Social media has only woven deeper into the fabric of how China’s netizens make purchase decisions online over time. As shown below social’s role as a medium of discovery and research has a considerable influence on how millennials purchase products. After purchase on e-commerce, millennials also come back to social media to publicly share feedback on their new products, thus completing one digital cycle and readied to begin another ad infinitum.
Social Media Heavily Influences Prospective Buyers
About 75% of netizens will have their planned purchases somehow influenced by content they see on social media in China, mostly on WeChat and Weibo, but also other platforms. Content seen on social media causes them to change their plans and buy different products, buy more of a planned product, or buy a product they didn’t consider to purchase before.
Tmall is King of E-commerce, but VIP.com Has Traction Among Millennials
Although Tmall has the lion’s share, and JD is a close second, millennials also seem to disproportionately prefer VIP.com than non-millennials. That’s an exciting trend and could suggest that VIP.com is catering better to millennials than China’s other e-commerce giants giving them an edge in the years to come.
Netizens Actively Provide Feedback on Products
After China’s netizens purchase products online, many will then post reviews on social media, completing the online consumer journey cycle. Channels where product commentary is published, include BBS, WeChat and Weibo, and Online Stores.
Greater China is top of mind for man of our clients. Recently we put together a few graphs comparing each of the markets digital opportunities. The key difference is China’s vast scale, which has yet to be fully optimized vs. HK and Taiwan’s already pretty mature digital markets. Below is a few slides that will take you through a quick overview of the difference between each market.
Scale of Digital Opportunity in CN TW HK
China has the largest population and therefore has the most people online, Taiwan consistently comes in second, and Hong Kong third. When seeing the differences in population so starkly, its clear why most brands target is the Chinese mainland; though of course the other Greater China markets are still very important.
Digital Market Expansion Ability CN TW HK
China has a lower penetration in internet and social media, suggesting that there is still more room to grow, and more customers still to reach. When coupled with the previous graph covering overall population, China can grow about 35 more “Taiwans” before it hits its maximum potential.
Where Consumers Discover New Products CN TW HK
Across each of the Greater China countries, online is the dominating channel where customers first come to know of new products and services and then subsequently purchase. However due to Taiwan and Hong Kong’s older infrastrucutre, awareness is more spread out that China.
Most Active Social Media Platforms in CN TW HK
While WeChat and Weibo are used across Greater China, their usage in HK and TW is more about keeping in contact with friends in China rather than as a primary social media platform. HK and TW are similar, except they swap Line (TW) and Whatsapp (HK) when it comes to chat.
Video an Important Part of Digital Content in CN TW HK
With the massive amount of content online, each of the Greater China countries favor video as the meduim to receive content. This makes sense as videos tend to be shorter, more interesting, and more to the point, which is a perfect antidote to an increasingly distracted audience.