Digital Trends - Q3 - China - November 2020

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Accelerated digital health management due to COVID-19
Figure 1: Summary of impact of COVID-19 on the digital industry, November 2020
Internet penetration rate reaches high
Figure 2: China netizen size and the Internet penetration rate, June 2017 to June 2020
Short videos become new social languages
Promising in low tier market online shopping
COVID-19 strengthened the concept of health monitoring
Companies and brands
Xiaomi
Bytedance
Baidu
Rollable concept smartphone by OPPO
Detachable lens on mobile phones by Vivo
The consumer
Smart entertainment devices become the next stop for digital consumers
Figure 3: Ownership of household digital products, December 2019 to August 2020
Improve the functional differentiation to satisfy various online activities
Figure 4: Activities on digital devices, by product, August 2020
Short video/live streaming reshapes the online shopping industry
Figure 5: Top app usage, by frequency, August 2020
Preventive monitoring health in digital ways
Figure 6: Digital health management activities, August 2020
Medical consultation goes online
Figure 7: Attitudes towards digital health management, August 2020
What we think
ISSUES AND INSIGHTS
Advances in technology and health awareness have promoted the rise of online medical industry
The facts
The implications
Live streaming brings the next wave of online shopping growth
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Short video and live streaming accelerate the reformation of the e-commerce industry
Technology and health awareness push the digital health industry's development
The emerging-market segment comes from mid-size video
MARKET DRIVERS
Video content combined with e-commerce
Figure 8: China netizen size and the Internet penetration rate, June 2017 to June 2020
Promising in low tier market online shopping
Figure 9: Use Taobao every day, by city tier, April 2020 vs August 2020
COVID-19 strengthened the concept of health monitoring
KEY PLAYERS – WHAT YOU NEED TO KNOW
Technological innovation brings opportunities
Big internet players compete for fun screen time
Concentration on health management in digital ways
KEY PLAYERS PERFORMANCE
Apple
Huawei
Xiaomi
Bytedance
Baidu
WHO’S INNOVATING?
Detachable lens on mobile phones by Vivo
Figure 10: Vivo IFEA with detachable lens, October 2020
Telescopic lens on mobile phones by Xiaomi
Figure 11: Xiaomi telescopic lens on mobile phones, November 2020
Rollable concept smartphones by OPPO
Figure 12: OPPO X 2021 rollable concept smartphones, November 2020
Smart voice recorder with offline transcription function by iFlytek
Figure 13: iFLYTEK SR702 smart recorder, September 2020
THE CONSUMER – WHAT YOU NEED TO KNOW
Online activities shift to tablets
Short video popular for screen leisure
Smart household products are growing in popularity; smart speakers whet consumer appetites
Stronger health monitoring awareness 
DIGITAL DEVICE OWNERSHIP
More opportunities in smart devices
Figure 14: Ownership of household digital products, December 2019 to August 2020
Smart speakers become an entrance to smart home life
Figure 15: Ownership of smart speaker, by education level, August 2020
Digital cameras no longer popular among post-1970s
Figure 16: Ownership of digital cameras, by generations, December 2019 to August 2020
Game consoles see opportunities from families with children
Figure 17: Ownership of gaming consoles, August 2020
ACTIVITIES ON DIGITAL DEVICES
Interactive activities dominate mobile screens, while e-reading takes a fragment of time
Figure 18: Activities on digital devices, by product, August 2020
More opportunities for tablet
Figure 19: Family structure of tablet users, August 2020
Playing games on a smart TV/projector has become a new habit after COVID-19
Figure 20: Activities on smart TV/projector, December 2019 to August 2020
TOP APPS USAGE
Low tier market drives the next wave of online shopping growth
Figure 21: Top app usage, August 2020
A short video is expected to have more educational implications
Figure 22: Douyin daily usage, by household income and marital status, December 2019 vs August 2020
Post-1980s use community apps more often
Figure 23: Use community apps every day, by generation, December 2019 to August 2020
DIGITAL HEALTH MANAGEMENT ACTIVITIES
Catch up with health topics through short videos and living streaming
Figure 24: Digital health management activities, August 2020
Preventive monitoring health in digital ways
Figure 25: Digital health management activities, by age, August 2020
Medical consultation goes online
Figure 26: Bought medicines online, by monthly personal income and living situation, August 2020
More health awareness among wearable owners
Figure 27: Health activities comparison, by smart wearable devices owners and non-owners
ATTITUDES TOWARDS DIGITAL HEALTH MANAGEMENT
People's understanding and demand for "health monitoring" is the general trend
Figure 28: Attitudes towards digital health management, August 2020
Make wearable device more user friendly
Figure 29: Attitudes on disagreeing wearable devices are too complicated to use, by city tier, August 2020
Online medical platforms: deliver on time-saving but effectiveness questioned
Figure 30: Attitude to effectiveness of online health doctors is same as offline ones, by monthly household income, August 2020
Customized experience also brings data risks
Figure 31: Attitude on health tech products cannot protect personal information and health data, by educational level, August 2020
MEET THE MINTROPOLITANS
MinTs are the heavy users of smart wearable products
Figure 32: digital device ownership, August 2020
MinTs get stronger health-cautiousness
Figure 33: Attitude towards digital health management, August 2020
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations