Chinese Consumers Online 2014

Chinese Consumers are Embracing Digital in an unprecedented way

Presented By

Calvin Chan COO @AdMaster

Date: April 10, 2014

AGENDA

�What are the characteristics for the online behaviors of Chinese consumers?

� How are Australian brands doing on Chinese social media?

� Case Sharing: how to make better business decisions by leveraging the power of digital and social?

Chinese Internet Users reach 618 million, 27 times the population of Australia!

8.5% 10.5% 16.0% 22.6% 28.9% 34.3% 38.3% 42.1% 45.8%

0.0%

20.0%

40.0%

60.0%

020000400006000080000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Size of Chinese Internet users and Internet penetration rate

Netizens Peneration%

10000 persons

18.3 18.7 20.5 25

0

10

20

30

2010 2011 2012 2013

Average weekly time spent per Chinese Internet user

Hour

191 230 268 320

0

100

200

300

400

2010 2011 2012 2013

Number of websites in China 10000 persons

Data Source: CNNIC, 2014.1, Statistical Report on Internet Development in China

65.9% 69.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2012 2013

Number of Users and Utilization Ratio of

Online Video

Number of users of Online VideoUtilization ratio of Online Video

10000 persons

82.9% 86.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

10000

20000

30000

40000

50000

60000

2012 2013

Number of Users and Utilization Ratio of

IM

Number of users of Instant Messaging

Utilization ratio of Instant Messaging

10000 persons

+13.7%

IM, Online Video, Online Shopping keep growing at double-digit rate

+15.1%

42.9% 48.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0

5000

10000

15000

20000

25000

30000

35000

2012 2013

Number of Users and Utilization Ratio of Online Shopping

Number of online shoppers

Utilization ratio of online shopping

10000 persons

+24.5%


Mobile is BIG! Mobile Internet exceeds PC and will be the new battlefield for marketing

70.6%

45.9%

74.5% 69.7%

44.1%

81.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Desktop Laptop Mobile Phone

Usage of Internet-based Devices

2012 2013

32.0%

49.3%

0.0%

20.0%

40.0%

60.0%

0

10000

20000

30000

2012 2013

Number of Users and Utilization Ratio of Mobile Online Video

Number of users of Mobile Online Video

Utilization ratio of Mobile Online Video

13.2%

28.9%

0.0%

20.0%

40.0%

0

10000

20000

2012 2013

Number of Users and Utilization Ratio of Mobile Online Shopping

Number of users of Mobile Online ShoppingUtilization ratio of Mobile Online Shopping


Compared to TV and PC users, mobile users have higher education background, higher income and more senior position, especially Pad users

45.9 45.6 52.4 47.4

TV PC PAD SMART PHONE

University or above

4.8 4.9 5.8 6.1 4.7 4.2 5.5 4.0 10.6 11.3 12.4 12.8 2.1 2.2

3.4 3.7 9.6 8.7 11.7 10.5

25.2 24.1 22.3 20.9


Employee

Department Manager

Senior Management

Self-employed

Professional (Lawyer, Doctor)

Civil Servant

11.5 11.2 14.1 12.6

11.8 10.4 16.7 15.6


6000-9999RMB 10000RMB and above

The difference of education background across platform Unit：%

The difference of income across platform

The difference of occupation across platform

Data sources : AdMaster；Pool 4 13 projects in total，5 medias ：2013.9-2014.3

Unit：%

Unit：%

Cross-screen study shows that Mobile better increase brand awareness and purchase intention than PC and TV

8

9.3 9.6 10.2 11.7 12.8 14.8 15.8 20.0

5.5 7.3 6.6 6.5 Brand AwarenessPurchase IntentionPreference

TV ad Increase rate

Online video (PC) Increase rate

Online video (Pad) Increase rate

Online video (Phone) Increase rate

All categories Brand awareness of different platforms

Unit：%


In FMCG industry, smart phones drive higher purchase intention than other platforms, esp. for the matured brands

9

14.3 12.7 12.7 11.7

9.7 12.3 11.7

15.0

Brand Awareness Purchase Intention

TV ad Increase rate

Online video (PC)

Increase rate

Online video (Pad)

Increase rate

Online video (Phone)

Increase rate

Chocolate category Brand KPI increase rate on different platforms

1 1 2 2

7 10 10

14

Brand Awareness Purchase Intention

TV ad Increase rate

Online video (PC)

Increase rate

Online video (Pad)

Increase rate

Online video (Phone)

