How marketing helped Chinese apps and games to expand overseas

Chinese-developed mobile apps are increasingly gaining global market share. Think TikTok, Shein, and Temu to name just a few. Last year, the top-grossing apps globally were Chinese-developed, including TikTok, Honor of Kings, Genshin Impact, and PUBG Mobile, earning over US$1 billion in revenue.

The growth of Chinese apps overseas is particularly noticeable in the gaming sector. In fact, 31% of global mobile gaming revenue is from China, which is expected to top US$39.6 billion globally by 2027.

"China’s gaming companies are increasingly thriving in international markets due to a few factors, including agility and innovation, their ability to refine products in the domestic market before hitting global stores, and their focus on personalised user experience," says Vincent Fan, global sales director at Mintegral, part of Mobvista.

Today, Chinese app developers are increasingly developing apps with a global audience in mind. This contrasts the traditional approach in the past of measuring app performance solely in its home market. 

Marketing plays a key role in achieving this global expansion, and it's anticipated that global spending by Chinese companies on international marketing efforts will exceed US$50 billion by 2025.

One recent success story is the Chinese game Black Myth: Wukong. Inspired by the classical Chinese novel Journey to the West, the game was released this summer and sold more than 10 million copies within three days, becoming the most successful Chinese game of all time.

"From a marketing perspective, Black Myth: Wukong's success is largely due to its strategic blend of organic content, influencer interest, and a robust media strategy," says Philip Driver, CEO of The Game Marketer. "It’s easy to forget that the initial gameplay footage reveal was back in 2020, which amassed millions of views in both China and the West. So, while it may feel like an overnight success the momentum has actually been building for several years. This is something we tell our clients constantly; you can never start marketing too early."

 

A key factor in the game's success was the early release of its viral demo, which played a critical role in building early momentum. The success of the demo generated significant hype and media coverage well before the game's official launch.

Arthur O'Neill, worldwide head of invention at Mindshare, the agency responsible for the game's media promotion and content distribution, says that the overall marketing strategy has been intelligent from day dot.

"They seeded the game four years ago, and released a bit more every year, creating big anticipation amongst gamers and in the industry,” he says. “And as launch day came, we embraced an approach that was global but still aimed at the right audience, at the right time, with the right media. The combination of both the earned conversation fuelled throughout, and the paid drive this year has undoubtedly been a driver for the visibility, and consequently the success of the game."

The success of Black Myth wasn’t just a stroke of luck. The game's developer and publisher, Game Science, hit all the right notes, from timing and talent acquisition to engaging the gaming community at critical points. 

"In the case of Black Myth, we went into the depth of understanding not only our audience’s gaming behaviour such as what platform do they stream on or what console do they use most. We also [delved into] their motivation and attitude behind why they use certain platform and touch points," says O'Neill. "It means we can find the unique point of difference in each market and adapt how we might reach them or tailor our messaging."

Black Myth: Wukong is unlikely to be a one-off. Its success is part of a larger trend of Chinese games gaining global traction.

"This game has proven that the global market is eager for diverse narratives and are rejecting bland sequels, and Chinese developers are well-positioned to take advantage of this trend," says Driver. “China could quite easily rival Japan and the US in terms of creative output as the market is hungry for fresh ideas."

China's ecommerce titans are overtaking global rivals

Chinese ecommerce platforms such as Shein, Temu and TikTok Shop have also rapidly scaled globally by combining competitive pricing strategies with advanced marketing tactics.

"Offering aggressive pricing and discounts has been a key driver of user acquisition, allowing these companies to expand quickly by attracting price-sensitive customers," says Fan. 

However, their success goes beyond pricing strategies alone. Chinese ecommerce apps have also very effectively leveraged localised strategies, influencer marketing and targeted ads. 

"Chinese ecommerce brands see the importance of localising their marketing strategy, and coupled with data-driven insights, targeted ads and influencer partnerships, these platforms have managed to successfully globally grow their presence and customer base within a short period," adds Fan. 

Marketers can learn several important lessons from the approaches of Shein, Temu, and TikTok Shop. To begin with, fast-fashion retailer Shein illustrates the power of social commerce and the critical importance of knowing your audience. 

"From the start, Shein recognised Gen Z as a key segment and by engaging them on platforms they actively use—primarily through influencer marketing and micro-targeting—was able to convert social interactions directly into sales," says Ivy Yang, founder, Wavelet Strategy. "What stands out is their ability to meet consumers where they are, create engagement, and react in real-time to trends through fast iterations of designs. It’s a reminder that today’s consumer expects brands to be present, relevant, and responsive at all times."

Meanwhile, Temu teaches us the importance of bold, high-visibility moves, such as its decision to invest heavily in a Super Bowl ad [see below]. This was a high-risk, high-reward strategy that generated immediate exposure and made Temu a recognisable name across various demographics in a very short time.

 

"Initially, I had doubts about the ROI of such a large investment and whether it’d be worth it," says Yang. "But in hindsight, the share of mind Temu captured was impressive—it got people curious the first time, and the second time around, the ads solidified Temu as the low-cost alternative to incumbent ecommerce platforms. This shows that sometimes, taking a calculated risk can significantly boost visibility when entering a competitive market as the new kid on the block."

 

Finally, TikTok Shop provides an example of how to combine commerce and content. TikTok has tapped into the phenomenon of impulse-buying by integrating the shopping experience right into its social-media app, thereby streamlining the process from content consumption to purchase. Reduced barriers to engagement and conversion can help marketers enhance user experiences.

However, Yang says that while all three companies have excelled at rapid scaling, they could benefit from a more long-term view: "Many of their strategies focus on short-term wins, and as they grow, the real challenge will be building sustainable business models that go beyond the initial hype and neck-breaking speed of growth."

Advertising platforms are fuelling global growth

Another component in the successful global growth of Chinese apps and games has been advertising service providers. Offering advanced programmatic advertising solutions that connect advertisers with a wide audience, these providers leverage deep learning and machine-learning algorithms to deliver precise ad targeting while optimising ad delivery and acquisition costs.

One example is Shanghai-based Bilibili, a user-generated video platform, similar to YouTube, which wanted to improve its ability to monetise its user base and expand its reach in Southeast Asia.

"Its marketing team had previously struggled to monetise users in the region and was exploring tools and marketing strategies that would grow the platform’s presence in the SEA market effectively," says Fan. 

Adtech platforms, like Mintegral, opened up access to premium traffic sources based on precise user profiles and aided in implementing hybrid bidding models (through in-app and waterfall bidding) that optimised its ad revenue and contributed to approximately 15-20% of Bilibili’s total revenue in 2023.

"As Chinese companies are looking to expand further into international markets, regardless of their industries, it is through automating and scaling their ad-buying process that allows them to seamlessly reach and engage with a global audience," says Fan. 

 

A tool for propaganda and surveillance?

 

Yet, while Chinese apps and games have witnessed impressive global growth in recent years, a study from the The Australian Strategic Policy Institute, warns that China is increasingly using its globally popular apps and games for propaganda.

 

In a report published in May, the institute claims that Chinese tech companies are forming partnerships with Beijing's propaganda leaders in order to obtain personal data from popular apps, games and a variety of social media platforms. These include Temu, the popular online marketplace,  the ride-sharing app DiDi, and the action game Genshin Impact. 

 

The Australian study claims that China’s ambition is to harvest “strategically valuable” data from media, gaming, artificial intelligence and other emerging technologies.

 

It states that China is “working to extend its influence abroad to reshape the global information ecosystem … to strengthen its grip on power, legitimise its activities and bolster China’s cultural, technological, economic and military influence.”

 

Australia announced last year that it will outlaw TikTok on government devices, such as smartphones, due to concerns about security and monitoring. In the US, the video app is facing a potential ban unless it is sold by its Chinese parent company ByteDance. Lawmakers in the US  fear the Chinese government could force ByteDance to hand over data about TikTok's 170 million US users. Yet TikTok has insisted it would not provide foreign user data to the Chinese government. 

 

Last year, TikTok CEO Shou Zi Chew testified that the app has never and would never share data about its American users to the Chinese government. "TikTok has never shared, or received a request to share, US user data with the Chinese government. Nor would TikTok honor such a request if one were ever made," he said.  

 

One of TikTok's biggest markets before it was banned in June 2020 was India, where TikTok is already prohibited. It is blocked in Hong Kong, Nepal, Afghanistan, Somalia and Iran. In 2023, the European Commission and the UK government both outlawed TikTok on employee work devices.

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