1. O2O Redefined Women OnlyInteractive Now Conscious Health
Online-to-offline service is
growing more popular among
consumers. Traditional retail
brands and start-ups are striving
to convert consumer interest
into sustainable business.
Independent in their
personal and financial
lives, Chinese women
are creating a
‘women – only’ market.
Consumers want to see
and experience the world
at all times, and new digital
technology is working to
keep end users at the
cutting edge of life.
Seeking out proactive over
preventative measures,
Chinese consumers treat
their body with more
sophistication than ever.
CONSUMER TRENDS 2016
4. O2O
REDEFINED
WOMEN
ONLY
INTERACTIVE
NOW
CONSCIOUS
HEALTH
08
What’s happening
in 2016?
14
Why consumers will
buy into this
18
Where next?
40
What’s happening
in 2016?
44
Why consumers will
buy into this
49
Where next?
26
What’s happening
in 2016?
33
Why consumers will
buy into this
34
Where next?
55
What’s happening
in 2016?
62
Why consumers will
buy into this
64
Where next?
05 23 37 51
6. 0706
Online-to-offline
(O2O) service
is growing more
innovative and popular
among consumers,
and both traditional
retail brands and
start-ups are striving
to convert consumers’
interests into
sustainable business.
O2ORedefined
O2ORedefined
7. 0908
WHAT’S
HAPPENING
IN 2016?
In March 2015, ‘Internet+’
was brought to the national
spotlight during the National
People’s Congress. One of
the focal points was to encourage
traditional businesses and
start-ups to leverage the internet
for creating new business models
and better brand opportunities.
O2O, a popular term referring
to online-to-offline on-demand
business, is growing rapidly across
a wide array of sectors in China’s
major cities. From retail delivery to
door-to-door professional services,
consumers only need to tap on
their smartphones to place an
order, all while sitting comfortably
on the couch.
From retail delivery to door-to-door
professional services, consumers only
need to tap on their smartphones to place
an order, all while sitting comfortably on
the couch.
O2O has permeated and expanded
into every aspect of Chinese
consumers’ lives. In the last year,
O2O services have accelerated
from a developmental phase to a
commercially viable business model
across China’s largest cities. With
bigger and faster logistics networks
and more dynamic service models,
O2O services are expected to
elevate to new industries, spread to
more cities and regions, and offer
more dynamic and personalised
services in 2016.
The rise of O2O services via
mobile devices gives brands a
great number of opportunities to
reach and engage consumers –
anywhere, anytime. Thanks to
geolocation technology and wide
adoption of mobile payments
solutions, on-demand taxi hailing
services such as China’s Didi
Dache and US-based Uber have
made remarkable progress despite
scattered opposition from the
conventional taxi industry.
DIDI DACHE
O2ORedefined
O2ORedefined
8. 1110
“Daojia”, which translates to
door-to-door in Chinese, has
extended beyond retailing O2O
to the professional services
sector. We have seen a variety of
door-to-door service examples,
encompassing everything from
massage and food preparation,
to beauty and cosmetics. We’re
also seeing door-to-door services
at the office, with some brands
offering services to consumers in
their automobiles. Chinese food
delivery company Fun Box offers
pre-ordered lunch boxes online to
be picked up at vending machines
in office buildings. Via a mobile
app, Chinese start-up company
Leliche offers on-demand car wash
services wherever consumers’
cars are located. We’re seeing
how, in future, of O2O service
could happen without the need
for the consumer to be present.
In Germany, Audi and DHL have
partnered up, allowing couriers to
deliver packages directly to the
boot of consumers’ cars.
The development and optimisation
of China’s logistics infrastructure
has propelled on-demand delivery
into new categories, not only
satisfying consumers’ increasing
demands for instant gratification
but also opening up innovative
solutions for product viability. In
central Beijing, Rider Messenger,
a logistics start-up, offers two-hour
guaranteed delivery service on
fixed-speed bikes, which many
Chinese have taken advantage of
for grocery delivery. National online
retail powerhouse, Taobao, has
announced plans for drone delivery
of small, lightweight parcels.
The competitive landscape of the
Chinese O2O market grants more
power to consumers for tailor-made
services. Therefore, we’ve seen
an increase in a wide array of on-
demand customisation services.
Chinese start-up Yijiang (One
Master) offers one such service
for crafting premium leather shoes
for men. With HaoChuShi (Good
Chef), consumers can choose their
preferred regional cuisine, specific
flavors and even the chef to cook a
meal for them at their home.
