What’s new happening in China?

August 29, 2022

WeChat Channels and WeCom – Perfect Partners

Utilizing short videos and live streaming can be difficult. WeChat Channels introduce fresh approaches to improve interactions with fans and viewers thanks to WeCom solutions:

  • Buttons for adding the chat to the customer service account
  • Pushing business cards during a live broadcast
  • Employees at WeCom can have up to 50 profiles connected to a single WeChat Channels account.
  • Users can share the stream directly with their moments or groups.

Link: https://mp.weixin.qq.com/s/T0LAvsiVkXRLQ_kSzt-sUA

 

China’s cross-border e-commerce for first-time market entry

The Chinese government has promoted CBeC (cross-border e-commerce) in China over the past ten years by enacting legislative incentives like preferential tax rates and cross-border e-commerce pilot zones.

Cross-border e-commerce has lower regulatory barriers than traditional trade, which requires a significant initial investment, making it a quicker, lower-risk, and more accessible way for foreign brands to begin selling in China.

Link: https://mp.weixin.qq.com/s/0KxWcwmp4piKlS_rLQu4YA

 

ByteDance quietly launches search app Wukong in China, where Google is banned

Owner of the popular short video app TikTok, ByteDance, has quietly introduced a new search engine that guarantees there will be no ads online. ByteDance and Baidu, the dominant search engine in China, are now more directly competing thanks to Wukong, which is currently offered on the Chinese Apple App Store and various Chinese Android app stores.

According to the new app’s advertising, it offers “quality information and search without ads.” It’s possible to read the phrase as a subtle dig at Baidu, which has long drawn flak for its use of paid listings in search results.

Wukong offers a variety of search categories, including news, images, and video, just like other well-known search engines. Additionally, it offers a feature similar to web browsers’ “incognito mode” that does not save search history and lets users bookmark pages.

Link: https://www.digitalinformationworld.com/2022/08/tiktoks-parent-firm-bytedance-quietly.html

ByteDance rival Kuaishou narrows losses, boosts revenue at overseas operations amid gains made in domestic business

After beginning to restructure its international business in March, Kuaishou Technology, owner of the second-largest short video platform in China, narrowed losses at its overseas operations in the three months that ended June 30 while seeing revenue rise by more than 1,000% year over year.

Compared to the 4.4 billion yuan loss experienced during the same period last year, the operating loss at Kuaishou’s overseas operations significantly decreased to 1.6 billion yuan in the second quarter. Revenue increased by 1,328 percent to 103.4 million yuan from 7.2 million yuan a year earlier.

Currently, Kuaishou’s international operations are concentrated in Indonesia with its SnackVideo app and Brazil where it runs the short video app Kwai. In August of last year, the company removed its Zynn short video app from the US after failing to compete with TikTok, which is owned by ByteDance and has more than 1 billion users worldwide.

Link:https://www.scmp.com/tech/big-tech/article/3190023/bytedance-rival-kuaishou-narrows-losses-boosts-revenue-oversea

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Chinese market trends

August 24, 2022

Tencent Accelerates the Development of its One-Stop Live Shopping Platform, Will it be Able to Compete with Douyin?

The launch of Tencent’s WeChat Channels Store on July 21 increased the competition for Douyin’s live-streaming e-commerce venture. The launch of the new service is intended to replace the earlier WeChat-based online store, increasing the dependence of sellers on “WeChat Channels,” which offer live streaming and brief videos. In 2021, the short video service had 500 million daily active users, an increase of 79% over the year before. Each day, these users spent 35 minutes watching videos, an increase of 84% over 2020, but this was still less than a third of the time spent on Douyin and Kuaishou.

Link: https://en.pingwest.com/a/10539

 

Don’t You Dare Say “WeChat”: 

Chinese users have long eschewed censorship by using inventive wordplay, such as homonyms and purposely misspelled words, to get around restrictions on social media. In addition to political taboos, there are also business regulations. Live streamers on Douyin are reportedly prohibited from using the terms “WeChat,” “friend circle,” or even “limited time offer” and “money-making.” Also, avoid bringing up the “country” or the “pandemic situation.” These never-ending guidelines and limitations were tiresome for content producers.

