Digital Trends - Q2 - China - August 2020

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Summary of impact of COVID-19 on the digital industry, August 2020
Nearly 900 million mobile netizens in China
Figure 2: China netizen users and the share of total netizens, December 2013-March 2020
Short video reshaped the digital entertainment
Figure 3: Top apps used every day, December 2019 vs April 2020
Companies and brands
Xiaomi
Huawei
Tencent
Bytedance
Seamless user experience by using smartphones as a car key
Figure 4: Digital car key by Apple and BMW, June 2020
The consumer
Middle-size screen devices impacted while emerging categories maintained growth during COVID-19
Figure 5: Ownership of digital products, June 2019April2020
Various usage for digital devices but smartphones are the priority
Figure 6: Activities on digital devices, by product, April 2020
Video-based digital entertainment leads usage
Figure 7: Top app usage, April 2020
From entertainment to knowledge accumulation
Figure 8: Content watched on short video platforms, April 2020
Higher quality content is more trustworthy and drives purchase
Figure 9: Attitudes towards short video, April 2020
What we think
ISSUES AND INSIGHTS
COVID-19 intensifies competition in digital entertainment and creates opportunity for emerging products
The facts
The implications
Be aware of more activities on big screens at home
The facts
The implications
Short video: time-passing entertainment vs time-saving knowledge gathering
The facts
The implications
THE MARKET AND COMPANIES – WHAT YOU NEED TO KNOW
COVID-19 accelerated the transformation of digital entertainment
A mobile-centric strategy
Multiple digital devices winning consumers’ attention
Remote medical consultations driving rural digital life
MARKET FACTORS
Mobile phone user base keeps growing
Figure 10: China netizen users and the share of total netizens, December 2013-March 2020
Short video reshaped the digital entertainment
Figure 11: Top app daily usage, December 2019 vs April 2020
Consumers are willing to own more digital products
Figure 12: Amount of digital device types owned by consumers, June 2019 to April 2020
KEY PLAYERS PERFORMANCE
Xiaomi
Apple
Huawei
Tencent
Bytedance
WHO’S INNOVATING?
Fastest mobile battery charging by Vivo
Figure 13: iQOO 5 Pro by vivo, August 2020
Seamless user experience by using smartphones as car keys
Figure 14: Digital car key by Apple and BMW, June 2020
World's first mass-produced transparent TV by Xiaomi
Figure 15: Xiaomi transparent tv, August 2020
Telemedicine is accelerating in COVID-19
Figure 16: Telemedicine system by Huawei in Henan province, April 2020
THE CONSUMER – WHAT YOU NEED TO KNOW
Attention on health and entertainment sees wearables and emerging digital products grow
Video content is the most important for in-house entertainment during COVID-19
Short video apps become more popular
Entertaining short video is most watched - but content is diversifying
Knowledge & learning is a key trend for short video consumption
DIGITAL DEVICE OWNERSHIP
Middle-size screen devices impacted while emerging categories maintained growth during COVID-19
Figure 17: Ownership of personal digital products, June 2019 to April 2020
Higher income consumers are keen on wearable products
Figure 18: Ownership of wearable devices, by monthly personal income, April 2020
Younger and tier one city consumers are more likely to own gaming console products
Figure 19: Ownership of gaming console products, by age and by city tier, December 2019 and April 2020
Popularity of e-readers improves with education level
Figure 20: Ownership of e-readers, by personal income and by education level, December 2019 and April 2020
ACTIVITIES ON DIGITAL DEVICES
Various usage for digital devices but smartphones rank first
Figure 21: Activities on digital devices, by product, April 2020
Online shopping leads mobile phone activity and video content consumption grew rapidly
Figure 22: Activity on mobile phone, 2019 vs 2020
More activities on laptop/desktops during the initial outbreak period
Figure 23: Activity on laptop/desktop computers, 2019 vs 2020
Increase in leisure and entertainment activities on smart TV
Figure 24: Activity on Smart TV/Projectors, 2019 vs 2020
TOP APPS USAGE
Video-based digital entertainment leads the trends in usage
Figure 25: Top app usage, April 2020
WeChat dominate consumers’ daily lives;  short video apps grew faster
Figure 26: Top app daily usage, December 2019 vs April 2020
High tier cities are more promising for short video
Figure 27: Short video apps daily usage, by city citer, April 2020
Short video is booming in COVID-19
Figure 28: video content apps daily usage, by age, April 2020
SHORT VIDEO CONTENT WATCHED
From entertainment to knowledge accumulation 
Figure 29: favouring short video content, April 2020
Higher income consumers like sport and fitness &amp; beauty
Figure 30: favouring sports and fitness content on short video, by personal income, April 2020
e-sports is popular among young males and high income users
Figure 31: favouring e-sports on short video, by gender, age and personal income, April 2020
High tier consumers have more passion for fashion and luxury
Figure 32: favouring fashion and luxury on short video, by gender, household income and city tier, April 2020
ATTITUDES TOWARDS SHORT VIDEO
Higher quality content is more trustworthy and drives purchase
Figure 33: Attitudes towards short video, April 2020
Short video has become a resource pool for knowledge
Figure 34: Attitudes toward knowledge and skill learning on short video, April 2020
Males and low earners are still sceptical about shopping on short video platforms
Figure 35: Attitudes toward purchasing products on short video, April 2020
MEET THE MINTROPOLITANS
MinTs are the heavy users for digital devices
Figure 36: Count of digital devices ownership, April 2020
Turning traffic into money via short video
Figure 37: Favouring content on short video Apps, April 2020
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations