COVID-19 // China POV Vol.10

1
Havas Group China
October 27th, 2020
EDITION
2020 #10

2
In this edition
Key market developments
• Economic outlook
• Consumer behavior developments
• Key category outlooks
• Havas POV
China advertising market
• Advertising market development
• Media consumption update
• EC developments
• Media market news
• Campaigns worth mentioning
• Havas POV

3
Economic outlook

IMF raised the global GDP estimation, while China will be the
only economy with growth in 2020
4Source: IMF Oct 2020

Retail market recover further, 3.3%
growth in Sept.
China Q3 economy improves, incl. consumer spending, but remains
behind overall economy development as consumers stays prudent
5
Q3 GDP reached 4.9%, keep
bouncing back from COVID-19
China GDP Growth Rate
6.8% 6.7% 6.5% 6.4% 6.4% 6.2% 6.0% 6.0%
-6.8%
3.2%
4.9%
122.4 124.1
124.3124.6
126.6
126.4
118.9
122.2
116.4
115.8
112.6
117.2116.4
9.6% 8.9% 9.0%
8.3%
8.4% 8.5%
7.6%
7.8%
-20.5%
-15.8%
-7.5%
-2.8% -1.8%
-1.1%
0.5%
3.3%
China Retail market YOY Growth Rate China consumer confidence level
Source: National bureau of statistics
Chinese consumers confidence
level also picked up

With the “dual circulation” strategy starting to accelerate
demand: releasing and upgrading
6
Government
Scientific
research
reformation
Digital
infrastructure
Develop low
tier cities
Real estate
price control
Upgrading demand
Releasing demand
Finance
reformation
Develop
Chinese
brands
Create
employment
Redevelopexternalcirculation
In May, China’s central leadership
proclaimed that it would “fully
develop the advantages of the
country’s super-large market and
the potential for domestic
demand to establish a new
development pattern featuring
domestic and international dual
circulations that complement
each other.” “Dual circulation”
has been the subject of intense
discussion within and outside
China ever since
Source: Projectsyndicate; Bilibili

China sees advantages in being first on a new digital currency
‘battlefield’
7Source: China finance PBOC
“China has many advantages and opportunities
in issuing fiat digital currencies, so it should
accelerate the pace to seize the first track”
The digital payments market in China helped revolutionize the global e-payments
industry, with China playing a significant role in the initial adoption and
implementation of e-payments as a whole. The presence of Chinese-based virtual
payment systems throughout the world points to the success that Chinese
organizations have had in the areas of customer education, acquisition, and usage.
China’s lead in the digital payments industry is now ready for another milestone –
the first state-backed digital currency: the digital yuan or Digital Currency
Electronic Payment (DC/EP).
• 2014 The central bank first began research for developing a digital currency
• 2017 The Digital Currency Research Institute established
• 2018 Patent filings by the DCRI
• 2019 People’s Bank of China (PBOC) purportedly led test runs of the digital yuan
• 2020 April
People’s Bank of China submitted patent applications regarding digital
currency products
• 2020 August People’s Bank of China (PBOC) purportedly led test runs of the digital yuan
• 2020 September China’s central bank formed a partnership with the fintech arm of JD.com
• 2022
The central bank plan to test the digital currency during the 2022 Winter
Olympics Games

8
Consumer behavior
developments
Can we find a picture
without mask?

Riding on the healthy trend, products with more "healthy"
attributes have become popular National Day gifts
Source: PWC/Kantar worldpanel
Health and fitness 90%
Food 89%
Mental health 87%
Medical needs 85%
Chinese consumers pay more attention to take
care of themselves in the following aspects:
Strongly agree/agree
“Although holiday comes, we still
need to eat healthily”
Consumers' favorite gifts for National Day & Mid
Autumn Festival
1. Milk/yogurt
2. Fruit gift box
3. Mooncake
4. Health supplement
5. Snack gift box
79%

Looking for more convenience: Digitalized and nearby
consumption is trending, errand service see good momentum
10Source: Kantar consumer index, 20H1 vs. 19H1; Aurora Mobile, 2019.12-2020.8
Door-to-door service and e-
platform are speeding up
Nearby requests are increasing
New
retail
+161%
Online
+35%
Convenie
nce
Store
+12%
0.80%
0.72%
0.69% 0.72%
0.77%
0.81%
0.84%
0.81% 0.85%
Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20
Penetration rate of the errand industry
4.4
3.5
4.5
2019 Dec 2020 Feb 2020 Aug
Monthly active users
(million)
-20.5%
4.2%
41.22
16.38
47.91
2019 Dec 2020 Feb 2020 Aug
Monthly average usage time
(min)
-60.3%
19.6%
After the short-term impact of the epidemic,
the errand industry is growing rapidly

Internet celebrity economy penetrates the elderly:
From silver economy to “granfluencer”
11Source: QuestMobile/CSM
2.9 3.3 3.7
4.3
4.9
5.7
2016 2017 2018 2019 2020 2021E
Market size of the seniors in China
(Trillion RMB)
57.7%
32.5%
9.8%
57.0%
31.9%
11.1%
Below 200 RMB 200-1000 RMB 1000 RMB+
Online consumption capability of seniors
The number of seniors is increasing, and
their online consumption ability has also
improved, showing great consumption
potential
Senior users of short video apps
continue to grow
• “Grandma Wang, who only wears high-heeled shoes”
(只穿高跟鞋的汪奶奶) has gained more than 14
million followers on Douyin after 6 months from its
first short video of dress-up released on November
2019.
• Filming of the funny daily video “I’m Grandma Tian”
(我是田姥姥) reached 16.08 million. On the first
day of becoming a sales influencer, “Grandma Wang
who only wore high heels” sold 4.7 million in sales.
After three live-streaming sessions, the sales
exceeded 10 million.
Granfluencer on the rise

Private traffic becomes a strategic growth lever for brands
12Source: Fabernovel
China’s increasingly competitive and expensive online market
Private traffic could acquire and retain Chinese
consumers online
What brands
are doing?

