RedNote Surges to No. 1 on U.S. App Store Amid TikTok Ban Concerns

January 16, 2025

As TikTok faces potential shutdown in the U.S. on January 19 due to ownership concerns, many “TikTok refugees” are seeking alternative platforms, and a new Chinese app is making waves in the American market. Xiaohongshu, known as RedNote in English, has skyrocketed to the No. 1 spot for free apps on the U.S. App Store, also claiming the top position in the Social Networking category for iPhone apps. This surge reflects a growing interest in the platform, as TikTok creators encourage their followers to explore alternatives in the wake of uncertainty.

RedNote has become the top downloaded app in the U.S

Why Is Xiaohongshu Gaining Momentum?

Xiaohongshu, originally launched in 2013, has evolved into a robust platform that resonates with creators and users alike. Often referred to as China’s answer to Instagram, the app combines the aesthetics of Pinterest with social shopping features, making it a compelling alternative for those seeking a new digital home.

Here are some key factors driving Xiaohongshu’s rise:

  • A Creator-Friendly Layout: With a design reminiscent of Pinterest, Xiaohongshu offers creators an intuitive and visually appealing interface to share content.
  • Social Shopping Features: The platform integrates e-commerce capabilities, allowing users to discover and shop products directly, enhancing the creator monetization potential.
  • Viral Growth: During the COVID-19 pandemic, Xiaohongshu’s popularity surged among younger Chinese users. Today, it boasts 300 million monthly active users, with 79% of them being women.

Xiaohongshu by the Numbers

  • User Base: 300 million monthly active users.
  • Funding: The app has raised $917 million in venture funding from major investors like Tencent, Alibaba, ZhenFund, and DST.
  • Valuation: Reportedly valued at $17 billion following a 2024 secondary share sale.
  • Projected Profits: Expected to exceed $1 billion in 2024, signaling its robust growth trajectory.

RedNote Shanghai Office

Opportunities for Creators

Xiaohongshu’s growth presents exciting opportunities for creators:

  • Content Diversification: The app’s unique mix of social networking and shopping enables creators to explore new types of content and revenue streams.
  • Early Adoption Advantage: With its growing popularity in the U.S., early adopters can carve out a niche before the market becomes saturated.
  • Supportive Ecosystem: Backed by substantial funding and a focus on e-commerce, Xiaohongshu is positioned to provide tools and features that empower creators to thrive.

Challenges and Considerations

While Xiaohongshu’s rise is notable, its long-term sustainability in the U.S. remains uncertain:

  • Regulatory Scrutiny: As a Chinese app operating in the U.S., Xiaohongshu could face increased scrutiny from authorities.
  • Competition: The app will need to differentiate itself further from established platforms like Instagram and Pinterest.
  • Cultural Adaptation: To succeed in the U.S., Xiaohongshu must adapt its offerings to align with local user preferences and behaviors.

What’s Next for Xiaohongshu?

With its viral momentum and robust features, Xiaohongshu has the potential to disrupt the U.S. social networking landscape. However, its future will depend on how well it navigates regulatory challenges and adapts to the preferences of an American audience.

If you’re interested in leveraging Xiaohongshu for your brand’s growth, contact us today to explore tailored strategies that align with your goals!

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How Xiaohongshu’s New AIPS Model Redefines Grass-Planting Marketing

January 10, 2025

Xiaohongshu 2025 Will Business Summit

At the 2025 WILL Business Conference, Xiaohongshu unveiled a groundbreaking marketing framework: the “AIPS Audience Asset Model.” This innovation aims to transform how brands measure and optimize their grass-planting (content-driven marketing) campaigns on Xiaohongshu. By integrating process measurement and outcome measurement, Xiaohongshu has equipped brands with actionable insights to enhance their marketing efficiency. Here’s a breakdown of the key takeaways and their implications for brands.

