Digital Trends - China - March 2016


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Mintel

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Chinese consumers are open to purchasing and using digital products, and multifunctional digital products with enhanced features may be attractive to Chinese consumers. Smart TVs see the potential to grow in terms of both penetration and as a marketing channel. To attract visit, offline stores can leverage the power of technology, such as virtual reality and augmented reality.

Table of Content

Overview

What you need to know
Products/themes covered in this report
Personal computer (PC)
Mobile phone
Television (TV)
Camera
Gaming console
Wearable digital products
Demographic classification
Household income

Executive Summary

The market
Smartphones continue to dominate, while smart TVs see growth potential
Figure 1: Ownership of digital products, March 2014, April and December 2015
Consumers are willing to spend on technology and communication
Applications of VR and AR technology
Bricks-and-mortar stores using technology to enhance experience
The consumer
Consumers prefer multi-functional digital products
Figure 2: Attitudes towards digital products, December 2015
Different types of digital product consumers
Figure 3: Different types of digital product consumers, December 2015
No significant gender and city tier difference among Early Adopters
Tech Savvies are skewed to males under 40
Affluent consumers show preference for specialised products
Switching-off consumers tend to be tier one residents with high income
Consumers have slimmer portfolio of digital products
Figure 4: Types of digital products owned, March 2014, April and December 2015
Penetration of smart TVs increases
Figure 5: Ownership of digital products, March 2014, April and December 2015
Consumers are actively using their smartphones, smart TVs, wearable devices and smart home appliances
Figure 6: Usage trend of smartphones, smart TVs, wearable devices and smart home products, December 2015
Figure 7: Activities on digital products, December 2015
Consumer are interested in in-store digital facilities
Figure 8: Attractive in-store digital facilities, December 2015
What we think

Issues and Insights

Attracting purchase of new digital products
The facts
The implications
Opportunity for multifunctional products with enhanced features
The facts
The implications
Marketing to affluent consumers
The facts
The implications
Attracting visit to bricks-and-mortar stores by technology facilities
The facts
The implications

Market Trends – What You Need to Know

Smartphone is the major device for accessing the internet, while smart TV sees potential to grow
Marketers actively adopt AR and VR technology in marketing campaigns
Bricks-and-mortar stores using technology to enhance experience

Market Trends

Smartphones have become the major devices for accessing the internet
Figure 9: Chinese mobile internet users, 2007-15
Smart TVs see potential to grow
Figure 10: Ownership of digital products, March 2014, April and December 2015
Consumers are willing to spend on technology and communication
Figure 11: Chinese technology and communication expenditure, 2010-15
The development of VR and AR technology
Application of VR and AR technology in marketing communication
Bricks-and-mortar stores using technology to enhance experience

The Consumer – What You Need to Know

Consumers prefer multi-functional digital products, and also show interest in specialised products
Profiles of different types of digital product consumers
Consumers have fewer types of digital products, while the penetration of smart TVs sees increase
Consumers purchase smartphones most frequently
Consumers are most actively using smartphones, while tablets are used for fewer types of activities
Consumers tend to reduce entertainment activities on digital products
Mobile payment and free Wi-Fi are most attractive in-store digital facilities, while families with children are interested in fun-to-use devices

Attitudes towards Digital Products

Consumers prefer multi-functional digital products
Figure 12: Attitudes towards digital products, December 2015
Consumers are open to purchasing new digital products
Figure 13: Attitudes towards digital products, December 2015

Different Types of Digital Product Consumers

Definition of different types of digital product consumers
Figure 14: Definition of different types of digital product consumers, December 2015
No significant gender and city tier difference among Early Adopters
Figure 15: Early Adopters and Laggards, December 2015
Figure 16: Early Adopters and Laggards, by demographics, December 2015
Figure 17: Attitudes towards digital products, by different types of consumers, December 2015
Tech Savvies are skew to males under 40
Figure 18: Tech Savvy and Trend Followers, December 2015
Figure 19: Tech Savvy and Trend Followers, by demographics, December 2015
Figure 20: Attitudes towards digital products, by different types of consumers, December 2015
Affluent consumers show preference for specialised products
Figure 21: All-in-one and Specialised, December 2015
Figure 22: All-in-one and Specialised, by demographics, December 2015
Switching-off consumers tend to be tier one residents with high income
Figure 23: Always-on and Switching-off, December 2015
Figure 24: All-in-one and Specialised, by demographics, December 2015

Ownership of Digital Products

Consumers have slimmer portfolio of digital products
Figure 25: Types of digital products owned, March 2014, April and December 2015
Figure 26: Types of digital products owned, by different types of digital product consumers, December 2015
Ownership of digital products tends to be stabilised
Figure 27: Ownership of digital products, March 2014, April and December 2015
Penetration of smart TVs increases
Figure 28: Ownership of digital products, March 2014, April and December 2015
Penetration of digital cameras, e-readers and non-smart TVs declines
Figure 29: Ownership of digital products, March 2014, April and December 2015
Digital cameras have the chance to attract Early Adopters
Figure 30: Ownership of digital products, by Early Adopters and Laggards, December 2015

Usage Trend of Digital Products

Consumers are increasingly dependent on smartphones
Smart TV can be effective marketing channel targeting affluent consumers
Figure 31: Usage trend of smartphones, computers and TVs, December 2015
E-readers, gaming consoles and digital/video cameras face challenge
Figure 32: Usage trend of wearable digital products and smart home appliances, December 2015
Optimistic future for wearable devices and smart home appliances
Figure 33: Usage trend of wearable digital products and smart home appliances, December 2015

Purchase Cycle of Digital Products

Consumers purchase smartphones most frequently
Figure 34: Purchase cycle of digital products, December 2015
Digital cameras and TVs have opportunities to attract purchase
Figure 35: Purchase cycle of digital products, December 2015

Activities on Digital Products

Consumers are actively using smartphones for online activities
Figure 36: Activities on digital products, December 2015
Computers are mostly used for working, playing games and shopping
Fewer types of activities on tablets
Figure 37: Average types of activities on digital products, December 2015
Consumers tend to reduce entertainment activities on digital products
Figure 38: Gap of online activities, by different digital devices, April and December 2015
Early Adopters are more actively using digital devices
Figure 39: Average types of activities on digital products, by Early Adopters and Laggards, December 2015

Attractive In-store Digital Facilities

Mobile payment, free Wi-Fi and coupon machines are most attractive
Figure 40: Attractive in-store digital facilities, December 2015
Wealthier consumers are more attracted to in-store digital facilities
Figure 41: Attractive in-store digital facilities, by monthly household income, December 2015
Families with children are attracted to fun-to-use in-store facilities
Figure 42: Attractive in-store digital facilities, by children in the household, December 2015
Early Adopters show interest in in-store digital facilities
Figure 43: Attractive in-store digital facilities, by Early Adopters and Laggards, December 2015

Meet the Mintropolitans

Mintropolitans tend to be Early Adopters who prefer specialised digital products
Figure 44: Different types of digital product consumers, by consumer classification, December 2015
Figure 45: Types of digital products owned, by consumer classification, December 2015
Mintropolitans are attracted to interactive devices in stores
Figure 46: Attractive in-store digital facilities, by consumer classification, December 2015

Appendix – Methodology and Abbreviations

Methodology
Consumer research
Why Mintropolitans?
Who are they?
Figure 47: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
Figure 48: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
Abbreviations

NA

NA