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By Angie, August 19, 2010 3:55 pm

How much do you know about China’s online social gaming industry?  I’m sure the name “Happy Farm” will have more than a few heads nodding.

In a nutshell, the heart of this type of gaming lies in interacting and playing with people you know, and who belong to your online social network.  They are usually hosted not on a third party website, but on social networking sites (SNS).

Globally, online social gaming has been around for several years and in China, this concept holds an enormous amount of untapped potential.  Today, social gaming does not conjure up the image of a teenage boy playing WoW at a local internet café til the wee morning hours. Instead, these games appeal to everyone – from China’s youth to moms (as seen in our Digital Moms research) to corporate white collar workers.

They have emerged as a convenient activity for netizens of all walks of life, providing a sense of release, relaxation and fun. Its immense popularity in China can be attributed to the mixing of China’s relationship-oriented society with their love of the online world.  Gamers take breaks to tend to their crops on Chinese developer 5 Minutes’ Happy Farm, or steal their friend’s car parking space on Kaixin001′s Qiang Chewei.

RenRen’s new approach

Looking at this trend more closely, we can see the weight social networking sites are placing upon social gaming and how it has become an integral part of their business model.  This new RenRen TVC is most telling – take a look:

(Click here to be taken directly to the Youku site if the above is inaccessible)

RenRen appears to have shifted their marketing focus from last year’s theme of ‘real-life stories of people using RenRen to connect’, to placing their messaging squarely in social gaming.  As you can see from the TVC, the animated vegetables, animals and furniture may look familiar to you – they are references to China’s leading social games.

The future of social gaming

Expect great growth.  Social networking companies are slowly beginning to open their sites to 3^rd party programmers (instead of designing games in-house, as was the norm with many major social networking sites such as Kaixin001 and Qzone).  This model is already available on RenRen, which has seen a proliferation of external developers bringing in highly popular and innovative games and in turn, higher traffic to the site.  It is also allowing Western developers, like Zynga, a powerful market in their international expansion plans. Zynga will be launching their first internationally localized game, Zynga Texas Poker, in Chinese to the Greater China market this year.

In China, Happy Farm has an estimated 23 million active users per day. Social games boast a superior distribution model across a variety of platforms – mobile social gaming being a hot one.

Chinese social gamers are becoming increasingly discerning about game quality, and as the variety, social components and innovation improve, it is a certainly that this industry will continue experiencing unprecedented popularity.

What this means to you as marketers

Social networking is the top activity netizens engage in, and it’s not only the starting point of their daily online journey, but a constant throughout the day. One source stated that many sites are now reporting that SNS are sending them more traffic than traditional search engines. The next few years will see a convergence between social gaming and mobile gaming – especially in China, where almost 40% of the 755 million mobile subscribers use mobile internet.

The potential for brands to reach consumers through these platforms are enormous, given the right partnerships and integrations. Virtual goods, often linked to social gaming, are a prime opportunity as well. It is estimated that the sale of online virtual goods in China amounts to USD$5 billion.  Click here for the reasons why this works in China.

Disney’s recent acquisition of social gaming company Playdom (for USD$763 million) shows how seriously companies are taking social gaming and with the international love-fest for them – especially in the most populous nation in the world – it’s a safe bet that this trend is here to stay.

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By Angie, August 12, 2010 6:05 pm

You read about Chinese Valentine’s Day in this past post.

Now I introduce you to China’s Men’s Day.  Truth be told, it passed last week (August 3), so we can make note of this for next year!

According to CNNGo, an online survey conducted by Shanghai Hotline saw 80.2% of 6,021 respondents saying they feel that a Men’s Day is in order to help alleviate the stress they experience.  This survey may have been prompted by International Woman’s Day (March 8), where all women in China get a mandatory half day off.  Click here to read what some women have to say about it.

Many men said that Aug 3 is appropriate because it is the third day of the eighth month, the opposite of International Women’s Day, which is the eighth day of the third month.  Shanghai city officials have not yet declared August 3^rd to be Men’s Day, but that hasn’t stopped some retailers from trying to cash in on the idea.  For example, for the past two years shopping mall No. 1 Babaiban in Pudong had special men-only discounts mall-wide, attracting many shoppers.

