Consumption Trends China 2012 Jin Wu & Theresa Loo
May 21, 2015
Consumption Trends
China 2012Jin Wu & Theresa Loo
Consumption Trends China 2012
Introduction
• China is changing at a dizzying pace. For some marketers, these changes
will unlock significant competitive advantages. For others, dealing with their
impact will be a major challenge. As change accelerates across the country,
the odds of missing a beat rise significantly. It‟s important therefore to have
your finger on the pulse – via the consumers.
• This is the second consumption trends forecast published by MEC China.
Some of the trends discussed in last year‟s report have become very
prominent this year. Others, such as Cluster-Oriented Consumption and
Sensory Experience Consumption, have evolved into other trends in this
new report.
• The ability to grasp the implications of new and upward growing trends will
give marketers an edge in tackling the market. The goal of Consumption
Trends China 2012 is to be a springboard to inspire marketers, and assist
them to come up with new business concepts, new products/services and
new experiences for consumers.
MethodologyImprovements have been made to the methodology in this round of trends forecast.
Similar to last year, we gathered input from over 50 trend scouts from different parts of
China. What has been improved was that we took the most frequently mentioned trends
and asked 565 consumers from 7 cities to rank them in an online survey. We then data-
mined a number of syndicated tracking studies on Chinese consumption and media habits
to find quantitative evidence to validate the top 12 trends.
50+ trend scouts from all over China
provided information on trends
Picked out the most mentioned trends
565 consumers from 7 cities ranked the trends in an online
survey
Conduced desk research for the top 12 ranking trends
Data-mined a number of syndicated
tracking studies for validation
Write up of report
Ranking of 2012 Consumption Trends
Ranking Trend
#1 Me Consumption
#2 Eco-Friendly
#3 Hybrid Economy
#4 Tech 360
#5 Virtual & Physical Worlds Seeping into Each Other
#6 Free??Free!!
#7 Lazy Consumption
#8 Grass Roots Decision Makers
#9 Alternative Sensory Experience
#10 “Com”plex Consumption
#11 World of Gamification
#12 Zhai
Source: MEC Trends Research 2011, 7 cities, N = 565
TREND 1 Me Consumption
The Chinese used to see „individualism‟ as a word with bad connotations,
applicable to people who only cared about themselves but not others. However,
the Chinese of today have come to see individualism as something to be pursued
and developed. They no longer live by the principle of “the bird that shows its
head gets shot.” Instead their unspoken slogan is “I have my own perspective”.
They are more eager to share themselves with other people and put themselves
in the limelight. The rise of personal media, including blogs, microblogs, and
personal pages, are good examples of this trend. An ordinary individual can now
have his or her own broadcasting platform. Each person is a source of
information, becoming the hub of his or her sphere of influence.
2011 2012Cluster-Oriented
ConsumptionMe
Consumption
Enthusiasm for platforms like blogs and microblogs is greater in China than in
most other countries. The Chinese, generally considered reserved and rather
private, ‟careful in word and cautious in deed‟, have taken to the age of self-
expression with alacrity. This is because the internet allows one to express oneself
under a pseudonym. This sense of anonymity, and thus safety from repercussion,
lets out a long pent up desire for self-expression.
Source: CC08S~CC11SUScope of survey: web users aged 15-40 in 30 cities2011S = Spring 2011 data; 2011SU = Summer 2011 data
Blogging/Blog Browsing Rate of Usage of Sina Weibo
% %
Personal Media
Show Thyself!
For the second season of “China‟s Got Talent”, there were more than 50,000
entrants. From the airing of the first episode, it was the most viewed programme in
Shanghai and the second most viewed nationwide.
Although in this respect, it was similar to the first season, viewing figures this year
grew by more than 50% both regionally and nationwide. It is evident that China‟s
passion for self-expression is on the increase.
The Chinese have moved
from expressing
themselves freely in words
on the internet to
appearing under the
spotlight as they really are.
This is yet another
breakthrough in self-
expression.
shai
You in
Writing
You in
Person
Everyone
Goes
‘Custom Made’
Source: CNRS2006~CNRS2010 Scope of Survey: 30 cities
Chinese do not just want self-
expression. They carry this into daily
consumption too and want to be
unique in every way.
% %
%
“I try to modify products I bought from
the shelf to make them fit my taste”
“I am willing to spend a bit more to buy
things that I believe are
original or one of its kind”
“I like to dress to be unique; to show that I am different from others”
TREND 2 Eco-Friendly
As the concept of environmental protection starts to get through to
consumers, isolated, random environmental initiatives are seen as
inadequate. Consumers now focus more and more on the concept of the
total environment. This means connecting together all the links of life into
a complete ecological chain, and deriving from this a whole environmental
way of living, rather than just a series of short-term initiatives. Green
activities are integrated into the surrounding environment to arrive at a
“complete” natural ecological system. For example, if you take the
decision to put a plant in a room, you also have to provide decent
treatment for the insects which it attracts, since the plant and the insects
together constitute an ecosphere.
58.5% of respondents stated that
they would be willing to change their
lifestyle to protect the environment.
Environmental protection no longer consists only of isolated, random
initiatives. More and more it is finding its way into every fabric of consumers‟
lives and becoming a way of living.
Source: CNRS 2011 Scope of survey: 36 cities
No Pollution Caused by
Environmental Protection
The Shanghai Eco-House was a Best
Practice at the 2010 World Expo. Its design
integrated five major ecological principles
(wind, light, shadow, green and waste) in its
structure and technical installations. It is a
showcase of what a „LOHAS‟ house, which is
conducive to a lifestyle of health and
sustainability, is like.
There is an environmental product called „zero
packaging plant‟. It comes in beautiful packaging,
with a soil and a plant. The reason it is called „zero
packaging plant‟ is because the beautiful packaging
can supply nutrients to the soil. This avoids
increasing pollutants in the course of buying green
products. The outcome is truly zero pollution.
Architecture with a life
The Shanghai Oriental Sports Center, opened in July 2011, was designed with
an eco-friendly concept in mind. A complete aquatic eco-system was built into
the man-made lake surrounding the sports center. It has put in phytoplankton,
zooplankton, shrimps, fish and decomposers etc. to make up a complete food
chain, so that the lake has the ability to self-cleaned.
TREND 3 The Hybrid Economy
• As the economy develops and the internet spreads, focusing exclusively on one’s own development is no longer a safe policy for marketers. More and more brands and categories are breaking out of their own protective cocoons and experimenting with new forms of joint ventures: cars team up with luggage, pension schemes with daily consumption. There is also the development of social TV, combining TV with mobile devices and social networking sites. It’s not just a question of one brand partnering with other brands, but the different approaches of wholly unrelated categories are now being coupled to meet consumers’ various needs.
Hybrid
Media
Vualla
Vualla is an application based on the iPad which fuses the
characteristics of TV, mobile devices and social networking to
create a completely new media form, referred to as „social TV‟.
Users can watch TV when and where they want, and also
share related information with friends at the same time.
TVmobile
devices
social
networking
sites
social TV
smart TV
Pension + consumption = ‘consumption pension’
• According to the „consumption pension‟ scheme launched by the Chongqing
government, the people of Chongqing can collect points on a card. When
they spend at designated shops, supermarkets, restaurants and hotels, these
businesses will reserve a certain amount and transfer it back to the
consumers‟ bank accounts to be paid into a pension scheme.
• So „spending‟ is not simply an outgoing transaction, it is also „earning‟ for the
future.
Hybrid Economic Modes EarningSpending
CrossoverIt has become quite a craze for brands in
different fields to cooperate in creating new
products. Cars join with real estates, luxury
goods with cars, and luxury goods with leisure
products. When such ventures are successful,
it‟s a win-win situation for both parties. Each
partner gains in consumer base and an
increase in awareness & preference.
TREND 4 Tech 360
Changes in lifestyles today make people more dependent on science and
technology. Individuals have around them a battery of hi-tech products, each
performing a different function. Yet there are all kinds of indications that
technology integration is becoming a major trend. The various technologies are
becoming invisibly linked, so that mobile phones can control TVs, or electric
lights can modulate audio effects. In future, consumers will not be dealing with
stand-alone high-tech devices, but will find science and technology penetrating
every facet of their lives. It will be an environment that is surrounded by
technology 360 degree.
Android@HomeBy the end of 2011, Lighting Science plans to
launch its first „intelligent LED light-bulb‟.
Mobile devices which have Google Android
(mobile phones, tablet PCs, palm-tops) will be
able to control these bulbs through a new
open source Wi-Fi protocol, so users will be
able to put their Android mobile devices to
work to adjust the lighting remotely at the
touch of a button -- easy, convenient, and
energy-efficient.
Gadgetnet
As the name suggests, the “gadgetnet” is a network
that links gadget to gadget. Its core and foundation is
the internet, but has extended to linking up gadgets to
exchange and communicate information. The
individual gadgets are more strongly interlinked than
ever before.
The Omnimedia Age
Cloud computing is a major driving force towards
integration of the media environment. Invisible
bridges appear between all the different channels,
and they link up with and act on each other.
Information picked up in one medium can then be
followed up in another medium.
Different media can also interact in real time,
allowing for the creation of truly collaborative
content.
Shanghai Media Group has a new entertainment
program, “Date on Saturday,” which has come up
with an App that allows mobile phones & tablet
PCs to interact with the TV program. Viewers
can sign in using QR-codes and interact with the
celebrities on the show. They can also look for
like-minded individuals via LBS technology. In
this way, there is seamless integration of the big
and small screens, providing an omnimedia
experience to consumers.
TREND 5
Virtual & Physical Worlds
Seeping into Each OtherIt is becoming more difficult to make a
completely clear distinction between the
virtual world and physical world, and
consumers can shuttle between them at
will. Relationships, experiences and
emotional exchanges in the virtual world
inevitably have a direct or indirect effect
on consumer behaviour and purchase
decisions in the real world. Similarly,
experiences in the real world will
determine consumers‟ opinions, attitudes
and influence in the virtual world. The
virtual and the physical worlds affect and
change each other, and the boundary
between them becomes ever more
tenuous. The growth of the O2O (Online
to Offline) mode cannot be ignored.
Source: CMMS2003S~CMMS2011SU Scope of survey: 15-40y.o. in 30 cities
The Virtual
„Lights Up‟ the Real
“Virtual Buying Guide”
QQ Show, which lets consumer try
out clothing on a virtual image, also
displays at the bottom of the page
garments and shops on Taobao
which match the clothes consumers
are trying on. This makes it easier
for consumers to buy.
The virtual world is acting more and
more as a guide to real life, and is
having an enormous effect on actual
consumer behaviour.
“When I need information, the first thing I
think of is to search on the internet”
%
%
“Websites usually visited on the internet are
related to information on lifestyle”
Taobao Mall in Beijing set up the first offline experience centre for home decoration, bringing
together e-shopping and offline sampling. This is to facilitate consumers to make better choices
when they buy online. When consumers have finished looking at the products in the physical
world, they can go straight to the service terminals provided, log on to Taobao, and place orders.
Consumption Offline
+
Posting Online
Offline Creates Online
Chinese love to comment and share online. For
more and more restaurant diners, the first thing
is not to eat but to tweet. They instantly publish
their reactions to the food on the internet,
sharing them with other people.
Experience Offline + Action Online
QR-Code
Shopping
Mobile phone QR-code scanning involves applying the mobile’s image-recording ability to the scanning of QR-
codes and retrieving the information stored there. This is
followed by further steps such as going online, sending a
text message, dialing a number, exchanging information,
or entering text automatically.
E-shopping is no longer just an
online activity. It is increasingly
penetrating consumers‟ real lives,
becoming available at any time or
place.
Yihaodian, the famous online
supermarket, offers QR-code
shopping in every big Shanghai
metro station. Each product shown
in giant LED advertisements has its
own QR-code, which consumers
can scan with their mobile phones.
The product then goes into their
Yihaodian virtual trolley and
consumers can proceed to check-
out online.
AR Online Dress Show Using the latest augmented reality
(AR) digital technology, the
Yishion clothing brand has
launched its “AR online fitting”.
After consumers buy a Yishion
product they will be invited to take
part in this activity digitally. With
a web-cam, they can try out
different outfits with AR-codes,
take photo shots and make them
into a video at the same time.
This video is then combined with
Han Geng into an advertisement
for the product, with the consumer
becoming the star of the ad.
This is not just a fusion of offline
with online. This mode is great for
promoting sales in stores.
TREND 6 Free??Free!!In times when almost every product/service
goes into a price hike, the appeal of “free” as
a marketing concept is obvious. Nowadays,
there are opportunities for consumers to
obtain products/services without having to
pay.
More and more brands are deploying a free
strategy in their marketing campaigns. With
little or no perceived differences between
products these days, the ability to induce
consumers to try a product, albeit by a free
strategy, is already a foot in the door for
marketers.
