The Week’s Update In China

Alibaba goes after JD’s direct retail model with new e-commerce app:

It is establishing a new online platform that will follow the direct sales strategy of rival JD’s. Maoxiang, the new platform’s name, will first focus on consumer electronics.

Why it matters: 

Alibaba is trying out different models to boost business growth amid weakening consumer spending, intensifying competition, and tightening regulations. 

Details: 

Maoxiang will adopt a direct retail model. The online platform can sell branded merchandise directly to consumers, having more control over sourcing, quality, storage, delivery, and after-sales.

For starters, the platform will focus on selling consumer electronics products, big-ticket items that JD also focused on during its early days. SF Express and Danniao Logistics are possible couriers for the service to ensure next-day doorstep delivery.

Link: https://technode.com/2022/02/18/alibaba-goes-after-jds-direct-retail-model-with-new-e-commerce-app/

Chinese otome games mark Valentine’s Day with fresh female content

Chinese female-oriented online games released new content to celebrate Valentine’s Day and attract new players. 

Why it matters: 

Otome (Japanese for “maiden”) games are primarily role-playing games aimed at female gamers (RPG). These online games pander to the emotional demands of female gamers by giving a variety of love fantasies. For these game designers, Valentine’s Day has become the most popular annual event.

Details: 

Eight out of the top 10 otome games listed on TapTap, a game review platform and player community, released special content for Valentine’s Day.

For example, I Should Be a Rich Lady, the most downloaded otome game in Apple’s Chinese app store, unveiled Valentine’s Day contest on Feb. 10. Players are asked to vote for their favourite romantic characters. The game maker, Tomato Games, produced customized stickers for the winning character based on the votes. The game’s app ranks fourth overall in Apple’s RPG category.

Mr Love: Queen’s Choice, produced by Papergames, also released an update, adding more holiday plots and scenes. Players have the chance to win cash and other game content rewards  (in Chinese) during the time-limited update.

Link: https://technode.com/2022/02/14/chinese-otome-mobile-games-mark-valentines-day-with-fresh-female-content-mr-love/

How fashion can leverage blind box marketing in China

Blind boxes have grown into a massive industry that is expected to be worth 30 billion yuan ($4.6 billion) by 2024. Many Chinese consumers enjoy unexpected content, which fashion firms may use to create interesting narratives.

The problem is figuring out how to make blind box marketing work for fashion and luxury firms. Lanvin, which developed a blind box lottery on its Wechat mini programme for Chinese Valentine’s Day in August, is one luxury brand that has previously tried the waters.

Lanvin, a Chinese company controlled by Fosun International, set a low threshold for entrance into their Chinese Valentine’s Day lottery last August. To participate, participants simply had to pay 200 yuan. Team or group games might be played, garnering 50,000 players in a month and five-folding Lanvin’s Wechat views.

Link: https://www.voguebusiness.com/consumers/how-fashion-can-leverage-blind-box-marketing-in-china

Beauty in 2021: Trends, Observations, and KOL+KOC Marketing

Competition between domestic brands, both old and new, is increasing, as is competition between domestic brands and foreign brands. Limited collections and interesting brand ambassadors are used by brands to captivate consumers.

Men’s make-up, body care, and other beauty and skincare categories grew by triple digits, with male perfume consumption increasing threefold in four years.

Link: https://mp.weixin.qq.com/s/BXK4dLCsxNdAI9imxLj0LA  

Why do more and more brands choose Dewu(得物)?

The ranking of Dewu in the IOS app store has been in the top 10 of the app store for a long time. Judging from the IOS store rankings and the average daily downloads of more than 100000 users, Dewu has now become a “platform level” product. More and more brands and service providers have begun to invest Dewu.

At present, more than 5000 brands have settled in, mostly fashion wear” brands and high-end brands, such as sports brands Adidas, luxury brands ascoach, Michael Kors, Armani, and so on.

The reason why  high-end brands choose Dewu is mainly due to the following two points:

  1. The user group and consumer demand are expanding.
    The consumer demand of users grows as user groups expand: some guys are interested in shoes, watches, accessories, and men’s apparel; girls require women’s clothing, beauty makeup, and skincare goods, among other things. There is space for brand development due to consumer demand.

    At the same time, the “post-90s” account for more than 80% of property users, according to the most recent government statistics. Young people are the target audience for high-end brands.

