China Search covers Search Marketing in China.

29
Fast Fashion Approaching China

description

This is a dive into Search Marketing for Fashion brands in China.

Transcript of China Search covers Search Marketing in China.

Page 1: China Search covers Search Marketing in China.

Fast Fashion Approaching

China

Page 2: China Search covers Search Marketing in China.

Who are Baidu; Baidu are China’s largest search engine, and the 5th largest website in the world.

Through their various properties they touch 100% of China’s online population monthly

We are an international partner to Baidu, working with international brands to

increase their presence in China through Baidu’s various marketing channels

Who are we;

Page 3: China Search covers Search Marketing in China.

An Overview of China

The Economy, the Internet and Consumers

Page 4: China Search covers Search Marketing in China.

China’s Market PositionThe middle classes are expanding beyond the largest cities more rapidly & in greater numbers than any market has ever witnessed. The number of Middle and Affluent Consumer HOUSEHOLDS in China will be the same as the US by 2020

1

13

34

61

57

36

12

53

69

66

39

23

Household annual disposable income(USD) thousands

Upper affluent >200Lower affluent $16 - $31.5Middle Class $9.5 - $16Emerging Middle $6 - $9.5Aspirant $4 - $6Poor <$4

Households MillionsHouseholds Millions

Source BGS Consultants

Urban household disposable income 2020Urban household disposable income 2010

Page 5: China Search covers Search Marketing in China.

MACMiddle & Affluent Consumers

is MAC Households in China

2005 = 11,000,000

2011 = 50,000,000

2020 = 140,000,000*

*That’s around the same number, if not more as this classification in the USA

Source BCG

Page 6: China Search covers Search Marketing in China.

China’s Online Population

China already has the largest online population in the world at 618 million users. Astonishingly that’s only 46% of their population, so their capacity for growth is enormous

China USA India Japan Brazil UK Australia0

100

200

300

400

500

600

700

618

245

121101

7953

2045.7

79

10.2

80

39

84 89

Online Population MMs

% of Population online

Source: China Internet Network Information Center

Page 7: China Search covers Search Marketing in China.

China’s Online PopulationInteresting Comparison Of China’s Online Population

China

USAUKAustralia

= 50 million online users

Source: China Internet Network Information Center

Page 8: China Search covers Search Marketing in China.

• As of end 2013, there were 618 million internet users in China – the world’s biggest internet user population. The internet penetration rate has now reached 45.7%.

• There are slightly more male internet users in China (55.9%) than female (44.1%).

• While nearly three quarters (73.4%) of China’s internet users are going online via their PCs, more than two thirds (69.3%) also do so from their mobile devices.

• China’s students represent 30.2% of China’s online population.

• The rural areas of China account for 26.5% of the total internet population, or 156 million internet users.

• China’s online community is expected to exceed 700 million by 2016.

• As a guide, in recent years, China’s internet population has grown by approximately 10 million people monthly (equivalent to half the population of Australia).

China’s Digital Demographics

China’s Digital Credentials

1,351,000,000

51% Urban

Total Population

Urban vs. Rural

618,000,000

45.7%

Internet Users

Internet Penetration

1,198,500

88.7%

Mobile Subscribers

Mobile Penetration

798,200,000

59.1%

Tencent QQ Users

Social Network Penetration

Source: US Census, CNNIC, Tencent, Mobithinking

Page 9: China Search covers Search Marketing in China.

China’s Online User Behavior

Activities Online

9Source: Nielsen, GlobalWebIndex Wave 6

Search Engines

80%Watched Video

72%

Listened to Music

77%Instant Messenger

67%

Uploaded Photos

60%

Activities Performed Online % of Users

REVIEWED A PRODUCT OR BRAND ONLINE 74.58

USED WEBMAIL 74.08

WATCHED A VIDEO CLIP 71.64

USED INTERNET BANKING 71.29

PURCHASED A PRODUCT ONLINE 70.79

USED INSTANT MESSENGER 67.2

UPLOADED PHOTOS ONLINE 60.47

USED ONLINE OFFICE APPLICATIONS 59.62

POST COMMENT ON FORUM / BBS 55.63

MANAGE YOUR SOCIAL NETWORK PROFILE 54.04

LEFT A COMMENT ON A STORY ON A WEBSITE 53.39

USED A MICRO BLOGGING SERVICE 52.04

BGHT PROD/SERV THROUGH GROUP BUYING SITE 49.55

Page 10: China Search covers Search Marketing in China.

