CHINESE CONSUMER GET TO KNOW THE NEW - Inside the mind of the Chinese consumer

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CHINESE CONSUMER GET TO KNOW THE NEW - Inside the mind of the Chinese consumer
EBOOK

                              REACHING CHINA

PART 2
GET TO KNOW THE NEW
CHINESE CONSUMER

                Everything you need to know about the
                new Chinese consumer, how their behaviors
                have evolved with the pandemic and
                how global brands can reach China
                from anywhere in the world.

                                                    WEAREMiQ.COM
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CHINESE CONSUMER GET TO KNOW THE NEW - Inside the mind of the Chinese consumer
G E T TO K N O W T H E N E W C H I N E S E C O N S U M E R                                                                                                                                                               THE BIG
                                                                                                                                                                                                                                   K ETYRSETAT
                                                                                                                                                                                                                                           NDS

                                                                                                                                   K E Y   S TAT S
IN THIS EBOOK YOU’LL LEARN
                                                                                                                               1                                                                3

                                                                                                                                                           of people in China
                                                                                                                                                           did more online                     42%
                                                                                                                                       55%
                                                       1         What motivates the Chinese online shopper, traveler and                                   shopping last year                  of consumers in China will increase their
                                                                 entertainment viewer                                                                      than they did in brick              Singles Day (11.11) spend this year.
                                                                                                                                                           and mortar stores,
                                                                                                                                                           84% say they’ll
                                                                                                                                                           continue this trend                  4

                                                                                                                                                                                               66%
                                                       2         How consumer behavior has evolved, and what you need to                                   into the future.
                                                                 know as China comes out of the pandemic

                                                       3         Tips for reaching the new Chinese consumer and turning                                                                        of Chinese travelers will visit multiple
                                                                                                                               2

                                                                                                                               74%
                                                                                                                                                                                               destinations on their next vacation, almost
                                                                 consumer insight into action to get the most from your
                                                                                                                                                                                               twice as many as the US, who prefer to
                                                                 programmatic investment in China
                                                                                                                                                                                               stay in one place.

                                                                                                                                                                                                5

                                                                                                                                                     of people are subscribed to at least
                                                                                                                                                     two streaming services...

                                                                                                                                                     ...their selection mostly driven by the
                                                                                                                                                     quality of recommendations for what
                                                                                                                                                                                               50%
                                                                                                                                                                                               of people intend to travel this year, but
                                                                                                                                                                                               the Chinese traveler likes to book their
                                                                                                                                                     they should watch next.
                                                                                                                                                                                               holidays last-minute, providing marketers
                                                                                                                                                                                               time to get in front of their audience
                                                                                                                                                                                               before they finalize their trip.

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CHINESE CONSUMER GET TO KNOW THE NEW - Inside the mind of the Chinese consumer
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                                    R BCUHYIENRE S E C O N S U M E R                                                                                                                                            T H E B ICO
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                                                                                Key stats                                           3                           Introduction                                                   7

                                                                           1.   Chinese shoppers                               G O TO S E C T I O N

                                                                                How Chinese shoppers compare to the rest of the world                                                                                          9

                                                                           2.   Online shopping festivals                                             G O TO S E C T I O N

                                                                                Shopping event spending in China will reach        12                           How do Chinese consumers like to shop?                        14
                                                                                new heights this year

                                                                                Spending on doubles day in 2020, by                13
                                                                                age group

                                                                           3.   Chinese travelers                             G O TO S E C T I O N

                                                                                What matters most for today’s                      19                           Home or away? Where Chinese travelers                          21
                                                                                Chinese traveler?                                                               prefer to go today

                                                                                More is better. Chinese prefer to visit            20                           Chinese consumers are last minute bookers                      22
                                                                                multiple destinations on their holidays

                                                                           4.   Chinese entertainment enthusiasts
CONTENTS

                                                                                                                                                                             G O TO S E C T I O N

                                                                                Chinese consumers are connected to the             25                           Age influences content preferences more                        28
                                                                                most streaming services                                                         than anything else

                                                                                What do Chinese consumers look for in a            27                           Movie theaters are the first port of call for                  29
                                                                                streaming service?                                                              many Chinese consumers

                                                                           5.   Reaching the new Chinese consumer                                                                  G O TO S E C T I O N

                                                                                Reaching the new Chinese consumer                  31                           About MiQ                                                      33

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CHINESE CONSUMER GET TO KNOW THE NEW - Inside the mind of the Chinese consumer
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                                    R BCUHYIENRE S E C O N S U M E R                                                                                            TIH
                                                                                                                                                                  NET RBO
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                                                                           Let’s talk about China, a country home to
                                                                           1.4 billion people, the world’s largest middle class
                                                                           and consumers who are fast-becoming global
                                                                           trend setters.

