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Isentia China¹s Digital Economy_Presentation_Feb

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Isentia China¹s Digital Economy_Presentation_Feb

  1. 1. CHINA’S DIGITAL ECONOMY FEBRUARY 2016
  2. 2. 欢迎 • China • China’s digital economy • The Great Firewall • Social Media • Online shopping • Australia through Chinese eyes China’s digital economy
  3. 3. PEOPLE’S REPUBLIC OF CHINA A MARKET OF A PEOPLE GDP IN 2015 IN COMPARISON TO AUSTRALIA’S 2.5% IN THE WORLD 1.37 BILLION US$11.2 TRILLION 7.3% GDP GROWTH LEADING TRADING NATION China’s digital economy
  4. 4. China’s digital economy 16,764,455 BABIES BORN IN CHINA IN 2014
  5. 5. THE EXPONENTIAL GROWTH OF CHINA’S ECONOMY 1952 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 1952 1952 1952 1952 1952 1952 1952 1952 1952 1952 1952 1952 1952 67.9 billion in 1952 Korean War Great Leap Forward Cultural Revolution Market-based economic reforms since 1978 Farm Privatization Shenzhen SEZ 1997 Asian Financial Crisis 18232.1 Billion in 2005 Shanghai SEZ WTO Entry PEOPLE’S REPUBLIC OF CHINA’S NOMINAL GROSS DOMESTIC PRODUCT (GDP BETWEEN 1952 TO 2005 GDP(INBILLIONSOFRMBYUAN) China’s digital economy
  6. 6. CHANGING FACE OF GLOBAL ECONOMICS 40% 30% 20% 10% 0% 1820 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 %OFGLOBALGDP 19% 2% 2% 2% 6% 27% 16% 33% 15% 16% - USA - Europe - China - India - Latin Source: Angus Maddison, University of Groningen, OECD, data post 1980 based on IMF data (GDP adjusted for purchasing power parity) China’s digital economy
  7. 7. CHINA AND THE USA SEATTLE DENVER CHICAGO DALLAS BOSTON LOS ANGELES SAN FRANCISCO MIAMI NEW YORK ATLANTA URUMQI LHASA XIAN KUNMING BEIJING HAERBIN SHENYANG TIANJING NANJING SHANGHAI CHONGQING TAIPEI GUANGZHOU HONG KONG WASHINGTON DC China’s digital economy
  8. 8. Image credit: East Meets West: An Infographic Portrait by Yang Liu China’s digital economy
  9. 9. Image credit: East Meets West: An Infographic Portrait by Yang Liu China’s digital economy
  10. 10. Image credit: East Meets West: An Infographic Portrait by Yang Liu China’s digital economy
  11. 11. Image credit: East Meets West: An Infographic Portrait by Yang Liu China’s digital economy
  12. 12. Image credit: East Meets West: An Infographic Portrait by Yang Liu China’s digital economy
  13. 13. Image credit: East Meets West: An Infographic Portrait by Yang Liu China’s digital economy
  14. 14. CHINESE DIGITAL LANDSCAPE 74%ONLINE NEWS 87%INSTANT MESSAGING 77%ONLINE SEARCH ONLINE USAGE 2013 2014 81% 83.4% 2013 2014 81.7% 80.9% ONLINE ACTIVITY 21.5% 77% MARKET DOMINANCE China’s digital economy
  15. 15. THE INTERNET CANNIBALISES OTHER MEDIA FORMATS Time (minutes) spent on each media per day Source: JWT Shanghai 32 29 28 8 9 10 170 162 150 54 48 45 168 196 217 NEWSPAPER MAGAZINE RADIOTV INTERNET 2012 2013 2014 TIME IN MINUTES SPENT ON MEDIA PER DAY China’s digital economy
  16. 16. THE BIG THREE Source: JWT Shanghai MONTHLY ACTIVE USERS TOTAL REVENUES IN FISCAL YEAR 2013 500 MILLION ON MOBILE BAIDU SEARCH BY JULY 2014 $5.2 BILLION $5.5 BILLION $9.7 BILLION (RMB 60.4 BILLION) 27 MILLION ON MOBILE REPORTED IN JUNE 2014 819.8 MILLION ON QQ IN Q3 2013 SOCIAL NETWORK + MOREECOMMERCE + MORESEARCH ENGINE + MORE China’s digital economy
