20 E-commerce Trends in China for Brands to Explore in 2023

China has the world’s largest e-commerce market. With an average growth rate of 6%, Chinese e-commerce revenue is expected to reach $2 trillion USD by 2025.

According to research firm Insider Intelligence, roughly 1 billion local consumers shopped on e-commerce channels across China in 2022, accounting for 45.3% of all retail sales online.

That’s huge! Right? All thanks to online communities and social commerce on popular apps like TikTok, WeChat, and Sina Weibo, which have long since become ingrained in Chinese culture.

In fact, Chinese consumers use their mobile devices for almost five hours every day, which they use for keeping in touch, making payments, shopping, plan trips, and more. Keeping all this consumer data in mind, companies should reconsider their 2023 investment plans as China relaxes pandemic-related restrictions.

Here are some of the e-commerce trends from 2022 for businesses to observe and reflect in their marketing strategies for 2023.

 

Chinese E-commerce trends to follow

 

1. Outdoor games 

Due to the Winter Olympics in Beijing and the relaxation of travel restrictions, there’s a significant increase in demand for outdoor activities in China through 2022. 

This led to a boom in winter sports, with a 300% increase in winter sports equipment sales on Alibaba’s Tmall platform between Jan. 31 and Feb. 4, including a 180% increase in skiing gear purchases. Outdoor gear and camping equipment sales also saw a boost on Tmall, doubling in March compared to the same period the previous year. 

Several international brands, including Carver and Santa Cruz, announced plans to enter the Chinese market through Tmall Global, Alibaba’s cross-border e-commerce platform, during the previous mid-year shopping festival in June. 

 

2.  Furry babies

In China, pets are increasingly being treated like own children, with owners buying specialized clothing and technology for them.

During the first checkout period of the 11.11 Global Shopping Festival in November, pet food brands on Tmall saw a three-digit year-over-year growth in gross merchandise value. 

Younger Chinese pet owners view their pets as children, they are also investing in digital gadgets like intelligent pet bowls and companion robots.

 

3. Metaverse

In 2022, the metaverse saw significant growth, and fashion companies began to experiment with its potential uses, including digital collectibles and virtual try-on services. 

Digital collectibles, which allow brands to build a community of followers in both the metaverse and the real world, became popular in late 2021. 

Nearly two dozen luxury brands released 37 digital collections on Alibaba’s Tmall Luxury Pavilion, and thousands of consumers purchased them. 

More retailers are expected to use digital tools to engage customers and develop products for pets in the coming year, such as Burberry’s private digital salon for coat shopping on Tmall Luxury Pavilion. 

 

4. Gen Z Shoppers

In China, Generation Z, a significant consumer group, accounts for approximately 15% of the population.

Despite their small size, they have a disproportionate influence on consumption trends and are one of China’s fastest-growing consumer groups on e-commerce platforms.  As their purchasing power grows, they will account for nearly two-thirds of Tmall Global consumers, which is more than 17% of Tmall Luxury Pavilion consumers by 2022.

Gen Zers are also fueling the popularity of collectible toys in China, congregating to show off their latest purchases and exchange trend information, attracting investors such as Sequoia China.

🛍 Read more about Gen Z as Luxury Consumers

Gen z China luxury

5. Virtual Influencers

In 2022, artificial intelligence-powered digital creations gained popularity and became celebrities in their own right. They appeared on virtual catwalks, dance competitions, and livestream sessions. These virtual idols were used by Chinese brands to increase brand awareness and attract followers among China’s digitally native consumers.

According to market research firm Forrester, virtual influencers will become more common in the coming year, with a fifth of B2C brands in China using digital idols to improve the shopping experience for consumers by 2023.

 

6. Cross-Border E-Commerce

The cross-border e-commerce (CBEC) sector in China has experienced significant growth in recent years.  Consumers in China are increasingly interested in international products and brands, fueling growth in the CBEC sector. 