China’s E-commerce

What Drives Consumers Activity

Source: GlobalWebIndex Wave 6, Bain, CNNIC

• China surpassed the USA as the largest e-commerce market globally in 2013 at a market size of USD $265 billion.

• Analysts estimate the Chinese market to be worth CNY 3.3 trillion (USD $540 billion) by 2015.

• E-commerce growth was driven largely by mobile: 40.7% of online shoppers used a mobile device to browse e-commerce merchandise.

• 53.6% browsed a merchandiser’s mobile app instead of accessing its main web site through their device’s internet browser.

• In Tier 4 cities the average shopper spends 27% of disposable income through e-tail

What Chinese Users Buy Online % of UsersCLOTHES 51.69SHOES 40.98BOOKS 33A GIFT FOR SOMEONE 23.18MOBILE PHONE 22.03PERSONAL ITEMS; WATCHES / HANDBAGS, ETC 21.68BEER 21.44FILMS 18.25TRAVEL E.G. PLANE TICKETS / HOTEL 16.15BROADBAND / HI-SPEED INTERNET 13.91HEALTHCARE AND PHARMACEUTICAL PRODUCTS 13.56WINE / SPIRITS 12.71HOLIDAY (IN MY OWN COUNTRY) 12.66MUSIC 12.46FINANCIAL PRODUCT E.G. INSURANCE 9.27NONE OF THE ABOVE 8.23DESKTOP COMPUTER 7.53FURNITURE / HOME EQUIPMENT 7.03LAPTOP (BIGGER THAN 10” SCREEN) 5.98

Page 11: China Search covers Search Marketing in China.

Fashion Takes a Larger Share of Wallet

Compared to other markets, Apparel is a market leader for spend

Source; McKinsey

Page 12: China Search covers Search Marketing in China.

China’s market size in perspective;

A 24 hour Singles day sales event on 11th November 2013 saw USD $5.75 billion of sales over Alibaba’s two market leading e-

commerce platforms.

Compare this amount with Black Friday in the US, which netted only USD $1.46 billion

Page 13: China Search covers Search Marketing in China.

So, a huge market, with incredible growth still to come. Connected

consumers, with growing disposable income and a high propensity to transact

online, in fashion…

…What next.

Page 14: China Search covers Search Marketing in China.

THE BASICS STILL REPRESENT THE BIGGEST SINGLE OPPORTUNITY

Page 15: China Search covers Search Marketing in China.

VS.

Page 16: China Search covers Search Marketing in China.

Or, even better…

Page 17: China Search covers Search Marketing in China.

E-wallets (provided by marketplaces e.g. AliPay & TenPay) and COD are the preferred payment

methods across e-commerce.

The Credit Card network of choice is China UnionPay with over 300 million credit cards in circulation inside China. Over 3bn Globally

Page 18: China Search covers Search Marketing in China.

Local customer service is a must when selling in China.

The simple ability for staff to communicate with customers will differentiate your offering and make your products seem more accessible.

Page 19: China Search covers Search Marketing in China.

Be mobile ready. Last year around 1,670,000,000

payments were made via mobile phones.

Totaling a value of US$1.6trillion

Page 20: China Search covers Search Marketing in China.

Consider Working with a Marketplace as well as Your Own SiteThey are Dominant

Source; McKinsey

Page 21: China Search covers Search Marketing in China.

Understand your local positioning;

Colin Currie, MD of Adidas in China recently stated that unlike other markets, Adidas in China is more of a lifestyle brand, so his

competitors are more like H&M and Zara as opposed to traditional sports brands

Page 22: China Search covers Search Marketing in China.

Understanding Advertising on Baidu

Page 23: China Search covers Search Marketing in China.

Gucci – Paid Search Result

Page 24: China Search covers Search Marketing in China.

Gucci - BrandZone

Page 25: China Search covers Search Marketing in China.

Gucci – Baidu Knowledge

Page 26: China Search covers Search Marketing in China.

Gucci – Image Zone

Page 27: China Search covers Search Marketing in China.

Gucci – Baidu Wiki

Page 28: China Search covers Search Marketing in China.

Gucci – Baidu Video Search

Page 29: China Search covers Search Marketing in China.

Contact DetailsWe hope you enjoyed our presentation and we look forward to hearing from you.

Grant McCarthy

Executive Director

Email: [email protected]?

That was a lot of info, and we have a lot more. For these slides or more

information please email;

[email protected]