  2. Second, the content community system is also good for the brand.
    The platform will guide customers to consistently develop high-quality content in Dewu’s content community system. When producing news on Dewu, for example, the platform will provide “high-quality strategic advice” to help people write high-quality news.

    Dewu’s current content community, like Xiaohongshu’s, is in UGC mode, with many KOL and MCN institutions settling in. According to official public data, Dewu collaborated with approximately 100 MCN institutions in the first half of 2021.

Link: https://mp.weixin.qq.com/s/0xP54EO37NE3K3kUPW7hEQ

Advertising on RED/XiaoHongshu

Xiaohongshu, also simply called RED, is one of the fastest-growing smart social commerce apps on the market, with over 100 million monthly active users. RED provides multinational brands with enormous opportunities to maximize their potential and establish a strong presence in China. It’s for this reason that famous brands like Louis Vuitton and YSL are clamoring to advertise on the site. If you are not convinced yet check our previous post 5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account

In the ever-changing digital landscape, it’s a must-have Chinese marketing channel for beauty, lifestyle, and fashion brands. 

RED helps marketers to engage and sell to their target market by utilizing a filtering algorithm that tailors material to users’ likes, which is one of the most significant advantages.

The most effective strategy to reach users is to advertise in the app’s newsfeed. User-friendly and authentic material with clear reasons to interact is preferable. We recommend to use a mix of multimedia with enticing descriptions with hashtags to cover a variety of views depending on the objectives and industry subjects. 

One of the key ways to gather popularity on RED is of course collaboration with KOLs and KOC ​​which we will cover in our next posts.  

Who are Chinese influencers: KOL and KOCs? 

Today, we will focus on how you can advertise using RED’s native media buy system.

While advertising on the platform is certainly beneficial to your business, navigating XiaoHongshu’s merchant setup can be tricky. There’s a lot to consider, and there’s not a lot of help available. Here’s all you need to know about selling on XiaoHongshu without the hassle!

Step 1: Create an account on RED / XiaoHongshu

To begin, you must first create an account on XiaoHongshu’s enterprise system. If you’re an incorporated business with your own email account, this should be pretty simple.

Step 2: Provide information about your business

After you’ve created an account, you’ll need to fill out the following information:

  • Company information and qualification: like your contact information, location, the origin of your goods, trading model (cross-border or general commerce), and business type. Also, include a Chinese business license or letter verifying your right to sell in China and proof of incorporation.
  • Financial information: your bank details, account number, billing currency, and sort code
  • Brand information and qualification: adding your brand name, description, and photos, as well as whether you’re a single or a multi-brand company. Also, I Include trademark certificates, permission to resell other brands (if applicable), and authorization to sell under your own brand.

Step 3: Review of qualifications on RED

After you submit the above information, XiaoHongshu will review your application and determine whether you are eligible to sell on their site. If all of the information you supplied is correct, you can complete it as soon as one week after your submission.

Step 4: Fill out the contract

When RED approves your application, you’ll receive both a digital contract to sign through email and a physical contract to return by mail. Read these over with a lawyer and sign them as soon as possible if you wish to move further.

Step 5: Take up the XiaoHongshu training

The completion of XiaoHongshu’s online training program is the final stage in the application procedure.

This section contains all you need to know about selling on the platform, and you won’t be able to start your store until you finish it. Set aside some time to concentrate on this – it will benefit you greatly in the long run.

Time taken to register: The length of time it takes to register is mostly determined by how quickly you can complete all of the paperwork, complete your company introduction, submit photographs, and so on.

If you do everything correctly from the start, you can administer the application in one week.

Costs included: Deposits and operating fees are included in the cost of selling on the platform. Deposits vary depending on your company’s “characteristics,” your qualifications, and the type of store you intend to open.

The deposit is usually RMB 20,000 and is returned three months after the store is closed.

Conclusion

Xiaohongshu’s unique stance as a trustworthy, celebrity-approved distributor of international products is an ideal route for businesses. Especially for ones looking to leverage the social commerce trend as part of the e-commerce revolution for purchasing superior products.

However, marketing in China is never simple. There are language barriers to overcome, rules to follow, and high costs to consider. All of that makes starting all too risky.  

That is why at KRDS, we commit to assisting businesses to achieve marketing success in China. If you require further support with setting up your account, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account?

China is one of the world’s largest e-commerce markets, with a myriad of marketplaces to choose from. Taobao, Tmall, JD, and Pinduoduo have drawn millions of shoppers to become frequent buyers over the last decade. 

Social media has substantially impacted the way Chinese consumers shop online, in tandem with a tremendous increase in mobile phone usage. Especially those born in the mid-to-late-nineties, Chinese Gen Z also called the post-90s generation, are pioneering new trends.

That’s where XiaoHongshu comes in: a well-known “lifestyle” UGC and review app that’s taken the e-commerce world by storm. You can find the introduction to RED we covered before here – A Quick Guide to Xiaohongshu (Little Red Book) Marketing

XiaoHongshu, or RED, is a combination of beauty, lifestyle, and fashion app in one that allows users to share their personal style while also discovering new goods from around the world. It is the Chinese equivalent of Instagram on steroids, and it’s a great way to read product reviews, share daily outfits, get fashion advice, and find high-quality businesses and all of this with just one click to buy the products mentioned in the article. This is especially relevant for relatively unknown, small luxury brands since beauty enthusiasts in China love to search for new labels and one of the industries that enjoyed this trend are niche perfumes – The Accelerating Growth of Niche Perfume Brands in China.

Why Should International Brands Leverage the Platform?

XiaoHongshu provides a variety of free and paid ways for businesses to advertise their brand to their user base. Some of them include:

Reason 1: Brand accounts

On XiaoHongshu, brand accounts are one of the most effective ways to interact with the community. They can send ‘notes’ to fans, add photographs and videos, sell their own items, and answer fan reviews and comments.

A brand account on XiaoHongshu with the correct strategy and content in place might quickly build attention on the platform, especially if your notes are added to the ‘boards’ of popular influencers.

Reason 2: 100 Monthly Active Users

XiaoHongshu has over 100 million monthly active users with 70% female and almost 40% users being between 25 and 34 years old. If you are a beauty, fashion, or lifestyle brand targeting Chinese gen Z that’s the platform to be. 

Content Promotion Model

Reason 3: ‘Key Opinion Leaders,’ or influencers

Xiaohongshu developed as a review platform and grassroots content is still dominating. Influencers and key opinion leaders (KOLs) are critical to establishing traction on XiaoHongshu and are perhaps the most powerful type of advertising available.

The XiaoHongshu ‘Influencer Platform,’ a database with roughly 6,000 influencers, is designed to match you with individuals who are most relevant to your speciality and budget.

Who are Chinese influencers: KOL and KOCs?

Reason 4: XiaoHongshu advertising 

XiaoHongshu also offers traditional advertising in the form of ‘pop-up’ ads that display when the app is used and promotional messages that are organically incorporated inside the platform’s ‘explore’ feed, in addition to organic opportunities and influencer marketing.

Develop content for the most important Chinese e-commerce festivals to catch the attention of Chinese users. Check out how to advertise on the platform in our article – Advertising on RED.

Overseas Shopping

Reason 5: Crossborder e-commerce

Xiaohongshu offers cross-border e-commerce business for brands based outside of China and wishes to target and sell to the Chinese market. Because of its business model, RED takes care of the warehouse and logistics within China making it easier for foreign brands to operate.

Find out more about cross-border e-commerce in China

 

How to Set Up an Account on RED/Xiaohongshu?

Setting up accounts on WeChat and XiaoHongshu is frequently done in conjunction and is substantially less expensive than selling on Tmall.

Step 1: On RED, there are over 20,000 brand community accounts. Nearly 10,000 third-party e-commerce merchants use the network, which offers over 100,000 distinct products. As a result, the most vital initial step is to create an account.

Step 2: After you’ve created an account on RED with a Chinese phone number (you can also create an account with an international phone number, but your app’s functionality would be limited), the next step is to see if you can use their in-app e-commerce option. 

Requirements for setting up an account

Your company must have a business registration in China in order to use this function. One of RED’s biggest advantages as a social commerce platform is that it has its own store where users can make purchases directly from the app. Many brands benefit from this closed-circuit integration since it allows them to sell their products more easily.

The main documents required to open a XiaoHongshu account are:

  • Papers for registering a business
  • Incorporation certificate
  • Form for customs registration

You’ll also need to submit the following supporting papers.

