China Internet Watch https://www.chinainternetwatch.com China Internet Stats, Trends, Insights Fri, 16 Feb 2024 09:38:45 +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 CIW Premium https://www.chinainternetwatch.com/premium/ Fri, 16 Feb 2024 08:41:00 +0000 https://www.chinainternetwatch.com/?page_id=43555 China Digital Insights

CIW Dossier China Digital Insights (DCDI) is compiled to provide statistical information about China digital insights on the internet economy, digital trends, online users, mobile apps, and e-commerce. Click here to download.

Archive

E-commerce Market

Jul 2021

CIW Dossier “China E-Commerce” is compiled to provide statistical information about China’s e-commerce market including online retail, cross-border e-commerce, e-commerce users, and mobile shopping apps. If you need an overall insight into China’s e-commerce market, this is what you should read.

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China 618 Shopping Festival

Jun 2021

CIW Dossier “China 618 Shopping Festival” provides a perspective of the merchants regarding the performance, advertising budget, and sales expectations from the top e-commerce platforms for 618 shopping festival.

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China Social E-Commerce

Apr 2021

CIW Dossier “China Social E-Commerce” is compiled to provide four business models and statistical information about China’s social e-commerce market. Four social e-commerce models: group buying, membership, community-based, content-driven.

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China Pets Retail Market

Jan 2021

CIW Dossier on China Pets Market provides an overview of China’s pet retail market as long as the characteristics of internet users in the corresponding segment.

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Double 11 (Singles Day)

Nov 2020

CIW Dossier Double 11 is compiled to provide statistical information about China’s largest shopping festival led by Alibaba Tmall platform including pre-sale data, top retailers’ performance by GMV, and top brands on Double 11 by categories, etc.

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Payment

Oct 2020

CIW Dossier Payment is compiled to provide statistical information about China’s payment market on online payment, mobile payment, third-party mobile payment, and users’ preference for payment method in different usage scenarios. If you need an overall insight on China’s payment market, this is what you should read.

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Top Mobile Apps

Jun 2020

China’s mobile apps market, including mobile internet overview, mobile apps market, top mobile apps, select mobile apps, and mini programs.

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Taobao Live

Apr 2020

CIW Dossier Taobao Live – is compiled to provide statistical information about Alibaba’s live streaming platform.

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China Outbound Tourism

Nov 2019

Statistical information about China’s outbound travel market.

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China Online Travel Market

Nov 2019

CIW Dossier China Online Travel Market is compiled to provide statistical information about China’s online travel market including market overview, online air ticket booking, online accommodation booking, online vacation booking, outbound travel, and high-end travel.

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China Media Ad Spending

Feb 2019

China’s overall media advertising market growth and the top advertisers in China in 2018.

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Luckin

June 2019

Luckin is China’s second largest and fastest-growing coffee network, in terms of the number of stores and cups of coffee sold, according to the Frost & Sullivan Report. While operating three types of stores, Luckin strategically focus on pick-up stores, which accounted for 91.3% of their total stores as of March 31, 2019.

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China Internet Users in Tier-3 to Tier-5 Cities

Jun 2019

Quick view of China’s internet users’ time usage and expenditure in lower-tier cities (tier-3, 4, 5).

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WeChat Official Account

July 2019

CIW Dossier “WeChat Official Account” is compiled to provide a quick view of Tencent’s WeChat content ecosystem Official Account.

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Cross-border E-Commerce Female Shoppers

Jan 2019

Statistical overview of China’s female shoppers purchasing overseas consumers goods.

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China Advertising Market

Dec 2018

Statistical information about China’s advertising market on traditional advertising market, online advertising market, invalid traffic of digital ads, and mobile e-commerce ads. If you need an overall insight on China’s advertising market, this is what you should read.

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China Smartphone

Dec 2018

CIW Dossier China Smartphones is compiled to provide statistical information about China’s smartphone market including smartphone shipments, sales, and market share information as well as top smartphone brands and user profiles.

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Weibo Online Shoppers

Nov 2018

CIW Dossier Weibo Online Shoppers is compiled to provide statistical information about Weibo users who are interested in online shopping. If you need an overall insight on the demographics, purchasing behavior, and engagement, etc. of Weibo online shoppers, this is what you should read.

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China’s High-end Travelers

Aug 2018

CIW Dossier “China’s High-end Travelers” is compiled to provide an overview of China’s high-end travelers, including their travel choices, demographics, and travel habits.

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WeChat Intro

July 2018

CIW Dossier on WeChat is compiled to provide an introduction of this digital ecosystem and statistical information about China’s top mobile social application. It provides insights on WeChat Official Accounts, WeChat Pay, Mini-Programs, and advertising channels.

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Online video market

Sep 2018

CIW Dossier China Online Videos is compiled to provide statistical information about China’s online video market including online video apps, mobile video users, paid video users, short video apps, and live streaming apps. If you need an overall insight on China’s online video market, this is what you should read.

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Pinduoduo (PDD)

Sep 2018

CIW Dossier Pinduoduo is compiled to provide statistical information about Pinduoduo on group purchase model, app ranking, financial performances, user profile, IPO, and counterfeit problems.

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Golden Week Tourism

Oct 2018

CIW Dossier Golden Week (National Day) Tourism is compiled to provide statistical information about China’s tourism market for the peak travel period – Golden Week / China’s National Day holidays.

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Sports & Fitness Mobile Apps

Nov 2018

CIW Dossier China Mobile Fitness & Sports Apps is compiled to provide statistical information about China’s sports & fitness mobile app market.

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WeChat E-commerce Amplifies with Video Account Surge https://www.chinainternetwatch.com/43528/tencent-video-account-ecommerce/ Mon, 12 Feb 2024 06:27:05 +0000 https://www.chinainternetwatch.com/?p=43528 Despite numerous attempts to dominate the e-commerce stage, Tencent has never relinquished its ambition in the competitive arena.

A recent unveiling at the “2024 WeChat Open Class PRO” has shone a light on its video account e-commerce business, demonstrating a nearly threefold increase in Gross Merchandise Value (GMV) in 2023. This growth is complemented by a more than 244% rise in order volume and an approximately 300% increase in product offerings.

Industry insiders estimate that live commerce via WeChat’s video accounts generated a GMV between 40 to 50 billion yuan in 2022. Following the reported threefold growth, the 2023 figures are projected to hit between 120 and 150 billion yuan.

Li Chengdong, an e-commerce analyst and founder of Dolphin Think Tank, acknowledges the impressive growth rates of video account e-commerce in 2023. However, he notes the sector’s scale remains modest compared to giants like Alibaba, JD.com, and Pinduoduo, whose GMVs have breached the trillion yuan mark, alongside emerging live commerce platforms like Douyin and Kuaishou.

A significant development is Tencent’s integration of video account e-commerce with its WeChat advertising system, allowing for video account livestreams to be promoted within Moments. This new feature opens up fresh avenues for traffic acquisition, potentially boosting conversion rates by shortening the consumer journey from ad click to purchase.

The integration extends beyond advertising, as various e-commerce formats within the WeChat ecosystem, such as social commerce and mini-program commerce, are linking up with video account e-commerce. This strategic move positions video accounts as a foundational infrastructure within WeChat e-commerce, facilitating a seamless flow of both public and private domain traffic within the social network.

WeChat’s new social e-commerce platform integrates Shopping Accounts

Launched in 2020 as a counter to Douyin and Kuaishou, WeChat’s video accounts rapidly developed a comprehensive suite of short video functionalities. By integrating with other WeChat services like Official Accounts, Search, and Mini Programs, video accounts have become a crucial part of the ecosystem.

The platform’s commercial exploration, especially in live commerce, started in earnest around the first half of 2021. According to Yu Haijun, founder and general manager of Guangzhou Zhi Ling Network Science and Technology Co., Ltd., early adopters included notable brands drawn by the platform’s promise of a refined operational framework focusing on user experience.

Tencent’s Q3 2023 earnings report highlighted a more than 50% year-on-year increase in total video account views, with WeChat’s video account content ecosystem and creator base continuing to expand. Partnering platforms like Weimob reported a 47.6% increase in video account merchants and a 50.5% increase in their GMV in the first half of 2023, further underscoring the growing importance of video accounts in the e-commerce landscape.

Despite these advances, some insiders express dissatisfaction with the growth rate, pointing to a relatively low ad load rate in video content compared to other platforms. This limitation suggests a need for increased user engagement and refined recommendation algorithms to boost traffic and conversion rates.

The integration of WeChat Moments ads with video account commerce represents a deepening of video accounts’ role within Tencent’s ecosystem, offering merchants enhanced promotional opportunities and streamlined customer purchase pathways. However, achieving a significant uplift in conversion rates through this integration will require meticulous data alignment and robust cross-departmental collaboration.

As Tencent doubles down on its investment in video account and live commerce, the future of WeChat e-commerce hinges on the harmonious fusion of advertising and transactional capabilities, underscoring the platform’s commitment to enriching its commercial ecosystem.

WeChat expanding e-commerce reach with mini program integration on JD, Xiaohongshu

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520 Day: China’s Modern Twist on Celebrating Love https://www.chinainternetwatch.com/7517/internet-valentines-day/ https://www.chinainternetwatch.com/7517/internet-valentines-day/#comments Wed, 17 May 2023 23:00:13 +0000 http://www.chinainternetwatch.com/?p=7517
#520# a trending topic on Weibo on 20 May
#520# a trending topic on Weibo around 20 May in China

What’s this “520 day” that intrigues many in China? The term 520, an abbreviation for May 20, denotes an unofficial Valentine’s Day in China. The number “520” phonetically resembles “Wo Ai Ni” or “I Love You” in Chinese.

While February 14 remains the globally recognized Valentine’s Day, the Chinese honor their affection on several other occasions as well, including May 20 (520 Day) and the Qixi Festival. These days are regarded as Chinese versions of Valentine’s Day, with the 520-day holding special significance as it symbolizes “I Love You.”

Despite not being an official holiday, 520 Day has garnered popularity among couples and singles as an opportunity to express romantic love.

Due to the ongoing pandemic in 2020, the “520 Day” celebration witnessed changes with fewer public gatherings. Nonetheless, businesses capitalized on the festival by initiating online engagement campaigns.

Prada’s 520 campaign page on Weibo

For instance, luxury brand Prada, created a campaign using the hashtag #prada520# on Weibo, one of China’s top social platforms. The campaign featured brand spokesperson Cai Xukun and garnered 180 million views as of May 5.

The “520 Day” traces its roots to Taiwanese singer Fan Xiaolan’s song “Digital Love,” where “520” symbolized “I love you.” Over time, “521” was also interpreted as “I am willing,” and “I love you” in China, earning various epithets like “Marriage Day,” “Love Expression Day,” and “Love Festival.”

These two dates, May 20 & 21, serve as annual internet Valentine’s Days in China, echoing the phrases “I (5) love (2) you (0/1)” in Chinese. While they lack historical roots, they are products of commercial promotions in the 21st century.

Despite not being official holidays, the evenings of these days see restaurants and cinemas bustling and prices surging due to Valentine’s Day celebrations.

May 20 is particularly crucial as men utilize this opportunity to express their romantic love for women, often presenting gifts or ‘hongbao.’ Some couples even choose this date for their wedding ceremony.