                                                                           We now live in a world, where       The desire from Chinese         up to date information for you
                                                                           it’s almost unthinkable for         consumers to shop, travel       to better understand the new
                                                                           global brands to set growth         and use streaming services      Chinese consumer.
                                                                           strategies without China            for their entertainment needs
                                                                           featuring front and center.         remains unchanged, but the      We’ll show you how online
                                                                                                               nature in which they do         shopping trends are
                                                                           However, like much of the           has changed.                    changing, considerations
                                                                           world, China felt the effects                                       for Chinese travelers ahead
                                                                           of the pandemic. China’s GDP        More people are online than     of their next trip and what’s
                                                                           growth rate contracted in the       ever before - one billion.      driving entertainment
                                                                           first quarter of 2020, the first    And retail sales now occur      preferences in China.
                                                                           ever negative figure since          more online than they do in
                                                                           economic reform in 1978.            brick and mortar stores. A      And most importantly, how
                                                                                                               transition made much sooner     you can reach consumers in
                                                                           But China has remained              than consumers elsewhere,       China through programmatic
                                                                           resilient, consumers at the         China in many regards are       to act on these trends.
                                                                           heart of the recovery. Retail       leaps ahead in their digital
                                                                           sales are already 9% higher in      transformation.                 Let’s jump in.
                                                                           the first half of this year, than
                                                                           they were in 2019. The future       That’s what this ebook is all
                                                                           looks bright, yet different...      about - giving you the most

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                                                                                      The pandemic may have                         during the year of lockdowns.       So, what kind of research is
                                                                                      started sooner in China,                      We found 55% of Chinese             taking place before shoppers
                                                                                      but the country came                          consumers moved their               ‘add to cart’? Most will
                                                                                      to a standstill much like                     shopping online, a much             consult at least 16 different
                                                                                      everywhere else in the world.                 faster rate compared to the         sources of information on
                                                                                      People had no choice but to                   global average of 40%.              brands and their pricing
                                                                                      adapt to the new normal, their                                                    over the course of three to
                                                                                      shopping behaviors changed,                   Chinese shoppers are                five hours per week. It’s well

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                                                                                      many of which remain                          spending more online, but           considered. These trends are
                                                                                      active today.                                 not haphazardly. 42% make           likely to continue with 84%
                                                                                                                                    sure to do their homework           of these lockdown behaviors
                                                                                      In our survey earlier this year,              prior to check out, whereas         remaining long-after
                                                                                      we asked consumers about                      less than 30% of consumers          the pandemic.
                                                                                      their shopping preferences                    in the US do this.

                                                                                      H O W C H I N E S E S H O P P E R S CO M PA R E TO T H E R E S T O F T H E W O R L D
                                                                                            CHINA                U N I T E D S TAT E S            G LO B A L                                                         Source: MiQ Sapio - July Study

                                                                                      P E R C E N TAG E O F R E S P O N D E N T S

                                                                                                                     EXPLORED ONLINE SHOPPING                       37%                    35%                 3 9%

                                                                                        D I D A L A R G E R P E R C E N TAG E O F O N L I N E S H O P P I N G             55%                           36%                      3 9%

                                                                                                          REDUCED NON ESSENTIAL PURCHASES                          35%                   34%                  3 7%
                  Chinese shoppers

                  How Chinese shoppers compare to the rest of the world       9                          REDUCED IMPULSE BUYING SHOPPING                           3 1%                 37%                   36%

                                                                                           C O M PA R E D S I M I L A R P R O D U C T S B E F O R E M A K I N G
                                                                                              A PURCHASE / DID RESEARCH ONLINE BEFORE                                42%                    29%               3 2%
                                                                                                                                 MAKING A PURCHASE

                                                                                               E X P L O R E D D I F F E R E N T B R A N D S C O M PA R E D T O
                                                                                                                    W H AT I W O U L D N O R M A L LY B U Y
                                                                                                                                                                  25%          22%            24 %

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                                                                                                                                   The holiday season; think        Last year, Alibaba reported
                                                                                                                                   Golden Week, Chinese New         $74 billion in sales, 26% up
                                                                                                                                   Year and Mid-Autumn Festival     compared to 2019. The longer
                                                                                                                                   are great opportunities for      sale period, and the festival
                                                                                                                                   marketers to reach consumers     now being recognized by                                                           O F C U S TO M E R S
                                                                                                                                                                                                                                                      G LO B A L LY A R E
                                                                                                                                   during peak shopping             more e-commerce businesses
                                                                                                                                                                                                                                                      R E A DY TO S P E N D
                                                                                                                                   periods, 28% of consumers        provides marketers with                                                           MORE THIS

                                                                                                                                   in China are ready to spend      many opportunities to reach                                                       H O L I DAY S E A S O N

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                                                                                                                                   more during these periods        consumers.
                                                                                                                                   than they did last year.
                                                                                                                                                                    And it’s important to note
                                                                                                                                   But it’s not only the holiday    that consumers in China
                                                                                                                                   season, online shopping          are motivated differently
                                                                                                                                   festivals turn heads in China.   by shopping events than
                                                                                                                                   They have become large-          global shoppers. While          L A S T Y E A R , A L I B A B A R E P O RT E D $ 74 B I L L I O N I N
                                                                                                                                   scale events, marked on          Singles Day is much larger in   S A L E S , 26% U P C O M PA R E D T O 2 019.

