It is about Digital marketing, Social Media & Ecommerce Overview in China Market. Let you have an overview on online & shopping behaviour in China Market

1. DIGITAL MARKETING IN CHINA 2014
PREPARED BY HESTER LAM

2. Factsheet in China
 Population : 13.4 billions
 Online shoppers: 5.64billions
 PC users : 4.70billions ( 9.7%)
 Smartphone users : 3.24 billions ( 25.2%)
Source : CNNIC (Aug 2013)

3.  Group buying took China by storm in
2011, > 513 million internet users in
2011 with a growth of 250% year on
year.
 Mobile commerce is on the rise, Taobao
is the major player in China Market
 34% of mobile internet users in China
transacting via smartphone and tablets
devices
 Most users aged <39
Source: http://www.incitezchina.com
Factsheet in China

4. • Average income range RMB
4000 – 6000 in 1st, 2nd Tier cities
(Source: China Statistical
Yearbook 2012)
• Income distribution various in
different regions
• Mini. Wage: RMB 1000
Factsheet in China
Source: MOHRSS

5. • Slightly more male internet users in China
• online shopper occupies 35% of total online users
• 2/3 of online population aged between 10 – 40
• Working adults aged 20-39 occupied 55.5% of online population
• Students aged occupied 30.2 % of online population
• Income group (RMB1500 – 5000) occupied 43.3% of online
population
• 71.5 % of online population living in urban areas (e.g. 1st and 2nd
tier city)
Online behaviors in China
Source: ADMA, 2012

6. Online behaviors in China
• Among heavy online users aged 18-27 (Nielsen
research, 2012)
• > 70% from urban districts (e.g. 1st and 2nd
tier cities)
• >90% of internet users earned RMB 5000
(USD 790) per month
 Active online behavior in China
• social networking
• play game
• Online chat
• Online entertainment such as video, music
• Blogging
• Common ecommerce activities in China
can refer toTable 1
Table 1
Source : CNNIC (Q2 2013)

7. • Average online spending / month:
Students: RMB 420
V.S Full time working adults: RMB 681
• 17% are heavy purchasers : RMB1000/ month
(income mean = RMB 5000)
1. contributed around 47% online sales revenue
2. 78% user of heavy users using weibo & SNS
3. Online behaviors: frequent visitors on online music/
video portal, online chat room, social media network,
search for F&B and travel information
• 70% of active social network users are full time
workers, college & university graduate  aged
19+ and white collar
Online shopping behaviors in China
(Source: Nielson’s research 2012, with 1000 online users, aged >10 in China)

8. Key factors for online shopping in China
(Source: ADMA, 2012)

9. Digital media summary in China

10. Digital media summary in China

11. • eCommerce segments in China
1. Young working adults (just graduated from high
school and university, aged 19+) is the great
potential segment in future (estimated online
spending amount RMB 600 – RMB 1000/ month)
2. 2nd line or 3rd line cities have a great potential to
growth in upcoming years
• What is target segment for ecommerce in China?
University students and young working adults aged
19 – 39 at 1st & 2nd tier cities
• Digital media is fragmentized in China, thus
suggested digital media strategy: Focus and
Tradeoffs!!!
My findings & conclusions:
Source: CIC

12. ECOMMERCE STRATEGY

13. Q1:WHAT IS OURTARGET CONSUMER FOR E-
SHOP / CAMPAIGNS?
• Aged 19+ , working adults, white collars in 1st, 2nd tier cities
• Income around RMB 5000/ month
• Or online spending at least RMB 500/month
• Active social networking and online / mobile shopping users
• Passion at online shopping, sharing shopping experience with others
• Love branded and premium products
• Love fun, fashion and self-achievement

14. Q2:WHAT IS OUR BUSINESS OBJECTIVE & KPI
METRICS FOR E-SHOP & DIGITAL CAMPAIGNS?
• Build brand awareness in specific countries / regions / cities ? Priority?
• Explore new market (i.e. a specific market)?
• Is it compete with your Physical shop, distributor or extended product line?What is your pricing
strategy & local market tariff and import policy?
• SEO ranking with xx time period?
• No. of click rate or traffic with xx time period
• Extend average page view duration (30s  1 min) with xx time period
• No. of new sign up for e-newsletter or fans with xx time period
• No. of new acquired member with xx time period
• No. of transaction with xx time period
• No. of re-visit with xx time period
• Specific purchase behaviors (e.g. no. of re-visit with 1 month,Average spending, upselling and
cross selling..etc, no. of referrals, ecoupon redemption rate ….etc)

15. Q3. HOWTO REACH SPECIFIC SEGMENTS &
FULFILLTHE OBJECTIVES WITHIN ASSIGNED
BUDGET?
1. Well defined target audience & their behaviors and media
fragmentation
2. Realistic target & KPI
3. Fixed budget / sales performance based budget v.s. Resource
allocation
4. Execution & Control
• Media budget allocation
• Media mix and scheduling
• Tracking performance v.s KPI, measure, control, fine-
tune..etc

16. HINTS &TIPS
1. Create awareness = domain name easy to remember,
searchable, reachable, brand re-calls
2. Create eshop traffic = interest & action to click and view
3. Desire / Needs &Take purchase action = offer incentive,
limit time and quota, sales conversion, revenue
4. Build loyalty = bonus scheme, repeat visit, purchase, iWOM,
recommend to friends (offer incentive)

17. Suggestion of Tactics
Digital media
1. SEM (keyword search) in Baidu with top
ranking
2. PPC Campaign + Paid ads banners in
Taobao, social media and Entertainment
sites: YouKu (No. 1), tudou, sohu, QQ
3. Official page in Sina weibo, Ren Ren, we
chat, QQ, Pengyou with campaign offer
and link
4. Eshop on we chat and T-mall
5. microblogging site: SinaWeibo, QQ
with campaign offer and link
Branding
1. Create a relevant, short and easy to
remember website domain
2. Use Asian Chinese / Korean
celebrity endorsement to support
website grand launch with ATL &
BTL campaigns
3. Online advertising campaign
4. Corporate social media page +
branding / sales campaigns
5. Large scale online campaign with
support with traditional media e.g.
outdoor ads or lightbox ads in main
transportation in 1st and 2nd tier
cities