Personally, I’m thinking why not celebrate men also?  In Mao’s China, women ‘hold up half the sky’ – so I guess men hold up the other half and ought to have some perks too.  Now beyond the question of whether or not Men’s Day should exist, it’s worthwhile to note how retailers are taking advantage of this unofficial celebration, and the implications behind their actions.  Retailers are giving discounts to men – and receiving positive responses.  So I’d like to focus instead on what currently appears to be capturing the attention of our Chinese men – and this is shopping and perhaps even pampering.

How do they feel about grooming?

This brings to mind a study Starcom conducted last year about men and their grooming habits.  The hypothesis was that Chinese men don’t care about the products they use and will just use whatever their wife or mother purchases.  Through our quant study, observations and from other market knowledge, we have found that this is not the case.  Chinese men – especially those in major tier 1 cities – do care.  They care very much.

Euromonitor reports that two booming categories for men in China are skin care and hair care.  Chinese males are becoming more comfortable and confident purchasing their own products and both manufacturers and retailers have realised the importance of men’s grooming products, allocating considerable sums of money to advertising and distribution.

What we uncovered – Some quick Starcom top-liners

Good grooming = Workplace confidence and success: Chinese career-oriented men view personal grooming as a means to an end at work, placing more emphasis on good appearances for work over impressing females.  With heavy competition in the workplace, it is crucial to understand the importance of work success to the Chinese man and the lengths they will gain a competitive edge.  Thus, good grooming gives confidence and acts as an enabler to future success.

Displacing the myth of low-involvement: Chinese men are involved in personal grooming and they will read the back of bottles before purchasing.  They will also ask their family / friends, and even in-store associates for recommendations and information.

Grooming linked to health and well-being: Men associate good hair and skin care today with long-term health and preservation.  They are gaining more knowledge and awareness about personal health, leading them to take preventative measures against the effects of aging.

Impressing at work is essential before impressing the opposite sex: In order of priority, finding a wife comes after work achievements.  Not to say it’s any less important, but having a flat and a car (the two material goals all men we spoke to voiced) is also essential to finding a wife, thus adding even more pressure to their workplace success.

What this means to you as marketers

Be aware of your ever-changing Chinese male.  He’s probably not the stoic, impassive beauty consumer we once thought he was.  He is becoming more cognizant of everything from personal grooming to clothing and accessories.  This makes intuitive sense too – in a country where competition for jobs is fierce and where 30 million men will not be able to find wives, having a leg up over competition – even if it’s simply a psychological boost that comes from dandruff-free hair – may be what one needs to succeed.

Most Chinese males are still in the initial phases of learning.  So help him with career tips, beauty tips and also tips with women.  It was said that the highly popular website www.askmen.com started 10 years ago when a couple of male Canadian university students were chatting at a restaurant and noticed an impeccably dressed businessman in a dark suit walk in, sit down … and flash several inches of stark white sock. The boys ‘tsk-tsk’ed at the sock faux-pas and suddenly realized the truth that many men just do not understand the basic “dos and don’ts” and that they need education and guidance – in beauty and grooming and in life.  So began the website.

Chinese men are at this stage.  They are ready and willing to learn.  How can we help?

Related Articles
The growth in demand for male beauty products in Japan – BusinessWeek

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By Angie, July 2, 2010 8:55 am

Today, I will be deviating a bit from China news and traveling a bit further to Japan.

Lately, I’ve read a few articles about the impact of Twitter on the Japanese and have found it fascinating and decided that I wanted to comment on it.  While I predominantly study Greater China, I have done work with Starcom’s Japan teams and have also learned about the Japanese market through our Digital Moms study, where Japan was one of the regions we deep-dived into.

The Associated Press recently discussed Twitter’s success in Japan, succeeding where other international social networking sites (like Facebook and MySpace) have failed.  Twitter has taken off to such a great degree that the proportion of Japanese internet users who tweet is 16.3%, which surpasses the Americans (sitting at 9.8%).   Also compare this to the mere 3% of Japanese internet users who are on Facebook (vs. 62% for Americans).

Japan “Mumbles”
The translation of “tweet” in Japan is “mumble“.  I find this translation in terminology so cute and so appropriate for the often soft-spoken Japanese.   Twitter estimates that the Japanese now mumble nearly eight million messages a day, which is 12% of the global total.

