1) Baidu is China's main search engine, with over 556 million regular users, which is equivalent to all Google users in Europe and Asia combined.
2) Online transactions in China reached $301.9 billion USD in 2013 and are expected to surpass $651 billion USD by 2017, representing rapid growth in e-commerce.
3) Over 300 million Chinese were online shoppers in 2013, nearly half the total internet population, and their numbers grew by 48.9% that year, demonstrating China's movement towards online shopping.
Guide to China Digital Performance - Retail Marketing
1. Global E-Commerce Leaders Forum
February 3, 2015 | NYC
Guide
to
China
Digital
Performance
Retail
Marke+ng
China
Search
Interna+onal
2. Population of China: 1.35 billion
Online Population: 618 million
Baidu’s Reach: 556 million
Baidu
is
China’s
equivalent
of
Google…
Baidu
is
the
major
search
engine
in
China
with
over
556
million
regular
users.
That’s
the
equivalent
of
all
the
Google
users
in
Europe
and
Asia
combined.
4.
Online
transacEons
reached
$301.9
billion
USD
in
2013.
It
is
expected
to
surpass
$651
billion
USD
in
2017.
Chinese
Online
Transac+ons
have
exploded
$75.03
$127.69
$212.08
$301.11
$398.76
$491.54
$585.94
$673.83
75%
70%
66%
42%
32%
23%
19%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
2010
2011
2012
2013
2014e
2015e
2016e
2017e
TransacEons
USD
Billions
Growth
Rate
(%)
Source
iResearch,
“2013
eCommerce
market
core
value
analysis”
5.
Overseas
e-‐commerce
transacEons
reached
$12.5
billion
USD
in
2013.
The
projected
growth
rate
is
over
100%
in
2014,
reaching
$25.3
billion
USD
by
the
end
of
the
year.
Overseas
e-‐Commerce
Transac+ons
are
growing
at
an
even
faster
rate
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2009
2010
2011
2012
2013
2014e
$0.8
$2.0
$4.3
$7.9
$12.5
$25.3
China's
Overseas
e-‐
commerce
transacEons
Source:
100EC,
“2013
China
online
retail
market
insight
report”
6.
The
middle
classes
are
expanding
beyond
the
largest
ciEes
more
rapidly
&
in
greater
numbers
than
any
market
has
ever
witnessed.
The
number
of
Middle
and
Affluent
Consumer
HOUSEHOLDS
in
China
will
be
the
same
as
the
US
by
2020
All
is
driven
by
the
Chinese
middle
class
Source
BGS
Consultants
Middle
and
Affluent
Consumers
(MAC’s)
Year
Households
2005
11,000,000
2011
50,000,000
2020
130,000,000*
*Approx.
the
same
number
as
this
classificaEon
in
the
USA
Chinese
conEnue
saving
habits
with
22%
of
monthly
household
income
saved,
8%
higher
than
US
and
UK
consumers
7.
There
were
over
300
million
online
shoppers
in
China
in
2013,
which
is
nearly
half
of
the
total
internet
populaEon.
Year-‐on-‐year
growth
was
at
48.9%
during
the
same
period.
And
their
movement
to
online
shopping
242
302
42.9%
48.9%
39.0%
40.0%
41.0%
42.0%
43.0%
44.0%
45.0%
46.0%
47.0%
48.0%
49.0%
50.0%
0
50
100
150
200
250
300
350
2012
2013
Online
Shoppers
(Millions)
%
of
Total
Internet
Users
Source:
CNNIC,
“China
internet
development
status
report”
8. They
use
all
the
same
tools
as
consumers
in
the
west
Source:
Nielsen,
GlobalWebIndex
Wave
6
Search
Engines
80%
Watched
Video
72%
Listened
to
Music
77%
Instant
Messenger
67%
Uploaded
Photos
60%
Activities performed online % Of users
Reviewed a product or brand online 74.58
Used webmail 74.08
Watched a video clip 71.64
Used internet banking 71.29
Purchased a product online 70.79
Used instant messenger 67.2
Uploaded photos online 60.47
Used online office applications 59.62
Post comment on forum / bbs 55.63
Manage your social network profile 54.04
Left a comment on a story on a website 53.39
Used a micro blogging service 52.04
Brought prod/serv through group buying site 49.55
9. But
are
even
more
socially
connected
China
has
the
most
acEve
social
media
society
globally
and
is
more
important
for
brand
awareness
building
than
perhaps
anywhere
else
in
the
world
270 million active users on Weixin
95%
of
Chinese
trust
a
brand
more
if
on
social
media
85%
of
Chinese
online
shoppers
share
the
experience
on
social
media
40%
of
online
shoppers
follow
brands
on
social
media
10. • In
2012,
mobile
transacEons
totaled
$7.8
billion
USD,
represenEng
3.7%
of
all
e-‐
commerce
transacEons
in
China.
