Consumer Trends 2015 CHINA
Content
CONSUMER
TRENDS 2015
CHINA
CONTENTS
26
12
28
16
5
23
18
04
18
Get Smart
What’s happening in 2015?
Why consumers will buy into this
Where next?
Real World Retail
What’s happening in 2015?
Why consumers will buy into this
Where next?
05
06
10
12
Pollution Protection
What’s happening in 2015?
Why consumers will buy into this
Where next?
7
19
22
26
28
13
15
16
Tapping In and Speaking Out
What’s happening in 2015?
Why consumers will buy into this
Where next?
29
30
32
2
Chinese consumers surveyed refers to online consumers aged 20-49 across tier one to three cities in China.
2 3
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
GET
SMART
1
WHAT’S
HAPPENING
IN 2015?
The Internet of Things – from smart
watches to smart ceiling fans – appeals
to consumers because it saves
them time and money while also
promising them convenience
and control. Wearable
technology has expanded
smart options for
personal data collection.
These connected
devices are broadening
the horizons of our digital
narcissistic culture by increasing
self-knowledge and creating more
opportunities for analysis.
The world of synced devices, home
appliances and wearable technology
will become mainstream, as trusted
retailers and manufacturers move
into the market and convert
consumer appetite into action.
What’s changing is that this is no longer
the domain of start-ups offering home hub
hardware – the major players are now
embracing the trend and raising consumer
confidence in it. Companies such as LG,
Panasonic, Cisco, and Haier have already
teamed up to make sure their future
products can communicate with each other.
Google is also launching Android TVs, while
LG is launching a new webOS operating
system for smart TVs.
New software will also help
consumers seamlessly sync
their mobile devices
with their hardware,
including home appliances. Apple’s
HomeKit enables consumers to use Siri
voice commands to control smart lighting,
doors, thermostats and other home
appliances. Our health will also benefit
as systems like Apple’s HealthKit brings
users’ data from various fitness devices
into a single location. And with the new
Apple Watch, using these programmes or
other apps becomes much easier when
they’re on our wrists.
With greater consumer adoption,
interaction with smart devices will become
much easier, and application will go far
beyond health and home. 2015 will also
see oPhone launch ‘scent messaging’
devices which work with a related app to
allow consumers to remotely fragrance
their homes – or send odors as a form
of communication. The whole idea of
integrating technology into everything will
trickle down to change how consumers
interact with everyday items like their nail
polish or food packaging.
Putting our smart devices to use could
get also easier as network providers
are adding Wi-Fi on planes and trains,
allowing people to be connected
anywhere, anytime – making it ultraconvenient for us to “Get Smart”.
1
Ralph Lauren,
Polo Tech Shirt
2
Ralph Lauren,
Polo Tech Shirt Results
1
Trends 2015 CHINA
2
4
4 5
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHY
CONSUMERS
WILL BUY
INTO THIS
Many Chinese consumers have
already adopted digital tools that
help them track their own bodies and
sync their devices.
1
Some 13% of Chinese adults aged
20–49 say that they have a wearable
digital product in their household.
Ownership is driven by affluence,
with up to 29% of consumers in the
highest personal income brackets
owning one of these devices.
More than one in three Chinese
adults (36%) say their household
has an internet-enabled TV.
Across categories, consumers are
keen to use products and services
that provide them with convenience
or greater health awareness
– two things that are
certainly relevant to
today’s connected
device market.
As many as 81% of Chinese
consumers say that they are willing
to pay more for products and
services that make their lives easier.
Meanwhile, 39% of consumers say
that it is worth spending more on the
products or services that can help to
improve health, such as paid healthtracking apps.
launch in the marketplace and such
technology will continue to evolve.
When it comes to connected
devices, multifunctionality and style
also come into play. Despite more
product offerings and the emergence
of new product categories (such as
wearable technology), consumers
are concentrating on fewer items
that are more multifunctional to
satisfy daily needs. Almost half
(45%) of Chinese consumers say
they own six or fewer consumer
technology products.
With widespread ownership of
smartphones in China, devices that
are compatible with or controlled
by apps are ripe for development;
indeed, smartphone ownership is
near ubiquitous in China as 95% of
Chinese consumers report owning
a smartphone. We have already
seen app and tablet controlled coffee
machines, such as the TopBrewer
Meanwhile, 64% of Chinese
consumers believe it is fashionable
to use wearable digital products like
the Nike+ FuelBand or Jawbone,
according to the same report.
This is certainly a global trend.
Around the world, consumers are
showing more interest in digital tools
that link their devices together.
In the US, 59% of consumers say
they would be interested in using
an app or website to control their
home. And in the UK, 76% of
potential TV buyers are interested
in a TV with the ability to wirelessly
stream content from other devices
(while 28% would pay more for this
feature).
Consumer interest in wearables
and apps that track health also
suggests huge growth potential. In
the US, 22% of all consumers have
purchased a wearable device, e.g.
smart watch or Fitbit.
In the UK, 21% of adults already
use either a wearable device or a
health-related mobile app. Roughly
one in three consumers is interested
in using a smart watch with fitness
functionality (31%), a device that
tracks heart rate, blood pressure and
movement (40%), or a device that
tracks steps and sleep (34%).
1
oPhone Uno
2
Apple Watch
3
Samsung Smart Home
4
Philips Hue
The whole idea
of integrating
technology into
everything will
trickle down
to change how
consumers interact
with everyday
items like their
nail polish or food
packaging.
2
3
4
6
Trends 2015 CHINA
6 7
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
1
Misfit Shine Bloom Necklace
Increased adoption
of wearable devices
might force more
conversations
regarding regulations
about digital device
etiquette.
8
Trends 2015 CHINA
8 9
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
1
TopBrewer Coffee
Machine and App
WHERE
NEXT?
In 2015 and beyond, we’ll see
smart devices advancing into new
areas. Wearable technology will
have to transcend the convenience
of connectivity and offer wearable
devices that are both secure and
fashionable. Indeed, increased
adoption of wearable devices
might force more conversations
regarding regulations about digital
device etiquette.
Aesthetically, wearable devices are
as much status symbols as they
are data collectors. Over in New
York, brands including Nike, Intel,
reality TV series “Project Runway”
and Digital Trends are hosting the
Wearable Technology Fashion
Competition to make wearable
technology more stylish, which
will hopefully increase adoption.
Aesthetics matter just as much, if
not more, in the home. Smart home
devices will scale back their futuristic
appearances to sit comfortably
public with innovations that go
beyond its previous Google Glass
competitor, self-steering bicycle
prototypes, or smart chopsticks that
identify food contaminants.
among analogue objects and blend
in with existing home décor, which
we’ve already seen from Philips
‘Hue’ LED lighting systems.
Overall, we’ll come to expect more
from our smart devices: wearables
that analyse our mental well-being,
smart food and drink containers that
automatically re-order replacements
and companies that analyse our
data in order to customise services
and costs. Chinese search giant
Baidu will continue to surprise the
All this constant connectivity will
increase demand for innovations
that help keep consumers’
devices charged. We expect more
companies to employ wireless
charge features – something
Starbucks is already testing in
stores. Security will also be a
concern as consumers become
more wary of placing personal data
in the cloud and on other servers.