Twitter Japan homepage

Breaking Societal Rules
Japanese society is known for its insular culture.  We saw this in our Digital Moms study and the results had really surprised me at the time.  Only 24% of the Japanese moms studied said that “the internet helps me connect with my family and friends” (compared to 71% of studied China moms).  However, a quote I read really articulates just how much of an effect Twitter is having upon Japanese society: “Twitter is turning out to be like a cocktail party – Japanese see how much fun it is to network and casually connect with other people.”

Our Starcom study saw that in the eyes of the Japanese, the internet is more of a functional tool, allowing them to obtain practical information.  The Japanese mom is more of a reader than a contributor and will use the internet mainly to search for information (particularly weather and food/cooking) or compare prices. The social element of the internet was remarkably low – especially when compared to the relationship-building Chinese and the social network-loving Singaporeans.  Looking at the numbers associated with “visiting social networking sites”, only 34% of Japanese moms said they did this within the past 30 days, while the percent jumped to 75% for Chinese moms and a whopping 85% for Singaporean moms.

Japanese girl listening to Mom

The Relief in Anonymity
In such a profoundly polite culture as the Japanese, you can imagine what a relief it may be to speak one’s true feelings without feeling the need for censorship (lest they offend, appear too aggressive, too opinionated, etc.)  That’s the core difference between Twitter and other social networking sites, such as Japan’s Mixi.  Blogger Akky Akimoto commented that non-anonymous social networking sites like Mixi become “tiring” because the everyday Japanese mentality of obligation requires social networkers to acknowledge communication, leading to a never-ending round of virtual thank yous and bows.

What Now?
It is certain that those low social networking numbers will increase.  As Twitter picks up even more in Japan and habits slowly (or quickly!) change, other sites will be embraced and the Japanese online culture may never be the same again. Already businesses are getting on board the Twitter train in Japan.  Popular clothing chain, Uniqlo, is one of the first to use this new form of conversation to their advantage by setting up a virtual queue where people tweet (mumble!) with each other and get freebies.

If Starcom conducts our digital mom study a year or two from now, I wonder how different the responses will be in Japan.  My guess is that the numbers will be dramatically different and I will be nodding my head with a smile on my face thinking “We saw it coming!”  :)

Japanese mumbling. Image from The Associated Press.

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By Angie, May 20, 2010 11:17 pm

We all know that Twitter is blocked in China.   As of July 2009, so were the existing Chinese versions of Twitter, including Fanfou, Jiwai and Digu – all due to government censorship.   It is clear that a Twitter clone won’t survive in China.  Recently, however, a new player has emerged.

Sina’s Weibo has risen and has seemingly taken China bloggers, micro-bloggers and anyone wishing to get in on the conversation, by storm.   Surprisingly enough, the government appears to be okay with it too.   So what is Weibo doing that the previous generation of micro-blogging sites failed to do?   They are playing by all the rules laid down and there is a strict word filtering operation in place.   As the largest news portal in China, Sina has had over a decade experience in content monitoring.   Bloggers also understand that they need to be careful of their words, as their posts can be deleted by Sina at any time, without notice.

The name Weibo (微博), translates to “micro-blog”, but the way it’s pronounced is the same as “scarf” (围脖).   This translation is what netizens are using as their meaning of “Weibo”.   Scarf, in the sense that they’re being wrapped up with information.

The censorship certainly has not appeared to have dampened the spirits of Chinese netizens.   They have embraced Weibo and according to Sina, the number of registered users of Weibo had reached 5 million as of early March.   Such numbers are a result of not only Sina’s large existing user base, but also their ability to up the cool quotient of Weibo through inviting celebrity bloggers, such as Jackie Chan and other popular stars.   This focus on verified accounts is one aspect that differentiates Weibo from Twitter, with Weibo placing a greater emphasis on them, and granting verified users a little “v” next to their name.   In a country that places such importance on celebrity culture, knowing that the feelings and opinions of Weiboer “Zhang Ziyi” is indeed THE Zhang Ziyi makes a world of a difference.

I signed up and took a look at what Weiboers are chatting about at the moment, and one of the top mentioned is, of course, the Shanghai Expo.  Even the name of the Expo volunteers is a hot topic.
In case you are wondering (and I know you are!) they are called “Little Cabagges” due to the colour of their uniform.

A new Valentine’s Day?

