Uber’s official Tencent WeChat accounts were blocked again last week. Given Tencent also owns a large share of Uber’s main Chinese competitor, Didi Kuaidi, their motivations are fairly clear.
The block is another example of the un-gentlemanly tactics that China’s big Internet players often employ in the fiercely competitive market. The latest scheme is nothing new; way back in 2008, Alibaba blocked Baidu from indexing Taobao sites. More recently, WeChat QR codes were banned from Taobao, and Alibaba’s Alipay Wallet was disabled on WeChat, to name a few.
Whilst much of the dialogue between the big players has been banning, blocking and cheap jabs in the press, there are also times when the big boys cast aside their differences and form strategic alliances to fend off other foes. Baidu and Tencent have been working with Wanda to create smart malls in hope of warding off Alibaba’s growing retail dominance. Even Alibaba and Tencent merged their taxi apps to keep the formidable Uber at bay. It’s the Art of War 2.0.
With China’s big Internet players’ becoming so deeply entrenched into almost every category in China, this gamesmanship will have an impact on many of us. We only need to look to the travel industry where digital channels are the most popular way that Chinese research and book travel. Yet with Qunar, and now Ctrip, owned by Baidu, transparency for travel-related searches are sometimes in question. Similarly, Tencent’s shareholding of JD gives the platform a visible advantage with exclusive listings on WeChat.
They are the obvious examples, but as the online giants’ acquisitions creep more into the physical world, it is likely to change the playing field offline as well. Take JD, who recently bought a share of Australian dairy company Murray Goldburn. What impact will that have on other dairy sellers on the platform?
South China Morning Post, responsible for some of the most insightful commentary on the China market was purchased by Alibaba last week. Does this mean they’ll lose some of their objectivity and become a cheerleader for Alibaba?
The multi-dimensional nature of China’s market is becoming increasingly complex, and should be considered when developing marketing strategies and tactics. China Skinny is well-placed to assist you with that.
With Christmas upon us next week, this will be the last Skinny for 2015. If you celebrate the Yuletide, China Skinny wishes you a Merry one. Here are some interesting characteristics about Christmas in China to see you through the festive season. Happy New Year, we hope you enjoy this week’s Skinny.
Christmas in China: The Skinny: Christmas is becoming big business in China, but like many things, it has Chinese characteristics.
In China, These Are Odd Times for Uber: WeChat has blocked Uber’s accounts, again. It’s another sign of just how cut-throat China’s online market has become.
In China, Urbanisation is a Two Way Street: Many Chinese migrate to high tier cities only to be disappointed with high apartment costs, long commutes, and lower discretionary income than before, which sees some return to lower tier cities.
Why Foreign Brands Have to Figure Out China All Over Again: Many of the big foreign brands in China aren’t having the same success as in the past, as they have nothing new to offer consumers, and repeat the formula that may have been relevant in 2013, but isn’t now.
Taobao & Tmall Shopper Behaviour Infographic: Five years of Taobao & Tmall shopper data analysed for this fascinating infographic about Chinese online shoppers’ behaviour and trends.
Taobao Turns Shoppers Into Sales Force For 12.12 Event: Consumers who created personal shopping lists on the Taobao app and shared them with friends were eligible for cash awards (sales commissions) if others made purchases using links on the lists for last Saturday’s 12-12 Shopping Festival.
Victorian Dairy Company Uses Laser Coding on Infant Milk Formula: Having come to the China market later than some competitors, Camperdown Dairy is looking to make an impact with a “contamination-proof” lid and spoon system, and unique QR code identifiers.
Beijing Tightens Oversight Over Baby Formula Makers Scarred by Safety Scandals: New rules proposed for China’s baby formula market will allow each producer to register a maximum of five instant formula brands, with only a single formulation per brand. Regulators also plan to conduct more spot checks on the 103 domestic producers and 73 foreign firms in the Chinese market.
Chilean Cherries Promoted on Chinese Airline Flights: Passengers on China Eastern flights between Beijing and Shanghai were given free Chilean cherries, with suggestions and information on how to use them and buy them using a QR code.
