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

 

China Book Market

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…

 

 

Post-crisis conclusion.

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.

 

 

In China

  • 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
Perfect opportunities for new comers. It is a good period for me to develop Business in China.
Many World wide investors are hunting to invest in China, foreseeing a great future to all Business here.

To conclude 危机 (Wei Ji) Mean crisis in China.

  • 危 Danger
  • 机 opportunities
In every crisis you have opportunities, it show the attitude of Chinese people when they pass a crisis….

For business men that wants to develop Business in China…

  • Feel free to contact us
  • Get a free consultation on demand via email
  • Receive white books and case studies to highlight you about the Chinese market .
  • Our agency website

 

Discussion is open to any question and comments

Olivier VEROT 

MARKETING TO CHINA AGENCY

We are the top and most visible Web & Marketing Agency for China you will find on the web. Our Services: E-Commerce, Search Engine Optimization, Advertising, Weibo, WeChat, WeChat Store & PR.


Founder of GMA

 

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3 Comments

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  2. Could you blame China, even if the information it initially provided about Covid-19 wasn’t flawless?
    2. Should Chinese authorities issue a disclaimer, everytime they communicated with their foreign peers? ?
    3. What should you expect, given the fact that this new strain of coronavirus only emerged not long ago?
    4. To err is human.
    Obviously, there are now concerted efforts to capitalize on this pandemic crisis to dictate unreasonable terms to China.
    Even Dr Fauci is guilty of trying to scapegoat China, making unsubstantiated claims, in bid to excuse himself for earlier misjudgment, while covering up the Trump administration’s unforgivable fumble.
    No test is better than a crisis situation, when even the most trusted characters may reveal their true colors. This is perhaps, the silver lining of it all, to see the US resort to “hijacking” protective face masks made in China for its European allies.
    Through rendering crucial medical assistance to countries in their most desperate hour of need, the experience gained is unprecedented. The relevant expertise won standing in solidarity with the global community is arguably what China values the most, to strengthen future preparedness.
    ***
    No amount of material wealth can buy an effective response mechanism to a crisis. The fraternity bond that is built with tears and blood will not be easily broken.
    Chinese diplomacy put it in sharp contrast to America’s brute capitalism reminiscent of highway robbery. No amount of China-bashing smearing campaign will make up for lost ground on US credibility.
    We are in uncharted territory, where the vulnerabilities, incompetence, irresponsibility, hypocrisy, and ugliness of Western liberal democracy are laid bare.
    It is the moment of truth for the healthcare system under free market capitalism, that boasts transparency, accountability and legitimacy.
    American bankruptcy is nearly complete, with global remifications far beyond the financial sector. The market meltdown of Wall Street following the paralysis of New York City is only manifestation of the rot seen throughout the US, both top-down and bottom-up. Nothing will compensate that in the foreseeable future.
    Ultimate victory ultimately depends not on advanced tech, complicated strategy and calculations. It is simply doing the simple things right.
    我敢断言,即便中国倾家荡产,把整个国家都赔你,你也无福消受。
    ***
    1. China’s wet markets are enough to scare the shit out of them.
    When did wet markets turn into WMD?
    Why the “paper tiger” reaction?
    2. What’s the credibility of US experts, given the pandemic crisis in the US, not least NYC, the global capital of capitalism?
    3. What does the paralysis of NYC portend for liberal market capitalism?
    4. What are Dr Fauci’s intentions in making unsubstantiated claims that link Covid-19 to Wuhan’s wet market?
    5. How many marks would you award Dr Fauci, given the situation in the US?
    He said NYC did nothing wrong, in crisis-management.
    ***
    Wet markets are commonly seen throughout most parts of the world, including Vietnam, Malaysia, the Philippines, Indonesia, South Korea, and Japan, just to name a few in the region. Europe too, has its own wet markets.
    When did China invent wet markets?
    By the way, Dr Fauci seemed to have missed the golden opportunity to contain the spread of Covid-19 early on in the US, not least New York.
    Moreover, where’s the evidence directly linking patient zero, whom hasn’t even been identified, to wet markets in Wuhan?
    Is that even a scientific assessment by Dr Fauci, given many other possible routes of transmission? ?
    Let’s be honest to ourselves and stop trying to shift the blame, for once. Scapegoating China won’t contribute to solving the challenge by any measure.
    ***
    Why does it matter, where Covid-19 originated?
    Different possibilities exist.
    From a scientific perspective, it may help in crafting better preventive measures.
    However, that does not change the fact that this particular strain of novel coronavirus was discovered, identified and reported, thanks to China.
    China has no more or less responsibility to the world, regardless of the origin of the virus, or Covid-19 (note the distinction between the virus and the disease caused by it).
    Otherwise, does it mean the country of its origin, that failed in detecting its presence or identifying it, is now suddenly responsible for the global pandemic crisis?
    Is that reasonable? Would that make any logical sense?
    ***
    All misinformation or just anything negative about China is “free speech”.
    All positive news about the country, however truthful, is only “propaganda”.
    When China assisted Africa, or made foreign infrastructure investments, Beijing had sinister agenda.
    When America bombed sovereign nations back to the Stone Age, it was all simply fighting for freedom.
    When global discourse is hijacked, this is the Orwellian narrative of our times.
    Wuhan seafood market may not be source of novel virus spreading globally
    https://www.sciencemag.org/…/wuhan-seafood-market-may…
    When the Chinese seemed to be the sole people battling the coronavirus, their plea for greater international understanding fell on death ears.
    They did sound stark warnings through the state media, that the coronavirus wasn’t found to be racist, urging a united global front in the war on a common viral threat. World leaders couldn’t care less.
    The following instances sow seeds of doubt on the credibility of American leadership in the world.
    Commerce Secretary Wilbur Ross says China’s coronavirus ‘will help’ bring jobs back to U.S.
    https://www.washingtonpost.com/…/wilbur-ross…/…
    Who do you blame, when you are down with flu last time, this time, or perhaps next time? ?
    How could an “authoritarian regime” be responsible for what happened within the borders of a “liberal democracy”?
    Is there genuine accountability, under a liberal democratic system built on transparency?
    Look what I shared: US Air Force Flew Half a Million Coronavirus Test Swabs From Italy to Tennessee – Defense One @MIUI| https://www.defenseone.com/…/us-air-force-flew…/163879/
    Now that the chickens have come home to roost, the Trump administration is still desperately branding Covid-19 as a “Chinese disease”, trying to pin the blame on China, despite mounting evidence.
    Zhong Nanshan: No evidence that COVID-19 originated in Wuhan
    https://news.cgtn.com/…/Expert-Fight-against…/index.html.

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