COVID-19 // China POV Vol.11

1
Havas Group China
November 30th, 2020
EDITION
2020 #11

Havas Media China is again nominated in two categories
for Agency of the year by Campaign Asia
2
Nomination for
• China Media Agency of the Year
• Greater China Event Marketing Agency of the Year

3
In this edition
Key market developments
• Economic outlook
• Consumer behavior developments
• Key category outlooks
• Havas POV
China advertising market
• Advertising market development
• Media consumption update
• EC developments
• Media market news
• Havas POV

4
Economic outlook

In October retail market shows a higher growth driven by a
climbing consumer confidence
5Source: National Bureau of statistics of China 2020; Eastmoney 2020
Retail market recover further, 4.3%
growth in Oct.
9.6%8.9% 9.0%
8.3%
8.4% 8.5%
7.6%
7.8%
-20.5%
-15.8%
-7.5%
-2.8% -1.8%
-1.1%
0.5%
3.3% 4.3%
China Retail market YOY Growth Rate
124.3 124.6
126.6 126.4
118.9
122.2
116.4
115.8
112.6
117.2
116.4
120.5
117.8 118
120.7
120
115.4
117.8
112.3
111.3
108.9
111.9
110.8
115
128.5 128.9
130.6 130.7
121.2
125.2
119.3 118.8
115.1
120.6 120.1
124.2
Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20
consumers confidence index Consumer satisfaction index
Consumer expectation index

1. Overall Economy
China's economic and technological strength, and composite
national strength will increase significantly. A new stride will
be made in the growth of the economy and the per capita
income of urban and rural residents. Making major
breakthroughs in core technologies in key areas, China will
become a global leader in innovation
2. Industry Development
New industrialization, IT application, urbanization, and
agricultural modernization will be basically achieved. China
will finish building a modernized economy
3. Country System
The modernization of China's system and capacity for
governance will be basically achieved. The people's rights to
participate and to develop as equals will be adequately
protected. The rule of law for the country, the government,
and society will be basically in place
4. Culture
China will become a strong country in culture, education,
talent, sports and health. The well-rounded development of
all people and social etiquette and civility will be significantly
enhanced. China's cultural soft power will grow much
stronger
5. Environment
Eco-friendly ways of work and life will be advanced to cover
all areas of society. Carbon emission will steadily decline
after reaching a peak, and there will be a fundamental
improvement in the environment with the goal of building a
Beautiful China basically reached
6. Inter-country
The opening-up will reach a new stage with substantial
growth of the country's strengths for participating in
international economic cooperation and competition
7. People’s income
The per capita GDP will reach the level of moderately
developed countries. The size of the middle-income group
will be significantly expanded. Equitable access to basic
public services will be ensured. Disparities in urban-rural
development, in development between regions, and in living
standards will be significantly reduced
8. Country Safety
The implementation of the Peaceful China initiative will be
promoted to a higher level. The modernization of national
defense and the military will be basically achieved
9. People’s Life
People will lead a better life, and more notable and
substantial progress will be achieved in promoting well-
rounded human development and achieving common
prosperity for everyone
According to China’s newly published long-term goal towards
2035, the dual economy will be developed around 9 aspects
6
Fifth plenum long-term goal towards 2035

The RCEP trade deal was signed with 15 countries, to further
spur recovery from Covid-19
7Source: Ashley Talk
The RCEP is expected to eliminate a range of
tariffs on imports within 20 years. It also
includes provisions on intellectual property,
telecommunications, financial services, e-
commerce and professional services.
Is it important for China?
For China, RCEP aligns with it “dual circulation”
vision — refocusing on domestic demand
while taking advantage of trade and foreign
investment.
This marks the first time China enters a
nonbilateral free trade agreement of this scale.
15 countries includes:
China
Japan
South Korea
Australia
New Zealand
Indonesia
Thailand
Singapore
Malaysia
Philippines
Vietnam
Brunei
Cambodia
Myanmar and
Laos

China has started the 7th national population census. Audience
gifts show a strong dedication to keep China Corona safe
8
• China on Nov 1 started its seventh national population
count which conducted every 10 years, with about 7
million census takers going door to door to document
demographic changes in the world's most populous
country.
• The census collects data including name, ID number,
gender, marital status, education, and profession of
Chinese citizens.
• Residents are encouraged to use mobile terminals to
report personal and family information.
• Residents will get small gifts after the census
Source: Xinhua news

9
Consumer behavior
developments
Can we find a picture
without mask?

Double 11 dilemma – topline sales growth while brand profit and
likely consumer sentiment show a downward trend
Source: Tmall; Qiluwanbaowang
52
million
498.2
billion
Y2009
(1st year of double 11)
Y2020
27 brands participated 250,000 brands participated
Sales of Double 11 on Tmall
Consumer
sentiment
Brands
profit
Consumers highly postpone
purchase for necessary products
until double 11, rather than
create new purchases
With bigger discount and longer
timeframes, higher bidding against
competitive brands, profits go down
substantially
Consumer sentiment & brands profit on Double 11
10