To further the purpose behind
this data gathering, analysis will
become a key area of expansion for
companies – witness the fact that
Nike+ is backing out of the actual
device space to focus on data and
apps – and people will increasingly
share data with professionals for
analysis. We’ve already seen black
boxes that monitor driving habits,
Russian banks that give preferential
interest rates based on running
data, and MyHealthPal – a platform
that shares a patient’s data on
medication, diet and exercise with
neurologists. Data-collecting devices
will also invite companies to become
analysis providers, and the next
stage will be for banks, grocers
and doctors to do more to develop
data relationships.
10
Trends 2015 CHINA
10 11
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
POLLUTION
PROTECTION
WHAT’S
HAPPENING
IN 2015?
In 2015, pollution will become a key
media focus. The abandonment of
the Carteret Islands in Papua New
Guinea due to rising sea levels and
the Milan Expo 15’s investigation into
the future of clean water supplies will
revive discussion around emissions,
while controversy will grow around
Canada’s Northern Gateway oil
pipeline to Asia. In April 2014,
China’s National People’s Congress
approved changes to the country’s
environmental protection law, which
go into effect on January 1, 2015,
that allow for stricter punishments for
those caught polluting.
International events – some
catastrophic, some inspirational – are
putting emissions and toxicity back
on the agenda, but it’s the threat of
pollution to human – rather than
environmental – health that’s driving
technological innovation and a spate of
clean, protective products launches in
the CPG space.
It’s a growing awareness of the
link between pollution and cancer
and premature deaths – following
WHO’s revelation that pollution is the
world’s biggest environmental health
risk – that will provoke a reaction.
Since the Chinese Government
began releasing air pollution level
data in 2012, consumers have
come to learn about PM 2.5 –
‘fine particulate matter’ – an air
contaminant associated with asthma,
heart attacks and other health
problems. In response, there are an
increasing number of air purification
products available for home, office
and cars, many of which claim
to defend against PM 2.5. The
cosmetics industry in particular has
been awakening consumers to the
immediate, visible, personal effects
of pollution, with Avon even coining
the term ‘urban dust’ to describe
the ‘environmental aggressors’ that
threaten our skin and general health.
12 13
Trends 2015 CHINA
12
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHY
CONSUMERS
WILL BUY
INTO THIS
The case for going clean has clear
global resonance. Pollution kills 8.4
million people each year, almost
three times the deaths caused by
malaria and fourteen times those
caused by HIV/AIDs, according to
Pure Earth/Blacksmith Institute. In
2012, around 7 million people died
– one in eight of total global deaths –
as a result of air pollution exposure.
In addition, outdoor air pollution was
linked to an estimated 3.7 million
deaths in 2012 from urban and rural
sources worldwide. Meanwhile,
indoor air pollution, mostly caused
by cooking on inefficient coal and
biomass stoves, was linked to 4.3
million deaths in 2012, according
to WHO.
In 2013, China’s Ministry of
Environmental Protection
acknowledged the existence of
“cancer villages”, linking water
pollution to areas where rates of
cancer are unusually high. An April
2014 report by the Ministry found
that 60% of monitored areas in
China had “very poor” or “relatively
poor” underground water quality (an
increase from 2013).
Health is a major concern for
Chinese consumers, who worry
about the effects of pollution.
Some 47% of Chinese adults aged
20-49 express concerns about
catching incurable diseases due
to environmental pollution, and
38% are worried about respiratory
diseases. Food safety is a top
concern among Chinese people,
with 56% of consumers aged 20–49
worried about diseases caused by
foods that are unsafe.
We expect to see brands
addressing anti-pollution,
both from a corporate
social responsibility
standpoint, as well as in
product claims.
1
Chinese consumers are willing to
spend money to protect themselves;
in 2013 four in ten (40%) Chinese
adults aged 20–49 spent more
money on products that protect from
environmental pollution than they
had in the previous year.
In addition to overall health
concerns, Chinese consumers also
recognise the effects of pollution
on their skin. At least a quarter of
Chinese women aged 20–49 who
use bodycare or handcare products
said that anti-irritation, healing or
soothing, and antibacterial claims
are important when purchasing
products. Cosmetics companies
are increasingly using PM 2.5
terminology to promote their antipollution product claims.
1
Clinique City Block
Anti-Pollution
2
Nivea Men
Hydro Gel
2
14 15
Trends 2015 CHINA
14
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHERE NEXT?
The Chinese Government’s
increasing focus on environmental
policy will bring pollution into the
limelight even more in 2015. In
response, we expect to see brands
addressing anti-pollution, both
from a corporate social responsibility
standpoint, as well as in product
claims.
In the beauty sector, we can expect
protective claims against PM 2.5
to grow in product marketing in
skincare and into other beauty
categories like haircare.
In the food and beverage sector,
ingredients promoting detox benefits
will grow. In response to food safety
concerns, manufacturers should
emphasise “pollution-free” ingredient
sources in their marketing. Some
brands can also enhance their
quality by highlighting their original
source – for example, Tmall.com in
China partnered with New Zealand
Trade and Enterprise to launch a
promotion in April 2014, which allows
Chinese local consumers to buy
fresh seafood from New Zealand and
have it delivered in fewer than 72
hours. Products range from mussels
and paua to oysters.
We’ll see more wearable devices
– and clothes – that variously
measure, guard against and combat
dangerous levels of air pollution. In
advertising, we’ll see more initiatives
like billboards that fight pollution as
well as home, office and even shop
frontages made from materials that
absorb carbon, reflect heat or absorb
light to emit it at night.
In the automotive sector, sales of
electric and other low-emission
cars will continue to increase, as
the government continues to target
car pollution in cities like Beijing
and Shanghai. A surveillance
network is being developed to help
reduce smog from car exhaust in
Beijing, and consumers are being
encouraged to purchase electric cars
with promises of tax exemptions and
free licence plates.
16
Trends 2015 CHINA
16 17
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
REAL
WORLD
RETAIL
WHAT’S
HAPPENING
IN 2015?
The internet has disrupted traditional
approaches to shopping, setting up an
expectation not just for convenience,
but for immediacy. We’re seeing
brick-and-mortar retailers meld with
the digital as more locations offer
in-store pick-up for online orders, and,
conversely, virtual-only services open
physical stores, such as Birch Box.
The ability to get hands-on with
what was formerly only virtual could
gain more customers for these
e-commerce retailers. We’re also
seeing services bridge the gap. For
example, Doddle and ASOS’s Local
Letterbox in the UK eliminate the
mystery of online shopping by offering
fitting rooms in supermarkets, gyms,
transit stations and malls where
people can try on online purchases.
Consumers’ increasing expectations
for on-demand convenience are
blurring the lines between digital
and brick-and-mortar retail, driving
immediacy not just in shopping, but
also in any consumer interactions with
businesses.
In China, we have seen a slowdown
in retail sales through department
stores, likely due to the trend of
1
showrooming, where people browse
in-store to see and try products, but
then shop online for the best price.