In some cases, “free” has gone from its initial
role as a promotional tool to a long term
business model. “Free” can come in very
different formats, such as barter, consumers
participating in a promotional activity or
paying for products by performing services for
the marketer.
Source: CMMS2004S~CMMS2011SU Scope of survey: 15-40 age group in 30 cities
More and More
Willing to Try
Bartering goods was the way people used to trade before the
invention of money, and now it‟s making a comeback. However,
nowadays, barter is no longer confined to material things, but
intellectual and artistic goods are also included. People exchange
not just physical objects but experiences, feelings, information and
skills. At emotional give-and-take parties, for example, everyone
who takes part gets to hear other people‟s riveting stories, but is
also expected to share his/her stories in return. The old saying is
right: “The talk of money hurts (people‟s) feelings”. This new
barter consumption, which is rich in interest and excitement, has
become a new medium of emotional exchange and entertainment.
Barter
Consumption
Sayings like “the sky doesn‟t rain pie” and
“there‟s no such thing as a free lunch”
represent a traditional way of thinking
which used to have enormous influence.
However, Chinese nowadays are more
willing to give new things, such as free
trials, a try.
% Acceptance of Free Trials
Free virtual $$ for watching ads
Noisey was a joint event organized by
Dell and Intel in 2011. This event was
targeted at Chinese young adults, and
involved a “FREE” crossover platform. It
utilized the 17bi (a virtual coin) of
InGameAd Interactive.
It embedded Noisey video footages into a
number of social games, working like the
YouTube for gamers. When the gamers
watched Noisey ads, they were rewarded
with virtual money in the form of 17bi,
which they could then use in social
games across different platforms to
redeem props, or as currency.
This is a win-win situation: advertisers
get their ads watched while gamers can
earn virtual points.
Number of fans jumped from
118 to 9901!!
VANCL Star
VANCL Star is a promotional activity launched by VANCL to enable consumers „to get
fame and economic benefit from their fashion sense‟. Individuals can upload their own
„Vancl ensemble‟ on to the internet, and other users can check them out and vote on them.
How many VANCL products are sold due to a
consumer‟s clothes matching sense will be a
criterion for whether the consumer will be
ranked as a „Star‟. The sales ranking then
puts on record how much influence each
„Star‟ has. The more influence the Star has
on VANCL sales, the greater the personal
commission that s/he is given. Getting
something back without paying anything out
is a dream investment model for consumers.
For VANCL, the influence of their „Stars‟ is
the basis on which to sell more apparels.
Comments = Money Influence = Opportunity
This is another version
of the “free” strategy:
your influence in the
virtual world determines
your probability of
success, since the more
people you bring in the
more chances you get to
draw a prize.
Promotion such as this
“groupon for nothing”
scheme organized by
dianping.com involves
utilizing consumer‟s
influence and rewarding
them for flexing that
influence.
Being able to buy with no effort at all is
one of the ways in which the web-
based “free” strategy currently
manifests itself. Consumers‟
participation in promotions becomes a
way to earn (virtual) money.
“Follow + Comment”= $
“Follow + Participate”= $
“Follow + Forward”= $
TREND 7 Lazy Consumption
As the pace of life heats up, consumers are too busy to make a proper response
to all sorts of things, and they begin to feel that there are not enough hours in the
day. So people dream of taking on a „servant‟, someone to help them filter
information, make exact plans and put forward good recommendations. In answer
to this surging demand, all sorts of intermediary and pooling services have sprung
up, like Douban Same City: dates, places and services or activities are all set out in
a table. All the consumer has to do is to pick the one he wants from the many
excellent choices on offer.
Aggregation sites like qunar.com
allow consumers to get from a single
site information which they would
otherwise have to search for in many
different places.
Specialist aggregation sites, like
“Frontiers of Science”, keep people up
to date on news and new directions in
different fields.
Aggregation Websites Activity ManagersAs the intellectual and artistic life of
the Chinese become richer, various
websites dedicated to arranging
leisure activities have sprung up and
attracted attention. Sites like Douban
Same City, Gewara and Shanghai
Culture Information Center help
consumers sort through what‟s on or
what‟s going to be on (movies, plays,
concerts etc.) in different cities and
also offer special deals on tickets.
@TaobaoForTheLazy
Has this ever happened to you? You are walking on the street or browsing online and you see
something that takes your fancy, but you have no idea what brand it is or where to buy it.