Evolving China cool: From national brands to national spirits
13
Commodity manufacturing
overcapacity, popular culture needs
fresh blood, prompting consumers to
focus on the national trend, explore
different trend labels like Weilong,
Laoganma, Huili shoes and other
time-honored brands are popular
online
China cool is moving towards a
consumer market with more categories.
Designer brands, new brands and new
products emerge endlessly. China cool is
constantly merging with the new
generation's idea. The individual
expression of different groups created
the new diversified China cool culture
As Chinese brands enter the international
arena and conquer international
aesthetics, consumers' attention begins to
shift, and Chinese style goods become en
vogue. In 2018, the number of users
searching for "Chinese style" goods
increased by 14.7%, and the sales volume
of China fashion clothing brands during
double 11 exceeded internal brands
Explore other possibilities of trends
Popular both at home and abroad
The era of all-round China cool
Tmall China cool launched the first circle interpretation of China cool
culture documentary “China cool era". In the eight documentaries, KOL
of all circles in China were gathered to tell cultural concepts and trend
stories. The circle culture stories were used to show the cultural
diversity of China cool, and lead consumers to appreciate the diversified
performance of Chinese brands, which opened a new opportunity for
value communication of China cool culture
“I think the national thing is
the most international thing”
“China cool is a part of life”
“China cool carries too much
history and too many stories”
“It's my spiritual treasure
in everyday life”
“In recent years, the China
cool has incorporated many
more localized elements”
“The beauty of Chinese style
is all inclusive. It should be
colorful and jumping”

China luxury market is leading the recovery and expected to
grow 20-30%
14Source: BCG analysis/visual capitalist
Bored after months of strict social distancing measures and unable to vacation overseas, wealthy Chinese consumers are
seeking comfort in retail therapy. They are back to binging on luxury handbags, cosmetics and cars

15
Key categories outlook

Fashion brands are investing in key digital capabilities
This Oct, Shanghai Fashion Week, which pioneered digital pivots
like live streaming, returns as a largely physical event, featuring
around 90 brands across a number of venues, including its main
stage in fashionable shopping district Xintiandi and emerging
designer platform Labelhood.
Pre-pandemic life has almost fully resumed in China. The
blueprint for future fashion weeks is not a return to the former
physical format, but a hybrid model, now underway in Shanghai,
with live events supplemented with live streams and digital
showrooms, catering to both a local audience and a global crowd
who can’t be there in person.
While live streams will be used to amplify bigger brands’ shows,
emerging designers may focus fully on streaming to cut costs, Ma
says. Labelhood takes care of the live-streaming costs and
logistics for the brands it features, and Shanghai Fashion Week
does the same for the brands on the Xintiandi stage, which this
year will also be streamed on Red and Bilibili in addition to Youku
and Iqiyi.
17Source: https://www.voguebusiness.com/technology/shanghai-fashion-week-spring-summer-21

Dior released their first Singles’ Day limited series on WeChat store
18
On October 13, Dior, announced on their official WeChat account that the
brand’s first-ever Singles’ Day limited series will be available on their official
WeChat boutique and website on October 15.
Dior’s limited series launch is not only the brand’s first Singles’ Day initiative,
but also the first special launch led by a leading luxury brand for this popular
shopping occasion. Unlike Chinese Spring Festival or Qixi, which embody
emotional factors or traditional customs, Singles’ Day — also known
as Double 11 Festival — was originally merely an e-commerce sales
promotion event on Tmall when it debuted on November 11, 2009.
Dior’s Singles’ Day launch is a further bet on the importance of China’s digital
channels. Given that this year’s Double 11 battleground will be
more crowded than ever, Dior has taken the unique approach to offer their
limited series collection only on their official WeChat boutique and website
instead of the oversaturated luxury playground on Tmall.
Source: Brand Website

Lifestyle brand Nike leverages high level of O2O personalization
in it’s new 22,000-square-foot Guangzhou store
A deep integration of online and offline:
• Including an inaugural “Nike Experience” that
gives members who use its app access to
workshops and workouts offered within the store
and around the city.
• Nike Fit, a technology that scans consumers’ feet
and maps data points in their member profiles,
helping them ensure a perfect fit when making
future purchases via the Nike website

Domestic holiday travel is back to 80% of pre-pandemic level
21Source: Global times
• China recorded 637 million domestic tourists, generating total revenue of 467 billion yuan during the
National Day holiday, recovering to 69.9% of last year’s level in revenue
• However, schools in Beijing and other places were discouraging their students from traveling during the
period, which may have undercut demand.
0
100
200
300
400
500
600
700
800
900
2017 2018 2019 2020
Travel Times in National Holidays（Million Times）
0
100
200
300
400
500
600
700
2017 2018 2019 2020
Domestic Tourism Income in National Holidays（Billion Times）
-20% -28%

China’s Golden Week holiday gives local tourism a much-needed
boost
22
Longmen Grottoes in the Henan provinceThe Forbidden City in Beijing An amusement park in Wuhan
• According to a Ctrip report, the number of bookings for flights, private tours and attraction tickets on its platform was up 100%
compared to the same time last year.
• Hainan province, a southern island, raised duty-free shopping limits on July 1, hoping to attract domestic tourists and compete
with shopping hubs in Europe and other parts of Asia. Chinese tourists spent over 1 billion RMB at duty free shops in Hainan
during the 8-day holiday, saw a 150% growth YoY.
The numbers are a positive sign that economies can revive quickly once the coronavirus is under control. Both domestic consumption
and Chinese consumer confidence have recovered well, especially as consumers engaged in “revenge buying” to make up for the
previous months when they were unable to travel.
Source: CNBC

Family group tours increased by 100% YoY, and over 60% of
travelers are post-90s & -00s
23
According to Ctrip report on Nation Day
holiday，the GMV of hotel presale orders
have seen an over 100% MoM growth.
Scenic spots tickets presales has increased
100% YoY.
Besides, more people are taking vacation as a
family gathering opportunity. Family group
tour has increased 100% YoY. And car rental
increased by 50% YoY.
Source: Ctrip report on National Day Holiday
Hotel presale GMV
20-Sep 20-Oct
100%
Family group
tour volume
19-Oct 20-Oct
100%
Scenic spots
booking orders
19-Oct 20-Oct
100%
Car rental
volume
19-Oct 20-Oct
50%

Tourism agencies leverage the top EC platform Alibaba to revive
24
Switzerland Tourism x Taobao Live Macau Tourism x Alitrip
Switzerland Tourism hosted live-streamed
show on Taobao live to do promotion for
their scenic spots and Swiss brands before
the Golden Week Holiday. It’s the best
timing to influence Chinese audience to long
for Switzerland.
Macao has become the first destination
outside China mainland to resume visa
application nationwide since Sep 23rd. It
hosted livestreaming timely to encourage
people to visit Macao and cooperate with
Alitrip to offer “buy-one-get-one-free” deals
for flights & tickets. The flight booking to
Macau increased by 1500%.