China to Cut Import Duties on Luxury Items Including Foreign-Made Bags and Garments: Import taxes on a number of consumer goods commonly bought while travelling –ranging from clothing and sunglasses to bags and blankets will be lowered in China from 1 Jan 2016. The tariff on sunglasses will drop to 6% from 20%. Chinese are expected to spend $229 billion abroad this year, up 23% from 2014. ‘Bakugai’ the Japanese word for “explosive buying by Chinese tourists” has been awarded word of the year in Japan.
Decoding China’s Fashion Culture: A Q&A With Angelica Cheung: Vogue China’s editor-in-chief for the past ten years shares her thoughts on the obstacles Chinese designers will need to overcome, the world’s fascination with Chinese couture, and what China’s consumers will be buying next.
Adidas Takes on Nike in Fight for China’s Sportswear Crown: Adidas is banking on its understanding of Chinese consumers and their regional and city tier variances to grow in China. Consumers in lower tier cities “want a versatile piece of footwear, or they want apparel they can do sports in but also go to social occasions in … in lower-tier cities, it’s okay to go to a wedding or to work in Adidas.”
The Rise of Online Vocational Schools in China: China is forecast to have more than 120 million online learners by 2017, 80% more users than 2013 and more than twice the revenue at ¥173 billion ($27 billion). Vocational education stands out as one of the key drivers of online learning.
Why Is Baidu Building Driverless Cars?: 12 million fully autonomous vehicles are expected to be driving globally by 2035 with China being the largest market by that time. Chinese consumers are more open to the idea of automated driving than those in Germany and the U.S. and are also willing to pay extra for connected car services according to a 2014 Nielsen survey. Sales of electric cars in China have almost tripled this year and are expected to be 220,000-250,000, even more than the U.S.
That’s the Skinny for the week! See previous newsletters here. Contact China Skinny for marketing, research and digital advice and implementation.
The block is another example of the un-gentlemanly tactics that China’s big Internet players often employ in the fiercely competitive market. The latest scheme is nothing new; way back in 2008, Alibaba blocked Baidu from indexing Taobao sites. More recently, WeChat QR codes were banned from Taobao, and Alibaba’s Alipay Wallet was disabled on WeChat, to name a few.
Whilst much of the dialogue between the big players has been banning, blocking and cheap jabs in the press, there are also times when the big boys cast aside their differences and form strategic alliances to fend off other foes. Baidu and Tencent have been working with Wanda to create smart malls in hope of warding off Alibaba’s growing retail dominance. Even Alibaba and Tencent merged their taxi apps to keep the formidable Uber at bay. It’s the Art of War 2.0.
With China’s big Internet players’ becoming so deeply entrenched into almost every category in China, this gamesmanship will have an impact on many of us. We only need to look to the travel industry where digital channels are the most popular way that Chinese research and book travel. Yet with Qunar, and now Ctrip, owned by Baidu, transparency for travel-related searches are sometimes in question. Similarly, Tencent’s shareholding of JD gives the platform a visible advantage with exclusive listings on WeChat.
They are the obvious examples, but as the online giants’ acquisitions creep more into the physical world, it is likely to change the playing field offline as well. Take JD, who recently bought a share of Australian dairy company Murray Goldburn. What impact will that have on other dairy sellers on the platform?
South China Morning Post, responsible for some of the most insightful commentary on the China market was purchased by Alibaba last week. Does this mean they’ll lose some of their objectivity and become a cheerleader for Alibaba?
The multi-dimensional nature of China’s market is becoming increasingly complex, and should be considered when developing marketing strategies and tactics. China Skinny is well-placed to assist you with that.
With Christmas upon us next week, this will be the last Skinny for 2015. If you celebrate the Yuletide, China Skinny wishes you a Merry one. Here are some interesting characteristics about Christmas in China to see you through the festive season. Happy New Year, we hope you enjoy this week’s Skinny.
![Consumers,]()
Chinese Consumers
Christmas in China: The Skinny: Christmas is becoming big business in China, but like many things, it has Chinese characteristics.