However, going off on a search to find out about it is going to be quite an undertaking, far too
troublesome for the efficiency-conscious modern consumer in you..
It is at this point that the arrival of @TaobaoForTheLazy is greeted with cheers.
@TaobaoForTheLazy, as the
name suggests, is a service
targeted at lazy people. If you
publish here a photo of the
product you are looking for, all
sorts of experts will quickly give
you the information you want,
saving you time and effort.
TREND 8
Grass Roots Decision Makers
There‟s an ancient Chinese saying which gets it right: “When everybody
adds fuel the flames rise high.” This is exactly how to succeed in the
internet age, by deploying the wisdom and strength of the general public to
the greatest possible extent. A single move or pronouncement from a
marketer can quickly get a massive response, and can end up making big
waves. The invitation to “tell me your ideal dessert” appeared on a
microblog, and despite its simplicity was answered by a vast number of
netizens. Since it is so easy and convenient to get involved like this,
consumers do not need to think too much. If, by lifting a finger, consumers
can change the world, why not do it?
Source: CMMS2009A~CMMS2011SU Scope of survey:30 cities
%Popular Participation
Is on the Rise
Grass-Roots DetectivesWhen the Guo Meimei story was exposed, the public‟s
craving for the real truth made them intensely interested.
Huge numbers of netizens tried to unearth and piece
together the facts.
Fooling the public is becoming less and less easy, as
more and more people are aware of their powers and
rights. People will get together and assert their authority.
The proportion of Chinese who have
commented online has risen from 2.8% in
2009 to 9.4% in 2011. Things they have
commented on include community affairs,
entertainment gossip and shared items from
friends. Popular participation in China is on the
rise. Instead of just following instructions from
others, people are now becoming aware of the
role they themselves can play.
Have made comments on the internet
Xiaomi mobile phone – a live OS
One of the characteristics of the Xiaomi
mobile phone is that it uses an original
designed operating system called MIUI. It is
the first Chinese designed OS that allows
zealots to participate in the improvement of
the original design. Every zealot of Xiaomi
can contribute to the betterment of the mobile
phone and is a designer of the product.
Upgrades are carried out on every Friday.
MIUI is a live operating system, allowing
consumers to continuously experience a
better version of the mobile phone. Xiaomi
was very well received and got 300,000 orders
within the first 34 hours of its launch in
October 2011.
This year, while most people around the world are waiting for the launch of
a new version of the iPhone, another mobile phone was enthusiastically
awaited for by the Chinese consumers. This is the Xiaomi mobile phone.
Buyers Creators
The VW „People‟s Car Project‟ is an interactive creative platform which invites
consumers into a dialogue. Consumers can join the process of creation. VW stimulates
their creative imagination. In return, consumers with their innovative and creative ideas
inject new inspiration into VW‟s brand creativity.
VW is completely committed to listening to what Chinese consumers want, and „The
People‟s Car Project‟ is an extremely interactive and engaging way into consumers‟
hearts. Consumers can vote on all the original design features, and those which get
the most votes will end up being used by VW in the production of the final product.
This is surely the formula for producing a winning product which is completely in line
with what consumers want.
TREND 9
Alternative Sensory Experience
Traditional sensory experience involving a single sense, however powerful it
may be, is becoming less and less able to grab consumers‟ attention.There is a
better chance of their interest being aroused if they have experiences, in more
than one of their senses, which go beyond conventional expectations.
Sometimes this means switching to another sense, such as voice-controlled
instead of touchscreen games, or food being played instead of simply eaten.
Sometimes different senses are combined – for example 4D movies exploit the
linked activation of different senses. These new-style novelty experiences act
powerfully on consumers to persuade them to try new products and brands.
2011 2012Alternative
Sensory
Experience
Sensory
Experience
Consumption
Source:CC03S~CC11SU Base: 30 cities S=Spring, SU=Summer, A=Autumn, WI=Winter
Internet Consumer Research Centre (ZDC), 2010-2011
Touch-screen mobile phones are one of the
great technical breakthroughs of the past few
years, and are becoming more and more
popular with consumers.
The sense of touch is now one of the things
people care about most in a mobile phone.
Just a couple of years ago, who would have
asked: “How does the phone feel?”