GOOD CHEF
GOOD CHEF APP
AUDI AND DHL DELIVER CONVENIENCE
O2ORedefined
O2ORedefined
9. 1312
The competitive
landscape of the
Chinese O2O market
grants more power
to consumers for
tailor-made services.
Therefore, we’ve seen
an increase in a wide
array of on-demand
customisation services.
12 1312
O2ORedefined
O2ORedefined
10. 1514
WHY CONSUMERS
WILL BUY INTO THIS
Time is a luxury for many busy
urban Chinese consumers, and
they are consistently frustrated with
long lines, wait times and travel
delays. Thus the need for an on-
demand culture was born. In 2015,
Chinese consumers developed
a habit for on-demand delivery
service. According to Mintel, just
over a fifth (21%) of Chinese
consumers choose food delivery at
home once a week, while nearly a
third do so once a month.
Chinese consumers show strong
interest and loyalty in using door-
to-door professional services, as
nearly (46%) book door-to-door
services online (e.g. laundry,
housekeeping, massage), with
four in five (78%) of those who
have used door-to-door service
indicating they will do so again.
Regional lifestyles play an
important role in the O2O
service development in China.
For instance, Mintel finds that
consumers from East China (72%)
are less likely to cook at home
every day compared to other
regions, due to their busy lifestyles.
Appealing to the third of Chinese
consumers who express a desire
to enjoy customised products
and services (e.g. customised
packaging, flavour), O2O
provides brands with the capability
to offer wide spectrum, low-cost,
custom services. Young male
consumers in particular are
drawn to customisation services,
with two in five 20 to 29-year-old
male consumers seeking
out customisation products
and services.
Thanks to the massive and
affordable labour force, well-
connected regional and national
logistics networks and encouraging
government policies, China will
experience continued growth in the
O2O market in 2016 and beyond.
46%
of Chinese consumers book
door-to-door services online,
including laundry, housekeeping
and massage.
RIDER MESSENGER
O2ORedefined
O2ORedefined
11. 1716
Consumers in
major cities have
tried, adopted and
developed loyalties
to O2O services to
varying degrees,
but it is a different
case when stepping
outside the city.
16 1716
O2ORedefined
O2ORedefined
12. 1918
FIVERR®
WHERE NEXT?
With all the adoption that O2O
has experienced since its inception
– elevated consumer interest and
cross-category innovation – it has
yet to reach the mass populations
living in the lower tier cities and
the countryside. In 2016 and
beyond, more O2O businesses
will be executing strategies to
provide products and services
to regions where they were
previously unavailable. Consumers
in major cities have tried, adopted
and developed loyalties to O2O
services to varying degrees, but it
is a different case when stepping
outside the city.
Chinese consumers from lower
tier cities have a strong interest
in O2O, but most do not have the
opportunity for trial. In fact, 45% of
consumers from tier two and three
cities have not used O2O services
due to the lack of availability. One
brand that’s extending service
outside city walls is Taobao,
China’s largest e-commerce
platform. In their “Hello
Countryside” marketing campaign,
which launched the summer of
2015, China’s countryside takes
centre stage in the O2O economy,
encouraging farmers from China’s
countryside to sell on Taobao.
As the O2O trend persists to
expand across China, Mintel’s
research shows how the O2O
economy is experiencing a
disruptive transition from B2C-
based on-demand economy to
C2C-based on-demand economy –
in other words a ‘gig economy’. Gig
economy blurs the lines between
personal and professional, in which
every qualified consumer could
become a service provider for
profit. Indeed, in the US we have
seen peer-to-peer job platforms
such as Elance and Fiverr – the
main drivers of gig economy in
America. Similarly in China, a small
niche of companies, including
Teenker, serves as a marketplace
for connecting consumers with
the appropriate professional on a
freelance basis, where everyone
can be an entrepreneur.
45%
of Chinese consumers from
tier two and three cities have
not used O2O services due to
lack of availability.
O2ORedefined
O2ORedefined
13. 2120
In the gig economy, O2O
businesses will be able to offer
more diverse services with
increased efficiency and minimal
middlemen costs. We have seen a
few brands emerge in the Chinese
market: one-to-one on-demand
business consulting services
(e.g. Zaihang), career consulting
services (e.g. Linglu), personal
trainer services (e.g. Jiaolian), and
even emotional companionship
services (Ou’er). The future of
O2O lies in how well brands can
utilise idle and qualified human
resources, and then match them
with the right consumer needs.