Chinese ConsumersIn China, These Are Odd Times for Uber: WeChat has blocked Uber’s accounts, again. It’s another sign of just how cut-throat China’s online market has become.
In China, Urbanisation is a Two Way Street: Many Chinese migrate to high tier cities only to be disappointed with high apartment costs, long commutes, and lower discretionary income than before, which sees some return to lower tier cities.
Why Foreign Brands Have to Figure Out China All Over Again: Many of the big foreign brands in China aren’t having the same success as in the past, as they have nothing new to offer consumers, and repeat the formula that may have been relevant in 2013, but isn’t now.
![Online:]()
Internet & Ecommerce
Taobao & Tmall Shopper Behaviour Infographic: Five years of Taobao & Tmall shopper data analysed for this fascinating infographic about Chinese online shoppers’ behaviour and trends.
Internet & EcommerceTaobao Turns Shoppers Into Sales Force For 12.12 Event: Consumers who created personal shopping lists on the Taobao app and shared them with friends were eligible for cash awards (sales commissions) if others made purchases using links on the lists for last Saturday’s 12-12 Shopping Festival.
![Premium]()
Food & Beverage
Victorian Dairy Company Uses Laser Coding on Infant Milk Formula: Having come to the China market later than some competitors, Camperdown Dairy is looking to make an impact with a “contamination-proof” lid and spoon system, and unique QR code identifiers.
Food & BeverageBeijing Tightens Oversight Over Baby Formula Makers Scarred by Safety Scandals: New rules proposed for China’s baby formula market will allow each producer to register a maximum of five instant formula brands, with only a single formulation per brand. Regulators also plan to conduct more spot checks on the 103 domestic producers and 73 foreign firms in the Chinese market.
Chilean Cherries Promoted on Chinese Airline Flights: Passengers on China Eastern flights between Beijing and Shanghai were given free Chilean cherries, with suggestions and information on how to use them and buy them using a QR code.
![Overseas]()
Chinese Tourists
China to Cut Import Duties on Luxury Items Including Foreign-Made Bags and Garments: Import taxes on a number of consumer goods commonly bought while travelling –ranging from clothing and sunglasses to bags and blankets will be lowered in China from 1 Jan 2016. The tariff on sunglasses will drop to 6% from 20%. Chinese are expected to spend $229 billion abroad this year, up 23% from 2014. ‘Bakugai’ the Japanese word for “explosive buying by Chinese tourists” has been awarded word of the year in Japan.
Chinese Tourists![Designers and]()
Fashion
Decoding China’s Fashion Culture: A Q&A With Angelica Cheung: Vogue China’s editor-in-chief for the past ten years shares her thoughts on the obstacles Chinese designers will need to overcome, the world’s fascination with Chinese couture, and what China’s consumers will be buying next.
FashionAdidas Takes on Nike in Fight for China’s Sportswear Crown: Adidas is banking on its understanding of Chinese consumers and their regional and city tier variances to grow in China. Consumers in lower tier cities “want a versatile piece of footwear, or they want apparel they can do sports in but also go to social occasions in … in lower-tier cities, it’s okay to go to a wedding or to work in Adidas.”
![Schooling and]()
Education
The Rise of Online Vocational Schools in China: China is forecast to have more than 120 million online learners by 2017, 80% more users than 2013 and more than twice the revenue at ¥173 billion ($27 billion). Vocational education stands out as one of the key drivers of online learning.
Education![Autos and]()
Cars
Why Is Baidu Building Driverless Cars?: 12 million fully autonomous vehicles are expected to be driving globally by 2035 with China being the largest market by that time. Chinese consumers are more open to the idea of automated driving than those in Germany and the U.S. and are also willing to pay extra for connected car services according to a 2014 Nielsen survey. Sales of electric cars in China have almost tripled this year and are expected to be 220,000-250,000, even more than the U.S.
CarsThat’s the Skinny for the week! See previous newsletters here. Contact China Skinny for marketing, research and digital advice and implementation.
The post Dirty Tactics in China appeared first on China Skinny.