Declining consumer sentiment for Double 11, consumer fatigue on
EC festivals increases more than in previous years
Source: Pedaily.cn
“I didn’t buy too much on this year’s double 11, only
spend 1000 rmb. Previous years I would store serum
and cream, usually would spend 3000 rmb.
今年双11我没买什么东西，只花了1000多元。往
年都要囤精华、水乳，可能会花个3000元左右“
“ I will have something left that I bought from last year
double 11, so there’s no need to refill. The purchase rules
are too complicated, I am not that interested as before.
去年囤积的产品没有用完，所以暂时不需要购买；平
台规则太复杂，自己的热情也大不如前了”
“It isn’t seen too much difference on price between
double 11 and daily live streaming,
现在的双11和平常直播（价格）没有太大差别。”
2. Less price advantage due to frequent EC
festival and live streaming
3. Complicated rules push consumers away
1. Rational consumption
11

The rising conscience of anti-consumption importance restrain
consumers to spend more on unnecessities
Source: JingDaily
During this Double 11, NetEase Strictly Select released a short film parodying
luxury ads like Gucci Perfume, Patek Philippe, Rimowa, and Adidas to
encourage netizens to buy the brand’s label-less products. When questioned
about the concept behind this video, a spokesperson for the company said,
“We are simply trying to say that we have eliminated high premiums for
consumers so that they can enjoy pragmatic products.”
The film was then redistributed by Chinese state media Xinhua News Agency
and other local media on Weibo in an attempt to cool off luxury shopping at
the festival. By November 11, two hashtags
#ConceptOfConsumptionOfModernYoungsters (#当代青年人的消费观#) and
#ConsumeNotConsumerism (#要消费不要消费主义#) have collectively been
viewed 164 million times.
Consumers, especially the young ones, are becoming
more prudent
60% of young consumers intend to plan more of their
consumption and reduce their impulse spending.
42% of young consumers intend to save more as a
result of the Covid-19
Conscious spending attitude is on the rise
12

Longer time period Live streaming Mini games
Hence, more and more Double 11 mechanisms are created to
stimulate consumption
13
The total number
of Tmall cat game
users exceeded
500 million
Oct 20th, Austin Li
sold 3.3 billion and
Viya sold 3.2 billion
The cumulative
time of Taobao live
streaming lasted for
1660 years
Mini games keep shoppers
coming back for more
Source: Tmall
Short decision time when
shopping at live streaming
Longer period, more
opportunities to shop more

From content to sales - social media apps are pushing integration of
sales function/EC process
14
Most Chinese social media apps have already integrated the
sales process. Here are a few prominent ones:
• Douyin has had its in-app store since 2018, where users can
instantly buy products
• Kuaishou employs the same concept while serving lower
tier cities.
• RED and Mogujie focus on beautiful pictures and are
teaming with influencers to drive traffic.
• Pingduoduo now has 568 million monthly active users as of
Q2. Group-buying is also social commerce. The platforms
offer prices that get increasingly discounted the more items
a group purchases.

China’s KOL industry maintains a momentum of evolution, higher
influence through micro KOLs and authenticity
15Source: PARKLU
Brands cancelled around 30% of the content collaborations they
had booked with the agency’s influencers in the month of April
alone.
Brands have switched their attention to micro-KOLs and micro-
influencers. The mechanics of working with micro-influencers are
like any KOL campaign. The brand uses the power of
endorsements to tap into the influencer’s fan base.
Many brands have also opted to forge their own path without
any help from influencers large or small. The economic and social
fallout from the pandemic prompted a surge in the number of
brands that decided to launch their own live streams.
Seeking out micro-KOLs and brands’ own
Livestream
Consumers still want to learn about and gain
recommendations on products and services, but they may
have grown disillusioned with putting faith in KOLs as
trusted messengers.
That’s a double opportunity for brands. Firstly, brands can
lean into developing their own content to try to present an
authentic face to the consumer
While consumers will form their own communities with
people, they are close to, brands can also create spaces
where like-minded consumers can forge, if not friendships,
then at least a sense of community.
Authenticity matters
KOL marketing in China is indispensable for brands,
particularly in the post-Covid world. By their nature,
these initiatives are difficult to scale. Brand-owned
communities are supposed to be exclusive to a tightly
defined group of consumers, and therefore, there’s a
natural upper to the number of consumers a brand will
be able to reach via its own community.
There’s no doubt that China’s KOL industry after COVID-
19 will continue to evolve in China and in the West.
However, KOL collaborations will remain an
indispensable part of how brands will market to Chinese
consumers.
KOL marketing in China is indispensable
for brands

16
Key categories outlook

As domestic travel demand recover over the summer domestic
airlines starts to report profit
Source: China travel news
• China Southern Airlines, which has the largest domestic
network among the country’s state-owned carriers, reported
the first quarterly profit (Q3 2020) since the pandemic hit.
• The airline, now the world’s largest as others have pared back
capacity, recorded a net profit of RMB 711 million following an
RMB 2.9 billion loss in the second quarter. Its nine-month net
loss amounted to RMB 7.5 billion.
• Rivals China Eastern Airlines and Air China both reported
narrower losses in the third quarter versus the second, though
most international flights remain grounded.
• Shanghai-based China Eastern, which has been rolling out
various “all you can fly” package deals, said its net loss
narrowed to RMB 563 million in the third quarter from RMB
4.6 billion in the second.
• Beijing-based Air China, the country’s flag carrier, said its net
loss shrank to RMB 671 million from RMB 4.6 billion to take its
nine-month loss to RMB 10.1 billion.
Chinese airlines plan to operate
84,634 domestic passenger
flights per week from late
October through March next year,
up 19.8% from a year earlier
18

Promotions like JD × Airlines lottery travel continue to be used
to stimulate demand for travel products
19
• Due to the precarious state of the epidemic situation,
airlines has associates with JD travel launched a new type
of travel product – lottery box travel recently to increase
flexibility in user travel planning.
• Lottery box travel product allows people choose destination
in a list that airline provides arbitrarily , therefore minimize
the impact of the epidemic on traveling.

Foreign tourism boards increasingly make use of Livestreaming
to keep awareness and promote their destinations
20
• Though global travel restrictions and quarantine-
periods still hamper movement in and out of China
foreign tourism boads have found a way to keep
pivoting to connect with China’s consumers at home
via Livestreaming.
• Tahiti and Switzerland tourism cooperated with MFW
and Taobao respectively to boost exposure and tell
stories online during single’s day shopping festival.

Airlines and OTA platforms also jumped on the Double 11 train
with attractive deals
21
• The famous Singles’ Day Sale held
annually on 11th Nov. is not only about
fashion, gadgets and other consumer
products. In the past years, travel
companies have taken advantage of the
events to offer amazing travel deals and
discounts to consumers.
• The strong rebound of China's domestic
travel during the 2020 annual Golden
Week holiday has brought hope to
international destinations. Though global
travel restrictions and quarantine-periods
still hamper movement in and out of
China, but foreign airlines like Qatar
Airways seize this chance to promote
their international routes.
Data source: https://mp.weixin.qq.com/s/7iSeVTkoKZh2rniqDULi5A; Chinadaily.com

Car sales keeps on showing as in September the category gained
12% in YoY sales
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2,809 1,718 2,656 2,319 2,288 2,274 1,889 2,103 2,394 2,380 2,548 2,661
2019 2,367 1,482 2,520 1,980 1,848 2,056 1,808 1,958 2,271 2,284 2,457 2,658
2020 1,927 310 1,430 2,070 2,194 2,300 2,112 2,186 2,565
0
500
1,000
1,500
2,000
2,500
3,000
Monthly car sales in China
23
• The auto market continues to recover and increased by 17.4% regarding MoM sales in September, and the YoY sales
also increased by 12.8%. The sales have maintained a growth rate of more than 10% for five consecutive months.
• PV YoY sales also continue the growth momentum, as sales increased by 8% YoY in September. The sales of three
types of PV: SUV, minibus and car all maintained growth, while the sales of MPV decreased compared with 2019 Sep.
• The NEV sales in September also kept growing, growth rate(+67.7% vs. last year), while the sales in Jan-Sep Y20
declined 17.7% compared with Jan-Sep Y19.
Source: China Association of Automobile Manufacturers (CAAM),China Passenger Car Association (CPCA)
Unit: Thousand

BMW Q3 profit rebounds thanks to China market
24
• FRANKFURT -- BMW's third-quarter profit rose almost 10
percent, boosted by rebounding Chinese demand for luxury
cars. BMW's quarterly pretax profit increased 9.6 percent to
2.46 billion euros ($2.87 billion), lifted by an 8.6 percent rise in
vehicle deliveries.
• BMW-branded vehicles saw a jump of 9.8 percent in deliveries,
mainly thanks to a 31 percent increase in China, which
accounts for almost a third of the automaker's vehicle sales.
China helped to offset a 16 percent drop in demand in the U.S.,
where sales were hit by the coronavirus pandemic.
• BMW reiterated it expected to achieve an EBIT margin of
between 0 percent and 3 percent for the automotive segment
in 2020. Despite a recovery in demand in some markets, it
expects overall deliveries as well as group pretax profit to be
significantly lower than last year after the pandemic shut down
factories and dealerships.
Source: Automotive News China

Chang’an to develop high-end EVs with CATL and Huawei
25
• Chang’an Automobile Co. is working with China’s largest
electric vehicle battery supplier, CATL, and leading
communication equipment maker Huawei Technologies to
develop high-end EVs. The project was disclosed by
Chang’an Chairman Zhu Huarong during a program aired
last week by state-operated China Central Television.
• Chang’an, based in the southwest China municipality of
Chongqing, builds minibuses, sedans and crossovers
under the Chang’an brand. The move makes Chang’an the
second state-owned automaker aiming to move upscale
with new EV products.
• With an expanded product lineup, Chang’an sales surged
20 percent to top 660,000 in the first three quarters of the
year, according to the China Passenger Car Alliance, the
data unit of the China Automobile Dealers Association.
Source: Automotive News China
Changan's headquarters in the south China municipality of Chongqing.

Luxury brands continue elevating experiential marketing. Cartier
launched their [SUR]NATUREL fine jewelry even with an exhibition
27
On Oct 13th, Cartier presented its new high jewelry
collection, [SUR]NATUREL, recently in Shanghai,
revealing a "nature that is more than nature" .
It is the first time the brand has released its latest
global high jewelry series in China.
On Oct 24th, Cartier invited many local celebrities(
宋佳 Jia Song, 李现 Xian Li, 宋茜 Victoria Song, 王景
春 Jingchun Wang, 王千源 Qianyuan Wang, 张亚东
Yadong Zhang, 刘天池 Tianchi Liu, 聂远 Yuan Nie,
高伟光 Vengo Gao, 窦骁Shawn Dou, 张雪迎 Sophie
Zhang, 黄龄 Yellow Zero) for this offline exhibition in
Shanghai to drive social buzz. It also take live
streaming on TMALL to warm up for the Singles’ Day
promotion.
The exhibition is open to public on Oct 25th/26th to
enhance the brand image to public.