Understanding the AIPS Model

The “AIPS Audience Asset Model” divides audience engagement into five categories:

  1. Awareness – General recognition of the brand.
  2. Interest – Initial interest in products or services.
  3. True Interest (TI) – Deep engagement and potential intent to purchase.
  4. Purchase – Conversion into actual sales.
  5. Share – Advocacy through post-purchase sharing and recommendations.

Xiaohongshu's AIPS Audience Asset Model

This segmentation allows brands to evaluate and optimize their strategies at every stage of the consumer journey. The model identifies more immediate and relevant user behaviors compared to traditional conversion metrics, offering brands a comprehensive view of audience engagement.

Measuring Grass-Planting Success

Xiaohongshu’s measurement framework operates on two levels:

1. Process Measurement

The AIPS model focuses on audience behavior within Xiaohongshu’s ecosystem, helping brands understand the nuances of user decision-making. For instance, while low-cost fast-moving consumer goods (FMCG) may require a focus on awareness to drive quick conversions, high-ticket items necessitate a deeper engagement with “Interest” and “True Interest” audiences.

Process Mesurement

2. Outcome Measurement

Outcome measurement is achieved through two primary methods:

  • Grass-Planting Alliance: This initiative integrates Xiaohongshu’s platform data with external e-commerce platforms like Taobao, JD, and VIP.com. Brands can track the direct impact of Xiaohongshu’s campaigns on off-platform conversions. For example, Xilinmen identified a high-converting audience segment (“refined white-collar workers”) and optimized their budget, achieving an ROI of over 15 during the 618 shopping festival.
  • First-Party Data Collaboration: Participating brands can analyze their omnichannel data to gain deeper insights into business performance. Xiaohongshu’s “Lingxi” platform now supports 5,000+ brands, offering accessible tools for data-driven optimization.

Outcome Mesurement

ROI (T+x): A New Way to Measure Success

One of Xiaohongshu’s key insights is the importance of ROI over time (T+x). While traditional ROI focuses on immediate returns, Xiaohongshu advocates for analyzing ROI across the consumer decision-making period. For example:

  • A ¥3,000+ robotic vacuum cleaner required 45-60 days to reach a tipping point in ROI due to the complexity of consumer decisions.
  • A ¥100 body oil, initially estimated to have a 7-day decision cycle, revealed a true cycle of 60-90 days. This discovery helped the brand target high-value audiences like expectant mothers, resulting in a 20% year-on-year GMV growth during Double 11.

ROI (T+x)

Precision and Granularity: The Keys to Success

Xiaohongshu’s CMO Zhiheng emphasized that measurement is a means to an end: optimizing marketing strategies. The two pillars of this optimization are:

  • Granularity: Understanding consumer behavior, needs, and decision-making contexts.
  • Precision: Matching the right products with the most suitable influencers, content, and marketing channels.

Xiaohongshu's CMO Zhiheng

A compelling example comes from an outdoor jacket campaign. Xiaohongshu tailored content to specific mountains (e.g., lightweight jackets for Mount Tai’s night hikes versus UV-protective gear for Mount Siguniang). This hyper-targeted approach resulted in a top-four search ranking for high-end jackets and a 40% reduction in e-commerce platform costs.

Implications for Brands

Xiaohongshu’s AIPS model and measurement solutions mark a shift toward personalized, data-driven marketing. By understanding niche audiences and aligning strategies with consumer decision-making cycles, brands can achieve better ROI and long-term growth.

Interested in unlocking the full potential of Xiaohongshu for your brand? Reach out to us today to explore tailored strategies that drive results!

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Hermès’s Innovative WeChat Campaign: Bridging Digital and Physical Worlds in China’s Luxury Market

December 24, 2024

Introduction to Digital Innovation at Hermès

In an era where digital transformation shapes marketing strategies, Hermès has set a benchmark in China’s dynamic market. This blog post explores Hermès’s recent groundbreaking campaign that harmoniously blends offline exhibitions with interactive WeChat Mini Programs, setting new standards for engaging consumers in China’s competitive luxury landscape.