Link:https://chinamediaproject.org/2022/07/27/dont-you-dare-say-wechat/

 

Cartier snatches up China’s lower-tier markets ahead of the Qixi festival

In three Chinese cities, Henglong Plaza in Kunming, Wanxiang City in Nanning, and Hisense Plaza in Qingdao, Cartier has set up a number of pop-up experience stores. A limited-edition collection made specifically for the festival and available only in the Chinese market will be displayed in three distinctive installations.

Link:https://daoinsights.com/news/cartier-snatches-up-chinas-lower-tier-markets-ahead-of-qixi-festival/ 

 

5 Tips For KOL Collaborations In China

The outcomes of a partnership between a brand and KOL are impossible to foresee.

  • 1. Limited-edition capsule collections are king
  • 2. Take cues from local brands
  • 3. Beware of collaboration fatigue
  • 4. Keep in mind: Consumers in China still rely heavily on celebrities and KOLs 
  • 5. Yet brands must be more cautious than ever when partnering with a KOL or celebrity

Link: https://jingdaily.com/five-tips-kol-collaborations-china-neiwai-li-jiaqi/ 

 

Alibaba’s Ele.me joins ByteDance’s Douyin to challenge Tencent-backed Meituan in food delivery market

On Friday, Ele.me, an Alibaba Group Holding-backed food delivery service, announced a partnership with ByteDance that would enable Douyin’s 600 million daily active users to place food orders through the brief video app.  Through the partnership, Ele.me will use videos on Douyin to promote products from millions of restaurants and stores.

Ele.me was acquired by Alibaba in 2018, but the platform has had trouble competing with Meituan, which is supported by Tencent Holdings. In the first quarter of 2021, Ele.me held 27% of the market for online food delivery in China, which is less than Meituan’s share of 67 percent. Meituan faces new obstacles as a result of the most recent partnership between Ele.me and Douyin. 

Link:https://www.scmp.com/tech/big-tech/article/3189538/alibabas-eleme-joins-bytedances-douyin-challenge-tencent-backed

H&M Returns to Tmall After Prolonged Xinjiang Cotton Controversy

H&M quietly made a comeback on Tmall, Alibaba’s flagship e-commerce site in China. The store’s reopening was announced by local media outlets on Monday. In 2018, the Swedish fast-fashion juggernaut debuted its official Tmall store. Due to allegations of forced labor in the Xinjiang region, the brand refused to use that cotton in March, and as a result was removed from Pinduoduo, JD.com, and Tmall.com. The store remains unsearchable on the latter two e-commerce sites, and its store listings remain delisted from online maps and Dianping, the Chinese version of Yelp.

H&M closed its first and largest flagship store in Shanghai this June due to protracted lockdown procedures and ongoing customer backlash. The brand currently runs 381 physical locations, down from more than 500 doors at the start of 2021. The brand also operates an official website in the market.

Link: https://sg.news.yahoo.com/h-m-returns-tmall-prolonged-151757777.html

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Top Search Engines in China and How They Work

August 23, 2022

If you want to implement an effective marketing strategy in China, you must get acquainted with the largest search engines in the country. 

As of 2021, China had 1 billion internet users, making it the largest online market in the world. But because of the filters imposed by the Great Firewall of China, a number of well-known search engines, including Google, are not accessible in China.  

If Google is not working in China, then what are Chinese people using? Let’s examine the popular Chinese search engines and how they work.

Popular search engines in China

 

Baidu

The most popular search engine in China is Baidu, and it is comparable to Google in the West. It was among the first search engines to appear in China, and since then, its use has grown significantly.

It dominates the market for search engines in the PRC by more than 75% and even draws some users from abroad, like the United States and Japan.

Baidu only indexes websites using simplified Chinese characters. Therefore, if you don’t have a website in Mandarin, your website won’t appear. Additionally, it favors websites that are stored on Chinese servers.

An Internet Content Provider License is required in order to host a website in China. Let’s learn about the ICP in a later part of the blog. Keep reading!  

Also, if you want to know about it in detail, check this blog: Baidu SEO for beginners.

 

Sogou

Sogou, the second player in China, has been operating since 2004. They managed to gain 24.54% of the market in December 2020, outpacing all other Chinese search engines in terms of growth.

Sogou’s algorithm is unique. As a result, don’t anticipate Baidu SEO strategies to be effective on this search engine.  Sogou’s search algorithm highly values original content and site authority. The importance of backlinks as a ranking factor seems to lean more toward quantity than quality. 

