According to the latest data provided by the Ministry of Industry and Information Technology of China (MIIT), the Virtual Reality market in the Asian country will reach a turnover of 54.45 billion yuan in 2021 (7.9 billion dollars) ).
Chinese Customers are opening to new technologies
Government measurements will be implemented to support the industry which will be reflected in annual growth of 91.2 percent, a series of supporting regulations will be implemented by MIIT and local administrations that contribute to the development of this industry so that its growth can be accelerated.
Another key point in its expansion will be the implementation of 5G technologies, since it allows peak data transmission speeds 100 times faster than 4G, allowing the number of connected devices to increase globally.
Likewise, by 2020 China wants to launch a supply chain of VR domestic products and hopes to have relevant patents, as well as the control of industry standards, and then by 2025, the goal is to have Chinese companies virtual reality that can be competitive internationally.
Virtual reality is a booming market in China
China went ahead of the tendency of VR and built an entire amusement park dedicated to virtual reality. Originally named The East Valley of Science and Fantasy and now renamed The VR Star Theme Park is located in Guizhou Province, in Southwest China. The park contains over 40 virtual reality attractions. The investment expected to be 1.5 billion dollars but ended up being $470 billion, was made to prove the interest of the Chinese for VR but also the confidence of a bright future for this market. In addition, it can be used for more than just entertainment. It is also useful for education, tourism, the military, aerospace, e-commerce, etc. The government has also announced that it wants to invest in research on VR to improve it but also to expand its scope of activity.
However, although the virtual reality is a booming market in China, there are still few Chinese that are willing to invest in a VR headset. Its purchasing does not seem profitable, considering the price of it and the use they have. The virtual reality headset market is already monopolized by the three Chinese giants: Baidu, Alibaba, and Tencent. These three giants have a bigger turnover than the one of Israel but although of this factor they have trouble finding their place on the international scene, meanwhile, they continue to dominate the Chinese market.
Virtual Reality developers in China
Baidu, the most used search engine in China, wants to create the biggest Chinese language VR service. This will work through the creation of games, concerts, and movies in virtual reality. The VR movies should even have several possible scenarios, and it will be up to the viewer to choose the desired plot for the sequel, technology already being proven successful by Netflix.
Alibaba has already developed a program that could revolutionize the shopping experience. A virtual reality headset on the eyes could be enough in the future to walk in the street and add new stuff to your wardrobe. Alibaba is now developing a VR shopping center and a “VR pay” system that would allow the customer to purchase a product with nothing more than a nod from the head.
Tencent is also working on virtual reality in the video and gaming sectors. Since China has more than 400 million online players, this market is promising. As QQ music holder, they will also offer VR concerts and hologram creation services that singers can include in their show.
In order to take advantage of the growing VR market, you need to know and understand Chinese consumers. Since the market is already busy, you would either create a new concept of headphones or choose to develop the features that will be used with the said headset. This can be a video demo, machines used during the virtual experience to increase the sensations and interactions. However, competition is fierce against the 3 big giants (Baidu, Alibaba, and Tencent). Several brands, like Nokia and Magic Leap, have already signed partnerships with Chinese brands to develop their market in the Middle Kingdom. Some clothing brands as well, in order to develop the shopping experience in virtual reality. Moreover, the government said it wants to encourage sustainable innovation. Political and financial support will be granted for any company looking for new technologies in line with this major issue.
Advertise your virtual reality brand in China
If you are new in the Chinese market them you need to follow some steps in order to gain visibility and trust from your possible customers. In China, Online surfers prefer choosing known brands. In order to belong to this “known category” you need to position yourself in the mind of the consumers. But how?
- You need a Chinese Web. But why? A huge number of the population has a not fluent English level. therefore you need to be able to explain the benefits and differences of your product in their language. We offer the service of hosting your Web Page in Chinese servers as well as translating all the content. In this step, you need to be very careful. Using online translators sometimes gives you the literal translation of the words without making any sense. Sometimes can sound strange and others offensive. This is why we have a team of translators who do the research to supply the most accurate and efficient translation.
- Why do I mention having an efficient translation? In this step, we offer you the service of entering into the biggest search engine in China “Baidu”. This is the Google of China, in here you also have keywords search optimization and we can find what best fit for your brand. In Baidu, you can generate organic first positions with our help, or you can also pay for advertisement. We can help you with the advertisement and how to apply for it.
- Social Media: This is the era of information. If you know how to use social media as your leverage for pushing your brand into the top brands in China you will have instant success. Sounds good right? but not everything that sounds this nice is easy to get. You need to interact with thousands and millions of internet users in this market. This sounds a little overwhelming, but don’t worry. We can administrate your social media, Create positives, and constant traffic. We also manage bad images and turn it into your strengths. How? Not all negatives comments are bad. As long as you have a strong marketing strategy and fix it at the right moment if can help you host your brand. We have been working in the marketing world for more than 7 years and we can encounter hunters of these situations. With your trust and our prepared local team, we can boost your brand into a win-win strategy.
when you gain Visibility.
what’s next?… Selling
- We get you on the right E-commerce platform. In China, there are hundreds of E-commerce apps. We offer you the best selling strategy in these apps. We get you in the apps depending on the requirements each app has. If you are doing it through a Local company or selling it with a distributor, we create personalized strategies for each case and we give the best of us to reach our common goal “sell, sell, sell”
If you follow these steps, we are positive about bringing your brand to the top in the consumer’s mind.
Do you need more help to get started in this market? Please visit our website. We are an agency specialized in digital marketing in China.