In 2016, challenges and threats
for the traditional brick-and-mortar
stores will continue to increase. In
addition to exploring O2O offering,
traditional retailers should look to
add value and meaning to physical
stores, turning the space into an
environment for new experiences
and social activities.
The future of O2O lies in how well
brands can utilise idle and qualified
human resources, and then match them
with the right consumer needs.
ONE-TO-ONE ON-DEMAND BUSINESS CONSULTING SERVICE ZAIHANG CAREER CONSULTING SERVICE LINGLU
O2ORedefined
O2ORedefined
15. 2524
Today’s consumer
wants to see and
experience the world
at all times. New
live-streamed video
technology is working
to keep consumers at
the cutting edge of life.
InteractiveNow
InteractiveNow
16. 2726
WHAT’S HAPPENING IN 2016?
Among online media formats, video
is a powerful storytelling instrument
that can vividly convey a message
and entertain an audience at the
same time. In fact, according to
Mintel, video has become the most
popularly consumed online media
in China, with as many as 83% of
internet users watching videos on
desktops and an additional 73%
viewing videos on tablets.
In April 2015, the Chinese
government called for faster,
less expensive mobile internet
access through the accelerated
development of China’s mobile
network infrastructure. Faster
and cheaper mobile internet
will provide instant access to
high-definition video content at
a lower cost, even when on the
go. By further developing the
infrastructure, live-streaming video
content and watching live-streamed
video on mobile devices will soon
become common activities for
Chinese consumers.
Traditionally, live-streamed
content has been the purview of
TV stations which have access to
satellite technology and studios.
Now, the new norm of live-
Video has become the most popularly
consumed online media in China, with 83%
of Chinese internet users watching videos on
desktops and 73% watching on tablets.
streaming is that everyone can be
a creator and a broadcaster, with
true ownership over their personal
media content.
In recent years, many Chinese
celebrities have been born out
of the internet, including through
popular internet videos, all thanks
to the increasing quantity and
quality of user-generated content
(UGC). Similar to the global site
YouNow, Qubo, V-Zhibo, YY,
and 9158 are a few examples
of online platforms that provide
channels for users to live
broadcast content for profit. Unlike
the traditional recorded online
videos where viewers could only
‘like’ or comment via one-way
communication, viewers can now
interact with broadcasters and
even ‘gift’ or tip them during a
live broadcast.
QUBO
InteractiveNow
InteractiveNow
17. 2928
Live-streamed video satisfies
consumers’ needs for online
interactions as Chinese netizens
are highly social and active in
voicing their opinions online. The
importance of this interaction is
highlighted by Mintel’s research
findings, which show that 74% of
Chinese consumers find interactive
activities held by brands encourage
them to purchase. An example
of this are ‘Bullet Screens’ in
cinemas, which meld movies with
text messages sent in from the
audience and demonstrate an
early sign of consumer interest
in online participation while a film
or TV show is being streamed.
Chinese e-commerce company
Bolome is tapping into this interest
in instant interaction by blending
it with live-streaming and online
shopping. Bolome hires shoppers
abroad to sweep through markets
and malls while broadcasting via
FaceTime, allowing viewers the
opportunity to interact instantly
with each other and the shoppers,
fielding any product questions
during the livestream. With as
many as 73% of Chinese online
shoppers citing sharing reviews
or recommendations with their
peers as a necessary step when
shopping, and 56% holding the
opinion that reviews posted in
online shops are reliable, live-
streaming could be the next step
in providing genuine consumer
reviews of products and brands for
online retailers.
74%
of Chinese
consumers find
interactive activities
held by brands
encourage them
to purchase.
In 2015, one of the most popular
genres of television shows in China
was celebrity reality television, as
viewers seem to enjoy its genuine
and dramatic nature. Chinese dairy
brand Yili saw the commercial
value in such an approach and
crafted a live-streamed marketing
campaign running a celebrity
game show in the Yili Museum
alongside their sophisticated milk
production line. On the one hand,
the live-streamed show satisfied
consumers’ desire for seeing the
celebrities in action; on the other
hand, it showcased the safety of
the milk and the high standard
of production in an honest and
transparent manner via the
unedited live-streaming format.
Live-streaming also taps into many
different aspects of consumers’
daily lives. There has been recent
interest in home robotics systems,
such as A.I. Nemo which live-
streams the happenings in-home
straight to the user’s mobile
device. Chinese dash camera
company Goluk also launched a
service that lets users watch other
users’ dash cam views and interact
with them via voice while they are
on road trips. In the US, we have
also seen Periscope users live-
broadcast charitable acts in an
effort to raise money.
GOLUK
GOLUK
InteractiveNow
InteractiveNow
19. 3332
PERISCOPE
WHY CONSUMERS
WILL BUY INTO THIS
Mobile devices have become
more popular than ever before
for accessing the internet,
and Chinese consumers are
increasingly watching videos on
the go. In February 2015, the
China Internet Network Information
Center (CNNIC) released a report
which pointed out that in 2014
85.8% of Chinese internet users
accessed the internet via mobile
devices compared to 81.0%
in 2013. Meanwhile, 71.9% of
online video viewers watched
videos on smartphone devices.
The development of 4G networks
has further enhanced mobile
connectivity with a maximum
download speed of 80Mbps,
which is 10 times faster than 3G
and hundreds of times faster
than 2G. According to CNNIC,
the number of Chinese 4G users
reached 97.3 million by the end
of 2014. With 4G allowing users
to browse content more quickly
without Wi-Fi, these developments
highlight an opportunity for
businesses to do more on social
and media networks, such as
micro-video advertising on Sina
Weibo or WeChat.
Chinese consumers are gradually
developing an appetite for
watching videos online, leading to
a willingness to pay for high-quality
and uninterrupted content. Mintel
finds that some 38% of Chinese
consumers have already paid for
online video streaming and 31%
would be interested in giving it a
try, which indicates that there is
a strong market potential for paid
online viewing in China.
The participatory spirit is very high
among Chinese netizens as they
have an open attitude towards
digital marketing and they are
likely to interact with brands online.
Mintel’s research finds that over
half of consumers have participated
in “shaking smartphones to get
vouchers” while watching live
programmes. Meanwhile, 36% of
Chinese consumers find interactive
online advertisement acceptable to
watch. As many as 60% of Chinese
consumers have made a purchase
by clicking on an ad on social and
media networks compared to just
9% of US consumers.
Chinese consumers are
gradually developing an
appetite for watching videos
online, leading to a willingness
to pay for high-quality and
uninterrupted content.
60%
of Chinese
consumers have
made a purchase
by clicking on an
ad on social and
media networks.
InteractiveNow
InteractiveNow
20. 3534
WHERE NEXT?
In 2015 consumers and brands
barely scratched the surface of the
live-streaming trend. In 2016 and
beyond we will see more dynamic
improvements made to online
live-streaming content and video
technology in China. With better
video and recording technology,
live-streaming will be more
interactive, more immersive and
more universal.
Future online video platforms will
grant more power and control to
viewers so that they can interact with
live-streamed video and alter and
create the viewing experience as
they wish. In 2015, YouTube added
a feature allowing users to upload
360-degree videos, and viewers
were able to see the 360-degree
perspective by dragging the
video in any direction while it
was being played. This new feature
lets viewers experience video
in a much more interactive and
dynamic way. As camera technology
and platform capacity improves,
live-streaming 360-degree video
is expected to become a viable
marketing tool for companies to
consider in their marketing mix.
To make live-streaming video an
even more interactive experience,
broadcasters could let viewers
choose between cameras during a
live-streamed event or show, which
could prove revolutionary for sporting
event broadcasting.
An immersive live-streaming
viewing experience means
making viewers feel as if they
are physically where an event is
happening. The development of
augmented reality (AR) and virtual
reality (VR), such as Google’s
Cardboard and Oculus Rift,
have already tapped into online
video-streaming and the gaming
industry to engage consumers’
visual senses. Future VR is set to
take live-streaming into uncharted
territory. With VR technology,
brands could bring consumers
into their live-streamed marketing
activities from the comfort of
their home. When auto brands
are running a test drive event,
for example, they could connect
Future VR is set to take live
streaming into uncharted
territory. With VR technology,
brands could bring consumers
into their live-streamed
marketing activities from the
comfort of their homes.
consumers with VR devices and
let them experience the car
remotely in real-time.
Live-streaming enabled technology,
including mobile apps, will be
fitted on more mobile devices,
allowing consumers access to
become creators, as well as
viewers. Live-stream video app
Periscope announced in August
2015 that it had 10 million users
watching more than 40 years’
worth of video each day. The latest
Samsung Galaxy S6 and Galaxy
Note5 are both equipped with
one-tap live-streaming features,
allowing users to broadcast live on
YouTube with the tap of a button.