• However,
by
2015
mobile
commerce
in
China
is
forecasted
to
more
than
quintuple,
to
$41.4
billion
USD,
represenEng
8
percent
of
all
e-‐commerce
transacEons.
• According
to
data
presented
by
Taobao,
the
busiest
Eme
of
the
day
for
mobile
shopping
is
10pm,
and
purchases
made
by
mobile
devices
are
67
seconds
faster
than
purchases
made
on
personal
computers
Connec+vity
across
mobile
has
led
to
massive
mobile
shopping
growth
12.
The
top
3
reasons
for
China
online
shoppers
to
purchase
overseas
are
compeEEve
prices,
product
quality
and
the
scarcity
of
products.
They
shop
offshore
for
a
number
of
reasons
Source:
100EC,
“2013
China
online
retail
market
insight
report”
Product Quality
Product Scarcity
Competitive price
Recommended by friends
More variety
Better service
Security
Better logistics
Easy to "Click & Buy"
Ease of refund / return
Others
21.8%
21.2%
20.3%
8.2%
6.0%
5.7%
5.5%
3.8%
2.9%
2.7%
2.0%
13.
Due
to
the
concerns
in
price
and
quality,
fashion,
personal
care
and
baby
products
are
the
most
in-‐demand
product
categories
for
overseas
e-‐commerce
and
buy
different
products
compared
to
local
transac+ons
Source:
100EC,
“2013
China
online
retail
market
insight
report”
5.8%
6.0%
7.3%
11.4%
37.8%
Books and Music
IT Products
Household Goods
Virtual Card
Fashion
Top 5 items purchased online
by Chinese in China
7.7%
9.4%
12.6%
12.9%
16.0%
Digital Products
IT Products
Baby Products
Personal Care
Fashion
Top 5 items purchased online
by Chinese on Overseas
sites
14.
The
majority
of
online
shoppers
in
China
are
aged
between
25-‐30
regardless
of
whether
they
shop
on
China
based
or
overseas
e-‐commerce
sites.
80%
of
them
are
under
35
yrs
of
age
Source:
100EC,
“2013
China
online
retail
market
insight
report”
1.10%
6.80%
10.90%
25.30%
39.70%
15.70%
0.60%
51 and above
41-50
36-40
31-35
25-30
19-24
Under 18
15.
Most
of
the
online
shoppers
who
purchase
overseas
are
living
in
Tier
1
ciEes
in
China,
like
Beijing
(12.2%),
Shanghai
(13.2%),
Guangzhou
(14.1%),
etc.
Majority
are
living
in
Tier
1
ci+es
but
this
will
change
over
the
coming
period
Source:
100EC,
“2013
China
online
retail
market
insight
report”
14.1%
13.2%
12.2%
9.2%
7.2%
5.2%
4.0%
3.7%
Guangdong
Shanghai
Beijing
Jiangsu
Shandong
Zhejiang
Fujiang
Heibei However,
recently
a
new
trend
has
emerged
that
shows
more
and
more
online
shoppers
are
coming
from
Tier
2
ciEes
or
below,
accounEng
for
nearly
30%
of
the
total
overseas
online
shoppers
populaEon.
17.
Ingredients
for
success
" Protect
your
brand
and
own
it
" Trademarks,
Chinese
language
brand
&
domain
" Block
compeEEon
on
search
against
the
above
" Develop
awareness
" Display
(banner
&
video)
audience
buying
through
RTB
" Build
performance
" Integrate
SEM
and
Re-‐targeEng
(search
and
audience)
" Unified
tracking
18.
