Tap into the high-net-worth opportunity in China
Focusing resources on the right people and right places is a defining success factor in marketing. For brands seeking to expand their high-net-worth (HNW) markets, reaching and impressing China’s high-net-worth individuals (HNWI) should be an ace card. Just a quick look at some numbers and you’ll see the Chinese HNWI market is lucrative and vast.
In China, the high-net-worth population—individuals with a net worth of US$1 million to less than US$30 million—has been growing rapidly. In 2018, China took the second place in the world in the number of millionaires (in USD, unless otherwise stated). A year later, in 2019, the number of adults in China with a net worth of US$100,000 to US$1 million stood at almost 109 million, and the country had a millionaire population of 4.47 million, equivalent to 3-digit growth in less than 5 years. China witnessed a 3-digit growth in its millionaire population in less than 5 years in the past decade. As for ultra-high-net-worth Chinese (i.e. individuals with assets of US$30 million or more), the number is projected to increase 35% in the next few years.
Within the country, Shanghai, Beijing and Shenzhen have the highest concentrations of wealthy Chinese. Also unparalleled globally is the country’s urbanization pace. It boasts more than 100 cities of over one million inhabitants and is home to 15 of the world’s 47 megacities.
That said, foreign brands and businesses not familiar with the rules of the game there will need success-proven intelligence and strategy to make the most of it. Having up-to-date information of the whereabouts, motivations, purchasing behavior, priorities and preferences of Chinese HNWI when it comes to high-end consumption is the prerequisite of marketing success. Marketing dollars should be spent with precision to get ahead of others.
China-specific digital strategy is essential
Digital marketing is incompatible with HNWI or luxury? Think again.
Citing a report by PwC, HNWI are enthusiastically adopting technology. They use multiple digital devices and spend 5 or more hours a day online. Moreover, a Bain research reveals the Chinese HNW population is diversified, including both entrepreneurs who opened factories decades ago, as well as younger professionals in the technology sector and other emerging industries. A one-of-a-kind scene in China, over a quarter of the ultra-rich is under the age of 50, versus a global average of 13%. Such a considerably lower average age implies higher tech savviness.
While the wealthy are using technology like everyone else, they have different needs, expectations and concerns than the mass market audience. For example, they may have more reservations when providing personal data online. They may also have a keener appetite for expertise and personalization.
Meanwhile, major platforms such as Google, Twitter, Facebook and YouTube are not accessible in China. Foreign advertisers need to employ tailored, highly segmented digital strategies that serve the unique Chinese market.
HNWI’ Internet use behavior and relevant strategies
Given that HNWI are well resourced, they are highly digitally informed and are selective about what contents and channels they spend time on. 85% of them use more than 3 digital devices. 89% use news websites and 60% use social media to get news. They also have high criteria when choosing what to read, stressing relevancy, credibility and value, and are actively sharing and interacting with their high society social circles.
Therefore, search engine optimized landing pages, engaging social media posts, blog posts, editorial articles, and social media with the right contents are effective ways for brand awareness and storytelling.
It is critical though to select the right media channels for advertising campaigns. HNWI value their time and want to get useful information in the most efficient manner. They are critical thinkers who prefer to gain credible insights from selected premium information sources.
It’s new: iClick x Forbes Integrated Solution to engage with China’s HNW consumers
Targeting HNWI is a specialized area of digital marketing; reaching the HNWI in China takes local and highly exclusive know-how due to the country’s complex and dynamic digital ecosystem. To bridge marketers worldwide to the Chinese HNWI market, iClick Interactive (NASDAQ:ICLK) (“iClick”) is teaming up with Forbes to offer the iClick x Forbes Integrated Solution to engage and influence China’s HNWI. The solution is a hybrid of online and offline approaches. It combines the advantages of the two titans, from premium exposure on Forbes.com, social and content marketing, to offline private dinners and events executed in China.
iClick is an omni-channel marketing technology company specialized in the China market. Its proprietary precise audience targeting solutions targeting HNWI in China enable clients to leverage unique data sources from Ctrip, Tencent, UnionPay and its own omni-channel platform. The partnerships are set to identify target audiences via real transactions and intent data with exclusive accuracy and insights. The solutions, remarkably, allow the customization of audience segments through multi-dimensional layers based on spending power and behavior, as well as consumer preferences and trends.
iClick x Forbes Integrated Solution gives marketers the best of both worlds, amplifying their messages to the right Chinese HNWI on trusted platforms. Contact iClick to find out more.