International routes between China and Europe have resumed
25
CN to Europe Searches WoW
CN to Europe search is on the rebound and shows
a sharp increasing since W21. Week 33 and 34
saw a rapid growth with +28% and +11%,
dropped -19% on W35 because more
international carriers resumed flights and more
countries reopened for tourism.
An airline's approach to passenger and crew
wellbeing was the most important element to
help reduce travelers’ anxiety, followed by health
screening processes and enhanced cabin cleaning.
The growing need is to provide travelers with
region-specific health data. Giving travelers faster
access to reliable, aggregated health/security
data before and during their trips.
Top 10 CN to EU Destinations Searches
(2020 Jan-Aug)
UK RU DE IT FR
ES NL CH UA IE
Source: Skyscanner report

Alibaba’s Freshippo opens first membership-only store in
Shanghai, challenging Costco and Sam’s Club
Freshippo, the grocery retail chain of Chinese e-commerce
giant Alibaba, will open its first membership store in
Shanghai in late September, challenging the American
membership-only warehouse chain store Costco and
Walmart’s wholesale division Sam’s Club in the city.
Freshippo, known as “Hema” in Chinese, also launched its
own private brand Hema MAX, which sells a variety of
products including rice, cooking oil, yogurt and nuts. Over
40 per cent of the products in the membership-only X
store are Freshippo’s exclusive products, including those
from Hema MAX, with 10 per cent from overseas factories.
27Source: https://www.scmp.com/tech/e-commerce/article/3103476/alibabas-freshippo-opens-first-membership-only-store-shanghai

Frozen food importers are required to shun countries with
severe coronavirus
End of September China’s capital called on importers to shun frozen
food from countries suffering from severe Covid-19 outbreaks after
several cases of imported seafood products testing positive for the
virus. “Customs and local governments have repeatedly detected the
coronavirus in imported cold chain food, proving it risks
contamination,” the Beijing Municipal Commerce Bureau said in a
statement issued to import companies.
The bureau urged them to closely monitor the overseas pandemic
situation and “proactively avoid importing cold chain food from areas
heavily hit by the coronavirus” and make alternative plans for imports.
From June 20th to Sep 15th, several meat processors in 16 countries
(Brazil, Argentina, Germany, Canada, the Netherlands, Spain,
Australia, Uruguay, Denmark, Panama, New Zealand, France, Russia)
have suspended export meat to China. On the other hand, China in
September suspended imports from seafood producers in Brazil,
Indonesia and Russia for a week or more.
28Source: Bejing Evening News

Car sales continue to recover with August sales grow YoY and MoM
30
• The auto market increased by 3.5% regarding MoM sales in August, and the YoY sales also increased by 11.6%. The
sales have maintained a growth rate of more than 10% for four consecutive months.
• PV YoY sales also kept growing trend, which increased by 6% regarding YoY sales in August. The sales of four types of
PV: SUV, minibus, car and MPV all maintained growth.
• The NEV sales in August also kept growing, growth rate (+25.8% vs. last year), while the sales in Jan-Aug Y20
declined 26.4% compared with Jan-Aug Y19.
Source: China Association of Automobile Manufacturers (CAAM),China Passenger Car Association (CPCA)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2,809 1,718 2,656 2,319 2,288 2,274 1,889 2,103 2,394 2,380 2,548 2,661
2019 2,367 1,482 2,520 1,980 1,848 2,056 1,808 1,958 2,271 2,284 2,457 2,658
2020 1,927 310 1,430 2,070 2,194 2,300 2,112 2,186
0
500
1,000
1,500
2,000
2,500
3,000
Monthly car sales in ChinaUnit: Thousand

Continuing BMW’s emphasis on experience and participation,
My BMW App is officially launched
31
• BMW, who is accelerating in digitalization, has made a new
move. Recently, it launched a new application-My BMW App. It
can be downloaded and used by both car owners who owns a
BMW car and true fans withhold BMW dreams.
• My BMW App has a total of more than 60 Chinese exclusive
small functions, which are customized based on the needs of
Chinese users.
• The app shows the wisdom and insight of the BMW digital
team, and strengthens the connection and interaction between
car owners, fans and the brand.
• Multiple functions including: Interactive community to make
new friends; Convenient charging to avoid worries about
driving; master the status of the car; seek after-sales service
anytime online.
Source: DayDayNews
Interactive community After-sales service

Audi, FAW sign deal on new EV joint venture
32
• BEIJING - Audi signed a memorandum of understanding
with China's state-owned FAW Group to launch a new
joint venture to make electric vehicles, the automaker
said Tuesday in a statement.
• Audi has a long partnership with FAW Group in China. The
automaker also plans to make vehicles with Shanghai-
based automaker SAIC Motor.
• Audi plans to roll out more than nine electrified models in
China by 2021 as part of Volkswagen Group's plan to
accelerate the introduction of electrified vehicles in the
country.
• The automaker has said its first EV, the E-tron crossover,
which is currently imported, would be built at the
Changchun plant of FAW-Volkswagen.
Source: Automotive News China
The E-tron is Audi’s first series production full-electric car.

33
• Honda has quietly announced that it will unveil a new
electric vehicle at the upcoming 2020 Beijing
International Automotive Exhibition (Auto China 2020).
The Japanese car maker has only one production electric
vehicle – the Honda e, will launch on October 30, 2020.
• Honda has not released any other details of the new
electric car concept, only to say that it is for now a
concept that will guide “direction of the future mass-
production model “.
• In a release via Honda’s Japanese website in August, the
car maker said it is only planning to make 1,000 Honda e
electric cars for the Japanese market per year.
Honda teases new electric vehicle ahead of China auto show
Source: Thedriven
SOURCE: HONDA

34
Havas POV

35
Key word for 2021 budgeting “profitable growth”. All time high
competition by activations and EC festivals comes at too high cost
• Chinese consumers are further increasing spending but are
staying highly prudent and more value for money focused.
Nevertheless more brands shift their focus fully on China.
During the stabilization and recovery phase we have noticed
that brands continue to focus on activations, local festivals, EC
festivals and other sales recoup activities. Last Chinese
Valentine’s days and Super Brand days are examples that
illustrate this trend with an all-time high level of activities and
media spend. The warming up for Double 11 already shows
the same development.
• During this period of 2020 budget landings and revised
budgets for 2021, many recognize that this trend comes at
high cost: fees, commissions, higher media spend and higher
internal cost.

Key word for 2021 budgeting “profitable growth”. All time high
competition by activations and EC festivals comes at too high cost
36
• CFO’s warn that for 2021 you can no longer
predominantly rely on sales activations. We all
know the cost of activations and EC festivals are
further inflating, due to continuously rising
digital media cost, in all sorts, KOL’s included.
• A brand pull effect that creates longer lifetime
consumer value (LTV) and lower cost of
consumer acquisition (CAG) needs to get higher
priority to repair profitability.
• Very practical: better balance in branding versus
activation, more brand consistency in activations
and a full EC ecosystem beyond 3rd party
platforms is the solution for higher profitability.

37
Advertising market
development

Month by month comparison
51,216
47,422
43,293
10,000
20,000
30,000
40,000
50,000
60,000
2018 Aug 2019 Aug 2020 Aug
-9%
YTD vs YTD comparison
409,753
374,270
291,306
100,000
200,000
300,000
400,000
500,000
YTD 2018 YTD 2019 YTD 2020
-22%
Source: ADP (TV, Radio, Newspaper, Magazine, Cinema), CODC (OOH), Iresearch (Digital – PC & Mobile) 2018-2020
Note: excluding media spending on social and search; discounts are estimated based on Havas methodology
2
0
10,000
20,000
30,000
40,000
50,000
60,000
1 2 3 4 5 6 7 8
2020 2019 2018
Monthly spending
Monthly spending continues to rise MoM inline with the overall
market recovery, while the overall ad spend remains below 2019
In Aug 2020, the total actual* Ad market in China achieved RMB 43 billion; compared with last Aug, the total category
spending decreased by 9%, but looking at the month on month trend we see a consistent upward trend.

Digital media remains the main battlefield, more and more the
primary media choice for most advertisers
2019 YTD Ad Spend Market Media Mix
Digital, 41.2%
TV, 29.3%
Outdoor,
23.3%
Cinema, 2.9%
Radio, 2.1% Newspaper,
0.7%
Magazine,
0.4%
39
• YTD Aug 2020,70% of overall media investment through Digital and TV, which is similar to the same period last year.
• OOH share has risen compared to last year, all other media continue with very low share of investment
2020 YTD Ad Spend Market Media Mix
Digital, 40.9%
TV, 28.2%
Outdoor,
27.9%
Cinema, 0.5%
Radio, 1.6% Newspaper,
0.5%
Magazine,
0.3%

-7.4%
-5.8%
-8.5%
38.5%
-8.3%
-11.6%
-5.8%
-25.6%
-40.4%
-33.4%
-6.5%
-34.0%
6.5%
-8.6%
-40.2%
- 20,000 40,000 60,000 80,000
FOOD & BEVERAGES
PHARMACEUTICALS
BUSINESS & SERVICES
IT PRODUCT & SERVICE
HOME ELECTRICAL APPLIANCES
ALCOHOL
PERSONAL ITEMS
COSMETICS & TOILETRIES
LEISURE
HOUSEHOLD
POST & COMMUNICATION
TRANSPORTATION,LOGISTIC & AUTO
FINANCE INDUSTRY
REAL ESTATE & CONSTRUCTION
CLOTHING
40
2020 YTD Media spending & YOY growth rate by category versus 2019 YTD
More and more categories accelerate their media investment
3.5%
11.0%
2.0%
15.7%
-5.8%
-5.2%
-10.9%
-28.3%
-21.8%
4.3%
54.2%
5.1%
-4.8%
11.0%
-29.2%
- 5,000 10,000 15,000 20,000
FOOD & BEVERAGES
BUSINESS & SERVICES
PHARMACEUTICALS
IT PRODUCT & SERVICE
PERSONAL ITEMS
HOME ELECTRICAL APPLIANCES
ALCOHOL
LEISURE
COSMETICS & TOILETRIES
POST & COMMUNICATION
FINANCE INDUSTRY
HOUSEHOLD
TRANSPORTATION,LOGISTIC & AUTO
REAL ESTATE & CONSTRUCTION
CLOTHING
2020 Aug Media spending & YOY growth rate by category versus 2019 Aug
In the first 8 months only IT products and services as well as the financial
sector are investing more than 2019
The view on August on a YoY basis shows that more categories have
accelerated their media investments

41
Media consumption
update

TV rating shows seasonal decline and drops below 2019
ratings in all markets
5.9 6.4 5.5 5.4 5.4 5.3 5.5 5.7 5.6
6.9
9.5
7.2
6 5.7 5.4 5.4 5.6 5.3
0
5
10
Jan Feb Mar Apr May Jun Jul Aug Sep
2019 2020 Tier 2
42Source: Infosys, Target:P18-45, Period:2020/01/01 – 2020/9/30, Timeslot: All Day Tier1 including（BJ、SH、GZ、 SZ）,Tier2 including almost Provincial capital
6.2 6.8
5.2 5 5 5.1 5.3 5.2 5.4
7.2
10.2
7.2 6.5 5.4 5.1 5.3 5.4 4.9
0
5
10
2019 2020
Tier 1
4.9 5.8 4.9 4.7 4.6 4.5 4.8 4.9 4.7
6.5
9.2
6.5
5 5.1 4.9 4.9 4.9 4.3
0
5
10
2019 2020
Others

TV dramas in HN STV achieved strong performance. ZJ STV and
HN STV swept top 5 TV variety shows, still dominating the market
43
Drama
Hunan STV should be the biggest winner in Aug. and Sept.
Variety
ZJ STV and HN STV swept top 5 TV variety shows in Aug. and Sept.
Jiangsu STV
蓝军出击
Ave Rtg 1.68
Dragon STV
平凡的荣耀
Ave Rtg 1.45
Hunan STV
以家人之名
Ave Rtg 1.87
Hunan STV
亲爱的自己
Ave Rtg 1.91
Zhejiang STV-
中国好声音
Ave Rtg 1.84
Zhejiang STV-
奔跑吧
Ave Rtg 2.78
Hunan STV
哪吒降妖记
Ave Rtg 1.23
Hunan STV-
中餐厅Ave Rtg
1.79
Zhejiang STV-
青春环游记
Ave Rtg 1.55
Hunan STV-
元气满满的哥哥
Ave Rtg 1.96
Source: Infosys, Target:P18-45, Period: 2020/08/01-2020/09/30, Timeslot: All Day Market: 57 Markets

44
Cinema records its second-highest box office in history during the
National holiday
• 100 million visitors contributed 3.952 billion box office on National Day holiday and the China cinema
market recovered strongly, basically returning to the same period last year.
• Anthology drama film “My People, My Homeland” beat animated film “Jiang Ziya: Legend of
Deification” after three days of release and topped the golden week‘s box office by grossing 1.85
billion yuan.
0
20
40
60
80
100
120
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2016 2017 2018 2019 2020
Box Office of National Holiday （Bil RMB）
Moviegoers of National Holiday （Million Times）
Source: China’s Box Office

Compared to H1, Education apps usage declined as students return
to school while EC continued its growth in daily usage
45
Source: iResearch, period: 2020.01-2020.08
21
23
87
171
291
384
418
410
757
1260
22
23
78
187
277
388
432
433
754
1248
Health & medicare
Food delivery & Recipes
Education
Travel & Navi
Gaming services
General news
Financial service
EC
Video services
Social networking
2020 Sep(till 27th) DAU
2020 Sep(till 27th)
2020 H1
Unit: Mil
2010 H1 VS. 2020 Aug
growth rate
-1 %
0%
+6%
+3%
+1%
-5%
+9%
-10%
2%
3%

Social app usage remains on a stable high level, especially WeChat
enlarges its userbase as fresh-year students start socializing
46
896
344
182
13 16
916
323
213
15 14
922
319
202
15 14
921
313
200
15 14
927
313
200
15 14
WeChat QQ Weibo LRB Baidu Tieba
2020 Top 5 Social Apps by DAU
2019 avg.
2020 H1
2020 July
2020 Aug
2020 Sep(till 27th)
Unit:
Mil
1220 1260 1255 1256 1248
92.5 93.5
90.5 90.0 89.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
0
200
400
600
800
1000
1200
1400
2019 avg. 2020 H1 2020 Jul 2020 Aug 2020
Sep(till
27th )
2020 Social Networking Apps User Behavior
Average DAU Average time spent
Unit:
Mil
Unit:
mins
Sources: iResearch, period: 2019-2020.09.27