We’ve come to expect accessibility
and connectivity as smart devices
expand beyond our phones. When it
comes to retail, consumers are going
to be able to shop while in transit with
expanded Wi-Fi plans for trains and
planes.
These in-transit purchases are being
answered with “click-and-collect”
services, such as the pick-up lockers
for Amazon purchases in London
Underground stations. In the US, ondemand delivery service eBay Now
is expanding to 25 cities, and it has
extended a partnership with Argos in
the UK that will allow customers to
pick up goods at 650 stores come the
close of the year. In China, we see
brick-and-mortar retailers expanding
their online presence by opening
virtual stores on sites like Taobao and
Tmall, such as British retailer Marks
& Spencer and local player Yintai
Department Store. With nearly twothirds of Chinese adults aged 20–49
saying they shop online so they can
shop when it is convenient for them,
it is clear that retail models that
provide on-demand convenience are
important in China – and this extends
beyond just online but also specifically
to mobile, as mobile shopping
continues to increase in popularity.
With nearly twothirds of Chinese
adults aged 20–49
saying they shop
online so they
can shop when it
is convenient for
them, it is clear
that retail models
that provide
on-demand
convenience are
important in China.
1
Amazon Locker Screen
2
Birchbox Store,
New York
2
18 19
Trends 2015 CHINA
18
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
SHOP WHILE IN TRANSIT
AIRLINES WITH IN-FLIGHT WI-FI
British Airways
Norwegian
SAS
Lufthansa
Emirates
Etihad
Saudi
Gull Air
Qatar Airways
Icelandair
Air Canada
Aerofloy
Transaero
Air China
All Nippon
Airways
JAL
AirTran
Alaska Airlines
American Airlines
Delta
Frontier Airlines
JetBlue
Southwest Airlines
United
US Airways
Virgin America
HongKong
Airlines
Cebu Pacific
Philippine Airlines
THAI Airways
Aer Lingus
TAP
Portugal
Tam
Singapore
Airlines
Libyan Airlines
Mango Airlines
Turkish Airlines
Oman Air
Garuda
Indonesia
20
Trends 2015 CHINA
20 21
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHY
CONSUMERS
WILL BUY
INTO THIS
Globally, online shopping has
revolutionised commerce, but
consumers are not completely
satisfied.
Over half (53%) of UK consumers,
specifically 60% of women, say it’s
difficult to find clothing that fits well
without trying it on.
In the US, 22% of adults only buy
products online that they are already
familiar with.
Nearly seven in 10 Chinese adults
say it is necessary to visit brick-andmortar stores before buying products
online. But at the same time, 75%
of Chinese adults feel that online
shopping will eventually take over
brick-and-mortar stores.
Almost a fifth (19%) of Chinese
consumers aged 20–49 have
purchased items online with clickand-connect delivery, where products
bought online are then collected from
a store, depot or locker box.
In China, consumers are interested
in a number of enhancements to the
shopping experience. The ambience
and customer service are increasingly
important factors to consumers
when choosing a supermarket or
hypermarket, both of which present
an opportunity for brick-and-mortar
stores to compete with online stores.
Some 14% of shoppers felt “good
ambience” is the most important
factor in deciding where to shop (up
from 9% in 2013). Good customer
service was selected by 8% of
consumers, up from 2%
in 2013.
Mintel’s trend “Experience Is All”
identifies consumers’ interest in the
experience that retail outlets can
provide. Half (50%) of Chinese adults
aged 20–49 say that a wider range of
dining outlets would encourage them
to visit department stores or shopping
malls more often.
Outside of retail, consumers around
the world see opportunities for digital
tools to bring greater convenience
to other areas of their lives. One
in twenty (6%) of Brazilians would
purchase a car entirely via the
internet and have it delivered to their
home if it was possible.
1
McDonald’s Self-Order
Kiosk, Paris
In addition, 40% of Canadians
would be interested in using online
budgeting and advice tools offered by
their bank or credit union.
Demand continues as 85% of
Chinese adults would like to see
more online services that help to
facilitate daily lives, such as paying
bills online or booking taxis via mobile
apps.
22
Trends 2015 CHINA
22 23
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
1
McDonald’s Self-Order
Kiosk, Paris
The internet has disrupted
traditional approaches
to shopping, setting up
an expectation not just
for convenience, but for
immediacy. We’re seeing
brick-and-mortar retailers
meld with the digital as
more locations offer instore pick-up for online
orders, and, conversely,
virtual-only services open
physical stores.
24 25
Trends 2015 CHINA
24
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHERE
NEXT?
At the heart of this trend is that
our on-demand, instant gratification
culture is spreading. This will bring us
more delivery apps and high-quality
vending options across a variety of
product categories.
These conveniences are not only for
city dwellers as more business models
bring the benefits of modern life to
suburban and rural residents. The
expansion of eBay Now showcases
that it’s not just growing urban
environments that require on-demand
delivery solutions. However, the
solution might have to be customised
to the area, with in-store pick-up suited
to suburbia and subscription services
aligning with the needs of rural
residents who might be far away from
the nearest stock-up store.
Furthermore, this “at-yourconvenience” expectation is likely
to influence other customer servicebased industries. Consumers are
already applying this to their media
consumption, with many forgoing
cable TV in favour of subscription
services, such as Netflix or Hulu Plus.
We predict that consumers will want
to see more customised, on-demand
access to financial services, healthcare
and more. It won’t be enough to have
Google and Wikipedia answer your
questions at 3am, people will expect
to have curated services and expertise
just a few taps away.
In China, Jumei Youpin (www.jumei.
com), one of the biggest online
cosmetic products sellers in China,
has opened offline stores in Beijing,
in order to let consumers better know
the brand and let them shop more
confidently. Meanwhile, Shunfeng,
one leading express carrier in China,
entered the online market by setting up
their own online stores and opening its
real store for better service.
1
In the future, we expect to see more of
what we call ‘Omni-channel’ retailing,
which combines the online and offline
channels in China. As for consumers,
price and convenience continue to
be the primary drivers to shop online,
while the ‘unique’, ‘educational’ and
‘engaged’ experiences in real world
retail will be the key factor to attract
consumers to shop in-store.
1
Amazon Locker
2
Shunfeng Express
Offline Store, Hei Ke
75% of Chinese adults feel that
online shopping will eventually take
over brick-and-mortar stores.
26
Trends 2015 CHINA
2
26 27
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
TAPPING
IN AND
SPEAKING
OUT
WHAT’S
HAPPENING
IN 2015?
We have certainly seen more companies
strive for two-way communication in recent
years. Marketing buzzwords like ‘engagement’
and ‘interaction’ have spurred a rise in forums,
user feedback and even consumer-created
advertising. Meanwhile, corporations have sought
to break down their own walls with blogs penned by
senior management.
We’ve also seen a new kind of expectation emerge
among consumers: to participate not only in
conversation at the back end, but to be part of a
company’s ideation process from the start.
PCs and mobile phones are leading
consumer technology product
segments with high product ownership.
Online and mobile spaces are growing
as a key platform for consumer
activities, brand communication and
consumer engagement channel.
Innovation no longer happens from the top down.