28
Fendi combined offline and livestream in
O2O activation to celebrate Double 11
• Platform: WeChat, Weibo
• Medium: Livestream, short video, image, mini-
program
• Featured celebrity: Zhao Wei (85M Weibo Followers) |
Zhang Han (36M) | Xu Weizhou (13M) | Zeng Keni
(4M) | Zhang Zhehan (11M) | Liu Lingzi (4M) | Tan
Zhuo (8M) | Jia Fan (1M) | Wu Yuheng (815K) |
Fanguangjing Band (451K)
• Fendi celebrated the Double 11 shopping festival with
an offline party at the Shanghai TX Huaihai shopping
mall and a livestreaming event on Weibo on
November 11. The Fendi Pack Collection, launched
online on November 10, was introduced via the
livestream. The livestream invited over ten celebrities
such as brand ambassador Zhao Wei and Xu Weizhou,
as well as fashion KOLs like Mr. Jiliang.
Campaign Summary
Result
• Campaign hashtag “FendiRomaParty”: over 72.54
million views in one day
• Livestream: over 11.2 million viewers in three hours
• Online traffic was predominantly driven by the
celebrities: Xu Weizhou, Zeng Keni, and Zhang Han.
• The moderators included Linda and Fu Peng, who was
top livestreamer Li Jiaqi’s assistant, also contributed
to the online and offline engagement throughout the
event.

少年之名 x Pandora 直播少年之名 x Pandora 七夕“链”爱专场直播
Pandora leveraged local celebrity and livestreaming to promote
new products
Pandora 少年之名 live streaming are promotion-driven for new products on on Yizhibo
29

30
Havas POV

Collective consumerism; falling Double 11 sentiment as a first
glance of a changing consumer attitudes
31
• As the domestic retail market further recovers with a 4.3% growth and Double 11 again showing a double-digit growth,
Chinese consumers seem to get back to their path of consumerism.
• To what extend does the conscience of the need for a better of environment and society, the level of attained
development and the effect of Covid-19, change Chinese consumer’s mind set and buying hunger? And what about
the resonance into buying behavior of governmental policies that are ramping up, which started with garbage sorting,
the clean plates propaganda and most lately its instrumental importance for collective and sustainable environment
care in its newly published 5-year plan?
• Already in Havas Groups Meaningful Brands China research in 2017 and 2019, we saw while buying products being still
one of the main drivers for “happiness” and “life satisfaction”, higher tier consumers are shifting more towards less is
more, buying less but better quality. Also we noticed that collective good causes facilitated by brands more easily have
gotten support by consumer spending, especially in a social media environment.
• The falling Double 11 sentiment might be a further sign consumer fatigue on EC festivals. In the last few years and
especially this year EC festivals got ramped up and every Chinese cultural festival was turned into an EC shopping
event. Consumer’s mindset is clear that there is always on something on “sale”, which doesn’t urge them to buy extra
but rather buying at a lower price.
• The “enough is enough” sentiment has become visible. We see (higher tier) consumers caring more about longer
lasting, higher quality, more environmentally friendly, local economy supporting products, while more enticed to buy
when they need it, less because it is 11.11. again.

32
Advertising market
development

Month by month comparison
52,022
46,087
42,704
10,000
20,000
30,000
40,000
50,000
60,000
2018 Sep 2019 Sep 2020 Sep
-7%
YTD vs YTD comparison
461,775
420,358
333,379
100,000
200,000
300,000
400,000
500,000
YTD 2018 YTD 2019 YTD 2020
-20%
Source: ADP (TV, Radio, Newspaper, Magazine, Cinema), CODC (OOH), Iresearch (Digital – PC & Mobile) 2018-2020
Note: excluding media spending on social and search; discounts are estimated based on Havas methodology
-
10,000
20,000
30,000
40,000
50,000
60,000
1 2 3 4 5 6 7 8 9
2020 2019 2018
Monthly spending
Monthly ad spend continues to recover and activity gap caused by
COVID continues to decrease as market activities intensify
• In September 2020, the total actual* Ad market in China achieved RMB 43 billion; minus 7% compared with last September.
• YTD September 2020, the total actual* Ad market in China achieved RMB 333 billion; minus 20% compared with same period last year.
• YTD comparison in August was -22% while in September the gap was reduced to -20% only
33

Digital media remains the main battlefield, more and more the
primary media choice for most advertisers
2019 YTD Ad Spend Market Media Mix
Digital, 41.3%
TV, 29.1%
Outdoor,
23.4%
Cinema, 2.9%
Radio, 2.1% Newspaper,
0.7%
Magazine,
0.5%
34
• YTD September 2020, 70% of overall media investment through Digital and TV, which is similar to the same period last year.
• Outdoor spending share has increased significantly, while other media spending share continues to drop further
• In specific industries such as TLA and IT Product & Service category, the share of digital raised up to over 70% of total media investment.
2020 YTD Ad Spend Market Media Mix
Digital, 40.1%
TV, 28.6%
Outdoor,
28.2%
Cinema, 0.5%
Radio, 1.7% Newspaper,
0.6%
Magazine,
0.4%