海报

Poster

Exploring the Campaign’s Mechanics

The campaign revolved around an engaging scavenger hunt/escape room that took place during an exclusive offline exhibition. Participants embarked on a journey through the venue, tasked with discovering horse-themed items—a tribute to Hermès’s equestrian roots. Each item was cleverly integrated into the exhibition, encouraging visitors to explore in-depth.

Hermes Exhibition

Inside The Exhibition

Digital Integration via WeChat Mini Program

The brilliance of this campaign was further amplified through its digital strategy, utilizing a WeChat Mini Program. Participants used this platform to log the items they discovered by clicking the corresponding images. This seamless integration of digital tools ensured a smooth and engaging user experience, highlighting the potential of WeChat Mini Programs in bridging online and offline worlds.

wechat mini program

WeChat Mini Program

Rewards and Incentives

To add excitement, Hermès offered exclusive branded rewards to those who successfully completed the scavenger hunt. This strategy not only enhanced participation rates but also created a memorable experience that participants were likely to share across their social networks.

激励

Rewards and Incentives

Key Learnings from Hermès’s Strategy

  1. Seamless O2O Integration
    • The campaign is a prime example of effective Online-to-Offline (O2O) integration, which keeps users engaged by connecting digital actions with physical experiences. This approach is particularly resonant in China’s retail environment, where digital engagement can significantly amplify physical marketing efforts.
  2. Gamification Drives Engagement
    • By gamifying the exhibition experience, Hermès managed to transform a traditional marketing event into an interactive adventure. Gamification is a powerful tool in digital marketing, especially on platforms like WeChat, where user engagement can directly translate into higher brand loyalty and customer retention.
  3. Narrative-Driven Branding
    • Hermès’s focus on storytelling, by integrating its brand heritage into the campaign, helped reinforce its identity and values. This strategy not only enriched the consumer experience but also bolstered the brand’s image in the eyes of Chinese consumers, who value rich, narrative-driven interactions.

Conclusion: A Model for Future Campaigns

Hermès’s campaign demonstrates the profound impact of integrating innovative digital marketing strategies with traditional methods. For brands looking to make a mark in China’s luxury market, leveraging social media platforms like WeChat through Mini Programs offers a direct route to consumer engagement.

This case study serves as a reminder of the effectiveness of combining physical and digital experiences in a marketing strategy, especially in a highly digital society like China. Brands aiming to expand in the Chinese market should consider similar integrations to captivate and engage with their audience effectively.

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Kuaishou: Overview of China’s Popular Short Video Platform

September 23, 2024

Kuaishou, often referred to as “Kwai” in English, has become a significant player in China’s short video landscape, rivaling other giants like Douyin (known as TikTok internationally). With its roots tracing back to 2011 as a GIF creation app, Kuaishou evolved into a full-fledged short video platform by 2013. Over the years, it has grown exponentially, becoming a go-to app for millions of users across China, especially in lower-tier cities and rural areas.

 

Differentiation from Competitors

Kuaishou stands out from its competitors, particularly Douyin, in several key ways. While Douyin has gained popularity primarily among users in China’s more developed, urban areas, Kuaishou has carved out a niche in lower-tier cities and rural regions. This focus has allowed Kuaishou to cultivate a unique community atmosphere that is more intimate and less commercialized than Douyin.

One of the most significant differences is the content recommendation algorithm. Kuaishou’s algorithm prioritizes user relationships and interactions over purely viral content. This means that Kuaishou users are more likely to see content from people they follow or have interacted with, leading to a more community-driven experience. In contrast, Douyin’s algorithm tends to push trending content, creating a more entertainment-focused environment. This revamped “Laotie” vibe on the platform. Originally used in Northern China to describe a bond as close as brotherhood, “Laotie” is now widely adopted by Kuaishou users, symbolizing the deep trust and strong connection between creators and their fans.