As a result, in order to meet this demand, many companies have entered the market, resulting in competition among CBEC platforms like Alibaba, NetEase Kaola, JD Worldwide Vipshop Global, Amazon Global, and Pinduoduo.

🌏 Read more about China’s Cross-Border E-commerce Solutions

🛒 Why WeChat Might Be a Better (and a Cheaper) Option for China E-commerce Newbies?

7.  Omnichannel retail

Through all points of contact, this cross-channel content strategy aims to improve the user experience and strengthen relationships with the target audience. 

The goal is to make the transition between online and offline interactions (O2O) as smooth and consistent as possible, regardless of where the customer shops or interacts with the brand. 

China is at the forefront of omnichannel retailing, with high customer expectations, smart sales assistants, mobile-first approaches, self-service kiosks, and the use of virtual and augmented reality. 

 

8. Xiachen

Selling through social media to China’s lower-tier cities and regions is becoming more common. Lower tiers are happy to buy consumer goods with their extra money because their living expenses are lower.

🇨🇳 China Marketing Strategy: One Size Doesn’t Fit All

taikoo li chengdu china localization

9. Fintech

Financial innovation and technology are increasingly competing with traditional methods of delivering financial services. 

Chinese online banks are emerging as startups that provide straightforward financial services to individuals and institutions, particularly WeCash (unrelated to WeChat or Tencent). These banks frequently employ AI and machine learning techniques.

For instance, WeCash, which has 130 million users across five countries, enables people to easily obtain their credit score and submit loan applications. Additionally, using this big data-driven platform, institutions can develop their income-producing loan portfolio.

 

10. Cryptocurrency

In the Middle Kingdom, users and miners of cryptocurrencies are subject to strict regulation. China is looking for a new cryptocurrency market and country-specific solutions, much like it has done with social media platforms, a dedicated Chinese search engine (Baidu), and other tools and regulations that apply only to China.

China is now completing the preparations for the launch of its DCEP (Digital Currency/Electronic Payments), which was first conceptualized five years ago. 

Unlike Bitcoin and other cryptocurrencies, DCEP is sanctioned by the government. The government will most likely distribute the new currency through conventional banks, making it completely centralized and identical to traditional paper money. The Belt and Road Initiative (BRI) and other development initiatives by China are increasing its international trade, and the DCEP has the potential to increase China’s financial independence and decrease its reliance on the US.

 

11. From KOL to KOC marketing

Key opinion consumers (KOCs) are “regular” consumers who write blogs and make videos about their own product reviews and recommendations. 

End users are thirsty for recommendations and advice from real customers they can trust. KOCs are influencers as well, but they are more sincere.

Brands that use KOCs as part of their marketing plan can see an improvement in their sales and brand recognition. As they typically do not have many followers, making them hard to find, be sure to identify appropriate KOCs.

💁🏻‍♀️ What is The Difference Between KOL and KOC?!

 

12. Short Videos

Short videos and short video apps are dominating the Chinese market in addition to live-streaming. As a result, the distinction between work and socializing keeps getting fuzzier. The fact that more than 300 million Chinese people use short video apps shouldn’t come as a surprise to you.

Gen Z and individuals with middle and higher incomes are more drawn to this medium in higher Tier areas. Our favorite short video platform are WeChat Channels. We even dedicated a whole category to them!

📽 Discover what WeChat Channels Are 

WeChat Channels Live Streaming

13. Group Buying

This trend has yet to spread beyond China. Customers elsewhere may believe that the products are of poor quality or that the platforms are untrustworthy and charge hidden fees. 

Chinese consumers appreciate the cheap prices, and the group-buying model benefits lower-income residents in particular.

 

14. Social Commerce

Social commerce, a hot new trend, is expected to reach more than 600 billion dollars globally by 2027. It arose as a result of the increased use of mobile devices and social media.

Shoppers can shop from home, at work, or on the go. This behavior necessitates the creation of novel approaches to creating a personalized and ready-to-purchase social commerce experience.