Due to its more affordable pay-per-click campaigns, Sogou has proven to be very helpful for businesses that aim to market to consumers in lower socioeconomic areas.

With Tencent’s acquisition of Sogou, the Chinese search engine now has a special feature that no other search engine in the country can claim: the ability to search on the WeChat platform. The QQ browser, created by Tencent, also uses Sogou as its default search engine. 

 

Haosou

Haosuo, also known as Qihoo 360 Search and s.com, is ranked third in the domestic Chinese search engine market. The search engine focuses on many services including news, websites, videos, images, music, and many more, and it has a reputation for being safer than Baidu.

Most Chinese computers come with the Qihoo 360 browser preinstalled, making it China’s equivalent of Internet Explorer. Because there is less competition on 360 Search, paid advertisements frequently have a lower cost-per-click.

Haosou is a significant player in B2B marketing because many Chinese companies recommend using it due to its security features. Additionally, rankings seem to reflect this emphasis on cybersecurity, with sites with more authority and credibility appearing to be ranked higher.

 

Shenma

Shenma is the result of a joint venture between Alibaba and UC Web. One of the most widely used web browsers, UC, uses it as its default search engine. In the upcoming years, it is anticipated that Shenma’s user base will continue to expand.

The fact that Shenma is only compatible with mobile devices is a key characteristic of this Chinese search engine. This is a key factor because of how widely used mobile devices are in China. Shenma is actually widely used for apps, books, and shopping. Shenma is therefore essential if you work in one of these market segments.

Shenma’s link with Alibaba allows it to include direct links to product pages. It’s widely used for home goods, clothing, books, and apps. Products that are listed on Taobao or Tmall (Alibaba shopping properties) are given priority, which improves placement in search results.

 

Youdao

Chinese search engine Youdao was launched by NetEase in 2007. Websites, images, news, music, blogs, and Chinese to English entries can all be searched using Youdao. Youdao Hui Hui Assistant, a shopping assistant tool that enables users to compare products and prices online, was introduced to Youdao in 2012.

More than 20 languages can be translated from Mandarin by Youdao. It offers example sentences and word usage guidance and is the PRC’s largest translation tool and online dictionary.

Because it includes a free online dictionary, Youdao is very well-liked by Mandarin learners. The Youdao Chinese dictionary is useful because it is simple to use and includes examples of sentences and instructions on how to use words.

 

WeChat Search – Souyisou

Last but not least, WeChat’s own search engine is slowly but surely eating its way into the search engine market in China. Launched in 2017, it’s already indexing the majority of content shared by official accounts (as long as published in the text format – read more about do’s and don’ts to optmize your SEO performance in our quick Guide To WeChat Search)

At the moment, its market share is relatively low but with more than 500 million Daily Active Users and Tencent confirming earlier this year at WeChat (Weixin) Class PRO that Seach will be one of the priorities in 2022, we can only expect it will grow considerably in the near future. 

SEO in China

People in China will Baidu your brand rather than Google it. Therefore, understanding how Baidu SEO functions is crucial. The main distinctions between the SERPs of Baidu and Google are:

  • the interface is available only in Simplified Chinese. No other languages support.
  • Links clicked on the SERP open in a new window, keeping the Baidu window always open for users to come back to it.
  • Image-based related searches are present for almost every single search on the right side.
  • Oftentimes, it is tough to distinguish between organic and paid results
  • Google’s mobile search shares the same URL as its desktop version. Baidu uses m.baidu.com for its mobile search engine.
  • Google uses structured data from schema.org markup and crawled data for rich snippets, while Baidu provides its own platform (Baidu Open or Baidu Webmaster Tools) for submitting structured data.
  • If your site is not mobile-friendly, Baidu might transcode it to make it load faster for mobile devices.

