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Travel The Digital Silk Road with China Digital Conference

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Understand the trend in China's digital world.

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Travel The Digital Silk Road with China Digital Conference

  1. 1. THE ONLINE, MARKETING & RESEARCH AGENCY Travel The Digital Silk Road With China Digital Conference #CDC2014 Mark Tanner CHINA SKINNY Sydney, 24 October 2014 @@thechinaskinny thechinaskinny SHANGHAI SHANGHAI | | LOS LOS ANGELES ANGELES | LONDON | LONDON chinaskinny.chinaskinny.com com
  2. 2. THE ONLINE, MARKETING & RESEARCH AGENCY China Today: the Tip of the Iceberg Affluent & Upper Middle Class 2012 256 million urban households 2022 357 million urban households Affluent & Upper Middle Class Source: McKinsey @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  3. 3. THE ONLINE, MARKETING & RESEARCH AGENCY Who’s Doing the Shopping? 2/3 of China’s international travellers are under 35 Source: McKinsey China’s affluent & worldly youth are most likely to buy foreign brands @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  4. 4. THE ONLINE, MARKETING & RESEARCH AGENCY China’s Urban Consumers’ Media Consumption 9.4 hours per week 26 hours per week Source: Accenture 90% of Weibo Users are aged 18-34 Source: Weibo 81% of Tmall & Taobao Customers are aged 18-34 Source: Alibaba @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  5. 5. THE ONLINE, MARKETING & RESEARCH AGENCY The All Star Line Up Michael Motherwell Search Director, Lined Media Ben Franzi GM Sales, Global eCommerce Platforms, Australia Post Nina Kubik-Cheng Senior Vice President, Dragon Trail Interactive Tony Shu WeChat General Agency and Partner; Account Director, Interactive Media Pty Ltd Charles Thompson General Manager International & Partner Sales, Australia Post |StarTrack Express Arthur Li Regional Head of Sales & Marketing, UnionPay International South Pacific Benjamin Sun Founder and Managing Director, Think China Johnny Wong Co-founder and Analytics Director, Think China Dr Mathew McDougall Founder & CEO Digital Jungle William Chen Founder / Chief Locksmith, ChinaKey @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  6. 6. THE ONLINE, MARKETING & RESEARCH AGENCY David Bowie, 1983 “I'll give you television” C h i n a Girl, line 20 Let’s Dance. Side 1, song 2 @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  7. 7. THE ONLINE, MARKETING & RESEARCH AGENCY @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  8. 8. THE ONLINE, MARKETING & RESEARCH AGENCY The Interconnectivity of China’s Digital World 5 Trends Reshaping China Mark Tanner CHINA SKINNY 22 October 2014 SHANGHAI | LOS ANGELES | LONDON chinaskinny.com @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  9. 9. THE ONLINE, MARKETING & RESEARCH AGENCY 1. Lack of Trust of a Key Digital Driver @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  10. 10. THE ONLINE, MARKETING & RESEARCH AGENCY Lack of Trust Means Chinese Consumers Do More Research 95% trust a brand more if they’ve seen it on social media Source: eMarketer 95% trust a brand more if they’ve seen it on social media Source: eMarketer @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  11. 11. THE ONLINE, MARKETING & RESEARCH AGENCY 2. Online Chinese are Shopping Up A Storm 14% shop online daily (5% do it globally) 63% shop online weekly (21% do it globally) when Chinese hear ‘shopping’ 45% think of doing it online Source: PWC Source: McCann @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  12. 12. THE ONLINE, MARKETING & RESEARCH AGENCY Online Shoppers Breaking World Records 600,000 cartons of milk sold on yhd.com sold out in 52 minutes @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  13. 13. THE ONLINE, MARKETING & RESEARCH AGENCY Some Surprise Sellers Online in China Condoms shaped like Ferrero Rochers were in the top-3 selling Valentine’s Day gift online in China in 2014 Corpses going for a song at ¥126,500 (AU$23,500) with a 2-year warranty @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  14. 14. THE ONLINE, MARKETING & RESEARCH AGENCY eCommerce influenced by other channels 85% share online shopping experiences on social media 80% read social media reviews before buying online Source: A.T. Kearney Source: Nielsen @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  15. 