This is a really comprehensive info-graphic of China’s growing online population. Total China online population has surpassed 513 Million according to CNNIC. That’s a 38.3% penetration in China -still much room to grow!
Also, see the infographic of what’s happening in every 60seconds on the China online population. Interesting, isn’t it!
Stumbled upon an article on Campaign Asia about marketing luxury brands in the digital space.
Key takeaway points:
If you are interested to read more, the full article is appended below.
Written by Arielle Yap
Saurabh Sharman, planning partner, Ogilvy & Mather China, shares his insights on the intersection between digital technology and luxury marketing. He says luxury marketers have much to gain by understanding and deploying digital technologies, especially in large markets like China and India.
1. Digital is neither exclusive nor accessible; it is pervasive.
Luxury brands often wonder whether to use digital as a tool to further their exclusivity or accessibility. Digital offers both and much more. Today digital is the creative convergence of digital arts, science, technology and business for human expression, communication, social interaction and education.
Burberry, for example, deployed digital smartly for the launch of its flagship store in Beijing. Digital tactics were used to reach out to fans through social media, and to energise music and fashion shows through cutting edge digital technology. By doing so, Burberry transformed a new store opening into a groundbreaking audiovisual extravaganza, that in turn generated a tremendous amount of social media buzz.
2. Digital can engage the younger luxury buyer.
Most luxury brands are not very digitally savvy because many developed in markets where luxury buyers were typically older and less engaged online. In Asia, and more specifically in China, the situation is very different. 80 per cent of wealthy consumers in China are under the age of 45. Compare this with figures from the US (30 per cent) and Japan (19 per cent). (Source: McKinsey Global Institute)
3. Digital content should give currency. As the millionaire (and even billionaire) community grows, luxury needs to be about more than just price. It is increasingly about the story behind the making of the product and the unique experience that it promises. As the new rich evolve, ‘thoughts’ are gaining currency over ‘things’, and ‘experience’ is becoming more important than ‘expensive’. Digital content for luxury brands needs to be worth sharing. Imagine a TAG Heuer owner’s firsthand account of a three-month expedition climbing virgin peaks across continents. Such stories have immense talk value and give valuable social currency to their owners. Dunhill’s Day 8 is a great example of this. Dunhill’s dedicated lifestyle website and mobile application cover the new and noteworthy across topics such as creativity, travel, culture, elegance and intelligence.
4. Digital can create a community around the mythology.
Luxury brands have rich history and heritage. And luxury buyers crave communities of like-minded people; they want to be part of exclusive clubs. Luxury brands have an important role to play here. What’s more, in countries like China and India, which both have vast populations and relatively lower service standards, it is not always easy to serve the luxury buyer in ‘physical space’. Digital is the missing link that can bridge this gap. While luxury offers exclusivity, digital can provide privacy and personalisation.
5. Digital conveys youthful energy. But it is different from being a youth brand.
As luxury brands compete to entice younger luxury buyers, they run the risk of confusing youthful energy with the notion of a youth brand. These competing themes must be balanced carefully. Marketers need to view digital as a platform for listening to younger buyers and finding ways to be inspired by them. Mercedes Benz did something similar when they began interacting with the younger Generation Y and soliciting their feedback and ideas on vehicle design.
One of the major trends that stood out when taking a look back at 2011 is China’s growing online shopping and ecommerce!
Total RMB spend online as of Jan 4 2012 has increased from 7,000,000,000,000 to 7,500,000,000,000 ! (In case you lost count on the zeros, it’s 700 billion to 750 billion RMB! )
Who are the Big Players?
Alibaba Group, founded by former tour guide Jack Ma, is the biggest e-commerce player in China. Its Taobao unit is now the single largest e-commerce platform in China, dominating half of all parcels sent in China.
Taobao paved the way for other e-commerce players to compete, first by creating e-payment system Alipay and also by pioneering an overall e-commerce ecosystem that caters specifically to Chinese consumers.
But Taobao is not spared the intense competition.Dangdang, Tencent Holdings, Wal-Mart Stores Inc and 360buy, backed by Russian internet investment group Digital Sky Technologies, are battling for a share of the pie.
360Buy has been one of the most aggressive on the Chinese web in the past few years. Just last month it made a move into the luxury retail sector when it opened 360Top. And the company’s purported 25,000 new hires look set to perpetuate that growth in 2012.
As competition gets more intense, seemingly, the next step forward is moving into the luxury retail sector as the demand of luxury goods from the middle-class Chinese burgeons.
Written by: Arielle Yap
Source:
http://www.penn-olson.com/2012/01/02/online-shopping-china-2011/
http://www.reuters.com/article/2011/12/22/us-china-ecommerce-idUSTRE7BL08T20111222
Earlier last month, we shared some insights from a joint survey on Mobile Internet and Market Trends over 30 markets globally and 11 markets in Asia-Pacific done by Ipsos and Google. This will be a continuation report, pertaining to mobile users behaviours.
Chinese are highly motivated to call to action by mobile ad
The latest Marstercard’s survey results has shown that Singapore, India and Japan consumers spend the most on luxury goods.
This survey was conducted from March to April, 2011 and involved 6,022 consumers from eight Asia-Pacific countries including India, Indonesia, Japan, Lebanon, Malaysia, the Philippines, Singapore and Thailand.
Data collection was via internet surveys, personal, telephone and computer aided telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary, it was stated.
Source: The Economist Times
Posted by : Arielle Yap
E-commerce is an area of great potential in China. A 2010 report by Bain & Company found that the emergence of online factory outlets, overseas websites and 3rd party agents are driving internet sales growth. And in its Chinese High-End Consumers Report, the Chinese market research firm Huicong D&B, found that online shopping is finally catching on, but lags behind demand. Several factors driving Chinese consumers to buy online have been identified by the market research firm, DDMA. Some of the most significant factors include location, poor sales staff, and perceived reliability of products.
The potential growth of e-tailing in China is illustrated in the following info-gram:
Read more at: http://www.chinafashiontrends.com/2011/09/06/report-on-luxury-e-tailing-in-china/
Posted by: Jeremy Lin (Mediacom SG)
Making further inroads into the mobile marketing space, Procter & Gamble (P&G) has signed an advertising deal with IPC Media.
The six month contract will see P&G have a presence across a number of IPC’s mobile optimised sites. IPC Media produces over 60 media brands with print alone reaching almost two thirds of UK women and 42% of UK men. The partnership involves activity from a variety of P&G brands including Max Factor, Fairy and Pantene.
Read more at http://www.marketing-interactive.com/news/28358
Posted by: Jeremy Lin (Mediacom SG)
Prestigious 