28/03/17 14:50 GMT
by Hot Pot Digital

Know China Now: Tencent Reaches $100bn, Industrial Robots and More

With more than 846 million daily active users, China boasts more smartphone users than the USA, Brazil and Indonesia combined, with an unprecedented rate of adoption and change in the digital sphere.

Each week Hot Pot Digital’s Know China Now blog keeps brand marketers informed on digital, social, mobile and ecommerce trends in the most exciting consumer market in the world.

Tencent is the First Chinese Brand To Be Valued At Over $100bn

What is it?

  • Tencent Holdings has become the first ever Chinese brand to be valued at more than US$100 billion, due in part to the success of WeChat
  • The study shows that the brand value rose 20% in 2016 to US$106.2 billion, much higher than the average 6% growth for Chinese brands
  • Alibaba sits in second spot and China Mobile in third

Why do I need to know?

  • Tencent surpassed Facebook’s $102.6 billion valuation from back in June 2016
  • The US already has six brands with valuations in excess of $100 billion, including Google, Apple and Facebook
  • 2017 is likely to see Alibaba also surpass the $100b mark, keeping on par with their Silicon Valley counterparts

China Has More Industrial Robots Than Japan

What is it?

  • China has been the world’s number one buyer of industrial robots since 2013
  • Last year, it surpassed Japan’s total of operating robots
  • Alibaba is following Amazon’s example in using robots in logistics warehouses, and has partnered with a local startup named Geek+

 

Why do I need to know?

  • It is suspected that as Chinese employers battle against demands for rising wages, the automation trend will increase
  • Coupled with Baidu’s investments into the Artificial Intelligence sector, Alibaba’s involvement confirms that Chinese interest in Artificial Intelligence is substantial
  • Approximately 70% of China’s robots are produced overseas, but Alibaba’s move to source from a Chinese firm suggests a drive to challenge the US, Japan and Germany as a leading maker of industrial robots

Adidas To Draw Back From TV Advertising, Focusing On Mobile Instead

What is it?

  • Adidas CEO Kasper Rorsted, in an interview with CNBC, announced that the athleisure retail giant will abandon the use of television advertising in China and switch to online advertising
  • According to the interview, the brand aims to triple its e-commerce revenue by 2020, to $4.25 billion

 

Why do I need to know?

  • Adidas has announced that its target audience is the younger generation and therefore online advertising is the priority
  • Adidas commented that digital interaction is their “most critical marketing tool”
  • Adidas has seen healthy 12.5% growth in global revenue year-on-year, up to €4.687 billion

Alibaba Invests in Entertainment

What is it?

  • Alibaba Group has announced a partnership with its film unit Alibaba Pictures
  • China’s e-commerce giant established a new cultural and entertainment group last year composed of Alibaba Pictures, Youku-Tudou, web browser UCWeb, Alibaba music and other literature, sports and gaming business units
  • Alibaba Pictures will work with Youku-Tudou and Alibaba Literature to produce online films

 

Why do I need to know?

  • This move is an effort to combine the group’s cultural and entertainment resources
  • The new media group has been a very profitable addition to the Alibaba group, seeing its revenue triple to RMB 3.61 billion from the previous year – the fastest growth among any of the company’s segments
  • As well as these initiatives, Alibaba has fully acquired online ticketing platform Damai.cn further confirming their commitment to the entertainment sector
  • Alibaba moves ever closer to becoming a digital behemoth, outstripping Amazon in size and breadth