Exploring Prospects: An Overview of Recent Developments in China

1.Chinese youth have a new zoo fascination. How are brands engaging?

  • The zoo craze in China aligns with youngsters’ pursuit of a slower nature-connected lifestyles as zoos are becoming increasingly humanized and animal centered, making them more appealing to visitors.

  • This new craze offers a wide range of new opportunities for brands to connect to the Chinese youth emotions and new aspirations.

  • Zoos are being transformed into complex leisure parks, offering a diverse range of experiences to satisfy different demands, both online and offline.

Link: https://jingdaily.com/posts/chinese-youth-have-a-new-zoo-fascination-how-are-brands-engaging

2. The ascent of social commerce this 618: Douyin, Xiaohongshu

  • Douyin’s ecommerce arm grew rapidly, achieving significant sales and engagement during the 618 Shopping Festival, challenging established platforms like Tmall.

  • Many beauty brands achieved higher sales on Douyin than on Tmall, with several brands surpassing $13.7 million (100 million RMB) in sales.

  • Xiaohongshu saw a 5.4-fold increase in order volumes from live streaming sessions during 618, driven by a strategic reorganization.

  • Both Douyin and Xiaohongshu exemplify the shift towards interest-driven e-commerce, as such to boost sales brands need to leverage social media to enhance consumer engagement and sales.

Link: https://jingdaily.com/posts/the-ascent-of-social-commerce-this-618-douyin-and-xiaohongshu

3. Bye Barbie, hello Dune: China’s key fashion trends for 2024

  • In 2024, Chinese fashion trends are heavily influenced by nature, with plant-themed wear and Tyndall styles gaining popularity.

  • Despite a shift towards natural aesthetics, global pop culture still significantly impacts Chinese fashion microtrends, inspiring bold, empowering outfits.

  • Although microtrends are transient, brands can speak to Chinese consumers’ desire to immerse themselves in nature by hosting outdoor activities and developing products with features that enhance outdoor experiences, such as UV protection.

  • To capture the girlcore trend, brands can partner with Chinese designers who specialize in hyper-feminine aesthetics, such as Shushu/Tong, to create exclusive collections.

  • With retro styles like grandpacore in fashion, brands can consider teaming up with China’s elderly fashion KOLs, but they should be mindful of the government’s crackdown on online displays of wealth.

Link: https://jingdaily.com/posts/china-online-fashion-trends-summer-spring-2024-

 

4. 3 Trends of Little Red Book Marketing in 2024

  • Livestreaming is booming: Little Red Book stores are seeing a big rise in sales thanks to livestreaming. More brands are using livestreaming to connect with customers, and it’s driving significant sales growth.

  • Foreign brands need to localize more: There’s a growing trend of national pride among Chinese consumers, so foreign brands need to localize their content more than ever. This means adapting their messaging and visuals to resonate with the Chinese audience.

  • Rich user engagement: Little Red Book boasts a much higher level of user engagement compared to other platforms like Instagram. This means brands can get valuable feedback directly from consumers, helping them understand niche markets and manage any potential crises.

Link: https://walkthechat.com/3-trends-of-little-red-book-marketing-in-2024/

5. Pet Economy in China: Brands celebrate ‘Children’s Day for pets’ to leverage their influence

  • Pet consumption has been tapped and segmented, comparable to half of the parent-child consumer demand

  • On the day after Children’s Day, Taobao launched the “Guardian Old Babies Programme” in conjunction with Midas Pet Nutrition and Royal Canin.

  • In big cities, pets are becoming the centre of young people’s lives, and pet-friendly businesses are more likely to be supported by young customers.

  • Recently, Taobao also started to look for a “spokescat” across the entire network. After several rounds of fierce competition, the final winner of the “spokescat” will join Alibaba to become the first cat employee and get a 1.02 million RMB (approx. 0.14 million USD) cash prize.