Indeed, the once linear, one-directional arrow
between concept and consumption now looks more
like a flowchart, with consumers positioned at many
points along the way.
In China, KFC launched a marketing activity named
“who could represent KFC” at the beginning of
2014. KFC raised two products in the competition,
one of which was KFC’s plain chicken nuggets (their
classic offering) and the other was Golden Crispy
Chicken (a totally new product). Consumers could
vote for their preferred product within the stipulated
time via social media, with the winner staying on
the menu. The result dictated which product could
remain on the menu in the long term. Other similar
activities such as The Voice of China and the Ice
Bucket Challenge have also leveraged social media
to engage consumer participation, which is highly
regarded by Chinese consumers.
Today, consumers can contribute to the betterment
of a product or the betterment of society on a
more personal and involved level. The rise of
crowdsourcing business models such as that of
trailblazing T-shirt company Threadless – where
anyone can submit a design, and everyone has
a say over which designs get made – has further
democratised the marketplace.
28
Trends 2015 CHINA
28 29
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
for an innovation funnel that is not
top-down. Its Innovation Engine
seeks to utilise the power of aligned
thought as a marketplace for
collective genius.
GuruStorms is a middleman service
that helps small businesses locate
experts in the technology and
medicine fields. Gurus offer their
best ideas, engaging in an online
brainstorming session lasting up to
30 days.
One Billion Minds is a platform that
connects problem-solving individuals
with companies and nonprofit
organisations needing solutions,
like solving the garbage disposal
problem in Kolkata, India.
WHY
CONSUMERS
WILL BUY
INTO THIS
Around the world, collective
involvement with brands,
although currently relatively
niche, is taking strides into the
mainstream consciousness within
some industries.
In the UK, some 22% of beer
drinkers are interested in being
involved in helping to fund setting
up a new craft beer. Over a fifth
(21%) of UK teenage girls want to
contribute their ideas towards new
product designs. Meanwhile, in
China, ‘Who could represent KFC’
received over 20 million votes.
The advantages of online
cooperation are most keenly felt on
one particular social networking site.
Pinterest’s quick rise to the top of
the social media stratosphere is a
result of its collaborative nature. By
allowing internet users to curate and
share interesting pictures on a large
virtual pinboard, the number three
social media website (according to
Experian Hitwise) enables pinners
to discover new ideas. This has
allowed users to benefit from a
common, shared pool of visual
information. Its numbers have
been strong. The pinboard receives
1.9 billion monthly page views from
a worldwide audience, with each
visitor spending almost 14.5 minutes
on its site, according to an article by
Fast Company.
However, the flow of ideas is not
just Consumer-to-Consumer (C2C).
Increasingly, it’s Consumer-toBusiness (C2B) and back again.
The term crowdsourcing refers to
the process of outsourcing work to
a large, often anonymous group
of people, and has become a
fundamental tenet of Web 2.0. And
when it comes to innovation, the idea
that many minds are better than one
has taken off.
Rite Solutions combines stock
market dynamics, game theory and
a clear understanding of the need
Even large corporations are turning
to the wisdom of the crowds as
a means of innovating – or even
outsourcing – their business. Lay’s
Argentina has invited Argentinean
consumers to suggest new flavours
for its potato chips. The three most
popular flavours will be sent into
production, and the one that garners
the most sales will join Lay’s line of
products permanently.
In addition, a supermarket in
Denmark has asked customers to
suggest local products they would
like to see on its shelves.
informed on which train routes are
the most or least crowded, thus
giving people the option to switch to
less congested lines.
Sickweather is an initiative that
searches data from social networks
and user input to geographically
illustrate illnesses in a specific area.
In the Netherlands, a service called
Twitcident has been developed to
help internet users find updates
about emergencies, such as fires.
It also sends information to the
authorities and first responders.
With the culture of sharing and
collaborative thinking becoming so
pervasive, “Collective Intelligence”
may be so deeply entrenched in the
way young adults function that it’s
becoming difficult to differentiate
it from cheating. The scandal
surrounding Harvard University
students and a take-home final exam
highlights this grey area between
collaborative learning and cheating.
While “cybercheating” is unlikely to
undermine marketers, there’s still
a valuable lesson to be heeded;
the internet is an anonymous and
unregulated space, which means
opening up the floor to ideas and
feedback means potentially opening
oneself up to an avalanche.
Meanwhile, Sears’ new online
feature “People’s Pick” allows
consumers to vote on which popular
items should go on sale each week.
There’s also civic utility in this
collaborative effort. Japanese
commuter app Komirepo (meaning
“crowded report”) keeps commuters
30
Trends 2015 CHINA
30 31
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHERE
NEXT?
The opportunities for harnessing
“collective intelligence” as a tool
for innovation are enormous. Not
only does crowd-sourced wisdom
have the potential to generate new
products and initiatives, it also
helps position a brand as dynamic,
forward-thinking and participatory. In
an era when consumers no longer
feel they need to defer to authority, it
will be critical for brands to operate
under a more populist premise.
can be used to address problems
created by the crowd itself. Issues
surrounding population growth,
climate change, energy usage and
waste management can all be better
tackled by listening to the people
and providing direction around a
common theme. All that is required is
a connection and a vested interest in
an issue.
Ultimately, the challenge is to
cultivate a conversation that benefits
both parties – giving consumers a
sense of power and participation,
and providing marketers with
a deeper understanding of
opportunities in the marketplace.
Open dialogue with the masses
can do more than directly benefit
brands and new products: the crowd
Even large
corporations are
turning to the
wisdom of the
crowds as a means
of innovating – or
even outsourcing –
their business.
32
Trends 2015 CHINA
32 33
THE WORLD’S
LEADING
MARKET
INTELLIGENCE
AGENCY
Our expert analysis of the highest
quality data delivers clarity and meaning
to clients when it matters most. Clarity
and meaning that drives growth.
WE ARE
MINTEL
WE STAND FOR
We are your eyes and ears
in the markets that matter.
The insights behind your
next big idea. Your fingers
on the pulse of innovation.
Your interpreters of
consumer trends.
We stand for rigour and
for trust. We stand for the
power of data, interrogated
by inquiring minds. We
stand for watching,
listening, thinking. We
stand for actions.
We are all about data,
research, analysis. We
are trusted, we are robust.
We are strategic, smart,
inspirational. Students of
human behaviour, trackers
of cultural change.
We stand for the bigger
picture, for context, for the
alternative point of view.
We stand for questions.
We stand for answers. We
stand for you.
We are award-winning. We
are independent. We are
global. We are opinions
you can trust.
EXCELLENCE
WE KNOW
CONSUMERS
Who they are, what
they see, what they do,
what they buy. We also
know why.
We know innovation –
what’s new, what’s
ground-breaking, what’s
hot and what’s not. All
around the world.
We know markets. We
know their numbers –
how much, how many,
who sells what.
We know what’s coming
next. We use that
knowledge to make your
business better, to help
you make the right choices
and build bigger brands.
We work with more
than 5,000 businesses
worldwide. We can
work for yours.
mintel.com/contact
[email protected]
36
© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
TRENDS 2015
CHINA
CONTENTS
26
12
28
16
5
23
18
04
18
Get Smart
What’s happening in 2015?
