Wealth, WeChat and Other Things…
The GroupM Knowledge-Hurun Wealth Report, 2013, released last week by the Hurun Research Institute offers an interesting insight in to the lives of China’s rich and famous, helping marketers to understand this group of wealthy consumers and how to engage them. The report details where they are living geographically, their investment consumption choices and most importantly their media usage. The overall number of millionaires in China (individuals whose personal wealth exceeded CNY 10 Mill) increased by 3% to 1.05 Million in 2012. While those classified as the super-rich (individuals with personal wealth exceeding CNY 100 Mill) increased by 2% in 2012 to 64,500. 2012 statistics show a decrease in personal wealth in China for the second consecutive year. However the current level of wealth is promising for companies involved in the luxury goods industry; for every 1,300 people in China 1 is a millionaire and for every 20,000 people 1 is a member of China’s super-rich class. So where do the rich chose to live? Right now Beijing remains the most popular place to live followed by Guangdong and Shanghai. This stated the report shows that Tianjin had the fasted growing wealth rate overall. However geography needn’t be a factor of restriction for online marketing as the report shows that 80% of all China’s wealthy people use the Chinese web app WeChat, in fact they prefer it over Sina Weibo; hint for targeting this group online. Interestingly, 73% believe that they are happier then Millionaires from the previous generation, and what do the rich want most? Apparently good health. Hello health products.
Source: China Internet Watch
Taobao Offers Education
Taobao has now launched the new addition to their offering, ‘Taobao Classmates’ an online market for educational course offerings, whether it be make-up or language learning, all can be now be open for business on Taobao. Basically education organizations, teachers, agencies and third party sites(Tmall) are allowed to set-up an online store selling educational content on including course videos and live broadcasts, course documents, even offline events. Although many established educational institutes had already set-up on Taobao this new offering allows the new ability for consumers to watch the course videos without leaving the platform and the official launch of this focused online market is expected to attract many more. Already Taobao Classmates has been well received with a number of well-known companies setting up stores and the platform predicts that unique visitors will reach 500,000 by the end of September, with further estimates of possible earnings equating to CNY 1 Billion per year.
Source: Tech Node
Mobile Video Takes Over
The latest China App Index report has just been released by Wandoujia, China’s leading android app store and it has confirmed what many had predicted, mobile video is taking over. Tudou and Xunlei Kankan apps report usage growth of 163 percent and 126 percent respectively. Amazingly the average length of time individuals spent using mobile apps grew a massive 259 percent from a previous 9 minutes to 31 minutes. This is not a huge surprise, major video sharing platform Youku has been telling tales of their user numbers sky-rocketing for awhile now, but this report puts statistics to these claims indicating to companies yet another fast evolving change from the Chinese consumers.
Source: Tech In Asia