China Digital Marketing and Consumer Trends for 2022
Looking ahead to 2022, what digital marketing trends will be most important for businesses in China? In this article, we’ll take a look at some of the most significant changes and developments to keep an eye on. As of this time of writing, there are more than 1 billion internet users, and it will still increase by 2022.
From the increasing use of personalized and data-driven marketing to the rise of voice search, these are some key areas to focus on if you want your business to stay ahead of the curve in China. So, read on for insights into what lies ahead – and start planning now, so you’re ready for when these trends take off.
1. The Rising Middle-Class Income Earners Will Impact Global Growth
According to McKinsey, In the next ten years, 60% of urban consumption in China will be from people with an annual income of between 160,000 renminbi and 345,000 renminbi, the upper-middle-income consumers. This figure is a lot more than it is now. Another 20% could come from people with an income of more than 345,000 renminbi per year who are considered affluent.
China is a good market for discretionary categories such as fashion, consumer electronics, and electric vehicles that consumers with more money can buy. By 2030, the country will have about 400 million households with higher incomes, and there may be 10 million millionaires in China in the next five years.
One way to show that the affluent consumers are that 17% of the world’s economy comes from China, and they also spend more money on things than other countries.
2. The Next Tiered Cities Will Affect the Future of Spending
There’s no doubt that China’s 30 largest cities account for about 45% of national consumption, and the other 55% is accounted for the next tiered cities. The top 30 cities are the most powerful in terms of spending power, and these cities have had the best retail networks and service offerings over time.
But other cities outside the top 30 are also growing. Guiyang, for example, is growing fast because consumers there earn more and spend more money. Many companies plan to expand their business to more places in China where people make more money and spend it on products.
As domestic travel in China increases, numerous cities may compete for travelers’ money. The Chinese tourists are eager to travel even amid the epidemic, and domestic tourists are expected to spend a lot of money. Today, tourism is a critical part of many large cities’ economies, including Beijing, Chengdu, and Chongqing.
3. China’s New Regulations May Affect Luxury Market
The ongoing Chinese government’s scrutiny on technology companies has evolved rapidly from a focus on antitrust and data privacy to include gaming, celebrities, fan culture, and much more — all with the inclusion of international luxury brands. If continued for the long term, this can make the luxury market “a lot more boring in 2022,” as Jing Daily puts it.
Since the establishment of Beijing’s technology crackdown earlier this year, the Chinese government has addressed a more comprehensive range of issues and has significant ramifications for global luxury companies.
In a year in which luxury firms have invested significantly in marketing to Chinese consumers, recent changes to regulations for sectors such as livestreaming and gaming suggest that brand optimism about utilizing new internet platforms may have been a bit premature.
It implies that by the end of 2022, luxury marketing in China may be boring as companies are restricted about what they can say, where they can say it, and to whom they can address their campaigns.
4. The ‘He’ Economy is a Big Market To Watch Out For
A report by Deloitte and SECOO showed that Chinese male consumers had surpassed female consumers in terms of online luxury purchases. The rapid expansion of China’s wealth has led to the “mass affluent male class” (MAC), which has a strong purchasing power.
There are over 723 million male people in China. Brands must know this because it may affect how they market their products. Some apps like Xiaohongshu (or’ Little Red Book’) are already benefiting from this trend.
Consumer psychology shows that men are changing the definition of what is important to them. They care about spiritual and personal growth more than just money and a job.
Young men are interested in buying things for themselves. They think clothes and skincare that make them feel good are important. If they have a good product, then they will buy it. Cigarettes, alcohol, and vehicles are becoming less significant as male Chinese consumers are becoming more focused on maintaining a high-quality, healthy lifestyle.
5. Augmented Reality Is Part of Marketing Strategy to Woo Consumers
Augmented Reality (AR) will continue to grow in popularity to engage customers. Already popular in China for gaming and retail applications, AR is starting to be used more broadly in other sectors such as travel, automotive, and healthcare. By 2022, we can expect to see even more companies adopt AR technologies to improve the customer experience.
We have already seen companies like IKEA use AR to let consumers “test drive” furniture in their homes before buying it, and Dior employs it to create an interactive makeup guide. With the steady expansion of AR, we can anticipate seeing more and more businesses employing it in innovative customer interactions.
Now that you have a good understanding of the trends in marketing, what do you think will be necessary for your business? The decision may not come easy, and there are so many options out there, and it can be hard to strike a balance between budget and strategy.
It would be best if you consider how these trends will affect your current brand and any new projects coming up on the horizon. What’s one thing from this list that has been most interesting or relevant for your company?
Which trend would you like help with next month? Send us an email so we can provide additional assistance.