The Ultimate Guide To China's Mobile Market 2018 - Appcoach
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The Ultimate Guide To
China’s Mobile Market
2018
01 Content
1. Introduction
2. China’s demographic
3. China’s mobile device market
4. Mobile user behavior
5. Mobile App market
6. E-commerce market overview
7. Mobile commerce
8. Cross-border e-commerce in China
9. Mobile game market overview
10. Mobile Game Apps
11. Social media network
12. Wechat mini-programs
13. TOUTIAO
14. Mobile advertising market
15. Short video market
16. Tik Tok ( Douyin )
17. Live streaming video
02 Introduction
With the increasing popularity of mobile smartphone usage in China, mobile Internet market has
developed rapidly. The majority of China’s Internet users use a smartphone as their primary means
of going online. Mobile Internet users have became the main consumer group of Internet industry.
China is the top country in consumer App spending. China’s games market is enormous, accounting
for more than one-quarter of all global game revenue.
Short video starting to dominate Chinese screen. Now the short video and livestream platform are
cooperating with e-commerce. Most of the them have a cart button that directs viewers straight to
the shopping page.
03 China’s Demographic
POPULATION Internet USERS MOBILE USERS
1,412 million 751 million 1,119 million
18.54% of the world population. 55.8% of China population 97.5% of China’s users
52.6% male and 47.4% female. Beijing, Shanghai, and Guangdong access the Internet through phones.
26.7% in rural areas and 73.3% in urban areas. have the highest Internet penetration rates
of over 74%.
China’s mobile Internet users can be
characterized as young, predominantly
with a lower-to-medium level income and
education.
04 China’s Mobile Device Market
Devices used to access the Internet
by users in china
Mobile phone • 7 out of 10 online purchases in China
97.5% are now made on mobile devices.
Desktop PC
• Smartphone users in China accounted
53%
for 59.3% of all mobile phone users in
2018.
Internet Laptop
35.8%
• Adults in China spend 2 hours and 39
Tablet minutes a day on mobile devices in 2018.
27.3%
TV
28.0%
05 China’s Mobile Device Market（Cont.）
• The Chinese companies have long left the cheap segment and are producing more and more high-end smartphones.
• China is the #1 Android market with 731 million active smartphones.
• The top 5 brands (Huawei , Oppo , Vivo , Apple , Xiaomi) captured a record 83% of the China smartphone market .
• The top 5 Chinese brands (Oppo , Huawei , Xiaomi , Vivo ,and Lenovo) account for 40.1% of all Android smartphones in use
globally.
• Huawei continues to lead the Chinese smartphone market with 26% market share followed by Oppo and vivo with 19% and 18%
share respectively.
Share of active devices per operating system China Smartphone Market Share: By quarter
（July 2018）
23%
Ios
Android
77%
06 Mobile User Behavior
Users under 15 years used Apps that help with homework and so did users between the ages of 36 to 45, their parents. Those in
the 16 to 25 age bracket preferred playing mobile games such as honor of kings.
The average mobile Internet user spent 4.2 hours on Apps each day.
Shopping
about 11 minutes
Watching Video
close to 30 minutes
Getting News And Information
Social Network Apps about 12 minutes
more than 2.5 hours
Playing Games
about 10 minutes
07 Mobile App Market
China already stands above the rest of the world in terms of both downloads and consumer spending, it will continue to
be a dominant force in the global App economy.
Top countries by downloads （billion）in 2017
China India USA Brazil Russia
Top countries by spend （billions）in 2017
China USA Japan South Korea Germany
$1 out of every $4 dollars generated from the App stores, in-App ads and mobile commerce is generated by the Chinese market.
08 Mobile App Market
• On average, a Chinese mobile netizen installed 42 Apps in Q1 2018. Chinese mobile netizen on average installed 6.6 Apps and
uninstalled 5 Apps every month.
• Mobile gaming Apps took the largest share of 79% in revenue.
• Consumers in China spend the majority of their in-App time in chat Apps.
• Tik Tok topped the ranking of most downloaded Apps on iOS store in China in March 2018. E-commerce App Pinduoduo moved
up 12 places to the fifth. WeChat led the ranking of top 20 mobile Apps in China.
Top 10 App categories in china by coverage & active use (Android)
Communication Video Music Games Ecommerce Finance Photography News Education
09 E-commerce Market Overview
With a market volume of US$636,087M in 2018, most revenue is generated in China.
The market's largest segment is Fashion with a market volume of US$246,877m in 2018.
$636,089M
Revenue in the “ecommerce"
1,119M segment .
