Our News

Three Reasons Why China Digital Marketing is Important

2020-11-19

Over the last five years, China has firmly established itself as a global leader in e-commerce, with annual online sales of $672 billion, and consumer-oriented digital technologies. China’s mobile-first approach to the internet, the seamless way it integrates e-commerce into video and social media, and the fact that it is home to some of the biggest apps currently taking the internet by storm – you’ve heard of TikTok, right? – are just a few reasons that more and more brands are looking to China as a leader in digital marketing. It’s no surprise that brands across the world are seeking new opportunities in the Chinese market. But China’s digital approach is shaped by many factors, like geographic and cultural norms, consumer habits and concerns, a lineup of different companies, and different purchasing trends and practices. Therefore, it can seem quite intimidating for a business to make the leap from marketing in your home-country to China, the payoff is worth it. Here are 3 reasons why China digital marketing is important.


1. Tap into a different digital landscape


You may have heard of the Great Firewall before, but if not, allow us to clarify. China’s state regulation and strict censorship laws have created a completely different digital landscape than that of the west. Instead of using our first choices of Facebook, YouTube, and Google, what powers China’s impressive progress in the digital economy are internet giants like Baidu, Alibaba, and Tencent. These sites are commercializing their services on a massive scale, so understanding the way they work is critical for digital marketing success in China. A commonality between China’s digital marketing landscape and the west’s is the importance of social media and social networking. This has led to a new business model in China known as Social+, which drives user engagement and growth across all industries, not just e-commerce. If your business can tap into this, it can reach millions of active users in no time at all.

 
2. Mobile E-Commerce is Booming


The increasing affordability of smartphones in China has led to more than 95% of internet users accessing the internet through their phones.  Last year, mobile users in China accounted for nearly a quarter of the country’s retail market, which has drastically changed how commerce operates in the country. Brick-and-mortar retail is no longer the go-to as the internet allows for more flexibility. There are no restraints on time or location – with just a few clicks on a smartphone, one can buy almost anything from anywhere in the world, including your product! But to be successful in digital marketing in China, a business needs to have a clear understanding of the mobile payment ecosystem – Alipay and WeChat pay rule Chinese commerce, and they are becoming more and more common in the digital world.


3. Purchasing said to Double by 2025


Perhaps the most beneficial aspect of digital marketing in China is the amount Chinese consumers spend on luxury goods per year. In 2018, Chinese consumers at home and abroad spent over US $100 billion on luxury items, which is equivalent to a third of the global spend. This is set to double by 2025, with an estimation that Chinese consumers will make up 40 percent of the world’s spending. This growth is primarily due to an explosive increase of upper-middle-class households. Contact PlanChina for more information.