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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.

Manya Koetse

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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.

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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).

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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.

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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’.

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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

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

Manya Koetse is the founder and editor-in-chief of whatsonweibo.com. She is a writer, public speaker, and researcher (Sinologist, MPhil) on social trends, digital developments, and new media in an ever-changing China, with a focus on Chinese society, pop culture, and gender issues. She shares her love for hotpot on hotpotambassador.com. Contact at manya@whatsonweibo.com, or follow on Twitter.

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China Brands, Marketing & Consumers

Zara Dress Goes Viral in China for Resemblance to Haidilao Apron

Who’s gonna buy this Zara dress in China? “I’m afraid that someone will say I stole the apron from Haidilao.”

Manya Koetse

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A short dress sold by Zara has gone viral in China for looking like the aprons used by the popular Chinese hotpot chain Haidilao.

“I really thought it was a Zara x Haidialo collab,” some customers commented. Others also agree that the first thing they thought about when seeing the Zara dress was the Haidilao apron.

The “original” vs the Zara dress.

The dress has become a popular topic on Xiaohongshu and other social media, where some images show the dress with the Haidilao logo photoshopped on it to emphasize the similarity.

One post on Xiaohongshu discussing the dress, with the caption “Curious about the inspiration behind Zara’s design,” garnered over 28,000 replies.

Haidilao, with its numerous restaurants across China, is renowned for its hospitality and exceptional customer service. Anyone who has ever dined at their restaurants is familiar with the Haidilao apron provided to diners for protecting their clothes from food or oil stains while enjoying hotpot.

These aprons are meant for use during the meal and should be returned to the staff afterward, rather than taken home.

The Haidilao apron.

However, many people who have dined at Haidilao may have encountered the following scenario: after indulging in drinks and hotpot, they realize they are still wearing a Haidilao apron upon leaving the restaurant. Consequently, many hotpot enthusiasts may have an ‘accidental’ Haidilao apron tucked away at home somewhere.

This only adds to the humor of the latest Zara dress looking like the apron. The similarity between the Zara dress and the Haidilao apron is actually so striking, that some people are afraid to be accused of being a thief if they would wear it.

One Weibo commenter wrote: “The most confusing item of this season from Zara has come out. It’s like a Zara x Haidilao collaboration apron… This… I can’t wear it: I’m afraid that someone will say I stole the apron from Haidilao.”

Funnily enough, the Haidilao apron similarity seems to have set off a trend of girls trying on the Zara dress and posting photos of themselves wearing it.

It’s doubtful that they’re actually purchasing the dress. Although some commenters say the dress is not bad, most people associate it too closely with the Haidilao brand: it just makes them hungry for hotpot.

By Manya Koetse

Independently reporting China trends for over a decade. Like what we do? Support us and get the story behind the hashtag by subscribing:

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.

©2024 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China Brands, Marketing & Consumers

More than Malatang: Tianshui’s Recipe for Success

Zibo had its BBQ moment. Now, it’s Tianshui’s turn to shine with its special take on malatang. Tourism marketing in China will never be the same again.

Manya Koetse

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Since the early post-pandemic days, Chinese cities have stepped up their game to attract more tourists. The dynamics of Chinese social media make it possible for smaller, lesser-known destinations to gain overnight fame as a ‘celebrity city.’ Now, it’s Tianshui’s turn to shine.

During this Qingming Festival holiday, there is one Chinese city that will definitely welcome more visitors than usual. Tianshui, the second largest city in Gansu Province, has emerged as the latest travel hotspot among domestic tourists following its recent surge in popularity online.

Situated approximately halfway along the Lanzhou-Xi’an rail line, this ancient city wasn’t previously a top destination for tourists. Most travelers would typically pass through the industrial city to see the Maiji Shan Grottoes, the fourth largest Buddhist cave complex in China, renowned for its famous rock carvings along the Silk Road.

But now, there is another reason to visit Tianshui: malatang.

 
Gansu-Style Malatang
 

Málàtàng (麻辣烫), which literally means ‘numb spicy hot,’ is a popular Chinese street food dish featuring a diverse array of ingredients cooked in a soup base infused with Sichuan pepper and dried chili pepper. There are multiple ways to enjoy malatang.

When dining at smaller street stalls, it’s common to find a selection of skewered foods—ranging from meats to quail eggs and vegetables—simmering in a large vat of flavorful spicy broth. This communal dining experience is affordable and convenient for solo diners or smaller groups seeking a hotpot-style meal.

In malatang restaurants, patrons can usually choose from a selection of self-serve skewered ingredients. You have them weighed, pay, and then have it prepared and served in a bowl with a preferred soup base, often with the option to choose the level of spiciness, from super hot to mild.

Although malatang originated in Sichuan, it is now common all over China. What makes Tianshui malatang stand out is its “Gansu-style” take, with a special focus on hand-pulled noodles, potato, and spicy oil.

An important ingredient for the soup base is the somewhat sweet and fragrant Gangu chili, produced in Tianshui’s Gangu County, known as “the hometown of peppers.”

Another ingredient is Maiji peppercorns (used in the sauce), and there are more locally produced ingredients, such as the black fungi from Qingshui County.

One restaurant that made Tianshui’s malatang particularly famous is Haiying Malatang (海英麻辣烫) in the city’s Qinzhou District. On February 13, the tiny restaurant, which has been around for three decades, welcomed an online influencer (@一杯梁白开) who posted about her visit.

The vlogger was so enthusiastic about her taste of “Gansu-style malatang,” that she urged her followers to try it out. It was the start of something much bigger than she could have imagined.

 
Replicating Zibo
 

Tianshui isn’t the first city to capture the spotlight on Chinese social media. Cities such as Zibo and Harbin have previously surged in popularity, becoming overnight sensations on platforms like Weibo, Xiaohongshu, and Douyin.

This phenomenon of Chinese cities transforming into hot travel destinations due to social media frenzy became particularly noteworthy in early 2023.

During the Covid years, various factors sparked a friendly competition among Chinese cities, each competing to attract the most visitors and to promote their city in the best way possible.

The Covid pandemic had diverse impacts on the Chinese domestic tourism industry. On one hand, domestic tourism flourished due to the pandemic, as Chinese travelers opted for destinations closer to home amid travel restrictions. On the other hand, the zero-Covid policy, with its lockdowns and the absence of foreign visitors, posed significant challenges to the tourism sector.

Following the abolition of the zero-Covid policy, tourism and marketing departments across China swung into action to revitalize their local economy. China’s social media platforms became battlegrounds to capture the attention of Chinese netizens. Local government officials dressed up in traditional outfits and created original videos to convince tourists to visit their hometowns.

Zibo was the first city to become an absolute social media sensation in the post-Covid era. The old industrial and mining city was not exactly known as a trendy tourist destination, but saw its hotel bookings going up 800% in 2023 compared to pre-Covid year 2019. Among others factors contributing to its success, the city’s online marketing campaign and how it turned its local BBQ culture into a unique selling point were both critical.

Zibo crowds, image via 163.com.

Since 2023, multiple cities have tried to replicate the success of Zibo. Although not all have achieved similar results, Harbin has done very well by becoming a meme-worthy tourist attraction earlier in 2024, emphasizing its snow spectacle and friendly local culture.

By promoting its distinctive take on malatang, Tianshui has emerged as the next city to captivate online audiences, leading to a surge in visitor numbers.

Like with Zibo and Harbin, one particular important strategy used by these tourist offices is to swiftly respond to content created by travel bloggers or food vloggers about their cities, boosting the online attention and immediately seizing the opportunity to turn online success into offline visits.

 
A Timeline
 

What does it take to become a Chinese ‘celebrity city’? Since late February and early March of this year, various Douyin accounts started posting about Tianshui and its malatang.

They initially were the main reason driving tourists to the city to try out malatang, but they were not the only reason – city marketing and state media coverage also played a role in how the success of Tianshui played out.

