China’s tech market has witnessed remarkable growth over the past few decades, establishing itself as a global powerhouse. With a population of over 1.4 billion people and a rapidly expanding middle class, China offers a massive consumer base for tech companies.
The Chinese tech market is known for its innovation and competitiveness. It is home to some of the world’s largest tech companies, including Alibaba, Tencent, and Baidu. These companies have not only dominated the domestic market but have also made significant strides in expanding their influence globally.
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The tech market in China is dynamic, fast-paced, and full of opportunities. Whether you’re a tech enthusiast, an investor, or a company looking to expand, keeping an eye on the developments in the Chinese tech market is crucial.
The Tech Market in China
The middle-class population is growing over time. Current estimates put the size of China’s middle class at more than 400 million people. People are getting richer and richer and getting out of the poverty threshold. That is why Chinese people’s living conditions are constantly improving.
More and more people have access to the Internet. In 2022, China accounted for about one-fifth of the 5.3 billion internet users worldwide. The figures speak for themselves.
The number of Internet users is equivalent to three times the connected population of the United States of America.
Actually, most of these users have access to the internet via their smartphones. Almost more than 897 million people in China accessed the internet via a mobile device. The most famous brands in China are Huawei, Oppo, Xiaomi, and Vivo.
The Internet market is composed of three industry giants, that are state-owned companies. In these circumstances, the government wants to keep a tight grip on its country’s economy. This is why, in 2018, the Chinese government introduced a price cut. They ordered to lower the prices of mobile data.
As a result, the Chinese government has reduced its prices by 30%. This strategy is aimed at developing the digital economy. Indeed, the aim is to increase demand by pushing consumers to buy. This strategy will increase the country’s domestic consumption. This will contribute to investment in high-tech services, which is becoming a priority for the Chinese government.
Made in China 2025 plan
“Made in China 2025” is a national strategic plan to further develop the manufacturing sector of the People’s Republic of China issued in 2015. As part of the Thirteenth and Fourteenth five-year plans, China aims to move away from being merely the “world’s factory” to a producer of cheap low-tech goods, facilitated by lower labor costs and supply chain advantages.
The initiative encourages the production of high-tech products and services, like aerospace, semiconductors, and biotech, to help achieve independence from foreign suppliers.
The plan focuses on high-tech fields, including information technology; smart manufacturing; maritime engineering; advanced rail; electric vehicles; electrical equipment; new materials; biomedicine; agricultural machinery and equipment; pharmaceuticals; aerospace, semiconductor, IT, and robotics manufacturing, many of which have been dominated by foreign companies.
How to enter China’s tech market?
In order to enter the Chinese market in the best way possible, there are several things to remember.
You know the IT market well, so you know that everyone is connected these days. A whole new strategy needs to be put in place. A new Digital Marketing Strategy.
In order to implement a new marketing strategy, there are several points you need to focus on. For starters, visibility. Your potential customers must be able to find you on the Chinese Internet.
To do this, you need to learn all the Search Engine Optimization (SEO) techniques.
Baidu: an essential tool in a digital marketing strategy
Baidu is the first Chinese search engine. 80% of Chinese internet users use it. That is hundreds of millions of users per day. If a Chinese user is looking for information, for sure he will look at Baidu.
Baidu has a parallel algorithm to Google, structured as a real ecosystem.
A website with a Seo structure is indexed in the highest positions. Usually, a user clicks on the first five presented answers. A good Seo campaign can help to be arranged in a successful way on the internet. For a good Seo strategy it is necessary to identify the sector and the target, the more effective keywords (avoiding the forbidden ones), and to know the competition. For a Real SEO:
- Make sure the site has localized hosting and domain
- Create ad hoc content in Chinese (simplified Chinese for Mainland China, traditional Chinese for Hong Kong and Taiwan)
- Do link building
- Carefully analyze the results
- Adjust the campaign as a result of monitoring.
Your content must be adapted
Your content must be adapted. Every culture is different, and so is their customs. Chinese sites are very different from ours.
Chinese websites have the following characteristics:
- Huge quantity of information
- Coloured and eccentric layout
- Formats and additional functions that capture users’ attention
Your content must make sense to your target audience. Put the needs of your customers first, if they don’t see the interest for them to simply visit your site then they won’t even see the interest to buy one of your products.
