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Chinese Online Property Market Appears Set For Lengthy Downturn Chinese Online Property Market Appears Set For Lengthy DownturnComments Off

China’s online property market industry appears set for a prolonged downturn that will last far into 2017 and potentially beyond, according to analysts who say government policies intended to steady the housing sector have depressed sales and have had the expected effect of reducing demand for the online property services.

The projection of an extended downturn in the online property sector follows years of both growth and contraction, and the volatility in the market is one of the reasons that the government is imposing strict rules to avoid a housing market crash. If China were to experience a housing market bubble that burst, it would create significantly greater economic problems affecting more sectors than a narrower decline affecting just the property market.



The declining Chinese property market “is entering a long winter for at least six months.

According to a report released this week by economic analysts Alvin Jiang and Alan Hellawell from Deutsche Bank, the declining Chinese property market “is entering a long winter for at least six months.”

The South China Morning Post notes that the analysts believe that this downturn will last through to end of 2017, which could mean it lasts even longer — potentially into 2018. The analysts say that the decrease in the market can be directly connected to government policies that aim to avoid a housing market crash by imposing strict requirements on several important factors such as managing property prices and limiting transactions. [1]

In their report, the analysts said, “Both the online property transaction business and the related listing business are suffering from the cold property market. Continuing strict policies have frozen transactions and hurt the desire of property agents to spend,” which has led to major drops in property transactions. For example, the report says that the volume of property transactions in China’s top 10 cities dropped 25 percent in October.

 

The Chinese Online Property portals

Given the downturn, the analysts decided to downgrade their rating of the online property portal sales SouFun to “sell,” citing “continuing weakness” in the sector as well as the company’s apparent “scaling down” of operations. The analysts also downgrade 58.com — another online property sales portal — to “hold” rather than “buy” for similar reasons, because it “reflect[s] our concern on the continuing weakness in the property segment.”

However, a blog post on Barron’s Asia notes that the analysts’ report appears to be late in coming, because the property market was already experiencing a freeze before the release of the findings. [2]

“Isn’t Deutsche a bit too late to the game?” asked the blog post, which noted that SouFun had already dropped 60 percent in value and 58.com had experienced a similar 50 percent decrease this year.

The conclusions on the downturn in the market are in contrast to news reports earlier this year which said that SouFun was among several online property companies enjoying a rebound of growth.

For example, Bloomberg Technology reported as recently as March this year that due to a combination of government stimulus funding and a growth in the property market SouFun recovered 25 percent on the Bloomberg China-U.S. Equity Index compared to February this year. [3]

The Deutsche Bank analysis underscores the unpredictability and volatility of the housing market, and suggests that online property companies might need to rethink their strategies for 2017.

 

[1] http://www.scmp.com/business/companies/article/2056007/chinas-online-property-agencies-face-prolonged-downturn-analysts

[2] http://blogs.barrons.com/asiastocks/2016/12/14/chinas-property-market-is-freezing-up-sell-this-stock-now/

[3] https://www.bloomberg.com/news/articles/2016-03-27/online-property-companies-soar-on-china-s-real-estate-recovery

 

4 http://marketingtochina.com/generate-clients-requests-real-estate-field/

New trends of Chinese social media: Mini-apps, KOL e-commerce, and live streaming New trends of Chinese social media: Mini-apps, KOL e-commerce, and live streamingComments Off

The Chinese social media landscape is unique, fragmented, and the most dynamic of the world. It requires a lot of attention to keep informed of the latest innovations that pop up.With the rise of Tencent’s WeChat that gathers Facebook and Whatsapp functions and Weibo, the Chinese equivalent of Twitter, social media in China is booming. At the same time, mobile internet is growing. According to the China Internet Network Information Center (CNNIC), the number of mobile internet users hit 656 million in June 2016, making up 92.5% of the 709.58 million internet users. Among all mobile internet users, 91.7% of them have 3G and 4G networks. This high mobile Internet penetration adds a new dimension to the developmentof social media. Here are three new trends of Chinese social media that brands and companies should take into account for their digital strategy to reach the Chinese consumers.