Number of users
$634.31
Average revenue per user
72.3%
user penetration
12.4%
Revenue annual growth rate (CAGR
2018-2022)
a share of 33.5% of users is 25-34 years old.
Behavior-based analysis leads to personalization and data driven optimization,
ecommerce initiatives will target much more specifically.10 M-commerce
• Mobile will reach 70% of e-commerce traffic by the end of 2018.
• China has the highest number of iOS shopping Apps at over 32,000, followed by the US and the UK.
• 52% of Chinese consumers use their mobile shopping Apps on a weekly or daily basis, as compared to 14% of consumers
globally.
• In the west, it’s more common to use an e-commerce site as the final stop when completing their transaction, whereas in China,
e-commerce sites are destinations where you can make new discoveries, acquire information, and socialize with your peers.11 M-commerce
• Wechat is the best channel for operating Internet-based products. Pinduoduo was popularized through incentivized group
purchases at low prices with Wechat friends through social interactions on the Wechat feed named Wechat moments.
• Taobao says the live platform has a conversion rate of 32%. In Alibaba’s singles’ day festival, the platform say as many as 3 billion
views. For certain stores, as many as 90% of sales come from the livestreaming platform.
• Little Red Book has infinite scrollable content generated by users, who offer product reviews, styling tips, pricing tips, and so on.
The App targets Chinese women aged 18-35, and makes everyone involved both a consumer and an influencer.
• Average order on Pinduoduo is 6 USD, against 30 USD on Taobao/Tmall and 60 USD on JD.com12 Cross-border E-commerce In China
Why Chinese likes cross-border shopping
To access higher quality, trusted products • Cross-border shoppers
make frequent purchases between
300 RMB and 1,000 RMB.
• While the traditional e-commerce
To lower the risk of counterfeits
market is heavily dominated by
Alibaba (with about 60-70% market
share), cross-border e-commerce is
Fashion is the top category bought from overseas retailers.
much more fragmented with no
player getting more than 25% of the
total market.
Fashion Beauty & Cosmetics Mom & Baby13 Cross-border E-commerce In China
Female cross-border shoppers spend much more than male shoppers.
Women spending $976 on average per year, which is 20% more than men in cross-border shopping.
Women seek Chinese language customer support
Men seek fast delivery
and relevant content on the supplier's website
Japan is the overseas origin country that Chinese online shoppers have most confidence in.
Japan South Korea USA Australia France Germany UK14 Cross-border E-commerce In China
Cross-border E-commerce Key Players (retailers) 2017 Q4 In China15 Mobile Game Market Overview
$16,253M
Revenue in the "mobile games"
582M segment .
Number of mobile gamers
$38.49
Average revenue per user
30.4%
User penetration
8.5%
Revenue annual growth rate (CAGR
2018-2022)
With A market volume of $16,253M , most revenue is generated in China.
China US Japan South Korea UK16 Mobile Game Apps
• Mobile game market in China is dominated by Internet giants like Tencent, and Netease.
• Tencent also tapped into social elements that helped make mobile games particularly sticky. In China, the game utilizes
ubiquitous chat services like QQ and Wechat so players can invite friends, see who is online, or discuss in-game
strategies.
Top five genres of Chinese mobile games going overseas
By market share
Action RPG Strategy Casual Education
Action, RPG, and Strategy are the three most popular genres,
which, in total, account for 44% of Chinese games in the overseas market.17 Social Media Network
Social network Users
China is the world's largest social network market
Share of Chinese population who are using social networks：43.07%
Share of mobile users of social networks in China：61.6%
Share of students among social network users in China：37.5%
Share of Chinese Internet users who write or follow microblogs：88.1%
616.5 million18 Social Media Network
Satisfactory ratings for social media sub-categories （0-100 scale）
Overall score: 79.8
Life service Social with Social within Social within Dating social
WeChat Messenger Apps Weibo BBS Video
App/sites E-commerce news Apps /Live Stream networks
Despite Facebook being banned in the country,
local social networking sites such as, Tencent & Weibo, have been attracting users nevertheless.19 Wechat Mini-programs
Ecommerce mini-programs industry
• By 2018 Q2, developers published 1000,000 mini programs. distribution
fresh fruit &
domestic other
• The number of mini program users has reached 280 million. appliances 10%
vegetables
18%
• 95% of e-commerce firms in China have created mini electronic and digital3%
devices
6%
programs to provide users the convenience of shopping within
WeChat education and
training
• only 56% of WeChat users currently use mini programs for 6%
over 10 mins a day when the daily average time spent on
WeChat is 66 minutes. transportation clothes and
14% shoes
• Only 2.1% of mini programs also have a native App.
