The global Chinese market is expected to reach $15 trillion by 2025
Which is no surprise considering that Chinese consumers spent $835 billion on luxury goods in 2020, accounting for almost half of the global market. With these incredible opportunities in mind, how can businesses effectively reach Chinese customers in both China and abroad?
This is where SODA global marketing expertise of more than 5 years comes in. In this post, we will explore the top market opportunities to target Chinese customers and the key aspects of advertising to Chinese customers, from understanding Chinese consumer behavior to navigating the complex China digital landscape. How can businesses leverage China cross-border e-commerce to reach new markets? What are the top China social media platforms and how can businesses effectively utilize them? And how important is it to consider Chinese culture and language in advertising campaigns?
But we don't just want to share our knowledge with you, we want to help you take action. You can click here to check our services, or check the included free Chinese Social Media Marketing plan PDF as a bonus, to help you get started on your journey to successfully advertising to Chinese customers.
With the average ROI for pitching to the Chinese community being 10-20 times the initial investment, there's no better time to unlock the secrets to success. Let's dive in.
Top 20 Chinese Market opportunities outside China according to the ITC:
Country | Chinese Sales Market 2019 (in billions USD) | Chinese Sales Market 2020 (in billions USD) | Expected Chinese Sales Market 2021-2025 (in billions USD) |
Indonesia | 72.0 | 77.5 | 120.0 |
Thailand | 69.0 | 63.0 | 100.0 |
Malaysia | 57.0 | 52.0 | 80.0 |
Philippines | 46.0 | 41.0 | 70.0 |
Singapore | 33.0 | 29.0 | 45.0 |
Vietnam | 28.0 | 25.0 | 45.0 |
Australia | 26.0 | 23.0 | 40.0 |
Cambodia | 22.0 | 20.0 | 35.0 |
Myanmar | 20.0 | 18.0 | 30.0 |
Canada | 19.0 | 17.0 | 30.0 |
USA | 18.0 | 15.0 | 28.0 |
New Zealand | 16.0 | 14.0 | 25.0 |
UK | 14.0 | 12.0 | 22.0 |
South Korea | 12.0 | 10.0 | 18.0 |
Japan | 10.0 | 8.0 | 15.0 |
France | 9.0 | 8.0 | 14.0 |
Germany | 8.0 | 7.0 | 13.0 |
Russia | 7.0 | 6.0 | 11.0 |
Spain | 6.0 | 5.0 | 9.0 |
Italy | 5.0 | 4.0 | 8.0 |
Top 20 cities with the highest Chinese population outside of China:
Rank | City | Estimated Chinese Population |
1 | Bangkok, Thailand | around 700,000 |
2 | Kuala Lumpur, Malaysia | around 300,000 |
3 | Singapore | around 200,000 |
4 | San Francisco, USA | around 180,000 |
5 | Vancouver, Canada | around 140,000 |
6 | Sydney, Australia | around 120,000 |
7 | Melbourne, Australia | around 100,000 |
8 | New York, USA | around 80,000 |
9 | Los Angeles, USA | around 65,000 |
10 | Toronto, Canada | around 60,000 |
11 | London, UK | around 55,000 |
12 | Paris, France | around 50,000 |
13 | Auckland, New Zealand | around 40,000 |
14 | Houston, USA | around 35,000 |
15 | Chicago, USA | around 30,000 |
16 | San Jose, USA | around 25,000 |
17 | Honolulu, USA | around 23,000 |
18 | Auckland, New Zealand | around 20,000 |
19 | Jakarta, Indonesia | around 18,000 |
20 | Ho Chi Minh City, Vietnam | around 15,000 |
Understanding Chinese Consumer Behavior
To effectively advertise to Chinese customers, businesses must first understand Chinese consumer behavior. Chinese consumers value social status and the opinion of others, so word-of-mouth and peer recommendations carry significant weight. In addition, Chinese consumers are highly influenced by brand reputation, quality, and customer service. Businesses should also be aware of the trend towards "guochao," or supporting Chinese brands, and the rise of the "Gen Z" consumer who values authenticity and individuality.
Considering Chinese Culture and Language
To successfully advertise to Chinese customers, businesses must also consider Chinese culture and language. Chinese culture is deeply rooted in tradition and values such as harmony, respect, and collectivism. It's important for businesses to understand and respect these cultural values in their advertising campaigns. Additionally, businesses must also consider translating their advertising content into Mandarin Chinese to effectively reach Chinese customers.
Navigating the Complex China Digital Landscape
The China digital landscape is complex and constantly evolving. To effectively reach Chinese customers, businesses must navigate the top China social media platforms, such as WeChat, Weibo, and Douyin (also known as TikTok in other countries). Each platform has its own unique features and target audience, so businesses must tailor their advertising strategy accordingly. In addition, businesses must also consider China SEO and China mobile marketing to reach customers on the go.
Leveraging China Cross-border E-commerce
China cross-border e-commerce is a growing industry, with Chinese consumers increasingly looking to purchase goods from overseas. To leverage this trend, businesses can utilize platforms such as Tmall Global and JD Worldwide to sell their products to Chinese customers. It's important for businesses to consider localizing their product offerings, pricing strategies, and customer service to appeal to Chinese customers.
Chinese E-commerce sales will be worth $3.3 trillion by 2024:
Did you know that JD.com, one of China's largest online retailers, reported a 43% year-on-year increase in cross-border e-commerce sales in 2020? This presents a huge opportunity for businesses looking to succeed in this market. But What are those platforms? how do they work, and how can they be used to effectively pitch products to the Chinese market globally? You can check our Service Store or check the Free Chinese Social Media Marketing plan template included in this post!
The most popular Chinese social media platforms include:
1. WeChat Marketing:
This is an all-in-one social media platform that includes messaging, social networking, and mobile payments. It is hugely popular among Chinese expatriates, with over 1 billion active monthly users worldwide.
2. TikTok (Douyin) Marketing:
TikTok is a short-form video app that has taken the world by storm. It originated in China as Douyin, and while it is no longer available in China, it has gained huge popularity overseas, especially among younger users.
3. Weibo Marketing:
Weibo is a microblogging platform similar to Twitter, and it has over 500 million registered users. It is a popular platform for Chinese expatriates to keep up with news and social trends back home.
4. Kuaishou Marketing
Kuaishou is another popular short-form video platform with over 300 million daily active users. It's known for its strong community and has become a popular platform for live streaming and e-commerce.
5. Little Red Book (Xiaohongshu) Marketing
Little Red Book is a social e-commerce platform with over 300 million registered users. It's known for its focus on lifestyle and beauty content and has become a popular platform for influencer marketing.
6. Zhihu Marketing
Zhihu is a popular Q&A platform with over 200 million registered users. It's a popular platform for sharing knowledge and expertise and has become a popular platform for thought leadership and content marketing.
7. Bilibili Marketing
Bilibili is a video-sharing platform focused on animation, comics, and games. It has over 200 million registered users and has become a popular platform for influencer marketing and gaming content.