Kuaishou Gala

Kuaishou Laotie Gala poster

 

Another distinguishing factor is Kuaishou’s emphasis on inclusivity and authenticity. The platform encourages users to share their daily lives, often in raw, unfiltered formats. This approach has resonated particularly well with users outside of China’s major urban centers, where people are drawn to content that reflects their own experiences and lifestyles.

Core Features and Functions

Kuaishou offers a rich set of features that cater to a wide range of user needs. Among the most popular features is live streaming, which has become a cornerstone of the platform. Kuaishou’s live streaming feature allows users to broadcast their lives in real-time, attracting audiences that can engage through comments, virtual gifts, and other interactive tools. The platform’s live streaming function is particularly popular among influencers and content creators who use it to build and maintain a loyal fan base.

E-commerce integration is another significant aspect of Kuaishou’s appeal. The platform has seamlessly merged content creation with online shopping, allowing users to purchase products directly from the app. This has given rise to a new form of social commerce, where influencers and everyday users alike can sell products during live streams or through their video content. Kuaishou’s e-commerce ecosystem has been particularly successful in driving sales for small businesses and local brands, further strengthening its ties to rural and lower-tier markets. Total e-commerce GMV in first quarter 2024 was RMB288.1 billion, representing an increase of 28.2% from RMB224.8 billion for the same period of 2023.

Screenshots from Kuaishou live streaming channel

Screenshots from Kuaishou Live Streaming

Community engagement is at the heart of Kuaishou’s user experience and helps content creators in Kuaishou win high-stickiness fans. The platform fosters a sense of belonging through its user-generated content model, where anyone can become a creator and share their stories. Unlike other platforms that may prioritize professional or highly polished content, Kuaishou celebrates authenticity. This has created a diverse content landscape where users can find videos ranging from everyday life moments to niche hobbies and interests.

 

Key Statistics and Market Presence

Kuaishou boasts impressive statistics that underline its dominance in the market. As of the first quarter of 2024, the platform had over 600 million monthly active users (MAUs), with daily active users (DAUs) exceeding 300 million. These numbers reflect a broad and engaged user base, with users spending an average of 85 minutes per day on the app. Kuaishou’s user base is not only vast but also highly active, with a significant portion contributing content regularly.

Kuaishou’s market presence extends beyond China, with a growing user base in Southeast Asia, Latin America, and other regions. The company’s successful IPO in February 2021 on the Hong Kong Stock Exchange further solidified its status as a global player, raising over $5 billion and giving it a market capitalization that briefly surpassed $160 billion.

 

User Demographics and Popularity

Kuaishou’s user base is diverse, but it is particularly popular among users in China’s lower-tier cities and rural areas. This demographic skews younger, with a significant portion of users aged 18 to 35. The platform’s appeal in these regions can be attributed to its focus on relatable content and community-building features that resonate with users outside of China’s metropolitan hubs.

In contrast to platforms that cater primarily to urban, affluent users, Kuaishou has succeeded in creating a space where people from all walks of life can connect and share their experiences. This has made it a cultural force in China, reflecting the voices and stories of those often underrepresented in mainstream media.

 

Future Potential

Kuaishou has taken major steps into the AI industry with the introduction of the Kling Large Model, a cutting-edge AI system that generates high-quality videos from text prompts. This technology is aimed at boosting Kuaishou’s ultrashort drama sector, where demand far outweighs supply. With 94 million users watching more than 10 episodes daily, Kuaishou is addressing the content shortage by increasing the number of creators and enhancing their productivity by AI technology. A standout example is Chen Xiao’s short drama The Mirror of Mountains and Seas: Breaking Waves, which utilized the Kling model alongside other tools. The drama received over 52 million views, becoming the platform’s top ultrashort drama.

 

The Mirror of Mountains and Seas Kuaishou

The Mirror of Mountains and Seas Kuaishou

The Mirror of Mountains and Seas Kuaishou

Conclusion

Kuaishou has firmly established itself as a major player in the global short video landscape, offering a unique platform that blends content creation, live streaming, and e-commerce. Its focus on community, authenticity, and inclusivity has allowed it to thrive in markets where other platforms may struggle to gain traction. As Kuaishou continues to expand its reach both in China and internationally, it remains a platform that empowers users to share their stories, build connections, and engage with content that truly reflects their lives.