WeChat Mini-apps: the accelerating decline of mobile apps

The most popular instant messaging app in China, Tencent’s WeChat, is booming at 806 million monthly active users (MAU). According to Kantar’s China Social Media Impact Report (2016 April), WeChat is the most widely used instant messaging or chat app in China, with 75.9% reach among internet users at the end of 2015 (compared to 68.6% in July 2015).     In September 2016, WeChat launched a new function called Mini-apps.Mini-apps allow users to use apps directly in WeChat without installing anything. Users simply have to scan a QR code or to search the name to open an app. Apps will be everywhere, ready to use at any time without occupying too much storage memory. This new function is still in private beta, and a large number of WeChat users are looking forward to trying it.   Currently, WeChat users open the app 14.5 times and spend 48 minutes per day on average. It is foreseeable that Mini-apps will attract users to use WeChat more frequently and to spend even more time using it. This new function may accelerate the disappearance of mobile apps with a small user group, and contributes towards consolidating social media apps market. According to Gartner, 20% of brands will abandon their mobile APPs by 2019 because APPs are not paying off.

SinaWeibo KOL economy: a new e-commerce real-m

SinaWeibo is the biggest Chinese microblogging website, with 282 million monthly active users. Microblogs allow users to follow famous celebrities and enable the emergence of key opinion leaders (KOLs), who mainly earn money from advertising and cooperation with third parties. However, some fashion KOLs on Weibo successfully created a new e-commerce modelthat quickly pays for itself. These KOLs usually own their fashion shops on Taobao, the biggest e-commerce platform in China. They accumulate a large number of followers on SinaWeibo and bring the traffic to their Taobao stores by a simple link. For instance, the most famous fashion KOL Zhang Dayi has 450 million followers on SinaWeibo. Baidureported that Zhang Dayi’sTaobao shop achieved 300 million RMB sales (44.53 million USD) in 2015.   The cost of KOL e-commerce model is much lower than traditional fashion companies. These KOLs are known for their good tastes in clothing, and they succeed in getting a lot of followers with similar fashion style. KOLs post pictures wearing new clothes on SinaWeibo and can receive instant feedback from followers. They can then produce these clothes within seven days and bring new arrival on Taobao shops. Precise targeting and immediate feedback bring high conversion rate for Taobao shops. SinaWeibo platform also helps KOLs to save marketing spending, and just-in-time production limits storage costs.

Live streaming flourishes in China

The live streaming market is booming in China. The current market value of this industry is estimated at 9 billion RMB (1.33 billion USD). Chinese main internet media Sina reported that in 2016, China has at least 200 live streaming platforms on which are connected 325 million active users. More than the half of them are millennials. The huge number of mobile usersbase and high popularity of 3G and 4G mobile networks facilitate the development of the live streaming industry, which grows increasingly attractive. Therefore, even internet giants want a piece of the action: Tencent introduced its live streaming platform in 2010 that focuses on game live. SinaWeibo and Taobao also have developed live streaming functions in their apps to enhance traffic.   Live streaming succeeded in grabbing the netizens’ attention. They spend much of their idle time watching live streams, on average 387 thousand hours on SinaWeibo live streaming platform every day. However, SinaWeibo does not offer the fastest live streaming service. Inke was established in May 2015 and became the biggest live streaming app within one year. Users who watch live streams can buy virtual gifts with real money and send these gifts to their favorite hosts. Regarding hosts, beyond advertisement income from third parties, live stream platforms typically share income with hosts. For instance, Inke usually collects 70% and leave 30% of revenues to hosts. Furthermore, Chinese users are also developing payment habits for these platforms. For instance, for the second largest live streaming App YY, the number of monthly paid users has grown 63.7% in three years.   Live streaming is now perceived as one of most potential industries in e-commerce. Once these hosts have accumulated a large number of followers on live platforms, it is possible for them to monetize traffic through different ways. They could even think about setting up business models similar to KOL e-commerce ones.

China’s new phoenomen: get Smartphones at all costs China’s new phoenomen: get Smartphones at all costsComments Off

4 facts that show that Chinese will do everything to get a smartphone

  1. Sell your Kid

In Tong’an, a young couple was condemned to 3 years of jail after selling their baby on internet. Being in a bad financial situation, with the money of the exchange they wanted to buy a motorcycle and an IPhone. Indeed, a man did buy the new born for 23 000 yuan, to offer it to his sister.

  1. Sell your organs or sperm

Since a few years, more and more Chinese sell their organs because of their financial difficulties, in order to buy Apple products such as IPad or IPhone. In 2011, a Chinese man, Zheng, decided to sell one of his kidney to be able to buy an IPad 2. He found an announce on internet offering 2 700 euros for one kidney. The truth is that the hospital where he get his surgery actually rented surgery blocks to a private company which sells organs on the black market.