  • Information about the company 
  • Logistics commitment letter 
  • Authorization letter for store operations 
  • Brand information Application form 
  • Authorization form Trademark authorization

Conclusion

Xiaohongshu is an amazing platform where lifestyle brands can advertise things such as fashion, cosmetics, nutrition meals, accessories, and brands that are popular with young female shoppers. Hence, If you want to reach Chinese young female consumers, XiaoHongshu should be a big component of your strategy.

More than just another e-commerce marketplace; it’s a lifestyle community where users and influencers share photos, videos, and information about things they’ve used.

That is why at KRDS, we are committed to assisting businesses to achieve marketing success in China. If you require further support with setting up your account, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

China’s Latest Updates 

China’s first virtual magazine: a read in the Metaverse

Huasheng Media and Alimama have joined the newest Metaverse campaign in China. On February 9th, the two partners released MO Magazine, a virtual magazine that replaces traditional reading experiences with an immersive virtual reality environment.

This new medium is led by Ayayi, one of China’s most popular virtual KOLs, and Jing Boran, a Chinese actress, giving both hit figures even more clout in China while tapping into the need for Metaverse.

The digital area offers a futuristic sci-fi atmosphere in which spectators can learn about human civilisation in a digital museum that also includes an audio narrative about the earth’s evolution. This makes reading more engaging because viewers are not only players but also builders of the digital world, with the ability to contribute to the virtual “human evolution.”

Meanwhile, 88% of readers who completed the virtual reading were given a Metaverse Spaceship ticket, according to reports. In just two days, the virtual magazine has received over 400,000 views, with interest building when hashtags related to the launch of the magazine began trending on Weibo, attracting millions of views on the microblogging site.

Link: https://daoinsights.com/news/chinas-first-virtual-magazine-a-read-in-the-metaverse/ 

Shanghai Bans Effeminate Men, Money Worship in Commercial Ads

Shanghai’s market regulator released a new advertising rule on Wednesday, barring the representation of male characters in romantic relationships, effeminate men, and philosophies like money worship in commercials, among other things.

Advertisements are also barred from promoting ideologies such as “money worship, hedonism, extravagance, and soft pornography.” Also, to ensure that their communication is up to date, brands must be informed of new national and city-level legislation.

Link: https://www.sixthtone.com/news/1009633/shanghai-bans-effeminate-men%2C-money-worship-in-commercial-ads 

Alibaba: Consumption Trends for the Lunar Year of the Tiger

According to the short report, the event boosted ice and snow consumption when it coincided with the Olympic Games: over 1 million people visited the Olympic Games’ Tmall shop, and the mascot Bingdundun was sold out in one night.

In addition, there was a large increase in the sale of ski and ice sports equipment.

The festival became digital, ushering in a slew of new trends: Tiger-themed goods, such as backpacks, t-shirts, and caps, are quite popular. The search rate has climbed to 874%, while the number of people purchasing pre-cooked meals has increased by 345% via the Hema app.

Link: https://mp.weixin.qq.com/s/ZDzU2v1WeV7I42LkDeFSUg

WeChat: Keywords About the Lunar New Year of the Tiger

  • Over 5 billion WeChat hongbao with designed covers have been sent during the CNY, the total number of WeChat hongbao covers was 380 million.
  • The take out food order increased 13.8% compared to last year on New Year’s Eve and over 120 million people watched the Spring Festival Gala on WeChat Channels
  • The top 5 video themes on Moments were: fireworks, family reunion dinner, new year wishes, festival mood and count down
  • The Tiger welcome a new year was the top 1 WeChat status sticker 
  • Over 16 million coupons (over 800 million RMB) have been sent via WeChat pay and low carbon travel with Paperless boarding increased to about 82.3%

Link: https://mp.weixin.qq.com/s/FmxWAT-R8no-Gy-PxoL-9w

100 Keywords Forecast 2022

On January 27, 2022, Wunderman Thompson, a brand of WPP, released the future 100:2022 – trends and changes to watch in 2022.

This analysis projects 100 developing trends in ten categories in 2022, using 100 keywords: “culture,” “technology and innovation,” “tourism and vacation,” “brand and marketing,” “food and beverage,” “beauty,” “retail and business,” “new luxury life,” “health,” and “work.”

Brand and marketing 10 keywords:

Brandalism: In recent years, the advertising business has made significant attempts to achieve carbon net zero in its own operations. Activists argue that this isn’t enough and that the efforts pale in comparison to the carbon footprints of some of the advertising industry’s biggest clients.