                                                                                                                                   the calendar of many             scale, comparable shopping
                                                                                                                                   Chinese consumers.               events such as Black Friday,
                                                                                                                                                                    Cyber Monday and Back                                                   Source: MiQ Sapio - July Study

                                                                                                                                   None come larger than            to School won’t have the
                                                                                                                                   Singles Day, also known as       same profound impact on
                                                                                                                                   Double 11. Started by Taobao,    consumers as they do
                                                                                                                                   Alibaba in 2009 they’ve          in China.
                                                                                                                                   moved from a one-day event
                                                                                                                                   to large-scale events over
                                                                                                                                   11 days.

                  Online shopping festivals

                  Shopping event spending in China will reach          12       How do Chinese consumers like to shop?   14
                  new heights this year

                  Spending on doubles day in 2020, by                  13
                  age group

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S H O P P I N G E V E N T S P E N D I N G I N C H I N A W I L L R E AC H N E W H E I G H T S T H I S Y E A R                                                              S P E N D I N G O N D O U B L E S DAY I N 2 O20, BY AG E G R O U P
       % INCREASED                            % DECREASED                    S TAY E D T H E S A M E                                     Source: MiQ Sapio - July Study        % INCREASED                  % D EC R E A S E D        S TAY E D T H E S A M E                                       Source: MiQ Sapio - July Study

P E R C E N TAG E O F CO N S U M E R S                                                                                                                                    P E R C E N TAG E O F CO N S U M E R S

                                                                                                                                                                                   1 8 -24 Y E A R S                        3 8%                                22%                            4 1%

                    GLOBAL                                 28%                                     3 4%                             37%

                                                                                                                                                                                   2 5 -3 4 Y E A R S                              5 1%                                          2 7%                           22%

                                                                                                                                                                                   35-44 YEARS                             37%                                          35%                               28 %

       U N I T E D S TAT E S                       20%                                   35%                                      45 %

                                                                                                                                                                                   4 5 -5 4 Y E A R S                    32%                                     36%                                  3 2%

                                                                                                                                                                                   55-64 YEARS                            36%                                         36%                                  29%

                      CHINA                                            42%                                     3 0%                           29%

                                                                                                                                                                                      65+ YEARS                    20%                               40%                                      4 0%

Looking ahead to this year’s                            equivalent shopping events,              year, presenting marketers the                                           items and high-end fashion                say that they’ll spend less in         Looking beyond Singles Day,
Singles Day, our research                               but to a much lesser extent.             most opportunity for growth.                                             apparel, contributing 56% of              2021 than they did in 2020.            to broader shopping trends
shows 42% of shoppers will                                                                                                                                                total spend in the                                                               in China. Our research shows
increase their spending this                            Customers are spending                   Younger generations,                                                     luxury category.                          Taking age into account                a clear preference for fashion,
year, with that figure rising                           more during the holidays and             aged, 18-24, will also show                                                                                        when marketing to Chinese              home improvement, luxury
further for parents with                                online shopping festivals but            considerable growth, with                                                Older generations, those over             consumers during the holiday           and books.
children. Consumers in the                              it varies by age. Those 25-34            38% likely to spend more than                                            65, tend to be more careful               and shopping festival season
US and around the world, will                           will increase their spend the            they did last year. Both these                                           with only 20% looking to                  will be an important factor in         China hasn’t always preferred
also increase their spend on                            most, jumping 51% year over              age groups like to buy luxury                                            increase their spending. 40%              your planning.                         online shopping but the

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CHINESE CONSUMER GET TO KNOW THE NEW - Inside the mind of the Chinese consumer
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pandemic has changed that.                      investment should follow.
Retail sales now happen more                    With so much research and
online, the first of any market                 consideration taken online
in the world to tip the scales in               prior to purchase, these
favor of online vs. offline. And                multiple digital touchpoints
it’s something that looks like it               provide marketers with a
will be sticking around for                     chance to reach consumers
the future.                                     before that final purchase
                                                decision. And it’s worth it,
                                                                                                   O N L I N E R E TA I L S A L E S A R E U P 18.5%
Chinese shoppers’ actions                       online retail sales are up 18.5%
                                                                                                          Y E A R OV E R Y E A R D U R I N G T H E
speak volumes - ‘we prefer to                   year over year during the first-
                                                                                                      F I R S T-T H R E E Q UA RT E R S O F 2021.
shop online’. So advertising                    three quarters of 2021.

H O W D O C H I N E S E CO N S U M E R S L I K E TO S H O P ?
      M O S T LY O N L I N E               M O S T LY O F F L I N E     MIX OF ONLINE + OFFLINE             N OT S U R E

P E R C E N TAG E O F CO N S U M E R S                                                                                         Source: MiQ Sapio - July Study

                         1 2%
                                                                                  21%                                         1 6%

                         29%
                                                                                                                              28%
                                                                                 3 0%

                         27 %
                                                                                                                              31%
                                                                                 3 0%

                         32%
                                                                                                                              25%
                                                                                 2 0%

                        CHINA                                              U N I T E D S TAT E S                            GLOBAL

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                                                                                                                                      There’s an age-old expression      in 2019, one-fifth of global        But what we found in our
                                                                                                                                      in China: it is better to travel   tourism expenditure and $120        report is that the love and
                                                                                                                                      ten thousand miles than to         billion more than international     desire for travel in China
                                                                                                                                      read ten thousand books.           US travelers. A remarkable          remains. No matter their
                                                                                                                                      Over the past couple of            amount when you consider            budget or their age, this
                                                                                                                                      decades Chinese travelers          less than 15% of China’s            remains intact. Although,
                                                                                                                                      have taken this saying             population traveled abroad in       what’s important to them
                                                                                                                                      quite literally.                   2019. They are undoubtedly          and their preferences have

                                                                            3
                                                                                                                                                                         the most lucrative travel           changed. That’s what
                                                                                                                                      At the turn of the millennium      audience in the world.              we’ve discovered.
                                                                                                                                      just 4.5 million traveled
                                                                                                                                      abroad, in 2019 that figure        However, with the onset             The biggest rebound from
                                                                                                                                      stood at 170 million. Not only     of the pandemic, travel             the pandemic has been in
                                                                                                                                      has the number of outbound         preferences quickly turned          leisure travel, this category
                                                                                                                                      travelers increased, so has        domestic. More Chinese              showing the strongest
                                                                                                                                      their spending. Chinese            travelers choose domestic           resurgence. Business travel is
                                                                                                                                      travelers now lead the way in      destinations now than they          taking a little longer to return
                                                                                                                                      the outbound travel market.        did in 2019. A silver lining on a   to normal levels, with China
                                                                                                                                                                         subdued outbound                    behind other countries like
                                                                                                                                      Chinese outbound tourists          travel market.                      the US.
                                                                                                                                      spent $277 billion overseas

                  Chinese travelers

                  What matters most for today’s                        19       Home or away? Where Chinese travelers       21
                  Chinese traveler?                                             prefer to go today

                  More is better. Chinese prefer to visit              20       Chinese consumers are last minute bookers   22
                  multiple destinations on their holidays

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                                                                            Although a staggering 70%                  important considerations prior
                                                                            of people are planning a                   to travel.
                                                                            domestic holiday in the next
                                                                            month, affluent audiences are              So how do travelers decide
                                                                            driving this forward. Chinese              where to go, where to                                                                    OF PEOPLE ARE
                                                                                                                                                                                                                PLANNING ON
                                                                            travelers are comfortable                  stay and what to do on
                                                                                                                                                                                                                A DOMESTIC
                                                                            booking non-refundable trips,              holiday? Our research tells                                                              H O L I DAY I N T H E

                                                                            determined to get away, but                us that word of mouth is the                                                             NEXT MONTH.

                                                                            they do take precautions. 59%              most important source of
                                                                            are paying attention to travel             information. 25% meanwhile
                                                                            advice and safety regulations,             turn to online reviews and
                                                                            much more than the global                  ratings, more than the global
                                                                            audience, with only 40%                    travel average.
                                                                            citing this as one of their most

                                                                            W H AT M AT T E R S M O S T F O R TO DAY ’ S C H I N E S E T R AV E L E R ?
                                                                                  U N I T E D S TAT E S           CHINA             G LO B A L

                                                                            T R AV E L E R S CO N C E R N S                                                                                                  Source: MiQ Sapio - July Study

                                                                                63%                                                                           59%
                                                                                                              5 1%
                                                                                                                                                                               40%
                                                                                                33%                                                                                                3 2%
                                                                                                                                              23%                                                               22%              25%

                                                                                   PRICE AND DISCOUNTS                                        S A F E T Y A N D G OV E R N M E N T                  AVA I L A B I L I T Y D U R I N G
                                                                                                                                                        RESTRICTIONS                                   C E R TA I N DAT E S

                                                                                                                                                               3 1%
                                                                                                              2 1%                               22%                                                            25%
                                                                                16 %                                                                                            20%
                                                                                                12 %                                                                                               9%                            14%

                                                                                  R E F U N DA B L E B O O K I N G S                      AC C E S S T O S P E C I F I C S E RV I C E S /             T R AV E L E R R E V I E W S
                                                                                                                                      A M E N I T I E S ( W I F I AVA I L A B I L I T Y, R O O M
                                                                                                                                        S E RV I C E , A I R P O RT T R A N S F E R , E TC )

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G E T TO K N O W T H E N E W C H I N E S E C O N S U M E R                                                                                                                                                                                                                                   TH
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M O R E I S B E T T E R . C H I N E S E P R E F E R TO V I S I T M U LT I P L E D E S T I N AT I O N S O N T H E I R H O L I DAY S                   H O M E O R AWAY ? W H E R E C H I N E S E T R AV E L E R S P R E F E R TO G O TO DAY
      U N I T E D S TAT E S              CHINA                G LO B A L                                                                                  DOMESTIC                 B OT H           I N T E R N AT I O N A L

P E R C E N TAG E O F CO N S U M E R S                                                                              Source: MiQ Sapio - July Study   P E R C E N TAG E O F CO N S U M E R S                                                                                      Source: MiQ Sapio - July Study

                                                                                                                                                                                              DOMESTIC                          B OT H                         I N T E R N AT I O N A L
                                                                                                                              59%
                                                                                                                                                                                                                                20%
                                                                                                                                                                                                                                                                        0%
         S TAY AT A S I N G L E P L AC E                                                    32%                                                                  65+ YEARS                     80 %

                                                                                                                   52%                                                                                                          23%
                                                                                                                                                                                                                                                                        5%
                                                                                                                                                              55-64 YEARS                       73%

                                                                                               3 4%
                                                                                                                                                                                                                                14 %                                    3%
             T R AV E L I N G B E T W E E N                                                                                                                   4 5 -5 4 Y E A R S                81%
             M U LT I P L E L O C AT I O N S
                                                                                                                                           66%

                                                                                                            43 %                                                                                                                20%
                                                                                                                                                                                                                                                                        6%
                                                                                                                                                              35-44 YEARS                       73%

                                                               7%
                                                                                                                                                                                                                                                                        5%
                                                                                                                                                              2 5 -3 4 Y E A R S               70%                              23%
                           UNDECIDED                     3%

                                                                                                                                                                                                                                                                        9%
                                                             5%                                                                                               1 8 -24 Y E A R S                63%                              25%

It’s notable that two-thirds of                 Chinese travelers, who like    safety still high on the agenda,                                      It’s expected that outbound              sense domestic travel has        of people agree. This will
Chinese travelers visit multiple                to stop-off at many places     most prefer to stay in hotels,                                        tourism will take more                   spiked. For now, marketers       however change imminently,
destinations on a single trip.                  and are comfortable with       it provides a better sense of                                         time to recover in China, a              should point their efforts in    and marketers will need to
Global travelers tend to visit                  traveling between locations.   security and health measures                                          preference that reflects the             this direction. At this time,    prepare well ahead of this, as
one place on their holiday,                     They enjoy exploring local     as compared to Airbnb.                                                current travel restrictions on           24% of global consumers are      20% of consumers said they’ll
this is far from true for the                   food and culture. And with                                                                           international movement. So               ready for international trips,   be actively seeking to travel
                                                                                                                                                     with few alternatives, it makes          although in China only 5%        abroad again in 2022.

                                                                                                                                              20                                                                                                                                                                 21
G E T TO K N O W T H E N E W C H I N E S E C O N S U M E R                                                                                                                                                TH
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C H I N E S E CO N S U M E R S A R E L A S T M I N U T E B O O K E R S
      Y E S , I H AV E P L A N N E D B U T N OT B O O K E D           Y E S , I H AV E P L A N N E D A N D B O O K E D

      N O, I H AV E N OT Y E T P L A N N E D O R B O O K E D

P E R C E N TAG E O F CO N S U M E R S                                                                                                Source: MiQ Sapio - July Study
                                                                                                                                                                       The big question for global
                                                                                                                                                                       brands looking to reach
                                                                                                                          3 6%
                                                                                                                                                                       Chinese consumers is how
                 GLOBAL                                                                                                        38%
                                                                                                                                                                       they reach them before
                                                                                                  2 6%                                                                 itineraries are set in stone.

                                                                                          23%

      U N I T E D S TAT E S                                                                                                          42 %

                                                                                                                         35%

                                                                                                                                                       50%

                   CHINA                                                                                                 35%

                                                                        1 6%

The biggest question we’re                      Our report shows us that half         common in China than other
often asked from marketers                      of travelers who intend to            places, for instance, less than
is when should I be reaching                    travel in the next six months         a quarter of people in the US
the Chinese traveler? How                       are yet to book their trip,           follow the same behaviors as
long before travel decisions                    leaving plenty of room                Chinese travelers.
are set in stone, and how                       for marketers to influence
much time is spent planning                     Chinese travelers ahead of
and researching before their                    their booking decision. Last-
trips are booked?                               minute booking is much more

                                                                                                                                                                 22                                                           23
G E T TO K N O W T H E N E W C H I N E S E C O N S U M E R                                                                                                                                                                                                                    TH
                                                                                                                                                                                                                                            C H I N E S E E N T E RTA I N M E N T EE N
                                                                                                                                                                                                                                                                                     B TI G
                                                                                                                                                                                                                                                                                          HUTR
                                                                                                                                                                                                                                                                                             S IEANSDT S

                                                                                                                                The Chinese love                              of people in China are           More than two-thirds of
                                                                                                                                entertainment. Whether                        accessing two or more online     subscribers have already
                                                                                                                                it comes from TV, movies,                     streaming services, spending     made the decision to renew
                                                                                                                                their mobile devices or                       on average $15 a month           their plans in the coming year.
                                                                                                                                other mediums, we know                        on subscriptions, a figure       Online streaming is not
                                                                                                                                that their screens are always                 much higher than the global      going anywhere.
                                                                                                                                on, always glowing. 74%                       average.