15. THE ONLINE, MARKETING & RESEARCH AGENCY 3. The Rise of Social Commerce 2005 17 cars/1,000 2020 184 cars/1,000 Source: Cetelem 60,000 cars sold in 2 weeks on Weibo @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  16. 16. THE ONLINE, MARKETING & RESEARCH AGENCY Social Commerce Across Many Segments 2005 31 million 2017 220 million Source: CLSA Hotel Vienna sold ¥10m ($1.8m) in bookings 3 months on WeChat 84% Chinese tourists share their experiences on social media during & after their trip @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  17. 17. THE ONLINE, MARKETING & RESEARCH AGENCY 4. Mobile Getting Consumers Online 80% Weibo users mobile 100% WeChat mobile 1/3 Taobao & Tmall purchases on mobile @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  18. 18. THE ONLINE, MARKETING & RESEARCH AGENCY Mobile’s Offline Relevance 50% check products offline before buying online 75% of check prices online before buying offline Source: Accenture 75% Chinese unsatisfied with experience through multi channels 40% shifted brands in past year due to poor experience Source: Deloitte @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  19. 19. THE ONLINE, MARKETING & RESEARCH AGENCY Mobile’s Offline Relevance 75% Chinese unsatisfied with experience through multi channels 40% shifted brands in past year due to poor experience Source: Deloitte @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  20. 20. THE ONLINE, MARKETING & RESEARCH AGENCY 5. China’s Rise of ‘Smaller’ Cities Redefining Target Markets How many cities in China people than Sydney? have more @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  21. 21. THE ONLINE, MARKETING & RESEARCH AGENCY 5. China’s Rise of ‘Smaller’ Cities Redefining Target Markets 110 cities in China have more people than Sydney Source: China Skinny using data from the National Bureau of Statistics of China @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  22. 22. THE ONLINE, MARKETING & RESEARCH AGENCY 75% of China’s Affluent Consumers will live in ‘Smaller’ Cities by 2020 2012 35% of Android mobiles bought in Tier 3 & 4 cities 2013 45% of Android mobiles bought in Tier 3 & 4 cities Source: Baidu Online shoppers in Tier 3 & 4 cities spent 28% more each than Tier 1 & 2 cities in 2013 Source: Alibaba @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  23. 23. THE ONLINE, MARKETING & RESEARCH AGENCY Traditional Online Tactics Getting Tougher Tougher to get ROI with Key Opinion Leaders Harder to discover your brand on WeChat The rich get richer on ecommerce and social media @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  24. 24. THE ONLINE, MARKETING & RESEARCH AGENCY Case Study: Reach New Consumers with Integration 5-month Tourism Malaysia Social Media 238% across 170K followers 206% New follower rate + 12K mentions #乐乐我爱大马# + 2nd most popular destination for travel purchases on Taobao Doubled new followers when out on the street @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  25. 25. THE ONLINE, MARKETING & RESEARCH AGENCY Case Study: Enhance Existing Channels Only a small number who buy think about the Only a small number who buy think about the food again food again shoppers visit store try food buy @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  26. 26. THE ONLINE, MARKETING & RESEARCH AGENCY To Summarize 1. Lack of trust is a key digital driver 2. Online Chinese are shopping up a storm 3. The rise of social commerce 4. Mobile getting consumers online 5. China’s rise of ‘smaller cities’ redefining target markets • Traditional techniques getting tougher • Integration captures new audiences and enhances existing channels @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  27. 27. THE ONLINE, MARKETING & RESEARCH AGENCY Visit chinaskinny.com to subscribe to the free Weekly China Skinny newsletter The most-read English-language newsletter about marketing to China. @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com
  28. 28. THE ONLINE, MARKETING & RESEARCH AGENCY QUESTIONS? @thechinaskinny SHANGHAI | LOS ANGELES | LONDON chinaskinny.com

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