6.8%
10.5%
-6.5%
23.1%
-2.4%
6.2%
6.1%
-25.1%
-33.1%
16.2%
-12.1%
-5.7%
-4.7%
3.2%
-15.2%
- 5,000 10,000 15,000 20,000
FOODSTUFF & BEVERAGES
PHARMACEUTICALS
BUSINESS & SERVICES
IT PRODUCT & SERVICE
ALCOHOL
PERSONAL ITEMS
HOME ELECTRICAL APPLIANCES
LEISURE
COSMETICS & TOILETRIES
FINANCE INDUSTRY
POST & COMMUNICATION
HOUSEHOLD
TRANSPORTATION,LOGISTIC & AUTO
REAL ESTATE & CONSTRUCTION
CLOTHING
35
2020 Sep Media spending & YOY growth rate
by category versus 2019 Sep
• Compared with September 2019, Finance,
IT ,Pharma and Food & Beverages categories
have increased their spending.
• The Food & Beverages category reported
RMB 11 billion ad spend and was ranked 1st
among all the categories.
More and more categories accelerate their investments

36
Media consumption
update

In October TV rating show seasonal decline, but also drop below
2019 levels across all markets
5.9 6.4 5.5 5.4 5.4 5.3 5.5 5.7 5.6 5.6
6.9
9.5
7.2
6 5.7 5.4 5.4 5.6 5.3 5.2
0
5
10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2019 2020 Tier 2
37Source: Infosys, Target:P18-45, Period:2020/01/01 – 2020/10/31, Timeslot: All Day Tier1 including（BJ、SH、GZ、 SZ）,Tier2 including almost Provincial capital
6.2 6.8
5.2 5 5 5.1 5.3 5.2 5.4 5.3
7.2
10.2
7.2 6.5 5.4 5.1 5.3 5.4 4.9 5
0
5
10
2019 2020
Tier 1
4.9 5.8 4.9 4.7 4.6 4.5 4.8 4.9 4.7 4.7
6.5
9.2
6.5
5 5.1 4.9 4.9 4.9 4.3 4.3
0
5
10
2019 2020
Others

TV dramas in HN STV achieved extraordinary performance.
Regarding variety shows, top 4 satellite TV shows their talents
38
Drama Hunan STV dramas won the first and second place in October
Variety In early Q4, new variety shows of top 4 satellite TV face fierce competitions.
Jiangsu STV
在一起
Ave Rtg 1.09
Dragon STV
瞄准
Ave Rtg 1.12
Hunan STV
向阳而生
Ave Rtg 1.93
Hunan STV
亲爱的自己
Ave Rtg 1.99
Jiangsu STV
越过山丘
Ave Rtg 1.05
Dragon STV-
我们的歌
Ave Rtg 1.53
Zhejiang STV-
美好奇妙夜
Ave Rtg 1.80
Hunan STV-
中餐厅Ave Rtg
1.40
Hunan STV-
姐姐的爱乐之程
Ave Rtg 1.30
Jiangsu STV-
一千零一夜
Ave Rtg 1.70
Source: Infosys, Target:P18-45, Period: 2020/10/01-2020/10/31, Timeslot: All Day Market: 57 Markets

Triggered by Double 11, EC apps usage increased, also travel and
navigation app usage rose in October due to national holidays
39
Source: iResearch, period: 2020.01-2020.10
21
23
87
171
291
384
418
410
792
1,260
22
23
78
192
275
383
426
447
847
1,247
Health & medicare
Food delivery & Recipes
Education
Travel & Navi
Gaming services
General news
Financial service
EC
Video services
Social networking
2020 Oct DAU
2020 Oct
2020 H1
Unit: Mil
2010 H1 VS. 2020 Oct
growth rate
-1 %
+7%
+9%
+2%
0%
-6%
+12%
-10%
+3%
+1%

Social app usage remains on a high stable level, WeChat continues
its positive momentum while other apps remain stable
40
896
344
182
13 16
916
323
214
15 14
928
314
193
15 14
928
314
192
15 14
WeChat QQ Weibo LRB Baidu Tieba
2020 Top 5 Social Apps by DAU
2019 avg.
2020 H1
2020 Oct
2020 Nov(till 8th)
Unit:
Mil
1220 1,260 1,247 1,239
92.5 93.5
88.9 89.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
0
200
400
600
800
1000
1200
1400
2019 avg. 2020 H1 2020 Oct 2020 Nov(till
8th)
2020 Social Networking Apps User Behavior
Average DAU Average time spent
Unit:
Mil
Unit:
mins
Sources: iResearch, period: 2019-2020.11.08

Compared to H1, OTV apps usage dropped while time spent has
increased significantly. Bilibili continues its positive momentum
41
167
153
78
32
22
181
164
92
44
26
163
143
70
41
31
161
145
70
41
31
iQIYI Tencent Video Youku Mango TV Bilibili
2020 Top 5 Online Video Apps by DAU
2019 avg.
2020 H1
2020 Oct
2020 Nov(till 8th)
Unit:
Mil
365
422
383 382
112.1
121.2
130.3 134.4
0
20
40
60
80
100
120
0
100
200
300
400
500
2019 avg. 2020 H1 2020 Oct 2020 Nov(till
8th)
2020 Online Video Apps User Behavior
Unit:
Mil
Unit:
mins