Why consumers will buy into this
Where next?
Real World Retail
What’s happening in 2015?
Why consumers will buy into this
Where next?
05
06
10
12
Pollution Protection
What’s happening in 2015?
Why consumers will buy into this
Where next?
7
19
22
26
28
13
15
16
Tapping In and Speaking Out
What’s happening in 2015?
Why consumers will buy into this
Where next?
29
30
32
2
Chinese consumers surveyed refers to online consumers aged 20-49 across tier one to three cities in China.
2 3
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
GET
SMART
1
WHAT’S
HAPPENING
IN 2015?
The Internet of Things – from smart
watches to smart ceiling fans – appeals
to consumers because it saves
them time and money while also
promising them convenience
and control. Wearable
technology has expanded
smart options for
personal data collection.
These connected
devices are broadening
the horizons of our digital
narcissistic culture by increasing
self-knowledge and creating more
opportunities for analysis.
The world of synced devices, home
appliances and wearable technology
will become mainstream, as trusted
retailers and manufacturers move
into the market and convert
consumer appetite into action.
What’s changing is that this is no longer
the domain of start-ups offering home hub
hardware – the major players are now
embracing the trend and raising consumer
confidence in it. Companies such as LG,
Panasonic, Cisco, and Haier have already
teamed up to make sure their future
products can communicate with each other.
Google is also launching Android TVs, while
LG is launching a new webOS operating
system for smart TVs.
New software will also help
consumers seamlessly sync
their mobile devices
with their hardware,
including home appliances. Apple’s
HomeKit enables consumers to use Siri
voice commands to control smart lighting,
doors, thermostats and other home
appliances. Our health will also benefit
as systems like Apple’s HealthKit brings
users’ data from various fitness devices
into a single location. And with the new
Apple Watch, using these programmes or
other apps becomes much easier when
they’re on our wrists.
With greater consumer adoption,
interaction with smart devices will become
much easier, and application will go far
beyond health and home. 2015 will also
see oPhone launch ‘scent messaging’
devices which work with a related app to
allow consumers to remotely fragrance
their homes – or send odors as a form
of communication. The whole idea of
integrating technology into everything will
trickle down to change how consumers
interact with everyday items like their nail
polish or food packaging.
Putting our smart devices to use could
get also easier as network providers
are adding Wi-Fi on planes and trains,
allowing people to be connected
anywhere, anytime – making it ultraconvenient for us to “Get Smart”.
1
Ralph Lauren,
Polo Tech Shirt
2
Ralph Lauren,
Polo Tech Shirt Results
1
Trends 2015 CHINA
2
4
4 5
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHY
CONSUMERS
WILL BUY
INTO THIS
Many Chinese consumers have
already adopted digital tools that
help them track their own bodies and
sync their devices.
1
Some 13% of Chinese adults aged
20–49 say that they have a wearable
digital product in their household.
Ownership is driven by affluence,
with up to 29% of consumers in the
highest personal income brackets
owning one of these devices.
More than one in three Chinese
adults (36%) say their household
has an internet-enabled TV.
Across categories, consumers are
keen to use products and services
that provide them with convenience
or greater health awareness
– two things that are
certainly relevant to
today’s connected
device market.
As many as 81% of Chinese
consumers say that they are willing
to pay more for products and
services that make their lives easier.
Meanwhile, 39% of consumers say
that it is worth spending more on the
products or services that can help to
improve health, such as paid healthtracking apps.
launch in the marketplace and such
technology will continue to evolve.
When it comes to connected
devices, multifunctionality and style
also come into play. Despite more
product offerings and the emergence
of new product categories (such as
wearable technology), consumers
are concentrating on fewer items
that are more multifunctional to
satisfy daily needs. Almost half
(45%) of Chinese consumers say
they own six or fewer consumer
technology products.
With widespread ownership of
smartphones in China, devices that
are compatible with or controlled
by apps are ripe for development;
indeed, smartphone ownership is
near ubiquitous in China as 95% of
Chinese consumers report owning
a smartphone. We have already
seen app and tablet controlled coffee
machines, such as the TopBrewer
Meanwhile, 64% of Chinese
consumers believe it is fashionable
to use wearable digital products like
the Nike+ FuelBand or Jawbone,
according to the same report.
This is certainly a global trend.
Around the world, consumers are
showing more interest in digital tools
that link their devices together.
In the US, 59% of consumers say
they would be interested in using
an app or website to control their
home. And in the UK, 76% of
potential TV buyers are interested
in a TV with the ability to wirelessly
stream content from other devices
(while 28% would pay more for this
feature).
Consumer interest in wearables
and apps that track health also
suggests huge growth potential. In
the US, 22% of all consumers have
purchased a wearable device, e.g.
smart watch or Fitbit.
In the UK, 21% of adults already
use either a wearable device or a
health-related mobile app. Roughly
one in three consumers is interested
in using a smart watch with fitness
functionality (31%), a device that
tracks heart rate, blood pressure and
movement (40%), or a device that
tracks steps and sleep (34%).
1
oPhone Uno
2
Apple Watch
3
Samsung Smart Home
4
Philips Hue
The whole idea
of integrating
technology into
everything will
trickle down
to change how
consumers interact
with everyday
items like their
nail polish or food
packaging.
2
3
4
6
Trends 2015 CHINA
6 7
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
1
Misfit Shine Bloom Necklace
Increased adoption
of wearable devices
might force more
conversations
regarding regulations
about digital device
etiquette.
8
Trends 2015 CHINA
8 9
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
1
TopBrewer Coffee
Machine and App
WHERE
NEXT?
In 2015 and beyond, we’ll see
smart devices advancing into new
areas. Wearable technology will
have to transcend the convenience
of connectivity and offer wearable
devices that are both secure and
fashionable. Indeed, increased
adoption of wearable devices
might force more conversations
regarding regulations about digital
device etiquette.
Aesthetically, wearable devices are
as much status symbols as they
are data collectors. Over in New
York, brands including Nike, Intel,
reality TV series “Project Runway”
and Digital Trends are hosting the
Wearable Technology Fashion
Competition to make wearable
technology more stylish, which
will hopefully increase adoption.
Aesthetics matter just as much, if
not more, in the home. Smart home
devices will scale back their futuristic
appearances to sit comfortably
public with innovations that go
beyond its previous Google Glass
competitor, self-steering bicycle
prototypes, or smart chopsticks that
identify food contaminants.
among analogue objects and blend
in with existing home décor, which
we’ve already seen from Philips
‘Hue’ LED lighting systems.
Overall, we’ll come to expect more
from our smart devices: wearables
that analyse our mental well-being,
smart food and drink containers that
automatically re-order replacements
and companies that analyse our
data in order to customise services
and costs. Chinese search giant
Baidu will continue to surprise the
All this constant connectivity will
increase demand for innovations
that help keep consumers’
devices charged. We expect more
companies to employ wireless
charge features – something
Starbucks is already testing in
stores. Security will also be a
concern as consumers become
more wary of placing personal data
in the cloud and on other servers.