                                                                  4
                                                                                                                                C H I N E S E CO N S U M E R S A R E CO N N E C T E D TO T H E M O S T S T R E A M I N G S E RV I C E S
                                                                                                                                      U N I T E D S TAT E S            CHINA              G LO B A L

                                                                                                                                N U M B E R O F S T R E A M I N G S E RV I C E S                                                                                  Source: MiQ Sapio - July Study

                                                                                                                                               ONE                                 TWO                      THREE             MORE THAN THREE                               NONE

                                                                                                                                              16 %                                 2 1%                      17 %                    2 0%                                    26 %

                                                                                                                                              13 %                                 34%                      20%                      2 1%                                    13 %
                Chinese entertainment enthusiasts

                Chinese consumers are connected to the       25       Age influences content preferences more         28
                most streaming services                               than anything else

                What do Chinese consumers look for in a      27       Movie theaters are the first port of call for   29
                streaming service?                                    many Chinese consumers
                                                                                                                                              2 1%                                 27%                       17 %                    14 %                                    21%

                                                                                                                           24                                                                                                                                                                       25
G E T TO K N O W T H E N E W C H I N E S E C O N S U M E R                                                                                                                                                              C H I N E S E E N T E RTA ITNHME EBNI G
                                                                                                                                                                                                                                                              T JTURNE K
                                                                                                                                                                                                                                                                       NID
                                                                                                                                                                                                                                                                         ES

Choice is a big deal with                       consumers in China rely on       a study looking at the future          W H AT D O C H I N E S E CO N S U M E R S LO O K F O R I N A S T R E A M I N G S E RV I C E ?
Chinese consumers. 49% of                       recommendation systems           of international consumers                  U N I T E D S TAT E S          CHINA     G LO B A L                                                      Source: MiQ Sapio - July Study
Chinese consumers prefer                        to help them pick their          and found that 35% of
subscriptions that give them                    next show compared to            Chinese audiences weren’t              P E R C E N TAG E O F CO N S U M E R S

flexibility to choose their                     only 19% in the US. They’re      comfortable with sharing their
                                                                                                                                                                    UNITED STATES                  CHINA                                GLO BAL
content and pricing plans,                      happy being guided by            television viewing data. This
compared to less than 35% of                    their previous watches and       has turned on its head, thanks
consumers globally. Choice                      algorithms to inform what to     to digital acceleration Chinese          FLEXIBLE PRICING OPTIONS

also means making decisions                     watch next.                      entertainment viewers
                                                                                                                        (I.E THE ABILITY TO PAY ON A                       44%                      47%                                    4 5%
                                                                                                                          MONTHLY OR YEARLY BASIS)
and Chinese audiences like                                                       are actively looking for
a helping hand to find their                    Although this wasn’t always      recommendations to shape
next go-to show. 39% of                         the case. In 2019, we released   their next move.

                                                                                                                            AVAILABILITY OF SPECIFIC
                                                                                                                              CONTENT THAT MAY BE
                                                                                                                              EXCLUSIVE TO SPECIFIC
                                                                                                                                                                           42%                      42%                                    4 1%
                                                                                                                                STREAMING SERVICES

                                                                                                                                     ORIGINAL CONTENT                      32%                      36%                                    3 7%

                                                                                                                         CUSTOMIZABLE CONTENT (I.E
                                                                                                                         THE AB ILITY TO CHOOSE AND
                                                                                                                             ONLY PAY FOR THE CHAN                         32%                      49%                                    34%
                                                                                                                          NELS / CONTENT YOU WANT
                                                                                                                                           TO WATCH)

                                                                                                                                  RECOMMENDATION
                                                                                                                                  SYSTEMS (CONTENT
                                                                                                                              SUGGESTIONS BASED ON
                                                                                                                                                                    19 %                            39%                                    24%
                                                                                                                                  YOUR PREFERENCES)

                                                                                                                                    SEASONAL CONTENT
                                                                                                                                          (SPOR TS E VENTS)
                                                                                                                                                                    13 %                            25%                         16 %

                                                                                                                                                      OTHER         7%                              0%                           4%

                                                                                                                   26                                                                                                                                                  27
G E T TO K N O W T H E N E W C H I N E S E C O N S U M E R                                                                                                                                                                                                                                                                                            C H I N E S E E N T E RTA ITNHME EBNI G
                                                                                                                                                                                                                                                                                                                                                                                                T JTURNE K
                                                                                                                                                                                                                                                                                                                                                                                                         NID
                                                                                                                                                                                                                                                                                                                                                                                                           ES