%
%
For hi-tech products like mobile
phones and cameras, high
performance is not enough. For
Chinese consumers, they are not just
communication or imaging tools, they
are also fashion accessories. For this
reason, how they look visually is
getting more and more attention, and
can even be the deciding factor when
a purchase is made.
%
%
Consider the product’s outlook when buying a camera
Consider the product’s outlook when buying a mobile
phone
Interest in touchscreen in the China
mobile phone market
The game Pah! for the iOS platform involves
using a voice-controlled spaceship to
eliminate obstacles. As the player‟s voice
goes up or down, the spaceship heads
skywards or earthwards to dodge the
asteroids heading towards it. With a short,
sharp “pah” sound you can launch a missile.
Voice-Controlled Games
Pah!
Do you remember when you were
young, there were „hands and feet‟
games, and you twisted yourself
into strange shapes to use hands
and feet together? Nowadays,
some games require „no hands, no
feet‟. Voice-controlled games have
appeared, changing all our
assumptions about how games can
be played. They have been greeted
with astonishment and great
enthusiasm.
Handsets Not Just for HandsA transparent mobile that can “change faces”: the Window Phone.
With the Window Phone, when you touch the „weather report‟, information are
delivered in multi-sensory form. This completely overturns what we usually do
with our mobiles, and so has aroused a lot of interest in the market.
TREND 10 “Com”plex Consumption
As today‟s consumers get more sophisticated and have more money in their
pockets, they no longer consume just to fit in with other people‟s taste. They
also no longer confine themselves to practical products and services. Buying
for interest is becoming the consumption focus of more and more Chinese,
and in consequence the „complexes‟ have arrived: cartoon character complex,
travel complex, IT complex. On the things they are especially interested in,
those who have a complex will spend their money without stint. What kind of
„complex‟ do you have?
Source: CNRS2006~CNRS2010 Scope of survey: 30 cities
Badge Fanatics
Bye Bye, Rationality
As the Chinese craze for virtual products
gathers momentum, some people are prepared
to spend a lot of money and time getting badges
from QQ or Weibo or jiepang.com, even though
they are of no practical use and cannot be
touched.
The Chinese have always been thrifty, so
they like to buy things that are functional.
When you buy something the first question
you get asked is: “What are you going to
use it for?” But these days, with the
development of the economy & society, we
find that Chinese are more and more ready
to act on their interests and enthusiasms.
If they like something they may be
prepared to buy it even if it has no practical
use. Whether you like something or not,
instead of its usefulness, has become the
main criterion for buying.
%
“I will buy things that I do not need and
are not practical, so long as I like it”
The FoodieThere are some people who have only one interest. They
love to taste all kinds of fine food. These are the „foodies‟,
and they have recently been on the rise. They let no
difficulty stand in their way and they overcome all
obstacles just to eat.
The Apple Fan
Eat hotpot while on IV drip
As Apple becomes more popular
in the Chinese market, a group
known as „Apple fans‟ has come
into existence. They are
passionately loyal Apple
enthusiasts who own every kind
of Apple products and would like
their lives to become all Apple.
This is one of the reasons why
last year one eighth of Apple‟s
profits came from China.
Apple hairstyle
“Apple Family Portrait” from an Apple fan
The Media “Com”plex
With the growing importance of the various media in consumers‟ lives, the media
have joined products and brands as a target of “com”plex consumption. These
consumers use all kinds of media many times a day, and they cannot stop
themselves. Phrases like „microblog complex‟, „Xiaonei complex‟, and „TV complex‟
are on everybody‟s lips these days.
TREND 11 World of Gamification
Source: CMMS2003S~CMMS2011SU Scope of survey: 30 cities
„Be serious!‟ is a phrase which has echoed across many
generations, giving voice to the respect Chinese have for
sobriety. However, playfulness is an ancient
characteristic that is written into the human genes, and it
will never be completely stamped out. „Amusing yourself
to death‟ is back on the scene, but this time consumers
are not simply after the entertainment or amusement, but
have developed an interest in some basic game
mechanics inherent in game-playing, such as fun,
competition, rewards and levels. One example is game-
based teaching known as „edutainment‟. Nowadays,
more and more game mechanics are being applied to
commercial practice, attracting consumers to participate
and rewarding them as they move to ever higher levels.
As far as the Chinese are concerned, the days of belt-
tightening poverty have faded from view, and enjoying
the present moment is the new theme. For this very
reason, game mechanics are welcomed by consumers.