Link: https://daoinsights.com/works/pet-economy-in-china-brands-celebrate-childrens-day-for-pets-to-leverage-their-influence/

6. Blending Sports With Travel, Chinese Fans Set Sights on Paris 2024

  • Chinese sports enthusiasts are combining their passion for athletics with travel plans to Europe for the Paris 2024 Olympic.

  • Social media and travel platforms play a significant role in this trend, with packages like Fliggy’s “Riverside Package” including a premium view of the opening ceremony and opportunities to interact with Olympians. Flight bookings to Paris surged by 240% and hotel reservations by 180%, driven by the growing trend of sports tourism.

  • Two users’ journey to Paris travel plan highlighted in this articles: “ …the influential role of social media in boosting sports fandom, with more individuals appreciating and following specific sports. ”

“I searched for numerous posts and guides on Xiaohongshu (the lifestyle app), which helped me navigate these challenges…”

  • Here are some insights for planning digital content this summer, focusing on connections to Paris 2024. Paris travel recommendations, with its food and culture will be popular, and a lot of memes will circulate on digital platforms during the event. Platforms like Xiaohongshu will prioritise related topics and boost their visibility, so we can prepare relevant posts accordingly and advise our clients to pay special attention to them.

Link: https://www.sixthtone.com/news/1015299

 

Identifying Opportunities: Delving into China’s Latest Updates

1.Beijing asks Tencent to lower WeChat’s mobile payment market share

  • Tencent Holdings has been asked by China’s regulators to lower the mobile payment market share of its WeChat app. The directive is aimed more at the market share for in-person payments made by scanning QR codes than for online shopping.

  • It is not clear whether Tencent was given any precise numerical target to meet, but one person familiar with the situation said, “WeChat is not targeting user expansion, and it is very cautious about the potential risks of growing too big.

  • China’s mobile payment market is dominated by two players, WeChat Pay and Alipay, even though there are around 185 non-bank payment institutions in the world’s largest cashless society.

  • WeChat is ahead of Alipay in terms of market share by a ratio of around 3:2. In terms of the number of transactions, WeChat has an even higher share, as there are more small-value transactions on the app.

  • WeChat has a smaller marketing team than Alipay and has been offering fewer payment discounts than it once did, but the all-in-one app remains extremely popular throughout the country. It has reached even older users in remote areas, who tend not to have Alipay accounts and who regularly use WeChat to chat and shop. WeChat has 1.36 billion monthly active users.

Link: https://asia.nikkei.com/Business/Technology/Beijing-asks-Tencent-to-lower-WeChat-s-mobile-payment-market-share

2. Scratch card effect? Young people find solace in instant lottery as cards sell out

  • Luxury fashion brands in China are going beyond just physical stores. They are creating a more well-rounded approach that considers both cultural integration and technological advancements in e-commerce.

  • This strategy combines partnerships with Chinese cultural institutions, like art museums, with a strong focus on e-commerce.

    • Luxury brands are partnering with Chinese art institutions: The article mentions Chanel’s collaboration with the Power Station of Art museum to cultivate a stronger association with art and culture in China.

    • E-commerce is a major focus: LVMH, a giant luxury fashion group, is partnering with Alibaba Cloud to leverage their cloud solutions and artificial intelligence for an enhanced e-commerce experience in China. This includes improving their omnichannel presence, data collection, and overall tech infrastructure.

Link: https://jingdaily.com/posts/from-museums-to-e-commerce-luxury-fashion-s-multi-pronged-approach-to-china

 

3. Dairy brand Yili unveils two new low carbon milk products, furthering sustainability commitment

  • Innovative Product Development: Yili introduced low-carbon milk products utilizing feed technology that cuts methane emissions by up to 30%.

  • Sustainable Packaging: They’ve adopted reduced aluminum foil and ink in packaging, significantly lowering the products’ carbon footprint.

  • Youth Engagement: Yili targets youth with environmentally friendly products to instill sustainable habits early.

  • Comprehensive Sustainability Goals: The ‘WISH 2030’ system outlines Yili’s decade-long commitment to sustainable development.

  • Global and Local Integration: Yili operates with a global reach yet ensures local adaptation in its sustainability practices.

Link:https://daoinsights.com/news/dairy-brand-yili-unveils-two-new-low-carbon-milk-products-furthering-sustainability-commitment/

4. Is ‘20 minute parks’ China’s version of forest bathing?

  • Chinese youth are seeking rejuvenation and spiritual healing in parks, with the hashtag “20-minute park effect” gaining over 131 million views on Xiaohongshu.

  • China aims to expand the number of urban green spaces, with Shanghai planning to open about 200 parks in the next year.

  • Many young Chinese report that spending time in parks improves their mood and overall well-being, reflecting a shift towards slower living amid intense work conditions.

  • Brands can leverage the popularity of parks to engage with consumers in a relaxed, spacious environment, which can positively influence perceptions of the brand.

  • Beyond hosting activities and pop-ups in parks, brands should center their messaging around Chinese consumers’ desire for quiet, wellness, and a reconnection to nature, as evidenced during the May Day holidays.

Link: https://jingdaily.com/posts/is-20-minute-parks-china-s-version-of-forest-bathing

 

5. Goodbye facekinis: Trendy sun protection takes over China

  • By 2026, the sun protection apparel market is expected to reach a value of approximately 100 billion RMB ($13.8 billion), fueled by rising skin health awareness and increased participation in outdoor sports.

  • There is a notable shift in consumer preferences towards sun protective clothing that is not only functional but also stylish, influenced by Chinese brands like Bosideng and online fashion trends.

  • Although Chinese brands are quicker at adapting to consumer trends, global brands like Nike and Uniqlo have opportunities to compete in the Chinese market by leveraging technological innovation and unique product designs.

  • Emphasizing the versatility and convenience of sun protective clothing compared to sunscreen (e.g., no need for reapplication, less skin irritation) can appeal to active consumers engaged in outdoor activities like hiking and camping.

Link: https://jingdaily.com/posts/china-sun-protection-wear-trends-2024

6. Xiaohongshu: the Citywalk trend is still vibrant

“Urban trip” related content got 240% growth on Xiaohongshu, around 3 million posts were related to Citywalk last year. This year, we have “溜溜生活”,  which means your life is like a citywalk.

  •  Xiaohognshu brought this topic from online to offline. They invited diverse category brands and created an instant pop-up bazaar with food and art in Guangzhou.

  • Over 2 billion exposure were generated during the event, and the clicks on this topic exceeded 300 million. Their offline bazaar got more than 50,000 visitors in 3 days.

  • Major brands are tapping into it and engaging with the younger generation to unlock growth opportunities.

  • It would be nice to seize the opportunity and make the brands involved in the trend in order to get more exposure and raise awareness.

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

 

7. Young Chinese Have Almost No Concerns About AI, Survey Finds

  • China’s younger generations appear to be embracing generative AI with few reservations, according to the report by the research institute.

  • According to the report, the top reason young Chinese cite for favoring generative AI is its ability to improve their work efficiency.

  • Young Chinese hold overwhelmingly positive attitudes toward the rise of generative artificial intelligence and are mostly concerned about how to profit from the new technology

  • People said that AI bots made good conversation partners because they didn’t make them feel awkward, responded quickly, and were willing to chat about anything.

Link: https://www.sixthtone.com/news/1015263

 

8. Balenciaga Spring 2025 Collection host on May 30, 2024, Shanghai created buzz

  • Balenciaga’s Spring 2025 show in Shanghai highlights the brand’s strategic focus on China, a crucial market known for its strong support of the brand.

  • The runway in the sudden rain created buzz in Chinese social media platforms.

  • The Shanghai show celebrated the brand’s couture offerings with 10 gowns crafted just for this event, generating significant social buzz.

  • Innovative collaborations with Alipay and a famed local restaurant nods to a robust localization strategy.

Link:https://jingdaily.com/posts/demna-s-vision-shines-at-balenciaga-s-shanghai-runway#701bdb9eeee3