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Xiaohongshu RED Marketing for Brands 2024

May 22, 2024

What began in 2013 as an online guide for Chinese shoppers traveling overseas has evolved into China’s answer to Instagram and Pinterest: “XiaoHongShu” (小红书) or “Little Red Book,” known simply as RED. This dynamic platform offers a one-stop destination for users to discover, share, review, and purchase lifestyle products and services, with content spanning health, beauty, fashion, travel, and entertainment. Primarily user-generated, RED’s content is perceived as authentic and trustworthy, featuring diverse formats such as photos, text, videos, and livestreams. 

Now RED is a thriving ecosystem where users seek inspiration, recommendations, and genuine connections. With over 260 million monthly active users, predominantly Gen Z females residing in China’s bustling cities, RED marketing presents a golden opportunity for brands to foster high engagement and meaningful customer dialogues building genuine trust with the audience. Let’s delve into how brands can effectively tap into this vibrant community and navigate the nuances of marketing on Xiaohongshu.

RED Key Data

Understanding RED’s Unique User Demographics and Platform Dynamics

RED’s user demographics consist primarily of educated, high-income individuals with a penchant for lifestyle, fashion, and beauty. The platform’s blend of social sharing and e-commerce creates a unique environment where users seek authentic recommendations and peer-driven content. Understanding the platform’s nuances is crucial for brands looking to navigate RED’s community-driven ecosystem successfully. Emphasizing authenticity, trustworthiness, and genuine connections is key to building rapport with RED users and driving meaningful engagement.

 

Navigating Account Setup and Marketing Strategies

Opening an account on RED is the first step towards establishing a presence on the platform. Brands can initiate marketing efforts by providing free samples to regular users or investing in paid collaborations with KOLs to generate buzz and awareness. While RED marketing can drive sales, it’s essential to understand that the platform’s primary focus is on fostering brand engagement and building a loyal community rather than high-volume transactions. Brands should adopt a strategic approach, balancing direct marketing initiatives with content-driven strategies to resonate with RED’s user base effectively.

5 reasons to Leverage RED as a Lifestyle Brand in China

RED marketing features

Exploring Top Account Content: Insights and Trends

The top accounts on RED often publish content that resonates with the platform’s user base, ranging from lifestyle tips and fashion trends to beauty recommendations and travel experiences. These accounts leverage visual storytelling, user-generated content, and influencer collaborations to captivate their audience and foster engagement. As a result, understanding the content preferences and consumption habits of RED users, brands can tailor their marketing strategies to align with the platform’s ethos and drive impactful results.

Post organic content by leveraging global material and localizing it for the Chinese audience. Stay attuned to China’s hot topics and trends, creating relevant hashtags to enhance visibility. Use specific hashtags for keyword searches and optimal placement within the platform’s algorithm. This approach ensures your content resonates with local users while maximizing reach and engagement on RED.

We suggest promoting your best-performing content with ads to further enhance reach and achieve optimal results. However, RED offers a limited range of targeting categories for ads. The platform supports four types of ad formats: pop-up ads, banner ads, keyword ads, and in-feed ads.

Learn more about advertising on RED in our previous post

 

RED Marketing: Top Strategies

Engaging with RED Users: Leveraging Influencer Marketing and Live-streaming

Firstly, influencer marketing and live-streaming are two powerful tools for brands to connect with RED users authentically. Key Opinion Leaders (KOLs) and Key Opinion Customers (KOCs) wield significant influence on the platform, capable of initiating trends, expanding brand visibility, and driving conversions. Collaborating with these influential figures allows brands to leverage their credibility and tap into their loyal follower base. Live-streaming adds another dimension to engagement, providing users with an interactive platform to interact, ask questions, and make purchases in real-time during influencer-led sessions.

