Category
Kuaishou Youth Note, which is dedicated to the teenager education market, was launched in December. To make it teenager-friendly, the singular time limitation of daily usage is 40 minutes and it can only be accessed between 6 a.m. and 10 p.m. Click for more…
INSIGHT & IMPLICATION: Seeing the inevitable trend of digitalisation of traditional education, all major social platforms plan to build a presence in the industry. Kuaishou is one of the pioneers, whom not only have successfully monetised Kuaishou Lessons on its star app, but who have also determinedly penetrated into K12 category by launching“Kuaishou Youth Note”. Tapping into this expanding market is also Kuashou’s differentiation strategy to gain popularity amongst teenagers. That said, there are different ways to reach targeted groups, including updating marketing strategy or even restructuring business dynamics to increase brand presence with the target audience. However, executions should be based on solid and insightful consumer studies to ensure the activity is meaningful and accurate.
Consumer
According to the T-mall 2019 Sports Consumption Report, the number of Chinese sports enthusiasts has reached 400 million. However, it is estimated to have 100 million ‘claimed sports lovers’ based on a calculation of other officially released data by Alibaba. Click for more…
INSIGHT & IMPLICATION: With their increasing living standards, Chinese consumers are more willing to invest in body and health management than ever before. This phenomenon is especially significant among lower tier and elder generation consumers, which results from the fact that they have more spare time and disposable income. However, there is also a group of ‘ claimed sports lovers’ whom actively purchase sports equipment and update their gym memberships but rarely exercise. That said, what consumers claim might not be the thing they really need, therefore, when brands conduct consumer study, it is necessary to evaluate the same statement from various angles to ensure accuracy.
Culture
According to insight agency 36Kr Institute, the market of new types of tea beverages will reach RMB 50 trillion by 2019. In China, there were 410,000 tea shops by 2018 Q3 with a 74% YoY growth rate. Click for more…
INSIGHT & IMPLICATION: The booming nature of new types of tea beverages started in 2015 when NAYUKI established their first shop in Shenzhen. As the growing popularity of oriental health ideologies and extensive industry innovations in business models and product development, tea shops are no longer an occasion that can only satisfy single demand from consumers. 57% and 55% of consumers would spend time in a tea shop when shopping and socializing, and 66% of them associate tea shops with joyful emotions. It is not uncommon to see collaboration between brands and tea shops. For example, Heytea’ s crossover with FMCG brands, including Pechoin and L’Oréal in 2019, has won significant recognition in the industry. Brands can think about what role they can play to leverage this special scenario and culture into marketing strategy in order to build meaningful bonds and convey a differentiated brand position amongst the young generation.
Media
Tencent Music Entertainment Group reported that total revenues for 2019 Q3 rose 31% YOY to RMB 6.51 billion, with revenue from paid users rising 43.2% from 2018 Q3. Click for more…
INSIGHT & IMPLICATION: Nielsen reported that 61% of Chinese consumers pay more for superior quality, which is also true in terms of online content. While it is not clear what proportion of unpaid video/music consumption, the protection of intellectual property has been tightened up in recent years. Increasing awareness of copyrights has facilitated consumers to pay for protected content, which in turn has encouraged creators to produce more content for the market. For brands, this is the sign of a maturing market, where competing with copycats based on price is no longer common and consumers are becoming sophisticated enough to choose products based on authenticity and brand experience.
Have a great weekend!
