Mailman X Business Weekly | May 10, 2019
Here is China’s top tourism business news that you need to know from this week:
China’s digital economy now accounts for one-third its GDP
China’s digital economy reached RMB 31.3 trillion (USD 4.6 trillion) in 2018, up 15% from the previous year, a recent report released by the Cyberspace Administration of China shows. The world’s second-largest economy, which has long been dubbed as the “world’s factory,” is now moving toward a cleaner development model, with its digital economy now accounting for more than one-third of the country’s GDP. China’s GDP exceeded RMB 90 trillion last year. Read more here.
Production, distribution and sale of goods and services rely on digital technology. The Internet already become an ecological element like electricity and water, that penetrates all aspects of economic and social activities. Last year, already 72% of the 800 million internet users use mobile and digital payments and due to the efforts of the Chinese government the number will continue to grow and the digitalization will continue to reshape the Chinese economy by improving efficiency.
Also this week:
China a key contributor to Los Angeles record tourism revenue in 2018: U.S. official
China was a key contributor to Los Angeles record tourism revenue in 2018, said a U.S. official following the release of a new report on economic impact of the county’s tourism on Tuesday. Visitors pumped an all-time high volume of 23.9 billion U.S. dollars directly into the economy of the Los Angeles County on the U.S. west coast in 2018, generating a record 36.6 billion dollars in total economic impact, according to the report released by the Los Angeles Tourism and Convention Board. Read more here.
China’s $670 billion ‘sheconomy’ is growing like crazy
A “sheconomy” is booming in China, driven by a seismic shift in younger women’s spending habits. Overall spending by Chinese women is estimated to have increased 81% in the past five years to $670 billion, according to Guotai Junan, one of the country’s largest investment banks and securities companies. And despite China’s gender imbalance — there were 31.6 million more males than females at the end of last year, according to official government figures — women account for 55% of online spending, significantly more than their proportion of the population. Read more here
Reliance Jio set to be the first to launch a super app in India
Reliance Jio is set to launch a super app, similar to WeChat, in India as it seeks to merge online-to-offline retail in the country. To be modelled after WeChat in China, the super app will allow Reliance to let its 300 million mobile phone users to order goods and services on its platform and pay bills using its in-app payment services. Read more here.
Tencent’s latest investment is an app that teaches grannies in China to dance
Besides churning out video games for China’s young generations, Tencent has also been attuned to the needs of silver-haired users: its latest bet is an app that teaches middle-age and elderly users, most of whom are female, how to dance. Called Tangdou, or “sugar beans” in Chinese, the app announced on Monday that it has raised a Series C funding round led by Tencent with participation from existing investors GGV Capital and Xiaomi founder Lei Jun’s Shunwei Capital, as well as IDG Capital. Read more here.
Geotagged content is an understated location marketing tactic
Geotagged content is set to be one of the defining trends for location marketing in the coming years—and it’s not even on the radar of many marketers. In the West, this is happening principally via Google Maps. But businesses and attractions who hope to attract affluent Chinese consumers and FITs (free independent travelers) cannot afford to rely on a Google Maps listing, as Chinese are more likely to discover geotagged content using services like Xiaohongshu (Little Red Book or RED) and Douyin. Read more here.
E-commerce sector gets holiday bounce
China’s burgeoning e-commerce sector received a “fresh” boost from the longer-than-usual May Day holidays, with millennials and high-quality brands being the growth boosters. “This year’s May Day Holiday showed that people have stronger high-quality consumption demands, reflected not only in high-quality products but also in services,” said Zhao Ping, head of international commerce of the Academy of China Council for the Promotion of International Trade. Read more here.
Tourism New Zealand joins hands with Tencent to boost Chinese tourism growth
The Memorandum of Understanding (MoU) with Tencent Holdings supports the growth of Chinese Free Independent Travellers (FIT) with fresh travel experiences, and build New Zealand as a desirable, high-value international destination brand for Chinese travelers. The MoU makes the collaboration between Tourism New Zealand and Tencent official, and will strengthen the marketing outreach in mainland China. It also deepens Tourism New Zealand’s understanding of Chinese tourists through Tencent Social Solution, which includes WeChat advertisements and WeChat Mini Programmes. Read more here.
“Big Mamas” bring big bucks
Known as dama (大妈) in Mandarin, these big mothers are middle-aged Chinese women, who are estimated by Chinese media to number more than 100 million. Dama drew global attention in 2013 when they collectively bought about 300 tonnes of gold worth 100 billion yuan in a short period of time when the price of the precious metal plunged. Although critics are of the view that these damas are a public nuisance for the noise they make during their open gatherings, industry players here are seeing business opportunities from their activities. Read more here.
Mailman X is a China digital consulting agency for the travel industry. Reach out here for more information.