Mobile Device Apps - China - October 2016


#858776

N/A

Mintel

$ 3990

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Apps should be adapted to more devices besides smartphones and tablets. For in-app advertisements, native advertising that fits both the device and consumers’ habits when using apps can enhance efficiency. Consumers do look for various functions on apps, and integrating mobile apps allow consumers to have easy access to niche apps and services.

Table of contents

OVERVIEW
What you need to know
Products covered in this report
Demographic classifications
Personal income
Household income
Mobile app heavy users
Loyal users by operating system

EXECUTIVE SUMMARY
The market
Usage of smartphones and smart TVs increases
Wider coverage of networks, increasing speed and lower fees drive growth in 4G users
Companies and brands
BAT continues to dominate while finance and health apps grow fast
Figure 1: Monthly active users (MAU) of leading mobile apps, June 2016
Live streaming apps become the new hot channel for marketing
Integrating mobile apps
Innovation highlights
The consumer
Smart TV penetration increases while tablets face challenge
Figure 2: Ownership of smartphones, tablets, smart TVs and smart watches, July 2016
More consumers use iPad in 2016
Figure 3: Operating systems on smartphones, tablets and tablets, July 2015 and July 2016
Penetration of mobile apps sees moderate increase, and news and weather remain most frequently used apps
Heavy users of news, transportation, finance and travel apps show similar age and gender profile
Heavy users of health apps are willing to use apps to motivate themselves to achieve health goals
Figure 4: Usage frequency of apps, July 2016
Consumers download more apps on smartphones, fewer on tablets
Figure 5: Number of apps downloaded in the last month, July 2016
Reviews matter to young people when downloading apps
20s and 30s more attracted by Internet of Things
Freemium model attracts heavy users of education, food and health apps
Figure 6: App usage behaviours, July 2016
Advertising on WeChat is more appealing than that on Weibo
Figure 7: Attitudes towards native advertising, July 2016
Using too much cellular data, malfunctioning and too frequent updates are major frustrations when using apps
Figure 8: Frustration with mobile apps, July 2016
What we think

ISSUES AND INSIGHTS
Are mobile apps coming to an end?
The facts
The implications
Native advertising, a way to enhance in-app advertisements
The facts
The implications
Adapting apps to more devices
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
Usage of smartphones and smart TVs increases
Wider coverage of networks, increasing speed and lower fees drive growth of 4G users

MARKET TRENDS
Usage of smartphones and smart TVs increases
Figure 9: 3G/4G users and Wi-Fi users among mobile internet users, June 2015, Dec 2015 and June 2016
Wider coverage of networks, increasing speed and lower fees drive growth of 4G users

COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
BAT dominates China app market
Live streaming apps gain popularity
Integrating mobile apps
Innovation highlights

COMPETITIVE STRATEGIES
BAT dominates, finance management and health apps see fast growth
Figure 10: Monthly active users (MAU) of leading mobile apps, June 2016
Live streaming apps become popular
Integrating mobile apps

WHO’S INNOVATING?
Help me more
Applying for visas via apps
More connectivity
Connecting with the experts
Bringing boutique stores to Chinese mobile consumers
On more devices
Delivery through Apple TV
More apps to be designed for smart watches

THE CONSUMER – WHAT YOU NEED TO KNOW
Smart TV sees increase while tablet faces challenge
Loyal iOS users are fans of music, game, finance, shopping and food
Penetration of mobile apps sees moderate increase
Heavy user profile of popular types of app
Heavy users of health apps are motivated
Consumers download more apps on smartphones, fewer on tablets
Reviews matter to young people when downloading apps
Advertising on WeChat is more appealing than that on Weibo
Using too much cellular data, malfunctioning and too frequent updates are major frustrations when using apps

OWNERSHIP OF DIGITAL DEVICES
Smart TVs see increase while tablets face challenge
Figure 11: Ownership of smartphones, tablets, smart TVs and smart watches, July 2016
Female-oriented apps to be adapted to smart watches
Tablet owners skew to heavy users of travel, health and education apps
Smart TV can be effective to reach consumers in tier two and three cities
Figure 12: Ownership of tablets, smart TVs and smart watches, by demographics, July 2016

OPERATING SYSTEMS ON MOBILE DEVICES
More consumers use iPad in 2016
Android takes lead as operating system on smart watches
Figure 13: Operating systems on smartphones, tablets and tablets, July 2015 and July 2016
Mobile apps should be available on both iOS and Android
Loyal iOS users are more likely to be heavy users of mobile apps
Figure 14: Loyal users of Android and iOS, July 2016

USAGE FREQUENCY OF APPS
Most consumers use news, weather, video or music apps every day
Consumers tend to use online shopping apps once a week
Map/transportation app usage up since 2015
Figure 15: Usage frequency of apps, July 2016
Penetration of travel and finance management apps sees increase
More heavy users of news and video streaming apps observed
Figure 16: Heavy users of different types of app, July 2015 and July 2016
Heavy users of news, maps/transportation, finance management and travel apps show similar gender and age profile
Figure 17: Heavy users of mobile apps, by age and gender, July 2016
Heavy users of health and finance management apps skew to wealthier consumers and those in tier two and three cities
Figure 18: Heavy users of mobile apps, by income and city tier, July 2016

NUMBER OF APPS DOWNLOADED
More on smartphones, fewer on tablets
Figure 19: Average number of apps downloaded on smartphones and tablets in the last month, July 2015 and July 2016
Consumers are less exploratory about smart watch apps
Figure 20: Number of apps downloaded in the last month, July 2016
Parents tend to download more apps on tablets and smart TVs
Figure 21: Average number of apps downloaded on smart devices in the last month, by gender and presence of children in the household, July 2016

APP USAGE BEHAVIOURS
Reviews matter to 20-24-year-olds when downloading apps
Loyal iOS users are more likely to use the same apps on different devices
Males are more likely to install new apps for discounts
Downloading for entertainment or practical reasons?
More things to be done on apps, not necessarily more apps
Figure 22: Apps usage behaviour, July 2016
Consumers in their 20s and 30s and mid-to-high earners are more willing to use apps to control other devices
Figure 23: Agreement with the statement “It is convenient to use apps to control electronic devices”, by age and personal income, July 2016
Freemium model users skew to heavy users of education, food and health apps
Figure 24: Usage of freemium model, by mobile app heavy users, July 2016

ATTITUDES TOWARDS IN-APP ADVERTISING
Heavy users of video, music, gaming, finance and food apps are more open to in-app advertisements
Weibo losing to WeChat in advertising appeal
Figure 25: Attitudes towards native advertising, July 2016

FRUSTRATION WITH APPS
Using too much cellular data, malfunctioning and too frequent updates are major frustrations
Freemium model appeals to 25-49-year-olds
Travel apps should keep information up to date, and finance and health apps should offer easy-to-use functions
Figure 26: Frustration with mobile apps, July 2016

MEET THE MINTROPOLITANS
What types of app are they using more often?
Figure 27: Heavy users of mobile apps, by consumer classification, July 2016
Mintropolitans are more active app downloaders
Figure 28: Number of apps downloaded in the last month, by consumer classification, July 2016
Freemium model can appeal to Mintropolitans
Figure 29: App usage behaviour, by consumer classification, July 2016
Advertisements via WeChat and Weibo can attract Mintropolitans
Figure 30: Attitudes towards native advertising, by consumer classification, July 2016

APPENDIX
Methodology
Abbreviations

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