20108

Nielsen China Mobile

Report Insights
August 2010
1 1
Company has just released its most recent Mobile Insights
Report on China. The report offers a glimpse into just how
powerful the opportunity is to satisfy the needs of mobile
Internet users in China. These are just some of the highlights.
Who is Using Mobile Phones and What Are
They Looking For?
Today, there are 755 million cell phone subscribers in China
more than half of the population. That makes China the
worlds largest mobile device market. That number will (of
course) only rise as the populace becomes more affuent.
Nielsen found that the split between the sexes was almost
equal: women comprised 49% of users while men made up
51%. Adults aged 25-34 and 35-44 made up the largest
percentage of users (23% each).

The majority of consumers (54%) used their devices for
advanced data such as e-mail, gaming and music, while 36%
used their phones for text/SMS and voice only (another 10%
said they used their phones for calls only).
With the consolidation of the telecom market in China over
the past year, three carriers now dominate the market. China
Mobile is the clear leader with more than 70% market share,
followed by China Unicom and China Telecom.
Mobile Internet More
Popular in China than in
U.S.
By Shan Phillips, Vice President, Greater China, Telecom
Practice, The Nielsen Company
On the streets of Guangzhou, Harbin and Shanghai, the
mobile phone has become ubiquitous. Once the domain of
the elite, it now seems that just about everybody has one.
Widespread ownership of mobiles is only a fairly recent
development in China, but consumers there have fully
embraced the technology and in some ways are using it more
robustly than their American and European counterparts.
For many people in China, the mobile Web is the only one
they need. When they think of the World Wide Web, they
dont think of tethering themselves to a desktop PC and the
accessories of mice, keyboards, mouse pads, printers and
monitors. Not only dont many homes in China have (or
need) landlines for voice communications, they also dont
require hardwired Internet access for their fx of the Web. And
with mobile phones, everything they need is in the palm of
their hand.
In a short amount of time, mobile consumers in China have
surpassed their American counterparts when it comes to
using the devices to access the Internet (38% of Chinese
mobile subscribers compared to 27% of American mobile
subscribers), despite less advanced networks. Whether its
kids in Beijing downloading games or adults in Shanghai
requiring real-time information about the stock market and
the ability to act on it on the go, the mobile Web is becoming
an integral part of Chinese life.
To gauge where this important market stands and where
potential opportunities lie for retailers, device manufacturers,
service providers and content producers The Nielsen
All Subscribers (n=4,946)
Key Groups: Estimated Market Proportion
Male
51%
Female
49%
Ages 1524
19%
Ages 2534
23%
Ages 3544
23%
Ages 4554
20%
Ages 5564
14%
Advanced data user
54%
SMS/Voice user
36%
Voice-only user
10%
Prepaid user
87%
Postpaid user
13%
Business user
45%
Personal user
55%
2 2
In terms of handset brands, Nokia dominates followed by
Samsung and Motorola. However the real story is that the
top international brands are losing share to local brands that
have designed low cost phones with features that appeal to
Chinese consumers, such as extra loud volume settings, funky
shapes and designs and extra long battery life. This trend
has been accentuated by the governments requirement that
leading operator China Mobile deploy a 3G technology (TD-
SCDMA) that is not used in other markets- forcing global
device brands to make diffcult choices about whether to
develop devices for this new standard.

While price was the most important factor for consumers
when considering buying a new device, we see increasing
interest in device style and device features as well as
considerable brand loyalty.
The average Chinese mobile user spent just over US$ 10 per
month for their service (for context, US$500 is considered
a good blue collar wage in Chinas more prosperous urban
areas) . Men spent more than women, while consumers using
their device primarily for business spent the most. As youth
24-35 are the biggest data users, it is not surprising that they
are the biggest spending age group as well.
How Are Chinese Using Their Mobile Phones?

Both pre- and post-paid subscribers used their devices for text
messaging/SMS (87% and 80% respectively). Games were
the second most popular followed by the mobile Internet
and are also more prevalent among post-paid subscribers.
Video services such as mobile TV, messaging and video calling
were used by only a small percentage of users, largely due to
network speed issues. Once 3G expands, it is likely that these
services will gain in popularity.
Its perhaps not surprising that Chinese youth surf the net
while on the go more than adults theyve grown up with
the Internet. Likewise, urban dwellers with access to better
network coverage use their mobiles for Internet access
more than their rural counterparts.
Market Opportunities
While almost 40% of Chinese phone users access the
mobile Internet, they dont use as many data intensive
applications such as mobile video and content uploads.
There are a number of reasons for this: 3G launched just
last year; penetration of smartphones such as the iPhone
and Android is still low; the Mobile Application ecosystem
remains fragmented, and social networking platforms are
less developed. However, as mobile penetration is just
Device Manufacturer Brand Performance
Top 3 Selection Criteria for Mobile Devices
Acquired and Selected Device in the Past 6 Months (n=685)
16%
13% 12%
8%
4% 3% 3% 1%
13%
15%
9%
13%
11%
7%
6%
3%
11%
8%
11%
10%
9%
5%
6%
6%
5%
52%
66%
64%
72%
83%
85%
87%
91%
94% 93%
97%
2% 2% 2%
24%
1% 2% 3% 3% 1%
4% 2%
61%
Price Form/Shape Phone
brand/
Previous
experience
Design/
Style
Ease
of use
Size/
Weight
Camera Battery life Storage
capability/
Memory
Operating
system
Large,
easy to
read display
Mobile
W-iFi
Did not rank
Ranked #3
Ranked #2
Ranked #1
4%
23%
13%
20%
27%
16%
40%
8%
38%
22%
86%
14%
16%
17%
18%
18%
19%
21%
25%
27%
37%
64%
Location-based Services
Instant messaging
Picture downloads
Application (App) downloads
Ringtone downloads
Text alerts
Pre-installed games
Email
Mobile internet
Picture messaging/MMS
Text messaging/SMS
US
China
Mobile Media Usage in the Past 30 Days
Q1 2010 US vs. China
Location Based Service, a Key Enabler of Mobile Advertising,
More Prevalent in the USA
3 3
SIDEBAR
China versus the U.S.: How usage differs
In China, the vast majority of mobile consumers (87%)
use pre-paid plans. In the U.S., less than 20% of mobile
consumers use them, as most Americans prefer subscribing to
post-paid plans. Even though Chinese have less 3G network
coverage and own fewer smartphones, they tend to use their
mobile phones to access the Internet while on the go more
than Americans (38% vs. 27%). Chinese also texted (86%
vs. 64%), and instant messaged (23% vs. 16%) more often.
Meanwhile, Americans used their mobile devices more than
Chinese for e-mail (25% vs. 8%) and picture messaging (37%
vs. 22%).
Because 3G development in the U.S. is widespread,
Americans used bandwidth-intensive applications such as
content uploads, video messaging and mobile video more
than Chinese. Americans also visited a wider variety of
sites, although health/ftness, education/employment and
automotive sites were more popular in China than in the U.S.
crossing 50%, Chinas fxed phone line connections are
decreasing as more users cut the cord and access to the
Internet via computers is less prevalent than in the U.S. The
demand for mobile devices and data will continue to expand,
leading to many opportunities for service providers, device
manufacturers, retailers and content providers.
Chinas growth over the last decade has been extraordinary
and shows few signs of abating any time soon. As such, its
only natural that Chinese consumers would wholeheartedly
adopt technology and products that enable them to be
productive and stay connected on the move.
Methodology
Nielsens Mobile Insights Report on China is based on face-to-
face surveys with 4,946 consumers age 15 and up in 19 cities
around China. The interviews were conducted in March 2010.
2%
7%
11%
11%
15%
4%
4%
4%
9%
9%
5%
6%
7%
7%
9%
11%
11%
12%
15%
17%
Property
Adult content
Automotive
Education/Employment
Health/Fitness
Portal entry
page/Personalized
Science/Technology
Travel
Business/Finance
Shopping/Auctions
US
China
Mobile Website Categories Visited in the Past 30 Days
Q1 2010 US vs. China
Health/Fitness, Education/Employment and Automotive are
More Popular in China
4 4

7.55

49%51%253435
442
23%2544
46%
(54%)
36%
10%
2008

70%

3G

3G (TD-SCDMA)
3G
All Subscribers (n=4,946)

51%

49%
1524
19%
2534
23%
3544
23%
4554
20%
5564
14%

54%
SMS/Voice
36%
Voice-only
10%

87%

13%

45%

55%

(Shan Phillips)

3G
(38%
27%)

5 5
87%
80%

3G

3GiPhone
Android

194,946
15
20103

70
3500

24-35

?
Page 3

Source: Nielsen Mobile Insights, China,

Q1 2010
16%
13% 12%
8%
4% 3% 3%
1%
13%
15%
9%
13%
11%
7%
6%
3%
11%
8%
11%
10%
9%
5%
6%
6%
5%
52%
66%
64%
72%
83% 85%
87%
91%
94% 93%
97%
2% 2% 2%
24%
1% 2% 3% 3% 1%
4% 2%
61%

J'J

Question used: Q650

Acquired and Selected Device in the Past 6 Months (n=685)
Source:
4%
23%
13%
20%
27%
16%
40%
8%
38%
22%
86%
14%
16%
17%
18%
18%
19%
21%
25%
27%
37%
64%

/MMS
/SMS

Questions used: $Q407MRV

30
Q1 2010 vs.

6 6

(87%)
20%
3G

(38% vs. 27%)

(86% vs. 64%)
(23% vs.16%)
(25% vs. 8%) (37% vs. 22%)
3G

//
Source:
2%
7%
11%
11%
15%
4%
4%
2%
4%
9%
9%
16%
5%
10%
23%
5%
6%
7%
7%
9%
11%
11%
12%
12%
15%
17%
21%
24%
24%
26%

/
/

/
/

/
/

US

Questions used: $Q407MRV

30
Q1 2010 vs.
/,/
7 7

100
www.nielsen.com
2010
2010
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer
information, television and other media measurement, online intelligence, mobile measurement, trade shows and business
publications. The privately held company is active in approximately 100 countries, with headquarters in New York, USA. For more
information, please visit, www.nielsen.com.