    As with many of the online                                             the ability to chop and              streaming services. This is                                                               in China show light at the                                                      to 60% among Chinese             has increased and is here to
    shopping and traveler                                                  change their plans based on          good news for marketers.                                                                  end of the tunnel. Chinese                                                      consumers. They are choosing     stay, but consumers in China
    trends we’ve discovered,                                               their custom content needs                                                                                                     consumers are prepared to                                                       to dine-out afterwards. 52%      are looking to a future of
    age plays its part in China’s                                          are their preferences.               The pandemic has certainly                                                                step away from their screens                                                    meanwhile are ready to visit     entertainment happening
    entertainment viewing habits.                                                                               motivated many to turn to                                                                 at home, and go to the                                                          adventure or water parks and     outside their homes.
    Older generations are less                                             There are certainly more             online entertaining viewing,                                                              movies, watch sporting                                                          40% want to support their
    motivated by flexible pricing                                          younger generations using            since there weren’t many                                                                  events or travel to music                                                       team at sporting events.
    when choosing their online                                             online streaming services. But       other alternatives. But that’s                                                            concerts, all now providing
    streaming services, more                                               we see the older generations         not the only way people in                                                                viable alternatives.                                                            Only 8% of people we
    devoted to the availability of                                         that are driving the growth          China now look to get their                                                                                                                                               surveyed in China don’t plan
    accessing content that meets                                           curve, they’re the ones              entertainment fix.                                                                        Just 44% of people globally                                                     to go out in the coming
    their specific needs. It’s the                                         switching to OTT mediums                                                                                                       are ready to settle in and                                                      months for their entertainment
    opposite for the younger                                               of entertainment and                 The easing of lockdown                                                                    watch a movie in the theaters                                                   needs. There’s no doubt
    generations. Flexible pricing,                                         getting connected to online          measures and restrictions                                                                 again, but that number rises                                                    that online entertainment

    AG E I N F LU E N C E S CO N T E N T P R E F E R E N C E S M O R E T H A N A N Y T H I N G E L S E                                                                                                   M OV I E T H E AT E R S A R E T H E F I R S T P O RT O F C A L L F O R M A N Y C H I N E S E CO N S U M E R S

                                   1 8 -24 Y E A R S            25 -34 Y E A R S         35 - 4 4 Y E A R S          4 5 -5 4 Y E A R S         55 -6 4 Y E A R S       6 5+ Y E A R S                                                       U N I T E D S TAT E S                CHINA              G LO B A L                                                         Source: MiQ Sapio - July Study

    P E R C E N TAG E O F CO N S U M E R S                                                                                                                           Source: MiQ Sapio - July Study      P E R C E N TAG E O F CO N S U M E R S
                                                                                                                                                                                                                                                                                                U N I T E D S TAT E S                   CHINA                                   G LO B A L

                                    C U S TO M I Z A B L E C O N T E N T     34%               57%                     5 4%                46%              27%     2 0%                                                                                  M OV I E T H E AT E R S                     40%                               6 1%                                      44%

                                                                                                                                                                                                                                                     A DV E N T U R E PA R K S /
                                              FLEXIBLE PRICING                                                                                                                                                                                                                                        29%                               52%                                       3 2%
                                                      OPTIONS
                                                                             34%              53 %                  49 %                  44%              45 %            40%                                                                               WAT E R PA R K S

                                                                                                                                                                                                      E N T E RT I A N M E N T V E N U E S
                                                                                                                                                                                                                                                          MUSIC CONCERTS                              2 8%                              29%                                       25%
CO N T E N T P R E F E R E N C E

                                               AVA I L A B I L I T Y O F
                                             SPECIFIC CONTENT
                                                                             31%          43%                 44%                 46%                48 %                    80 %
                                                                                                                                                                                                                                                        SPORTING EVENTS
                                                                                                                                                                                                                                                           ( S TA D I U M S O R L I V E               22%                               40%                                       24%
                                                                                                                                                                                                                                              S T R E A M I N G AT S P O RT S B A R S )
                                            R E C O M M E N DAT I O N
                                                           S YS T E M S
                                                                              39 %           37%              42 %              35%             46%                 60%                                                                             C U LT U R A L PA R A D E S /
                                                                                                                                                                                                                                                   C O N V E N T I O N S (CO M I C
                                                                                                                                                                                                                                                           - CO N S , E 3 G A M I N G
                                                                                                                                                                                                                                                                                                      16 %                              20%                                       17%
                                                                                                                                                                                                                                                           CO N V E N T I O N , E TC )

                                           ORIGINAL CONTENT                    44%            32%             35%            38%           32%         2 0%
                                                                                                                                                                                                                                                         GAMING ARCADES                               13 %                              3 8%                                      17%

                                                                                                                                                                                                                                                          I DON’T PLAN TO
                                           SEASONAL CONTENT                19% 2 6%          24%          25%        3 4%         2 0%                                                                                                                        VISIT OFFLINE                           33%                                8%                                       26 %
                                                                                                                                                                                                                                              E N T E R TA I N M E N T V E N U E S