Secondly, implementing an influencer seeding process involves gifting products to influencers in exchange for posts. It’s a crucial and cost-effective RED marketing strategy. By gifting high-quality influencers with new products, brands can build strong relationships and gauge an influencer’s impact before entering official collaborations. This method increases consumer touchpoints, especially when influencers share your brand multiple times. Additionally, influencer seeding serves as a market survey, helping to identify the season’s hero product based on influencer popularity. This approach is effective regardless of an influencer’s size.

In this post, we explain how to establish your presence on RED

 

RED as a travel planning platform

RED is a catalyst for new behaviors, extending its influence beyond commerce and travel to shape user patterns. While online travel agencies remain essential for planning and booking trips, RED stands out in the pre-planning phase, with nearly 40% of travelers seeking outbound experiences using the platform. Travel content holds a prominent position on RED, showing remarkable growth alongside health and beauty content. Additionally, RED excels at driving conversions for lesser-known travel offerings, showcasing its adaptability and agility in influencing consumer behavior. 

Data Travalers China 2023

Conclusion: Maximizing Opportunities on Xiaohongshu (RED)

In conclusion, Xiaohongshu offers a wealth of opportunities for brands to connect with a highly engaged and affluent user base. By leveraging influencer marketing, live-streaming, and content-driven strategies, brands can establish a meaningful presence on the platform and drive brand awareness, engagement, and loyalty. Understanding RED’s unique environment is essential for brands looking to navigate the nuances of marketing on Xiaohongshu effectively. As brands continue to explore the potential of RED, fostering authentic connections and delivering value-driven content will remain paramount in driving success in this dynamic digital landscape.

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Discovering Opportunities: Exploring China’s Recent Updates

May 20, 2024

1. Shanghai takes the lead as Chinese coffee consumption averages 16 cups per year

  • China’s coffee industry amassed a staggering 265.4 billion RMB (approx. 36.66 billion USD) in scale last year, with an average per capita annual consumption of 16.74 cups
  • Coffee Carnival is running in Shanghai between 30 April to 4 May, alongside over 50 esteemed local coffee shops.
  • Additionally, takeaway, payment, and social media platforms initiated the “Drinking in the City” campaign in Shanghai, poised to invest nearly 100 million RMB (approx. 13.8 million USD) into the consumer market.
  • With a net increase of 118 shops, marking a 14% year-on-year rise, the total count of Starbucks outlets soared to 7,093.

LINK:https://daoinsights.com/news/shanghai-takes-the-lead-as-chinese-coffee-consumption-averages-16-cups-per-year/

2.What’s driving China’s unstoppable second hand luxury market?

  • China’s secondhand luxury market is tipped to grow to $30 billion (217 billion RMB) in 2025 from $8 billion (58 billion RMB) in 2020, with Gen Z and millennials (under 40) together accounting for more than 80 percent of the total number of secondhand luxury consumers
  • From a luxury brand point of view, perceived value on the secondhand market can have direct repercussions on reputation and desirability in the eyes of consumers.
  • Brands should not see the secondhand market as an adverse phenomenon, but encourage customers to trade in or resell their pre-owned items through authorized channels, ensuring that the brand retains control over the quality and authenticity of the products in the secondary market.
  • Luxury brands must monitor and manage their perceived value in the secondhand market, as it can impact their reputation and desirability among consumers. Digital marketing efforts should focus on maintaining brand authenticity and highlighting the enduring quality and heritage of their products.