OTV apps daily usage goes drops but remains above last year level.
Mango TV continues its positive momentum
47
167
153
78
32
22
181
164
92
44
26
172
156
88
49
31
170
153
85
56
31
168
144
80
55
29
iQIYI Tencent Video Youku Mango TV Bilibili
2020 Top 5 Online Video Apps by DAU
2019 avg.
2020 H1
2020 July
2020 Aug
2020 Sep(till 27th)
Unit:
Mil
365
421 413 410 395
112.1
121.2 122.7 122.8
127.8
0.0
20.0
40.0
60.0
80.0
100.0
120.0
0
100
200
300
400
500
2019 avg. 2020 H1 2020 July 2020 Aug 2020
Sep(till
27th )
2020 Online Video Apps User Behavior
Unit:
Mil
Unit:
mins

Short video usage and time spend declined in September as new
school year begins
48
430
468 474 477 470
39.0
58.3
62.2
66
62.7
0.0
10.0
20.0
30.0
40.0
50.0
60.0
0
100
200
300
400
500
600
700
800
900
2019 avg. 2020 H1 2020 July 2020 Aug 2020
Sep(till
27th )
2020 Short Video Apps User Behavior
Unit:
Mil
Unit:
mins
211
123
52 46
36
280
140
56 49
35
298
136
57 49
37
298
136
57 49
38
289
130
55 48 39
Douyin Kwai Watermelon
Video
Douyin Volcano
Edition
Haokan Video
2020 Top 5 Short Video Apps by DAU
2019 avg.
2020 H1
2020 July
2020 Aug
2020 Sep(till 27th)
Unit:
Mil

News app show stable usage while gaming apps usage declined
344
384 391 387 388
46.9
54.2 52.6 53.0 52.7
0.0
10.0
20.0
30.0
40.0
50.0
60.0
0
100
200
300
400
500
2019 avg. 2020 H1 2020 July 2020 Aug 2020 Sep(till
27th )
2020 General News Apps User Behavior
Unit: Mil
Unit:
mins
249
292 290 289 277
70.2
75.9 76.7 77.3 77.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
0
50
100
150
200
250
300
350
400
2019 avg. 2020 H1 2020 July 2020 Aug 2020
Sep(till
27th )
2020 Gaming Apps User Behavior
Unit: Mil
Unit:
mins
49

Both Navigation & OTA apps see a steady rise in September, as
people prepared for the coming national holiday
50
127 134 143 146 14919.5
23.1
34.4 33.7
38.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
0
50
100
150
200
250
300
27th )
2020 Navigation Apps User Behavior
Unit:
Mil
Unit:
mins
24
18 18 18
19
9.5
7.7 7.4 7.3
8.2
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
0
5
10
15
20
25
30
27th )
2020 Online Travel Apps User Behavior
Unit:
Mil Unit:
mins

279
73
37
16 10
286
86
40
18 11
300
89
38
18 11
299
86
37
18 11
313
84
39
18 11
Taobao Pinduoduo JD.com Xiaomi Mall Tmall
2020 Top 5 EC Apps by DAU
2019 avg.
2020 H1
2020 July
2020 Aug
2020 Sep(till 27th)
Unit:
Mil
EC continues its growth momentum in September, particularly
Taobao & JD. increased their userbase
363
410 425 422 433
17.9
16.9 16.4
16.3
17.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0
50
100
150
200
250
300
350
400
450
500
2019 avg. 2020 H1 2020 July 2020 Aug 2020
Sep(till
27th )
2020 E-commerce Apps User Behavior
Unit: Mil Unit:
mins
51

Tmall will launch two big sale waves for Double 11 in 2020
53
• In 2020, Tmall will upgrade Double 11 from Shopping Festival to Shopping Season. Over 5 millions of
merchants and 250,000 brands will participate in Double 11. Double 11 will launch two big sale
waves to provide consumers sufficient time to enjoy and allow merchants more time to promote.
• New brands is the key strategy of Double 11 this year. Tmall will provide extra traffic support to top
5,000 new brands and exclusive entrance to Double 11 main page.
• Tmall Global Double 11 will speed up “Three New” Strategy: New category, new brands, new
product launch. 2,600 new oversea brands will join 2020 Tmall Double 11, including HUDA BEAUTY.
Too Faced, Tatcha, etc.
1st Wave Warm-up 1st Wave Big Sale 2nd Wave Warm-up 2nd Wave Big Sale
Oct 21-31 Nov 1-3 Nov 4-10 Nov 11
Merchant Registration Date: Sep 17 - Oct 28
Tmall Double 11

JD & Pinduoduo will launch new features for Double 11 in 2020
54
JD Double 11Pinduoduo Double 11
Pre-sale: Oct 20-31
Warm-up: Oct 20-Nov 10
Big Sale: Nov 11
Pre-sale: Oct 20-31
Category sale: Nov 1-8
Big Sale: Nov 9-11
Extension: Nov 12-13
New for 2020 Double 11:
• Provide more tools for free to merchants
including visual design and marketing
tools.
• Deduct commission of CPS ads on social
media platforms and livestreaming to save
marketing cost for merchants.
• Increase JD finance loan limit to merchants
for a better cash flow turnover.
Key methods for 2020 Double 11:
• Coupon flash sale
• Super brand sale
• 9.9RMB flash sale
• 10 big sale category zones: clothing, food,
fruit, household electronics, beauty,
oversea products, sports, home supplies,
home textiles, etc.

55
Right before Double 11 Taobao changed its mobile App
homepage layout, which is both challenge and opportunity
for merchants:
• Central banner is moved down and changed from
horizontal to vertical;
• ”You May Like” sector is moved up to the feed on the
first page. Short video, livestreaming and feed became
the most important in Taobao App content;
• Add “Mini Product Description Page” in You May Like
This is the biggest Taobao APP homepage layout change
since 2018. The purpose is to follow the shopping trend of
young generation by personalized recommendation, power
of content and short video and immersive shopping
experience. Meanwhile, it provides merchants with more
exposure opportunities, promotion methods and operation
tools.
Source: Tiaopi Ecommerce
Taobao changed app homepage layout to follow Gen Z
shopping trend

56
• Soho Live: A daily livestreaming service focusing on
luxury brands
• Soho Mag: A content-rich channel with latest fashion
news jointly developed with fashion editors and trend
setting influencers
• An upgraded membership program offering personalized
services to high-value consumers
End of August, Tmall Luxury launched 3 new features to drive
New Light Luxury trend among Gen Z consumers:
Tmall Luxury has total consumer of 280 millions, among which
80% are below 35 years old and 26-30-year-old is the largest
group. Generation Z shows high potential in luxury products.
Average gen Z consumer spends 25,000RMB on luxury products
every year, which equals their parents’ luxury purchase.
Data Source: McKinsey Generation Z Consumption Report
Also Tmall luxury launched new features to target Gen Z