Google vs Baidu’s algorithms

When it comes to algorithms, Google and Baidu’s algorithms are similar in theory, but in practice, Baidu still needs to update its game. Though they are almost similar, they have differences too. Some common differences between Google and Baidu algorithms are

  • The algorithm used by Baidu has a significant explicit bias in favor of everything Chinese.
  • In terms of Chinese natural language processing, Baidu has a significant edge over Google and typically returns more accurate results for Chinese queries than any other search engine.
  • Duplicate content is much less tolerated on Baidu. It may take a long time to regain lost rankings if a website receives a Baidu penalty for duplicate content. 
  • It’s better to avoid JavaScript and AJAX content if one wants to rank highly in Baidu because the search engine has trouble crawling it.
  • Baidu spider typically crawlers Chinese websites much more frequently than those by Google.
  • Backlinks from Chinese-based websites are worth much more to Baidu than those from foreign websites.
  • In terms of machine learning for image processing, Baidu still lags. Therefore, for an image to rank well in Baidu’s image results, the alt text and surrounding plain text content must be properly optimized.
  • Baidu prefers websites with frequently updated content. It affects particularly new websites.
  • Compared to Google, Baidu gives a domain age more importance. To rank highly for a new site is harder, but it gets much simpler over time.
  • Baidu uses meta keywords as a ranking signal.

 

What is ICP? Why do you need it?

The Chinese government maintains strict control over the internet. Consequently, obtaining an ICP (Internet Content Publishing License) in China might enhance Baidu’s SEO performance.

A legitimate Chinese hosting company can only host your website on their servers if they have an ICP license. The best way to stay in the competition and stand out is to have a website in China or at the very least use a test to see if your website is blocked due to the Great Firewall in China and an increasing number of blocked foreign websites.

Compared to websites without an ICP license, obtaining one means much faster loading times for internet users. Internet users in China are therefore more likely to discover websites with an ICP license and to visit those sites again. Possessing an ICP license enhances Baidu SEO results. The ICP license, however, is restricted to businesses with Chinese registrations. Even though Baidu will not block websites for not having an ICP license, having one is not absolutely necessary for Baidu SEO. Paid media on Baidu it’s another story.

Conclusion

Although Baidu is the most popular search engine in China, it does not have market dominance. Users can use a wide range of additional resources, as we have already discussed in this article.

It is essential to familiarize yourself with the different search engines before creating a strategy for the Chinese market in order to ascertain which search engines resonate with your audience and how to use them to gain the most exposure.

If you wish to know more about Chinese search engines and SEO strategies or other marketing techniques in China, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com.

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What’s new in e-commerce?

August 11, 2022

Why Experience, Story and Video Are Key Sales Drivers in Chinese Cross-Border Commerce

 

Tmall adopts a slower, more drawn-out strategy intended to entice customers with a wide variety of options, while Amazon places a premium on speed and convenience, with quick conversions and brief visits. Amazon is extremely quick in and quick out, and its search algorithm is built around helping you find the product you want as quickly as possible. 

Tmall is more concerned with presenting you with more brands, a wider variety, and as many different product images as it can. The goal of Tmall’s strategy, which is to interact with customers, is to do more than just make sales. China has essentially made shopping into a game in terms of e-commerce.

The app gives you the impression that you are there to experience something rather than to make a purchase while you are using it. Tmall does a great job of encouraging businesses to post more content, both user-generated and branded. Live Streaming and live videos have increased significantly.

https://www.retailtouchpoints.com/topics/digital-commerce/mobile-commerce/why-experience-story-and-video-are-key-sales-drivers-in-chinese-cross-border-commerce

 

Alibaba to scale up cross-border e-commerce activities

 

As domestic consumption on the mainland continues to decline, Alibaba Group Holding is stepping up efforts to expand its cross-border e-commerce operations through a new campaign with authorities in Hangzhou, the capital of eastern Zhejiang province. This initiative aims to support more Chinese exporters as they expand abroad.

Other Chinese cities have also made plans to increase the volume of international e-commerce, demonstrating a wider support for the recovery of the mainland’s economy.

Through its various subsidiaries, including the international Tmall and Taobao Marketplace operations, the Southeast Asian e-commerce platform Lazada, and the global retail site AliExpress, Alibaba has connections to the Hangzhou pilot zone.

https://finance.yahoo.com/news/alibaba-scale-cross-border-e-093000775.html

 

JD.com Launches Robotic Shops “ochama” in the Netherlands

 

Two robotic stores under the new brand name “ochama” were launched by JD.com, a leading supply chain-based technology and service provider, on January 10th, 2022, in the Netherlands. Additional locations will be added soon. The new store model introduces a previously unheard-of shopping format that combines home delivery service, pick-up shops where robots prepare the packages, and online ordering.