  17. 17. TWO DOMINANT PLAYERS IN WECHAT AND SINA WEIBO Source: Tencent and Sina 468 167MILLION MILLIONMONTHLY ACTIVE USERS MONTHLY ACTIVE USERS Video killed the... @isentia @spence7zero
  18. 18. EVOLUTION OF MESSAGING Frequency of Communication HIGH LOW HIGH Contacts FREQUENCT INTERACTIONS WITH SMALLER GROUP PF CLOSE CONTACTS BROADCASTING FEWER MESSAGES TO LARGE AUDIENCES Source: Anjney Midha, KPCB Associate; Jared Morgenstem, KPCB Entrepreneur Partner China’s digital economy
  19. 19. WECHAT – APPS WITHIN AN APP • MESSAGING • MOMENTS • PHONE CALLS • VIDEO CALLS • CONFERENCE CALLING • MESSAGE IN A BOTTLE (DRIFT) • STICKERS • PAYMENTS AND GIFTING • WALLET • LOCATION BASED MARKETING • TAXI China’s digital economy
  20. 20. KEY OPINION LEADERS (KOLs)
  21. 21. China’s digital economy 13.3 MILLION FOLLOWERS
  22. 22. Video killed the... @isentia @spence7zero • Presented to Chinese President Xi Jinping on his visit to Tasmania • 65,000 visitors per year to Bridestowe Lavender Farm • Sales of more than 40,000 bears per annum • Online tag of authenticity check • Bobbie the Bear the TV Show for ABC International Source: Tencent and Sina BOBBIE THE BEAR
  23. 23. CHINESE ECOMMERCE • 20,000 Chinese domiciled ecommerce businesses • 5,000 online shopping platforms • $US1 trillion digital economy 2/3 the size of Australia’s whole economy Avg. Buzz 27034 ONLINE SHOPPING POSTS BY INDIVIDUAL PURCHASE AGENTS WITH REGARDS TO AUSTRALIAN VITAMIN PRODUCTS 19960 14802 15098 16807 18756 22704 25292 29893 42701 47104 37532 33757 11.11 Online Shopping Festival & 12.12 Online Shopping Festival Source: Isentia China; Quarter 2, FY 2015 0 10000 20000 30000 40000 50000 March April May June July August Sept. Oct Nov Dec Jan Feb China’s digital economy
  24. 24. THE SHOPPING FESTIVAL AND SINGLES DAY • Singles Day is 11 November each year • Biggest shopping day in the global calendar • US$14.3 billion in 2015 including US$5 billion in the first 90 minutes • US$1.6 billion for Black Friday and Thanksgiving combined Products cheaper than usual Online Campaigns Discount Coupon Freshness Wider selection of items To save time 0% 5% 10% 15% 20% 25% 30% 35% 40% 35% 19% 17% 13% 11% 5% REASONS FOR SHOPPING DUIRNG ONLINE SHOPPING FESTIVAL Source: CNNIC China’s digital economy
  25. 25. 77.8% 50.2% 41.2% 53.1% 39.6% 35% 40.8% 30.7% 29.1% Clothes & Shoes ElectronicsPhone Credit Groceries Consumer Health WHAT ARE PEOPLE BUYING ONLINE IN CHINA? Source: Kantar Media, 2014 China’s digital economy
  26. 26. CHINA & AUSTRALIA 94% OF CHINA’S POPULATION LIVES ON THE EASTERN SEABOARD China’s digital economy
  27. 27. 0 5000 10000 15000 20000 25000 March April May June July August Sept. Oct Nov Dec Jan Feb Health A Health B Health C Health D Health E AUSTRALIAN CONSUMER HEALTH – MARKET ANALYSIS By way of example and to test the relative impact of Chinese social media and online shopping on Australian products and services Isentia tracked mentions and products offered for sale in China from five competing Australian domiciled consumer health organisations. Source: Isentia China; Quarter 2, FY 2015 China’s digital economy
