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Digital Trends - Q4 - China - December 2020

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Stable spending in tech and communication sectors
High-end digital products still desired
Figure 1: Desire for high-end digital products with high configuration, 4 November 2020
World championship and marketing events boosted esports awareness
Learning-related activities prioritised in leisure spending
Impact of COVID-19 on tech products
Figure 2: Summary of impact of COVID-19 on tech products, 2020
Companies and brands
Smart speaker dynamics
VR and AR devices not differentiated enough
Wearable devices become more specialised in health and wellness
Innovation highlights in digital life
The consumer
Increasing penetration of smart speakers
Figure 3: Digital device ownership, December 2019-October 2020
Smart TV, the new gaming playground
Figure 4: Activities on four digital devices – Q4 update, October 2020
More daily usage for apps targeting special subculture groups
Figure 5: Top apps usage, used every day, December 2019-October 2020
Paying for knowledge content remains niche
Figure 6: Usage of paid knowledge content, October 2020
Career skills and hobbies are key motivators
Figure 7: Reasons to pay for knowledge content, October 2020
What we think
ISSUES AND INSIGHTS
Strengthen audio quality and connectivity to promote smart TV
The facts
The implications
Figure 8: Ways to control spending on large home appliance, 3 June 2020
Revamp targeting and positioning strategies for VR devices
The facts
The implications
Figure 9: Digital device owned and also used by Gen-Zers, December 2019
Figure 10: Most used online gaming device, 2019 and 2020
THE MARKET – WHAT YOU NEED TO KNOW
Stable spending in tech and communication products
Premium products are still desired
Various marketing activities boosted awareness of esports
Leisure spending skews towards learning
MARKET FACTORS
Stable consumption for tech and communication
Figure 11: Monthly spending changes on technology and communication products, March-November 2020
Interested in high-end products
Figure 12: Desire for high-end digital products with high configuration, 4 November 2020
Figure 13: Desire for high-end digital products with high configuration (a), by age and gender, 4 November 2020
Learning is preferred during leisure time
Figure 14: Prioritised leisure spending, 4 November 2020
Enhanced awareness of esports
Figure 15: Marketing campaign featuring an esports theme, 2019-20
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Changing competitive landscape in smart speakers
VR/AR products are yet to expand competitive scope
Watching drama on gaming devices
Wearable devices developing new functions for healthy lifestyles
Tech brand crossed over to education
COMPANIES AND BRANDS
New players in smart speaker market
Figure 16: Summary of characteristics of leading smart speaker players in China market, 2020
VR and AR devices have narrow competitive focus
Figure 17: Price range of VR/AR products sold on ecommerce platforms*, November 2020
Figure 18: Entry-level VR devices in the market, November 2020
WHO’S INNOVATING? 
Digital home highlights:  crossover
Pro-version smart speaker with a 10-inch screen by Baidu
Figure 19: Smart speaker X10 by Baidu, 2020
Huawei introduced its high-end smart speaker
Figure 20: Huawei Sound smart speaker, 2020
Home projector crossover with speaker to touch more usage occasions
Figure 21: XGIMI’s new product portable projector Play equipped with speaker, 2020
Digital wearable highlights: catering to health and wellness demands
Earbuds help people fall asleep
Figure 22: Bose Sleepbuds II, 2020
Figure 23: ZenBuds by Amazfit, 2020
Earbuds specialised in monitoring heart beats during exercise
Figure 24: PowerBuds by Amazfit, 2020
Garmin’s new health-tracking functions target women in pregnancy
Figure 25: Pregnancy health-tracking function by Garmin, 2020
Digital entertainment highlights: drama in gaming consoles
Figure 26: Tencent video landed in Switch gaming console, November 2020
Tablets highlights: iFlytek launched e-learning tablet
Figure 27: iFlytek launched e-learning devices, 2020
THE CONSUMER – WHAT YOU NEED TO KNOW
Smart speakers meet more users
Smart TV extended usage occasion
Improved active daily usage for apps targeting special consumer groups
Paid knowledge consumption is still niche
DIGITAL DEVICE OWNERSHIP
Smart speakers improved penetration
Figure 28: Digital device ownership, December 2019-October 2020
Gaming console still emerging
Figure 29: Ownership of gaming console (a), by age, December 2019-October 2020
Figure 30: Devices used to play games in the last 3 months among 18-24s, 2019 and 2020
Families with children are the key consumers for VR devices
Figure 31: VR device (a) ownership, 2018-20
Figure 32: Ownership of VR device*, by age, 2018-20
Figure 33: Ownership of VR device*, by family structure, 2018-20
ACTIVITIES ON DIGITAL DEVICES
Smart TVs most used for watching films and drama
Figure 34: Activities on four digital devices – Q4 update, October 2020
TV is a new playground for gaming
Figure 35: Played games on smart TV/projector, December 2019-October 2020
Figure 36: Played games on smart TV/projector, by age and gender, December 2019-October 2020
Figure 37: Play games on smart TV/projectors – Q4 update, by digital device ownership, October 2020
E-reading on computers and tablets increases
Figure 38: E-reading on laptop/desktop and tablet, December 2019-October 2020
TOP APPS USAGE
Short video app evolved into a highly frequently used app
Figure 39: Top apps usage, October 2020
Daily usage increased at apps targeting special consumer groups
Figure 40: Top apps usage, used every day, December 2019-October 2020
USAGE OF PAID KNOWLEDGE CONTENT
Paying for knowledge on apps is still niche
Figure 41: Usage of paid knowledge content, October 2020
Key users of paid knowledge content
Figure 42: Have paid for knowledge content – by demographics, October 2020
Potential users are among those who enjoy e-reading
Figure 43: Intention to try paid knowledge content (a), by e-reading habit, October 2020
REASONS TO PAY FOR KNOWLEDGE CONTENT
Career-related skills and hobbies are key motivators
Figure 44: Reasons to pay for knowledge content, October 2020
Figure 45: Reasons to pay for knowledge content, by past paid knowledge consumption, October 2020
Young people motivated to pay for learning how to manage personal finance
Figure 46: Reasons to pay for knowledge content – cultivate the ability of managing personal finance, by age, October 2020
Figure 47: Young people’s motivation to pay for knowledge content – cultivate the ability of managing personal finance, by demographics, October 2020
MEET THE MINTROPOLITANS
MinTs have driven ownership of smart speakers
Figure 48: Digital device ownership among MinTs, December 2019-October 2020
Figure 49: Ownership of smart speakers, by consumer classification, December 2019-October 2020
MinTs used smart TV for gaming
Figure 50: Played video games on smart TV/projector, December 2019-October 2020
Low usage of paid knowledge content among MinTs
Figure 51: Usage of paid knowledge content, by consumer classification, October 2020
Figure 52: Reasons to pay for knowledge-related content on apps, by consumer classification, October 2020
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Played games on smart TV/projector by age and gender
Figure 53: Played games on smart TV/projector, by age and gender, December 2019-October 2020
Abbreviations

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