Today, China is the largest gaming market in the world with the most tech-savvy consumers. But the landscape of the industry is heavily shaped by two factors: country’s economic growth and governmental control of gaming content. The Chinese economy is rising, creating a positive climate for an industry growth. Moreover, the gaming industry is not heavily censored by the authorities; the only regulation imposed was the ban on console games. The ban was lifted in the mid of 2015 that opened a lot of opportunities for foreign firms. Today, the Chinese gaming market is one of the most competitive in the world as it holds huge opportunities for companies.
Gaming industry is way too appealing to be ignored, but foreign companies should be aware of the challenges they can face when expanding to China:
1. Competition. It is very hard to stay competitive and keep up with the industry in China due to huge rivalry in the market. Moreover, it is almost impossible to build loyalty with customers as they are always looking for new and interesting alternatives. In order to be popular and in demand, most of the gaming brands launch a lot of updates and add-ons for the games to keep customers engaged.
2. Piracy. Piracy and counterfeiting are the two burdens of the Chinese online space. Gaming industry loses a lot of money every year due to piracy issues. Even though Chinese consumers are financially able to purchase licensed copies of the games, they are not used to do that. Piracy is socially acceptable pattern, thus it could be hard for brands to stay authentic. Learn here how to deal with counterfeiting issues in China.
3. Consumer behaviour. China is a unique country and in order to succeed in its market, it is important to understand consumer behaviour. Most of the Chinese gamers play video games to relax after work, thus any games that require a lot of intellectual or strategic thinking will not succeed in the market. Aside from that, single player games are not as popular; Chinese gamers prefer multi-player games with time and location features.
Beijing-based Web Presence In China (WPIC) is an independent, full service digital marketing and IT development agency. WPIC helps businesses setup and manage WeChat online stores. Having over 13 years of on the ground experience in the China digital sector, the firm has worked with over 300 global companies and leads a team of 120 people between their global offices. WPIC supports China and the greater APAC region in digital and IT solutions.