JD.com has never before had a physical retail location in Europe. Ochama, which combines “omni-channel” and “amazing,” is the first Dutch omni-channel retailer to provide both food and non-food items in a single shopping app.

Through ochama’s App, where a full range of A-brand products are offered covering fresh & packaged food, home appliances, beauty, maternal and child products, fashion, home furnishings, and more, customers can conveniently order products online using the omni-channel model.

https://jdcorporateblog.com/jd-com-launches-robotic-shops-ochama-in-the-netherlands/

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Top Chinese E-commerce Platforms and Fees to Expect

August 11, 2022

The Chinese e-commerce market is the largest in the world and generated €867 billion in revenue in 2019. From 2020 to 2024, the annual growth rate of e-commerce in China is projected to be 6.9%.  Obviously, many overseas companies are tempted to enter the market and cater to millions of potential new consumers. Be it the youngest Gen Z or Chinese grandmas who are eager to spend more during their retirement, with a great product and market strategy it’s a great chance for brands to tip their toes.

👵🏻 Read more about China’s silver generation and their growing purchasing power and habits

This appeals to international businesses as well as the local business community, resulting in cross-border online trade. In 2022, it was estimated that the import e-commerce retail market would be worth close to 559 billion yuan. The most popular e-commerce platforms are Tmall, JD, Xiaohongshu, and WeChat. However, you will see there are plenty more e-commerce sites in China.  

No matter the size of your brand, the first step and choosing the right platform can be paralyzing. Companies quickly realize that the entry barriers to the biggest Chinese shopping platforms are challenging starting with the paperwork to e-commerce fees, steep deposits, and commissions.

One of the most attractive e-commerce models especially for niche or small brands that want just to test the waters would be cross-border e-commerce. Therefore more platforms offer this option now.

In China, cross-border e-commerce is distinguished by the fact that overseas companies are permitted to offer some goods to Chinese consumers online at favorable tariff rates and without the need for a business license. However, solution comes with some limitations we highlight in our previous article but nevertheless, it can be a very attractive way to kick off in China.

🇨🇳 Learn more about cross-border e-commerce and if it’s a solution for your brand

Let’s look at how much it costs to sell goods on these platforms in China, the pros and cons, and see which one can be the best fit for you.

Tmall

Tmall, formerly Taobao Mall, is a platform for business-to-consumer online retail, spun off from Taobao, and operated by Alibaba Group. It’s a highly reputable marketplace where all sellers are verified by the platform. In addition, Tmall has several solutions for brands that want to sell on the platform including cross-border sales.

 

Tmall General:

  • For Tmall general trade, the security deposit is $7,500. 
  • A deposit is required from vendors to open a Tmall store. The deposit is primarily used to ensure that retailers follow the Tmall Service Agreement and Tmall Rules so that expenses are covered in the event that retailers break any rules.
  • To use Tmall, an annual e-commerce fee of $4,500 must be paid. Depending on the merchant’s category, a yearly fee is paid at the time of settlement.
  • Suitable for brands that have Chinese business license.

Registration fee: USD 7,500 deposit + USD 4,500 annual tech support fee

Commissions:  8-12%

 

Tmall Global:

  • Cross-border solution
  • Suitable for overseas brands
  • Doesn’t require a local warehouse in China
  • Access to Tmall’s services including live-streaming and advertising

Registration fee: USD 7,500 deposit + USD 9,000 annual tech support fee

Commissions:  8-12%

 

Tmall mini-store:

  • Cross-border solution
  • Suitable for niche or small brands
  • Listed as sub-store on Tmall direct flagship
  • Suitable for smaller collections or products that can be shipped to China separately (maximum 3 products)

Registration fee: USD 4,500 deposit

Commissions:  4-12%

 

JD:

As Tmall, JD also offers solutions both for brands that have legal entity in China and cross-border players.

 

JD General:

  • When creating a new account, JD.com requests a deposit starting from USD 4,500 and higher.
  • For the majority of categories, the commission is between 2 and 5%.
  • Suitable for brands that are already in China

Registration fee: USD 4,500 deposit+

Monthly fee: USD 150

Commissions:  2-10%

 

JD Global:

  • Through a new partnership between JD and Shopify, merchants on that platform now have access to a new sales channel with a simpler onboarding process and better exchange rates through the marketplace.
  • Fees and requirements appear to be more demanding than Tmall

Registration fee: USD 15,000 deposit+

Monthly fee: USD 1,000+

Commissions:  2-5%

 

Xiaohongshu / RED

  • Suitable for lifestyle and fashion brands
  • Recently, RED tries to be more brand-friendly and lower the commission costs. These do not include marketing expenditures, influencer commissions, or fulfillment fees.
  • Account set-up guide >>> here

Registration fee: Case-by-case basis (normally USD 3,500)

Monthly fee: None

Commissions:  5% (reduced from 20% before)

Recently, we covered another quickly expanding platform dubbed ‘the RED but for men’.  You might have heard of Poizon also called Dewu on the Chinese market.

WeChat Mini-Programs as Alternative to Big Platforms

purchasing journey wechat mini programs

WeChat’s own mini-program-based online shop can be a great solution for brands that are not keen on costly registration fees and commissions. However, on the other side if you decide to go with the mini program you will have to figure out the storage, deliveries, refunds, and other logistics by yourself which the big platforms usually cover.  Due to that, you will need to build the mini program by yourself.

In addition, another amazing advantage of a mini program store is that you are the owner of the data. Also, WeChat users who are already your followers are more known to be more likely to convert to customers and normally the average purchase is bigger than those on other platforms. We covered the pros and cons and how the most successful brands do it on our blog.

🛍 Why selling on WeChat can be better than selling on Tmall and other platforms?

In conclusion, the Chinese e-commerce market is in a fascinating state right now. And platforms are vying to have the best appeal to clients and businesses. However, nothing seems to be offered for free. In other words, brands must invest in order to sell products on these e-commerce platforms because of the publicity and sales they generate. Above all, China’s famous e-commerce festivals like 11.11 called Singles’ Day or 6.18 are a great opportunity for brands to generate more sales.

If you wish to know more about e-commerce and cross-border e-commerce in China or other marketing techniques, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com.

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Tech news in China

August 4, 2022

Chinese TikTok re-bets on “Zhongcao”, a key to China’s e-commerce consumer culture

With the release of the brand-new independent recommendation app “Kesong,” Chinese TikTok Douyin is re-testing the “Zhongcao” business model. The action is a part of the video-sharing site’s larger strategy to develop into an interest-driven, omnichannel e-commerce ecosystem. Although “Zhongcao” makes it easier for content-focused platforms to capitalize on China’s e-commerce craze, it shouldn’t be done at the expense of user experience.

https://daoinsights.com/works/chinese-tiktok-re-bets-on-zhongcao-a-key-to-chinas-e-commerce-consumer-culture/

Tencent To Close NFT Platform Huanhe a Year After Launching

Major Chinese tech companies have started launching NFT-related platforms since last year. In addition to Tencent’s Huanhe, Ant Group introduced Topnod (JingTan in Chinese) on its AntChain in late 2021, and e-commerce behemoth JD introduced Lingxi, an NFT platform, in December. 

In China, NFTs are known as digital collectibles, but there are some important differences, such as limitations on the resale of these NFTs. Huanhe is supported by blockchains managed by Tencent and its partners. Buyers are concerned that the closure of Huanhe may also mean the end of collectibles purchased through the platform.

https://technode.com/2022/07/21/tencent-plans-to-close-nft-platform-huanhe-a-year-after-launching-report/

The Good Old Days: Why Nostalgia Amplifies Brand Collabs In China

According to a 2021 Mintel study, 77% of Chinese consumers enjoy items that bring back fond memories, such as childhood snacks. In difficult times like the COVID-19 pandemic, nostalgia is an easy way to elicit endorphins while reassuring customers. 

