The Dynamic Characteristics of China’s Virtual World
China’s virtual universe is often described as a giant intranet with distinguished characteristics that separate its virtual community from the rest of the world.
Much has been understood ever since China decided to open up its access to information through internet for its citizens. By imposing restrictions to foreign social media apps, China has allowed its home-grown ecosystem to flourish. So instead of Twitter, Chinese people will naturally go to Weibo to check out the latest trends and they are more likely inclined to go to Youku instead of YouTube to do live-streaming. This comparison is just few of the examples how China’s social media platforms and online behaviors differ from their international equivalents.
To be fair, just like elsewhere in Asia, variations of internet usage are mostly driven by language, culture, economic development and the underlying digital landscape. At such, digital ecosystem can vary depending on countries or even city states within a single country. And the same case applies to China.
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The big question left is for us, foreign investors, is: what makes the Chinese to keep coming back and using the same local apps instead of more internationally popular app-options? Well, I think part of the reasons is the nationalism of the Chinese for their mother country. Without doubt, thanks to national power, local developers can popularize their domestically developed apps in no time. These local manufacturers act as advocates for the country that by using home-grown apps, the people are in some way contributing to the development of industries in China.
This is also partially the reason why it’s so hard for international tech-companies to break into Chinese market. Apart from that, the unique characteristic of Chinese online world also proves to be quite challenging for Western companies to compete with local players.
The Characteristics of China’s Digital Landscape
Understanding what makes China’s online ecosystem unique and different from the rest of the world is an important step for foreign brands to leave their marks behind the seemingly impenetrable Iron Wall. In general, I think there are three key points that summed up the dynamic characteristics of China’s digital ecosystem.
Everything should be Mobile
Do you know that Chinese nationals spend an average of 3 hours a day on their smartphones, ranking second globally after Brazilians (who spend approximately 5 hours a day on their phones)? Before mobile marketing becomes the marketer’s most favorite buzzword, China has already been regarded as the world’s most mobile-centric nation. Back in 2015, Chinese consumers made more purchases through mobile phones than computers. And ever since, I believe, mobile e-commerce has played an even bigger role in China’s overall economy growth.
In one way, online shopping is a much bigger deal in China compared to the Western countries. This is why Chinese people are more sensitive to respond to mobile advertisement.
Now you understand the reasons behind local app developers’ such as WeChat integrating multiple channels in their platforms, right? It’s because this way, they are giving Chinese consumers an easy access via multi-channels in one app to enrich their shopping experience and overall process.
Social and Commerce are One and the Same
In China, compared to other countries, social media has become deeply integrated in the people’s lives. The usage of social media in the country is one of the most intense in the world. Some factors that might contribute to this situation include rural-to-urban migration that has separated families, the loneliness of one-child generation, and for some, to avoid information from government-controlled media.
Statistics also show that 55% Chinese netizens are quite active in online discussion. That’s why understanding social media is no longer a luxury for companies operating in China, but rather an imperative marketing strategy. If the lack of customer engagement is previously considered as a lost opportunity, nowadays, the penetration and impact of social media has made it to a situation where failing to interact with consumers is counted as potential business risk for the company.
Another trend that emerged thanks to the popularity and accessibility of these social media platforms is influencer marketing, where brands collaborate with KOLs to deliver brand messages to consumers. At such, China’s online community has become the point where commerce converged with social. By contrast, social media and shopping experience in the West are completely separated with numerous apps trying to fulfill those different demands and most often, ended up vying on similar target market.
No More Text Messages
For Chinese people, messaging apps are more than just a way to communicate with friends and families. These apps, in fact, have become part of their daily lives as consumers in emerging markets. Today, more consumers in China stay connected with companies via mobile messaging app on daily basis.
Because of this, consumers in China, especially those who have lower incomes, quickly moved away from traditional text messages in favor of these no-cost communication options such as WeChat. At the same time, because of the multi-purpose channels these apps offer, consumers can easily reach out to companies whenever they have issues directly via these apps and similarly, brands can quickly solve and avert consumer-led crisis.
Bottom Line
As China’s population shifted online, consumer behavior also changes accordingly. Undoubtedly, Chinese social media has dominated the business sector as well. Social media has grown to become the shared common place where Chinese consumers offer opinions, ask for advice, and discuss brands. Likewise, Chinese companies use social media to conduct consumer research, shift brand preference, launch products, and manage crisis.
In any case, I firmly believe that understanding the nature in China’s digital ecosystem is extremely essential for Western companies who wanted to break into the market. Only then, can you choose the right marketing strategies to successfully establish your brand in the land of the Red Dragon.