As the lines between creators and
viewers become blurred, there
will be more internet personalities
and programmes generated in
a live-streaming format. Brands
could interact with consumers
via live-streaming in real-time
and provide instant feedback and
customer services. For example,
cosmetic brands could ask online
influencers to use their products in
an unedited live-streaming format
in order to prove the efficiency of
the products.
The possibilities brought by live-
streaming video content open up
a whole new world of sensational
experiences and entertainment to
consumers. It is also an effective
marketing channel brands
could use to stand out from the
competition. China is a nation
where new technology is often
quickly adopted and live-streaming
is set to make a big difference
in China’s online media sphere
in 2016.
Live-streaming
enabled technology
will be fitted on
more mobile
devices, allowing
consumers access
to become creators
as well as viewers.
OCULUS RIFT
KNOX NEXT VR VIEWER | THE NEXT IN GOOGLE CARDBOARD
InteractiveNow
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22. 3938
Chinese women’s
rising education
level and workforce
participation allow
them to live more
independently and
further contribute
to the consumer
economy, presenting
more opportunities
for brands to tap into
‘the women’s market’.
WomenOnly
WomenOnly
23. 4140
WHAT’S HAPPENING IN 2016?
Marketers are paying more
attention to female preferences and
needs in both product development
and in the way in which they
communicate to and with women. It
is not just happening in the beauty
and fashion sectors, which are
traditionally female-oriented, but
this newfound female perspective
covers a much broader market
scope to capitalise on the growing
influence of women in China.
There have been a whole host
of products and communications
designed to target women’s
preferences. In July 2014,
Mondelez introduced “Oreo Delight
Thin” to the market, featuring
cookies which are 40% thinner and
lower in calories than the classic
Oreo in an effort to target a more
adult, health-conscious audience.
In auto marketing, women are no
longer acting a supporting role
only. Citroën’s latest commercial
for its marque DS features
Sophie Marceau enjoying her
driving experience – appealing
to a mature, independent female
consumer. At the other end of
the age scale, in 2014, Hyundai
targeted a younger generation of
women – those aged 25-35 –
with the launch of the ix25 model,
which highlights the endorsement
from popular Korean actor Kim
Soo Hyun.
There have also been a number
of services emerging that cater to
women’s specific needs. In April
2015, the popular Chinese taxi app
Kuaidi Dache introduced a women-
only taxi service to provide women
with safe night-time, peer-to-peer
rides from 7 pm to 3 am. Users
only have access to this service if
they are registered as females.
Meanwhile, Alibaba’s consumer
group-buying platform Taobao
Juhuasuan launched a campaign in
the summer of 2015 asking healthy
young men to donate their sperm
in return for compensation, paying
between $500 and $700 US dollars
for each qualified donor between
the ages of 20 and 45 that passes
a series of strict health checks.
The campaign aims to meet the
growing demand for sperm donors
from Chinese working women
who want to have children without
getting married.
Within the realm of female-
focused branding there has
also been a rise in women-only
venues and communities.
Nike opened a women’s-only
concept store in Shanghai in
November 2014. It was the second
time the brand opened such a
store, the first being in the US in
Newport Beach, California. The
store features not only training
clothing and equipment, but also
an in-store fitness studio offering
workout courses to its female
club members.
Additionally, the mobile app
Linglong Salon went live in
June 2015, serving as a virtual
community designed for modern
career women in their twenties
and thirties to share content and
interact with each other. Unlike
other female-focused social
networks that promote buying and
consumption, members of Linglong
are encouraged to create and
share high-quality content about
culture, literature, movies, lifestyle,
as well as their critical opinions.
LINGLONG SALON
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25. 4544
48% of single
Chinese females
are eager to
travel to more
unknown places,
while only 33%
of single Chinese
males claim they
are interested in
doing so.
58%
of Chinese mums
say they are the
sole person who
manages household
finances.
WHY CONSUMERS
WILL BUY INTO THIS
Today, Chinese female consumers
are in a more favourable position
to receive a better education. This
makes them as competitive as
men in the job market, giving them
stronger purchasing power.
Riding on the back of Chinese
women’s growing financial
independence is an eagerness
to overturn outdated stereotypes
that view women as the inferior
gender. Mintel’s research finds that
women are more likely than men
to handle multiple tasks within the
family. Apart from the traditional
female tasks centred around food
shopping, housework and taking
care of children, today’s women
are becoming stronger controllers
of family finances. As many as
58% of Chinese mums say they
are the sole person who manages
household finances, making them
the main target that brands want to
talk to.
