This is the second consumption trends forecast published by MEC China.
China is changing at a dizzying pace. The ability to grasp the implications of new and upward growing trends will give marketers an edge in tackling the market. The goal of Consumption Trends China 2012 is to be a springboard to inspire marketers, and assist them to come up with new business concepts, new products/services and new experiences for consumers.
12 Consumption Trends are: Me Consumption; Eco-Friendly; Hybrid Economy; Tech 360; Virtual & Physical Worlds Seeping into Each Other; Free??Free!!; Lazy Consumption; Grass Roots Decision Makers; Alternative Sensory Experience; “Com”plex Consumption; World of Gamification; Zhai
3. Introduction
• China is changing at a dizzying pace. For some marketers, these changes
will unlock significant competitive advantages. For others, dealing with their
impact will be a major challenge. As change accelerates across the country,
the odds of missing a beat rise significantly. It‟s important therefore to have
your finger on the pulse – via the consumers.
• This is the second consumption trends forecast published by MEC China.
Some of the trends discussed in last year‟s report have become very
prominent this year. Others, such as Cluster-Oriented Consumption and
Sensory Experience Consumption, have evolved into other trends in this
new report.
• The ability to grasp the implications of new and upward growing trends will
give marketers an edge in tackling the market. The goal of Consumption
Trends China 2012 is to be a springboard to inspire marketers, and assist
them to come up with new business concepts, new products/services and
new experiences for consumers.
4. Methodology
Improvements have been made to the methodology in this round of trends forecast.
Similar to last year, we gathered input from over 50 trend scouts from different parts of
China. What has been improved was that we took the most frequently mentioned trends
and asked 565 consumers from 7 cities to rank them in an online survey. We then data-
mined a number of syndicated tracking studies on Chinese consumption and media habits
to find quantitative evidence to validate the top 12 trends.
50+ trend scouts 565 consumers from
from all over China Picked out the most 7 cities ranked the
provided information mentioned trends trends in an online
on trends survey
Data-mined a
Conduced desk
number of syndicated
Write up of report research for the top
tracking studies for
12 ranking trends
validation
5. Ranking of 2012 Consumption Trends
Ranking Trend
#1 Me Consumption
#2 Eco-Friendly
#3 Hybrid Economy
#4 Tech 360
#5 Virtual & Physical Worlds Seeping into Each Other
#6 Free??Free!!
#7 Lazy Consumption
#8 Grass Roots Decision Makers
#9 Alternative Sensory Experience
#10 “Com”plex Consumption
#11 World of Gamification
#12 Zhai
Source: MEC Trends Research 2011, 7 cities, N = 565
6. TREND 1 Me Consumption
Cluster-Oriented Me
2011
Consumption 2012
Consumption
The Chinese used to see „individualism‟ as a word with bad connotations,
applicable to people who only cared about themselves but not others. However,
the Chinese of today have come to see individualism as something to be pursued
and developed. They no longer live by the principle of “the bird that shows its
head gets shot.” Instead their unspoken slogan is “I have my own perspective”.
They are more eager to share themselves with other people and put themselves
in the limelight. The rise of personal media, including blogs, microblogs, and
personal pages, are good examples of this trend. An ordinary individual can now
have his or her own broadcasting platform. Each person is a source of
information, becoming the hub of his or her sphere of influence.
7. Personal Media
Enthusiasm for platforms like blogs and microblogs is greater in China than in
most other countries. The Chinese, generally considered reserved and rather
private, ‟careful in word and cautious in deed‟, have taken to the age of self-
expression with alacrity. This is because the internet allows one to express oneself
under a pseudonym. This sense of anonymity, and thus safety from repercussion,
lets out a long pent up desire for self-expression.
Blogging/Blog Browsing Rate of Usage of Sina Weibo
% %
Source: CC08S~CC11SU
Scope of survey: web users aged 15-40 in 30 cities
2011S = Spring 2011 data; 2011SU = Summer 2011 data
8. Show Thyself!
You in The Chinese have moved
from expressing
Writing themselves freely in words
on the internet to
appearing under the
shai spotlight as they really are.
This is yet another
breakthrough in self-
You in expression.
Person
For the second season of “China‟s Got Talent”, there were more than 50,000
entrants. From the airing of the first episode, it was the most viewed programme in
Shanghai and the second most viewed nationwide.
Although in this respect, it was similar to the first season, viewing figures this year
grew by more than 50% both regionally and nationwide. It is evident that China‟s
passion for self-expression is on the increase.