Protect
your
brand
and
create
a
Chinese
language
version
Protect
your
brand
and
own
it
to
maximize
query
coverage
Search
Volume
Search
Volume
Search
Volume
(Monthly) (Monthly) (Monthly)
香奈儿 354,000 Chanel 141,000
迪奥 216,000 Dior 171,000
卡地亚 207,000 Cartier 72,000
路易威登 201,510 LV 516,000 Louis Vuitton 39,000
爱马仕 168,000 Hermes 54,000
阿玛尼 162,000 Armani 39,000
普拉达 87,000 Prada 252,000
范思哲 84,000 Versace 48,000
菲拉格慕 63,000 Ferragamo 27,000
万宝龙 57,000 Mont Blanc 7,200
古驰 42,000 Gucci 132,000
芬迪 36,000 Fendi 13,200
蒂芙尼 36,000 Tiffany 168,000
登喜路 28,800 Dunhill 36,000
巴黎世家 23,700 Balenciaga 13,500
梵克雅宝 23,100 Van Cleef & Arpels 5,700
蔻驰 21,600 Coach 264,000
圣罗兰 12,900 YSL 48,000
博柏利 12,000 Burberry 180,000 巴宝莉 90,000
杜嘉班纳 11,100 DOLCE&GABBANA 16,500
赛琳 5,400 Celine 66,000
Miumiu 54,000
Chloe 36,000
Loewe 20,400
Chinese Brand
Name
English Brand
Name
19.
Brandzone
drives
• 100%
share
of
voice
• Exclusive
‘own’
your
branded
keywords
• Creates
over
20
points
of
entry
from
a
single
execuEon
• Integrates
with
social
media
• Available
in
rich
media
format
• 50-‐90%
CTR
Block
compe++on
against
your
brand
20. Search
&
Retarge+ng
Search
Retarge+ng
Remarket
customers
who
are
3X
more
likely
to
click
on
your
ad
Retarge+ng
Brings
back
customers
who
have
lel
your
site
without
buying
A
combined
suite
of
targe+ng
capabili+es
across
China
to
• Capture
lost
customers
from
the
sales
funnel
• Amplify
the
result
from
all
paid
channels
21.
Client:
An
established
eCommerce
player
in
China
providing
a
wide
spectrum
of
fashion
and
accessories
Objec+ve:
Maximize
the
number
of
online
purchases
and
ROI
Background:
Prior
to
the
adopEon
of
retargeEng
across
RTB
with
display
adverEsing,
the
client
was
primarily
engaged
in
paid
search
which
is
believed
to
be
the
most
effecEve
soluEon
in
driving
leads
with
maximum
ROI.
With
the
rise
of
RTB
display
in
China,
the
client
expanded
its
budget
to
include
display.
Integrated
Approach
22. Display
ad
performance
when
RTB
and
retargeEng
were
involved
achieved
a
bener
ROI
than
Search.
In
fact
CPA
was
reduced
by
65%
from
¥
48.7
to
¥17.1
when
display
had
retargeEng
enabled
through
RTB.
23. About us…
Overview
• We
are
a
Baidu
partner
not
an
agency.
That
means
our
business
model
does
not
rely
on
charging
account
management
fees.
• With
offices
in
Hong
Kong,
Macau,
Singapore,
Los
Angeles,
Sydney
and
London
we’ve
guided
hundreds
of
clients
through
the
complex
Baidu
processes.
• The
Baidu
InternaEonal
team
has
all
previously
worked
at
major
brands,
publishers
and
agencies
in
the
USA,
UK,
Australia
and
NZ,
so
we
understand
your
requirements
and
the
importance
of
managing
client’s
expectaEons.
• The
result
is
that
we’re
well
placed
to
help
you
launch
on
Baidu
in
the
most
cost
effecEve
and
hassle
free
way.
China
Search
Interna0onal
is
the
largest
Interna0onal
Sales
arm
of
Baidu.
Our
mission
is
to
educate
and
partner
with
leading
global
brands
looking
to
capitalize
on
opportuni0es
in
China.
Some
of
our
more
well
known
clients