Increase rate

Beverage category Brand KPI increase rate on different platforms

Unit：% Unit：%


Social Media Usage: WeChat and Weibo are most frequently used

53.4

20.7 21.6

59.6

24.5

26 27.9

20

9.5

19.8 17.4

11 6.9

13.7 15.5

5.5 3 8.4 9.7

1.7 2.7 11.5 8 2.2

0%10%20%30%40%50%60%70%80%90%

100%

Weibo SNS Blogs WeChat

Multiple times / day Once a day 4-5 times / week

1-2 times / week 1-3 times / month <1 time / month

High frequency of use

Using it anyw

here

……Weibo: � “Logged � in � 10+ � times, spent 10mins to an hr”

……WeChat: � “always � on, retweet and leaving messages � to � friends”

1+ per day

Unit：%

N=1217

Data source: AdMaster

When it comes to purchase decision, Chinese social media users are highly influenced by their friends and colleagues, esp. the younger demos

22.4 24.7 31.7

20.3 28.1 30.3

38.5

28.9

56.5 59.9 63.5

50.8 48.8

68.1 67.3

57.8

83.6 81.9 75.0

66.4

6.9 9.1 6.7 8.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

P18-24 P25-34 P35-39 P40+

Celebrity People w/ social status Relatives Colleagues Friends Strangers

Unit% N=1125


Inventory Price Delivery Service

E-Shopping Experience Buzz Volume

28%

26%

27%

29%

7%

22%

47%

10%

-65%

-52%

-26%

-61%

NeutralPositiveNegative

E-Shopping Experience Buzz Sentiment

Inventory

Price

Delivery

Service

Consumer journey

When they purchase online, delivery is their top concern


Weibo IWOM is a good channel for online finance products to obtain users Yu E Bao user growth showed the same trend as Weibo buzz growth

0

5

10

15

20

25

30

35

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Jun Jul Aug Sep Oct Nov

Weibo Buzz Volum

YuEBao User Amount

Weibo Buzz Volume YuEBao User Amount （in million）

Data source: AdMaster (Buzz Volume) Alipay (User Volume)

* Remark: YuEbao did not release User Volume of Aug.

AGENDA




13 Australian brands are being talked about on Sina Weibo Bridestowe did many promotion campaigns

20043

16786

7333

132352

67155

14509

0

20000

40000

60000

80000

100000

120000

140000

0

5000

10000

15000

20000

25000

Buzz Performance

Buzz Volume Engagement

Data source: AdMaster Data period: 2014/1/1 to 2014/3/20

When they mentioned “Blackmores”, what are they talking about?


Among the 13 brands, only 7 have a Sina Weibo official account


Yellow Earth

23,614 fans 31 months

UGG Australia


Bridestowe


Cheviot 86 fans 13 months

Oroton


WOOLMARK


Blackmores


How are these 7 brands operating their owned media on Weibo? A positive impact showing for UGG Australia!

107 168

1445

11462

4710

10 715 19

324

102

238

142

4

31

0

50

100

150

200

250

300

350

0

2000

4000

6000

8000

10000

12000

14000

Tweet Number Consumer engagement

Weibo Performance for Australian Brands w/ Sina account

Consumer Engagement Tweet number


Your Chinese Target Audience love Food, Travel and Fashion! And they are a different group from local Chinese brands’ TA

Top 5 User Tags on Sina Weibo for Australian Brands

Music 10% Movie 10% 80s 8% Travel 7% Food 6%

Local Brand Li-Ning User Tags


AGENDA




New opportunity from consumer insights: Skin damage is the no.1 concern for consumers on heavily polluted days, growth areas for beauty brands

1

5

Consumers’ Skincare Concerns on Heavy Air Polluted Days

3%

5%

7%

9%

16%

21%

40%

0% 10% 20% 30% 40% 50%

Coarse Pores

Breathing Problems

Acne

Skin Cleansing Challenges

Skin Dryness

Allergy

General Skincare Problems

Key Concerns Categories

Data Period: 2013/01/01-2013/06/15


Renewed perspective about your customers: Redbull learned new things about the profiles, psychology & behaviors of their target audience

2

5


Post 80s & 90s Mostly live in Guangdong

Like variety shows & entertainment

Sarcastic & Showoff their daily life

Love Traveling, but of actions

Passionate about Sports

Freedom-spirit

Local

Big data to guide better decision making: Coca Cola’s summer campaign (nickname bottles)

3

5

WeChat for real-time CRM: SO-LO-MO and very personal channel to connect with Chinese consumers

