In recent years, smart watches and smart bracelets have been stuck in development because of lack of innovation and homogeneity. However, the growth rate of smart watches is still accelerating in China and the demand is strong. According to the Euromonitor International, China’s overall watch market sales in 2016 reached 65,8 billion yuan (RMB). It is expected that by 2020, the Chinese watch market will reach 79,4 billion yuan.

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Google increases the smartwatch market layout China

On April 18th, Google China held a press conference at Beijing headquarters to formally introduce the specific details of Wear OS by Google (renamed from Android wear) to the Chinese market and consumers. Yutong Li, Head of intelligent hardware of the Jingdong Digital Computer Division, was invited to attend the meeting and shared Jingdong’s market data and consumer insights in the field of smart wearable devices.

Since the launch of Moto 360 in 2015, the first smart watch with an Android Wear system, Jingdong has become Google’s most important strategic partner in China. So far, there have been more than ten models of smart watch equipped with Android Wear System sold in Jingdong, including Huawei, Misfit and other technology brands, but also MK, Fossil and other fashion brands. In the future, we also expect Jingdong to continue its close cooperation with Google and provide consumers with a better experience.

Yutong Li, said at the meeting: “In 2018’s Q1, smartwatches with wear OS technology by Google get very surprising sales growth in JD. It has reached a year-by-year increase of more than 200% in both sales volume and sales”. We can see that with the continuous upgrading of consumption, smart devices are increasingly sought after by consumers.

Users pay more attention to diversification and personalization

Miles said also that the company places great emphasis on function diversity which has always been a strategic priority. When observing people, it is found that the wearing is an important way of people to express their true self. Chinese people are in fact seeking for distinction from others nowadays. They prefer more to spend on expensive product if it is worth, than poor quality product.

Consumers’ tendency

Users have also their preference when choosing smartwatch brand and design style.  Yutong Li, from the digital computer division of JD.com said that in China they will be more inclined to select technology brands in brand selection. In terms of design style, they will pay more attention to personalized design and are more willing to choose products launched jointly with fashion brand.

Fossil group, Inc. and Puma signed a global license partnership agreement sprinting into watches and smartwatches through 2028. “PUMA is one of the world’s leading sports brands. We are excited to partner with them and bring our world class design and distribution capabilities to the PUMA watch collection,” said Kosta Kartsotis, chief executive officer, Fossil Group. It’s reported that Puma’s first watch and wearable device series will be officially released in 2019.

Unique style design is a main factor attracting consumers to buy a watch. According to Hongkong TDC survey, when a new watch brand entered in the mainland market, 66% of consumers said that they would be attracted by “distinctive design” and 63% of consumers would focused on “novel technology/functional design”. In comparison, the part of consumers deciding in whether to buy because of “suitable prices” is lower. Moreover, factors such as “Brand Origin” (43%) and “Historical Heritage” (33%) also increase consumers’ desire to purchase.

Multi function watches are expected for the future

Also with the rising of the awareness about sport and healthcare, chinese people start to spend on sport stuffs a lot. Smartwatch is one of their favourite tool. By the way, at present many manufacturers choose to cut in from the health side. Miles said, “Google has been Health Guide”, helping users record fitness conditions and set fitness goals through Google Fit or other third-party applications. The future will also increase investment in this area.

Also, consumers will pay more attention functions such as make calls, mobile payments, and music playback. According to Jingdong Big Data, users of smart wearable devices are mainly white-collar workers and campus users which white-collar users will prefer smart watch products. After smart watches get combined with voice interactive features, this will allow to release human vision and hands.

Which tools to adopt the Chinese customer’s vision ?

Wechat

Wechat is an application basically used for communication. These years, it became a platforms which has multiples functions and services. A lot of brands and companies use it nowadays for promotion and being in touch with their customers. Take a look on our articles on “How WeChat is transforming business in China” or contact us for more information.

Case study: WeWood

With the increase of revenue, Chinese people are more willing to spend money for their comfort, so they adopt the bio and organic concept. That’s why WeWOOD Watches got a real success in China. WeWood is 100% Natural wood watches made from reclaimed and repurposed woods of various varieties from around the world. The WeWOOD line of wooden watches are a combination of style, luxury, and environmental responsibility. They contacted GMA to help them to extend their business in China in digital ways such as Social Media, Little Red Book E-reputation, E-commerce…etc.

The little red book

Little Red book (Xiaohongshu in chinese) is an application in which users share and take information on brands and products. The content is very diversified. It can be to share lifestyle, foods, travel place, new trends and products etc. and Chinese consumers use it to get advice, recommendations and feedback.

Chinese E-commerce Platforms

Chinese E-commerce Platforms are the place to be if you want increase your sales in China. China is the world largest connected country. E-commerce sales in China reach nearly $1.53 trillion this year. Last year, e-commerce sales estimated by $44.41 billion, driven largely by sales from leader Alibaba’s Taobao and Tmall.  Alibaba through its properties Taobao and Tmall, it is the biggest e-commerce platform, used for everything from clothing to the most random objects. JingDong (JD) is a competitor to Alibaba with a focus on electronics (they sell everything, but Chinese users would go to JD first when buying electronic appliances)

 

 

At this stage of development, China has a lot of booming industries. This is a promising and huge market with its own culture and way to function. Ready to start a business in China? Do not hesitate to contact us. Gentlemen Marketing Agency is specialized in the digital marketing in the Chinese market. We provide e-commerce solutions, promotion and advertising, SEO strategies, and all marketing agency worthy of the name should be able to do.

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