In terms of personal aspirations,
it is not just in their career
development where women are
keen to compete against men;
they are also eager to demonstrate
their physical power. While nearly
half (47%) of female consumers
agreed that doing regular exercise
is the most important factor for
a healthy lifestyle in 2014, this
rose significantly to 61% in 2015.
The increasing number of female
participants in gyms, yoga clubs
and outdoor sports activities such
as running and hiking are driving
demand for fashionable apparel
and leisure services that cater to
their specific needs.
When it comes to spending habits,
women are considered to be more
open to embracing new lifestyles
and are more aspirational in
terms of trying new products and
experiences, while males are more
likely to stick to what they know. This
makes it relatively easy for brands to
target women when introducing new
concepts or products to the market.
Today, some 66% of single males
hold the traditional opinion that “life
is not complete without getting
married” while only 52% of single
females believe this to be true. At
the same time, 48% of single
females are eager to travel to more
unknown places, while only 33%
of single males claim they are
interested in doing so.
Furthermore, women are more
likely to be impulsive purchasers
and tend to be less ‘self-disciplined’
than men. They are less likely
to stick to a fixed financial plan
(e.g. saving a certain percentage
of their salary each month).
Chinese women are more likely
to be enticed by special offers or
influenced by special events and
atmospheres such as shopping
festivals – according to Mintel, 42%
of women say they cannot help
buying when there is a shopping
atmosphere such as 11 November
(China’s equivalent of Black Friday
shopping day) compared to 34%
among men.
WomenOnly
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26. 4746
The increasing number
of female participants
in gyms, yoga clubs and
outdoor sports activities
driving demand for
fashionable apparel and
leisure services that cater
to their specific needs.
46 4746
WomenOnly
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27. 4948
In the UK, Sainsbury’s launched
fully traceable coffee on
International Women’s Day
to support the female coffee
growers on the western border
of Rwanda, many of whom have
been affected by genocide.
Chinese female
consumers will
affiliate themselves
with companies that
share their ethical
values and take
steps to increase
gender equality –
either domestically
or globally.
WHERE NEXT?
Customised products and services
that are only available to female
consumers will continue to be
welcomed in China. Brands need
to identify areas where women
genuinely need a gendered
alternative and highlight the relevant
solutions, instead of simply (and
unnecessarily) ‘painting it pink’.
Apart from product innovations,
brands may also innovate the
way they communicate with
their target female consumers,
leveraging the advancement of
modern technology. For example,
in Germany the beer brand
Astra created a billboard which
has a built-in camera coupled
with gender-detection software.
The billboard was only activated
when a woman passed by, which
encouraged them to give the beer
brand a try. New technology such
as this could appeal to the naturally
curious Chinese women.
At the same time, the market is
waiting to see a rise of brands that
are not only created for women but
also owned by women. Walmart
uses the ‘women-owned’ label on
the packaging of products that are
created by female business owners
in the US and has been since
September 2014. This concept
could be introduced to the China
market targeting the rising number of
independent women who are looking
to further narrow the gender gap by
supporting female entrepreneurs.
Taking a step forward, female
consumers are likely to affiliate
themselves with companies that
share their ethical values and take
steps to increase gender equality
– either domestically or globally. A
great example is Sainsbury’s in the
UK, which launched fully traceable
coffee on International Women’s
Day in 2014 to support the female
coffee growers on the western
border of Rwanda, many of whom
have been affected by genocide.
In 2016 we will continue to see
lucrative opportunities for brands
to target female consumers with
ever-increasing spending power
to pursue their interests. This
refers not merely to catering to
women’s specific product or service
needs, but also calls for brands
to show their understanding,
appreciation and support for the
rising ‘she-conomy’.
UNDERSTAND
WHAT INFLUENCES
YOUR CONSUMERS
Our trend analysts look for the crucial connections between trends and the patterns and
developments in behaviour and values. They then put this into context, so you understand what it
means to your category in different demographics and amidst global themes.
FIND OUT MORE
4848
WomenOnly
WomenOnly
29. 5352
As brands and
institutions strive to
keep health threats
such as air pollution
and food safety issues
under control, Chinese
consumers have
begun to take a more
proactive approach
towards health.
ConsciousHealth
ConsciousHealth
30. 5554 WHAT’S
HAPPENING
IN 2016?