Here’s a timeline of how its (online) frenzy unfolded:

  • July 25, 2023: First video on Douyin about Tianshui’s malatang, after which 45 more videos by various accounts followed in the following six months.
  •  Feb 5, 2024: Douyin account ‘Chuanshuo Zhong de Bozi’ (传说中的波仔) posts a video about malatang streetfood in Gansu
  • Feb 13, 2024: Douyin account ‘Yibei Liangbaikai’ (一杯梁白开) posts a video suggesting the “nationwide popularization of Gansu-style malatang.” This video is an important breakthrough moment in the success of Tianshui as a malatang city.
  • Feb – March ~, 2024: The Tianshui Culture & Tourism Bureau is visiting sites, conducting research, and organizing meetings with different departments to establish the “Tianshui city + malatang” brand (文旅+天水麻辣烫”品牌) as the city’s new “business card.”
  • March 11, 2024: Tianshui city launches a dedicated ‘spicy and hot’ bus line to cater to visitors who want to quickly reach the city’s renowned malatang spots.
  • March 13-14, 2024: China’s Baidu search engine witnesses exponential growth in online searches for Tianshui malatang.
  • March 14-15, 2024: The boss of Tianshui’s popular Haiying restaurant goes viral after videos show him overwhelmed and worried he can’t keep up. His facial expression becomes a meme, with netizens dubbing it the “can’t keep up-expression” (“烫不完表情”).

The worried and stressed expression of this malatang diner boss went viral overnight.

  • March 17, 2024: Chinese media report about free ‘Tianshui malatang’ wifi being offered to visitors as a special service while they’re standing in line at malatang restaurants.
  • March 18, 2024: Tianshui opens its first ‘Malatang Street’ where about 40 stalls sell malatang.
  • March 18, 2024: Chinese local media report that one Tianshui hair salon (Tony) has changed its shop into a malatang shop overnight, showing just how big the hype has become.
  • March 21, 2024: A dedicated ‘Tianshui malatang’ train started riding from Lanzhou West Station to Tianshui (#天水麻辣烫专列开行#).
  • March 21, 2024: Chinese actor Jia Nailiang (贾乃亮) makes a video about having Tianshui malatang, further adding to its online success.
  • March 30, 2024: A rare occurrence: as the main attraction near Tianshui, the Maiji Mountain Scenic Area announces that they’ve reached the maximum number of visitors and don’t have the capacity to welcome any more visitors, suspending all ticket sales for the day.
  • April 1, 2024: Chinese presenter Zhang Dada was spotted making malatang in a local Tianshui restaurant, drawing in even more crowds.

 
A New Moment to Shine
 

Fame attracts criticism, and that also holds true for China’s ‘celebrity cities.’

Some argue that Tianshui’s malatang is overrated, considering the richness of Gansu cuisine, which offers much more than just malatang alone.

When Zibo reached hype status, it also faced scrutiny, with some commenters suggesting that the popularity of Zibo BBQ was a symptom of a society that’s all about consumerism and “empty social spectacle.”

There is a lot to say about the downsides of suddenly becoming a ‘celebrity city’ and the superficiality and fleetingness that comes with these kinds of trends. But for many locals, it is seen as an important moment as they see their businesses and cities thrive.

Even after the hype fades, local businesses can maintain their success by branding themselves as previously viral restaurants. When I visited Zibo a few months after its initial buzz, many once-popular spots marketed themselves as ‘wanghong’ (网红) or viral celebrity restaurants.

For the city itself, being in the spotlight holds its own value in the long run. Even after the hype has peaked and subsided, the gained national recognition ensures that these “trendy” places will continue to attract visitors in the future.

According to data from Ctrip, Tianshui experienced a 40% increase in tourism spending since March (specifically from March 1st to March 16th). State media reports claim that the city saw 2.3 million visitors in the first three weeks of March, with total tourism revenue reaching nearly 1.4 billion yuan ($193.7 million).

There are more ripple effects of Tianshui’s success: Maiji Shan Grottoes are witnessing a surge in visitors, and local e-commerce companies are experiencing a spike in orders from outside the city. Even when they’re not in Tianshui, people still want a piece of Tianshui.

By now, it’s clear that tourism marketing in China will never be the same again. Zibo, Harbin, and Tianshui exemplify a new era of destination hype, requiring a unique selling point, social media success, strong city marketing, and a friendly and fair business culture at the grassroots level.

While Zibo’s success was largely organic, Harbin’s was more orchestrated, and Tianshui learned from both. Now, other potential ‘celebrity’ cities are preparing to go viral, learning from the successes and failures of their predecessors to shine when their time comes.

By Manya Koetse

Independently reporting China trends for over a decade. Like what we do? Support us and get the story behind the hashtag by subscribing:

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.

©2024 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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