isentia china¹s digital economy_presentation_feb
TRANSCRIPT
CHINA’S DIGITAL ECONOMY
FEBR
UAR
Y20
16
欢迎
• China• China’s digital economy• The Great Firewall• Social Media• Online shopping• Australia through Chinese eyes
China’s digital economy
PEOPLE’S REPUBLIC OF CHINA
A MARKET OF
A
PEOPLE
GDP
IN 2015 IN COMPARISON TO AUSTRALIA’S 2.5%
IN THE WORLD
1.37 BILLION
US$11.2 TRILLION
7.3% GDP GROWTH
LEADING TRADING NATION
China’s digital economy
China’s digital economy
16,764,455 BABIES BORN IN CHINA IN 2014
THE EXPONENTIAL GROWTH OF CHINA’S ECONOMY
19520
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
1952 1952 1952 1952 1952 1952 1952 1952 1952 1952 1952 1952 1952
67.9 billion in 1952
Korean War Great Leap Forward Cultural Revolution Market-based economic reforms since 1978
Farm Privatization
Shenzhen SEZ
1997 Asian Financial Crisis
18232.1 Billion in 2005
Shanghai SEZ WTO Entry
PEOPLE’S REPUBLIC OF CHINA’S NOMINAL GROSS DOMESTIC PRODUCT (GDP BETWEEN 1952 TO 2005
GD
P (IN
BIL
LIO
NS
OF
RMB
YUAN
)
China’s digital economy
CHANGING FACE OF GLOBAL ECONOMICS
40%
30%
20%
10%
0%
1820
1830
1840
1850
1860
1870
1880
1890
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
% O
F G
LOBA
L G
DP
19%
2%2%
2%
6%
27%
16%
33%
15%
16%
- USA - Europe - China - India - Latin
Source: Angus Maddison, University of Groningen, OECD, data post 1980 based on IMF data (GDP adjusted for purchasing power parity)
China’s digital economy
CHINA AND THE USA
SEATTLE
DENVER
CHICAGO
DALLAS
BOSTON
LOS ANGELES
SAN FRANCISCO
MIAMI
NEW YORK
ATLANTA
URUMQI
LHASA
XIAN
KUNMING
BEIJING
HAERBIN
SHENYANG
TIANJING
NANJING
SHANGHAI
CHONGQING
TAIPEI
GUANGZHOU
HONG KONG
WASHINGTON DC
China’s digital economy
Image credit: East Meets West: An Infographic Portrait by Yang Liu
China’s digital economy
Image credit: East Meets West: An Infographic Portrait by Yang Liu
China’s digital economy
Image credit: East Meets West: An Infographic Portrait by Yang Liu
China’s digital economy
Image credit: East Meets West: An Infographic Portrait by Yang Liu
China’s digital economy
Image credit: East Meets West: An Infographic Portrait by Yang Liu
China’s digital economy
Image credit: East Meets West: An Infographic Portrait by Yang Liu
China’s digital economy
CHINESE DIGITAL LANDSCAPE 74%
ONLINE NEWS87%
INSTANT MESSAGING77%
ONLINE SEARCH
ONLINE USAGE
2013
2014
81%
83.4%
2013
2014
81.7%
80.9%
ONLINE ACTIVITY
21.5% 77%
MARKET DOMINANCE
China’s digital economy
THE INTERNET CANNIBALISES OTHER MEDIA FORMATS
Time (minutes) spent on each media per daySource: JWT Shanghai
3229
28 8 9 10
170162
150
54
4845
168
196
217
NEWSPAPER MAGAZINE RADIOTV INTERNET
2012 2013 2014
TIME IN MINUTES SPENT ON MEDIA PER DAY
China’s digital economy
THE BIG THREE
Source: JWT Shanghai
MONTHLY ACTIVE USERS TOTAL REVENUES IN FISCAL YEAR 2013
500 MILLION ON MOBILE BAIDU SEARCH BY JULY 2014 $5.2 BILLION
$5.5 BILLION
$9.7 BILLION (RMB 60.4 BILLION)
27 MILLION ON MOBILE REPORTED IN JUNE 2014
819.8 MILLION ON QQ IN Q3 2013
SOCIAL NETWORK + MOREECOMMERCE + MORESEARCH ENGINE + MORE
China’s digital economy
TWO DOMINANT PLAYERS IN WECHAT AND SINA WEIBO
Source: Tencent and Sina
468 167MILLION MILLIONMONTHLY ACTIVE USERS MONTHLY ACTIVE USERS
Video killed the... @isentia @spence7zero
EVOLUTION OF MESSAGING
Frequency of Communication
HIGH
LOW HIGH
Cont
acts
FREQUENCT INTERACTIONS WITH SMALLER GROUP PF CLOSE CONTACTS
BROADCASTING FEWER MESSAGES TO LARGE AUDIENCES
Source: Anjney Midha, KPCB Associate; Jared Morgenstem, KPCB Entrepreneur Partner
China’s digital economy
WECHAT – APPS WITHIN AN APP
• MESSAGING• MOMENTS• PHONE CALLS• VIDEO CALLS• CONFERENCE CALLING• MESSAGE IN A BOTTLE (DRIFT)• STICKERS• PAYMENTS AND GIFTING• WALLET• LOCATION BASED MARKETING• TAXI
China’s digital economy
KEY OPINION LEADERS (KOLs)
China’s digital economy
13.3 MILLION FOLLOWERS
Video killed the... @isentia @spence7zero
• Presented to Chinese President Xi Jinping on his visit to Tasmania
• 65,000 visitors per year to Bridestowe Lavender Farm
• Sales of more than 40,000 bears per annum
• Online tag of authenticity check
• Bobbie the Bear the TV Show for ABC International
Source: Tencent and Sina
BOBBIE THE BEAR
CHINESE ECOMMERCE• 20,000 Chinese domiciled
ecommerce businesses• 5,000 online shopping
platforms• $US1 trillion digital economy
2/3 the size of Australia’s whole economy
Avg. Buzz 27034
ONLINE SHOPPING POSTS BY INDIVIDUAL PURCHASE AGENTS WITH REGARDS TO AUSTRALIAN VITAMIN PRODUCTS
19960
14802
15098
1680718756
2270425292
29893
42701
47104
37532
33757
11.11 Online Shopping Festival
& 12.12 Online Shopping Festival
Source: Isentia China; Quarter 2, FY 2015
0
10000
20000
30000
40000
50000
March April May June July August Sept. Oct Nov Dec Jan Feb
China’s digital economy
THE SHOPPING FESTIVAL AND SINGLES DAY• Singles Day is 11 November
each year
• Biggest shopping day in the global calendar
• US$14.3 billion in 2015 including US$5 billion in the first 90 minutes
• US$1.6 billion for Black Friday and Thanksgiving combined
Products cheaper than usual
Online Campaigns
Discount Coupon
Freshness
Wider selection of items
To save time
0% 5% 10% 15% 20% 25% 30% 35% 40%
35%
19%
17%
13%
11%
5%
REASONS FOR SHOPPING DUIRNG ONLINE SHOPPING FESTIVAL
Source: CNNIC
China’s digital economy
77.8%
50.2%
41.2%
53.1%
39.6%
35%
40.8%
30.7%
29.1%
Clothes & Shoes ElectronicsPhone Credit Groceries Consumer Health
WHAT ARE PEOPLE BUYING ONLINE IN CHINA?
Source: Kantar Media, 2014
China’s digital economy
CHINA & AUSTRALIA
94% OF CHINA’S POPULATION LIVES ON THE EASTERN SEABOARD
China’s digital economy
0
5000
10000
15000
20000
25000
March April May June July August Sept. Oct Nov Dec Jan Feb
Health A Health B Health C Health D Health E
AUSTRALIAN CONSUMER HEALTH – MARKET ANALYSISBy way of example and to test the relative impact of Chinese social media and online shopping on Australian products and services Isentia tracked mentions and products offered for sale in China from five competing Australian domiciled consumer health organisations.