- China increases number of HNWIs in Asia Pacific. (2019, December 4). Retrieved March 12, 2020, from The Asian Banker
- China's ultra rich population seen to rise in next 5 years. (2019, March 6). Retrieved March 12, 2020, from China Daily HK
- The Wealthy In China. (2019). Retrieved March 12, 2020, from Wealth-X
iSuite Insights Spotlight - Issue #12 Discover The Latest Trends In Imported Whisky Market
October 4, 2023
The Chinese spirits market is rapidly growing and transforming, primarily due to the increasing demand for premium and luxury spirits among young Chinese consumers. This shift in consumer preferences, moving away from traditional spirits to premium whiskies, has created opportunities for premium whisky brands in a market that was once dominated by baijiu. According to Statista, the revenue in the whisky market is projected to reach 1.16 billion USD in 2023, with an expected annual growth rate of 2.09% from 2023 to 2027.
Douyin's Like-Minded Strategy: A Marketer's Guide
September 26, 2023
Douyin, often referred to as the Chinese counterpart of TikTok, reigns supreme as China's most prominent short-form video content-sharing platform, captivating 731 million active users. Its rapid rise has cemented its position as one of the swiftly expanding social media platforms in China. Although it has become extremely popular in non-tier 1 cities, Douyin's appeal goes far beyond its massive user base.
Xiaohongshu: Your Gateway to China's Fashion and Lifestyle Market
September 18, 2023
Xiaohongshu stands out as China's premier social e-commerce platform, renowned for its emphasis on fashion, beauty, and lifestyle. It goes beyond being a mere social media application; it represents a dynamic combination of Pinterest, Amazon, and TripAdvisor. With a user-generated content (UGC) model, 200 million monthly active users (MAUs), and a growing presence, Xiaohongshu presents an exceptional opportunity for marketers to engage with the ideal Chinese audience and elevate conversion rates. Here's what makes Xiaohongshu so special for marketers:
Why Overseas Brands Should Embrace Xiaohongshu
September 15, 2023
To thrive in the Chinese market, brands must adapt and embrace strategies that resonate with the younger generation. Xiaohongshu boasts 200 million monthly active users (MAUs) in China and has attracted 140,000 registered brands. For foreign brands looking to increase brand awareness in China and connect with the right Chinese consumers, Xiaohongshu is virtually the must-go-to platform.
A Comprehensive Guide: Setting Up a Xiaohongshu E-Commerce Store
September 15, 2023
Xiaohongshu (XHS) stands as a prominent social media platform and thriving e-commerce marketplace within China. Its focus on user-generated content (UGC) makes it an essential resource for international businesses seeking to penetrate the Chinese market and connect with a vast user base. In this guide, we will explore the process of setting up an XHS e-commerce store and harnessing UGC to drive sales while building brand credibility.
iClick Interactive 小紅書營銷 X 小紅書廣告投放解決方案
September 12, 2023
小紅書（Xiaohongshu - XHS）是中國領先的社交和網絡購物平台之一，旨在豐富用戶的生活。 這個被譽為「中國版Instagram」的平台已經進化成一個龐大的社群，用戶可以在這裡分享有關生活的種種「筆記」，包括時尚、美容、食品、旅行等方面的內容。小紅書以內容為核心，完美融合社群和一站式網絡購物服務，有效地為品牌提升知名度及用戶參與度。
Embark on Your Inbound Marketing Journey on Xiaohongshu
August 24, 2023
The current marketing trend revolves around a community-centric strategy aimed at engaging specific target demographics and fostering lasting relationships. Acknowledged as China's foremost social shopping platform, Xiaohongshu commands a broad spectrum of trust from online users. Boasting over 200 million monthly active users (MAUs) in China, this platform stands as the definitive choice for businesses seeking to engage the right Chinese consumers through inbound marketing strategies.
iSuite Insights Spotlight - Issue #11 Explore The Trends Of Luxury Watch Brands In China
August 17, 2023
The Chinese luxury watches market is a dynamic and booming market. Chinese consumers are increasingly attracted to luxury watches because of the prestige and status associated with them. According to Statista, the revenue in the Chinese luxury watches segment amounts to 10.89 billion USD in 2023, and the market is expected to grow annually by 1.96%. Most revenue will be generated in the Chinese market. International brands are focusing on providing the highest quality watches to increase the sophisticated Chinese consumer base.
Case Study - UGG: Leveraging oCPX to Increase Followers on Private Domain
August 15, 2023
In 2023, the UGG brand is poised to enhance its private traffic following on both WeChat and Douyin platforms. Leveraging UGG's ongoing campaigns and a comprehensive understanding of the target audience, the application of optimizing cost per X (oCPX) will be employed to precisely target and attract new followers effectively, thereby significantly expanding UGG's private traffic reservoir.