Following the same idea, a Chinese sperm bank published an announce on Wechat: “Get a free IPhone 6S in exchange for your sperm!”. Indeed, the price offer for a sperm donation equals the price of the IPhone 6S, between 5 000 and 6 000 yuan. This announce actually bring more than 500 000 visitors to that sperm bank.

 

  1. A pedestrian way for smartphone addicts

In a few Chinese cities, special pedestrian ways were created especially for smartphones users, like it is the case in Chongqing. Those pedestrian ways are supposed to avoid accident involving people with literary their heads in their screens.

An investigation was carried by National Geographic concerning those pedestrian ways for connected people, it actually revealed ironically, that most individuals didn’t even noticed this new concept.

  1. IPhone for life and Death

China has a strong tradition regarding ancestors and the dead people, with a strong cult of the dead and important funeral ceremonies. The new trend is now to offer IPad and IPhone to be burned during a funeral, to honour the dead.

 

Other

  1. semseoservices
  2. http://www.chinainternetwatch.com/17513/smartphone-q1-2016/
  3. hina-market-research.blogspot.com/
  4. Seotick.net/
  5. Chinahush
  6. http://www.business-internet-china.com/
  7. Maximize social Business
When Google will come back to China ? When Google will come back to China ?Comments Off

Google available in China for over an hour ! 

Google had its own Easter miracle. For a very short time, Google’s services were available in China for the first time in over three years. South China Morning Post reported that mainland Chinese IP addresses were able to access Google websites from 11:30 PM Sunday, March 27 to 1:15AM the next day. Google has managed to slip through Chinese censorship by introducing a series of new servers in some Asian areas, which took the Chinese authorities quite some time to identify and block.

Read also: Beijing seeks to tighten reins on websites in China

This was the first time that Google search engine was available in China since it got blocked unexpectedly four years ago, in 2012. This action took place six months after Google announced in a blog post that its search engine was “inconsistent and unreliable” in mainland China. 

 

Google winning it against China?

These hundred and five minutes of Google search engine available in China were the first glimmer of hope of a victory for the Internet search giant in its ongoing battle with China. Google closed its China search engine in 2010 after refusing to censor search results and threatened to leave the whole country a few months before that. The following year, Google said China had hacked its Gmail to stop social revolution of the anti-government group Jasmine Revolution.

In December 2014, the Google Mail service had been totally blocked after users were able to access Gmail messages through third party applications, such as Microsoft Outlook. YouTube, owned by Google, has also been blocked since 2009.

 

The “Great Firewall” still makes victims !  

The overall censorship from Google is part of the “Golden Shield” Project of China, operating for 18 years now and aiming to help the Ministry of Public Security (MPS) to control what Chinese citizens can see online. The blocking of Internet services is known as “the Great Firewall” and claimed many victims other than Google. Indeed, Twitter, Facebook, Instagram and Snapchat are some of the major social networks to not be available in China.

There was no press communication from Google or Chinese officials to the fact that the search engine had been available in China. Having said that, with Google Play Store’s arrival in China which will occur this year, a quick availability could have been a glance at the upcoming future …

It is important to know how to get past this ” Great Firewall”. If you want to launch your website in China, please contact our specialized agents, they will for sure meet your expectations!

Further readings :

 

 

 

 

 

Chinese trendy expressions in 2016 Chinese trendy expressions in 2016Comments Off

Discover the top 10 of best Chinese expressions in 2016!

Each year, new expressions are coming up in France and it is the same in China. Here are the top 10 new Chinese expressions to closely follow up!

Here you can find an article about 10 common Chinese phrases.

1. The feeling of acquisition (huo gan)

A new phrase launched by Xi Jinping President, during the times of the launch of this new reform where the future changes will supposed to be a huge success for the Chinese people and let them with this “feeling of acquisition”, by providing satisfaction. A word indicating the feeling of satisfaction after any gain, reused and immediately popularized through Chinese social networks.

2. Appearance Value (yan zhi)

Have a high value of appearance or not, that is the main question. Using the term Yan Zhi (“face value”) for judging the beauty of a person in a quantitative manner. We already knew the data notes, 8/10 for the truly beautiful people, and the 5/10 for the average middling ones… The term Yan Zhi works as a gauge, especially to describe the beauty of celebrities.

Chinese is full of meaning value and signification, you can understand the Chinese culture by learning chinese.