“No matter how good the idea is, as long as it is to promote high-carbon products, provide misleading green packaging for oil companies, or use high-energy advertising screens, it is a kind of pollution and bad advertising.”

Co-creative platforms: The next generation of digital platforms puts the user in charge of their own creativity.

The new digital platform gives users more creative control, allowing them to take more initiative. They are a new set of creative people who meticulously develop virtual imagery, human designs, and self-expression.

Superfollowers: New in-app subscriptions on social platforms are allowing digital creators to monetize their work.

In terms of media content, social platforms are expanding to provide more than just amusement. Enhanced features and incentives to attract, gain, and keep a large following are fueling innovation and enriching social media dialogues for both producers and consumers.

Twitter, for example, allows authors to earn $2 to $10 per month by tweeting to their super fans; Twitter is also exploring business accounts to provide companies with special settings to display relevant information.

Branded virtual worlds: Gaming is increasingly displacing traditional advertising mediums, particularly among younger people.

As firms and marketers enter into this burgeoning field, expect to see more branded virtual worlds.

Allow users to compete in the virtual arena while wearing Nike apparel and equipment. P&G invites visitors to a virtual world where they may learn about the company’s product line, play games, and learn; BMW has established a virtual world that includes the IAA mobile 2021 International Auto Show and an exclusive Coldplay concert.

Users may learn about products, shop, and even watch movies in the virtual world thanks to SK-virtual II’s metropolis.

Euphoric ads: In brand advertising and engagement, happy moments are keeping spirits up.

Consumers value themes of optimism and unity, and businesses that emphasise these communal characteristics generate favourable responses from customers and increase involvement inside their branded communities.

Headless brands: A new wave of consumption creation is changing from the company’s control of the brand to the collective decision of brand, products and services

Regenerative brands: Across industries, more brands are stepping up to commit to regenerative practices, supercharging their sustainability goals.

Brands are acknowledging that doing less harm to the planet is no longer enough. Regenerating the world’s resources and repairing the damage is now the ultimate sustainability stretch goal.

New company manifestos: To stay culturally relevant and engage with today’s employees, companies are altering their internal brand messaging.

Companies are undergoing a rebranding process that aims to modernise internal rules to match today’s needs and prioritise employees. The move implies a new degree of regard for employee happiness and well-being, which necessitates a new level of understanding and empathy on the part of employers.

Dreamvertising: Brands and advertisers are looking to guide our dreams. 

77% of US marketers say they plan to use dream tech for advertising purposes in the next three years.

Augmented ads: With augmented reality, brands are taking their digital advertising to the next level.

AR ads are ushering in a new era of digital marketing and advertising—ads that people want to interact with.

To entice digital consumers, major brands are embracing augmented reality technologies to boost their digital advertising.

Link: https://www.oceanskycruises.com/sites/default/files/2022-01/The-Future-100-2022.pdf

Weekly Learnings From China

China introduces state-backed NFT platform unlinked to cryptocurrencies

China’s state-backed Blockchain Services Network (BSN) has announced the soft launch of a nationwide infrastructure to support Chinese non-fungible tokens (NFTs), marking a significant step toward the development of a domestic industry separate from the global market and unrelated to cryptocurrencies.

The BSN-Distributed Digital Certificates (BSN-DDC) infrastructure, according to BSN, would provide enterprises with “a varied, transparent, credible, and reliable” one-stop-shop for minting and managing their own NFTs without relying on cryptocurrencies, which are prohibited in China. The Ethereum blockchain is used by the majority of NFTs throughout the world.

BSN is backed by China Mobile, a state-owned telecommunications company, China UnionPay, and the State Information Centre, which is a government think tank. The blockchain unit of accounting company Ernst & Young, Digital Art Fair Asia, and the Hainan International Culture and Artworks Exchange Centre are among the 26 founding partners.

Because public blockchains are decentralised platforms, they are prohibited in China, where the government mandates that all internet services verify user identities and allow regulators to intervene if unlawful actions occur. To address this issue, BSN turned to an altered version of blockchain known as the open permissioned blockchain (OPB), which can be regulated by a selected group.

Minting fees, which can only be paid in fiat money, can be as low as 0.05 yuan (0.7 US cents) – a fraction of what they are on public networks. While NFTs are currently mostly utilised for certifying digital artworks, the largest market for accreditations such as car number plates would be management. The automobile owner, government, and insurer would all have controlled access to data including mileage, engine number, and repair history, with each party being aware of the rights of the others.

