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Digital Marketing in China: our top stories for December 2019

January 10, 2020 |   Christine Lee

This month we highlight articles on how TikTok outperforms Instagram as 4th most downloaded app in 2019, the importance between online and offline for Millennials and Gen Z, healthcare companies ramp up digitalisation and Tesla’s delivery day for the multibillion- dollar China move.

1.TikTok Outperforms Instagram to Become World’s Fourth Most Downloaded App in 2019

As reported by Caixing Global.

TikTok lands the 4th position as most downloaded non-game app in 2019 and the video app has been extremely popular among the younger generation. TikTok was not the only Chinese app to make the App Annie’s list this year. Another short-video app, Likee, came 7th on the list despite being a new entrant, outperforming big players like Snapchat, Netflix, and Spotify.

According to a report by Caixing Global, the rankings were released as TikTok, known in China as Douyin, looks to diversify its global growth by attracting users outside the U.S., its strongest market. The company faces increased scrutiny there due to national security concerns.

Read more at Caixing Global.

Learn more about how to use China’s fastest growing apps for marketing.


2.Online or Offline? It’s all the same for Millennials and Gen Z

As reported by Jing Daily.

A remarkable purchase made online from the online luxury retailer Moda Operandi of a $400,000 necklace was a moment that shows the shift away from brick-and-mortar stores as the sole place to purchase high end luxury items. The traditional way of purchasing expensive luxury goods by visiting physical stores, touching the product and being assisted by knowledgeable staff is no longer crucial for millennials and Gen Zers.

According to Jing Daily, consumers in China who spend most of their digital life on WeChat, follow influencers and form their opinions about the brand before they enter the store. Examples of online purchases that exceed $100,000 in value last year show that consumers are increasingly open to buying luxury online. Online penetration for luxury in China stands at almost 60 percent for Gen Zers (those born after 2000), roughly 40 percent for millennials (those born between 1980 and 2000), and only 25 percent of Gen Xers (born between 1960 and 1980).

Read more at Jing Daily.

Learn more about how Luxury brands approach E-Commerce.


3.Healthcare companies ramp up their digitalisation efforts

As Reported by China Daily.

Healthcare companies are following the increasing digitalisation of services and providing innovative digital platforms for patients and physicians to optimise available resources. German conglomerate Merck collaborated with China’s Ping An Good Doctor, a one- stop healthcare online platform, to jointly explore integrated solutions to advance intelligent healthcare in the country. China’s online healthcare market has seen immense growth from 1.5 billion yuan in 2012 to a projected 23.5-billion-yuan next year according to data from Statista Research Development.

“As part of our digitalisation strategy, we are seeking out innovative solutions that will offer the highest possible benefits to patients, with the mission of transforming the lives of 40 million patients in China by 2025” said Rogier Janssens, managing director and general manager of Merck’s Biopharma Business in China.

Read more at China Daily.

Learn More about Chinese consumers online behavior.


4.Delivery day for Tesla’s multibillion- dollar China move, as Shanghai factory employees take first cars home

As reported by South China Morning Post.

Tesla handed over its first 15 model 3 sedans to staff that worked at the new multi-billion-dollar plant near Shanghai, which is the first plant outside the United States. The China plant is already assembling more than 1,000 cars a week, with plans to double this number over the next year. Deliveries to customers have not resumed yet but it was announced that the model 3 was included on a list of vehicles qualifying for an exemption from a 10 per cent purchase tax in China.

According to South China Morning Post, Tesla has discussed the possibility of lowering the cost of locally assembled sedan’s by 20 percent as they start to use local components and reduce overall costs. As part of expansions, Tesla plans to add dozens of locations in the country over the next year for showcasing its vehicles and providing charging and other services.

Read more at South China Morning Post.

Learn more about how Foreign Brands can successfully position themselves in China

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