 

3. Internet + (hu lian wang)

“Before there was the Internet, today there is Internet +: This is a development model merging the Internet and other economic and social productive elements, aiming to combine, restructure and recreate traditional sectors»

This term and this definition has been taken up by Medias after the Chinese Prime Minister Li Keqiang has mentioned it in the government report in 2015.

4. Maker (chuang ke)

Another term launched by the government in the same report: “Chuang Ke” is the Maker. This is designating the people who are able to create the product from a basic idea as a key for innovation in the Chinese economy. It seems that learning Chinese is the next challenge for CEO. CEO and managers have to get this “Chuang Ke”

 

5. Baby ( bao bao)

Bao Bao is the shortening of the term in vogue the “baby” meaning oneself.

Typically, it is the girls on social networks who will use this term to refer to themselves as the third person. An even more girly and “kawaii” manner to describe a situation.

6. Have the great open mind (nao dong da kai)

Be creative on the edge and in an unusual way is designating in China by “Nao dong da kai”: Having the largest open mind, or more precisely “to have the largest open hole in the brain” from another phrase “nao bu ”  meaning ” supplement the brain (with imagination) ”, very common in Japanese manga. You can see that Chinese language is full of imagery.

7. Being capricious (ren xing)

Children make whims and even adults, if you see this Chinese expression. Make a whim or rather be capricious, is the term that is used to designate as rich people who can spend lavishly. These kind of situations where people allow themselves to do what they want regardless of others.

8. The clan of severed hands (Duan shou zu)

For those who spend too much, you are probably parts of the clan of severed hands and you probably don’t know that: it is an expression used by women who want to “cut the hand” for having spent too much, particularly in terms of Internet purchases.

9. Celebrities on Internet ( wang hong)

Internet has a color and regarding celebrities, it is red (“famous”):

“Wang hong” («red internet”) is the term that enhanced the new consumer behavior, evaluating the reputation of an actor or a singer by the number of reviews on Internet.

10. It is the charisma that counts  (zhu zhi yao kan qi)

During the uproar caused by the promotion of the new album of Cindy Wang, the Taiwanese singer consuming Junk Food (burger), a netizen commented on the event by “It’s the charisma that counts,” ending the debate. The term has become widespread to describe the positive energy in the midst of negative reviews on social networks.

Top 10 rules for Doing Business In China Top 10 rules for Doing Business In ChinaComments Off

Doing business in China for Western firms is still hard in 2015.

 

Difference of Education

This is a primary function of Western business education in China today as much as, or even more, strictly business. I wonder if Western management in China really think one of his main tasks is education. If it does not, it should – because for a Western organization, doing business in China requires that he spend a lot of time educating and developing local talent to work in sophisticated Western business processes – and it requires that Western managers and workers allow themselves to be educated in the flexibility of the Chinese market

A general impression now is that Western governments – for example, the US and European governments – focus on short-term issues: basically ‘fight against fires and of lurching from crisis to crisis with little or no clearly discernible and coherent long-term strategy for how to do, much less resolve, the various crises. Examples include the unrest in the Middle East and North Africa, the tide of refugees arriving in Europe, and the threat of global climate change.

Beware of Chinese companies dynamics

A common cause of losses in China is that foreign companies are so focused on market growth rates that they neglect the basics of competitive analysis. In the beer industry, for example, more than 20 foreign brewers recorded in the mid-1990s, each plan to capture an average of 15 percent of their market segment. In a market lacking clear differentiation, they also found themselves competing with nearly 600 local brewers, many of them subsidized by local governments. Some of these issues should disappear over time, but almost twenty years later, the fundamental situation has changed little. Many industries in China resemble the wine industry, overcapacity, high levels of fragmentation, subsidized local competition, and foreigners are willing to absorb the losses of their “strategic” investments. Learn Chinese is a very good way to understand the way Chinese Things and react explain the founder of Taylor Made School a Chinese training center based in Beijing and Shanghai.

 

Time has different value in China

Many companies want to get on the ground quickly. In one case, the Director General told his head of strategy for operations in China will within six months. Time pressure like this can create problems later. It tends to result in sloppy planning and analysis. It shifts attention to finding the right partner to find any partner, regardless of adjustment partner. It also weakens your hand in the negotiations. Your Chinese counterpart will be how to use your time constraints against you, and you walk away with a worse deal.

The Chinese government, on the other hand, left the impression that he has a vision very long term, for example, by creating the infrastructure of the Asian Investment Bank (AIIb), take action to calm Volatile stock markets, which begin to fight against pollution, health and food security, and so on. While the asymmetry between Chinese and Western governments – short-term and long-western Chinese term - is obvious, directions of activity seem to be the opposite.

In a series of interviews I conducted, Western leaders indicated that while their companies are looking to make long term investment decisions in China, their experience of their Chinese counterparts are executives and employees looking to make a ” making quick death” source Forbes

Chinese executives also identified the following strengths of the Western business: management, technology, clarity and stability of its processes, a history of technical innovation, standardization systems, R & D, global reach, and strong brands. They also highlighted the following weaknesses: lack of flexibility, high costs, slow decision making, slow responsiveness, rigidity, low business efficiency (as opposed to, it would seem, effective production process) shows a lack of flexible ways and innovative operating

However, Chinese leaders have also identified the following strengths of the Chinese company: flexibility, market knowledge, large market, low costs, aggression, large (and flexible) market Labour (practical and tactical) the business innovation (though not necessarily product innovation), fast, increasingly, a human touch, efficiency, and a general attitude of being willing to learn . The weaknesses of Chinese companies, as Chinese managers see them, include mismanagement, poor technology, short-term vision, poor governance, ineffective systems, a lack of professionalism, poor R&D, a lack of standardization , low brand recognition, and poor quality.

 

Interpersonal relationship called guanxi !

A common safeguard against opportunism is to build trust with the people who matter to your business. Unlike the West, the creation of personal friendship is a prerequisite to do business. Friendship building takes time, which is another reason to avoid rushing into things. Besides numerous invitations to sporting and other events, a key element of trust is long dinners during which all but business is discussed. In these, alcohol plays an important role. Learn to drink intelligently. Experienced negotiators have alcohol in their glasses of water or wet towels in most good restaurants make available.

 

Chinese negotiatons are long !

Chinese negotiators sometimes grow beyond what their Western counterparts consider appropriate limits. For example, representatives of a large Western company negotiated the distribution rights for one of their products. Their Chinese counterparts have closed their initial height by threatening to use their political connections to prevent the distribution of their products if they do not get the rights. In another case, China has drunk their Western customers to prevent them from being effective in negotiating the next morning (which the Chinese side, involved a completely different set of people).

Be alert and prepare appropriate measures against. For example, the negotiating teams must learn to drink without getting drunk, include women (because they are not supposed to get drunk), and know that excessive drinking can be delegated to a member of the team.

 

Understand Chinese society (hierarchical)

The decisions of the Company are generally achieved so top-down, with only the top of the pyramid involved in decision making. Distrust puts limits on the delegation, and at each level surveillance monitoring is high. Middle managers generally have little power to make decisions accordingly, and their main role is to transmit orders from the top and ensuring compliance.

Long term Business

The overall results give a picture of a Western long-term and short-term orientation Chinese to do business in China, with the strengths and weaknesses of Western and Chinese organizations somehow complementary. Even when the two Chinese companies from the West and are considered a force in “innovation”, the nature of this “innovation” is different – Innovation West is considered and technical innovation China is thought to be about adapting flexibly to commercial and conditions.That market is an important consideration which may be underestimated. Everyone believes that their main task is to do business and earn money, but the nature of what they actually do is somewhat different. It seems to me that if the Chinese education system inculcates the qualities basic obedience and discipline in his students and when students enter the work force, practical necessities requires significant ‘on the job training “to adapt the most sophisticated technical processes and management procedures needed in today’s economy. So Western organizations have come to serve as a kind of “graduate school” to develop the knowledge and skills of managers and Chinese workers

 

Be Flexible and Agressive

While most Western organizations familiar to those who responded to the survey were multinationals of some sort (hence the perception of sophisticated large companies oriented technology ) Chinese organizations come in all sizes and shapes. They ranged from large state enterprises, heaviness, to smaller, high-technology start-ups more agile (hence the perception of poor governance and management, but also flexibility, aggressiveness, and low cost-).

 

Western Companies need to invest on their Brand

One has the impression that the image of our Chinese leaders of Western companies is something of an aircraft carrier – a large vessel sophisticated technologically innovative, flexible operating processes and systems and extensive global reach – all led by experienced management with a long-term vision. This is a “strategic” image of Western business. Perhaps unsurprisingly, the weaknesses are inversely proportional to the forces – a large aircraft carrier is difficult to maneuver in tactical situations and not to change rapidly adapt and respond to other types of tasks. So things are moving too slowly – decision making, response time, and the pace of tactical innovation – and are too rigid. So with a technical platform very sophisticated, we are stuck with a rigid structure that seems to take some time to adapt. source

 

 

Electronic devices market in China Electronic devices market in ChinaComments Off

The market for traditional products of consumer electronics in China is maturing, more than in the whole world. With the rapid development of information communication technology, China has become the largest manufacturing centre in the world for electronics, including televisions, computers, telephones and DVD players.

