Daily Digital Pulse of China: E-Payment, Digital Advertising, International Retailers & WeChat
E-payment business grows rapidly 2013
With 25.78 billion online orders and a turnover of 1.075 trillion yuan, Chinese E-payment business went up 27,40% compared to the previous year, according to data released by People’s Bank of China. E-payment includes three categories of payment services – online payment, mobile payment and phone payment. The turnover of the complete Chinese mobile payment industry rocketed to 9,64 trillion yuan ($1.59 trillion), meaning a growth of 317%.
Source: Tech Node
8 Facts about digital advertising in China
- Online shopping is one of China’s highest growth categories. In 2011 it had a growth of 30%, compared to 50% last year.
- 70% of China’s more than half a billion internet users are first-time users surfing the Web on a mobile device.
- The Chinese digital market will be larger than its TV market this year.
- The money spent on social media ads will grow faster than any other of the digital sub-segments. The compound annual growth rate (CAGR) will be up 67,6% by 2018.
- Mobile social will make up more than 10% of the Chinese digital market 2018.
- The growth of mobile usage leads to larger digital ad revenues. Chinese mobile-based advertising comprises 10% of digital ad revenues and 3.5% of the total ad revenues.
- After the U.S., China has the largest search advertising market in the world. Top five advertisers in China 2013 are P&G, China Mobile, Volkswagen, L’Oreal, & 360Buy.
- The most popular online activity is instant messaging (85%)
International retailers struggle online
Fast-fashion retailers expanded at a faster rate than luxury retailers in China last year. Companies like Zara, H&M and C&A opened more stores than planned, while 65 percent of the luxury retailers did not reach the expansion goal. However, international retailers are not doing a great job online, where domestic operators are dominating. The international retailers struggle with the Chinese online shopping for various reasons. According to a survey, made by KnightFrank, a few of the factors include difficulties of finding good quality sites, new policies on anti-corruption or a change in strategy for internal reasons. Domestic online operators account for circa 50 percent of the internet commerce, while international retailers represent less than 3 percent of the online market share. to know their customers long after they leave their stores.
Source: Retail In Asia
Luxury brands team up with WeChat for increased online presence in China
German luxury car manufacturer BMW launched a campaign on both WeChat and Weibo for the Lantern Festival (15th day of Chinese New Year). The brand posted a picture of a riddle written on a red lantern and asked followers to submit the correct answer. Burberry also engaged in a digital partnership with WeChat to strengthen their online position in China. The campaign lets WeChat users unlock exclusive audio content from senior members of the Burberry design team, as well as receiving behind the scenes footage from London Fashion Week. The digital innovation partnership is supposed to engage the Chinese consumer base and further establish Burberry on the growing international platform.
Source: Campaign Live
New rules forces Chinese E-sites to offer 7-day product returns
No more hustle without trouble. Starting March 15 all E-commerce sites must offer hassle-free seven-day product returns to their customers. The new regulation comes from China’s State Administration for Industry and Commerce (SAIC) and includes all items except perishable or virtual products like food, software and digital downloads. The new legislation is a positive step for consumer rights, although buyers still need to pay for the return mail fee. Obviously, all returned products need to be undamaged, and mailing time is not included in the seven-day period. Companies like Alibaba have prompted for better consumer conditions the last years in order to set themselves apart from rival sites. They will probably gain from the new rules since smaller companies have not prepared for the policy.
Source: Tech In Asia