“PCs and mobile phones are leading consumer technology product segments with high product ownership. Both segments are mature in terms of penetration, and volume growth for these categories is mainly driven by replacement and upgrades.
PCs and mobile phones are also much more important to young people in their 20s. This uncovers an important implication of shifting lifestyles – young people are moving away from TV screens.
Online and mobile spaces are growing as a key platform for consumer activities, and also a key brand communication and consumer engagement channel.
Online payment will be one of the most prevalent activities thanks the enthusiasm of online shoppers, and online purchasing from overseas is also a phenomenon to pay attention to. The so-called hai tao scene shows how geographic limitation is overcome by digital channels, as well as Chinese consumers’ pursuit of quality and reasonable prices.
Chinese consumers do pay attention to adverts on digital platforms. People show more interest in adverts which are humorous in conveying information, relevant in content, and vivid in visual presentation.”
– Can Huang, Senior Research Analyst

Some questions answered in this report include:

  • What are the usage patterns across different consumer technology products?

  • Who are the winners and losers in this dynamic digital technology landscape?

  • How do consumers behave differently in terms of their online engagement?

  • How will shifting consumer behaviour and emerging digital trends affecting traditional businesses?

  • How effective is online and mobile advertising, and what should brands and companies learn from current practices?

Definition

This report examines trends in consumer technology and online behaviour in China. This is the second report in the Digital Trends China series, building on Mintel’s Digital Trends – China – June 2013. Three main areas covered in this report are technology product ownership and usage, online activity dynamics, and digital advertising.

Personal computers, mobile phones, televisions, home entertainment devices, cameras, and portable media players are the major types of consumer technology products covered by this report.

Personal computer (PC)

PCs are categorised into three formats: desktop, laptop, and tablet.

Desktops refer to computers intended for use at a single location, including tower unit computers, all-in-one PCs, and small form factor PC (eg Mac Mini, Chromebox).

Regular netbooks, ultrabooks (ultra-portable), Chromebooks (a notebook based on Google Chrome OS), convertible laptops (eg with swivel display or sliding keyboard), and hybrid laptops (eg with detachable keyboard) are categorised as laptops.

Tablets refer to the new style of computers popularised by the arrival of Apple’s iPad, and describe computers in a slate or slab format, with touchscreens and no permanently attached physical keyboards.

Mobile phone

The mobile phone market in China covers 2G, 3G and 4G and other mobile phone handsets. Both non-smartphones – which covers basic mobile phones and feature phones – and smartphones are included.

A basic mobile phone is mainly capable of calling and sending text messages.

A feature phone is defined as a device capable of connecting to the 2G networks (but not usually 3G), and which may come with a colour screen, a music player or a camera, but which typically lacks the advanced web browsing ability of a smartphone as well as the ability to download more applications.

A smartphone is defined as any modern mobile phone capable of connecting to the internet, and capable of downloading applications from proprietary application stores.

Television (TV)

The definition covers stand definition TVs and several major technology developments, including High Definition Television (HDTV) and Smart TV.

HDTVs are the high standard of digital TVs, which use digital signals for data transmission.

Smart TVs refer to internet-enabled TV sets.

Home entertainment

This segment includes DVD players and Blu-ray players.

Camera

Point-and-shoot digital camera (P&S), Single Lens Reflex (SLR) camera (both digital and film), and video camera are all included.

Portable media player

These are defined as consumer electronic devices that are capable of storing and playing digital media files such as music, video, and photos. It is primarily for on-the-go and outdoor personal usage. Even though a mobile phone normally carries all of these functions, it is classified separately.

The term ‘smart’, when prefixing another consumer technology product in this report, is used to describe internet connectivity features on non-conventional products, such as ‘smart fridges’, which are fridges that can connect to the internet with expanded functionality.

Methodology

For the purposes of this report, Mintel commissioned a quantitative research survey carried out online via QQSurvey to examine consumers’ usage behaviour and attitudes towards digital trends.

Fieldwork was conducted in March 2014, in four tier one cities and six tier two and tier three cities of 3,000 adults aged 20-49 across the country. The tier one cities are Beijing, Shanghai, Guangzhou, and Chengdu. The tier two and tier three cities are Yantai, Tianjin, Hangzhou, Nantong, Shenzhen, and Kunming.

Abbreviations

CAGR Compound Annual Growth Rate
CNNIC China Internet Network Information Centre
HD High Definition
NBS National Bureau of Statistics
OS Operating System
O2O Online to Offline
PC Personal Computer
P&S Point-and-shoot
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