Digital Trends - China - June 2017

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The new era of living in a smart, connected home has begun
Figure 1: Ownership of digital products, 2015-17
“Safety” the most desired smart home feature
Figure 2: Interest in benefits of a smart home, March 2017
Lack of compelling functions pushes consumers away
Figure 3: Trends of using different digital products, March 2017
Increasing product usage does not rely on blindly adding more functions
Figure 4: Top three reasons for using each digital product less often, March 2017
Sense of assurance and low error cost lead to purchase
Figure 5: Factors that encourage consumers to make a purchase, March 2017
Staying online: a norm but not an obsession
Figure 6: Attitudes towards digital products, March 2017
What we think
ISSUES AND INSIGHTS
Desire to live in a home which knows me more than I do
The facts
The implications
Access to “unlimited” services
The facts
The implications
The rising demand of embedding security features into digital products
The facts
The implications
THE CONSUMER – WHAT YOU NEED TO KNOW
Consumers have higher expectation on quality of digital products
Seeking a healthy and active lifestyle offline is a barrier to usage
Demand for a good balance between online and offline
CHANGES IN PRODUCT OWNERSHIP
The digital products market has just reached a major millstone
Figure 7: Ownership of smartphone, laptop, desktop, digital/video camera, tablet and smart TV, 2013-17
Smartphones still have room to grow especially in lower tier cities
Figure 8: Smartphone ownership, by city, March 2017
Figure 9: Smartphone ownership, UK, America and China, 2013-16
Four mainstream digital products are in great danger
Figure 10: Ownership of laptop, desktop, digital/video camera and tablet, by age, March 2017
Single-function products need unique innovations to improve sales
Figure 11: The number of owners of e-reader and gaming console, 2015-17
Noticeable growth in emerging digital products
Figure 12: The number of owners of wearables, smart home appliances and drones, by 2015-17
Owner profiles of different niche digital products
Figure 13: User profile of niche digital products, March 2017
Quality is more important than quantity
Figure 14: The number of digital products consumers own, by household income, March 2017 and 2015-17
Figure 15: Average number of digital products owned, by monthly household income, 2016 and 2017
TRENDS IN PRODUCT USAGE
Wearables and smart home appliances rank high in usage increase
Figure 16: Trends of using different digital products, March 2017
Winning and losing digital categories
Desire for more offline time and activities
Figure 17: Percentage of consumers who have used various digital products more often, 2016 and 2017
REASONS FOR USING LESS OFTEN
Lapsed consumers are keen to seek powerful product functions as well as a healthy lifestyle
Figure 18: Top three reasons for consumers using the following digital products less often, March 2017
Growth opportunity for mainstream digital products: targeting one special area to deliver great, specific function
Growth opportunity for gaming console: position it as a healthy and meaningful way of relaxation
Growth opportunity for e-readers: provide customised, “smart” services
INTEREST IN SMART HOME FEATURES 
Addressing security concerns is the most desired
Figure 19: Interest in benefits of a smart home, March 2017
Figure 20: Interest in selected benefits of smart home, by dad and mum, March 2017
Personal information plus home data are the king
30-39s have the most demand for a connected lifestyle
Figure 21: Monthly household income of consumers, by age, March 2017
40-49s got good potential to become smart home users
Figure 22: Interest in selected benefits of smart home, by age, March 2017
FIRST-TIME PURCHASE TRIGGERS
After-sales service comes first
Figure 23: Selected factors that encourage consumers to make a purchase, March 2017
Recommendation from experts matters more than that from friends
Showing off is not a strong motivation
Figure 24: Selected factors that encourage consumers to make a purchase, by age, March 2017
ATTITUDES TOWARDS DIGITAL PRODUCTS 
Excited about new technology but not addicted to staying online
Figure 25: Attitudes towards digital products, March 2017
Figure 26: Attitudes towards digital products, by consumer classification, March 2017
Not a men’s world any more
Figure 27: Attitudes towards digital products, by gender, March 2017
We are wrong about young consumers loving digital life most
Figure 28: Attitudes towards digital products, by age, March 2017
Use of digital devices by young children will be on the rise
Figure 29: Attitudes towards digital products, by presence of children in household, March 2017
MEET THE MINTROPOLITANS
Passion for technology has been increasing
The next big hit: a connected home
Figure 30: Percentage of consumers who use the following digital products more often, by consumer classification, March 2017
Desire for seamless switching and sharing between devices
Figure 31: The number of respondents who use the following digital products more often, by consumer classification, March 2017
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations