Key Findings From 19Q2 User Tracker

Source:iResearch August 08,20197:41 AM
Overall Trend: 
Monthly mobile internet users continued to grow throughout 19Q2 and reached 1.395 bln in Jun, but growth decelerated notably as the pace of mobile internet penetration slows down. Users for most service categories are on upward trend in 19Q2, with short video recording strongest user growth. Mobile games, by contrast, experienced considerable user decline in the period;
Total per user daily time spent reached 215 mins in Jun but the Y/Y growth rate has been decelerating for four months in a row;
Total time spent on mobile end went up 5% Q/Q to 7 tln mins in 19Q2. Online video lost time share in 19Q2 (mainly due to DAU loss) while short video gained share during the same period thanks to DAU gain;
Tracked Companies: 
Combined users across all Tencent Apps kept steadily growing pace in 19Q2. However, time spent on all Tencent Apps as percentage of total time spent saw a decrease of 30 bps Q/Q, mainly due to the time share loss of long video;
BABA’s user base also grew nicely, which features stronger seasonality and does not exhibit a growth trend as smooth as Tencent’s. BABA’s time spent share decreased by 40 bps in 19Q2 for the same reason as Tencent’s;
Combined users across all BIDU Apps were still on a growing trend, but growth rate slowed down considerably in 19Q2. Similar with Tencent and BABA, BIDU’s time spent share declined by 30 bps in 19Q2;
Total users across ByteDance Apps further increased in 19Q2 but its service penetration rate still fell behind those of BAT’s. ByteDance continued to grab time share, which improved 70 bps in 19Q2, thanks to its addictive news and short video apps;
MAU and DAU of Alipay reached new high during Dec-Feb, thanks to the promotional activities launched surrounding Spring Festival. Even though number of users declined in Mar, user base showed an overall improvement throughout 19Q2;
eCommerce: 
Users on all mainstream eCommerce platforms increased in 19Q2, as consumers actively engaged in 6.18 Midyear Shopping Festival. Taobao’s user stickiness in Jun reached a new high thanks to daily promotional and broadcasting activities;
Social eCommerce platform Taojiii has been growing rapidly since launch in Aug last year. Beidian and Weidian were losing users on App end but gaining users in Weixin mini program during 19Q2. Yunji’s user base was on the decline;
Xiaohongshu continued to experience fast sequential growth in 19Q2, on both mobile App and mini program ends. However, it was removed from app stores at the end of Jul as a result of content incompliance, which may dampen its growth momentum;
Social Media: 
Both Weixin and Weibo’s MAUs experienced increases in 19Q2 while user base for Mobile QQ stayed unchanged. MAU on Weibo grew 4.2% M/M in Jun, partly due to the breakout of several trending news. Duoshan performed poorly since launch;
Digital Entertainment: 
Kugou’s user base continued to lead in music streaming and widened gap with QQ Music’s in 19Q2. NetEase Music has nearly caught up with Kuwo in terms of MAU;
Douyin continued to outpace short video competitors in 19Q2 in terms of user growth rate. Kuaishou is faced with tough competition in the journey to reach the 300 mln DAU target by Jan 2020. Baidu Haokan is losing growth momentum. Weishi experienced a user hike during Spring Festival promotion but remained an underdog in the space;
For long video, both iQIYI and Tencent Video saw users rise in 19Q2 and iQIYI remained ahead of Tencent Video with gap widening in Jun. Youku’s MAU increased notably in Jun with the launch of popular shows. All three platforms experienced weakened user stickiness in 19Q2. Mango TV continued to expand user base and improve user stickiness in 19Q2. Bilibili’s MAU declined slightly in 19Q2 as seasonality plays out more prominently with growth slowing down;
Travel: 
For OTA platforms, both Ctrip and Fliggy experienced some user decline in 19Q2 after the transportation service boom surrounding Spring Festival. Tongcheng-Elong remained the absolute leader on mini program end;
For self-owned hotel platforms, Huazhu’s user base widened gap with Homeinns in Jun and was almost twice the size of the latter’s;
News: 
Tencent News remained as the leader in terms of MAU, closely followed by Toutiao News. QTT’s MAU has lost growth momentum since Feb and further declined in Jun, indicating the company is under tough operating condition;
Mobile Games: 
Overall time spent on mobile games stayed largely unchanged in 19Q2, while uses slightly shifted gaming time from hardcore games to casual ones. In Jun, part of gaming time was shifted back from casual games to hardcore ones;
Most popular Tencent and NetEase games experienced user decline in 19Q2. MAU for PUBG Mobile declined notably in Jun with continued impact from version alteration. New titles from both companies, including Ancient Nocturne, Night Falls: Survival and MT4, quickly lost users after first several months within launch;
Education: 
For tool-oriented players, Zuoyebang’s active users kept climbing while those of its major competitors’ stayed largely unchanged;
Tool: 
Both WiFi Master Key (LinkSure) and Tencent WiFi Master experienced user increase in 19Q2, with the former’s monthly user base almost four times the size of the latter’s;
Cheetah Clean Master continued to capture the largest market share but lost users to 360 Clean Master in 19Q2;
For mapping service, Amap continued to widen user gap with Baidu in 19Q2 and enjoyed higher stickiness than the latter. Tencent Map remained an underdog in the field;
Verticals: 
In medical aesthetics, both So-Young and GengMei experienced user increases in 19Q2, with the former being the absolute leader. However, the scandal involving So-Young merchants in mid-Jul may partly offset the platform’s growth trend in coming months;
The sluggish automobile market led to user declines for most auto platforms. ATHM remained as the largest player, followed by BITA. Dongchedi lost growth momentum since Sept last year, due to a lack of high-quality contents;
Anjuke stayed as the largest real estate platform. Anjuke, Lianjia and Fang Tian Xia had relatively stable user base in 19Q2, while Beike users continued to decline, indicating Beike’s business model is yet to be proved;
Mini Program: 
Among Top 10 Weixin mini programs, 6 have presence in Weixin Pay Wallet. Xiao Nian Gao has been growing rapidly and amassed more than 166 mln Weixin users as of Jun 2019. JD also experienced substantial user growth in Jun as the company allocated more resources on mini program end during 6.18 promotion.

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