China has experienced a consistent flow of nostalgic food and cartoon collaborations in 2022, whether as a direct result of difficult times or not. International brands are also embracing the trend. L’Oréal released a line of cosmetics in April 2022 with the IP of the well-known Chinese cartoon (Black Cat Police Captain) from the 1980s. The line’s marketing even included the wistful theme song. 

https://jingdaily.com/brand-collaborations-nostalgia-wins-china-team-wang-loreal/ 

High-Tech Hues: Alibaba Algorithm Will Have Chinese Shoppers Looking Their Best This Fall

Retail trends are predicted before they occur thanks to a partnership between TWTA and Alibaba’s research arm DAMO Academy powered by AI. For instance, the information indicates that vibrant, lush orange and soft cyan blue will be popular colors in the fall and winter. The algorithm translated colors into digital codes after learning from a vast collection of product photos on Alibaba’s marketplaces and more than one million photos from fashion shows in order to identify patterns and forecast trends for both businesses and consumers.

https://www.alizila.com/high-tech-hues-alibaba-algorithm-has-chinese-shoppers-looking-their-best-this-fall/ 

A Guide To China’s Top Livestreaming Apps

More and more businesses are utilizing the e-commerce potential of live streaming, whether it be for performance art exhibitions, video games, or private luxury consultations.  Here are the top four live streaming platforms in China that luxury brands should be aware of because algorithm-driven short-video apps now account for the majority of online advertising.

Douyin

Due to its low entry barrier for product sales, Douyin’s live broadcast feature is especially well-liked among young consumers. Popular KOLs’ promotion of products can result in immediate sales. The app has successfully established a business model that functions as a personal and commercial platform thanks to additional alluring features like Douyin’s VIP Room, Flagship Store, and Global Choice. 

Kuaishou

Luxury brands have historically paid close attention to apps like Douyin and Bilibili, but with 578 million MAU and nearly $40 billion in revenue in the fourth quarter of 2021, Tencent-backed Kuaishou is becoming more and more difficult for major brands to ignore. Millions of users still rely on the app to buy cheap food and beauty products on a daily basis. 

YY live

YY Live offers a devoted user group of paying subscribers for a large number of content creators, even though it doesn’t have as many MAUs as top platforms Douyin and Taobao Live. The social network is positioned as being more focused on entertainment than strictly e-commerce by the platform’s hosts, who highlight streaming and chat features with virtual currency that is later converted into real money. 

Taotao live

Taobao live, which was introduced in 2016, draws both Chinese and foreign audiences with a mix of entertaining and business-related content. Taobao’s wide selection of reasonably priced goods contributes to some of its success in the fashion industry. Taobao makes it simple for livestreamers to maximize the speed and agility of the number of products they can try on, review, and sell to devoted audiences. Taobao pairs with an incredibly quick supply chain response. 

https://jingdaily.com/livestream-ecommerce-platforms-douyin-taobao/

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Why should brands include Qixi, the Chinese Valentine’s Day, in their marketing strategies?

August 2, 2022

The Qixi Festival is one of the major Chinese holidays that drives sales outside of the Chinese New Year. At this Qixi festival, one would buy flowers or chocolates for their partners, plan a fancy dinner, and share/create some amazing memories together.

According to 2019 data from China Daily, sales in some categories even increased by almost 120% for the Qixi festival. In 2018, Tmall saw the one-day sale of hundreds of thousands of handbags. 

When it comes to the Chinese market, the Qixi Festival is a big deal. 

If you haven’t heard of it, read on to learn more about it and its significance for brands.

🧐 What are the most important e-commerce festival? Check here and update your brand calendar

What is Qixi Festival

The Qixi Festival also called the Double Seventh Festival or Chinese Valentine’s Day is a long-standing tradition that originated in the Han dynasty 2,000 years ago. Contrary to the 520 falling on the 20th of May (520) which is homophonic to ‘I love you’ in Chinese or Western Valentine’s Day on February 14, Qixi is a traditional Chinese festival. 

Like all great love tales, the legend of the Qixi Festival centers on two star-crossed lovers: 

  1. Zhinhu, a weaver’s daughter and a powerful goddess, represented by the star Vega, and 
  2. Niulang, a lowly cowherd, is represented by the star Altair.

The story goes like this…

Niulang and Zhinhu – Fell in love and got married, and eventually had a boy and a girl. 

However, when Zhinhu’s mother learned that her daughter had wed a mere mortal, she brought her back to heaven and created the Milky Way, a river that divides heaven from earth, to keep the lovers apart. 

The earthly magpies, on the other hand, were sympathetic to the lovers’ plight. So, to help them with the lover’s plight, they fly up once a year to the heavens and create a bridge over the Milky Way. This way, Niulang, and Zhinhu could spend one night together on the seventh day of the seventh lunar month.

This seventh day of the seventh lunar month became the Qixi Festival or Chinese Valentine’s Day. 