Here’s electronic devices market in China.

Market development in China

China became in 2013 the first market for electronic devices ahead of the United States. The spending in Asia reached $ 282 billion, and the world 1,068 billion dollars. The bulk of the expenditure was made by console video games, and televisions. In 2014, it is 1024 billion dollars that were spent in electronic devices around the world, including a three dollar spent in China. Shenzhen is the Chinese city that produces the more electronic devices in the world. In 2014, the city had a gross domestic product of 171 billion, largely due to its electronic production. Giants like Apple, Dell and HP make assemble and build their electronic components in this city.

The different categories

Equipment suppliers

Filcontrol is the technology leader in equipment products for textile machine industries. It is present in the Chinese market since 2005.

Phone

Huawei was founded in 1988 in Shenzhen in China. It is a company that provides services in the information technology sector and communication including phones. Its services are present in 140 countries, representing one third of the population. It achieved a turnover of 28 billion euros in 2014.

ZTE was founded in 1985 and also offers telephone services.

Xiaomi is the start-up that had the best start in the world. It was founded in 2010 and was valued at $ 45 billion in 2014. It sold up to 61 million units last year.


Computers

Lenovo is a Chinese company founded in 1984 by Liu Chuanzhi. Lenovo mainly manufactures computers, telephones, workstations, computer servers and connected TVs. However, the bulk of sales of Lenovo is done through computers, especially since he bought the PC division of IBM. However, it wants to focus on phones especially abroad, where it is still not very present. He recently bought Motorola Mobility. In 2014, its sales in the last quarter business was 10.8 billion.

Televisions

Skyworth or Hong Kong Skyworth Digital Holdings Company was founded in 1988 (From Bloomberg). It designs, manufactures and sells televisions and audio-visual products.

Maxpac is an electronics company including LCD TVs.

Mobile operator

In the area of ??mobile operators we can find China Mobile, China Unicom and China Telecom.

China Mobile is the largest mobile operator in China. It was founded in China in 1997. It has over 720 million subscribers. This is the largest mobile operator in terms of subscribers which is normal given that China is the most populous country in the world, however it remains only used in China.

China Unicom is the second on the China market. It was founded in 1994 in Beijing. It serves over 80 million subscribers.

China Telecom is the third. It was created in 2002 and has a network of over 70 million people.

Appliances

Haier was founded in 1984 by Zhang Ruimin in Qingdao. This is a home appliance company but it also manufactures TVs. It makes refrigerators, air conditioning machines and washing machines. Haier’s goal is to position itself as a premium brand but is in many countries a low-end brand. However, the company operates in several countries in Europe and also in the United States.

Hisense is a company of electrical equipment. It was created in 1969 in Qingdao. It is the result of the consolidation of brands Combines, Kelon and Ronshen. It is present in the whole world. Its turnover has exceeded $ 16 billion in 2014.

Development in the future

This will undoubtedly increase in the coming years due to the growing middle class: in fact, nearly 220 million households will be part of this class of 2022 according to estimates. China’s new middle class that have a lot of requirements and applications in the high-tech world: some products that they could not buy are now within their reach and they fully intend to enjoy it. So they try to have the latest electronic devices. New categories appear as 4K televisions that everyone is trying to produce and sell in bulk. The Chinese are particularly equipped to sell as much as possible: Chinese companies dominate the market for 4K TVs. Chinese company for Seiki example sells 39-inch 4K TVs for $ 499, which is low compared to what can be found in the market. Leading brands like Hisense, Skyworth and TCL are all trying to build televisions 4K high standard, always keeping the lowest possible prices. Connected objects are also on the agenda, and China hopes to equip its electronic products.

The electronic market is exploding in China since it is very tighly linked to online activities, something Chinese have come to see as part of their lifestyle. These past few years, numerous local companies have started challenging foreign companies on their own turf: High Quality reliable goods. However, the edge is still in favour of first. Why? Two reasons :

Simply put : trust. Too many scandals have gone between Chinese consumers and local companies in all kinds of industry and the electronic market is not an exception. Besides, it is also a matter of prestige. Foreign companies are often seen as giving more face, the typical Chinese social rule of showing how successful you are to be respected. In this matter for now, in the mind of a large part of Chinese mobile users, there is no possible comparison between Apple, Blackberry, Samsung and say Lenovo or Xiaomi. Ask a Chinese to exchange his iphone for a local brand, something still true even though you can find good phones sold by Chinese brands. Oneplus or the latest Xiaomi have received much praise for their features. Alas, the cliché is still present, much to the benefit of the Foreign brands.

