The term High Net Worth Individual (HNWI) is commonly used in the world of finance (especially private banking) and luxury to refer to individuals who have a high net worth. Although there is no clear definition, those people whose “personal total net worth, excluding residential property” exceeds one million dollars are typically included in this definition.
China overtakes Japan as the second-largest wealth market
According to Wealth-X, China has overtaken Japan and has become the second-largest wealth market. In China, there were an estimated 2.3 million high net worth individuals (HNWI) including almost 26,700 UHNWs (ultra-high-net-worth-individuals), those whose assets are valued above US$30 million in 2019.
Shanghai, Beijing, and Shenzhen are the top three cities in China by the wealthy population; but, only Shanghai is included in the top 30 global cities.
According to Hurun Wealth Report of 2018, in January 2018 there were 1.47 million millionaires and 99350 super-rich people in China, up 9.7% and 11.6% respectively on an annual basis.
Of all regions, Guangdong has the highest number of millionaires, followed by Beijing, Shanghai, Zhejiang, and Jiangsu.
Who are these Chinese High-Net-Worth-Individuals?
Uniquely to China, where the economy has experienced exponential growth in the last few decades, over a quarter of UHNW population are under the age of 50, far above the global.
In terms of gender distribution, 86.7% of the UHNW individuals in China are male, the remaining 13.3% are a female average of just 13%.
As we can see the Chinese HNWI are quite young.
The luxury market in China is driven by millennial
Millennials are the driver of the luxury market.
The generations born after the 80s / 90s drive the Chinese market. Those born after the 1980s, which are commonly called Generation Y, are about 10.2 million and represented more than half of Chinese consumers in 2018.
They spend an average of 41,000 RMB (US $ 5789.57) per person annually on luxury goods. They are the prime beneficiaries of China’s unbridled growth.
Then we have the generation born after the 90s, known as Generation Z. Attracted by luxury streetwear, they spend around 25,000 RMB (US $ 3,530.22) a year on luxury goods, almost as much as their parents, known as Generation X.
Does your company want to attract Chinese HNWI? Follow these steps
HNWI must find you on the Chinese Internet
In China Google has been replaced by Baidu.
Nowadays, any buyers can do online research and find a variety of information and resources through search engines, social media, and other channels.
And it’s even more true for China, a country composed of +800 million daily internet users; where trust is ruling any commercial relationship. A country where its consumers don’t trust corporate communication but are ready to spend months searching for online information concerning a brand or a product.
Your company needs to have an official website on Baidu. Let’s see in detail how to make your website rank.
The best strategy for Baidu Seo and Sem
1. Localized hosting is one of the main SEO optimization techniques on Baidu. Let’s see what it is.
Due to the Internet control measures in China and the consequent blocking of some Western websites, it is very useful to have a site based on a local domain. In this way, we ensure that our site is considered “friend”, with a base Beyond the Wall. This allows it not to be penalized at the SERP level (Search Engine Results Page, the list of results on the search engine). In addition, the site will load much faster than one with a non-localized domain
2. Chinese Internet UX chart
However, having a Chinese domain is not enough to do good SEO on Baidu. You also need to have a site that is aligned with the content and graphics standards that Chinese consumers are used to. But what are these standards?
A good example is that of Tmall, the popular B2C e-commerce platform owned by Alibaba. As you can see from the image below, the homepage is very accurate, rich, and detailed: the user can view the basic information of the products already on the home page, views which brands are available or offers. All products are well divided into categories, allowing direct access to the desired types of goods.
3. Keywords research
Keywords are among the pillars of effective SEO optimization on Baidu and on any other search engine. Therefore, they must be chosen carefully to bring as many visits to the website as possible. However, we must not forget that the habits of Chinese digital users are very different also in this respect. For example, if Westerners prefer to use very short keywords, the Chinese perform longer queries. Therefore you will need to understand which word sequences best suit your brand and the services you offer.