Source: Isentia China; Quarter 2, FY 2015
China’s digital economy
SENTIMENT OF AUSTRALIAN BUSINESSESSentiment in comments and approval generally over Australian consumer health products was very high, due in large part to the perceived safety of products sourced from Australia and New Zealand.
Source: Isentia China; Quarter 2, FY 2015
Health A
Health B
Health C
Health D
Health E
Industry
0% 10% 20% 30% 40% 50% 70%60% 80% 90% 100%
9.14% 89.32%
80.74%
98.57%
66.16%
78.04%
55.64%
31.65%
14.34%
27.34%
16.12%
Negative Neutral Positive Very Positive
China’s digital economy
Brand mentions
40000
Health A
Health B
Health C
Health D
Health E
80000 120000 160000 200000
94678
39,202
20069
59803
54566
32623
Product Discussion %
BrandDiscussion %
Product Discussion
39%
58%
72%
69%
68%
61%
42%
28%
31%
32%
PRODUCT VERSUS BRAND IN CONVERSATION
Source: Isentia China; Quarter 2, FY 2015
China’s digital economy
KEY WORDS AND PHRASES
Source: Isentia China; Quarter 2, FY 2015
China’s digital economy
Source: Business Insider
China’s digital economy
THE GREY MARKET ECONOMYBLACKMORES’ ASIAN BUSINESS IS WORTH $84 MILLION PER ANNUM BUT THE BUSINESS ESTIMATES THAT DOMESTIC AUSTRALIAN SALES FOR ‘GREY MARKET’ RESALE IN CHINA ADDS A FURTHER $70 MILLION PER ANNUM
WHERE ARE PURCHASE AGENTS FROM?
MORE THAN ONE THIRD OF ALL PURCHASE AGENTS SELLING
CONSUMER HEALTH PRODUCTS FROM AUSTRALIAN DOMICILED BUSINESSES
LIVE IN AUSTRALIA
AUS
96% OF PURCHASE AGENT ACCOUNTS ARE UNVERIFIED
Source: Isentia China; Quarter 2, FY 2015
China’s digital economy
AUSTRALIAN ORGANISATIONS ON SINA WEIBO
China’s digital economy
CHINESE AUSTRALIAN COMMUNITY POPULATION DISTRIBUTION
Source: Monash City Science
China’s digital economy
Source: Weibo.com
China’s digital economy
SINA WEIBO IN AUSTRALIA• SINA WEIBO IS THE 6TH MOST VISITED SITE IN CHINA AND THE 63RD MOST VISITED WEBSITE IN AUSTRALIA
• 368 MILLION GLOBAL USERS OF WHOM 600,000 ARE DOMICILED IN AUSTRALIA
• 71% OF THE CHINESE AUSTRALIAN COMMUNITY HAVE A SINA WEIBO ACCOUNT
AUSTRALIAN ORGANISATIONS ON SINA WEIBO
There are 10,000 Australian business accounts, for example:
RMITABC International
Westpac
Tourism Victoria
IG Markets
ABC International
Tennis Australia
Tourism Australia
Monash University
Commonwealth Bank
Source: Weibo.com
China’s digital economy
AUSTRALIAN USE OF CHINESE SOCIAL CHANNELS
China’s digital economy
ISENTIA UNLOCKING CHINA
China’s digital economy
China’s digital economy
ISENTIA UNLOCKING CHINA
Understanding ChinaA monthly update on social media activity and the Chinese digital economy and specifically how it impacts on the ANZ market.
InsightWho is talking about your brand and services or selling your products? How do you position against local and international competitors?
EngagementTargeting Chinese consumers either in the PRC or domiciled in Australia. Establishing accounts and profiles on Sina Weibo and WeChat.
MonitoringOngoing monitoring of conversations and online sales for your brand, product or service.
China’s digital economy
China’s digital economy