Chinese people celebrate it by sharing gifts and spending time together with their loved ones. This year, the Qixi Festival falls on the 4th of August.

Why is the Qixi Festival important for brands?

A week before Qixi, one of China’s most important traditional holidays, vendors doing business in the romance economy have an increase in their turnover. Days before the Qixi Festival, it’s common for well-known restaurants to be completely booked.

A popular Chinese handmade chocolate and ice cream company reported that on the day of the Qixi Festival, one of their stores in Beijing recorded sales of over 20,000 yuan. That is twice what they would normally earn on the weekends.

The owner of a flower shop in Hebei Province, North China, told the Global Times that during the weeks leading up to the Qixi Festival, the shop received at least 150 orders daily, as opposed to the 10 to 15 orders it receives on typical days. That’s a 10x growth in sales!

Ahead of this year’s Qixi, sales of homemade goods, outdoor and luxury goods, as well as chocolate and candies, have already increased by 20 to 30% YoY, according to China Internet Watch. It’s an excellent event for clothing, jewelry, and cosmetics in particular.

Major e-commerce platforms’ data reveals that weeks before the festival even starts, online sales of gifts soars. For instance, a week before, sales of romantic gifts on Alibaba’s two main e-commerce platforms, Tmall and Taobao, reached their peak. It’s obvious that the festival is growing in popularity each year.

Romantic gifts – trends

Domestically produced goods were the most in demand, with sales of traditional Han clothing increasing by a staggering 184%. Chinese Rouge, an antique-style blush, saw a 37% increase in sales over the previous year.

Additionally, the Qixi Festival encourages consumers to eat more Chinese food. Meituan, an online food delivery service, reported that 7% more Chinese food was consumed on Qixi in 2018 than on Valentine’s Day in the West during the same year. 

Couples celebrating Qixi also enjoyed purchasing trips to theme parks, international vacations, and dining at upscale restaurants, portraits, and flowers.

The Qixi Festival is becoming more and more well-known, as evidenced by the participation of more brands and influencers and the sharp increase in sales.
This signifies a fantastic opportunity for businesses of all kinds. They can ideally reach more customers and take inspiration from the various success stories of global and local brands during the Qixi Festival.

Qixi Festival marketing tips for brands: 

For those looking to develop a successful Qixi Festival marketing campaign for China, here are a few pointers:

  • Encourage user-generated content: As Gucci’s campaign has demonstrated, a campaign that rewards user-generated content, perhaps by offering a chance to win a prize or a small discount, can significantly help drive impressions and raise awareness on social media.
  • Set up a WeChat mini-program or shop: As the virus is still being controlled and life slowly returns to normal in China, offline activities are once again on the agenda, but many shoppers still choose to stay at home and shop online. 
  • Produce limited-edition items: Chinese consumers are very responsive to specialized, one-of-a-kind items that have been created for Qixi. 
  • Work with KOLs: With so many brands competing for consumers’ attention at the moment, partnering with KOLs can be a good way to stand out from the crowd and connect with customers.

Interesting campaigns for Qixi

The Qixi festival is an excellent opportunity to promote clothing, jewelry, and cosmetics. Marketing campaigns for cutting-edge beauty products, high-end clothing, and statement accessories emphasize romantic themes or heart-shaped patterns. 

Luxury companies launch limited-edition products or run special Qixi campaigns. Recent participants include Dolce & Gabbana, Balenciaga, Gucci, Dior, Prada, Michael Kors, and Burberry. These campaigns are typically distinguished by major celebrity endorsements or the launch of a limited-edition or capsule collection exclusively for Qixi to give it some exclusivity.

With millions of views and engagements, Qixi promotions generate a ton of social media activity. Some marketing campaigns generate their own hashtags and controversy to increase brand buzz even more.

Chinese consumers are becoming more fascinated by Qixi-related products as a result of the contemporary celebration of this ancient folktale. Also, they are responding favorably to innovative marketing campaigns centered on the occasion.

Conclusion

The Qixi Festival is a significant event on the Chinese calendar, and brands should also make it a priority. It offers a fantastic chance to raise brand awareness, develop relationships with customers, and increase conversions/sales. 

Well, it’s time for a little romance. We wish you all a Happy Chinese Valentine’s Day.

Learn about other festival-related marketing strategies on our blog.

If you wish to know more, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com.

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