PHD Media China > News > PHD China’s Friday Data Snack!
October 11 2019

PHD China’s Friday Data Snack!

Industry Insights Our Views
PHD CHINA Friday Data Snack

Start the weekend with a nibble!



During the national holiday (30 Sep. to 7 Oct., 2019), the Chinese movie box office hit a new record, reaching RMB 5 billion, 162% YoY growth. Box office ticket sales for “My people, My country” hit RMB 2 billion RMB in only seven days. Click for more…

INSIGHT & IMPLICATION: A holiday period in China is the right time for brands to show how they localize and what value they provide to the overall community. By incorporating cultural elements into product design and communication, brands are more likely to win over their target consumers.Holiday-related content is key in the communication strategy but it needs to be cleverly and creatively leveraged to ensure that a brand stands out from their competitors. That said, in order to be able to reap the rewards of localization successfully, brands need to be cautious of local sensitivities.


According to McKinsey, only 70 % of luxury consumers would choose to purchase luxury goods in China if offered similar prices to overseas outlets. In fact, 77% of consumers prefer to buy at duty-free for quality reassurance and pricing. Click for more…

INSIGHT & IMPLICATION: While Chinese luxury consumers show stronger spending power globally, the growth of domestic sales has failed to meet expectations. Young, wealthy Chinese consumers are more willing to purchase overseas while travelling thanks to better in-store experiences and customer service. Brands need to consider that historical reputation and price advantages cannot always guarantee higher sales. Instead, the focus should be on overall optimisation of integrated brand experiences both online and offline, including the after sales process which is the only way to win over increasingly sophisticated Chinese luxury consumers. This is why the luxury businesses needs to continue optimizing their brand communications and ensure that their global experiences remain consistent.


According to Jiemian, arcade games have seen explosive growth 2017 and are now valued at more than RMB 60 billion. As of now, the total number of claw machines in China has reached 2 million. Click for more…


INSIGHT & IMPLICATION: Arcade games, once popular in Taiwan and Japan, have taken a different approach in mainland China through gamifying luxury shopping. The most common arcade game mechanism is consumers paying around RMB 30 for a box that might contain nothing or a Chanel lipstick. This is particularly favored by Chinese millennials. This gamification element is increasingly becoming an important aspect of the shopping experience. That said, brands need to consider how they can integrate gamified experiences that help them achieve their strategic goals and ensure that they enhance, rather than damage brand perception, which can happen if the idea is poorly executed.


A survey conducted by iResearch and TechNode revealed that video game live-streaming in China has seen continuous growth since 2015, accounting for 28% of total online live-streaming in 2019 and is estimated to reach 35% by 2021. Click for more…

INSIGHT & IMPLICATION: China has the largest gaming population globally (630 million), generating over USD 30 billion annually. The industry is expected to continue growing (estimated CAGR for next 5 years is 10%) even after the new gaming license halt in 2018. Currently, the gaming livestream market is ruled primarily by two platforms, Huya and Douyu, who combined control more than 60% of the market. As e-sports enter mainstream culture, the size of gaming livestream audience continues to increase. This represents an important opportunity for brands to target younger audience. In order to meaningfully reach this audience, brands need to consider how their tone matches with the overall game live streaming experience and what they can do to enhance it, while ensuring they reach their marketing and business objectives at the same time.


Have a great weekend!

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