Short video continues its stable usage trend driven by Douyin &
Kwai who have more than doubled their user base since last year
42
430
609 591 610
40.3
112.8
118 115.6
0.0
20.0
40.0
60.0
80.0
100.0
120.0
0
100
200
300
400
500
600
700
800
900
2019 avg. 2020 H1 2020 Oct 2020 Nov(till
8th)
2020 Short Video Apps User Behavior
Unit:
Mil
Unit:
mins
211
123
52 46
3
391
251
47 38
24
404
257
44 33 24
401
259
44 33 23
Douyin Kwai Watermelon
Video
Douyin Volcano
Edition
WeSee
2020 Top 5 Short Video Apps by DAU
2019 avg.
2020 H1
2020 Oct
2020 Nov(till 8th)
Unit:
Mil

Compared to H1, News apps show stable usage while daily usage
of gaming apps has dropped
344
384 383 391
46.9
54.2
50.5 52.3
0.0
10.0
20.0
30.0
40.0
50.0
60.0
0
100
200
300
400
500
2019 avg. 2020 H1 2020 Oct 2020 Nov(till
8th)
2020 General News Apps User Behavior
Unit: Mil
Unit:
mins
249
292
275 271
70.2
75.9
78.5 78.3
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
0
50
100
150
200
250
300
350
400
2019 avg. 2020 H1 2020 Oct 2020 Nov(till
8th)
2020 Gaming Apps User Behavior
Unit: Mil
Unit:
mins
43
43

279
73
37
16 10
286
86
40
18 11
325
88
39
19 12
373
105
51
19 13
Taobao Pinduoduo JD.com Xiaomi Mall Tmall
2020 Top 5 EC Apps by DAU
2019 avg.
2020 H1
2020 Oct
2020 Nov(till 8th)
Unit:
Mil
Triggered by Double 11 EC usage jumped, Taobao, Pinduoduo
and JD benefit the most
363
410 447
507
17.9 16.9 17.3
19.0
0.0
5.0
10.0
15.0
20.0
0
100
200
300
400
500
2019 avg. 2020 H1 2020 Oct 2020 Nov(till
8th)
2020 E-commerce Apps User Behavior
Unit: Mil Unit:
mins
44

This years Double 11 hit new sales records
46
Total Double 11 Sales: Nov 1, 00:00 - Nov 11, 24:00
Tmall: 2020 Double 11 attracted 800 millions of consumers, 250,000
brands and 5 million merchants to participate, which has the broadest
coverage and engagement. 342 brands achieved total sales over
￥100M during D11.
JD.com: fresh products, supermarkets, home appliances, electronic
products, books, luxury are top growing categories.
Suning: GMV boosted to ￥50M just in 19 minutes after 00:00 of Nov
11. Total number of D11 online orders increased by 72% YoY. Home
appliances, electronics, personal care products, clothes and FMCG are
top growing categories.
Pinduoduo: PDD launched iphone 12 officially on Nov 11 and
broadcast on Hunan TV, providing huge coupons to consumers.
Tmall sales JD.com sales
￥498,200,000,000 ￥271,500,000,000
Data Source: 亿邦动力
0
100,000,000,000
200,000,000,000
300,000,000,000
400,000,000,000
500,000,000,000
600,000,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tmall YoY Double 11 Total Sales

In terms of sales and reach Double 11 is getting bigger every year and
is no longer just a discount focused shopping festival
47
Participating digital giants are now leveraging livestreams, new product launches, and novel technologies to enhance customer engagement
and the buying experience.
Exclusive Launches:
While deals and savings are still top of mind for consumers when it comes to Double 11, new product launches are also driving many to the
shopping event this year. For example, Taylor Swift’s product launch on Tmall, Jordan Brand releases new Air Jordan 6 WMNS “Singles
Day” sneaker on this event.
In the past, Alibaba invited celebrities, including Nicole Kidman, Mariah Carey, and Pharrell Williams, to show up on 11/11. This year,
“retailtainment” remains at the heart of the festival with livestreaming fashion shows and pre-event galas. Alibaba, as well as other major
players like JD.com, Pinduoduo, and Suning have leveraged partnerships for their shows to be broadcasted on TV and online streaming.
Double 11 is a must-see for tech watchers, as many of China’s digital giants have used events to highlight retail tech, including virtual reality
(VR) shopping, QR code payments, and livestreaming commerce.
According to AlixPartners data, 96% of adults surveyed plan to participate in 11/11 this year, vs. 92% in 2019.
Data Source: eMarketer
Exclusive launches
Entertainment
All Eyes on Tech

This year livestreaming was fully integrated
48
Merchant KOL &
Celebrities
Tmall Official
Merchant 300 Celebrities
500 CEOs
JD Official
Celebrity
KOL
Merchant+KOC
2 Live Shows
2000 themed live streams
3000 brand live streams
50000 Rural Live streams
13 super buyer live streams
Activated official livestreaming and expanded scale
Dedicated to supply chain efficiency and accelerate
cross-border cooperation
Leveraging hundreds of CEOs in livestreaming Deep dive live streamer resource and activate potential
Activated official livestreaming and expanded scale
Dedicated to supply chain efficiency and accelerate
cross-border cooperation
Data Source: Havas Study