  28. 28. SENTIMENT OF AUSTRALIAN BUSINESSES Sentiment in comments and approval generally over Australian consumer health products was very high, due in large part to the perceived safety of products sourced from Australia and New Zealand. Source: Isentia China; Quarter 2, FY 2015 Health A Health B Health C Health D Health E Industry 0% 10% 20% 30% 40% 50% 70%60% 80% 90% 100% 9.14% 89.32% 80.74% 98.57% 66.16% 78.04% 55.64% 31.65% 14.34% 27.34% 16.12% Negative Neutral Positive Very Positive China’s digital economy
  29. 29. Brand mentions 40000 Health A Health B Health C Health D Health E 80000 120000 160000 200000 94678 39,202 20069 59803 54566 32623 Product Discussion % Brand Discussion % Product Discussion 39% 58% 72% 69% 68% 61% 42% 28% 31% 32% PRODUCT VERSUS BRAND IN CONVERSATION Source: Isentia China; Quarter 2, FY 2015 China’s digital economy
  30. 30. KEY WORDS AND PHRASES Source: Isentia China; Quarter 2, FY 2015 China’s digital economy
  31. 31. Source: Business Insider China’s digital economy THE GREY MARKET ECONOMY BLACKMORES’ ASIAN BUSINESS IS WORTH $84 MILLION PER ANNUM BUT THE BUSINESS ESTIMATES THAT DOMESTIC AUSTRALIAN SALES FOR ‘GREY MARKET’ RESALE IN CHINA ADDS A FURTHER $70 MILLION PER ANNUM
  32. 32. WHERE ARE PURCHASE AGENTS FROM? MORE THAN ONE THIRD OF ALL PURCHASE AGENTS SELLING CONSUMER HEALTH PRODUCTS FROM AUSTRALIAN DOMICILED BUSINESSES LIVE IN AUSTRALIA AUS 96% OF PURCHASE AGENT ACCOUNTS ARE UNVERIFIED Source: Isentia China; Quarter 2, FY 2015 China’s digital economy
  33. 33. AUSTRALIAN ORGANISATIONS ON SINA WEIBO China’s digital economy
  34. 34. CHINESE AUSTRALIAN COMMUNITY POPULATION DISTRIBUTION Source: Monash City Science China’s digital economy
  35. 35. Source: Weibo.com China’s digital economy SINA WEIBO IN AUSTRALIA • SINA WEIBO IS THE 6TH MOST VISITED SITE IN CHINA AND THE 63RD MOST VISITED WEBSITE IN AUSTRALIA • 368 MILLION GLOBAL USERS OF WHOM 600,000 ARE DOMICILED IN AUSTRALIA • 71% OF THE CHINESE AUSTRALIAN COMMUNITY HAVE A SINA WEIBO ACCOUNT
  36. 36. AUSTRALIAN ORGANISATIONS ON SINA WEIBO There are 10,000 Australian business accounts, for example: RMIT ABC International Westpac Tourism Victoria IG Markets Tennis Australia Tourism Australia Monash University Commonwealth Bank Source: Weibo.com China’s digital economy
  37. 37. AUSTRALIAN USE OF CHINESE SOCIAL CHANNELS China’s digital economy
  38. 38. ISENTIA UNLOCKING CHINA China’s digital economy
  39. 39. China’s digital economy ISENTIA UNLOCKING CHINA Understanding China A monthly update on social media activity and the Chinese digital economy and specifically how it impacts on the ANZ market. Insight Who is talking about your brand and services or selling your products? How do you position against local and international competitors? Engagement Targeting Chinese consumers either in the PRC or domiciled in Australia. Establishing accounts and profiles on Sina Weibo and WeChat. Monitoring Ongoing monitoring of conversations and online sales for your brand, product or service.
  40. 40. China’s digital economy
  41. 41. China’s digital economy

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