Connect with us

China Digital

Game Time: 5 Must-Knows About China’s Mobile Gaming Market

China has the largest mobile gaming market in the world – an exciting market not just for game-lovers, but also for those into marketing and advertising. Shanshan Cao, Senior market analyst China at Newzoo, recently shared the ins and out of China’s hot gaming world. What’s on Weibo was there to take note.

Published

on

China has the largest mobile gaming market in the world – an exciting market not just for game-lovers, but also for those into marketing and advertising. Shanshan Cao, senior market analyst China at Newzoo, recently shared the ins and out of China’s hot gaming world. What’s on Weibo joined the event, that was hosted by Digital China.

China has the largest gaming market in the world – and it is booming business. During the Digital China event (中国数码), a Sino-Dutch initiative focused on Chinese digital innovation, Shanshan Cao, senior market analyst at Newzoo, recently discussed the latest developments and opportunities in China’s gaming market, that is more and more focused on mobile gaming.

China’s Mobile Gaming Industry

“I love to play games,” Shanshan Cao smilingly starts her talk. Every day after work, she comes home to her favorite PC games. The rise of mobile gaming has now also made it possible to enjoy her games outside of the house. Not many people are that familiar with ‘mobile gaming’, but without realizing, she says, many of us already are mobile gamers. The great success of mobile games like Candy Crush or Angry Birds has proved that mobile gaming is quickly taking over a huge chunk of the international gaming market.

Shanshan Cao, Sr. Market Analyst China of Newzoo.

Shanshan Cao, Sr. Market Analyst China of Newzoo.

The US currently has around 139 million mobile gamers. The numbers vary, but according to Cao, China now has approximately 183 million gamers, and it is believed that 71% of the online population of China is an (occasional) online gamer, making it the largest online game market in the world.

One of the key drivers behind this online gaming environment is the fact that China is a mobile-first country. China’s average mobile user owns a relatively cheap but high-performance mobile phone, which enables them to play mobile games. As the quality of China’s smartphones keeps on rising, so are the possibilities and developments within China’s mobile gaming market.

WHATSONWEIBOFEAT1

What makes the market so interesting for companies, Cao explains, is their audience: China’s mobile gamers are young, mainly living in the first and second-tier cities of China, and half of them are female. Most importantly, they generally are fervent users of QQ, WeChat, and other social media, and like to spend money online as digital consumers who do not mind paying for movies, music, or games.

There are many different ways in which mobile games can bring revenue. There are paid games, or games with in-game payment options where users can generate a new life after they are game over by paying for it.

But the commercial power of free mobile games also should not be underestimated, Cao says: in-game advertising could earn money in various ways. The social-media-loving audiences of mobile games make them very interesting for brands who can advertise through precise targeting and crossover cooperations.

For example, Cao mentions, brands could make their products extra appealing by giving away in-game rewards. In this way, one would not only buy a L’Oreal shampoo, but also get ‘extra lives’ or other in-game rewards with it, making both a product and a game more attractive for gamers.

China’s Mobile Gaming Market: 5 Things You Need to Know

By now, China’s mobile games market has risen to 41% of the total Chinese games market. Shanshan Cao names the 5 main characteristics of this market; the must-know facts for anyone interested in being part of it.

1. Highly Competitive Market
China’s mobile games market is a highly competitive one. Right now, it is dominated by big players Netease and Tencent, that, amongst many others, produced the hugely popular Kāixīn Xiāo Xiāo Lè 开心消消乐 (see image).

100718846_p1

Besides these giants, there are also many other big players – such as independent mobile game company iDreamsky. This makes it challenging for smaller companies to enter the market.

It is especially difficult for non-Chinese companies to enter China’s mobile gaming market, but there are also many opportunities for marketers and gaming companies that make it worthwhile. China has the world’s largest gaming market that is still continuing to grow; an exciting and booming place to be for companies that are not afraid of a challenge.

2. Restrictions & Censorship
Even without the big players, the Chinese gaming market is somewhat hard to enter for non-Chinese companies due to local restrictions and censorship. There is no Google Play Store, for example, as all Google products including Gmail, Google search, and the app store have been blocked since 2010.

This is just one of the many local restrictions foreign companies would have to deal with. But, Shanshan notes, one major possibility for foreign companies to tap into the market is to establish an own company in China or to work with a local partner that has a thorough understanding of the market and its restrictions and possibilities.

Swedish gaming company Mojang recently opted for the latter, as it teamed up with Chinese game giant Netease to develop a China-tailored version of their hugely popular Minecraft game. It currently holds the number one spot in the popular mobile games rank in China under the name of ‘My World’ (我的世界).

3. Fan Economy
Many of China’s popular online game are based on popular Chinese literature, comics, anime or reality TV shows – this ‘crossover success’ is an important part of China’s mobile gaming market.

Star Wars is a good example of how ’fan economy’ can benefit multiple markets, including the gaming one; the Star Wars: Commander game became a number one hit in China earlier this year, generating more than 1 million downloads in just four days within its release.

stw

Shanshan encourages foreign companies to use mobile big data to help them understand Chinese consumers and their preferences.

4. Going Global
The competitive domestic gaming market has led to an increasing internationalization of China’s gaming companies. One of these companies is Snail Games, that was established in Suzhou, China, in 2000, and set up its LA-based USA company in 2010.

Going global poses a challenge for these companies, as they have to adjust their design to a more western taste, which often means making it less ‘cute’ or adding some game elements and promotion methods that speaks to a western audience. For the USA launch of the game Taichi Panda, for example, Snail Games hired famous American martial artist, judoka and actress Ronda Rousey to be their spokesman to make the game more ‘American’.

758077088b5199284616822d8831227b21306f80

There are also companies, including Tencent and Alibaba, that are all about buying; they enter the western market and buy up local companies like Miniclip or Pocket Gems.

Shanshan notes that the internationalisation of China’s mobile gaming market also forms an opportunity for foreign gaming companies; if they do not have a strategy to enter China themselves, it is also commercially interesting to help Chinese games to do localisation in countries outside of China.

5. Mobile E-Sport Games
Mobile e-sport is bigger in China than it is in the West. Many bestseller games have proven that e-sport can make much money on console – but it is even more interesting when people can play it on their phone whenever they want to play it. Adding a competitive feature, like is done in Hero Pro League, makes it even more appealing to players.

One of the people who have made this market bigger is e-sports lunatic Wang Sicong, who also happens to be the son of the richest man in China.

Shanshan stresses that e-sports are important within China’s mobile gaming, but that it is not necessarily the dominant genre: “At this moment, China’s mobile gaming market has so much potential – anything is possible,” she says – again reaffirming that China’s mobile gaming market is anything but game over.

– By Manya Koetse

[rp4wp]

©2016 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

China Digital

Will Weibo Become 30% State-Media Owned?

Alibaba is allegedly ready to give up its Weibo shares to SMG.

Published

on

Bloomberg recently reported that Chinese e-commerce giant Alibaba is preparing to sell its 30% stake in social media platform Weibo. According to people familiar with the matter, Alibaba is negotiating with the state-owned Shanghai Media Group (SMG).

News about Alibaba planning to sell all of its Weibo shares has triggered some online discussions on the Chinese social media platform. Bloomberg was the first to report that the Chinese e-commerce and IT enterprise is talking to the state-owned Shanghai Media Group (SMG) to sell all of its 30% stake in Weibo.

According to Bloomberg, the move relates to regulators wanting to curb the influence of Chinese tech giants in the media sphere. The Bloomberg article claims that SMG, as one of China’s largest state-owned media and cultural conglomerates, stands a higher chance of gaining the approval of Chinese authorities than a private acquirer.

SMG is a large state-owned enterprise with over a dozen TV and radio stations, many newspapers and magazines, various drama & film production and distribution businesses, and more. The company has a major media influence, not only in Shanghai but throughout the country.

According to Weibo’s 2020 annual reports, New Wave held a 45% stake in Weibo, followed by Alibaba with its 30%. New Wave is the holding company by Weibo chairman Charles Chao.

“Weibo will change into another channel for SMG,” some Weibo users predict, with others also sharing their fear that Weibo would become more and more like a platform for official media (“微博现在越来越官方化”).

