Is it true that consumers nowadays need less stuff? Statistics show that in the West at least, the long shopping spree is ending—people are spending more of their disposable income on recreational activities like travel and dining in good restaurants, but less on buying things. Even in China, a country that many thought to have just entered a material era, people have shown less interest in buying new things. What on earth is “minimalism”? What are the reasons behind this trend? For business, minimalism undoubtedly presents a challenge. What can you sell to people who’ve decided they don’t want more?
The wish to be healthier and the benefits that can come of it are boosting the growth of fitness gyms and sporting events. During the past couple of years, over 37,000 fitness clubs mushroomed in China. And in 2016 alone, 2.8 million people participated in 328 marathons, the latter number now being 14 times the level of five years ago, according to the 2016–2017 China Fitness Industry White Paper and the Chinese Athletic Association (CAA). So Chinese consumers are ready to pay for health and wellness, but have the fitness clubs figured out their best offer?
Wellness tourism is a $3.7 trillion market globally and China is becoming one of the largest source countries for tourists who wish to combine tourism and medical treatment. 2016 saw the greatest number yet of Chinese tourists opting for such medical travel, and the largest spending ever. The rising numbers can be explained by a lack of medical resources domestically combined with people making overseas medical tours a form of luxury entertainment. What are the most favorable destinations for medical tourism? How do people book these tours and how emerging tourism companies make money from such customized trips?
NetEase is the Chinese internet pioneer you have probably never heard of. Founded in 1997, before its bigger and better-known Chinese internet peers Baidu, Alibaba and Tencent (collectively known as BAT), it is largely unknown outside of China. NetEase is currently making big pushes into many new businesses: e-commerce, online learning, music streaming and a host of other businesses, but it still has a long way to go to climb back to the top of the China tech tree. Analysts note that NetEase lacks the breadth of its rivals’ businesses, and that will likely stymie its growth, unless it can continue to diversify successfully.
Fifteen years ago, pet ownership was seen as a pastime enjoyed only by the rich, but today more and more Chinese families are hosting fluffy friends. In China, 73.2% of pet owners fall into the 20–35-year-old category, meaning the vast majority of pet owners are not retired people who have spare time, but the young professionals who tend to be more generous on spending money on their pets—for their food, toy and spiritual needs. China’s pet economy is growing like never before, and the trend will only continue.
At the enormous Pacific Department Store on Shanghai’s Huaihai Road, barriers block the street entrances and windows are shuttered. The store, which was one of the largest on one of the city’s busiest shopping streets for nearly two decades, closed in January. The shell of the store now sits incongruously opposite the K11 mall, which has been thriving ever since implementing a smart re-think of the shopping mall concept a couple of years ago. The lesson of the different fates of these two shopping centers is clear—adapt or die. Retail is not declining in China, it’s just changing.
Huawei is one of only a few Chinese companies that has become truly global, deriving more revenue abroad than at home. Long a telecom equipment provider, Huawei shifted its focus to consumer devices and took only five years to become the second most profitable Android smartphone maker and the third largest in terms of production. How did the company manage to do that, given that the smartphone industry is highly competitive? And smartphones are only the highest-profile part of the sprawling telecom giant. With over 170,000 employees across the globe, what is the company’s management system like and what could we learn from Huawei’s model?
After incredible growth in recent years, e-commerce in China seems to be slowing down. One reason behind this is the high penetration rate. By 2016, 62% people in Tier 3 and 4 cities were shopping online, while the number in Tier 1 and 2 cities stood at 89%. On the other hand, consumers in China have also changed over time, now the middle class are shifting their money from cheap products to premium services and goods where experience and recognition ties take priority. So does it mean online retail will go gloomy and physical stores may return to the spotlight?
Most of us have heard that the secrets of our lives are hidden in our genes. As the technology advances, genetic tests have become common in certain situations, such as prenatal tests and medical treatment. Also, from genetic test results, professionals can read things like your personality, talent and health risks. Many Chinese companies, though with no intention of becoming “fortune tellers”, are luring people to do genetic tests and offer easy-to-read talent results–and public demand is running high. Startups are receiving millions in funds for making this technology accessible to ordinary people. But is the model of selling cheap genetic testing services sustainable? And are these tests accurate?
China strives to be a consumer-based economy, so it isn’t surprising that advertising spending has risen by leaps and bounds over the past few years, especially as people become more affluent and are expecting tailored ads. However, the ad spend is also changing to reflect the times. Mobile spending has risen ten-folds in the past three years, while print spending is slowly dropping off. Outdoor ads see consistent growth, while online advertising in 2015 was not as popular as it was in 2014. More changes are sure to come along as the digital disruption continues.