In this exciting installment, we pick up on additional key points of the ChinaConnect 2011 conference in Paris last week (see Part I and Part II).
#11. Money
Following the money (or its sources rather) can be a little tricky in China. You have old money and new money, money made in the public sector (lots of corruption there) and money made in the private sector (natural resources and real estate being two of the biggest sources). Then you have people making the transition between public and private, and those benefiting from family connections (a huge booster in China). The Chinese culture is not a wealth flaunting one - discretion is prized in China. For every exuberant millionaire, there are two others hiding behind him.
#12. Cars, cars, cars
The Chinese market is gaga over cars. Cars are the most discussed topics online (blogs, BBS, etc) closely followed by mobile. Audi and Mercedes Benz got smart about the Chinese market years ago. Both went after civil servants and high-level government workers with Audi completely controlling low-end to mid-level managers and Benz basically owning the upper crust segment. Everyone in the Chinese government either owns a set of rings or a three-pointed star. Matter of fact, that's how you recognize them :)
#13. UGC
I knew this before the conference, but it was pointed out there again, and I think it's strategically important - Chinese people are very big on content creation - like 43% big versus our meager 23% in the West (namely the USA, Europe is lower). This means they are culturally a much more "engaged" audience than the US and clearly Europe.
#14. Avatars
Chinese people aren't huge fans of "self-branding" - They would much rather use an online avatar (cartoon self-representation) than an actual mugshot or picture. As a result, social media networks (like QQ) encourage users to "dress up" (customize) these avatars using products like eyewear, fashion, or makeup. And this can be brand-driven for the right price. The same can be said for application "skins" - People can customize their QQ apps with their favorite brand themes and colors. Of course brands pay through the nose for this priviledge. Katching.
My understanding is they're way more mainstream in China that in the West. China has no credit cards but plenty of debit ones apparently. Gaming is huge in China and companies like Tencent are making a killing on micro-selling every object imaginable to digital players from farming tools to ustensils and clothing (which can also be branded - now you're collecting from the brands as well - katching).
Curious!!!! any data or views on the tourism Chinese market. For you, Outbound chinese tourism market it's interesting.
ReplyDeleteHurun report said:
91% increase in Chinese traveler spending according to new Global Blue Report
57% of Chinese millionaires make their own bookings
Clothes, watches, jewelry, cosmetics and fabrics most popular purchases
Shangri-La is most popular hotel among Chinese Billionaires
Have a nice day and keep in touch
Claude
Hi Claude. I believe 75M Chinese tourist circle the globe every year. More luxury products are sold outside China than inside - for watches mostly Geneva and Paris. Patek sold so many watches to Chinese tourists that they felt compelled to throttle them to X per passport (I forget the number but that's irrelevant). So yes it's definitely not all about the internal market but also the "exported" one - Often something brands don't realize IMHO. You do your marcom inside the great wall but you sell outside (as well) :)
ReplyDeleteCheers
J.