A more conscious approach
towards living a healthy lifestyle
is taking shape among Chinese
consumers in major cities as
they become more discerning
in their food choices. Hunter
Gatherer, a Shanghai-based
restaurant and grocery store that
owns two farms in Shandong
and Shanghai, claims to use only
natural and chemical-free food
and ingredients sourced locally
from their own farms or from
strictly selected produce suppliers.
In the restaurant section of Hunter
Gatherer, a blackboard displays
the percentage of food on the
menu that comes from their own
farms. Smart QR code labels
can also be found on produce
sold in the grocery section,
which indicates origin, as well as
detailed information about the
particular produce.
HUNTER GATHERER
5454
ConsciousHealth
ConsciousHealth
31. 5756
From square dancing aunties
to gym club members, regular
exercise is indeed becoming a
trendy and essential part of the
Chinese consumer lifestyle.
Not from concentrate (NFC) juices
and juice detoxes are gaining in
popularity among health-conscious
Chinese consumers. In early 2015,
healthy restaurant brand Element
Fresh launched ready-to-drink
(RTD) NFC juices, distributing
the products across convenience
stores in China. Juice detox brands
such as Hey Juice, Drink Clean
and Juice Up have experienced
successful adoption rates among
Chinese women in particular.
For busy urbanites, eating fresh
and living healthy is made possible
thanks to the development of O2O
(online to offline) businesses in
China. Guaranteeing 2-hour or
same day delivery, Sweetie Salad
takes fresh fruits and vegetables
from local farms straight to
consumers’ tables, and door-to-
door exercise training services
such as Jiaolian eliminate the
hassle of travelling to the gym by
sending a fitness coach direct to
the customer.
From square dancing
aunties to gym club members,
regular exercise is indeed
becoming a trendy and essential
part of the Chinese consumer
lifestyle. Indeed, almost two in
five (37%) Chinese consumers
have a gym membership, a number
that is expected to increase in the
coming years.
SWEETIE SALAD
ConsciousHealth
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32. 5958
Technology plays an important role
in shaping the conscious health
trend in China, and innovations
such as mobile fitness apps,
wearables and smart devices have
elevated exercise and healthy living
to a whole new level. An increasing
number of Chinese consumers
have adopted these technologies
to track, manage and analyse their
activities, and receive feedback to
help improve their health. Besides
popular wearable products such
as Mi Band or Misfit, we’ve seen
an array of everyday objects
turned into health-tracking devices,
including a smart water cup by
Gyenno for forming better water
drinking habits, a smart bike by
700BIKE for encouraging cycling,
and Mi Scale by Xiaomi for tracking
comprehensive health data.
The social element enabled by
health management technology has
also driven Chinese consumers to
exercise more. Whether workout
enthusiasts or weekend warriors,
many of them share their most
recent workout data with their family,
friends and peers on social media
to remind and motivate themselves
to exercise. WALKUP is a Chinese
mobile health app that utilises
gamification and social tools to
encourage consumers to walk more.
For many Chinese consumers,
having good health is no longer
only about avoiding illness; it
is also about proactively
managing their body and
establishing a balance of
physical and emotional well-being.
In 2016 and beyond, Chinese
consumers’ food sophistication
and exercising enthusiasm will
drive new demand for healthy
food and health technology to
meet their more proactive
approach to healthy living.
Chinese consumers’ food
sophistication and exercising
enthusiasm is driving new
demand for healthy food and
health technology to meet their
more proactive approach to
healthy living.
WALKUP APP
ConsciousHealth
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33. 6160
FS JUICE – COLD PRESSED JUICES WHERE NUTRIENTS ARE ABSORBED INTO THE BLOODSTREAM IN THEIR PUREST FORM
60 6160
ConsciousHealth
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34. 6362
WHY CONSUMERS
WILL BUY INTO THIS
External factors such as air
pollution pose serious threats
to the health of Chinese consumers
and require people to maintain a
strong immune system. According
to a study from Berkeley Earth
on air quality published in August
2015, 1.6 million people are dying
every year due to the air pollution
in China. More and more people
are realising the importance of
keeping healthy and doing exercise
is deemed as the most important
factor for achieving a healthy
lifestyle. According to Mintel, the
number of Chinese consumers who
claim to have sub-health conditions
reached 86% in 2015, increasing
from 75% in 2012. Mintel research
also reveals that doing regular
exercise (64%) has become the
most important factor for achieving
a healthy lifestyle, up from 51%
in 2014.