The difference between 520 and 521 is that the former is largely a day for women, while the latter caters to men. On May 20, men express “520” (I love you) to their significant other. The subsequent day, women reply with “521” to indicate their reciprocation of love.

For marketers in China, these days present lucrative opportunities for promotions. The rising orders of roses, surging sales of chocolates, and full-house hotels underscore the business potential of the “520-day festival.”

Most Retweeted Photo on Sina Weibo on 20 May
Most Retweeted Photo on Sina Weibo on 20 May in 2014

A few notable examples of this trend include the most retweeted photo on Sina Weibo on May 20, 2014, and a post by The Economist in 2017 asking “how do economists say ‘I love you’?” The topic #Sweet 520# witnessed almost 4 million discussions and over 1 billion views as of noon on May 20, 2017.

Economist’s post on Weibo “how do economists say ‘I love you’?” in 2017

The characteristics of 520 Valentine’s Day include:

  1. Fashionable: “520” resonates with the younger generation who find creative ways to celebrate the day, even choosing this date for their wedding. It’s also a popular topic on WeChat Moments and QQ group chats.
  2. Younger: Those under 30 years old, who are quick to embrace new trends and spend much of their free time on the internet, are the primary followers of 520 day.
  3. Spiritual: Gifts exchanged on May 20 and 21 lean more towards the “spiritual.” It could be a coded message of love sent over the internet or mobile phone.
  4. Implicit: Unlike the globally recognized Valentine’s Day, which is for established couples, the 520 Internet Valentine’s Day is preferred by men and women to subtly express their love using digital codes.

5 key trends shaping the Chinese economy, accelerated by COVID-19

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China’s mobile payment market overview 2023: Alipay vs. WeChat Pay https://www.chinainternetwatch.com/42509/mobile-payment/ Tue, 14 Feb 2023 13:13:12 +0000 https://www.chinainternetwatch.com/?p=42509

QR code payment is still the most commonly used payment method for mobile payment users in China according to China Payment & Clearing Association's research.

"Which payment do you use more in daily life?" 

According to recent research conducted by the China Payment & Clearing Association, QR code payment remains the most frequently used payment method for mobile payment users in China.

In the offline environment, mobile payment users predominantly utilize WeChat Pay, Alipay, and UnionPay's Cloud Flash Pay, with respective usage rates of 87.9%, 85.3%, and 80.3%.

In 2021, both WeChat Pay and Alipay shared a similar market share. However, by 2022, WeChat Pay had gained a clear advantage.

The majority of mobile payment users are young to middle-aged individuals, but the number of older users has been steadily increasing. Among them, those aged 18-40 account for 70% of total users, while thos...

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WeChat Users & Platform Statistics 2023 https://www.chinainternetwatch.com/31608/wechat-statistics/ Thu, 12 Jan 2023 00:00:40 +0000 https://www.chinainternetwatch.com/?p=31608

In 2022, the total views of the original content on WeChat Channel (video account) increased by 350% year on year, and the scale of live broadcast increased by 300%, according to WeChat’s data released on 10 January 2023.

The commercial potential of live video broadcasting continues to be released, and the corresponding e-commerce sales increased by more than eight times year on year.

In 2022, the number of daily active creators and the average number of videos uploaded by the video account increased by more than 100% year on year, the number of creators with at least 10,000 fans increased by 308%.

The number of video account earners increased by 101%, and the total income of live video anchors increased by 447%.

Live video GMV increased by more than 8 times year on year in 2022, and the average selling price exceeded 200 yuan. Among them, the top three categories of consumption are covered by clothing, food, and beauty.

The monthly active users of WeChat Search have increased to 800 million, and the total search volume increased by 54%. Mini Programs are widely used in scenic spots, hotels, airports, and other fields, and the number of WeChat Mini Programs has increased by 183%.

WeChat Search contributed to 27% of Official Account follower growth and 20% of Mini Program’s new daily active users. Its contribution to WeChat Channel follower growth has increased by 120%.

WeChat MAU

Over 330 million of WeChat’s (known as Weixin in China) 1.2883 billion monthly active users use video calling. 780 million users are on the social networking section WeChat Moments and 120 million publish updates. The content network WeChat Official Account has 360 million users.

WeChat has evolved from an instant messaging app to a service meeting the digital needs of over 1.27 billion MAU in Q4 2021. Each day, more than 120 million active users post in social networking Moments, 360 million users read Official Accounts articles, and 500 million users access Mini Programs (Q1 2022) daily.

For Q4 2021, WeChat daily active advertisers expanded by over 30% year-on-year. Over one-third of Moments’ advertising revenue was generated from advertisements using Mini Programs as landing pages and advertisements connecting users to customer service representatives via WeCom.

WeChat Video Accounts’ time spent per user and total video views more than doubled year-on-year as Tencent enriched content diversity and enhanced the product experience.

WeChat Mini Programs

The daily active users on WeChat Mini Programs reached 450 million according to WeChat official data in January 2022. The transaction volume of catering, tourism, and retail increased by 100% year-on-year. Mini Program DAU reached 500 million (Q1 2022).

The number of Mini Program developers has exceeded 3 million.

In 2020, the daily active users of WeChat Mini Programs exceeded 400 million, according to its official data shared at its annual event WeChat Public Lecture.

The number of mini programs used per user increased by 25%, the average transaction value per user grew by 67%, the number of programs with transactions increased by 68%, and the annual transaction volume of more than doubled in 2020.

In 2020, more than 100 million people purchased in shopping malls and department stores on WeChat Mini Programs. With the help of mini program pre-sale + offline self pick-up mode, more than 300 million users purchased fresh fruits and vegetables.