To further the purpose behind
this data gathering, analysis will
become a key area of expansion for
companies – witness the fact that
Nike+ is backing out of the actual
device space to focus on data and
apps – and people will increasingly
share data with professionals for
analysis. We’ve already seen black
boxes that monitor driving habits,
Russian banks that give preferential
interest rates based on running
data, and MyHealthPal – a platform
that shares a patient’s data on
medication, diet and exercise with
neurologists. Data-collecting devices
will also invite companies to become
analysis providers, and the next
stage will be for banks, grocers
and doctors to do more to develop
data relationships.
10
Trends 2015 CHINA
10 11
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
POLLUTION
PROTECTION
WHAT’S
HAPPENING
IN 2015?
In 2015, pollution will become a key
media focus. The abandonment of
the Carteret Islands in Papua New
Guinea due to rising sea levels and
the Milan Expo 15’s investigation into
the future of clean water supplies will
revive discussion around emissions,
while controversy will grow around
Canada’s Northern Gateway oil
pipeline to Asia. In April 2014,
China’s National People’s Congress
approved changes to the country’s
environmental protection law, which
go into effect on January 1, 2015,
that allow for stricter punishments for
those caught polluting.
International events – some
catastrophic, some inspirational – are
putting emissions and toxicity back
on the agenda, but it’s the threat of
pollution to human – rather than
environmental – health that’s driving
technological innovation and a spate of
clean, protective products launches in
the CPG space.
It’s a growing awareness of the
link between pollution and cancer
and premature deaths – following
WHO’s revelation that pollution is the
world’s biggest environmental health
risk – that will provoke a reaction.
Since the Chinese Government
began releasing air pollution level
data in 2012, consumers have
come to learn about PM 2.5 –
‘fine particulate matter’ – an air
contaminant associated with asthma,
heart attacks and other health
problems. In response, there are an
increasing number of air purification
products available for home, office
and cars, many of which claim
to defend against PM 2.5. The
cosmetics industry in particular has
been awakening consumers to the
immediate, visible, personal effects
of pollution, with Avon even coining
the term ‘urban dust’ to describe
the ‘environmental aggressors’ that
threaten our skin and general health.
12 13
Trends 2015 CHINA
12
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHY
CONSUMERS
WILL BUY
INTO THIS
The case for going clean has clear
global resonance. Pollution kills 8.4
million people each year, almost
three times the deaths caused by
malaria and fourteen times those
caused by HIV/AIDs, according to
Pure Earth/Blacksmith Institute. In
2012, around 7 million people died
– one in eight of total global deaths –
as a result of air pollution exposure.
In addition, outdoor air pollution was
linked to an estimated 3.7 million
deaths in 2012 from urban and rural
sources worldwide. Meanwhile,
indoor air pollution, mostly caused
by cooking on inefficient coal and
biomass stoves, was linked to 4.3
million deaths in 2012, according
to WHO.
In 2013, China’s Ministry of
Environmental Protection
acknowledged the existence of
“cancer villages”, linking water
pollution to areas where rates of
cancer are unusually high. An April
2014 report by the Ministry found
that 60% of monitored areas in
China had “very poor” or “relatively
poor” underground water quality (an
increase from 2013).
Health is a major concern for
Chinese consumers, who worry
about the effects of pollution.
Some 47% of Chinese adults aged
20-49 express concerns about
catching incurable diseases due
to environmental pollution, and
38% are worried about respiratory
diseases. Food safety is a top
concern among Chinese people,
with 56% of consumers aged 20–49
worried about diseases caused by
foods that are unsafe.
We expect to see brands
addressing anti-pollution,
both from a corporate
social responsibility
standpoint, as well as in
product claims.
1
Chinese consumers are willing to
spend money to protect themselves;
in 2013 four in ten (40%) Chinese
adults aged 20–49 spent more
money on products that protect from
environmental pollution than they
had in the previous year.
In addition to overall health
concerns, Chinese consumers also
recognise the effects of pollution
on their skin. At least a quarter of
Chinese women aged 20–49 who
use bodycare or handcare products
said that anti-irritation, healing or
soothing, and antibacterial claims
are important when purchasing
products. Cosmetics companies
are increasingly using PM 2.5
terminology to promote their antipollution product claims.
1
Clinique City Block
Anti-Pollution
2
Nivea Men
Hydro Gel
2
14 15
Trends 2015 CHINA
14
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHERE NEXT?
The Chinese Government’s
increasing focus on environmental
policy will bring pollution into the
limelight even more in 2015. In
response, we expect to see brands
addressing anti-pollution, both
from a corporate social responsibility
standpoint, as well as in product
claims.
In the beauty sector, we can expect
protective claims against PM 2.5
to grow in product marketing in
skincare and into other beauty
categories like haircare.
In the food and beverage sector,
ingredients promoting detox benefits
will grow. In response to food safety
concerns, manufacturers should
emphasise “pollution-free” ingredient
sources in their marketing. Some
brands can also enhance their
quality by highlighting their original
source – for example, Tmall.com in
China partnered with New Zealand
Trade and Enterprise to launch a
promotion in April 2014, which allows
Chinese local consumers to buy
fresh seafood from New Zealand and
have it delivered in fewer than 72
hours. Products range from mussels
and paua to oysters.
We’ll see more wearable devices
– and clothes – that variously
measure, guard against and combat
dangerous levels of air pollution. In
advertising, we’ll see more initiatives
like billboards that fight pollution as
well as home, office and even shop
frontages made from materials that
absorb carbon, reflect heat or absorb
light to emit it at night.
In the automotive sector, sales of
electric and other low-emission
cars will continue to increase, as
the government continues to target
car pollution in cities like Beijing
and Shanghai. A surveillance
network is being developed to help
reduce smog from car exhaust in
Beijing, and consumers are being
encouraged to purchase electric cars
with promises of tax exemptions and
free licence plates.
16
Trends 2015 CHINA
16 17
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
REAL
WORLD
RETAIL
WHAT’S
HAPPENING
IN 2015?
The internet has disrupted traditional
approaches to shopping, setting up an
expectation not just for convenience,
but for immediacy. We’re seeing
brick-and-mortar retailers meld with
the digital as more locations offer
in-store pick-up for online orders, and,
conversely, virtual-only services open
physical stores, such as Birch Box.
The ability to get hands-on with
what was formerly only virtual could
gain more customers for these
e-commerce retailers. We’re also
seeing services bridge the gap. For
example, Doddle and ASOS’s Local
Letterbox in the UK eliminate the
mystery of online shopping by offering
fitting rooms in supermarkets, gyms,
transit stations and malls where
people can try on online purchases.
Consumers’ increasing expectations
for on-demand convenience are
blurring the lines between digital
and brick-and-mortar retail, driving
immediacy not just in shopping, but
also in any consumer interactions with
businesses.
In China, we have seen a slowdown
in retail sales through department
stores, likely due to the trend of
1
showrooming, where people browse
in-store to see and try products, but
then shop online for the best price.