But one the hottest topics in China today (May 20th) is Internet Valentine’s Day.   Whaaat’s that?   You took the question right out of my mouth. Upon further micro-blogging, reading and digging, I found out that May 20 translates to 520 … and in Chinese, saying “520″ sounds like saying “I love you”.

The traditional February 14th Valentine’s Day has always seemed like it was for older people, those who are married, and this is something that Chinese youth cannot relate to.   Thus, young Chinese netizens have taken it upon themselves to declare May 20th as Internet Valentine’s Day, where they can express and profess their love for someone via any online method (blog, micro-blog, online bulletin board, email, etc. etc.).   This is especially good for those shy Chinese youth who can’t do it in person and prefer the digital shield of the internet…

Starcom’s Youth Surveillance research shows very clearly the importance of anonymity for youth online. Furthermore, 79% of a youth segment we identified as being uber involved social networkers even said that they felt more like themselves online than they did offline.

But the fact that they’re redefining the so-called traditional festivals (granted Valentine’s Day is more of a Western idea) to fit their own needs and turning them around and making them more relevant to themselves AND sharing it on the platform they are most comfortable with – the internet – is fascinating!   Not only that, but the idea has spread so quickly and leagues of young netizens are embracing it wholeheartedly… all I can say is wow.

I’ll definitely continue to keep tabs on the ins and outs and cool trending items on Weibo and report those back to you!

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By Angie, April 20, 2010 3:19 pm

Following up on my article about China’s Ant Tribes (click here for a refresher), groups of Chinese youth have become so fed up by the rat race and broken dreams found in Beijing and Shanghai that they are leaving and settling for smaller towns, where they being are offered a cushy start.

While the top tier cities have lured youth with projections of lucrative paychecks, career opportunities and a fast paced lifestyle, many youth are quickly discovering that the reality is nothing like what they had imagined.

Earlier this year, I conducted an in-home interview with a 25-year-old in Shanghai who moved there from his tier 3 city hometown.  Living with his girlfriend in a single room containing only a double bed (that filled 90% of the room) and a computer, their possessions were meager.  Studying in Shanghai was his dream – his first step to becoming a successful graphic designer.  In order to pay rent (and to keep his computer up-to-date) he works at a restaurant every night, including weekends.  “It’s really hard and not what I thought it would be,” he told me, “but I am staying because I have hope that it will get better.”

Youth living & working in Shanghai. Copyright - Starcom 2010

A May 2010 United Nations report stated that from 1980 to 2010, China’s urban population had more than doubled, expanding from 19% of China’s total population to 47%… and growing.

But not everyone is willing to stay and many have given up their big city dreams, seeking their fortunes elsewhere.  One of those places is Ningbo, a port city in eastern Zhejiang province (and home to the handsome beggar!), which will give housing subsidies ranging from 500,000 to 1.5 million yuan to qualified professionals.  Other growing cities like Tianjin, Dalian and Qingdao also offer flexible residency permit policies, which enable access to health care, home purchasing and education.

One reason why young and educated graduates would even consider these cities is because many companies have also discovered their appeal.  For many companies, big cities equal higher operating costs and competition, whereas smaller cities with a developed infrastructure may be just the answer.  For example, Microsoft and Boeing have both set up outsourcing delivery centres in Wuxi, Jiangsu province (a tier 2 city).

Young Chinese professionals

What this means for marketers

With the growth (and expected continued growth) of lower city tier economies – due to the modernization of city infrastructure, their appeal to major companies, and their poaching of professionals and new grads – it is absolutely crucial for marketers to place considerable resources into researching and studying lower city tiers.  We must start looking beyond tier two and three cities and venture into tier four (e.g Quan Zhou 泉州) and even tier five cities (e.g. Shan Tou 汕头).

Also, an influx of sophisticated consumers into lower city tiers may require marketers to re-evaluate their consumer messaging and campaigns, and to consider the dynamics of dual messaging within a single market.

Lower city tiers are an exciting frontier for marketers for its large and untapped consumer base, rising incomes, and consumer aspirations.  Understanding this group – their thoughts and motivations – is the challenge.

Come visit Starcom China Blog again on Thursday, where I will continue our lower city tier discussion and dig deeper into what we have learned about these consumers!

Tier 3 little one and grandfather