57
COVID-19 accelerated the livestreaming economy this year. Ecommerce livestreaming became an important
online sales method for most merchants during this special period. From February to June of 2020, over
1,200 brands launched over 450,000 ecommerce livestreaming in total. During 618 campaign, total number
of Tmall livestreaming merchants has grown by 160% YoY, and total number of livestreams by 123% YoY.
From 2017 to 2019, KOLs led Taobao livestream trend. However, in 2020, merchant livestream sales
revenue increased tremendously and almost equate with KOL livestreaming. According to Alibaba financial
report 2020 Q2, during 618 campaign, 60% of Tmall livestreaming GMV came from merchant live streams.
Alibaba is the leader of livestreaming merchandizing, while Tik Tok and Kuaishou are catching up.
Source: 36Kr
GMV (Billion RMB) Taobao Kuaishou Tik Tok
2020 Target 500 250 200
Daily Average 1.6 0.5 0.2
Jan-Jun , 2020 300 90-100 40
Jul-Dec, 2020 Target 200 150-160 160
Alibaba, Kuaishou and Tik Tok lead China livestreaming economy

58
Taobao sprinting in AI technology to apply in virtual live-
streamers and encourages more merchants to try out.
In early 2020, Taobao introduced virtual idols (i.e. Luo
Tianyi, Simon) into livestreaming. This innovative
method brought new vitality to livestreaming and
increased fans base and GMV especially among
generation Z consumers.
Taobao AI technology can build a virtual live streamer
according to human live streamer’s facial expression,
language and voice, body language, tonality, etc. He/She
answers questions, assists and engages with the guests
after human live streamer logs out. This technology
releases live streamers’ stress and attracts new fans in a
creative way.
Source: Tiaopi Ecommerce
Alibaba is focusing on AI technology in livestreaming

New EC platforms are emerging for oversea premium brands
59
Secoo is a platform
mainly for luxury brands
with 600k active buyers
and 4.7 billion RMB
(US$672 million) GMV
generated during Q4
2019. Moreover, the
average order of 3,000
RMB (around 446 US$)
will appeal to premium
brands seeking to enter
China.
It’s an affiliate system
relying on resellers to
push products. The
platform also
developed content
features to keep its
users engaged. Many
large brands promote
on it, including
UNIQLO and
McDonalds.
Yangmatou is a cross-
border platform for brands
to sell directly to China.
Yangmatou announced 1.2
billion RMB of GMV during
the first hour of Black
Friday 2019. 40% of users
came from social
channels. The platform
also leveraged the live-
streaming craze with a
very vibrant live-streaming
activities.
LOOK is a platform
with a mission to bring
oversea premium
brands to China with
innovative strategy: to
enable KOLs to create
their own mini-store
and receive a
commission.
Belongs is a WeChat
Official Account and
Mini-program focused on
promoting oversea
jewelry brands in China
with 85,000 monthly
users. It has a very active
following of jewelry
enthusiasts, eager to
discover oversea niche
premium brands such as
Alighieri or PDPAOLA.
Yangmatou
洋码头
SECOO BELONGS LOOK
Shenmezhidemai
什么值得买

60
Media market news

BesTV+ Flow Media Platform becomes a pilot platform for China's
radio and television 5G applications
61
Data source: https://mp.weixin.qq.com/s/nPDOS7sgAoWbYn1_Cc0KDA
Mid September, the Oriental Pearl Tower BesTV+ streaming media
platform was approved to become the "5G Application Platform" of
China Radio and Television Network Co., Ltd..
It is an application platform in the 5G era that is driven by the dual-core
"content + service", connecting online and offline entertainment
services. With the advantages of high-quality offline channels, such as
the Mercedes-Benz Cultural Center, with BesTV APP as the core carrier,
the Shanghai area can realize the connection and unified operation of
large and small screens and multiple terminals and achieve unified user
services.

Games streaming giants Huya and DouYu to merge
62
China’s two largest games live streaming companies HuYa and DouYu,
both of which have U.S. share listings, will merge. The deal was
initiated by social media, games and streaming giant Tencent.
At the same time, it has also been agreed that Tencent will sell its
own game live streaming business Penguin eSports for $500 million,
after the Huya-DouYu deal is completed. That will enable a three-way
consolidation of the sector.
Assuming that the deal receives regulatory approval and closes in the
first half of 2021, the merged company will be a giant with some 300
million monthly active users, before overlapping subscriptions are
eliminated. That could represent as much as 80% of the Chinese
market. Tencent would have 67.5% voting control of the enlarged
company.
10.1
9.4
2
Douyu Huya Penguin esports
DAU of Top 3 game streaming apps

63
WeChat introduced gesture recognition such as key interaction
and CTA after a user clicks on an ad. WeChat gesture recognition
was developed for the Chinese Valentine’s Day to create
interactive entertainment through:
• Combining the user’s gestures (such as “to like” 点赞, “to
form a hand heart using one’s thumb and forefinger” 比心,
“wish sb. a Happy New Year” 拜年),
• Adding corresponding stickers or special effects in real time
• applying special effects at user’s fingertips.
HOW DOES THE WECHAT GESTURE RECOGNITION WORK?
Once a user clicks on the ad via WeChat Moments, they can use
their phone’s camera to scan the heart gesture, resulting in
multiple brand interactions, including branded red pocket
vouchers, gift collection page, or customized Easter-egg widgets.
The feature is also implemented organically within WeChat when
the user calls the scan feature, which doesn’t cost any credit.
This gesture will help brands even more to create interactivity
with their community in a unique and personalized way. One
more reason to use WeChat for brands’ campaign for Qixi festival
and other Chinese festivals.
WeChat launched new interactive format of Moments Ads
Full-frame Card Ads + Ending Page Canvas Ad Page Gesture Recognition
Pop-up Canvas
Page
Canvas Page/Html5/Mini Programs

64
Smooth experience: promotional information is conveyed in an
appealing way through a fast-loading and immersive ad experience.
Diverse templates: the canvas ad page editor on the ad platform
provides highly customized industry templates, which allows user to
quickly replace materials and make their own promotion pages.
Flexible elements: canvas ad pages provide various elements such
as images, videos, tables, text, buttons, and page flip effects to form a
page. Advertisers can organize and create canvas ad pages easily
according to their needs.
Remark: Only Canvas Ad page can be selected for the landing page.
WeChat launched new format of Moments ads - Vertical Video Card
Vertical Video Card Canvas Ad Page

WeChat launched new buying model - WeChat OCPX
65
• Following the trend, WeChat also launched the OCPX buying model
• OCPX is an intelligent automatic bidding strategy that can optimize performance according to the
optimization goals
The difference between different WeChat buying model
Regular Buying OCPX Buying
➢ Charging by CPM
➢ Guaranteed exposure with
fixed CPM
➢ Minimum spending：¥50,000
➢ AII available format
➢ Charging by OCPM/OCPC
➢ Optimized CPM/CPC
➢ No spending limitation
➢ Less available format
Formats of OCPX buying model
Banner/Video Moments Ad

66
Data source: Mango TV
New media format: Mango TV – Full-screen Pause 明星产品
Full-screen Pause
SUMSUNG
Background：In early September, Samsung Galaxy Note 20 came into the market with
Qin Hao as the spokesperson, so they need to gain large exposure of the new product
quickly. Their strategy choose full screen pause for one month
CTR：20% higher than the estimated
Reach more users
Higher CTR%
Full-screen show
Visual shock
When a user clicks on a pause,
the ads fill the screen
Support : Click
Continue watching or Quit
Launch Ads.