Link: https://www.scmp.com/tech/tech-trends/article/3164681/china-introduces-state-backed-nft-platform-unlinked 

Can overseas luxury brands incorporate guochao? 

Many luxury brands have collaborated with contemporary Japanese artists throughout the years, including Yayoi Kusama for Louis Vuitton and Veuve Clicquot, Takashi Murakami for Louis Vuitton, and Hublot for Hublot (all belonging to LVMH). Because Japan was the world’s largest individual consumer market for luxury goods until 2016, luxury houses concentrated their efforts there.

Luxury labels have created capsule collections for Chinese holidays such as the Lunar New Year, QiXi – Chinese Valentine’s Day, 520, and 11.11 Singles Day in recent years, as the tide has turned and the spotlight has shifted away from Japan and towards China.

Guochao 国潮 literally means national tide. This trend has been fueled mostly by the younger generation’s pride in domestic companies, designers, and artists. As a result, it’s remarkable that, in the two years since the trend began, European luxury and fashion businesses have been sluggish to adopt similar techniques to those employed in Japan.

Link: https://daoinsights.com/opinions/will-european-luxury-brands-incorporate-guochao-the-same-way-they-did-with-japanese-pop-culture/

ByteDance Debuts in the Metaverse With New Social App

TikTok’s owner, ByteDance, is testing its first metaverse social app called Party Island. The social network app creates a parallel online universe, where people can meet up, chat and join events in real-time, but through avatars instead of in the real world.

Party Island supports the same login method as Douyin (China’s TikTok) through a mobile phone number. Since it is currently in the testing stage, an invitation code is required to enter the platform.

Link: https://jingdaily.com/bytedance-metaverse-social-app/

The sports marketing market will become the leading force in 2022

The brand’s most crucial marketing direction is global sports competitiveness. It is the enterprise’s main appeal, especially in the aftermath of the epidemic, to promote the brand concept through events and communicate successfully with followers.

Brands must plan ahead and implement more targeted strategic deployments based on current marketing and consumption trends.

Tiktok has naturally created a global community and captured the attention of followers by offering engaging and educational material.

More brands are projected to enter the sponsorship market, energise communities associated to specific partnerships, or use the influence of sports or celebrities to raise public awareness, build trust, and fulfil commitments in order to create conditions for their products, services, and values.

Driven by sports competitions and social media, athlete marketing is further rising. These star athletes are younger than ever, and they reflect the core values of their respective fan groups.

Link: https://www.digitaling.com/articles/696723.html

Xiaohongshu-Snowflakes NFT is coming

Xiaohongshu asked world champions, sportsmen, and artists to produce 96 various design digital NFT of snowflakes during the ice and snow activities of this winter Olympic Games. Each work is limited to 1000 copies and is digitally certified with a unique hash value for each copy.

From February 4 to 20, look for “snowflake” in the small red book and go to the activity page. After that, complete a task to obtain one snowflake fragment, and five fragments can get an NFT snowflake at random.

Each snowflake is unique in its ingenuity. Each designer incorporates their individual professional traits into the snowflakes.

According to Wu Minxia, a diving champion, the six-petaled snowflakes and the surrounding splashes combine to create this remarkable snowflake.

Artists, illustrators, craftspeople, and other works ought to be recognised as well.

Jijiukiyoe, a Beijing-based artist, excels at Japanese ukiyo illustration and incorporates classic Japanese ukiyo themes with contemporary popular culture. He used the classic pattern “tiger, dragon, and Eagle,” presenting the snowflake pattern with oriental charm and blended the ancient blue and white porcelain pattern with the modern traditional tattoo style.

In addition to collecting snowflake digital NFT collections, the little red book has many surprises around the ice and snow event. Since January this year, many ice and snow athletes have settled in xiaohongshu. On the special page of xiaohongshu events, users can see the real-time medal and schedule information, live broadcast and obtain event information such as gold medal-winning and record-breaking. Many users also released notes to discuss the brand of clothing of each team at the opening ceremony. 

Link: https://mp.weixin.qq.com/s/hQaKlQJvBvWc6YmAcsxidQ

Cross Border E-Commerce in China

China’s cross-border e-commerce has drastically matured in recent years. Thanks to the steady increase in industry size, greater integration of supply chain processes, progressive transition to more refined operation, and continued penetration of innovation models, the industry has boomed significantly. 

