From the self-disclosure of Xiau Ning and Ning Nan, we know that online browsing and shopping has become an integral part of almost everyone's shopping experiences. In 2015, there were over 615 million internet users in China, and 95% of them are mobile internet users. This trend will only continue. Here are the data provided by The World Bank. In 2014, half of the population in China was Internet users. Since then, the number has continued to grow. The extent of Internet usage in China far exceeds that in India and is catching up with the developed economies. Like Japan and the United States. [MUSIC] In China, television is still a major medium for transmitting information. Particularly messages from the government on social, cultural and political issues. Increasingly the Chinese are getting the consumer information from the internet and other new media. The new media for e-commerce sites in China and the west have many similarities. For example, the experience of shopping on YHD.com in China may not differ drastically from that of Amazon.com. The user interfaces of Chinese and American social media software are also similar. For example, the interface of Wechat is similar to that of Whatsapp. And interface of Weibo is similar to that of Facebook. However the apparent similarities should not master subtle differences between Chinese and Western new media. More importantly there are deep differences in how Chinese and Western consumers use the Internet. We will come back to this later on. You may think that buying on the Internet is popular in big cities only. This is definitely not the case in China. The prevalence of buying online in second tier and third tier cities is comparable to that in tier one cities. In fact, looking at a recent survey conducted by McKinsey, the data showed that the gross merchandise found in low tier cities is higher than that of higher tier cities, indicating that low tier cities actually spend more on e-commerce than high tier cities. Low tier cities also have huge growth potential for e-commerce. When more and more will become e-commerce shoppers. Goods that were once unreachable for the rural towns are now readily available online. Consumers everywhere in China buy from online stores, actively share their online shopping experiences and comment on the service and the products that they purchase. The increased efficiency in advertisement and promotion, product distribution and product delivery has turned the digital market into an vital part of the modern marketing mix in modern China. Companies that want to do business with Chinese consumers can capitalize on the internet connectivity in China and make use of the new media to increase product exposure, promote their brands and reduce distribution cost. But how can companies trying to do business in China, succeed in e-commerce or digital marketing? To answer this question, you need to know something about the psychology of Chinese online consumers. In lesson one, you have learned about some motivational characteristics of Chinese consumers. We will define the lesson into three parts. In the first part of this week's lesson, you will gain some insights on what is guanxi and how guanxi differs with traditional relationship marketing. You will then hear from an expert scholar to discuss why guanxi can help marketing in China. In the second part of this weeks lesson, you'll learn how you can develop and manage guanxi. Specifically how could you do so through the internet. You will then hear from an expert scholar on discussing how reasearch on social media help to understand Chinese consumers. We will have dialogue with the practitioner. In this segment, you will understand how companies use social media to manage relationship in China in real case scenario. By the end of this lesson, you should have a better understanding of the psychological processes a Chinese online consumer goes through before they check out the products in online stores. Before we turn to the psychology of online shopping in China, let us review how the internet has reshaped the consumer behaviors in China.