 

15. Cruelty-Free Products

Until early 2021, animal testing was required by law for cosmetic products imported to and sold in China. This law is no longer in effect as of May 1, 2021. 

General cosmetics imported into China are no longer required to undergo animal testing as long as they also satisfy other criteria, like a safety and risk assessment.

This also broadens the market for vegan, cruelty-free, and eco-friendly cosmetics and beauty brands. The first cruelty-free cosmetics company to sell in mainland China was the UK-based skincare line Bulldog, which was imported under the general trade model rather than the CBEC model.

 

16. Private Traffic

Brands are looking for alternatives as paid traffic prices increase. Brands can promote a specific lifestyle and the associated products by creating exclusive clubs or groups, like WeChat groups. 

A closed group has the benefit of already having devoted patrons and supporters. Additionally, they react more readily to CTAs.

 

17. Big Data

Massive amounts of data are analyzed in order to implement data-driven marketing in China.

Businesses get around space and time constraints by combining data from offline and online consumer behavior. Businesses gain deep insights into the preferences, movements, and behavior patterns of their (potential) customers.

For instance, Tencent gathers and categorizes data into various dimensions. This includes more than 3,000 tags, such as fundamental characteristics, social preferences, entertainment interests, media preferences, etc.

Remember that Chinese consumers adore their smartphones and utilize them for everything. In particular, WeChat which enables users to pay, play, chat, shop, order common services and goods, and more. In China, advertising has never been both simpler and trickier at the same time. 

 

18.  The Middle Class Continues to Rise

Upper-middle-income and above households are driving strong consumption growth, with double-digit growth. The number of upper-middle-class and higher households in China is predicted to increase by 71 million over the following three years.

 

19. Making Wiser Decisions Without Compromising

Customers are switching to less expensive channels and actively looking for sales and promotions. They are aware of the precise ingredients used in their skincare regimen or the products they use in everyday life

They could, for instance, compare and contrast the down content and thermal effectiveness of their jackets.

Customers are savvy and skilled at researching the technical specifications of their preferred products on websites or social media.

 

20. Guochao

Purchasing locally has been popular for a while. It was mostly due to national pride. 

Most importantly, consumers are choosing local brands because they like the quality and innovation of the goods rather than just because they are cheaper or because they feel more patriotic about their country.

🥮 Discover What Guochao Is and How Can (Carefully) You Leverage It

Conclusion:

Firstly, China’s e-commerce market is expanding steadily and is leading the world. Secondly, Chinese consumers are increasingly shopping online for clothing, accessories, and beauty products. Despite the changes in Covid restrictions, this trend continues to be strong. Thirdly, e-commerce enthusiasts are now being joined by the silver generation quickly catching up with online shopping.

This allows businesses to import goods to China and expand their market, especially when combined with popular cross-border e-commerce shopping and fewer restrictions.

If you want to know more about Chinese e-commerce or need help establishing your digital presence in China, contact us. 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

Maximizing Opportunities in the Chinese Market: A Guide to the 2023 Marketing Calendar

Marketing in China is a unique and challenging endeavor. With a population of over 1.4 billion, the country is home to one of the largest consumer markets in the world. However, to truly succeed in this market, it is crucial for brands to understand and appreciate the country’s rich culture, customs, and traditions. One of the most effective ways to do this is by tapping into the many holidays and festivals that are celebrated throughout the year.

In this article, we will take a deep dive into the Chinese marketing calendar for 2023, providing a comprehensive guide to the major festivals and e-commerce events that brands should be aware of.

From the Chinese New Year, also known as the “Spring Festival,” to Singles’ Day and the Double 12 Shopping Festival, we will explore the significance, traditions, and opportunities of these events. This will help brands better understand and connect with the Chinese consumer and tailor their marketing campaigns to align with the values and interests of their target audience. Meanwhile, feel free to refer to this article to plan your 2023 marketing calendar accordingly!