The import and export trade has existed since the dawn of time, yet despite the Covid-pandemic, the numbers are on the rise. The widespread adoption of online consumption patterns has fuelled the rapid growth of worldwide e-commerce. This has resulted in a steady increase in penetration and sales.  

According to eMarketer, China’s cross-border e-commerce became a new economic accelerator in China, as well as a hot investment and financing area in the capital market, thanks to its solid advantages in high cost-to-performance and high efficiency.

Cross Border E-commerce: What Is It?

Any international sale of a product or service between two parties on an online marketplace platform is referred to as cross border e-commerce. 

It can either be B2C (Business-to-consumer), B2B (Business-to-business), C2C (Customers-to-customer) or D2C (Direct-to-consumer)

Any seller can benefit from cross-border e-commerce if they want to expand their business, investigate new markets and purchasing patterns and/or export what they have to offer in order to reach a larger audience but it can be intimidating to start. 

Cross Border E-commerce in China

In China, cross-border e-commerce is distinguished by the fact that overseas companies are permitted to offer some goods to Chinese consumers online, through platforms such as Alibaba’s Tmall Global and Kaola, at favorable tariff rates and without the need for a business license.

Moreover, the majority of cross-border trades in China are carried out by corporations from other Asian countries, led by Japan and Korea, and closely followed by the United States.

The Chinese Ministry of Finance has implemented few regulations for cross-border purchases since January 2019. The following are the most important for CBEC in China:

  1. The maximum amount for a single transaction has increased from 2,000 RMB (291 USD) to 5,000 RMB (727 USD)
  2. The average annual amount spent across borders climbed from 20,000 RMB (2,909 USD) to 26,000 RMB (3,782 USD) per person.
  3. In China, 63 additional item categories have been added to the positive list for cross-border e-commerce purchases. Sparkling wine, beer, health care items, and workout equipment are among these categories.
  4. The number of cities eligible for the CBEC tax-rebate increased from 15 to 37, including Beijing and Shanghai.
  5. Because of the new regulation, it’s more difficult for Daigou to operate unlawfully. Daigous is a form of surrogate shopping in China as a means to receive cheaper or locally unavailable, often luxury goods, from duty-free shops and foreign countries. 

The Retail Marketplaces of the CBEC

In China, there are various platforms for cross-border e-commerce. Tmall and JD.com are at the top of the list. 

China’s consumers are more educated than they have ever been. As a result, they desire higher-quality goods and are willing to pay a higher price for them. They are educated and shop on the go using mobile devices. The majority of e-commerce shoppers are between the ages of 18 and 34. 

In 2017, the average Chinese online shopper spent RMB12,198 (S$2,558) (iResearch Consulting Group).

Some of the key marketplaces you could consider for cross-border e-commerce are:

  • Tmall & Tmall Global (Alibaba)
  • Kaola (Alibaba)
  • RED (Xiaohongshu)
  • JD Worldwide
  • VipShop
  • Pinduoduo

Most major global brands have a presence on one or more of these platforms because they provide high market exposure and allow them to benefit from the platforms’ high quality and exposure.

What are the benefits of cross-border eCommerce?

The most significant advantage of cross-border eCommerce is that it allows you to extend your business globally and gain exposure to new markets and audiences. Because of that, it will also assist you in increasing the appeal of your business.

With a larger audience, your company’s number of customers and potential consumers will increase, potentially leading to an increase in demand and customer orders. 

Products that are less popular in their home market have been discovered to be more popular beyond borders in some situations. As a result, cross-border e-cmmerce can help you sell slow-moving or outdated inventory.

However, there are a few things to consider before pursuing cross-border e-commerce for your business:

  1. Figure out the suitable platform to sell your products
  2. Know the latest trends and who your consumers are
  3. Understand the rules and regulations
  4. Read up on the geography of your audience
  5. Learn what various partners can do for you

End word

In conclusion, enterprises should prepare themselves by having a thorough awareness of trends, customers, location, legislation, platforms, and the ecosystem. Thank to this, they can effectively access China’s lucrative cross-border e-commerce sector. So there is a lot of homework to do, but there are also a lot of resources.

If you require further support with setting up your account or assistance in learning more about cross-border e-commerce in China,, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

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