China has been hit by the most critical crisis in the modern economy. This crisis has attacked China’s economy really hard, for 2months.
It was long, all the economy was stopped totally, people were stuck at home, companies were in quarantine for 8weeks.
Since January 24th our company has been closed, and our staff has to work at home. We have to adapt our organization and our work to pure online management.
This crisis change a lot of consumption in China
- Many businesses have been in trouble
- Many companies have closed
- and few industries are actually booming.
This crisis create new trends that i will try to analyze for you.
Trend 1: Health is booming
There is a big concern for Chinese people about their health, and this crisis create a fear in the mind of millions of Consumers. Health is now the number one concern…
- Medical Products are on the rise
- All healthcare products as well have know a huge boom in China
- Health supplement, vitamins … all these products have been hunting during the crisis, with the beleive that you need to make your body stronger
- Sport & fitness : many Chinese are aware now that doing sport help you to become mor resistant to health attack
- Medical services like insurance are of course now a necessity for all Chinese
Health Business is the big winner of this crisis
Chinese health products and equipment get a positive impact on the world, and China will emerge as a health giant in the next decade especially in underdeveloping countries.
Trend 2 : online education
Kids were not able to go to school , college and university, and China has developped a lot of tools to let student still learning via online education.
App, video conference, online homework…
Online education has know a terrible boom, lot of new solution have been tested and created…
Many parents have been forced to test the online education and tests were positive.
Even foreign teachers give English class on WeChat on video conference with youngers kids.
Online training for companies has also get a positive development. During this crisis, many parents have studied at home and subscribed of online classes.
Many People feeling bored at home, have trained themself with online lessons.
China has make a big boom on the online education, that is basically the future of education.
Trend 3 : Full e-Commerce
During the crisis, all stores were closed, so 100% of the population have ordered online products, and spend hours online to shop.
It was the ONLY way and most of e-Commerce companies in China has get an enormous Boom.
Alibaba, JD … all these e-Commerce companies have managed an increase of consumption online…
Even oldest users have learned how to order online food, buy products, and learn how to check information on Brands.
China has move for 8weeks, to a 100% e-Commerce Business… that is basically the future of the distribution.
Time has been really hard for offline distribution, offline store, shopping mall….
Delivery industry were in the hottest time of their history, with millions of Kuadi that deliver the food, products to the population. Smart technology has been developed to maximize all transport, and efficienty.
Trend 4 entertainment and video game
Because most people stay at home, the entairnement Business has been 100% digitalized.
All show, museum, and activities have been moved online. All video channels have count million of new sucriber, and time spending on video has been increase up to 50%
Douyin for example will have i guess a really good score if they are allowed to publish their figures.
Iqiyi, which is the Chinese Netflix has seen a huge increase of subscription.
Video game which was still not that developped to all generation, have help all these people to spend their time. Most of video game companies got a increase of their score.
Trend 5: Investment and Fintech
Fintech has been really creative during this crisis and adapt very fast to Chinese new needs, where most of traditional bank were absolutly out of the game.
WeChat Pay and alipay of course… most way to get paid.
P2P business that was dying end of 2019, suddently dead got popular again, as solution to save Business, and finance project. .
Microcredit that you can get on JD finance has get an enormous boom.
Finance startups are the big winner, and traditional Banks were the biggest losers.
Oversea investment have been searched by million of Chinese investors…
Of course buying property, the number one Chinese investment
(New) Property + Passport like in Turkey were on the raise, for example.
Most of Chinese can not travel so they make decision based on online information.
Video, online checking, 3D solution have been provide to help these investors to buy oversea properties.
trend 6 : Online Businesses win, traditional ones die
All internet companies win a lot during the crisis… All time spending on social media have been trippled …
All dating APP has win over bar and disco
Online delivery has won the restaurant business
Online work has forced million of companies to adapt, and i will be not surprised if the office work will decrease…
China is moving to a more digitalized and modern economy, where the old traditional business has simply die and where innovation and flexibility of the web Businesses get the full reward.
New Century for China for me will start after this crisis, and the new model of full digitalized… where offline will just support the main online Business.
What is the situation now in China?
- China crisis is finishing, moral of the population is high , they win this war
- business starts again, factories are producing and the world will need his factory more than ever.
- Chinese People did not consume for 2months , their bank account is full, and they want to spend their money.
- Health is a priority now, healthcare product on the rise
- e-Commerce is main business , offline just support
- Online is just everything… working, dating, meeting, entertainment, shopping …
- online education is booming, and it is just the beginning
- Global investors are seeking refuges into Chinese Startups
China will be soon THE ONLY country, good for Business now.
Many countries will be hurt by the sanitary crisis then economic crisis… and if it takes 3months to China to pass, I am afraid that it will be longer to old fashion economy like European country…
China become ever stronger after this crisis, and smarter.
They show their capacity to the world to manage the crisis, and make things done fast.
- lot of brands stop the business,
- Many companies stop their Marketing campaign and losing market share
- Lot of brands give up… Lot of companies have closed
To conclude 危机 (Wei Ji) Mean crisis in China.
- 危 Danger
- 机 opportunities
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Founder of GMA