67
Mango TV Strategy Product -Love at First Sight 新品宝
Love at First Sight
Position First
First position priority
Preconceived
First Sight
The first ads. which the user saw
that day
CPM Buy
Maximum UV
coverage
Frequency Control: 1/day
Ensure the maximum number of
people covered within the same
budget
CTR：4%
Super Show
Imp：5075cpm
CTR：6%
Coverage UV：16494CPM
Background：Hengan launched the high-end sanitary
napkin series-space7. Yang Chaoyue, as the
spokesperson, gave fan coupons on her birthday.
Therefore, it is necessary to maximize the coverage of
women on Mango TV that day.
Hengan-Space7

68
According to rank list,
Choose TOP5-20 content /
Designate 5-20 content
CPM Buy
Support frequency control
High
Cost-effective DMP
Target: City / TA
High Quality
Flow
OLAY熬夜霜
Background：Olay launched a stay-up cream
for women and needed to quickly reach their
target audience
Strategy：Super Show+聚好看，
Cover about 10 hot programs
Imp：60808cpm
CTR：3%
Mango TV Strategy Product – Combine Hot Program 热度宝
Combine Hot Program

TV/OTV – New program hot Drama
69
最美逆行者 – Heroes in Harm’s Way
Period: 2020 Sep 17th
Episodes: 14
Cast: 陈数、王志飞、杨志刚、姜妍、萨日娜、李依晓、史可、徐娇、阚清子、成
泰燊、牛骏峰、马天宇、韩雪、张铭恩、肖燕
Media: IQIYI、Tencent、Youku、CCTV1
Introduction
It’s the first TV series detailing the national fight against the
coronavirus pandemic. The play is adapted from the touching stories
that emerged in the national fight against the epidemic in 2020. It is
composed of seven stories, such as “In harm’s way”, “Safe and sound”,
“Happy community”, “One thousand kilometers”, “Great rabbit uncle”
and “Together”.

TV/OTV – New program hot Drama
70
在一起 – Together
Period: 2020 Sep 29th
Episodes: 20
Cast: 张嘉益、周一围、谭卓、雷佳音、张静初、倪妮、杨洋、赵今麦、朱亚文、
徐璐、黄景瑜、李小冉、陈数、靳东、邓伦、海清、冯绍峰、刘敏涛、贾乃亮
Media: IQIYI、Tencent、Youku、东方卫视、浙江卫视、江苏卫视、广东卫视
Introduction
This drama is another anti-epidemic drama. The show tells 10 stories
adapted from the real experiences of people amid the coronavirus
epidemic across 20 episodes, such as the building of the Huoshenshan
and Leishenshan hospitals, emergency specialty field hospitals built in
Wuhan, Central China's Hubei Province.

TV/OTV – New program hot Variety
71
新手驾到 – Go Newbies
Period: 2020 Aug 13th
Episodes: 12
Cast: 戚薇、周深、霍尊、喻美壬、蔡程昱、吴宣仪、王琳凯、武艺、王子异
Media: Mango TV、湖南卫视
Introduction
This program shows the current status of road safety in China and
popularizes traffic safety knowledge by recording the journey of students
learning to drive, so as to enhance the public‘s awareness of traffic safety.
According to the type of driver’s license, several students are divided into
two groups: manual transmission and automatic transmission. According
to the driving test process, it is divided into four stages from subject one
to subject four. In addition to the training content of the usual driving test
subjects, the program will also design various activities at each stage
based on driving test knowledge and skills, road traffic safety, etc., aiming
to diversify the program content.

OTV – New program hot Variety
72
演员请就位 2 – Everybody Stand By2
Period: 2020 Oct 2rd
Episodes: 12
Cast: 陈凯歌、尔冬升、赵薇、郭敬明
Media: Tencent
Introduction
What is different from the previous season is that the program mode of
this season has changed from "director casting" to "actors competing
for roles." The film and television industry is known for its
competitiveness. Actors in this industry need to actively fight for roles
to win opportunities for themselves. This time Everybody Stand By
stimulates the upgrade of the competition system is the epitome of the
current status of the film and television industry. The four directors
have dual identities of both guides and collaborators to sharpen the
actors’ performance skills.

73
In September cinema attendance rate limit was increased to 75%,
overall limitations are expected to be lifted soon
7.20 9.25
75%
8.14
上座率放宽
50%
100%
Data source : Focusfilm

74
In October super-large and ultra-high-definition LEDs were
successively launched and started advertising
LED was still one of the most compelling forms of media. Creative materials combined with high quality
screen can show the most amazing effect.
Huiyin LED @ Shanghai Taikoo HuiYinjia naked eye 3D LED @ Chengdu Taikoo Li
Data source : Local Vendor

News from Hearst Group about Virtual Idol
Data source: Hearst Group
This year SuperElle introduced Sam Dashan and Liz Chestnuts, a pair of virtual
fashion models designed specifically for Gen-Z readers. And they showed the
latest 2020 spring and summer fashion trend inspired by young generation.
Readers can scan AR-compatible pages by using the official ELLEplus
smartphone app to unlock interactive AR models of jumping, sinning around,
and kisses in the air.
Sam and Liz’s introduction does indicate a growing rise of marketing trend, we
can find that more and mora fashion brands start their Cooperation with virtual
idols for their young fans and stable characters.
As Gen-Z begin playing vital roles in different domains, print media will
continue to innovate and take advantage of new technologies.

76
Campaigns worth mentioning

Impactful naked-eye 3D display at Chengdu Taikoo Li for launch
created a lot of online buzz
77

ANTA Tmall Super Brand Day @ Bund Shanghai with drone show to
amplify influence
78
On July 27th, ANTA launched the first Tmall Super Brand Day. This event ANTA leveraged the influence of Tmall’s first marketing
IP on the entire network. At the early stage, ANTA and Tmall Super Brand Day launched a new gameplay “Alibaba Zoo cheering
for the Olympics”. Dozens of IP animals with their own fan base all become the Olympic mascots, successfully earned enough
attention. At the same time, Tmall integrated “See Now Buy Now” show sale model, achieving remarkable results in sales
volume.
Data shows that during this event, ANTA’s one day sales surged by 1777% year-on-year, setting a record for the highest single-
day sales except Double Eleven, and ranking among the TOP2 in the industry.
The launch ceremony also featured a drone show and a performance by renowned Chinese pianist Lang Lang, as well as
appearances by multiple Olympic champions and celebrities. Li Jiaqi, the NO.1 live broadcaster, not only visited the conference
site in person, but also opened an ANTA national flag uniforms special session in the live broadcast room.