9. Everyone Chinese do not just want self-
expression. They carry this into daily
Goes consumption too and want to be
‘Custom Made’ unique in every way.
“I try to modify products I bought from “I am willing to spend a bit more to buy
the shelf to make them fit my taste” things that I believe are
% % original or one of its kind”
“I like to dress to be unique; to show that I am different from others”
%
Source: CNRS2006~CNRS2010 Scope of Survey: 30 cities
10. TREND 2 Eco-Friendly
As the concept of environmental protection starts to get through to
consumers, isolated, random environmental initiatives are seen as
inadequate. Consumers now focus more and more on the concept of the
total environment. This means connecting together all the links of life into
a complete ecological chain, and deriving from this a whole environmental
way of living, rather than just a series of short-term initiatives. Green
activities are integrated into the surrounding environment to arrive at a
“complete” natural ecological system. For example, if you take the
decision to put a plant in a room, you also have to provide decent
treatment for the insects which it attracts, since the plant and the insects
together constitute an ecosphere.
11. 58.5% of respondents stated that
they would be willing to change their
lifestyle to protect the environment.
Environmental protection no longer consists only of isolated, random
initiatives. More and more it is finding its way into every fabric of consumers‟
lives and becoming a way of living.
Source: CNRS 2011 Scope of survey: 36 cities
12. No Pollution Caused by
Environmental Protection
There is an environmental product called „zero
packaging plant‟. It comes in beautiful packaging,
with a soil and a plant. The reason it is called „zero
packaging plant‟ is because the beautiful packaging
can supply nutrients to the soil. This avoids
increasing pollutants in the course of buying green
products. The outcome is truly zero pollution.
The Shanghai Eco-House was a Best
Practice at the 2010 World Expo. Its design
integrated five major ecological principles
(wind, light, shadow, green and waste) in its
structure and technical installations. It is a
showcase of what a „LOHAS‟ house, which is
conducive to a lifestyle of health and
sustainability, is like.
13. Architecture with a life
The Shanghai Oriental Sports Center, opened in July 2011, was designed with
an eco-friendly concept in mind. A complete aquatic eco-system was built into
the man-made lake surrounding the sports center. It has put in phytoplankton,
zooplankton, shrimps, fish and decomposers etc. to make up a complete food
chain, so that the lake has the ability to self-cleaned.
14. TREND 3 The Hybrid Economy
• As the economy develops and the
internet spreads, focusing exclusively on
one’s own development is no longer a
safe policy for marketers. More and more
brands and categories are breaking out of
their own protective cocoons and
experimenting with new forms of joint
ventures: cars team up with luggage,
pension schemes with daily consumption.
There is also the development of social
TV, combining TV with mobile devices and
social networking sites. It’s not just a
question of one brand partnering with
other brands, but the different
approaches of wholly unrelated
categories are now being coupled to meet
consumers’ various needs.
15. Vualla is an application based on the iPad which fuses the
Hybrid characteristics of TV, mobile devices and social networking to
create a completely new media form, referred to as „social TV‟.
Media Users can watch TV when and where they want, and also
share related information with friends at the same time.
social
mobile social TV
TV networking
devices smart TV
sites
Vualla
16. Hybrid Economic Modes Spending Earning
Pension + consumption = ‘consumption pension’
• According to the „consumption pension‟ scheme launched by the Chongqing
government, the people of Chongqing can collect points on a card. When
they spend at designated shops, supermarkets, restaurants and hotels, these
businesses will reserve a certain amount and transfer it back to the
consumers‟ bank accounts to be paid into a pension scheme.
• So „spending‟ is not simply an outgoing transaction, it is also „earning‟ for the
future.
17. Crossover
It has become quite a craze for brands in
different fields to cooperate in creating new
products. Cars join with real estates, luxury
goods with cars, and luxury goods with leisure
products. When such ventures are successful,
it‟s a win-win situation for both parties. Each
partner gains in consumer base and an
increase in awareness & preference.
18. TREND 4 Tech 360
Changes in lifestyles today make people more dependent on science and
technology. Individuals have around them a battery of hi-tech products, each
performing a different function. Yet there are all kinds of indications that
technology integration is becoming a major trend. The various technologies are
becoming invisibly linked, so that mobile phones can control TVs, or electric
lights can modulate audio effects. In future, consumers will not be dealing with
stand-alone high-tech devices, but will find science and technology penetrating
every facet of their lives. It will be an environment that is surrounded by
technology 360 degree.