29%
living goods
14%
How many times do users 87% of users spend more than 200 RMB
open mini-programs in a week？ per month via mini-programs
1-3 times 4-6 times
Under once a week Once a week 7-10 times pe day Under ￥200 ￥201-500 ￥501-1,000 ￥1,001-1,500 Above ￥1,500
per day per day20 TOUTIAO
• Toutiao claims to have 200 million daily active users.
• Unlike Wechat and Weibo users, content consumption is the
principal focus of Toutiao users.
• The firm does not have any original writers. It uses AI
technology to organize daily news from partners and gives
recommendations on their homepage. All the featured articles and
videos are selected for each user according to their locations, click
and browser history, and even phone models.
40%
60%
Toutiao users spend 74 mins in the App every day.
a share of 85% of users is 18-30 years old.21 Mobile Advertising Market
Top 5 Countries Spending On Mobile Ads ( In Billions)
USA China UK Japan Germany
Internet advertising overtook advertising on traditional television to become the world’s biggest advertising medium,
accounting for 37.6% of total ad expenditure.
Mobile ads will make up 80% of all Internet ad spend in China by 2019.
Alibaba Tencent
72%
The fast growth of mobile advertising spend in China of total
mobile ad spend
is mainly driven by Baidu, Alibaba, and Tencent
Baidu22 Short Video Market
Share Of Short Video Apps Short video Users
The penetration rate of App which allows users to
Time Spent
livestream or share short-form videos almost doubled
compared with 2016, and the daily user rate is now higher
than the major video-streaming websites.
410 million
Daily active mobile short video App users in China,
By platform, Dec 2017 & Mar 2018
Millions Daily Time Spent Per User
Of Short Video Apps
Dec 2017 Mar 2018
Kuaishou 102.5 107.7
Douyin 17.4 45.6
Huoshan 22.8 41.6
Xigua Video 24.0 38.6
Kuai Shipin 2.7 6.2
Meipai 4.2 4.0
Dec 2017 Dec 201823 Short Video Market
Both male and female short video App users are most tolerant toward those that feature creative and interesting content,
while they are least interested in ads that feature "traditional" celebrities.
Leading social media marketing tactics in China (2017 & 2018)
% of respondents
100
50
0
Internet celebrities Social ecommerce Short video
and key opinion leaders &
Live streaming
2017 201824 Tik Tok ( Douyin )
Daily active user
Designed for the new generation of creators, Tik Tok, the
popular short-video social platform, allows users to quickly and
easily create short videos to share with friends and the world.
60% 150 million
40% Tik Tok is the market leader in Thailand, Japan,
the Philippines, Malaysia, Vietnam and Cambodia.
( App name of Tik Tok in China market ).
Top downloads from App store (Q1 2018)
Tik Tok YouTube WhatsApp Instagram Facebook WeChat
Tik Tok has become the world most downloaded non-game App
in the ios App store for the first quarter of 2018.25 Live Streaming Video
• The most popular show categories are real-life live streaming, game live streaming.
• By 2018 the estimated number of video game streaming users in China will reach 300 million.
• The latest trend is live-streaming on the main Chinese e-commerce platforms, such as Taobao, Tmall and JD. Most of
the live-streams have a cart button that directs viewers straight to the shopping page.
• Starbucks opened a premium store in Shanghai and they live-streamed the grand opening on Taobao. They got almost
180,000 viewers during the 3-hour-long broadcast.
Chinese Livestreaming App Rankings
Weekly active users/ Weekly visits
Platform
All the weekly active users Per person
Huya Zhibo 0.60% 38.7
YY 0.52% 42.3
Douyu 0.47% 41.3
Qi E 0.38% 35.4
ChuShou 0.25% 39.4
Panda TV 0.19% 31.626 Data Resources & References
The report is based on authoritative data, which has been integrated by Appcoach
from the following third-party platforms:
App annie
Azoya international
Cheetah Data
China Internet watch
Daxueconsulting
Emarketer
iResearch
Kantar100EC
NEWZOO
Questmobile
Statista
WeChat conference 2018About Appcoach Founded in Shanghai with 5 offices globally. Appcoach is a technology-enabled, global mobile performance agency with local marketing insights. Appcoach activates global mobile user acquisition strategies using local marketing initiatives across search & display networks, social media, creative localization and traditional media buying. Appcoach patented technology products Ultron, enable advertisers develop their presence at scale and publishers monetize their traffic effectively in global markets. Appcoach is a certified Google Premier Partner and is listed in LUMA Partners Mobile LUMAscape 2017.
Global Mobile Performance Marketing Agency
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