Home economy in China

Over the last few months, COVID-19 has spread across the world, negatively affecting the economy.

As the first country to struggle with the crisis, China has shown resilience and is now on the track of post-COVID-19 economic recovery, whereas most European countries are still suffering from harsh economic knock-down.

Despite the current serious health situation, COVID-19 pandemic has accelerated some trends, forcing people to adapt to a more digitized economy.

Let’s observe the daily life of a Chinese millennial student :

8 am – 9 am : waking up, messaging friends on Wechat, reading news on Wechat, Weibo, Toutiao

Wechat is the main mobile application in China with + 1.15 billion monthly active users. Known as a super mobile application, brands can directly reach the consumers through Wechat by using Wechat moments, limited sales, mini-programs…

9 am – 11 am : online classes / professional meeting on DingTalk

→ Pandemic has reinvented a new way of teaching and professional relationships. 

DingTalk, Alibaba’s enterprise communication and collaboration platform, was the top rising mobile app in March 2020. The monthly active users of DingTalk skyrocketed to 288 million in March 2020 and the average monthly usage hours also grew sharply by 570%.

DingTalk is mainly used for collaborative work including several features such as group messaging, video conferencing up to 300 participants with recording, screen and file sharing…Teachers also used this app to send homework to students. 

11 am – 11.30 am : ordering lunch on food delivery mobile app such as Eleme

→ As restaurants were closed during quarantine in China, people have turned towards food delivery services such as Ele.me and Meituan mobile apps and people are still using it for rapidity and accessibility.

12 am – 1 pm : having lunch while watching videos on Bilibili, Douyin, Xigua, Youku

→ Entertainment sector was important during confinement and there were 1.04 billion social media users in China in January 2020, consequently the number of social media users in China increased by 15 million between April 2019 and January 2020.

1 pm – 4 pm : online classes / professional meeting on DingTalk

4 pm – 5 pm : online sports session

→ Since the outbreak, there was an explosive growth in fitness home equipment and online fitness classes. Current consumption of fitness and health suggests healthy growth moving forward to more sporting event participation online.

5 pm – 6 pm : private tuition with a personal teacher on VIPKID

→ For now, the huge number of foreign teachers has become a core advantage that VIPKID has over other platforms. VIPKID is Forbes number 1 rated company for Remote Jobs and ranked in the Top 10 Best Places to Work 2020 by Glassdoor.

6 pm – 7 pm : online shopping through e-commerce platforms and social media : Taobao, JD.com, Pinduoduo, Wechat, Xiaohongshu

Social selling with WeChat in China is exploding with growth of more than 100%, far more than in any other country in the world, this with an e-commerce market 3 times larger than the U.S. market which is the second largest market. Group-buying and WeChat-based social commerce exceed 90% of the total market share for social commerce. The coronavirus pandemic increased the number of customers who have accepted social commerce as a new way for shopping.

→ Main luxury brands as Burberry, Bulgari or Chanel are now turning towards Chinese consumers by implementing marketing campaigns on WeChat and Douyin featuring top Asian influencers.

7 pm – 8 pm : cooking dinner with recipes on mobile apps like Douguo

→ Professional food-related mobile apps and social platforms are witnessing huge surges in page views as people look for tips and materials to prepare meals.

9 pm – 11 pm : live streaming gaming on Bilibili 

→ The market’s largest segment is Mobile Games with a projected market volume of US$41,483m in 2021.

Most of these trends were already existing before the pandemic. The pandemic has just been an accelerator of the “low-touch” or stay “home“ economy, and it is here to stay.

There are many opportunities for brands in this stay home economy in education, e-sports, cooking accessories or services, health and fitness….

For more information, do not hesitate to contact us at project@emotionchina.cn

We can propose you customized digital marketing services according to your needs.

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Pet economy is rising in China

Pet economy is rising in China

The pet economy is expected to reach RMB 472.3 billion ($66.8 billion) in China by 2023, according to market research firm Frost & Sullivan.

Chinese Millennials under 30 years old accounted for 45% of total pet owners in China in 2019 and they devote part of their budget to the well-being of their pets including food, welfare, accessories and clothes, toys, insurance…

Dog and cat owners are the leaders on the market but niche pets is also growing such as birds, hamsters, reptiles or rabbits owners.

Pet economy has led to a new lifestyle. For example, some pet owners in big cities ask local friends or even paid pet sitters for temporary care, while others turn to “pet hotels”, a place where you can leave your pets for a determined time. There is also a rise of animal coffee shops in order to make customers relieve themselves from stress accumulated by the pressure of work.

Trends in Pets sector :

Consumers are seeking personalised offers

When they buy pet products, consumers are paying attention to pet food according to the animal’s race and allergies, the online rating and other customers’ feed-backs for toys and accessories and the notoriety of the brand’s products they purchased whether it is a Chinese brand or a foreign brand.

E-commerce platforms

53.2% consumers prefer to shop online rather than buying in physical specialized pet shops. Here is a selection of dog food on epet.com including Chinese brands such as Nature Bridge (比瑞吉) and foreign brands like Royal Canin :

Dog food on epet.com

Cooperation with KOC

“What is the best food brand for dogs ?”, “The best cat litter ?”, “My rabbit looks thinner, why ?” 

Much more than KOL (Key Opinion Leaders with a large audience), KOC (Key Opinion Consumers) have a smaller audience and can drive some recommendations and answer followers’ questions based on their own experience.   

KOC with pets are booming on Chinese social media

Technology solutions

Nowadays, pet owners are more concerned about the well-being of their pets. For instance, Alipay launched a pet insurance service featuring nose print recognition technology, a substitution of using a microchip implant. 

Alipay allows pet owners to buy insurance by using facial recognition

For more information, do not hesitate to contact us at project@emotionchina.cn

We can propose you customized digital marketing services according to your needs.

For more information about Digital marketing and business in China, subscribe to our newsletter : https://www.subscribepage.com/chinabusinessletter