It is like the line which crops up often in martial arts
fiction: “Time is something I‟m not short of; so there‟s no
reason not to have a bit of fun.”
%
Comparison of What Chinese & Americans Do Online
instant messaging
on-line music
news-reading
on-line video
search engines
on-line games
blogs
social networking
e-commerce
on-line banking
discussion forums
job-seeking
China
USA
Source: China‟s Digital Generations 2.0, BCG
As has been shown in
many research, Chinese
are keener on games
than other people. Many
people in China have
been deeply influenced
by these games, not
least the new generation
of young people, who
have been immersed in
them throughout their
upbringing. The game
mechanics on which
games are built play an
important role in making
the games addictive.
Games for AdultsAgainst the claim that games are the special
preserve of kids, the success of Angry Birds and
Fruit Ninja in the adult world reminds us that
perhaps adults need games even more. Adults
are under lots of pressure in their daily lives, but
they cannot let off steam the way children do.
Games have become one of the ways in which
they relax and let off steam. This provides the
basis for gamification, in which marketers employ
game mechanics to attract consumers.
“Class” Society
If somebody introduces himself by saying
“Hi, I‟m the Laird of the Oriental Pearl
Tower”, do not think he is crazy, because
that is who he really is. Or rather, that is
who he is in
the virtual worldBadges, titles, certification…… the virtual
position and status conferred by these
virtual objects encourage active
participation. The reason is that every one
wants to prove that s/he is “a person of
status!”
Laird
A Sense of CompetitionWith the rise of social network sites such as
Renren and Weibo, statistics such as the
number of „fans‟ (like Twitter „followers‟) and the
number of times a person‟s Weibo post has
been forwarded or commented on, have
become a measure of personal influence.
When the need for emulation kicks in, the
Chinese tend to pit themselves against others
in the virtual world. There is actually a market
for selling „fans‟.
Nike+ uses „community‟ concepts to appeal to consumers‟
natural competitiveness, setting up head to head
competitions in sporting activities and thus encouraging
people to do sport. In the Nike+ online community, users
can issue all kinds of challenges, daring their friends &
colleagues to trials of strength. Let‟s see who‟s the better
sportsman?!
They Can Play TogetherThere is an often heard sentence, “They can
play together,” which brings out the social
function of gaming.
Famous sports brands like Nike, Puma and Li
Ning have all taken to promoting „night
running‟, which, as the name suggests, is
going running after dark.
As people run, others begin to tag along, and
the group gradually swells in number. Through
sport you get to know other people with the
same interest, and your social needs are met.
TREND 12 Zhai
The „cocooning‟ man or woman is not a novelty. Faith Popcorn, the
famous US trend forecaster, first proposed „Cocooning‟ as a trend in
1992. In recent years, this trend has gained critical mass and is
becoming more prominent in China. Cocooners are called Zhais in
Chinese. The proliferation of the Zhai lifestyle brings with it an entire
Zhai economy, such as home delivery service, E-shopping, increased
need for communication and technology products etc. Furthermore,
Zhais come in different varieties. They are no longer just the stay-at-
home type. With the maturity of mobile technologies, many Zhais go
out and get around. However, they morph into IT Zhais. Despite
being and hanging around with people, their main focus is their mobile
device instead of people.
Source: CMMS05S~CMMS11S Scope of survey: 30 cities
From 2004 to 2010 saw a general upward trend in the proportion of
consumers whose lifestyle fitted the definition of Zhais
%
76% of respondents agreed with the statement:
The Zhai lifestyle is likely to be adopted by more and more
people in the future.
Source: The Zhai Lifestyle, MEC proprietary research, 2011
“”
81.2% of respondents agreed that:
E-shopping is replacing traditional shopping, becoming my main
means of consumption.“
”
The Rise of
the Zhai Economy
Source: Numbers of Users in the Chinese Online Market , iResearch Consulting 2010
A wall covered with take-out menus and a
Favorites folder crammed full of various e-
shopping web-sites have become an
indispensable part of life for more and more
consumers. These forms of economic activities
are part and parcel of the Zhai lifestyle. As the
Zhai community grows bigger, such services are
more in demand.
October 09, 2011
New Pleasures for the Zhai Lifestyle
Shortly before the Mid-Autumn Festival, Baidu Encyclopaedia made a change to its
entry under the word „Moon‟. The site visitor‟s IP address and server time were
used to establish which city they were in, and the web page showed a real time
image of the moon as it appeared where the user was. In this way, even people
who were lounging about indoors and had no intention of going out were able to
follow and enjoy the changes of the beautiful mid-autumn moon.