And the shopping festival period was extended
49
Preparation Presale PeakCategory Extend
Preparation 1st Presale 2nd Presale
1st
Blast
Final
Blast
2nd
Blast
2nd Warm-up Peak Long tail
1st
Blast
Merchant training – Fans Day – Tasks for lucky draw
Super Category Carnival – Super Fans Benefit
– All category blast
10.1-10.20 10.21-10.31 11.1-3 11.4-11.10 11.11 11.12-14
Data Source: Havas Study

Main EC platforms cooperated with TV stations for content &
entertainment
50
On Nov 10, four main ecommerce platforms launched Double 11
live event leveraging television partnerships:
Tmall: in cooperation with Zhejiang TV, Dragon TV and Youku
JD.com: in cooperation with Jiangsu TV and iQiyi
Suning: in cooperation with Beijing TV
Pinduoduo: in cooperation with Hunan TV and Mango TV
Data Source: iresearch, China Economy Newspaper
D11 Live Event TV Audience Rating (Nov 10. 19:30 - 24:00)
Tmall JD.com
Pinduoduo Suning
Data Source: CSM Real Time Rating

And used live shows for a new shopping experience
51
Tmall, Suning, JD and Pinduoduo upgraded entertaining content and celebrity interaction with consumers in Double 11 live
show, launching a new shopping experience: buying while watching TV and engaging with celebrities & KOLs.
Crossing-screen live stream,
Combining shopping with
entertainment
Leverage multiple TV and online
streaming media partners,
communicating Double 11 Show.
Tmall Double 11 Live Show
Lifestyle IP, talk show and celebrity
performance bringing innovative
Double 11 experience.
Tmall Double 11 Opening Live Show Suning Double 11 Super Show JD Double 11 Super Night

Key trends: New news, content & entertainment to drive engagement and
sales
52
Content: seeding and look aroundGamification: combination of retail and entertainment
A discount campaign is not
enough to create a sense of
urgency. As Double 11 attracts
more and more attention, many
brands release new products to
bring unexpected growth.
In 2020 Double 11, Huawei and
Apple both announced new
phone launches.
Gamification is one Double 11 marketing strategy
pushing consumers to make quicker purchase
decisions, especially for Gen Z audiences. During
Double 11, Tmall’s Cat-feeding game became
trending social e-commerce game and helped in
driving traffic and consumer engagement.
In 2020, more e-commerce
platforms (Tmall, JD, Suning,
Pinduoduo) leveraged TV
partnerships and launched live
shows with innovative ideas.
Tmall, for example, moved 17
top KOLs and their livestreaming
rooms to the central stage and
initiated screen-crossing feeling
as fresh-new shopping
experience with high consumer
engagement.
Livestreaming is considered as the
most important battlefield on
each Chinese e-commerce
platform. Merchants leverage
KOL, brand employees and CEOs
for livestreaming. Taobao
provided VR technology like online
property viewing and virtual
vehicle test drives. JD.com worked
with popular Chinese standup
comedians to host a relaxing and
funny live stream.
Taobao APP changed to new design before
Double 11, putting more emphasis on
content and “look around” concept. The
homepage central banner ad has shrunk
to a smaller version, allowing soft ads such
as short video content seeding and feeds
have become more important. Diversified
content seeding will encourage consumers
to convert while just “looking around” on
Taobao.
Double 11 live shows Livestream continues to be central stageNew, instead of super discount

53
Media market news

Toutiao launched a new integrated opening ad format in Nov
54
Toutiao launched a new opening ad format in Nov. Huawei, the
famous Chinese mobile brand was invited as key client to test
the new format.
• New opening ad format integrated opening ad with pop up
ad and feeds ad, showed rich brand information by an eye-
catching effect.
• Furthermore, this new format can display over 10 seconds,
and obtain better CTR compared to traditional opening ad.
• However, the new format need better creative and
production capability of ad materials, which should be taken
into consideration in media planning.
OPENING VIDEO + POP UP VIDEO + FEEDS Ad
New format is in testing period

Data source: Mango TV
New Format on MangoTV: Super Show
At first glance, it attracts the eyes and grabs the
viewer's mind and achieves an unforgettable effect.
Power on for 5 seconds + first focus 15 seconds (up
to 30 seconds), which can bring a complete display
of creativity.
Full screen display
Extend exposure time
Open video 5s plus 1st focus 15s video
55

Q4 drama trends of PSTVs and OTVs
56Data source: https://www.thepaper.cn/newsDetail_forward_9569753
PSTVs are stable, and focus on urban, suspense, and mainstream dramas.
Judging from the current PSTVs Q4 on-air, to-be-broadcast, and ready-to-
broadcast dramas, innovative works of large genres are relatively rare, and
works of urban and theme genres are favored by PSTVs. For casting the
focus lies on actors with certain national recognition.
OTVs multi-type layout, more vertical and more diverse
OTV boutique short episodes drama such as "Goodbye, My Love" and
"The Long Night" ended with high popularity and high reputation, making
the Q3 suspense short series battlefield fierce. Now the OTVs are shifting
to urban love story, sweet love story. Reach the audience with more
relaxed themes.