 

Chinese Marketing Calendar

 

January

 

January 1: New Year

The International New Year is becoming increasingly popular among young people in China. The celebrations are similar to those in Western countries. It is important for brands to understand the cultural context and tailor their campaigns accordingly for better sales and engagement.

 

January 21-27: Spring Festival / Lunar New Year (春节 / chūn jié)

The Chinese or Lunar New Year, also known as the Spring Festival, is the most important holiday in China. It typically falls between January 21st and February 20th, depending on the lunar calendar.

During this time, people travel home to be with their families, exchange gifts and participate in traditional activities such as lion and dragon dances. This is a great opportunity for brands to launch new products, offer special promotions, and create festive campaigns to connect with consumers.

🧨 Discover some of the coolest ideas on how to connect with your Chinese audience during CNY

🧧 Creating Your Own Red Packet Cover On WeChat—The Ultimate Guide

 

 

 

February

 

February 5: Lantern Festival (元宵节 / yuán xiāo jié)

The Lantern Festival falls on the 15th day of the first lunar month, which is usually in February. This year it falls on February 5th.

This festival marks the end of the Chinese New Year celebrations, and it is a time for people to gather and watch lantern displays, solve riddles, and eat sweet glutinous rice balls. Brands can create special campaigns and promotions to align with the festival’s theme of luck and prosperity.

 

February 14: Valentine’s Day

Valentine’s Day is becoming increasingly popular in China, especially with younger audiences. On Valentine’s Day, people in China exchange gifts such as chocolates, flowers, and jewelry.

Brands can take advantage of this by promoting these types of products as Valentine’s Day gifts. Additionally, restaurants and hotels can offer special Valentine’s Day packages, such as romantic dinners or weekend getaways.

 

March

 

March 8: Women’s Day (三八节 / sānbā jié)

International Women’s Day, which is celebrated on March 8th, is an important event in China. On this day, many Chinese brands and companies run promotions and special deals to attract female consumers.

Additionally, there are often events and gatherings held to recognize and celebrate the contributions of women in society.

 

March 21: Spring Equinox

The Spring Equinox, which marks the start of spring in China, is a time for celebrating renewal and growth.

It is traditional for Chinese people to mark the occasion by participating in various customs and rituals, such as cleaning their homes, decorating with new flowers, and eating special foods. Many brands take advantage of the holiday season to promote their products and services.

 

April

 

April 5: Tomb Sweeping Day (清明节 / qīngmíng jié)

Tomb Sweeping Day, also known as Qingming Festival or Pure Brightness Festival, is a traditional Chinese holiday that takes place on the 4th or 5th of April each year. On this day, people pay their respects to their ancestors by visiting graves, cleaning and maintaining gravesites, and making offerings of food, flowers, and incense.

Normally, brands don’t publish dedicated greetings for the Qingming festival.

 

May

 

May 1: Labour Day

International Workers’ Day, is a public holiday in China that is celebrated on the first day of the month. It is a day to honor the contributions and sacrifices of workers and is typically marked by parades, speeches, and other public events.

We recommend preparing a dedicated greeting especially if you are in the B2B industry. For example, you can refer to Procter & Gamble Chemicals greeting:

 

May 1 Greetings

May 4: Youth Day

Youth Day in China is a public holiday celebrated on May 4th, marking the student-led protests of 1919, the birth of Chinese nationalism, and the emergence of the Chinese Communist Party.

During this period, marketing campaigns use slogans, messages, or visuals that resonate with young people, and brands also launch promotional offers and discounts.

 

May 14: Mother’s Day

Mother’s Day in China falls on on the second Sunday of May each year, and it is an occasion to honor mothers and motherhood. Family members often give gifts and express their appreciation for the love and care of their mothers.

For example, retailers may offer special deals on items such as flowers, jewelry, and clothing, food and beverage companies may launch special deals or limited-edition products

 

May 20: 520 Valentine’s Day

“520” is a slang term in China referring to May 20th, as the numerals “5” and “20” sound similar to the Chinese phrase “I love you”. Some people in China use the occasion of 520 to express their feelings of love and affection, similar to how Valentine’s Day is celebrated in other parts of the world.