“This would be a big milestone in the crumbling of Alibaba’s media empire,” another commenter wrote. Some wonder if the developments have more to do with Weibo as a platform, or with Alibaba and its media influence.

In March of 2021, the Wall Street Journal already reported that the Chinese government asked the Alibaba Group to dispose of its media assets due to concerns over the company’s influence in the sensitive media sphere.

“When Alibaba exits and state-owned capital enters, Weibo is expected to magnificently transform into a ‘state-owned enterprise’,” another Weibo user wrote.

Although some commenters worry that Weibo will change for the worse and that there will be more censorship, others see a sunnier future for the social media platform: “It would be good for Weibo to be ‘state-owned’ so that it won’t be controlled by capital to influence public opinion anymore.”

Chinese tech site 36kr also reported about the issue on January 1st, but neither Weibo nor Alibaba or SGM have officially responded yet.

By Manya Koetse

With contributions by Miranda Barnes.

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Continue Reading

China Celebs

China’s Livestreaming Queen Viya Goes Viral for Fraud and Fines, Ordered to Pay $210 Million

Viya, the Queen of Taobao, is under fire for tax evasion.

Published

on

Viya, one of China’s most well-known and successful live streamers, is trending today for allegedly committing tax fraud by deliberately providing false information and concealing personal income.

The ‘Taobao queen’ Viya (薇娅, real name Huang Wei 黄薇) reportedly committed tax fraud from 2019 to 2020, during which she evaded some 643 million yuan ($100 million) in taxes and also failed to pay an additional 60 million yuan ($9.4 million) in taxes.

The Hangzhou Tax Administration Office reportedly ordered Viya to pay an amount of over 1.3 billion yuan ($210 million) in taxes, late payment fees, and other fines. On Monday, a hashtag related to the issue had garnered over 600 million views on Weibo (#薇娅偷逃税被追缴并处罚款13.41亿元#).

Viya made headlines in English-language media earlier this year when she participated in a promotional event for Single’s Day on October 20th and managed to sell 20 billion yuan ($3.1 billion) in merchandise in just one live streaming session together with e-commerce superstar Lipstick King.

China has a booming livestreaming e-commerce market, and Viya is one of the top influencers to have joined the thriving online sales industry years ago. When the e-commerce platform Taobao started their Taobao Live initiative (mixing online sales with livestreams), Viya became one of their top sellers as millions of viewers starting joining her channel every single day (she livestreams daily at 7.30 pm).

With news about Viya’s tax fraud practices and enormous fines going viral on Chinese social media, many are attacking the top influencer, as her tax fraud case seems to be even bigger than that of Chinese actress Fan Bingbing (范冰冰).

Chinese actress Fan Bingbing went “missing” for months back in 2018 when she was at the center of a tax evasion scandal. The actress was ordered to pay taxes and fines worth hundreds of millions of yuan over tax evasion. The famous actress eventually paid approximately $128,5 million in taxes and fines, less than Viya was ordered to pay this month.

Like Fan Bingbing, Viya will also not be held criminally liable if the total amount is paid in time. This was the first time for the e-commerce star to be “administratively punished” for tax evasion.

Around 5pm on Monday, Viya posted a public apology on her Weibo account, saying she takes on full responsibility for the errors she made: “I was wrong, and I will bear all the consequences for my mistakes. I’m so sorry!”

It is not clear if she will still do her daily live stream later today and how this news will impact Viya’s future career.

Update: Vaya’s live stream was canceled.

Update 2: Vaya’s husband also issued an apology on Weibo.

Update 3: Taobao has suspended or ‘frozen’ (“冻结”) Vaya’s livestreaming channel. Her Taobao store is still online.

By Manya Koetse

With contributions by Miranda Barnes.

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Continue Reading
Advertisement
Advertisement

Support What’s on Weibo

If you enjoy What’s on Weibo and support the way we report the latest trends in China, you could consider becoming a What's on Weibo patron:
Donate

Facebook

Advertisement

Contribute

Got any tips? Or want to become a contributor or intern at What's on Weibo? Email us as at info@whatsonweibo.com.

Popular Reads