We’ve come to expect accessibility
and connectivity as smart devices
expand beyond our phones. When it
comes to retail, consumers are going
to be able to shop while in transit with
expanded Wi-Fi plans for trains and
planes.
These in-transit purchases are being
answered with “click-and-collect”
services, such as the pick-up lockers
for Amazon purchases in London
Underground stations. In the US, ondemand delivery service eBay Now
is expanding to 25 cities, and it has
extended a partnership with Argos in
the UK that will allow customers to
pick up goods at 650 stores come the
close of the year. In China, we see
brick-and-mortar retailers expanding
their online presence by opening
virtual stores on sites like Taobao and
Tmall, such as British retailer Marks
& Spencer and local player Yintai
Department Store. With nearly twothirds of Chinese adults aged 20–49
saying they shop online so they can
shop when it is convenient for them,
it is clear that retail models that
provide on-demand convenience are
important in China – and this extends
beyond just online but also specifically
to mobile, as mobile shopping
continues to increase in popularity.
With nearly twothirds of Chinese
adults aged 20–49
saying they shop
online so they
can shop when it
is convenient for
them, it is clear
that retail models
that provide
on-demand
convenience are
important in China.
1
Amazon Locker Screen
2
Birchbox Store,
New York
2
18 19
Trends 2015 CHINA
18
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
SHOP WHILE IN TRANSIT
AIRLINES WITH IN-FLIGHT WI-FI
British Airways
Norwegian
SAS
Lufthansa
Emirates
Etihad
Saudi
Gull Air
Qatar Airways
Icelandair
Air Canada
Aerofloy
Transaero
Air China
All Nippon
Airways
JAL
AirTran
Alaska Airlines
American Airlines
Delta
Frontier Airlines
JetBlue
Southwest Airlines
United
US Airways
Virgin America
HongKong
Airlines
Cebu Pacific
Philippine Airlines
THAI Airways
Aer Lingus
TAP
Portugal
Tam
Singapore
Airlines
Libyan Airlines
Mango Airlines
Turkish Airlines
Oman Air
Garuda
Indonesia
20
Trends 2015 CHINA
20 21
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHY
CONSUMERS
WILL BUY
INTO THIS
Globally, online shopping has
revolutionised commerce, but
consumers are not completely
satisfied.
Over half (53%) of UK consumers,
specifically 60% of women, say it’s
difficult to find clothing that fits well
without trying it on.
In the US, 22% of adults only buy
products online that they are already
familiar with.
Nearly seven in 10 Chinese adults
say it is necessary to visit brick-andmortar stores before buying products
online. But at the same time, 75%
of Chinese adults feel that online
shopping will eventually take over
brick-and-mortar stores.
Almost a fifth (19%) of Chinese
consumers aged 20–49 have
purchased items online with clickand-connect delivery, where products
bought online are then collected from
a store, depot or locker box.
In China, consumers are interested
in a number of enhancements to the
shopping experience. The ambience
and customer service are increasingly
important factors to consumers
when choosing a supermarket or
hypermarket, both of which present
an opportunity for brick-and-mortar
stores to compete with online stores.
Some 14% of shoppers felt “good
ambience” is the most important
factor in deciding where to shop (up
from 9% in 2013). Good customer
service was selected by 8% of
consumers, up from 2%
in 2013.
Mintel’s trend “Experience Is All”
identifies consumers’ interest in the
experience that retail outlets can
provide. Half (50%) of Chinese adults
aged 20–49 say that a wider range of
dining outlets would encourage them
to visit department stores or shopping
malls more often.
Outside of retail, consumers around
the world see opportunities for digital
tools to bring greater convenience
to other areas of their lives. One
in twenty (6%) of Brazilians would
purchase a car entirely via the
internet and have it delivered to their
home if it was possible.
1
McDonald’s Self-Order
Kiosk, Paris
In addition, 40% of Canadians
would be interested in using online
budgeting and advice tools offered by
their bank or credit union.
Demand continues as 85% of
Chinese adults would like to see
more online services that help to
facilitate daily lives, such as paying
bills online or booking taxis via mobile
apps.
22
Trends 2015 CHINA
22 23
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
1
McDonald’s Self-Order
Kiosk, Paris
The internet has disrupted
traditional approaches
to shopping, setting up
an expectation not just
for convenience, but for
immediacy. We’re seeing
brick-and-mortar retailers
meld with the digital as
more locations offer instore pick-up for online
orders, and, conversely,
virtual-only services open
physical stores.
24 25
Trends 2015 CHINA
24
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHERE
NEXT?
At the heart of this trend is that
our on-demand, instant gratification
culture is spreading. This will bring us
more delivery apps and high-quality
vending options across a variety of
product categories.
These conveniences are not only for
city dwellers as more business models
bring the benefits of modern life to
suburban and rural residents. The
expansion of eBay Now showcases
that it’s not just growing urban
environments that require on-demand
delivery solutions. However, the
solution might have to be customised
to the area, with in-store pick-up suited
to suburbia and subscription services
aligning with the needs of rural
residents who might be far away from
the nearest stock-up store.
Furthermore, this “at-yourconvenience” expectation is likely
to influence other customer servicebased industries. Consumers are
already applying this to their media
consumption, with many forgoing
cable TV in favour of subscription
services, such as Netflix or Hulu Plus.
We predict that consumers will want
to see more customised, on-demand
access to financial services, healthcare
and more. It won’t be enough to have
Google and Wikipedia answer your
questions at 3am, people will expect
to have curated services and expertise
just a few taps away.
In China, Jumei Youpin (www.jumei.
com), one of the biggest online
cosmetic products sellers in China,
has opened offline stores in Beijing,
in order to let consumers better know
the brand and let them shop more
confidently. Meanwhile, Shunfeng,
one leading express carrier in China,
entered the online market by setting up
their own online stores and opening its
real store for better service.
1
In the future, we expect to see more of
what we call ‘Omni-channel’ retailing,
which combines the online and offline
channels in China. As for consumers,
price and convenience continue to
be the primary drivers to shop online,
while the ‘unique’, ‘educational’ and
‘engaged’ experiences in real world
retail will be the key factor to attract
consumers to shop in-store.
1
Amazon Locker
2
Shunfeng Express
Offline Store, Hei Ke
75% of Chinese adults feel that
online shopping will eventually take
over brick-and-mortar stores.
26
Trends 2015 CHINA
2
26 27
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
TAPPING
IN AND
SPEAKING
OUT
WHAT’S
HAPPENING
IN 2015?
We have certainly seen more companies
strive for two-way communication in recent
years. Marketing buzzwords like ‘engagement’
and ‘interaction’ have spurred a rise in forums,
user feedback and even consumer-created
advertising. Meanwhile, corporations have sought
to break down their own walls with blogs penned by
senior management.
We’ve also seen a new kind of expectation emerge
among consumers: to participate not only in
conversation at the back end, but to be part of a
company’s ideation process from the start.
PCs and mobile phones are leading
consumer technology product
segments with high product ownership.
Online and mobile spaces are growing
as a key platform for consumer
activities, brand communication and
consumer engagement channel.
Innovation no longer happens from the top down.