WeChat Mini Programs overview

WeChat Games

In 2020, the commercial realization of WeChat mini games increased by 20%.

Last year, the proportion of male and female users in the distribution of mini games accounted for 50% respectively. 40% of the users in the first and second-tier cities, and 65% of the users aged 30 and above.

Compared with 2019, the per capita game duration of mini games increased by 50%, and the average number of games played increased by 20% in 2020.

China game live streaming revenues to double by 2021

WeChat Search

The number of monthly active users of WeChat search has reached 700 million according to WeChat official data released in January 2022.

WeChat search staff said that in the mobile Internet era, search should not be limited by the search box, but need to be accessible by the touch. Users can search while chatting.

WeChat search will screen out the high-quality content of WeChat and produce a more accurate connection with users.

In the future, it can expand the search scope to the whole internet-based the needs of users. The search results are currently mostly provided by WeChat Official Account and Sogou.

Top search trends in China

WeChat Pay

In January 2022, WeChat shared the latest progress on WeChat Pay:

  • 23 thousand monthly service providers
  • Over 10 million merchants
  • More than 1800 banks and Payment institutions
  • 23 thousand monthly merchants
  • In the next three years, WeChat Pay will continue to carry out digital upgrading of WeStore, with a planned investment of more than 10 billion yuan

In 2020, Zhifufen, a credit score on WeChat Pay, saw more than 240 million users. It boosted the conversion rate of e-commerce orders by 14% and the repurchase rate of retail merchants by 73%.

In 2021, WeChat mini stores and Zhuanzhuan (a secondhand-goods marketplace) will integrate Zhifufen.

In the e-commerce industry, WeChat Pay’s Zhifufen enables post-payment after receiving the delivery and faster refund. Users can quickly receive a refund after submitting return logistics information.

As of January 2022, more than 50% of users have activated Zhifufen, whose solutions cover more than 3000 industries. WeChat Pay unit cooperates with the e-commerce industry on “buy first and pay later”, which has been used by more than 100 million users.

Zhifufen also announced the launch of audio and video members’ services such as “watch first and pay later”, which helped solve the problems that bothered audio/music and video users to deduct fees in advance and forget to terminate their contracts.

China’s online payment users penetration reaching 86%

Enterprise version of WeChat: WeCom

In 2020, there were 80,000 enterprise WeChat partners, with a year-on-year growth of 400%. 

11.91 million applications connect to WeCom, with a year-on-year increase of 250%. Since COVID-19, there have been 5.5 million real enterprises and organizations on WeCom with 130 million active users reaching 400 million WeChat users.Click To Tweet

Acquire, convert, and retain customers through WeChat Ads + WeChat Work (WeCom)

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Tencent launched search ads on WeChat https://www.chinainternetwatch.com/35315/tencent-wechat-search-ads/ Wed, 09 Nov 2022 13:00:30 +0000 https://www.chinainternetwatch.com/?p=35315 The WeChat advertising team announced the launch of WeChat search advertising on 3 November 2023, which supports competitive promotion capabilities.

According to WeChat, search ads will support six promotion goals, including WeChat Official Account promotion, sales lead collection, products promotion, branding events promotion, app promotion, and WeChat Mini Games promotion.

WeChat search results on "hotel" and search ads
WeChat search results on “hotel” and search ads

It supports three landing page types, namely, native promotion page, WeChat Mini Program, and custom link. And, based on the search ability of WeChat, WeChat search advertising can support the sale of brand keywords, keywords words, generic keywords, and generic keywords.

At present, Tencent’s mobile search advertising scenarios mainly include WeChat Search and QQ Browser search. In these scenarios, advertisers can do brand and performance marketing.

Since the launch of search feature on WeChat in 2017, it has been at the top of the main interface.

However, after five years of iteration, it has now become a “global search” that includes WeChat Moments, Official Account, and Mini Programs from the early days when it could only search local chat records and contacts.

At the same time, the search scope has also expanded to all content and services related to search queries in WeChat.

WeChat Mini Programs Insights

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Top 3 private traffic platforms for merchants in China https://www.chinainternetwatch.com/35117/private-traffic-platforms/ Wed, 12 Oct 2022 10:17:16 +0000 https://www.chinainternetwatch.com/?p=35117

WeChat, Alipay, and short video platforms (Douyin, Kuaishou, etc) have become the most important platforms for Chinese merchants' private traffic operation according to a report from iResearch.

More than 80% of businesses believe that the cost of private traffic has increased by 40%, so the conversion rate and leveraging public traffic have become the core focus.

Under the catalysis of the epidemic, the private traffic operation of merchants entered a fast growth period, and the refined operation became a consensus. In the iResearch survey, 77.3% of merchants were satisfied with the improvement of business results driven by private traffic operation, among which the effect of new customers and member growth were the most significant.

It has also become a trend for private domain layout to become multi platform. The report shows that applets are the standard configuration for businesses to operate in private domain, and WeChat, Alipay and short video platforms have become t...

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Top Chinese liquor brand Moutai starts selling ice cream https://www.chinainternetwatch.com/33698/moutai-ice-cream/ Tue, 14 Jun 2022 00:30:40 +0000 https://www.chinainternetwatch.com/?p=33698

Selling ice cream in Maotai is not a fad, but a long plan.

Maotai has initially launched three flavors of ice cream: original, vanilla, and tiramisu, selling at 39 yuan (US$5.8). According to its official disclosure, the R&D team is still experimenting with other Maotai ice cream of various flavors.

In the future, Maotai will open ice cream stores in many locations across the country. For the applicable population, because Maotai ice cream contains a certain alcohol concentration, minors, pregnant women, and people with alcohol allergies should not eat it.