19. Android@Home
By the end of 2011, Lighting Science plans to
launch its first „intelligent LED light-bulb‟.
Mobile devices which have Google Android
(mobile phones, tablet PCs, palm-tops) will be
able to control these bulbs through a new
open source Wi-Fi protocol, so users will be
able to put their Android mobile devices to
work to adjust the lighting remotely at the
touch of a button -- easy, convenient, and
energy-efficient.
Gadgetnet
As the name suggests, the “gadgetnet” is a network
that links gadget to gadget. Its core and foundation is
the internet, but has extended to linking up gadgets to
exchange and communicate information. The
individual gadgets are more strongly interlinked than
ever before.
20. The Omnimedia Age
Cloud computing is a major driving force towards
integration of the media environment. Invisible
bridges appear between all the different channels,
and they link up with and act on each other.
Information picked up in one medium can then be
followed up in another medium.
Different media can also interact in real time,
allowing for the creation of truly collaborative
content.
Shanghai Media Group has a new entertainment
program, “Date on Saturday,” which has come up
with an App that allows mobile phones & tablet
PCs to interact with the TV program. Viewers
can sign in using QR-codes and interact with the
celebrities on the show. They can also look for
like-minded individuals via LBS technology. In
this way, there is seamless integration of the big
and small screens, providing an omnimedia
experience to consumers.
21. TREND 5
Virtual & Physical Worlds
Seeping into Each Other
It is becoming more difficult to make a
completely clear distinction between the
virtual world and physical world, and
consumers can shuttle between them at
will. Relationships, experiences and
emotional exchanges in the virtual world
inevitably have a direct or indirect effect
on consumer behaviour and purchase
decisions in the real world. Similarly,
experiences in the real world will
determine consumers‟ opinions, attitudes
and influence in the virtual world. The
virtual and the physical worlds affect and
change each other, and the boundary
between them becomes ever more
tenuous. The growth of the O2O (Online
to Offline) mode cannot be ignored.
22. The Virtual The virtual world is acting more and
more as a guide to real life, and is
„Lights Up‟ the Real having an enormous effect on actual
consumer behaviour.
“When I need information, the first thing I
% think of is to search on the internet”
“Virtual Buying Guide”
QQ Show, which lets consumer try
out clothing on a virtual image, also
displays at the bottom of the page
garments and shops on Taobao
which match the clothes consumers
are trying on. This makes it easier
for consumers to buy.
% “Websites usually visited on the internet are
related to information on lifestyle”
Source: CMMS2003S~CMMS2011SU Scope of survey: 15-40y.o. in 30 cities
23. Consumption Offline
Offline Creates Online +
Posting Online
Chinese love to comment and share online. For
more and more restaurant diners, the first thing
is not to eat but to tweet. They instantly publish
their reactions to the food on the internet,
sharing them with other people.
Experience Offline + Action Online
Taobao Mall in Beijing set up the first offline experience centre for home decoration, bringing
together e-shopping and offline sampling. This is to facilitate consumers to make better choices
when they buy online. When consumers have finished looking at the products in the physical
world, they can go straight to the service terminals provided, log on to Taobao, and place orders.
24. Mobile phone QR-code scanning involves applying the
QR-Code mobile’s image-recording ability to the scanning of QR-
codes and retrieving the information stored there. This is
Shopping followed by further steps such as going online, sending a
text message, dialing a number, exchanging information,
or entering text automatically.
E-shopping is no longer just an
online activity. It is increasingly
penetrating consumers‟ real lives,
becoming available at any time or
place.
Yihaodian, the famous online
supermarket, offers QR-code
shopping in every big Shanghai
metro station. Each product shown
in giant LED advertisements has its
own QR-code, which consumers
can scan with their mobile phones.
The product then goes into their
Yihaodian virtual trolley and
consumers can proceed to check-
out online.
25. AR Online Dress Show Using the latest augmented reality
(AR) digital technology, the
Yishion clothing brand has
launched its “AR online fitting”.
After consumers buy a Yishion
product they will be invited to take
part in this activity digitally. With
a web-cam, they can try out
different outfits with AR-codes,
take photo shots and make them
into a video at the same time.
This video is then combined with
Han Geng into an advertisement
for the product, with the consumer
becoming the star of the ad.
This is not just a fusion of offline
with online. This mode is great for
promoting sales in stores.
