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Digital Trends - Q1 - China - March 2021

OVERVIEW
What you need to know
Covered in this report
EXECUTIVE SUMMARY
The market
Rural internet penetration supports online shopping expansion
Figure 1: Internet penetration in urban and rural areas, December 2016 to December 2020
Number of 5G mobile terminals grows rapidly
Figure 2: 5G users as a proportion of mobile phone users, January to February 2021
Companies and brands
Apple
Xiaomi
Huawei
DJI’s FPV drone provides the closest experience to flying while standing on the ground
Digital RMB piloted in China
The consumer
Living in a digital ecosystem through diverse devices
Figure 3: Ownership of household digital products, December 2019 to December 2020
Social media activities, gaming and online shopping are getting more popular
Figure 4: Activities on digital devices, by products, December 2020
Platforms attracting consumers based on interests to increase traffic and user stickiness
Figure 5: Digital platform usage, by frequency, December 2020
Consumers buy into digital products that offer convenience, efficiency and innovation
Figure 6: Attitudes towards technology, December 2020
Innovation drives the development of digital photography
Figure 7: Photography features influencing smartphone/camera purchasing decision, December 2020
Digital photography has promise in the post-outbreak period
Figure 8: Attitudes towards digital photography, December 2020
What we think
ISSUES AND INSIGHTS
Digital brands’ ecosystems see accelerating growth
The facts
The implications
Camera brands consider scenario-based functions as a way to succeed in a non-essential market
The facts
The implications
STATE OF INTERNET DEVELOPMENT
Netizen population and internet penetration
Figure 9: Netizen size and internet penetration, December 2016 to December 2020
Internet penetration in urban and rural areas
Figure 10: Internet penetration in urban and rural areas, December 2016 to December 2020
Figure 11: Share of internet users between urban and rural areas, December 2018 to December 2020
Number of 5G mobile terminals
Figure 12: 5G mobile phone users vs total mobile phone users, January to February 2021
Online shopping users
Figure 13: Online shopping users and share of netizens, December 2016 to December 2020
Live streaming commerce users
Figure 14: Live streaming commerce users and share of netizens, March 2020 to December  2020
Short video users
Figure 15: Short video users and share of netizens, June 2018 to December 2020
KEY PLAYERS’ PERFORMANCE
Apple
Xiaomi
Huawei
Tencent
ByteDance
Zhihu
Sina
Pinduoduo
WHO’S INNOVATING?
Xiaomi MIX Fold
Figure 16: Xiaomi MIX Fold, March 2021
DJI’s FPV drone provides the closest experience to flying while standing on the ground
Figure 17: DJI’s latest drone product FPV, March 2021
Skyworth W82 TV provides the best audio-visual experience
Figure 18: Skyworth OLED transformative W82 TV, March 2021
Digital artwork breaks records with NFT
Figure 19: The digital artwork ‘Everydays: The First 5,000 Days’ auctioned in the form of an NFT, March 2021
Huawei’s IdeaHub Board navigates education and smart office scenarios
Figure 20: Huawei IdeaHub Board, March 2021
Digital RMB piloted in China
DIGITAL DEVICE OWNERSHIP
Building up ecosystems helps brands retain consumers
Figure 21: Ownership of household digital products, December 2019 to December 2020
Figure 22: Apple’s new MacBook with M1 chip, November 2020
Figure 23: Huawei’s new PC MateStation B515, December 2020
Paid content helps consolidate ecosystems
Figure 24: Ownership of household e-readers, December 2019 to December 2020
Figure 25: Ownership of household e-readers and tablets, by ages, December 2019 to December 2020
Wearable devices an alternative entry point for digital ecosystems at home
Figure 26: Ownership of selected household digital products, August 2020 to December 2020
Figure 27: Ownership of selected household digital products, by family structure, December 2020
Figure 28: Xiaomi’s Mi Band 6, March 2021
ACTIVITIES ON DIGITAL DEVICES
Popularity of social media activities continues rising
Figure 29: Social activities on smartphones, August 2020 to December 2020
Figure 30: Shared personal life on social media with smartphones, December 2020
Smart TV becomes the centre of family entertainment
Figure 31: Digital activities on smart TV/projects, August 2020 to December 2020
Figure 32: Huawei Smart Screen V series, March 2020
Growth of gaming market driven by 18-24s 
Figure 33: Played games on smartphones, by age, August 2020 to December 2020
Figure 34: Ownership of digital devices, by game players, December 2020
Figure 35: The collaboration of Hey Tea and Rolling Pictures of Jiangnan Landscape, November 2020
Online shopping needs to continue expanding in lower tier cities 
Figure 36: Online shopping behaviour on smartphones, by city tier, October 2020 to December 2020
DIGITAL PLATFORM USAGE
Deep reliance on social media
Figure 37: Digital platforms usage, by frequency, December 2020
Figure 38: Social media usage, by ages, December 2020
Form a differentiated competitive strategy
Figure 39: Video platform daily users, by generation, December 2020
Figure 40: IQiyi’s Misty Theatre, 2020
Collaborations between paid memberships retain users
Figure 41: Daily users of community platforms, by monthly household income, December 2020
‘Social petworking’ is popular on short video apps
Figure 42: Daily users of short video apps, by family structure, December 2020
Figure 43: Example of a pet owner’s short video on Douyin, March 2021
ATTITUDES TOWARDS DIGITAL TRENDS
Balancing technology with privacy and freedom
Figure 44: Attitudes towards digital trends, December 2020
Figure 45: Online service supplier Meetup
Attention to the rising digital needs of the lower tier market
Figure 46: Attitudes towards on selected digital trends, by city tier, December 2020
Guidance better than restrictions regarding digital penetration in children
Figure 47: Attitudes towards the benefits of early exposure to digital products for children, by family structure, December 2020
Figure 48: Roblox gaming platform
INNOVATION IN DIGITAL PHOTOGRAPHY
Innovation drives development
Figure 49: Photography features influencing smartphone/camera purchasing decision, December 2020
Using exclusive apps may help attract consumers
Figure 50: Consider exclusive apps as photography features in smartphone/camera purchasing decision, by city tier, December 2020
Figure 51: Sony PlayMemories Camera apps, March 2021
Females are more willing to buy into marketing innovations
Figure 52: Purchase influencers of marketing/experience innovations, by gender, December 2020
Figure 53: Nikon’s special edition camera with LV, September 2019
Figure 54: OnePlus series 9’s spokespeople, Ge Hu and Xun Zhou, March 2021
ATTITUDES TOWARDS DIGITAL PHOTOGRAPHY
Digital photography has promise in the post-outbreak period
Figure 55: Attitudes towards the impact of the outbreak on consumers’ willingness to take photos/videos, by age, gender and family structure, December 2020
Camera brands meet claims of professionalism and special moment needs
Figure 56: Selected attitudes towards digital photography, December 2020
Figure 57: Selected attitudes towards digital photography by share of agreement, by digital camera ownership, December 2020
Figure 58: Ownership of digital/video cameras, by attitudes towards digital photography, December 2020
Discover the needs of specific groups
Figure 59: Selected attitudes towards digital photography, December 2020
Figure 60: Selected attitudes towards digital photography by share of agreement, by digital camera ownership, December 2020
Figure 61: Sony’s ZV-1 vlogging camera, May 2020
Photography functions can drive smartphone purchase decisions
Figure 62: Selected attitudes towards digital photography, December 2020
Figure 63: Selected attitudes towards digital photography by share of agreement, by gender and city tier, December 2020
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations

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