The Maotai ice cream in the store is made based on 50g 53% ABV Feitian Moutai for every 1kg of milk, and the specific measured alcohol level may fluctuate.

At present, there are no restrictions on the purchase of ice cream in the store. The ice cream sold can be eaten normally by minors and will not affect driving.

Maotai ice cream has a slight taste of Maotai liquor, which is the product of its strategic coope...

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How Watsons China’s online sales almost doubled in 2021 https://www.chinainternetwatch.com/33658/watsons-o2o/ Tue, 31 May 2022 00:00:48 +0000 https://www.chinainternetwatch.com/?p=33658

Watsons China's total revenue in 2021 was HK$22.77 billion, a year-on-year increase of 14%, the largest increase in the past five years. Watsons' online sales increased by 94%, providing a strong impetus for the recovery of performance.

Watsons' long-term digital transformation has initially yielded fruitful results, which has become its biggest driving force to resist risks.

In February 2020, Watson's WeChat mini program was officially launched, which means that the private domain is becoming its new home. The reason for the change stems from Watsons' deep insight into consumers.

Watsons noted that post-90s and Gen-Z consumers focus on online convenience and offline experience. The traditional O2O marketing strategy unilaterally drives customers from one platform to another, thus increasing sales.

Watsons implements the O+O platform strategy, breaking the limitations of O2O in the past, and becoming closer to the needs of customers so that they can experience products,...

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China online advertising market insights 2022 https://www.chinainternetwatch.com/31087/online-advertising-market/ Tue, 05 Apr 2022 11:00:02 +0000 https://www.chinainternetwatch.com/?p=31087

In 2022, 42.9% of advertisers in China expect to increase spending in digital marketing, 25 percentage points more than advertisers expect to reduce spending, according to CTR.

China advertising market vs online ad market

Advertisers of large enterprises with a budget of 500 million yuan or more are more confident in digital marketing spending. In 2022, 52.4% of advertisers are expected to increase spending in digital marketing.

The top online advertising medium is e-commerce, accounting for 46.5%, followed by short video (16.6%) and News (16.6%), according to data from QuestMobile. Short video advertising still saw fast growth of over 31% in 2021.

When Chinese advertisers select platforms for digital marketing, platform traffic is the core consideration factor of their advertising budget allocation, ranking first, accounting for 73.8%.

At the same time, advertisers pay more attention to pl...

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American coffee brand “Blue Bottle Coffee” opened its first store in China https://www.chinainternetwatch.com/33194/blue-bottle-coffee-store/ Mon, 07 Mar 2022 00:00:02 +0000 https://www.chinainternetwatch.com/?p=33194

On February 25th, the American coffee brand "Blue Bottle Coffee" opened its first store in mainland China. On the opening day, fans lined up to buy; large number of customers waited outside the store and lined up for hundreds of meters. Even many scalpers were eyeing the business of reselling the coffee.

That morning, the whole Suzhou River was crowded. Before eight o'clock, a long queue had been formed in front of the coffee shop. At nine o'clock, the "inner ring" queue turned three columns, and the queue needs to start at the "outer ring".

During the whole opening period, it took an average of 3 hours from queuing to entering the store. Some even got up in line at 6 o'clock just for a cup of Blue Bottle Coffee.

The opening of the first Blue Bottle Coffee store has even attracted many scalpers. According to media reports, although there are restrictions on the passenger flow in the store, there was no limit on the number of cups of coffee purchased by a single customer be...

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China Digital Luxury Report 2021 https://www.chinainternetwatch.com/31265/bcg-luxury-consumer-behavior/ Mon, 07 Feb 2022 11:00:19 +0000 https://www.chinainternetwatch.com/?p=31265

China's post-90s (those born after 1990) are expected to contribute to 46% of China’s luxury purchases in 2021, according to joint research by Tencent Marketing Insight (TMI) and Boston Consulting Group (BCG).

China's post-90s already make up 50% of the luxury goods buyers in the country, with a fast growth rate of between 25-35 percent in the past year.

Younger consumers were likely to buy luxury items as a way to express or reward themselves, as well as to experience the brand. They also valued new shopping experiences such as more interactive online shopping or newly launching brands’ pop-up stores.

Heavy-spending consumers who spend more than 300,000 yuan (US$47,000) annually on luxury items represent 40% of the total luxury sales. The number of people in this category will grow at least 28% in the coming year and brands should focus on driving repeat purchases and brand loyalty to continue the momentum according to the Tencent report.

Consumers at large tend to switch ...

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Exploring new ways to capture Chinese Gen-Z’s attention https://www.chinainternetwatch.com/32657/capture-gen-z-attention/ Tue, 02 Nov 2021 02:45:03 +0000 https://www.chinainternetwatch.com/?p=32657 Identifying proper styles of communication is critical in capturing Chinese Generation Z’s attention. Generation Zs value the way brands communicate and prefer particularly “young” and “surprise” ways of communication.

60% of Generation Z said that “the way brands communicate with me” plays a major role in their purchase decisions, according to a survey conducted by Tencent.

“Reliable” & “honest” are the basic requirements for brand communication, Gen-Zs focus more on young lifestyles and surprises while older generations value more “professionalism”.

69% of Gen-Zs are willing to pay for products from brands that they identify themselves with and those who can help them “decorate” their personalities. Brands have become a way for young generations to identify themselves.

Compared with previous generations, Gen-Zs tend to buy more products with specific brand images to help build their own personal image.

Building characteristic communities

Private domain channels have become the main transaction scenario, quality services are highly valued.

61% of Generation Z have joined various types of shopping groups (14% brand membership group, 24% merchant membership group). These shopping groups have a major influence over their purchase decisions. Over 86% of those who joined these groups had purchasing intentions.

Apart from discounts, Gen-Zs also expect more soft experiences, in particular acquiring knowledge (44%), having readily available help (38%), and experiencing privileged treatments, more compared with older generations.

The effectiveness of discount promotions is fading; social media content has become the new major form of influence.

Compared with older generations, promotions through discounts are having less effect on the willingness to buy of the younger generation (Generation Z 44%; group born in 90-95 51%; group born in the 80s 53%).

Private domain channels are effectively capturing Generation Z’s attention. They often see the same brand repeatedly (28%), while social interaction can effectively encourage purchases.

Gen-Zs mainly get influenced by their friends (31%), acquaintances (25%), WeChat Moments (21%), KOLs (21%) through social media.

Creating quality content

Generation Z is spending their attention across multiple fields.

Gen-Zs love to indulge themselves and also love to explore possibilities. Hobbies are their major focus point (88%). In addition, they also pay attention to acquiring new knowledge (41%), enriching real-life experiences (37%).

Compared with previous generations, they pay more attention to product/service reviews (26%) and motivational content (22%).

Celebrities are effective in promoting brand awareness. 35% of Generation Z said that collaborations between brands and celebrities have great influence over their purchase decisions.

Brands collaborating with IPs can also effectively capture Gen-Z’s attention. 42% of them said that this type of collaboration has significant influence over their purchasing decisions.

Chinese Gen-Zs attention insights 2021

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China’s 3rd-party payment market 2021-2025e: mobile vs. internet https://www.chinainternetwatch.com/31297/third-party-mobile-payment/ Tue, 07 Sep 2021 03:00:03 +0000 https://www.chinainternetwatch.com/?p=31297

The third-party mobile payment transactions in China increased to 74.0 trillion yuan in the first quarter of 2021, a year-on-year increase of 39.1%, according to data from iResearch.

iReserarch forecasts China's third-party mobile payment market would reach 74.2 trillion yuan in the second quarter of 2021.

China's third-party mobile payment is mainly composed of three major sectors: personal applications, mobile finance, and mobile consumption. It is expected that in the second quarter of 2021, the consumer sector will see a certain percentage increase driven by 618 and other promotional activities, while the personal application sector will decline accordingly.

In the first quarter of 2021, QR code payment transactions was approximately RMB 10.6 trillion, which was slightly lower than the previous quarter due to the instability of commercial transactions during the Spring Festival.

iResearch believes that QR code payment transactions in the second quarter of 2021 i...

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Mini Program platforms 2021: WeChat vs. Alibaba vs. Baidu (Updated) https://www.chinainternetwatch.com/30749/mini-program-platforms/ Mon, 16 Aug 2021 11:00:13 +0000 https://www.chinainternetwatch.com/?p=30749

Mini Programs (MP) are light applications designed to run on top of a specific mobile app. Top technology companies in China have designed and run their own mini-program framework; and, the most popular ones include WeChat platform, Alibaba (Alipay platform; Taobao platform), Baidu Smart Program, and QuickApp.

Lifestyle service is the most popular category on all three mini-program platforms in 2020. Find out the top applications on WeChat, Alipay, and Baidu platforms.

Over half of the top 100 mobile apps in China had developed their mini-programs as of October 2020, according to QuestMobile.

WeChat Mini Program DAU exceeded 400 million as of August 2020 while Baidu and Alipay's mini program MAU exceeded 414 million and 500 million respectively in 2020.

Tencent and Alibaba owns over a quarter of the mini programs on their own MP platforms while Baidu only owns 10% of all smart mini-programs running on Baidu app.

[caption id="attachment_32350" align="aligncenter" widt...

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WeChat Mini Programs Insights 2021 https://www.chinainternetwatch.com/30755/wechat-mini-programs-stats/ Mon, 16 Aug 2021 11:00:02 +0000 https://www.chinainternetwatch.com/?p=30755

The number of monthly active users of WeChat Mini Programs has exceeded 863 million (as of December 2020) according to data from QuestMobile.

On average, each WeChat user uses 5.6 mini programs in December 2020, up from 5.1 a year ago.

The average time spent per user on WeChat Mini Programs increased by over 27% to 68.15 minutes.

Top WeChat Mini Program categories by MAU growth are Lifestyle Services, Business, Shopping, and Education in September 2020.

The GMV of mini-programs transactions has increased by 115% YoY, and the self-operated GMV of brand merchants has increased by 210% YoY, according to data shared at Tencent Global Digital Ecosystem Summit.

Pinduoduo secured more younger users on this platform. The fastest-growing industries utilizing WeChat Mini Programs are daily commodities, luxury goods, shopping centers and department stores.

The total GMV of mini programs in the first half of 2020 has reached the full year GMV in 2019. Total GMV in 2020 is...

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Why are the Blind Box so attractive to many consumers in China? https://www.chinainternetwatch.com/32202/blind-box-secrets/ Wed, 28 Jul 2021 00:30:57 +0000 https://www.chinainternetwatch.com/?p=32202

A box is supposed to function as a storage tool. But in recent years, the "Blind Box" has gained its popularity in China.

Benefiting from this trend, a Beijing-based toy maker Pop Mart raised $676 million in an initial public offering (IPO) at the end of 2020 which gave the company a valuation of $7 billion ahead of the trading debut.
The Trendy Box
December 10, 2020, Chinese toymaker Pop Mart International Group made a stellar debut on the Hong Kong stock market, closing nearly 80% higher than its issue price to end the day with a market capitalization of $12.5 billion.

The success of Pop Mart and its subsequent IPO is linked to a simple yet fascinating product - the Blind Box.

The second half of 2019 saw a sudden uprising of fashionable "Blind Box", which can be spotted everywhere, from a physical mall to the vast ocean of the internet - WeChat Moments, Weibo, etc.

As its name indicates, a Blink Box is a box for sale whose content is unknown to the buyer before maki...

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Secrets of Pinduoduo’s low-cost user acquisitions https://www.chinainternetwatch.com/32209/pdd-user-acquisition/ Mon, 19 Jul 2021 12:23:03 +0000 https://www.chinainternetwatch.com/?p=32209

Pinduoduo, China’s largest social e-commerce platform, is well known for its aggressive pricing as well as questionable product quality. Let's take a look at how Pinduoduo achieved low-cost user acquisition utilizing social power.

Cici received a link from her sister on WeChat, requesting her to click on it so that her sister could obtain cash rewards. She decided to do her sister a favor.

Cici then found out she also got a 79 yuan (US$12) cash reward. She was surprised at first but then found out the reward could be withdrawn only if she could obtain another 21 yuan (US$3) by inviting new users.

In short, she needed to achieve a threshold of 100 yuan to withdraw the fund.

She decided to try it out and shared the link with some of her friends. After only a few rounds, she accumulated already 98 yuan worth of rewards. But then it started to get harder: every new interaction brought her only a few more cents.

Finally, she did complete the task and successfully withdraw the...

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China online retail market overview 2021 https://www.chinainternetwatch.com/32120/online-retail-overview/ Tue, 06 Jul 2021 11:43:58 +0000 https://www.chinainternetwatch.com/?p=32120

In 2020, China's online retail sales reached 11.76 trillion yuan (US$1.82 trillion), with a year-on-year growth of 10.9%.

The online retail sales of physical goods reached 9.76 trillion yuan, with a year-on-year growth of 14.8%, accounting for nearly a quarter of the total retail sales of consumer goods.

The eastern region accounted for 84.5% of total online retail sales in China in 2020, with a growth of 10.7%, the highest among all regions.

According to the data from the National Bureau of Statistics, in the online consumption of physical goods in 2020, the consumption of food, apparel, and consumer commodity increased by 30.6%, 5.8%, and 16.2% year-on-year respectively.

Shangwu Data's monitoring shows that Apparel, Commodity, and Home Appliance have the largest share of 22.3%, 14.5%, and 10.8% by total online transactions.

The sales of smart kitchen appliances increased by 31.0% year on year; fitness equipment increased by 8.8% year on year, and small...

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China 618 Shopping Festival 2021: Tmall vs. JD https://www.chinainternetwatch.com/31961/618-shopping-festival-2021/ Mon, 21 Jun 2021 05:09:08 +0000 https://www.chinainternetwatch.com/?p=31961 Alibaba Tmall kicks off 2021’s 618 Shopping Festival on 24 May. This year’s pre-sale activities are obviously ahead of schedule. The balance will be paid on June 1, and the discount will last for 20 days.

There are some new “situations” in this year’s 618 festival.

On the one hand, 618 has become an important opportunity for online shopping of high value and large commodities; on the other hand, it’s also a good time for families to stock up, including the sales of home appliances, 3C, food, beauty products, and etc, which will reach the peak in the first half of the year during 618.

At the same time, many big brands lead the promotion activities, and the promotion discounts also attract many new consumers.

Smart and high-quality differentiated products have become the hot spots trends in the field of home appliances, driven by promotions from both home appliance brands and major e-commerce platforms.

Get an introduction of 618 Shopping Festival here.

80% of the enterprises, surveyed by Chinese media Yibang, participated in Tmall 618, more than half of them invested more than 30% of the 618 budget in Tmall, and 40% of the enterprises surveyed expected that more than half of the 618 sales would come from Tmall.

50% of the enterprises interviewed said that in the past year, Tmall had the highest conversion among all platforms.

CIW Dossier: 618 Shopping Festival provides a perspective of the merchants regarding the performance, advertising budget, and sales expectations on the top e-commerce platforms for 618 shopping festival.

Update (21 June 2021): During this year’s “618” (June 1-20), the State Post Bureau observed more than 6.59 billion pieces of parcels, a year-on-year increase of 24.24%, and an increase of 84.16% compared with the same period in 2019.

China’s total 618 sales in 2021 reached 578.48 billion yuan, an increase of 26.5% YoY, according to data from Syntun. Top 3 channels by total sales are Tmall, JD, and Pinduoduo. Download CIW Dossier: 618 Shopping Festival to get more sales insights.

Alibaba Tmall 618

Over 67% consider Tmall as the top platform for 618.

Among the enterprises surveyed, 51% invested more than 30% of their budgets in tmall. Among them, 10.6% of enterprises allocate more than 80% of the ad budget on the Tmall platform; most allocate 30% to 50% of their total 618 budget on Tmall.

Tmall is giving away RMB10 billion (US$1.57 billion) in consumer coupons and subsidies to help further stimulate post-Covid consumption during Tmall 618 Festival 2021.

According to the official introduction of Tmall, huge discounts will be launched from June 1 to June 20. The specific activities are as follows:

  • 20 yuan off every 300 yuan purchase with a total subsidy of 10 billion yuan
  • 88vip members will receive additional 520 yuan
  • Beauty products at flagship stores are cheaper than duty-free stores

A total of 250,000 brands participate in this year’s Tmall 618, which is 2.5 times that of last year. A total of 13 million products participate in offering discounts, of which 1.4 million are new products.

Tmall merchants almost all started the official live streaming for this year’s 618 shopping festival. About 100 celebrities have locked in Taobao Live to interact with fans. More than 500 CEOs have already made time for Tmall 618 in the agenda to face consumers and offer more brand discounts.