OTV – New program hot Drama
57
棋魂 – Hikaru no go
Period: 2020 Oct 27th
Episodes: 36
Cast: 胡先煦、张超、郝富申、韩沐泊、翟冠华、纪李
Media: IQIYI
Introduction
The play is adapted from the classic Japanese comic "Hikaru no go" drawn by
Yumi Horita and Takeru Obata. Shi Guang discovered an ancient chessboard by
chance and got acquainted with Chu Ying, the first Nanliang Go player who has
been on the chessboard for thousands of years. Shi Guang gradually became
interested in Go under his influence and inspired to become a professional Go
player.

TV/OTV – New program hot Drama
58
瞄准– Sniper
Episodes: 57
Cast: 黄轩、陈赫、杨采钰、李溪芮、张洪睿、林栋甫、姚安濂、迟志强、付枚、
王砚辉
Media: IQIYI、Tencent、Youku、MangoTV 、东方卫视、浙江卫视
Introduction
The play tells the story of Su Wenqian and Chi Tiecheng, two ace sniper partners
who once fought side by side and cooperated perfectly. Because of the
differences in beliefs, they changed to the opposite sides. In a life and death
duel they ended up with different destinies.
The suspenseful plot and the film-like time-space narrative style break the
audience's stereotype of "period drama", which is very in line with the current
audience's demand for drama pursuit.

TV/OTV – New program hot Variety
59
嗨唱转起来2– Sing or Spin 2
Period: 2020 Oct 2nd
Episodes:12
Cast: 谢娜、潘玮柏、大张伟
Media: MangoTV、湖南卫视
Introduction
"Sing or Spin 2" convenes music experts from all fields to sing classic songs with
contemporary significance. The iconic round turntable stage has become the core
gameplay: the singer needs to sing for 60 seconds to impress the program guests to
get the opportunity to "turn out" the stage and stand in the C position; After the
second round of singing, the audience will vote to decide whether the challenge is
successful.
When the music variety show became a new window for the people to decompress,
"Sing or Spin 2" was given a warmer spiritual mission-to give the current negative
pressure group a temporary release in music.

TV/OTV – New program hot Variety
60
我们的歌第二季 – Our Song 2
Episodes: 12
Cast: 林海、谭咏麟、钟镇涛、容祖儿、张信哲、李健、希林娜依·高、冯提莫、
太一、李玟、孙楠、陈小春、常石磊、邓紫棋、王源、郑云龙、GAI
Media: IQIYI、Tencent、Youku、BesTV+、东方卫视
Introduction
This variety show pairs up new Chinese singers with popular and well-established
Chinese singers to bring you a new version of classic award-winning songs. At the
same time, they will compete with their performances.

61
Many movies launches announced for Christmas and New Year
Data source : Focusfilm

62
Havas POV

Fierce battle as brands and platforms are fighting for audiences,
attention and sales during Double 11
• E-commerce is at an all time high, with Double 11 dominating the last few weeks not just online but also via mass broad casting on TV
including shopping shows and large presence in OOH.
• Very high clutter during the extended festival period of Double 11 led to a fierce competition for audiences, attention and sales
• TV rating showed seasonal decline and remained also in October below 2019 levels
• While OTV usage has increased significantly since last year, October and early November data show a decrease compared to the first half of
2020. iQiyi and Tencent Video active remain the top platforms, but their active user base declined significantly and dropped even below
2019 levels. At the same time Bilibili managed to continue its positive momentum and is growing its userbase further.
• Social media remains on its stable high level, while short form video has now been well established. Since last year Douyin and Kwai more
than doubled their user base and continuously manage to sustain it. While the growth rate of short video apps has slowed down, it
became clear that it is not just a short-lived trend, but here to stay. For advertiser, its important to select the right platform and customize
assets by channel to ensure message and format match platform purpose to catch audience attention.
• This year Double 11 broke sales and traffic records again, but the festival continuous to evolve. This year the festival had an extended
period and more focus on entertainment, content, live show, etc. Double 11 continues to change rules and trends every year, but the only
evergreen keyword is NEW. Content has become the main traffic and conversion driver in ecommerce platforms. Brands must create
innovative short video and shareable content for engagement and traffic.
• Livestreaming remains the key battlefield and continues to evolve and diversify. Brands need to build their own Celebrity x KOL x KOC
“matrix” for broader communication and higher engagement.
• Many blockbuster are scheduled for release for the holiday period at the end of the year. As consumer interest is high cinema provides an
excellent platform for high impact branding.
• New and innovative formats can help you to break through the intensifying clutter. Your Havas team can help you tailor your overall
marcom strategy to drive brand and sales, including adjusting your EC strategy based on the latest developments.
63

64
While Shopping festivals like D11 drive short term sales brand
profitability declines, hence for 2021 “profitable growth” will be key
• In 2020 brands continue to focus on activations, EC festivals and other activities to drive
sales and recoup business. While sales activations produce short-term sales uplift, they
also reduce profitability due to high cost with fees, commissions, higher media spend and
higher internal cost.
• For sustainable growth brands must balance short-term sales eﬀorts with longer-term
brand building to create efficiency, as they can not survive by pure sales activations like
EC festivals, live streaming and special editions due to the high cost of acquisition.
• To ensure profitability brand pull effect, that creates longer lifetime consumer value (LTV)
and lower cost of consumer acquisition (CAG), needs to get higher priority.
• Brands will need to find the right balance between branding and activations. Also brand
consistency in activations will be key combined with a full EC ecosystem beyond 3rd party
platforms.

Our Havas Village can help
you drive your business
through every touchpoint
65
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