4. Baidu Paid Ads
Through Search Engine Marketing techniques it is possible to sponsor sites with targeted campaigns. This way your brand site will get a better online reputation, an increase in visitors, and of course a higher market return. Among the platforms made available by Baidu to brands to carry out SEM campaigns, we find Baidu Tuiguang, Baidu Bridge, Baidu Display, PPC, and Baidu Brand Zone. For example, Baidu Tuigang can be compared to our Google AdWords, but with a wider range of features. And of course, with an algorithm and format entirely based on the operation of the network in China. All these tools are therefore essential to give a significant boost to your site, especially in the initial phase.
The importance of lead generation to get Hnwi’s attention
Leads generation marketing is a strategy to get potential customers to come to you. With the internet, and businesses looking for information directly online, lead generation has become a powerful tool. With a lead generation strategy, not only you do not have to do calls anymore, but you can build your reputation online, let the customers come to you, and do their researches before they talk with you.
Where do companies invest their budget to develop Leads Generation?
- Baidu SEO/ SEM (see above part)
- Website optimization
- Social Media
- Content Marketing
- Email Marketing
- Mobile & Marketing technology
Open a WeChat Official Account to attract Chinese Hnwi
WeChat, with 1.13 billion monthly active users and annual growth of 7.1%, is the leading Chinese social network. Born as a messaging platform, over the years it has introduced several innovative and advanced features that have made it more than just an online chat.
It allows them to create a circle of contacts, publish content on the bulletin board, and stay informed on news in any area, from fashion to news. Moreover, in addition to mere social functions, it also allows you to make reservations (taxis, restaurants, flights, and much more), make online purchases, pay via mobile and transfer money to other contacts.
In addition to the uses for the single, WeChat also offers advantages to companies. In fact, it gives the possibility to create verified official accounts, useful for interacting with followers and to keep them updated on brand news.
It allows companies to interact with their followers, providing a “one-to-one” service by sending direct messages, newsletters, and promotions.
Set up and use the in-app Wechat CRM. It is a great tool to communicate with your followers/customers and can be used as a replacement for a newsletter. Remember, email marketing does not work in China, peoples don’t read emails.
With a well set Wechat CRM, answers automatically any questions your followers may have, to welcome new ones, to offers special discounts etc.. You don’t spend time doing it, and it increases your trust level with followers.
Introduce your company & services with a great H5 Wechat Brochure
Write high-quality posts on WeChat to attract Hnwi
Here are three useful tips, by applying them you can improve your WeChat marketing strategy and conquer the Chinese market:
- Longer titles; Newark recently analyzed over 2,000 articles that exceed 100,000 views and discovered a very interesting aspect: the average length of article titles increases year by year. The results clearly show that the number of characters for each title gradually increases, the longest title analyzed during the study had 61 characters.
- Use interrogative and exclamation points in the right way; with correct use, you will be able to obtain a title that attracts the user’s attention and pushes him to create a more in-depth contact, both by clicking and following your account.
- Suspense, plot twist, exaggeration encourage consumers to open and read your posts
Promote on WeChat Group Marketing
WeChat groups are the fastest and easiest way to distribute content to WeChat users interested in your type of product or service. Then, if your brand is recommended by one of the users, people will have more faith in the brand and will arouse the interest of other users. Therefore, Wechat groups can reach a larger community and have better visibility.
Businesses should consider Wechat groups as a forum where to provide useful information and develop a relationship with your audience. Businesses should then post regularly at peak times.
If your company’s target is High-Net-Worth-Individuals don’t hesitate to contact us. We can help you!
Gentlemen Marketing Agency is a digital marketing agency that is expert in helping foreign companies to establish or strengthen their position in China. We can help your brand increase sales in China, thanks to our services like:
- Baidu SEO&SEM
- Social Media
- KOL & Influencers
- E-commerce and cross-border e-commerce
Contact-us to discuss it further!
Read more about Finance & lead Generation in China:
- One Step Beyond Lead Generation: Smart Real Estate Marketing in China — Update 2020
- How to attract Rich Chinese Tourists to the Maldives? (update 2020)
- Wealth Management in China