Table of Contents
Executive Summary
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- The market
- The culture and related industries are worth RMB 8,925 billion, growing at 8.2% in 2018
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- Figure 1: Market size of culture and related industries, China 2015-18
- Figure 2: The revenue of culture and related industries by types in 2018
- Key drivers
- Chinese government committed to supporting cultural and creative industries
- The booming of cultural facilities and the content industry
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- Figure 3: number of cultural facilities
- Figure 4: visitors of cultural facilities
- IP fever and the commercialisation of IP
- Three noteworthy players
- Revival of traditional culture - The Palace Museum故宫博物院
- The balance of content and commerce – Yitiao一条
- Fulfilling the needs of the ‘third space’ – Yanjiyou言几又
- The consumer
- Café, libraries, and bookstores are the centre of cultural and creative leisure lifestyle
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- Figure 5: Changes in visiting cultural venues in the last six months, February 2019
- Cultural and creative industry has great potential in lower tier cities
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- Figure 6: Changes in visiting cultural venues in the last six months, % of visiting more, by city tier, February 2019
- Cultural and art lovers are more about individual characteristics and personal interest instead of income and city
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- Figure 7: Contact with cultural and creative industries – CHAID – Tree output, Feb 2019
- No clear winner and half of respondents do not even have any favourite IP
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- Figure 8: Top 15 favourite IPs, February 2019
- Films and novels have more say in popular IPs
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- Figure 9: Sources of knowing favourite IP for the first time, February 2019
- Strong bonding between favourite IPs and IP merchandising
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- Figure 10: Purchase of products that have been marketed with favourite IP, February 2019
- Married consumers with children have interest in buying IP merchandise
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- Figure 11: Purchase of ip products, by family structure
- IP merchandise has to build the emotional connection to appeal young adults
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- Figure 12: Purchase of ip products, by age groups
- What we think
Issues and Insights
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- Sell dreams, not products
- The facts
- The implications
- Tangible culture and fun
- The facts
- The implications
- Emotional connection with entertainment IP merchandise
- The facts
- The implications
Market Overview
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- The culture and related industries are RMB 8925 billion business, growing at 8.2% in 2018
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- Figure 13: The increase of total revenue of culture and related industries
- Figure 14: The revenue of culture and related industries by types in 2018
- Key drivers
- Chinese government is committed to supporting cultural and creative industries
- The booming of cultural facilities and the content industry
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- Figure 15: number of cultural facilities, 2013 and 2017
- Figure 16: visitors of cultural facilities, 2013 and 2017
- Figure 17: number of films, tv series, books 2013-17
- IP fever and the commercialisation of IP
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- Figure 18: Number of exhibitors at china licensing expo 2014-18
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- Figure 19: the collaboration of heytea and pechoin
Three Noteworthy Players
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- Revival of traditional culture - The Palace Museum故宫博物院
- Fun and creativity
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- Figure 20: fun posts of the Palace Museum
- History and entertainment
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- Figure 21: Masters in The Forbidden City and Shang Xin Le Gu Gong
- New Retail in merchandising
- The balance of content and commerce – Yitiao一条
- Treat e-commerce content like media content
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- Figure 22: Yitiao online store
- New retail lifestyle store
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- Figure 23: Yitiao lifestyle store
- Fulfilling the needs of the ‘third space’ – Yanjiyou言几又
- Bookstore as recreational and social space
- Art and Cultural Centre
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- Figure 24: Yanjiyou flagship store Xian
The Consumer – What You Need to Know
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- Café, libraries, and bookstores are the centre of cultural and creative leisure lifestyle
- Going to the cinema is the most popular cultural activity
- Beautiful interior design is a must for young consumers
- No clear winner in popular IP (intellectual property)
- Films and novels are popular sources of IPs
- Challenge and potential of entertainment IP merchandising
Trends in Engaging in Cultural and Creative Activities
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- Emerging leisure and physical activity culture encourages Chinese consumers to go outside
- Café, libraries, and bookstores are the centre of cultural and creative leisure lifestyles
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- Figure 25: Changes in visiting cultural venues in the last six months, February 2019
- Great potential in lower tier cities
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- Figure 26: Changes in visiting cultural venues in the last six months, % of visiting more, by city tier, February 2019
- Family is the next big thing
- Marketing to single people
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- Figure 27: Changes in visiting cultural venues in the last six months, % of visiting more, by family type, February 2019
Spending in Cultural and Creative Products/Services
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- Going to the cinema is the most popular cultural activity
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- Figure 28: Purchased cultural and creative products or services in the last six months, February 2019
- Paper books/magazines and e-books/magazines are not mutually exclusive
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- Figure 29: Purchased cultural and creative products or services in the last six months, by selected spenders, February 2019
- Young adults still enjoy reading paper books
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- Figure 30: Purchased Cultural and Creative products or services, by age groups, February 2019
- Culture aficionados enjoy hands-on immersive cultural experience
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- Figure 31: Cross Table of Purchased Cultural and Creative products or services, by selected spenders
- Family with children are more into cultural and creative activities and products
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- Figure 32: Purchased Cultural and Creative products or services, by family structure
- Cultural and art lovers are more about individual characteristics and personal interest instead of income and city
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- Figure 33: Contact with cultural and creative industries – CHAID – Tree output, Feb 2019
Encouraging Store Features
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- Products still come first
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- Figure 34: Features that encourage visits to a new store, February 2019
- Younger consumers find beautiful interior design as necessity
- In-store Chinese culture elements appeal to older consumers
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- Figure 35: The ranking of important new stores features, by age groups, February 2019
Favourite IPs
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- No clear winner and half of respondents do not even have any favourite IP
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- Figure 36: Top 15 favourite IPs, February 2019
- Figure 37: Types of favourite IPs, coded and classified from open-ended answers, February 2019
- Young adults are more into IP fever
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- Figure 38: Knowledge of IP, February 2019
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- Figure 39: Types of favourite IPs, coded and classified from open-ended answers, by age groups, February 2019
- Chinese IP is gaining the upper hand
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- Figure 40: Popular ips, by age groups
- Figure 41: popular ips, by family structure
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- Figure 42: popular ips, by city
Sources of Knowing Favourite IPs
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- Films and novels have more say in popular IPs
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- Figure 43: Sources of knowing favourite IP for the first time, February 2019
- Men prefer movies and animation while TV dramas and social media are more popular among women
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- Figure 44: sources of popular ips – gender
- IP market is so fragmented that it is hard to build a long-lasting IP
Purchase of Favourite IP Merchandise
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- Strong bonding between favourite IPs and IP merchandising
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- Figure 45: Purchase of products that have been marketed with favourite IP, February 2019
- Households with child(ren) have interest in buying IP merchandise
- IP merchandise has to build the emotional connection to appeal to young adults
Meet the Mintropolitans
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- Mintropolitans are the target consumers for cultural and creative retailing
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- Figure 46: Changes in visiting cultural venues in the last six months, % of visiting more, by consumer classification, February 2019
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- Figure 47: Purchased Cultural and Creative products or services in the last six months, by consumer classification, February 2019
- Figure 48: Types of Purchased Cultural and Creative products or services, by consumer classification
- Mintropolitans are big fans of the IP trend and they are willing to pay for their favourite IPs
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- Figure 49: Knowledge of IP, by consumer classification
- Figure 50: Types of favourite IPs, by consumer classification
- Figure 51: Purchase of ip products, by consumer classification
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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