Finally, promoting products via e-marketing and the latest inbound marketing strategies has
never been the Chinese companies’ forte. They are brilliant at doing business and getting the best deals but yet again, foreign companies have more experience in marketing. So, to be successful, a foreign newcomer in the Chinese market must use the services of a foreign inbound marketing agency that knows the Chinese market very well in order to get that big edge it would need (here for a list of good marketing agencies in China)

More about phone manufacturers on Business Internet in China here

The rise of e- tourism in China The rise of e- tourism in ChinaComments Off

Chinese tourists are more and more visiting other countries in the world, and this growth is expected to continue in the coming years. One of the key trends among Chinese tourists nowadays the e- tourism, i.e. using the internet for everything related to the Chinese travel and Chinese potential travelers. Why and how is internet used in this area? Here is some essential information when you are interested in this market.

More and more Chinese tourists in the world



The Chinese have more opportunities to travel, although they have little vacation in the year for most of them: holidays in China correspond to periods of national holiday, which are the moon festival in November and the Chinese New Year in January or February. The fact that these travel opportunities are concentrated around these two periods for most Chinese implies certain things, such as the efficiency of logistics and travel organization.
Indeed, these tourists should be 400 million in 2018, thanks to investments from the Chinese government in the exchange with other countries. This figure is huge, and this is why it is important for companies in the tourism sector and for countries wishing to take advantage of this market.

Internet in China



Another important figure here is: 600 million Internet users in China today. This means that the Chinese are very connected. In fact internet has become much more than a work tool, as it is in many Western countries. In China, it is an integral part of everyday life and is used for all sorts of things. If internet is also present in the life of the Chinese, it has also become an essential tool for tourists who want to find some information or to book tickets online.

David, specialist of Travel in Asia explain that “ 70% of Chinese travelers book online today! We must therefore be aware of the importance of the Internet in China, and also in the tourism sector.”

Major platforms booking



One of the popular methods of booking in the country consists of large platforms online: Ctrip , eLong and Qunar are very important websites that concentrate many online services related to travels. These platforms have a strong presence in the Chinese web, and Chinese people are used to check them. Many companies in the tourism sector choose to register on these platforms, which can be a wise choice, given their notoriety and visibility on the web.

Social networks and KOL



Chinese social networks are also very important in the tourism sector. The Chinese internet being censored, Chinese companies have created their own websites and networks, which are perfectly adapted to the Chinese audience and therefore became very popular in the country. For example, Weibo , Wechat ( Weixin in Chinese ) , QQ, Qzone are the Chinese networks with the biggest numbers of users , and Weibo is the most widely used with 50 million active users every day. You should know that 90 % of Internet users in the first, second and third tier cities in China have at least one account on a social network. They are important first because they have an important place in the life of the Chinese people, but also because many other brands are present: 300,000 brands on Weibo , with 56 % of Weibo users following at least one brand on the network. Tourism companies are also on Weibo. So if we want to attract Chinese tourists, it is also good to be present on these networks. More information here
Moreover, networks are important in the tourism sector particularly because of KOL (Key Opinion Leaders) , which are stars, celebrities or experts in certain areas, with thousands or even millions of followers . As a brand, we can use these KOL and let them publish information about the company, brand or products, in order to be able to reach a maximum of Internet users. KOL have a great influence on the web and in China, such as the KOL specialized on travelling, which like to share their travel experiences, photos and memories on the networks. They are part of the Chinese population to take into account when we want to promote a country, a place, or a tourist service.

Search on Baidu



Finally, evidence of the rise of e- tourism in China is the massive use of search engines by Chinese travelers wishing to find information about the country , and booking services : for example, there are on Baidu (the leading search engine in China with nearly 70% market share) , 500 searches on the keyword ‘ travel France ‘ per day! This proves that travelers who want to go to France massively use the internet to find information. When one wants to attract Chinese tourists, it can be useful to do SEO (Search Engine Optimization) to get a good visibility on the web. This involves for example working on the optimization of the website, and exchange links with external sites. This work allows you to reach, after a few months, the first page, when searching for keywords about travels. The luxury travel agency Aiguemarine is a successful example: with a few months of working on SEO, they now arrive on the first page on Baidu on keywords such as “luxury travel France” or “Germany luxury travel ” in Chinese, which significantly increased their Chinese customer base.

Conclusion

To conclude we can say that e-tourism has become an integral part of the lives of Chinese and is an important means to adapt to this growing market. If you want to take advantage of the million Chinese tourists expected in the world in the coming years, it is essential to adapt to the habits of the country, including e-tourism.

If you are a company of the industry sector, don’t wait to increase your e- reputation on the Chinese web, and your notoriety in the country, in order to attract many Chinese tourists and increase your Chinese customer base.

sources :

 

Olivier VEROT

Gentlemen Marketing Agency

 

 

 

Chinese people are fond of recomposed ancients Versailles’ fragrances Chinese people are fond of recomposed ancients Versailles’ fragrancesComments Off

The court of Versailles was famous for its fragrance to mask their lack of hygiene. The Palace of Versailles had in his library Perfume formulas of that time that has been blended with Synthesis molecules licensed by a brand: « Les Parfums de Versailles ».

The netizens were immediately fascinated by this symbol of the French perfume golden age.

Chinese are already passionate about the former Head quarter of the french aristocracy

The Palace of Versailles with its French gardens and cultural art galleries is visited annually by thousands of Chinese tourists. The idea of associating a fragrance with a monument has been very well seen by consumers.

Les parfums de Versailles: the alliance of modernity and tradition

Versailles is the golden age of French perfumery. The job of the perfumer was recognized during the reign of King Louis XIV who had a passion for perfumes.

During his reign fragrances became one of the symbol of the elegance and French life style.

The progress of the modern perfume industry has enabled the brand “Les parfums de Versailles” to make available to the Chinese public what was seen as the privilege of the French elite of that time.

That fascinates Chinese netizens who consider that purchasing one of these bottles is like buying a piece of history !

The art of the Buzz by Huawei The art of the Buzz by HuaweiComments Off

HUAWEI and Durex

HUAWEI, a Chinese leading cell-phone producer, becomes the focus of public attentions recently in China. The reason is not their appearance in the IT exhibition in Barcelona, but the rumor that they will release their new product which is the combination of the technologies from HUAWEI and Durex.

 

The picture of the rumor

 

As the formula shows: Durex + HUAWEI = emotion, it is supposed to be HUAWEI’s campaign for their new products: Ascend P2. Ascend P2 is branded as a thin and endurable which is also what a good condom should be.

However, HUAWEI made an announcement later to declare that they have nothing to do with the campaign.

But like usual, spicy joke and wired topic works not only catch millions of eyes from Chinese netizens but also their passion.

ZY2B030:  So HUAWEI users can have a convenient condom now.

Iamyuzheng:  “Protector” I like spiky ones!

Not all the netizens have the sense of humor; some of them show their dislike directly:

Asshole HUAWEI, Stupid campaign~~~Cooperation with Durex on the thinnest cellphone!! What a shameless company

That’s not the end of the story because rumor maker seems still unsatisfied.

HUAWEI and Apple

Another rumor goes viral these days that Apple authorizes HUAWEI to use its iOS system.  If it’s true, it means: HUAWEI + iOS = low price +high performance?

While some netizens got surprised :

FightForFreedom : WTF Do my eyes deceive me!!!!!!  

Some distrusts the news :

Alvinniness_C : Come on, even your toe will tell you it’s impossible

What’s interesting is that HUAWEI made an announcement again later to explain that they have nothing to do with the buzz.

But this time, many netizens seem to discover the reality.

 

Flirting Marketing ?

Penicilinum: After flirting Durex, HUAWEI goes to flirt Apple, is HUAWEI doing “flirting marketing”?

Anyway, the target of HUAWEI is reached. Millions of people and thousands of media are talking about this everywhere on Weibo, SNS or portals. For a promotion of new product, it’s a huge success!

From this case, the importance of SNS is totally shown. If there are no sensations on SNS, online public media will not talk about it. If media doesn’t care about that, people will take that much interest on the buzz.

Meanwhile, the image of HUAWEI Ascend P2 is also conveyed to the population in an unconscious way. The combinations between Ascend P2 and Durex and between Ascend P2 and iOS associate Ascend P2 with the image of thin, endurable and high performance.

Maybe some people will say that the buzz brings the negative impression, but the sale of Ascend P2 won’t lie.

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