Electronic games are big business in China
December 5, 2017 Category IT & Telecom, Weekly
Electronic gaming is big business in China with its 600 million gamers, almost double the population of the United States, driving an industry worth USD24.6 billion annually. Gaming hardware suppliers such as Logitech are keen to tap into the massive market potential of a country where almost every other person plays a PC or mobile game. Known more for its computer mice and keyboards, the Swiss-based company doubled down on its gaming hardware business five years ago and today counts China as a key market for its Logitech G line of gaming accessories, according to Quin Liu, Vice President and Managing Director of Logitech in the Asia-Pacific region. In an interview with the South China Morning Post he pointed towards the League of Legends World 2017 finals in Beijing as an indicator of the industry’s rapid growth. Held in early November, the finals for China’s most popular PC game were held at the Beijing National Stadium or Bird’s Nest, with a maximum capacity of 91,000 spectators.
China’s obsession with e-sports has proven to be an opportunity for brands like Logitech and rival Razer to showcase their gaming accessories in front of the millions of Chinese gamers who watch e-sports competitions live or online. Logitech has sponsored professional gaming teams, including the winning South Korean team in the so-called World Cup tournament for the popular PC game Overwatch in November. The thinking behind the sponsorship strategy is that gamers will be eager to use the same gaming accessories that top e-sports teams use for tournaments. Hong Kong-listed Razer actively sponsors a top Chinese League of Legends gaming team and has engaged Hong Kong celebrities to help promote its products.
On JD.com, Logitech’s CNY399 G502 programmable gaming mouse is the top-selling product in its category. “If you don’t have this mouse, you can’t call yourself a gamer in China,” Logitech’s Liu said. “Three or four years ago the China market was more low end and price sensitive, but now that’s gone away,” he said, adding that gamers are now much more willing to spend on high-end accessories. For Logitech, gaming accessories account for almost 18% of its total sales globally, and is the third largest category behind its bread-and-butter business of PC mice and keyboards, according to its second quarter earnings report.
Razer, which has dual headquarters in San Francisco and Singapore, is also going head to head with Logitech when it comes to sales of gaming peripherals in China. During the Alibaba Singles’ Day shopping festival on November 11, Razer said it emerged as the top gaming peripherals brand in terms of sales, with Chinese consumers mostly snapping up its Deathadder mice series and Blackwidow gaming keyboards, the South China Morning Post reports.
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