520 is becoming a trend in China, especially among the young generation, they would use this day to celebrate their love, such as giving gifts, flowers, and chocolates, and planning romantic activities with their partners

 

June

 

June 1: Children’s Day

Children’s Day is celebrated on June 1st in China to honor children and promote their well-being. Activities such as parades, sports events, and cultural performances are organized by schools and local governments.

Companies and organizations also run campaigns to promote children’s rights, education, and health, including charitable donations and free or discounted admission to children’s attractions

 

June 7-9: Gaokao

The university entrance season in China, also known as “gaokao season,” is a crucial time for high school students as they prepare to take the National Higher Education Entrance Examination (NHEEE).

Brands, especially in the education, tutoring, and test preparation sectors, tend to launch various marketing campaigns targeting these students and their parents.

June 8: Father’s Day

Father’s Day is not an official holiday in China, but it has been increasingly popular in recent years, especially among young people. Many Chinese people choose to celebrate Father’s Day by giving gifts, such as clothing, watches, and electronics, to their fathers.

Sales and promotions, special gift sets, and emotional campaigns encourage customers to share stories on social media.

🚲 See the campaign we prepared for Father’s Day together with Montagut 

Father Day China Montagut

June 18: 618 Shopping Festival

618 is another shopping festival created by JD.com. The date of the festival is the anniversary of the launch of the JD platform by Liu Qiangdong. However, in recent years, it’s slightly losing momentum with consumer sales fatigue.

 

June 22: Dragon Boat Day (端午节 / duān wǔ jié)

The Dragon Boat Festival, also known as Duanwu Festival, is a traditional Chinese holiday that falls on the fifth day of the fifth lunar month, usually in June. The festival is celebrated to commemorate the ancient poet Qu Yuan, who is said to have drowned himself in a river.

During the festival, people in China typically participate in dragon boat races, eat zongzi (a traditional glutinous rice dumpling wrapped in bamboo leaves), and hang mugwort and calamus to ward off evil spirits.

Brands tend to market during this period by promoting traditional Chinese culture and history, they are usually looking to capitalize on the festive atmosphere and appeal to the emotions of the customers.

 

July

 

July 7: Minor Heat (小暑)

The eleventh solar term of the year, known as Minor Heat, starts on July 7 of this year. Minor heat warns of the impending hottest time, but the extreme heat point has not yet materialized.

Farmers focus on field maintenance during the minor heat. Currently, crops like mung beans, kidney beans, peanuts, and others are growing. People water these crops and take precautions against harmful insects.

 

August

 

August 8: Start of Autumn

The traditional Chinese lunar calendar divides the year into 24 solar terms. Chinese autumn, the 13th solar term of the year, begins on August 8 and ends on August 22 this year.

The start of autumn reflects the end of summer and the beginning of autumn. The fruitful season is approaching.

 

August 22: Qixi Valentine’s Day (七夕节 / qī xī)

Qixi Festival, also known as Chinese Valentine’s Day, is celebrated on the seventh day of the seventh month in the Chinese calendar. The festival has a history of over 2,000 years. It’s related to the romantic legend of two lovers, the Cowherd and Weaver Girl.

A lot of couples go on romantic getaways and exchange gifts. Chinese companies actively market their goods during the Qixi Festival by emphasizing themes of romance and love. For example, jewelry, flowers, and chocolates are popular gifts.

💕 Discover what Qixi is and what kind of activation you can prepare 

 

Qixi China

September

 

September 10: Teachers’ Day

In China, Teacher’s Day is a significant holiday. Students all over the country honor their teachers by giving them flower bouquets, cards, paintings, or performances of songs and dances.

In all Chinese schools, in mainland China and abroad, teachers’ day will be celebrated through meetings, ceremonies, and speeches.

 

September 29: Mid-Autumn Festival  (中秋节 / zhōngqiū jié)

The Mid-Autumn Festival is a traditional Chinese holiday that falls on the 15th day of the 8th month of the lunar calendar. Chinese celebrate this festival with family reunions, lanterns, and mooncakes.

Brands in China use the Mid-Autumn Festival for marketing, with campaigns featuring mooncakes, lanterns, and family themes. Some brands collaborate with celebrities for added appeal.

🥮 Have and eat your (moon) cake – what is Mid-Autumn Festival and Why You Should Pay Attention

 

 

 

October

 

October 1 – 6: National Day / Golden Week (国庆节 / guóqìng jié)

National Day in China is celebrated on October 1st to commemorate the founding of the People’s Republic of China. The holiday is marked by a grand military parade in Beijing and large-scale celebrations throughout the country, including fireworks displays and cultural performances

We recommend preparing a suitable greeting for your Chinese socials.

 

October 23: Double Ninth Day

The Double Ninth Festival, also known as the Chongyang Festival, is a traditional Chinese holiday that falls on the ninth day of the ninth month of the lunar calendar.

People celebrate this festival by climbing mountains, drinking chrysanthemum wine, and eating zongzi, which is a traditional rice dumpling.

Chinese traditionally believed that these activities will help prevent disease and prolong life. The holiday has also become a time for family reunions and honoring one’s ancestors.

 

November

 

November 11: Double 11 (双十一 / shuāng shíyī)

Double Eleven, also known as “Singles’ Day,” The holiday began as an informal observance for single people but has since grown to become the world’s largest e-commerce shopping event.

All retailers in China, such as Alibaba’s Tmall and JD.com, offer significant discounts and promotions on this day.

11/11 has become widely popular to buy all kinds of goods, from electronic devices to clothes and household items. The sale has also become a global phenomenon, with many international brands taking part.

🛍 Read how the Singles Day is Evolving in Recent Years and Why Discounts Won’t Work Anymore

11/11 Singles Day China

November 23: Thanksgiving

Firstly, Thanksgiving is not an official holiday in China. It is not a traditional holiday, but some expatriate communities and international schools celebrate it. In addition, many western-style supermarkets and restaurants in major cities will have Thanksgiving meal options for those looking to celebrate.

 

December

 

December 12: Double 12

Double 12 is an online shopping festival in China, similar to Cyber Monday in the United States. The event was popularized by e-commerce giant  JD.com as an event to counter and compete with Singles Day (November 11th).

As a result, it’s now the second-largest shopping festival in China. During the event, retailers offer large discounts and promotions to customers, and it’s a major day for consumers to purchase all kinds of goods.

 

December 22: Winter Solstice (冬至)

The winter solstice, or “Dongzhi” in China, marks the shortest day and longest night of the year. It is a time for balancing yin and yang energy through foods like glutinous rice balls.

Families gather to celebrate and honor ancestors. Chinese also practice traditional customs such as staying up late, eating glutinous rice, and offering sacrifices to the kitchen god.

 

December 24 – 25: Christmas

Christmas is often celebrated in a more commercial and westernized way, with the exchange of gifts and the decorating of Christmas trees. Despite the fact that some Chinese Christian communities across the country celebrate Christmas with church services and family gatherings, it’s safe to assume that currently, Christmas is a purely commercial holiday.

🎄 Check how Christmas Evolved in the Recent Years

In big cities, there are Christmas markets, shopping malls, and department stores holding Christmas-themed events and decorations.

🎅 Don’t Forget to Check Our Review of The Most Interesting Christmas Campaigns This Year and Save it for Later

 

In conclusion, a marketing calendar is a powerful weapon in the arsenal of any business looking to make a splash in the dynamic and fast-paced Chinese market. Therefore businesses should stay ahead of the curve and capitalize on the enormous opportunities that China has to offer by effectively planning and executing their marketing campaigns.

If you want to know more about marketing practices 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