26. TREND 6 Free??Free!!
In times when almost every product/service
goes into a price hike, the appeal of “free” as
a marketing concept is obvious. Nowadays,
there are opportunities for consumers to
obtain products/services without having to
pay.
More and more brands are deploying a free
strategy in their marketing campaigns. With
little or no perceived differences between
products these days, the ability to induce
consumers to try a product, albeit by a free
strategy, is already a foot in the door for
marketers.
In some cases, “free” has gone from its initial
role as a promotional tool to a long term
business model. “Free” can come in very
different formats, such as barter, consumers
participating in a promotional activity or
paying for products by performing services for
the marketer.
27. More and More
Acceptance of Free Trials
Willing to Try %
Sayings like “the sky doesn‟t rain pie” and
“there‟s no such thing as a free lunch”
represent a traditional way of thinking
which used to have enormous influence.
However, Chinese nowadays are more
willing to give new things, such as free
trials, a try.
Barter Bartering goods was the way people used to trade before the
invention of money, and now it‟s making a comeback. However,
Consumption nowadays, barter is no longer confined to material things, but
intellectual and artistic goods are also included. People exchange
not just physical objects but experiences, feelings, information and
skills. At emotional give-and-take parties, for example, everyone
who takes part gets to hear other people‟s riveting stories, but is
also expected to share his/her stories in return. The old saying is
right: “The talk of money hurts (people‟s) feelings”. This new
barter consumption, which is rich in interest and excitement, has
become a new medium of emotional exchange and entertainment.
Source: CMMS2004S~CMMS2011SU Scope of survey: 15-40 age group in 30 cities
28. Free virtual $$ for watching ads
Noisey was a joint event organized by
Dell and Intel in 2011. This event was
targeted at Chinese young adults, and
involved a “FREE” crossover platform. It
utilized the 17bi (a virtual coin) of
InGameAd Interactive.
It embedded Noisey video footages into a
number of social games, working like the
YouTube for gamers. When the gamers
watched Noisey ads, they were rewarded
with virtual money in the form of 17bi,
which they could then use in social
games across different platforms to
redeem props, or as currency.
This is a win-win situation: advertisers
get their ads watched while gamers can
earn virtual points.
Number of fans jumped from
118 to 9901!!
29. VANCL Star
VANCL Star is a promotional activity launched by VANCL to enable consumers „to get
fame and economic benefit from their fashion sense‟. Individuals can upload their own
„Vancl ensemble‟ on to the internet, and other users can check them out and vote on them.
How many VANCL products are sold due to a
consumer‟s clothes matching sense will be a
criterion for whether the consumer will be
ranked as a „Star‟. The sales ranking then
puts on record how much influence each
„Star‟ has. The more influence the Star has
on VANCL sales, the greater the personal
commission that s/he is given. Getting
something back without paying anything out
is a dream investment model for consumers.
For VANCL, the influence of their „Stars‟ is
the basis on which to sell more apparels.
30. Comments = Money Influence = Opportunity
Being able to buy with no effort at all is
one of the ways in which the web- This is another version
based “free” strategy currently of the “free” strategy:
manifests itself. Consumers‟ your influence in the
participation in promotions becomes a virtual world determines
way to earn (virtual) money. your probability of
success, since the more
“Follow + Comment”= $ people you bring in the
more chances you get to
“Follow + Participate”= $ draw a prize.
“Follow + Forward”= $ Promotion such as this
“groupon for nothing”
scheme organized by
dianping.com involves
utilizing consumer‟s
influence and rewarding
them for flexing that
influence.
31. TREND 7 Lazy Consumption
As the pace of life heats up, consumers are too busy to make a proper response
to all sorts of things, and they begin to feel that there are not enough hours in the
day. So people dream of taking on a „servant‟, someone to help them filter
information, make exact plans and put forward good recommendations. In answer
to this surging demand, all sorts of intermediary and pooling services have sprung
up, like Douban Same City: dates, places and services or activities are all set out in
a table. All the consumer has to do is to pick the one he wants from the many
excellent choices on offer.
32. Aggregation Websites Activity Managers
As the intellectual and artistic life of
Aggregation sites like qunar.com the Chinese become richer, various
allow consumers to get from a single websites dedicated to arranging
site information which they would leisure activities have sprung up and
otherwise have to search for in many attracted attention. Sites like Douban
different places. Same City, Gewara and Shanghai
Specialist aggregation sites, like Culture Information Center help
“Frontiers of Science”, keep people up consumers sort through what‟s on or
to date on news and new directions in what‟s going to be on (movies, plays,
different fields. concerts etc.) in different cities and
also offer special deals on tickets.
33. @TaobaoForTheLazy
Has this ever happened to you? You are walking on the street or browsing online and you see
something that takes your fancy, but you have no idea what brand it is or where to buy it.
However, going off on a search to find out about it is going to be quite an undertaking, far too
troublesome for the efficiency-conscious modern consumer in you..
It is at this point that the arrival of @TaobaoForTheLazy is greeted with cheers.
@TaobaoForTheLazy, as the
name suggests, is a service
targeted at lazy people. If you
publish here a photo of the
product you are looking for, all
sorts of experts will quickly give
you the information you want,
saving you time and effort.
34. TREND 8
Grass Roots Decision Makers
There‟s an ancient Chinese saying which gets it right: “When everybody
adds fuel the flames rise high.” This is exactly how to succeed in the
internet age, by deploying the wisdom and strength of the general public to
the greatest possible extent. A single move or pronouncement from a
marketer can quickly get a massive response, and can end up making big
waves. The invitation to “tell me your ideal dessert” appeared on a
microblog, and despite its simplicity was answered by a vast number of
netizens. Since it is so easy and convenient to get involved like this,
consumers do not need to think too much. If, by lifting a finger, consumers
can change the world, why not do it?
35. Popular Participation Have made comments on the internet
%
Is on the Rise
The proportion of Chinese who have
commented online has risen from 2.8% in
2009 to 9.4% in 2011. Things they have
commented on include community affairs,
entertainment gossip and shared items from
friends. Popular participation in China is on the
rise. Instead of just following instructions from
others, people are now becoming aware of the
role they themselves can play.
Grass-Roots Detectives
When the Guo Meimei story was exposed, the public‟s
craving for the real truth made them intensely interested.
Huge numbers of netizens tried to unearth and piece
together the facts.
Fooling the public is becoming less and less easy, as
more and more people are aware of their powers and
rights. People will get together and assert their authority.
Source: CMMS2009A~CMMS2011SU Scope of survey:30 cities
36. Xiaomi mobile phone – a live OS
This year, while most people around the world are waiting for the launch of
a new version of the iPhone, another mobile phone was enthusiastically
awaited for by the Chinese consumers. This is the Xiaomi mobile phone.
One of the characteristics of the Xiaomi
mobile phone is that it uses an original
designed operating system called MIUI. It is
the first Chinese designed OS that allows
zealots to participate in the improvement of
the original design. Every zealot of Xiaomi
can contribute to the betterment of the mobile
phone and is a designer of the product.
Upgrades are carried out on every Friday.
MIUI is a live operating system, allowing
consumers to continuously experience a
better version of the mobile phone. Xiaomi
was very well received and got 300,000 orders
within the first 34 hours of its launch in
October 2011.
37. Buyers Creators
The VW „People‟s Car Project‟ is an interactive creative platform which invites
consumers into a dialogue. Consumers can join the process of creation. VW stimulates
their creative imagination. In return, consumers with their innovative and creative ideas
inject new inspiration into VW‟s brand creativity.
VW is completely committed to listening to what Chinese consumers want, and „The
People‟s Car Project‟ is an extremely interactive and engaging way into consumers‟
hearts. Consumers can vote on all the original design features, and those which get
the most votes will end up being used by VW in the production of the final product.
This is surely the formula for producing a winning product which is completely in line
with what consumers want.
38. TREND 9
Alternative Sensory Experience
Sensory Alternative
2011
Experience
Consumption
2012
Sensory
Experience
Traditional sensory experience involving a single sense, however powerful it
may be, is becoming less and less able to grab consumers‟ attention.There is a
better chance of their interest being aroused if they have experiences, in more
than one of their senses, which go beyond conventional expectations.
Sometimes this means switching to another sense, such as voice-controlled
instead of touchscreen games, or food being played instead of simply eaten.
Sometimes different senses are combined – for example 4D movies exploit the
linked activation of different senses. These new-style novelty experiences act
powerfully on consumers to persuade them to try new products and brands.
39. % Consider the product’s outlook when buying a camera
For hi-tech products like mobile
Consider the product’s outlook when buying a mobile phones and cameras, high
phone
performance is not enough. For
Chinese consumers, they are not just
communication or imaging tools, they
are also fashion accessories. For this
reason, how they look visually is
getting more and more attention, and
can even be the deciding factor when
a purchase is made.
%
Interest in touchscreen in the China
Touch-screen mobile phones are one of the % mobile phone market
great technical breakthroughs of the past few
years, and are becoming more and more
popular with consumers.
The sense of touch is now one of the things
people care about most in a mobile phone.
Just a couple of years ago, who would have
asked: “How does the phone feel?”
Source:CC03S~CC11SU Base: 30 cities S=Spring, SU=Summer, A=Autumn, WI=Winter
Internet Consumer Research Centre (ZDC), 2010-2011
40. Voice-Controlled Games
Do you remember when you were
young, there were „hands and feet‟
games, and you twisted yourself
into strange shapes to use hands
and feet together? Nowadays,
some games require „no hands, no
feet‟. Voice-controlled games have
appeared, changing all our
assumptions about how games can
be played. They have been greeted
with astonishment and great
enthusiasm.
The game Pah! for the iOS platform involves
using a voice-controlled spaceship to
eliminate obstacles. As the player‟s voice
goes up or down, the spaceship heads
Pah!
skywards or earthwards to dodge the
asteroids heading towards it. With a short,
sharp “pah” sound you can launch a missile.
41. Handsets Not Just for Hands
A transparent mobile that can “change faces”: the Window Phone.
With the Window Phone, when you touch the „weather report‟, information are
delivered in multi-sensory form. This completely overturns what we usually do
with our mobiles, and so has aroused a lot of interest in the market.
42. TREND 10 “Com”plex Consumption
As today‟s consumers get more sophisticated and have more money in their
pockets, they no longer consume just to fit in with other people‟s taste. They
also no longer confine themselves to practical products and services. Buying
for interest is becoming the consumption focus of more and more Chinese,
and in consequence the „complexes‟ have arrived: cartoon character complex,
travel complex, IT complex. On the things they are especially interested in,
those who have a complex will spend their money without stint. What kind of
„complex‟ do you have?
43. Bye Bye, Rationality
The Chinese have always been thrifty, so
they like to buy things that are functional. “I will buy things that I do not need and
are not practical, so long as I like it”
When you buy something the first question %
you get asked is: “What are you going to
use it for?” But these days, with the
development of the economy & society, we
find that Chinese are more and more ready
to act on their interests and enthusiasms.
If they like something they may be
prepared to buy it even if it has no practical
use. Whether you like something or not,
instead of its usefulness, has become the
main criterion for buying.
As the Chinese craze for virtual products Badge Fanatics
gathers momentum, some people are prepared
to spend a lot of money and time getting badges
from QQ or Weibo or jiepang.com, even though
they are of no practical use and cannot be
touched.
Source: CNRS2006~CNRS2010 Scope of survey: 30 cities
44. The Foodie
There are some people who have only one interest. They
love to taste all kinds of fine food. These are the „foodies‟,
and they have recently been on the rise. They let no
difficulty stand in their way and they overcome all
obstacles just to eat.
Apple hairstyle
The Apple Fan
As Apple becomes more popular
in the Chinese market, a group
known as „Apple fans‟ has come
into existence. They are
passionately loyal Apple
enthusiasts who own every kind
of Apple products and would like “Apple Family Portrait” from an Apple fan
their lives to become all Apple.
This is one of the reasons why
last year one eighth of Apple‟s
Eat hotpot while on IV drip
profits came from China.
45. The Media “Com”plex
With the growing importance of the various media in consumers‟ lives, the media
have joined products and brands as a target of “com”plex consumption. These
consumers use all kinds of media many times a day, and they cannot stop
themselves. Phrases like „microblog complex‟, „Xiaonei complex‟, and „TV complex‟
are on everybody‟s lips these days.
46. TREND 11 World of Gamification
„Be serious!‟ is a phrase which has echoed across many
generations, giving voice to the respect Chinese have for
sobriety. However, playfulness is an ancient
characteristic that is written into the human genes, and it
will never be completely stamped out. „Amusing yourself
to death‟ is back on the scene, but this time consumers
are not simply after the entertainment or amusement, but
have developed an interest in some basic game
mechanics inherent in game-playing, such as fun,
competition, rewards and levels. One example is game-
based teaching known as „edutainment‟. Nowadays,
more and more game mechanics are being applied to
commercial practice, attracting consumers to participate
and rewarding them as they move to ever higher levels.
%
As far as the Chinese are concerned, the days of belt-
tightening poverty have faded from view, and enjoying
the present moment is the new theme. For this very
reason, game mechanics are welcomed by consumers.
It is like the line which crops up often in martial arts
fiction: “Time is something I‟m not short of; so there‟s no
reason not to have a bit of fun.”
Source: CMMS2003S~CMMS2011SU Scope of survey: 30 cities
47. Comparison of What Chinese & Americans Do Online
instant messaging As has been shown in
many research, Chinese
on-line music
are keener on games
news-reading than other people. Many
on-line video people in China have
search engines been deeply influenced
by these games, not
on-line games
China least the new generation
email
USA of young people, who
blogs have been immersed in
social networking
them throughout their
upbringing. The game
e-commerce mechanics on which
on-line banking games are built play an
discussion forums important role in making
job-seeking the games addictive.
Source: China‟s Digital Generations 2.0, BCG
48. Games for Adults
Against the claim that games are the special
preserve of kids, the success of Angry Birds and
Fruit Ninja in the adult world reminds us that
perhaps adults need games even more. Adults
are under lots of pressure in their daily lives, but
they cannot let off steam the way children do.
Games have become one of the ways in which
they relax and let off steam. This provides the
basis for gamification, in which marketers employ
game mechanics to attract consumers.
49. “Class” Society
If somebody introduces himself by saying
“Hi, I‟m the Laird of the Oriental Pearl
Tower”, do not think he is crazy, because
that is who he really is. Or rather, that is
who he is in
the virtual world
Badges, titles, certification…… the virtual
position and status conferred by these
virtual objects encourage active
Laird
participation. The reason is that every one
wants to prove that s/he is “a person of
status!”
50. A Sense of Competition
With the rise of social network sites such as
Renren and Weibo, statistics such as the
number of „fans‟ (like Twitter „followers‟) and the
number of times a person‟s Weibo post has
been forwarded or commented on, have
become a measure of personal influence.
When the need for emulation kicks in, the
Chinese tend to pit themselves against others
in the virtual world. There is actually a market
for selling „fans‟.
Nike+ uses „community‟ concepts to appeal to consumers‟
natural competitiveness, setting up head to head
competitions in sporting activities and thus encouraging
people to do sport. In the Nike+ online community, users
can issue all kinds of challenges, daring their friends &
colleagues to trials of strength. Let‟s see who‟s the better
sportsman?!
51. They Can Play Together
There is an often heard sentence, “They can
play together,” which brings out the social
function of gaming.
Famous sports brands like Nike, Puma and Li
Ning have all taken to promoting „night
running‟, which, as the name suggests, is
going running after dark.
As people run, others begin to tag along, and
the group gradually swells in number. Through
sport you get to know other people with the
same interest, and your social needs are met.
53. The „cocooning‟ man or woman is not a novelty. Faith Popcorn, the
famous US trend forecaster, first proposed „Cocooning‟ as a trend in
1992. In recent years, this trend has gained critical mass and is
becoming more prominent in China. Cocooners are called Zhais in
Chinese. The proliferation of the Zhai lifestyle brings with it an entire
Zhai economy, such as home delivery service, E-shopping, increased
need for communication and technology products etc. Furthermore,
Zhais come in different varieties. They are no longer just the stay-at-
home type. With the maturity of mobile technologies, many Zhais go
out and get around. However, they morph into IT Zhais. Despite
being and hanging around with people, their main focus is their mobile
device instead of people.
54. From 2004 to 2010 saw a general upward trend in the proportion of
consumers whose lifestyle fitted the definition of Zhais
%
Source: CMMS05S~CMMS11S Scope of survey: 30 cities
55. 76% of respondents agreed with the statement:
“The Zhaithe future. likely to be adopted by more and more
lifestyle is
people in
”
81.2% of respondents agreed that:
“E-shopping is replacing traditional shopping, becoming my main
means of consumption.
”
Source: The Zhai Lifestyle, MEC proprietary research, 2011
56. The Rise of A wall covered with take-out menus and a
Favorites folder crammed full of various e-
the Zhai Economy shopping web-sites have become an
indispensable part of life for more and more
consumers. These forms of economic activities
are part and parcel of the Zhai lifestyle. As the
Zhai community grows bigger, such services are
more in demand.
Source: Numbers of Users in the Chinese Online Market , iResearch Consulting 2010
57. New Pleasures for the Zhai Lifestyle October 09, 2011
Shortly before the Mid-Autumn Festival, Baidu Encyclopaedia made a change to its
entry under the word „Moon‟. The site visitor‟s IP address and server time were
used to establish which city they were in, and the web page showed a real time
image of the moon as it appeared where the user was. In this way, even people
who were lounging about indoors and had no intention of going out were able to
follow and enjoy the changes of the beautiful mid-autumn moon.
As Zhais grow in number, they will look with greater favour on brands or products
which let them enjoy indoors the beauties of the outside world without having to
physically go out.
58. The „IT Zhais‟
The development of mobile technology enables Zhais
to go outdoors.
Even when they actually go out, more and more people
remain in their own small world. They do not
communicate much with the outside world, or rather
they do not communicate face to face. It is in the virtual
world that they have built for themselves that they
socialize and interact with others. Two people sitting
side by side, not saying a word to each other, but
absorb in surfing on their mobiles – this has become a
common scene. These are the IT Zhais.
60. Implications & recommendations - 1
• With the continuous integration of technology and media (T3: Hybrid Economy
and T4: Tech 360), brands should have a core idea that can be expanded and
content that is liquid enough to flow from one channel to another. Conversely,
each channel can carry different pieces of information about the brand, inviting
consumers to participate in piecing together the brand content or using the bits
and pieces of information to create their own UGC (user generated content).
• With the development of T1: Me Consumption and T8: Grass Roots Decision
Makers, how to leverage the power of grass roots decision makers is the next
Mount Everest that marketers have to climb. Marketers do not just have to
invite consumers into their brand communications, but also to tap into their
creativity and innovativeness by letting them participate in the development of
products and services.
61. Implications & recommendations - 2
• The boundaries of „new media‟ will continue to broaden. With the development
of T1: Me Consumption and T8: Grass Roots Decision Makers, every
consumer can potentially be a new channel for a brand to communicate
through. At the same time, with T6: Free??Free!!, the “free strategy” is an
effective means to enroll consumers to communicate the brand message in
exchange for goods and services.
• In order to ride on the continuously growing trend of T12: Zhai, there are three
things that a brand can do:
• 1) Become a friend of the consumer in the digital world, and help them to lead a
healthy and exciting Zhai lifestyle;
• 2) Build a positive, forward looking brand personality and host events that entice
Zhais to leave their homes and go into the physical world to socialize with others;
• 3) Act as a bridge to assist Zhais to traverse the virtual and physical worlds
seamlessly.
62. Implications & recommendations - 3
• Given its huge gamer base, China will probably progress from gaming to T11:
World of Gamification faster than most other countries. Gamification is a
wildcard and lends fun and excitement to anything that it is associated with:
• 1) Deploying games in brand communication, or building game mechanics into the
purchasing process to move consumers along the purchase funnel, are great ways for
brands to engage with consumers.
• 2) Gamification can also breath new life into loyalty programs. Accumulation of loyalty
points for a consumer can be made more competitive and more social by tying the
consumer‟s progress to others for competition. If both the participants and their
friends/competitors can see the results in real time, the process create an immediate
feedback loop and can drive a sense of urgency to accumulate more loyalty points.
• Applying T6: Free??Free!! to T11: World of Gamification, games can be
designed in such a way that gamers get free gifts, points or virtual coins when
they get their friends to sign up, complete tasks with their friends‟ help and post
their accomplishments on social media websites. This gets more people to
participate, creating an endless loop of cooperative play.
63. Implications & recommendations - 4
• T4: Tech 360 is changing consumers‟ usage and preference for products. A
brand needs to incorporate new technology into its products and services, so
that the product and technology become one and the same in consumers‟ minds.
When consumers think of the new technology, they think of the brand.
Technology is also at the heart of enabling creativity and delivery of T9:
Alternative Sensory Experience and T5: Virtual & Physical Worlds Seeping into
Each Other.
• With the acceleration of pace of life, increasing pressure, and T7: Lazy
Consumption, consumer demands begin to polarize. On the one end, products,
services and technology that are simple and intuitive are welcomed. On the
other end of the scale, packaged solutions that bundles complicated steps into a
one-stop solution will also be well-received, as they cut down on the time and
resources that consumers have to put in.
64. For more information, please contact:
Theresa Loo
National Director – Strategic Planning, Analytics & Insight
MEC China
29/F, The Center
989 Changle Road
Shanghai China 200031
Direct line: +86 21 2307 7790
Switchboard: +86 21 2307 7800
theresa.loo@mecglobal.com
Project Manager & Editor: Wu Jin (Mandy)
Project Consultant: Amanda Song
Trends Researcher: Liu Jie (Jane) , Stephanie Chai, Anita Wang, Cai Jing