Chinese consumers have shown
a strong interest in using smart
technology to manage their health
and wellness. According to Mintel,
some 30% of consumers use
mobile or tablet apps to track their
activity levels, while approximately
one in 10 consumers have used
wearable devices to track sleep
quality, heart rate and blood
pressure. Furthermore, 74% of
consumers show an interest in
using wearable devices to manage
their health in the future. Mintel
data also reveals that Chinese
consumers’ increasing concern
for, and growing knowledge of,
food safety is leading to new
perceptions of what makes food
healthy, such as the need to know
the origin of ingredients. Some
57% of Chinese consumers believe
healthy food should be “made from
natural ingredients rather than
additives”, pointing to the belief
held by many that it’s a good idea
to “go back to nature”.
57%
of Chinese consumers
believe healthy food
should be “made from
natural ingredients
rather than additives”.
REACH NEW MARKETS
AND DEMOGRAPHICS
Mintel Trends is integrated across all of Mintel’s data platforms, so you can easily
understand how consumer trends impact your market, category or region.
FIND OUT MORE
ConsciousHealth
ConsciousHealth
35. 6564
WHERE NEXT?
Over the past decade, obesity
has become a growing concern
among Chinese consumers.
Children, in particular, are currently
a highly susceptible demographic
to becoming overweight. A
recently published report by
the Beijing Center for Disease
Prevention and Control (BCDPC)
shows that childhood obesity in
Beijing has doubled in the last
century. According to the same
study, almost a third of primary
and secondary school students
surveyed in Beijing are not eating
enough cereals, potatoes and
vegetables, and a full 67% of obese
students have high blood sugar.
This major concern for China’s
youngest generation must be
addressed by brands in 2016
and beyond. In fact, many foreign
markets are ahead of China when
it comes to tackling childhood
obesity via product and service
innovation. For example, in
Poland, where obesity is a national
concern, Moving Tracks is a
music streaming service for
kids that only works when the
listener is exercising and on the
move. In Belgium, Miiya is a
colourful wrist watch that rewards
children with stars when they are
physically active.
As Chinese consumers take
a more proactive approach to
physical well-being, urbanites
in particular have realised that
stress is the root cause of many
SMART SCALE
ADULT COLOURING BOOK
65
health problems. Consumers are
commonly exposed to stress from
work and in their private lives,
and find it difficult to deal with
this pressure. Two thirds (67%)
of urban Chinese consumers are
willing to pay for regular health
treatments to promote relaxation,
as well as women (64%) and those
who are married with kids (63%).
We expect to see brands develop
experiential approaches as well
as product innovations to reduce
stress levels over the coming
year. We’ve already seen the
adult colouring book Secret
Garden which is believed to have
a de-stressing effect. Food and
drink brands could look to product
innovation and marketing strategies
which focus on emotional well-
being management. For instance,
Brazilian food and beverage
company Ducoco’s commercial
for Isotonic sports drink highlights
coconut’s relaxing features. What’s
more, Chilean chocolate brand
La Fina Endorfina offers chocolate
as a way to promote emotional
well-being.
With the surge in health-tracking
technology and the availability
of nutritious food and drink
ingredients, great potential exists
for brands to develop campaigns
and products that help consumers
achieve a balance of physical and
emotional well-being.
As Chinese
consumers take
a more proactive
approach to physical
well-being, urbanites
in particular have
realised that stress
is the root cause
of many health
problems.
67%
of urban Chinese consumers are
willing to pay for regular health
treatments to promote relaxation.
ConsciousHealth
ConsciousHealth
36. THE
WORLD’S
LEADING
MARKET
INTELLIGENCE
AGENCYOur expert analysis of the highest quality data and
market research will help you grow your business.
Mintel is the world’s leading market intelligence
agency, with offices in London, Chicago, Shanghai,
Belfast, Kuala Lumpur, Mumbai, Munich, New York,
São Paulo, Singapore, Sydney, Tokyo and Toronto.
Market intelligence is what sets us apart and what
defines us as a brand – literally in fact: when the
company was founded in 1972 it took its name from an
amalgamation of the two words.
We have been defining and refining the Market
Intelligence Mix ever since, to offer our clients a unique
perspective on the consumer landscape ahead and a
clear roadmap to navigate it with.
So what goes in to the Market Intelligence Mix?
Of course there’s data, and there’s market research,
but there’s also market analysis, competitive
intelligence, product intelligence and, most importantly,
the expertise to combine these elements in an expert
synthesis that generates insight and recommendation
rooted in cast-iron fact.
