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August 30 2019

Friday Data Snack!

Industry Insights Our Views



According to Kantar Worldpanel China, Coca-Cola became the fastest growing FMCG brand in terms of consumer reach point (CRP), hitting 223 million in 2018, representing an increase of 9.5% YoY. click for more…


INSIGHT & IMPLICATION: When the increasingly health-conscious Chinese consumer and their change in behaviour is taken into consideration, it might seem surprising that a brand known for its carbonated beverages like Coca Cola managed to increase their consumer reach point. However, when we deep dive into Coca Cola’s response to new trends, we notice a new, sugar-free product range that includes Coke Fibre Plus. Next, smaller packages of the core product generated sufficient growth to overcome the drop of larger package sales, showing that the brand responded well to consumer behaviour changes that sees carbonated drinks as treats, rather than beverages consumed in large amounts. This shows that even brands in traditionally “unhealthy” categories can and should find an appropriate response to the changed behaviour through new product ranges and innovative communications and understand how they can fit those more personalized and segmented consumption occasions. These micro-moments can help brands create new opportunities for meaningful communication with consumers and result in sales increase. 



92% of consumers born between 1990 and 1999 have a monthly salary surplus, and 80% of them invest the surplus in financial products. The money saved to Yu’e Bao (Alipay’s monetary fund) every month by the post-90s is 4.5 times of their Huabei (Alipay’s virtual credit card) bill on average. In addition, the time that post-90s are starting to manage their investments through financial products is 10 years earlier than their parents. click for more…


INSIGHT & IMPLICATION: Consciousness of financial management importance among younger Chinese consumers is stronger than ever before. Significant social pressure to become and stay successful has led to their strong sense of independence and self-protection. Their meticulous budgeting and early financial management represent preparations for the future, and it starts during their college time or within two years after graduation. AliPay’s virtual credit card Huabei allows them to spend more freely, but also take advantage of earning an extra month’s return by using the credit limit. Willingness to spend money does not mean that young Chinese consumers are not saving or that they’re not considering investing for the future. Brands should consider addressing what they can do to address the desire of young Chinese people to invest in their future and what role they should play in it.



The number of mobile commerce monthly active users (MAUs) in China reached 997 million in June 2019, representing an increase of 15.6% YoY. China’s mobile shopping penetration reached 87.7% as of the end of June 2019. click for more…


INSIGHT & IMPLICATION: China’s overall eCommerce growth has slowed down, with lower-tier cities becoming the new source of growth. For example, tier 3 cities contributed to the largest number of online shoppers, approximately 32 million, who prefer simple and straightforward online shopping experience. Alternative channels such as Mini Programs have also helped eCommerce platforms recruit new users, with JD seeing 92 million and Pinduoduo 43 million new users from their WeChat Mini Programs. Meanwhile, Taobao gained 74 million new users from Alipay’s Mini Programs. Chinese consumers no longer want to download and keep a large number of apps they rarely use, which is why the features of “super apps” that are providing access to multiple platforms and services such as Mini Programs are increasingly replacing a wide range of apps. So, it is not surprising that other ecosystems such as ByteDance and Baidu have introduced their answers to WeChat’s and AliPay’s Mini Programs. That said, due to the fact the user behaviour and motivations across these platforms are different, brands need to understand what they should do to enhance their target audience’s experience and how to differentiate their approach to each platform.



Young and middle-aged people make up the majority of new media users, with over 70% of them aged 26 to 40. Entertainment, social networking and information acquisition are the key categories of new media platforms, accounting for 57.8%, 53.1% and 51.8% respectively. click for more…


INSIGHT & IMPLICATION: Most new media users have a neutral attitude towards the effectiveness of new media advertising to convey product information, but they appreciate creativity and are interested in it if the content is attractive enough or delivers what they are interested in. Compared with traditional media, new media can engage users more and provide instant feedback. That said, it is not possible to transplant traditional media formats to new media platforms and expect the same result they had in the era of traditional media dominance. Therefore, brands need to develop new, innovative media formats that fit the utilized platforms and help enhance and improve the experience, rather than disrupt it. Some of the new media formats can help brands not only raise awareness and engage with their target audience, but also increase sales conversion and establish a long-term relationship with the buyers through owned media.


Have a great weekend!

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