

Knowledge payment platforms aim to bring together experts or informed citizens and members of the public who will pay for the information, expertise, and perspective they can provide. Some take the form of consulting services, while most offer newsfeed-like platforms.

The following provide...

Already subscribed? Sign in.

Don't Miss Out.

Invest with as little as one bottle of water per week.

Join other top analysts and business executives and navigate the unique market with China Internet Watch.

View subscription options »

Cancel at any time

]]>
https://www.chinainternetwatch.com/22242/digital-knowledge-payment-2017/feed/ 1
[REPORT] Chinese consumer upgrades in strong demand https://www.chinainternetwatch.com/22253/chinese-consumer-report-aug-2017/ https://www.chinainternetwatch.com/22253/chinese-consumer-report-aug-2017/#respond Tue, 05 Sep 2017 03:00:53 +0000 http://www.chinainternetwatch.com/?p=22253

The young generation is taking on-demand consumption, asset-light lifestyle.

Recently, the market research and consulting firm Mintel released the '2017 China consumer' report. Research shows that Chinese consumers are in the lifestyle upgrade, healthier, more eager to experience a sense of leisure life, but more rational consumption.

The young generation is taking on-demand consumption, asset-light lifestyle. In 2017, as the form of 'upgrading of quality and convenience', consumer upgrades will be in strong demand, and health and experience will be the two major themes.

Consumption escalation means maximizing the value of money.

Although China is experiencing an upgrade in consumption and consumers are seeking higher quality products, this does not mean that they will spend lavishly. In this consumption escalation, the value of money is maximizing.

According to Mintel's report, with the moderate growth of China's economy, both young and old Chinese urban consumers a...

Already subscribed? Sign in.

Don't Miss Out.

Invest with as little as one bottle of water per week.

Join other top analysts and business executives and navigate the unique market with China Internet Watch.

View subscription options »

Cancel at any time

]]>
https://www.chinainternetwatch.com/22253/chinese-consumer-report-aug-2017/feed/ 0
China consumer membership insights https://www.chinainternetwatch.com/21880/china-consumer-membership-insights-2017/ https://www.chinainternetwatch.com/21880/china-consumer-membership-insights-2017/#comments Tue, 15 Aug 2017 03:00:52 +0000 http://www.chinainternetwatch.com/?p=21880

From frequent flyer accounts to supermarket preferred shoppers' cards, consumer memberships are an increasingly important part of China's consumption-based economy and of consumer spending habits. The following article presents an overview of the state of consumer membership. The survey was conducted in 2017 but the insights are still valid in 2020.
PROMOTING MEMBERSHIP
Member prices first

Preferential pricing is the factor Chinese consumers consider most when considering memberships. Nearly 70% of Chinese survey respondents say that they first consider price and savings when they obtain preferred shoppers cards.

Their second consideration, according to 41.1% of survey respondents, is a rewards and points program. Considerations such as improved customer service and better treatment appear only as a minor concern, with only 14.9% saying they care greatly about these factors.

Don't be afraid to ask...

Most Chinese respondents say they are not annoyed when asked by ...

Already subscribed? Sign in.

Don't Miss Out.

Invest with as little as one bottle of water per week.

Join other top analysts and business executives and navigate the unique market with China Internet Watch.

View subscription options »

Cancel at any time

]]>
https://www.chinainternetwatch.com/21880/china-consumer-membership-insights-2017/feed/ 2