Latest news with #AshleyDudarenok
CNBC
a day ago
- Entertainment
- CNBC
How China's $7 billion micro drama industry is taking on the U.S. entertainment industry
Micro dramas, known for wild plots and vertical, bite-sized videos, made headlines in China in 2024 as the industry surpassed the country's box-office revenue for the first time. The micro drama market exceeded 50 billion yuan, or about $6.9 billion, according to the China Netcasting Services Association, a state-controlled group that regulates China's online audiovisual content. "In the states, you have the soap opera 'The Bold and The Beautiful.' And it's 'The Bold and The Beautiful' on steroids, basically," said Anne Chan, founder and CEO of AR Asia Production. "You've got to have a cliffhanger at every minute versus every hour. So everything is sweet, short and sharp." Micro dramas, also known as in Chinese, typically consist of episodes ranging from 90 seconds to two minutes long. They initially gained popularity in China after capitalizing on the short-form video trend from other short-video apps in the country. "It all started with Douyin and also Kuaishou as they started pushing these vertical short dramas on their platforms," said Ashley Dudarenok, founder and managing director of Hong Kong-based consultant firm ChoZan. "Especially 2020, 2021, during the pandemic, dramas grew rapidly." Experts say micro dramas appeal to consumers with fast-paced, addictive storylines that deliver instant emotional payoff in just minutes. Their short, bingeable format caters to the attention spans of today's mobile-first audience, making them easy to watch anytime, anywhere. "They're tapping into the behavior of instant gratification," said Seema Shah, vice president of research and insights at market intelligence firm Sensor Tower. "The way that you immediately are satisfied by seeing this story is what is the hook. It's a little over the top, but it's over the top that is still entertaining." Micro dramas are also gaining popularity in the U.S. ReelShort, DramaBox and GoodShort were the top downloaded micro drama apps in the U.S., accounting for about 50% of downloads year to date in 2025, according to data shared with CNBC by Sensor Tower. "Many micro drama producers believe because America produced Hollywood and is probably the world's largest cultural export, if you can sell it to and make it appealing to the American public, you can then sell it and make it appealing to the rest of the world," said Dudarenok. Watch the video above to find out what is behind the popularity of China's micro dramas, and whether the nearly $7 billion industry can become China's next big cultural export to disrupt the U.S. entertainment industry.
Time Magazine
5 days ago
- Business
- Time Magazine
Target to End Price-Matching Policy Amid Business Challenges
For years, Target customers were able to get the lowest possible price through Target's policy of matching prices with its competitors. But that policy is coming to an end. The company told Bloomberg News that it will update the policy on July 28 and that the move is an effort to simplify Target's pricing strategy. Target will still match prices between its own online platform and retail stores, a company spokesperson added. TIME has reached out to Target for comment. Some customers have lamented the decision. 'I've gotten some crazy deals price matching to Amazon plus using my discounts. R.I.P. price matching,' wrote one Reddit user. 'Well I'll just buy less or buy it where it's cheaper,' wrote another. Ashley Dudarenok, who runs a China- and Hong Kong-based consumer research consultancy, said the decision 'eliminates a safety net for consumers' who could be sure that they were getting the most competitive prices at Target. 'For consumers, this means the onus is now on them to compare prices before shopping, potentially pushing the most price-sensitive shoppers to competitors like Walmart or Amazon for certain purchases.' Dudarenok says that Target is hoping its 'loyal customer base, often attracted by the in-store experience and exclusive brands (the 'Tar-jay' effect) will absorb this change.' But the move is risky, she adds, at a time when U.S. consumer spending is falling. Target has grappled with a slump in sales this year, with the company missing its Q1 revenue estimate and cutting its full-year sales outlook in May. Target CEO Brian Cornell said in an earnings call in May that U.S. tariffs were one factor in a number of 'massive potential costs' for the company. He also warned that price hikes could come as a 'very last resort' after earlier in March telling CNBC that certain goods will 'likely see price increases' for consumers. Target has also struggled with consumer boycotts following its decision on Jan. 24 to roll back its diversity, equity, and inclusion (DEI) policies. President Trump signed an executive order on Jan. 20 decrying DEI as 'illegal and immoral discrimination' and ending federal initiatives. The order does not force private employers to abolish DEI programs but opens up companies to anti-DEI backlash. 'The company is juggling significant financial pressures, including the looming threat of tariffs on Chinese goods, with the need to maintain customer loyalty,' Dudarenok says. 'Ending the price match policy is a defensive financial move. At the same time, the company is still navigating the fallout from its DEI initiatives, trying to find a neutral ground that doesn't alienate its diverse customer base.' Target's challenges date back several years. The company's annual revenue has stagnated since 2021, while its shares have fallen around 60% in that time.
CNBC
07-05-2025
- Business
- CNBC
CNBC's The China Connection newsletter: Tourism surge defies consumption slowdown
Tourists visit Pingyao Ancient City on the second day of the May labor day holiday on May 2, 2025 in Jinzhong, Shanxi province of China. This report is from this week's edition of CNBC's The China Connection newsletter, which brings you insights and analysis on what's driving the world's second-largest economy. Each week, we'll explore the biggest business stories in China, give a lowdown on market moves and help you set up for the week ahead. Like what you see? You can subscribe here. If people are spending in China, it's likely to be on travel — and businesses want a slice of that. After 10 years as the only hostel in China's Datong city, Fly by Knight suddenly gained six new competitors in one year, according to founder Daniel Huang. He said his 26-room venue was booked out for the May Labor Day holiday, which officially ran from Thursday to Monday. "Hotels are opening everywhere in Datong," he said, noting that one no-brand operator raised its prices for the holiday by more than five times to over 1,000 yuan ($140) a night. Surging interest in history and culture is helping. The popularity of Datong's Yungang Buddhist grottoes — a Unesco heritage site from around 1,500 years ago — skyrocketed after its statues were featured in the hit video game Black Myth: Wukong released last summer. More than 43,700 people visited the caves on May 1 alone, up over 10% from a year earlier, according to state media. The Grand Canyon averaged 13,477 visitors a day last year. The latest holiday shows young Chinese tourists remain very interested in museums and other cultural activities, said Ashley Dudarenok, founder of ChoZan, a China marketing consultancy. "What it means for international brands or local brands is that collaborating with those cultural icons is still a very, very important part of connecting with the consumer," she said. Nationwide, China reported 314 million domestic tourist trips over the May Labor Day holiday, continuing the steady increase in recent years and well above the pre-Covid level of 195 million in 2019. The government has extended the holiday in recent years, giving locals more time off as businesses typically offer employees only a handful of paid vacation days. China's recently built transportation infrastructure is encouraging locals to visit smaller cities such as Datong, Huang said. He pointed out that before the Covid-19 pandemic, travelers had to take a six-hour train from the capital city of Beijing to Datong. Now, a high-speed train between the cities (about $20 per one-way ticket) takes less than two hours, with dozens of departure times throughout the day. The train route opened in December 2019. Tourists in China have been turning to less popular, more remote destinations that tend to be cheaper than visiting large cities. During the latest May Labor Day holidays, trips to rural areas rose by nearly 20% from a year ago, with interest in farm-themed stays surging, according booking site Retail sales, including food, rose by 6.3% during the holiday from a year ago, according to official figures. Tourism revenue increased by 8% to 180.27 billion yuan. "Despite concerns over macroeconomic headwinds, the strength of travel numbers tells us that consumer sentiment is resilient," said Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies. The company helps foreign brands — such as Vitamix and IS Clinical — sell online in China and other parts of Asia. "Chinese consumers are prioritizing spending on what matters most to them -- and right now, that includes travel," he said. When Chinese consumers were asked where they expected to increase their spending this year, travel topped the list, followed by groceries, according to a survey conducted on behalf of financial services firm TD Cowen in February and published last month. However, in a sign of lingering uncertainty, fewer respondents than last year said they had made travel plans for the next six months. The survey covered 2,000 Chinese residents. Sales of retail goods have remained tepid since the Covid-19 pandemic, up by just 3.5% last year, according to official data. The services sector, including tourism, sports and childcare, has seen faster growth at 6.2% last year. China started reporting services retail sales on a year-to-date basis in July 2023. Chinese cities have meanwhile stepped up their efforts to attract tourists, whether through short videos on social media, virtual reality experiences or elaborate light shows splashed across skyscrapers. Some cities, such as the panda hub of Chengdu, are starting to use drones for delivering food within scenic parks, or renting out robotic-powered hiking support, Dudarenok pointed out. "We're going to see basically a lot of what the future of tourism is going to look like, and China is testing that massively over this May day holiday," she said, noting that places that have invested a lot are seeing robust tourist numbers. Chengdu, for instance, claimed a 6.2% year-on-year increase in tourist trips over the holiday to 15.52 million. That's nearly three-fourths of the city's population of 21.4 million, as of 2023. Social media influencers, as well as word-of-mouth comments about cleanliness and safety are also helping Chinese cities attract foreign travelers, Huang said. Huang said his hostel primarily served international visitors prior to Covid, and the share of foreign guests has recovered modestly to about one-fifth of customers. Local visitors tend to concentrate their travel during public holidays, while trips by foreign tourists are more spaced out, he said. China has expanded its visa-free policies in the last two years to attract foreign tourists. Citizens of the U.S., U.K., Canada and more than 50 other countries can now stay in China for 10 days without a visa, while people from Japan, South Korea and several European countries can visit for up to 30 days. Inbound travel to China around the May Labor Day holidays rose by more than 40% from last year, according to Hostel World. The data showed Chongqing, Yangshou and Guilin surged in popularity versus Beijing and Shanghai. The U.S. and China are finally going to talk on trade. It's not a presidential call, but both sides confirmed that Chinese Vice Premier He Lifeng, Beijing's top official for China-U.S. economic and trade matters, will meet with his U.S. counterparts while visiting Switzerland later this week. Ten people died after four tourist boats capsized in southwest China's Guizhou province. Vice Premier Zhang Guoqing on Monday visited the site of the accident, which state media attributed to "sudden strong winds." China's National Health Commission is investigating a hospital scandal. The probe, involving a senior physician at a prestigious hospital in Beijing, stirred discussion on Chinese social media about the potential role of connections in obtaining highly sought-after healthcare positions. Alibaba's Taobao e-commerce site has joined the on-demand delivery fray. The company is rolling out same-day delivery of food, clothing and other products, just days after and food delivery company Meituan ramped up their competition in the space. Taobao claimed it received more than 10 million orders in one day. Chinese and Hong Kong stocks climbed Wednesday after the People's Bank of China and financial regulators announced sweeping plans to cut key interest rates as they strive to shore up growth. China will cut the seven-day reverse repurchase rates by 10 basis points to 1.4% from 1.5%. The central bank will also lower the reserve requirement ratio by 50 basis points. Mainland China's CSI 300 was up 0.44% while Hong Kong's Hang Seng Index — which includes major Chinese companies — rose 1.5% as of 10:30 a.m. local time. The CSI 300 has lost roughly 2.8% while the Hang Seng Index has gained over 14.6% so far this year. The benchmark 10-year Chinese government bond yield was slightly down at 1.63%. The offshore Chinese yuan strengthened 0.18% against the greenback to 7.2227. Stock chart icon The performance of the Shanghai Composite over the past year. May 7-10: President Xi Jinping pays a state visit to Russia May 9: China's import and export data for April May 10: China's consumer price index and producer price index for April
