[eMarketer] Virtual Reality and consumer marketing in China
Even as companies in China invest in Virtual Reality to engage with consumers, the adoption of the emerging technology has failed to pick up as anticipated in recent years.
According to a study by HTC conducted in March 2021, six out of 10 users of VR in China have used the tech more during the pandemic with video viewing, gaming and fitness being among reasons that have seen an upsurge in use.
Chinese brands have also tapped into the technology to reach out to consumers pointing to the growing role of the technology in engagement.
However experts and studies have cited a dip in adoption of VR devices among consumers since it recorded a boom in 2018.For example, 21 per cent of consumers in China between 20 and 49 years owned VR devices in 2019, with the figure dropping to 13 per cent in the fourth quarter of 2020 as quoted by market research firm Mintel.
While the number of VR users in China grew 18.8 million in 2019 from 2.5 million in 2016, it only grew marginally in 2020 to reach 20.1 million according to data from Forward Business and Intelligence Co
Despite these hiccups however, according to eMarketer, China commands the world’s largest VR market. In 2020 it accounted for 54.7 per cent of commercial and consumer spending on VR and augmented reality worldwide. Revenues are poised to grow to by 31.7% year over year, to reach$7.89 billion.