4

5

WeChat Billing & Notice 9 Transaction notice 9 Check & pay bills 9 Increase credit limit 9 Edit personal profile 9 Credit card payment 9 Lookup deals locally 9 Smart voice chat …

Data analytics for enhanced consumer engagement : Engaging Weibo campaigns helped drive followers for Visit California

5

5

z During the period from April 8th to May 28th 9,453 new twitters become VCA’s followers, leading to a 33.7% net increase refer to April 8th’s level

z The average quality of these new followers is 24, significantly higher than @VCA’s original follower quality (14)

27,887 28,060

37,513

311 312

630

300

350

400

450

500

550

600

650

25,000

27,000

29,000

31,000

33,000

35,000

37,000

39,000

3/18 3/25 4/1 4/8 4/15 4/22 4/29 5/6 5/13 5/20 5/27

Follower Amount

Tweet Amount

Follower Number Tweet Volume Tweet Volume and Follower Growth of @VCA

April. 8th, Campaign

Launch

#我摇去加州#

Topic #奢华之旅#


Aligning Weibo posting with users’ active time 5

5 z In general, the posting time of VCA is in accordance with its participants’ active

time (blue boxes); however, from 15:00 to 17:00, when VCA ‘s posting time peaks, participants’ active time touches a trough(red box)

0%

2%

4%

6%

8%

10%

12%

14%

16%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

VCA Posting Time Participant Comment Time Participant Retweet Time

@VCA and Participants’ Active Time in 24hr


AdMaster: A SaaS company focusing on big data management to help business create values

BJ 150+

SH 100+

GZ 40+

Serving over 300+ global leading companies and top local ones Top partners Tech-leading data company

Over 60% R&D personnel, Core team from SAP, Baidu, Skype, Ebay,etc

10+ product lines to provide one-stop service

http://www.ipsos.com.cn/

THANK YOU ! [email protected]

Power of Social Media Blackmores China

April 10, 2014

Social Media Overview in China

Latest social media structure released by CIC.

building awareness

content/interaction

service/trade

Social Media Chain Value:

Social Media Strategy

Attention Interest Search Action Share

People’s purchase decision-making process is changing…

Xanthigen Campaign with

social media support

X‘mas Card to Fans

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Increasement

Accumulative

Aver./Day

Blackmores Fans on Weibo x10 times in 2013

House Wife

吃了一阵子这个@Blackmores澳佳宝的高浓度深海鱼油了，大变化倒没感觉出来，但是，不能不提的是我明显觉得自己记忆力好了很多，同事也说我眼神跟以前不一样了，犀利了哈哈~ 一天一粒也蛮方便的~ 希望不是什么心理作用哈哈哈~

KOL - Beauty

哇，终于收到澳佳宝的鱼油了。好大一瓶，满满的期待。澳佳宝在澳洲的口碑很不错，好多朋友都推荐呢。希望这个鱼油可以让我耳聪目明，身体棒棒。嘻嘻。 Office Lady

@blackmores澳加宝: 葡萄籽收到啦！美美地！@OfflineButAlive @haohaostudy @wffxdg 姐妹们吃了没？

对美容资讯情有独钟容易受到美容类KOL影响

渴望自己也成为KOL

对减压话题有兴趣喜欢在姐妹团内分享心得

注重生活质量对健康有专业诉求喜欢点评尝试过的产品

对家庭无微不至

111,852 fans

Blackmores Weibo Review

http://weibo.com/n/Blackmores%E6%BE%B3%E4%BD%B3%E5%AE%9D

http://weibo.com/n/Blackmores%E6%BE%B3%E4%BD%B3%E5%AE%9D

http://weibo.com/n/blackmores%E6%BE%B3%E5%8A%A0%E5%AE%9D

http://weibo.com/n/blackmores%E6%BE%B3%E5%8A%A0%E5%AE%9D

http://weibo.com/n/OfflineButAlive

http://weibo.com/n/haohaostudy

http://weibo.com/n/wffxdg

Community marketing : Celebrity’s Wechat publicity on our Xanthigen.

Our WeChat Upgraded from Subscription Account to Service Account, bringing into interactive interfaces.

Our new WeChat Subscription Account, delivering more health and regimen topics.

Blackmores @Wechat

Xanthigen Campaign: Online + Offline

Publicity & Interaction

Award delivery & Direct contact

Paid Media

Owned Media

Blackmores Social Media Strategy

www.blackmores.com.cn

Earned Media

Thank You!

Chinese Consumers Online 2014

Internet

Transcript of Chinese Consumers Online 2014