➢ Period：2020.09
➢ Advertiser: Dicos
➢ Product: Fried chicken
➢ Objectives:
• Upgrade brand image and recruit young TA
• Promote weekly Wed. promotion (Fried chicken for ￥7.7 RMB)
➢ Media Strategy and Tactics:
1. IP Cooperation - Popular dancer, 黄潇, designed choreography for
Dicos and performed the choreo. in the show. Discos’ Team Gravity
was later established and announced on Weibo.
⚫ Invited audience, as Team Gravity member, to create own 7.7
hand gesture, visit store on Wed., upload photo to win prize.
2. Event Marketing - Store staff danced with young child and treat him
with fried chicken. It was recorded and uploaded online. The video
went viral and was widely shared and discussed.
3. Virtual Characters - Virtual Team Gravity members were created and
published on Weibo. Ad was designed with virtual members on the
key visual, displayed in outdoor big screen in 6 cities and in vertical
platforms to reach 二次元爱好者 ACGN group.
4. Roadshow & Livestreaming - Invite popular dancer from the show and
hold store roadshow as well as 2-week KOL live streaming on Ali
platform.
79
Successful O2O campaign by Dicos
including coop with Street Dance of China
Data Source: Desk Research
Store roadshow
+ KOL livestreaming
Discos’ Team Gravity
establishment
Creative ads
placement
in 6 core cities
Event marketing
video published
Campaign Summary
Result
• Hashtag: over 100 million read, over 700k comments
• Video: played 7 mil times, over 200 million Weibo engagement
• Livestreaming viewer: 1 million people
Key Takeaway
• Leverage hot drama IP that matches its planned-to-upgrade brand
image “real, energetic, surprising” , create social buzz, involve 2D
element and hold livestreaming to finish integrated O2O media launch;
• Element “Dancing” throughout the whole campaign while continuing
to utilize media favored by young generation, ACGN vertical, social
media, livestreaming, and celebrity to successfully induce engagement.

80
Havas POV

Advertising activities continue to recover, brands and platforms
are fighting for audiences, attention and sales
81
• Advertising activities continue to recover and show a gradually increase since the COVID-19 peak in February. Digital
media continues to be the main battlefield for brands.
• In September TV and OTV performance shows a slight decline as the new school year has started. Despite the overall
decline Hunan TV drama and variety shows remain very popular. And MangoTV continues its positive momentum
thanks to recent show formats, the platform also launched new premium ad formats.
• New premium OOH sights have been launched and provide new opportunities for high impact placements. Also
Cinema is back and has been particularly popular during the national holidays. While movies schedules remain
uncertain with last minute changes to be expected; consumer show high interest and with the expected lift of any
attendance restrictions also Cinema will provide an excellent platform for high impact brand exposure.
• Digital media consumption remains very high. Social networking apps prevail on a stable and very high level of usage.
WeChat even managed to further enlarge its audience base and launched new ad formats and buying model. While
short form video experiences a slight decline in usage as the new school year begins. Nevertheless both continue to
be the main battlefield to break through the intensifying clutter and gain audience attention.
• New and innovative formats can help you to break through the intensifying clutter. Your Havas team can help you tailor
your overall marcom strategy to drive brand and sales, including adjusting your EC strategy based on the latest
developments.

With Double 11 promotions already in full swing EC platforms
are booming
82
• As EC continues to be at all time high level, platforms are competing in a fierce battle for audiences and traffic
acquisition during the Double 11 shopping festival. “New” is the keyword for Double 11 and the whole ecommerce
ecosystem. Tmall, JD, PDD and other EC platforms trying out new ways and promotion methods to embrace the fast-
changing world and appeal to new generations of consumers.
• Gen Z has become high potential audience group, particularly for affordable luxury. Taobao changed its App homepage
layout and Tmall luxury has launched new features to better cater to Gen Z, who also show growth potential for many
other industries. Merchants need to adapt their strategy quickly to the new Taobao mobile App rules and meet young
generation’s demand for a successful Double 11.
• Although Tmall and JD.com are dominating the Chinese e-commerce market, brands can increase both reach and sales
by being present on multiple emerging ecommerce platforms. E.g. adopting new EC platforms for oversea premium
brands that are rising.
• Live streaming continues its growth momentum and more and more brands across all categories leverage streaming in
their comms activities on various platforms in order to drive sales. EC platforms continue to evolve and explore more
new EC models, such as social EC, live EC
• The right platform and content strategy will make a difference in this fast changing and dynamic marketplace. When
increasing the number of activations and tactical campaigns including live streaming, EC and social commerce activities,
consistency is key to drive efficiency.

Havas Media China launches Havas Market,
our inhouse specialist for Ecommerce
83
Offer cost efficient media inventory
Offsite media buy
KOL pool and distributor channel
Off/Onsite content feeding Onsite TP operation
Onsite EC business operation
DMP
EC SSP
Red Tmall JD PDDRed Bilibili Tiktok Tiktok
Our integrated services include EC Strategy & Consulting, Offsite media buy, Social
Commerce and eCommerce Operation to cover the full EC ecosystem.

Our Havas Village can help
you drive your business
through every touchpoint
84
E-COMMERCE
MOBILE
DATA
STRATEGY
VIDEO & AUDIO
NATIONAL/LOCAL
PUBLISHING
NATIONAL/LOCAL
OUTDOOR
SPONSORSHIPS
SPORTS
MARKETING BRANDED
CONTENT
EXPERIENTIAL
MARKETING
SOCIAL MEDIA
CREATIVE
STRATEGY
CRM
SEARCH
INNOVATION
GEO-
LOCATION
PERFORMANCE
MEDIA
MUSIC
GAMING
ENTERTAINMENT
INTEGRATIONS
SHOPPER
MARKETING

We recently hosted our latest Market Pulse Seminar
85

SHANGHAI
11/F Novel Building
887 Huaihai Zhong Road
Shanghai 200020
+86 21 3397 8666
GUANGZHOU
Room 07, 16/F CTF Finance Centre,
No 6 Zhujiang Road East, Tianhe District
Guangzhou 510130
+86 20 3877 3282
BEIJING
1006, 10th Floor, China Youth Plaza,
19 Dongsanhuan North Road,
Chaoyang District,
Beijing 100020
+86 10 5923 2791

COVID-19 // China POV Vol.10

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