Indeed, the once linear, one-directional arrow
between concept and consumption now looks more
like a flowchart, with consumers positioned at many
points along the way.
In China, KFC launched a marketing activity named
“who could represent KFC” at the beginning of
2014. KFC raised two products in the competition,
one of which was KFC’s plain chicken nuggets (their
classic offering) and the other was Golden Crispy
Chicken (a totally new product). Consumers could
vote for their preferred product within the stipulated
time via social media, with the winner staying on
the menu. The result dictated which product could
remain on the menu in the long term. Other similar
activities such as The Voice of China and the Ice
Bucket Challenge have also leveraged social media
to engage consumer participation, which is highly
regarded by Chinese consumers.
Today, consumers can contribute to the betterment
of a product or the betterment of society on a
more personal and involved level. The rise of
crowdsourcing business models such as that of
trailblazing T-shirt company Threadless – where
anyone can submit a design, and everyone has
a say over which designs get made – has further
democratised the marketplace.
28
Trends 2015 CHINA
28 29
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
for an innovation funnel that is not
top-down. Its Innovation Engine
seeks to utilise the power of aligned
thought as a marketplace for
collective genius.
GuruStorms is a middleman service
that helps small businesses locate
experts in the technology and
medicine fields. Gurus offer their
best ideas, engaging in an online
brainstorming session lasting up to
30 days.
One Billion Minds is a platform that
connects problem-solving individuals
with companies and nonprofit
organisations needing solutions,
like solving the garbage disposal
problem in Kolkata, India.
WHY
CONSUMERS
WILL BUY
INTO THIS
Around the world, collective
involvement with brands,
although currently relatively
niche, is taking strides into the
mainstream consciousness within
some industries.
In the UK, some 22% of beer
drinkers are interested in being
involved in helping to fund setting
up a new craft beer. Over a fifth
(21%) of UK teenage girls want to
contribute their ideas towards new
product designs. Meanwhile, in
China, ‘Who could represent KFC’
received over 20 million votes.
The advantages of online
cooperation are most keenly felt on
one particular social networking site.
Pinterest’s quick rise to the top of
the social media stratosphere is a
result of its collaborative nature. By
allowing internet users to curate and
share interesting pictures on a large
virtual pinboard, the number three
social media website (according to
Experian Hitwise) enables pinners
to discover new ideas. This has
allowed users to benefit from a
common, shared pool of visual
information. Its numbers have
been strong. The pinboard receives
1.9 billion monthly page views from
a worldwide audience, with each
visitor spending almost 14.5 minutes
on its site, according to an article by
Fast Company.
However, the flow of ideas is not
just Consumer-to-Consumer (C2C).
Increasingly, it’s Consumer-toBusiness (C2B) and back again.
The term crowdsourcing refers to
the process of outsourcing work to
a large, often anonymous group
of people, and has become a
fundamental tenet of Web 2.0. And
when it comes to innovation, the idea
that many minds are better than one
has taken off.
Rite Solutions combines stock
market dynamics, game theory and
a clear understanding of the need
Even large corporations are turning
to the wisdom of the crowds as
a means of innovating – or even
outsourcing – their business. Lay’s
Argentina has invited Argentinean
consumers to suggest new flavours
for its potato chips. The three most
popular flavours will be sent into
production, and the one that garners
the most sales will join Lay’s line of
products permanently.
In addition, a supermarket in
Denmark has asked customers to
suggest local products they would
like to see on its shelves.
informed on which train routes are
the most or least crowded, thus
giving people the option to switch to
less congested lines.
Sickweather is an initiative that
searches data from social networks
and user input to geographically
illustrate illnesses in a specific area.
In the Netherlands, a service called
Twitcident has been developed to
help internet users find updates
about emergencies, such as fires.
It also sends information to the
authorities and first responders.
With the culture of sharing and
collaborative thinking becoming so
pervasive, “Collective Intelligence”
may be so deeply entrenched in the
way young adults function that it’s
becoming difficult to differentiate
it from cheating. The scandal
surrounding Harvard University
students and a take-home final exam
highlights this grey area between
collaborative learning and cheating.
While “cybercheating” is unlikely to
undermine marketers, there’s still
a valuable lesson to be heeded;
the internet is an anonymous and
unregulated space, which means
opening up the floor to ideas and
feedback means potentially opening
oneself up to an avalanche.
Meanwhile, Sears’ new online
feature “People’s Pick” allows
consumers to vote on which popular
items should go on sale each week.
There’s also civic utility in this
collaborative effort. Japanese
commuter app Komirepo (meaning
“crowded report”) keeps commuters
30
Trends 2015 CHINA
30 31
Get Smart
Pollution Protection
Real World Retail
Tapping In and Speaking Out
WHERE
NEXT?
The opportunities for harnessing
“collective intelligence” as a tool
for innovation are enormous. Not
only does crowd-sourced wisdom
have the potential to generate new
products and initiatives, it also
helps position a brand as dynamic,
forward-thinking and participatory. In
an era when consumers no longer
feel they need to defer to authority, it
will be critical for brands to operate
under a more populist premise.
can be used to address problems
created by the crowd itself. Issues
surrounding population growth,
climate change, energy usage and
waste management can all be better
tackled by listening to the people
and providing direction around a
common theme. All that is required is
a connection and a vested interest in
an issue.
Ultimately, the challenge is to
cultivate a conversation that benefits
both parties – giving consumers a
sense of power and participation,
and providing marketers with
a deeper understanding of
opportunities in the marketplace.
Open dialogue with the masses
can do more than directly benefit
brands and new products: the crowd
Even large
corporations are
turning to the
wisdom of the
crowds as a means
of innovating – or
even outsourcing –
their business.
32
Trends 2015 CHINA
32 33
THE WORLD’S
LEADING
MARKET
INTELLIGENCE
AGENCY
Our expert analysis of the highest
quality data delivers clarity and meaning
to clients when it matters most. Clarity
and meaning that drives growth.
WE ARE
MINTEL
WE STAND FOR
We are your eyes and ears
in the markets that matter.
The insights behind your
next big idea. Your fingers
on the pulse of innovation.
Your interpreters of
consumer trends.
We stand for rigour and
for trust. We stand for the
power of data, interrogated
by inquiring minds. We
stand for watching,
listening, thinking. We
stand for actions.
We are all about data,
research, analysis. We
are trusted, we are robust.
We are strategic, smart,
inspirational. Students of
human behaviour, trackers
of cultural change.
We stand for the bigger
picture, for context, for the
alternative point of view.
We stand for questions.
We stand for answers. We
stand for you.
We are award-winning. We
are independent. We are
global. We are opinions
you can trust.
EXCELLENCE
WE KNOW
CONSUMERS
Who they are, what
they see, what they do,
what they buy. We also
know why.
We know innovation –
what’s new, what’s
ground-breaking, what’s
hot and what’s not. All
around the world.
We know markets. We
know their numbers –
how much, how many,
who sells what.
We know what’s coming
next. We use that
knowledge to make your
business better, to help
you make the right choices
and build bigger brands.
We work with more
than 5,000 businesses
worldwide. We can
work for yours.
mintel.com/contact
[email protected]
36
© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