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G E T TO K N O W T H E N E W C H I N E S E C O N S U M E R                                                                                                                                      R E AC H I N G T H E N E W C H I NTEHSEE BCO
                                                                                                                                                                                                                                           I G NTSRUE M
                                                                                                                                                                                                                                                      NDE RS

                                                                                        Reaching the new Chinese consumer

                                                                                        Reaching the new Chinese            marketing effectiveness
                                                                                        consumers presents                  in China.
                                                                                        global brands with an
                                                                                        unprecedented growth                Whether you’re looking
                                                                                        opportunity, and marketers          to scale in China with

                                                                  5
                                                                                        are increasingly turning to         programmatic for the first
                                                                                        programmatic to reach them.         time, action the insights
                                                                                                                            from our report or seeking
                                                                                        With 1.4 billion people, the        a fresh approach in the
                                                                                        world’s largest middle class        market, here are some of our
                                                                                        and consumers who are               top programmatic tips for
                                                                                        fast-becoming global trend          reaching the new
                                                                                        setters, programmatic brings        Chinese consumer.
                                                                                        precision at scale essential for

                                                                                                                                                     It’s clear that Chinese consumers are diverse and different from those around the

                                                                                        1
                                                                                                                                                     world. Choose a partner that can help you curate audiences to meet your exact
                                                                                                   AU D I E N C E TA R G E T I N G I S               targeting needs. One that sources audience data from China’s most popular apps,
                                                                                                   A L L- I M P O RTA N T                            and has that data integrated with China’s leading DSPs to fuel your programmatic
                                                                                                                                                     targeting. With consumer trends rapidly changing, it’s important for you to target
                                                                                                                                                     the right audience.

                                                                                                                                                     Chinese consumers are now online, more than ever before. In 2020, 76% of total
                                                                                                                                                     ad spend in China was digital, more than any other market in the world. And
                                                                                                   B E D I G I TA L , B E                            digital is synonymous with mobile. At MiQ, mobile in-app ad formats, across
                Reaching the new Chinese consumer                                                  MOBILE FIRST                                      display, video and native represent more than 90% of the vast daily bidding
                                                                                                                                                     opportunities we see through our Chinese platforms. To reach your audience it’s
                                                                                                                                                     important to do so on their terms, on their online devices of choice.
                Reaching the new Chinese consumer            31   About MiQ   33

                                                                                                                                                     Technology giants Google, Amazon, Facebook that we’ve become accustomed to
                                                                                                                                                     using to reach our target audiences in the West aren’t prominent in China, instead

                                                                                        3
                                                                                                                                                     replaced with local players, engineered to meet China’s exact specifications. For
                                                                                                   LO C A L W O R K S B E T T E R
                                                                                                                                                     unfiltered access to the best inventory, data, ad verification and measurement
                                                                                                   T H A N G LO B A L
                                                                                                                                                     solutions in China, and by default the new Chinese consumer, ensure you have
                                                                                                                                                     local partnerships at the heart of your programmatic activation. This way you’ll be
                                                                                                                                                     close to the ground even if you’re far away.

                                                                                   30                                                                                                                                                                   31
G E T TO K N O W T H E N E W C H I N E S E C O N S U M E R                                                                                                                                                             R E AC H I N G T H E N E W C H I NTEHSEE BCO
                                                                                                                                                                                                                                                                  I G NTSRUE M
                                                                                                                                                                                                                                                                             NDE RS

                                                             Success measurement in China is different from the West, with 27% of global
                M E A S U R E Q UA L I T Y, N OT             marketers citing measurement inconsistency as their top concern in China. Look
                O N LY Q UA N T I T Y                        to partners that go-beyond, to translate your business goals into authentic
                                                             programmatic results and insights to better inform future strategy.

                                                             61% of global marketers who make decisions about their programmatic

5
                                                             investment in China identify a lack of local market knowledge as a major
                WORK WITH A TRUSTED                          roadblock. 52%, meanwhile, are worried about their reputation if they get it
                PA RT N E R                                  wrong. China is different but it doesn’t have to be that different. Working with a
                                                             partner that understands China’s programmatic ecosystem and your marketing
                                                             objectives in equal measure is important, and that’s the partner we aspire to be.

                                                                                                                                                        ABOUT MiQ

We know reaching consumers in China can be hard.                                                                                                       We’re MiQ, a programmatic media partner for marketers
                                                                                                                                                       and agencies. We connect data from multiple sources to
And we know programmatic success in China doesn’t come
                                                                                                                                                       do interesting, exciting, business-problem-solving things
overnight, it’s a journey. We’ve spent more than three years                                                                                           for our clients. We’re experts in data science, analytics and
in the market and are still learning its intricacies. But we’re                                                                                        programmatic trading, and we’re always ready to react and
                                                                                                                                                       solve challenges quickly, to make sure you’re always spending
passionate for what the future holds, to help marketers                                                                                                your media investments on the right things in the right places.
turn China’s huge growth opportunity into huge
                                                                                                                                                       Please visit us wearemiq.com
programmatic addressability.

Discover how we can help you connect with one of the
largest markets in the world from anywhere in the world.

Get in touch.

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