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May 10 2019

Friday Data Snack!

Industry Insights Our Views

 

  • In 2018, Alibaba’s C2C eCommerce platform Taobao’s live broadcasting platform Taobao Live delivered sales valued at over RMB 100 billion, representing a nearly 400% year-on-year growth rate. click for more…

INSIGHT & IMPLICATION: Entertainment and online shopping have now been integrated on Taobao. Live video broadcasting has become one of the critical elements for success within Alibaba’s eCommerce ecosystem. Consumers no longer need to read product details shown on the page –  they can watch an introduction video to learn about it. In 2019, Tencent also launched their own answer to Taobao Live for WeChat Official Accounts. If executed properly, live video can be a valuable way to boost eCommerce sales because it creates a more engaging online shopping experience, which is why brands should consider integrating this communications element with their eCommerce offering.

 

  • Short video app Douyin has recently launched a campaign to promote vlogging, increasing the video time limit for all users from 15 seconds to 1 minute to support the program. click for more…

INSIGHT & IMPLICATION: While vlogs, or video blogs, have reached a mature stage in non-China markets (primarily through YouTube), they only just started gaining popularity in China 2018. Douyin is not the only one following the trend – platforms like Bilibili, Baidu Haokan Video and even Sina Weibo have all been stepped into this field. Since vlogs are primarily about the life experiences of the contributors, viewers tend to feel a stronger connection with vloggers. For brands, vlogs have the potential to convey more information than short videos can, making them a more effective communications format under the condition they’re executed properly.

 

  • Online group buying firm Pinduoduo announced it would invest RMB 1.5 billion to shore up 100 heritage Shanghai brands that have seen sales dwindle in recent years, in response to a municipal government initiative to reinvigorate its consumer goods manufacturing industry. click for more…

INSIGHT & IMPLICATION: As more consumers start to appreciate Chinese traditional culture, the government has implemented measures to revive Chinese heritage brands, with the initiative supported by platforms such as Pinduoduo. Support for Chinese traditional culture and cooperation with those heritage brands has driven a significant buzz online since there is a strong attachment and emotional connection between Chinese consumers and traditional culture or heritage brands. International brands should also consider how this trend can benefit them, by introducing more localized products, including unique Chinese fragrances and product packaging that incorporates traditional cultural elements.

 

  • In 2018, China’s leisure food eCommerce market saw sales of RMB 62.13 billion, up 23.4% and it’s expected to reach RMB 96.40 billion by 2020, according to iiMedia Research. click for more…

INSIGHT & IMPLICATION: There is still significant growth potential for China’s leisure food through eCommerce channels. To boost sales, many brands package their products as “supported by online influencers” and adopt “hunger marketing” to trigger consumers’ sense of urgency. Some other brands position themselves as healthy substitutes for regular meals. In order to win in this market, brands need to understand consumers’ healthy-living motivation and fear of missing out and communicate with them in an entertaining and engaging way.

 

  • In March 2019, the total users of the leading fitness app KEEP surpassed 120 million, accumulating 6.9 billion training sessions and 84.2 million kilometers of running. click for more…

INSIGHT & IMPLICATION: KEEP targets fitness beginners and amateurs. As a sports & fitness vertical app, KEEP has strong Professionally Generated Content (PGC) and numerous other features, including eCommerce that encourages users to conduct their purchases with the platform. The sport industry in China is growing fast and many brands have already cooperated with some sports competition IPs. Brands should consider what role they can play and how they can contribute to this more active, health-aware lifestyle to develop stronger consumer engagement.

 

Have a great weekend!

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