As Zhais grow in number, they will look with greater favour on brands or products
which let them enjoy indoors the beauties of the outside world without having to
physically go out.
The „IT Zhais‟
The development of mobile technology enables Zhais
to go outdoors.
Even when they actually go out, more and more people
remain in their own small world. They do not
communicate much with the outside world, or rather
they do not communicate face to face. It is in the virtual
world that they have built for themselves that they
socialize and interact with others. Two people sitting
side by side, not saying a word to each other, but
absorb in surfing on their mobiles – this has become a
common scene. These are the IT Zhais.
Implications and Recommendations
Implications & recommendations - 1
• With the continuous integration of technology and media (T3: Hybrid Economy
and T4: Tech 360), brands should have a core idea that can be expanded and
content that is liquid enough to flow from one channel to another. Conversely,
each channel can carry different pieces of information about the brand, inviting
consumers to participate in piecing together the brand content or using the bits
and pieces of information to create their own UGC (user generated content).
• With the development of T1: Me Consumption and T8: Grass Roots Decision
Makers, how to leverage the power of grass roots decision makers is the next
Mount Everest that marketers have to climb. Marketers do not just have to
invite consumers into their brand communications, but also to tap into their
creativity and innovativeness by letting them participate in the development of
products and services.
Implications & recommendations - 2
• The boundaries of „new media‟ will continue to broaden. With the development
of T1: Me Consumption and T8: Grass Roots Decision Makers, every
consumer can potentially be a new channel for a brand to communicate
through. At the same time, with T6: Free??Free!!, the “free strategy” is an
effective means to enroll consumers to communicate the brand message in
exchange for goods and services.
• In order to ride on the continuously growing trend of T12: Zhai, there are three
things that a brand can do:
• 1) Become a friend of the consumer in the digital world, and help them to lead a
healthy and exciting Zhai lifestyle;
• 2) Build a positive, forward looking brand personality and host events that entice
Zhais to leave their homes and go into the physical world to socialize with others;
• 3) Act as a bridge to assist Zhais to traverse the virtual and physical worlds
seamlessly.
Implications & recommendations - 3
• Given its huge gamer base, China will probably progress from gaming to T11: World of Gamification faster than most other countries. Gamification is a wildcard and lends fun and excitement to anything that it is associated with:
• 1) Deploying games in brand communication, or building game mechanics into the purchasing process to move consumers along the purchase funnel, are great ways for brands to engage with consumers.
• 2) Gamification can also breath new life into loyalty programs. Accumulation of loyalty points for a consumer can be made more competitive and more social by tying the consumer‟s progress to others for competition. If both the participants and their friends/competitors can see the results in real time, the process create an immediate feedback loop and can drive a sense of urgency to accumulate more loyalty points.
• Applying T6: Free??Free!! to T11: World of Gamification, games can be designed in such a way that gamers get free gifts, points or virtual coins when they get their friends to sign up, complete tasks with their friends‟ help and post their accomplishments on social media websites. This gets more people to participate, creating an endless loop of cooperative play.
Implications & recommendations - 4
• T4: Tech 360 is changing consumers‟ usage and preference for products. A brand needs to incorporate new technology into its products and services, so that the product and technology become one and the same in consumers‟ minds. When consumers think of the new technology, they think of the brand. Technology is also at the heart of enabling creativity and delivery of T9: Alternative Sensory Experience and T5: Virtual & Physical Worlds Seeping into Each Other.
• With the acceleration of pace of life, increasing pressure, and T7: Lazy Consumption, consumer demands begin to polarize. On the one end, products, services and technology that are simple and intuitive are welcomed. On the other end of the scale, packaged solutions that bundles complicated steps into a one-stop solution will also be well-received, as they cut down on the time and resources that consumers have to put in.
For more information, please contact:
Theresa Loo
National Director – Strategic Planning, Analytics & InsightMEC China
29/F, The Center
989 Changle Road
Shanghai China 200031
Direct line: +86 21 2307 7790
Switchboard: +86 21 2307 7800
Project Manager & Editor: Wu Jin (Mandy)
Project Consultant: Amanda Song
Trends Researcher: Liu Jie (Jane) , Stephanie Chai, Anita Wang, Cai Jing