Chinese people don’t easily trust new brands. After years of Internet scams, people are still suspicious. That is why all brands must be transparent and make every effort to gain their trust of their followers.
Confidence is difficult to acquire, especially when there’s money at stake. That’s why it’s imperative that you set up a storytelling system.
The principle of storytelling is a recurrent element in Chinese websites. The Chinese people love it, so you can’t miss it.
With a focus on research and development, these companies continue to push boundaries and challenge established players in the tech industry. Storytelling is nothing more than the art of telling a story.
In marketing, storytelling means the conveyance of a “packaged” message within a story to a specific target. Storytelling is a real communication technique that aims to reach certain readers.
Once you get their interest and emotional involvement thanks to your story, you can more easily push them to the desired action. Be it a purchase, a donation, a click, or simply an increase in trust in those who are communicating.
Therefore, you need to set up a feedback that is accessible to your customers. They will be able to talk about the products they bought, make comments. This will make your brand image more transparent and it will give your future customers confidence.
Finally, the last tool to mention is not a classic digital marketing tool, but Kols.
Key Opinion Leader (how Chinese says Influencers)
The principle of KOLs was born not so long ago in the course of the digitalization of society. These people are similar to our influencers. Key Opinion Leaders are people capable of influencing consumer preferences.
In a collectivist society like the Chinese one, the opinion of a third party deemed to be reputable is fundamental. A strategy that aims to increase brand awareness and consumer confidence in China must focus on KOLs.
Chinese consumers during the purchase choice find 3 of the 5 main points of contact with companies in the digital world: website, social networks, and influencers. According to the “China: KOLs” report, the social contents of Chinese influencers produce:
- 4 times the number of views;
- 8 times the engagement compared to those of the official accounts of the brands.
KOLs communicate through social media and live-streaming platforms
- They show products live;
- They entertain the user;
- They convey confidence in the product
In this way, the user can know the product in detail and be sure of the purchase.
Their word counts for many and is heard by many. Their opinion is a source of trust for followers. In this sense, you should get in touch with one of them so that they can try one of your products and promote them.
It is well known that the choice of the KOL is crucial and meticulous. Since there are many fake Kols, we suggest you contact an Agency like Gma to find the right one.
In recent years, Huawei has become one of the top smartphone brands globally, challenging the dominance of established players like Apple and Samsung.
Huawei’s success can be attributed to several factors. Firstly, the company has invested heavily in research and development, focusing on innovation and technological advancements. This has allowed Huawei to produce high-quality smartphones with cutting-edge features, appealing to consumers both in China and abroad.
Secondly, Huawei’s competitive pricing strategy has played a crucial role in its success. By offering smartphones with similar or even better specifications than its competitors at a lower price point, Huawei has been able to attract a large customer base, particularly in China.
Furthermore, Huawei has also benefited from strong government support in China. The Chinese government has actively promoted the development of domestic technology companies, including Huawei, through various policies and initiatives. This support has helped Huawei expand its market share not only in China but also in other countries where it has faced challenges due to security concerns.
The company is actively diversifying its business, expanding into areas such as cloud computing and artificial intelligence, to reduce its reliance on smartphone sales and mitigate the impact of geopolitical tensions.
Do you want to sell your tech products in China? Contact us!
Tech brands in China have made significant strides in recent years. Companies like Huawei, Xiaomi, and Tencent have gained global recognition for their innovative products and services.
These brands have successfully expanded their presence in both domestic and international markets, showcasing their technological prowess and competitive edge.
With a focus on research and development, these companies continue to push boundaries and challenge established players in the tech industry As China continues to invest in its tech sector, we can expect to see even more advancements and breakthroughs from Chinese tech brands in the future.
We are a China-based marketing agency offering cost-effective solutions to foreign brands interested in tapping into the Chinese market. Our team of Chinese and foreign experts has the experience and know-how needed to succeed in this lucrative, yet complicated market.
Gentlemen Marketing Agency offers many digital marketing and e-commerce solutions, such as web design, e-commerce and social media marketing strategies, localization, market research, KOL marketing, and more.
Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts, that will learn about your brand and present you the best solutions for your China market strategy.