For more established brands, this year’s 618 festival is all about membership engagement. Shoppers who have signed up their favorite brands’ membership on Tmall can expect more additional benefits.

Tmall 618 sales

Millions of loyalty-program members on Tmall helped drive sales for 25 brands, which had each exceeded RMB100 million in transactions on June 1.

As of June 16, brand merchants have acquired nearly 60 million new members during Tmall 618, and some saw more than 50% of the transactions come from members. On June 1 alone, the first day of Tmall 618, there were 25 brands with a turnover of over 100 million yuan from members.

Since the beginning of this year, Tmall has strengthened its membership operation. The exclusive rights and benefits of brand members will be revealed many times in the search results and commodity display pagse, and various tools such as exclusive rights and benefits of members and member interaction are also provided for merchants.

About 20 brand merchants exceeded 10 million member milestone on Tmall. Alibaba didn’t disclose detailed sales value this year.

Tmall Hey Box: Alibaba’s best seller incubator for top brands

JD.com 618

Jingdong announced it will focus on live streaming, short videos, graphics, and quiz to enrich its content marketing for the ongoing 618 Grand Promotion at a kick-off event on May 20 in Beijing.

JD.com will invite more than 300 celebrities, and executives from nearly 600 brand partners to participate in various promotions through live streaming during the promotion.

The company will also invite KOLs and celebrities to create short videos to assist promotion. More than 1,000 professional buyers or KOLs from different categories will be invited to share their favorite products to drive more traffic to JD.com.

JD will hold two galas through live streaming inviting celebrities to bring consumers the festive atmosphere of 618. Leveraging JD and WeChat’s strength, JD will offer live streaming through 10 WeChat accounts.

Over 30,000 new brands and stores were launched during 618 on JD Super, JD’s online supermarket, with over 2.4 million new products.

Shoppers in Nanjing, Jiangsu province are the most active, taking the crown for the largest order volume.

Group buying is most used in Harbin. The average amount per group buy order in the chilly capital of Heilongjiang province in Northeast China this year exceeds RMB 1,000 yuan.

Other top competitors for 618 include Kuaishou, Douyin (TikTok), Pinduoduo, and Meituan.

JD & Douyin (TikTok)

JD signed a 20 billion yuan collaboration agreement with Douyin (TikTok). And, JD’s products are integrated on Douyin in this year’s 618 festival and users can buy JD products on Douyin directly without being redirected to an external page.

JD 618 Sales

In the first three minutes on Jun. 18, JD Super, JD’s online supermarket, saw sales increase 10 times, and in the first two minutes, packaged foods exceeded RMB 300 million yuan while the maternal and baby category exceeded RMB 200 million yuan.

In the first hour on Jun. 18, JD Fresh saw sales increase 70% YOY. Looking at sub-categories, seafood, meat, eggs and poultry, and fruit and vegetables increased 160%, 105% and 80% respectively. Sales of food which require little effort to prepare increased 160%.

JD.com reported a total transaction of over RMB 343.8 billion yuan for its 18-day 618 shopping festival 2021, representing a growth of 27.7% YoY from the same period in 2020 (RMB 269.2 billion yuan).

The pet category has boomed. Post-90s consumers spent an average of RMB 507 yuan per month on pet products in 2021. During 618, smart pet products increased 47% YOY.

Luxury products. Sales of Ferragamo, TOD’s, and BALLY increased 150%, 232% and 600% respectively. In addition, over 20 designer brands saw sales increase over 15 times YoY on JD platform. Consumers continue to embrace the convenience of buying luxury products online.

Sales of imported gaming phones on JD Worldwide increased by nearly three times. Imported dry cat food increased by 108%.

During the 18-day promotion, sales of JD’s online real estate business increased 230% YOY. Sales of housekeeping and cleaning services increased 6.3 times while the order number of car maintenance increased 285%.

Genetic testing service sales increased 23 times, making it the fastest-growing category of healthcare services on Jingdong. Oral health product sales increased 447%.

The top five international brands are Aptamil from Germany, Estee Lauder from the U.S., A2 from Australia, Nintendo from Japan, and Sulwhasoo from Korea. In the fresh food category, 5 million Zespri kiwis and 260,000 durians from Thailand were sold during the 18-day sale.

Social e-commerce Pinduoduo’s road to brand upgrade

618 Sales performance of other brands and platforms

Xiaomi 618

From June 1 to 18, the total GMV across all Xiaomi’s platforms exceeded 19 billion yuan (US$29.37 bn), with a year-on-year growth of 90%.

Its sales volume of smartphones ranked first among all Android phones, the TV category won first place in the sales volume / sales values. Xiaomi 11 Pro is the best selling model on both JD and Tmall.

Xiaomi’s offline sales channels saw 123% YoY increase in total transaction values. Live streaming delivered 1.34 billion yuan in total sales, an 92% growth YoY.

Douyin (TikTok) 618

Douyin 618 started on June 1st and ended at 8 a.m. on June 19th. The top 5 best-selling brands are:

  1. Chuchu (new brand)
  2. WHOO
  3. China Gold
  4. Shepinhui
  5. Huawei

Apple ranks sixth overall or second after Huawei under “3C electronics” category.

The top five are expected to have sales of more than 100 million yuan. Unfortunately, Apple, Adidas, Nike, and other international brands are not expected to exceed 100 million yuan in sales on Douyin, according to Chinese media Yibang Dongli.

Douyin saw the largest new user growth of over 392% YoY among post-00s, followed by post-90s (+225.9% YoY).

This is Apple’s second year of participation in 618 and saw a sales increase of 16% YoY, according to data from Counterpoint Research.

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Social e-commerce Pinduoduo’s road to brand upgrade

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