LINK:https://jingdaily.com/posts/what-s-driving-china-s-unstoppable-secondhand-luxury-market#8548723daa5e

3. Decoding China’s $170 billion ‘romance economy’

  • China commemorates love on three separate holidays: the Western Valentine’s Day on February 14, the uniquely Chinese 520 Day on May 20, a celebration derived from internet slang where the numbers “520” phonetically resemble the words for “I love you” in Mandarin, and the traditional Qixi Festival, which usually falls in August.
  • China’s Gen Z consumers are a key element of the “romance economy,” responsible for 54% of related orders according to the “Romantic Economic Big Data Report” released in 2022.
  • Survey data from iiMedia Research in 2023 revealed that regardless of their relationship status – single, in a relationship, or married – over 90% of participants were eager to celebrate romantic festivals by presenting gifts to family and friends.
  • Notably, jewellery ranks as the number top gift category for coupled-up individuals on China’s romantic days.
  • Traditional gifts like flowers, personal care items, and beauty products remain favorites and “gift boxes” persist as a preference for consumers on seasonal occasions.
  • “Love-brain” (恋爱脑) has recently emerged as a trending term online. It centers on the idea that individuals often lose their emotional or financial rationality when in love. This phenomenon prompted the creation of the phrase “scolding to cure love brain” (骂醒恋爱脑) as a response. And in turn, this has sparked a new type of service.

LINK: https://jingdaily.com/posts/decoding-s-china-s-usd170-billion-romance-economy

4. Xiaohongshu: Unlock new opportunities in Chinese beauty market

Customers are getting more connected to Chinese culture and caring about value, which makes domestic beauty brands more popular. Younger consumers are stepping up as key players in the domestic beauty market.

  • Emergence of quality Chinese cosmetics: Domestic beauty annual sales surged around 10%, outperforming foreign cosmetics with a commanding market share of 50%.
  • Co-create content with the brands: Hundreds of celebrities and top KOLs embarked on the offline and online collaboration with a lot of brands.
  • Create a personalized IP Matrix: Xiaohongshu collaborated with more influential media like CCTV network and created more personalized IP/topics for brands.

LINK: https://mp.weixin.qq.com/s/4oAwT-Q0mtbWHGQtRYSPLg

5.ByteDance surprises AI rivals with ultra-low cost Doubao model:

  • ByteDance has surprised the artificial intelligence industry with the ultra-low cost of its Doubao model
  • The company said it is capable of processing 2 million Chinese characters, equivalent to 1.25 million tokens, for RMB 1 ($0.14).
  • OpenAI’s most advanced multimodal model, GPT-4o, also unveiled this week, comes in at $5 per million input tokens handled.

LINK:https://technode.com/2024/05/16/bytedance-surprises-ai-rivals-with-ultra-low-cost-doubao-model/

6. Which fashion campaigns for China’s 520 Day hit the mark?

  • Luxury fashion campaigns for China’s 520 Day focus on limited edition collections, celebrity endorsements, and creative storytelling, often in the form of mini videos.
  • Brands like Gucci and Saint Laurent tapped into Gen Z’s preferences by incorporating traditional Chinese elements and leveraging digital platforms for greater engagement.
  • 520 Day’s fusion of traditional Chinese culture with commercialism highlights the evolving landscape of celebrations and consumer behavior, emphasizing the importance of cultural resonance and meaningful experiences in luxury marketing strategies for brands looking to better connect with consumers.
  • These strategies aimed to blend cultural significance with contemporary marketing, enhance brand appeal and foster emotional connections with consumers.

LINK: https://jingdaily.com/posts/which-fashion-campaigns-for-china-s-520-day-hit-the-mark

7. 2024 May Day Holiday: The rise of small cities tourism and AI companions

  • Amid an economy yet to fully recover to pre-pandemic levels, this year’s May Day break underscores a notable trend towards tourism in lesser-known destinations.
  • On social media platforms like Xiaohongshu (RED), many young people are keen to explore counties and even aim to ‘visit Top 100 Counties of China’ as a novel approach to May Day travel.
  • Hong Kong has shifted its focus to cultural and artistic events, as well as large-scale concerts.
  • It is also worth mentioning Japan. With the Yen reaching a 34-year low against the US dollar during the holiday period, this made it more attractive for overseas tourists.
  • ‘AI companion’ emerged as a new trend in travel. This involves using AI technology to offer personalised travel assistance services, crafting tailored itineraries and services.

LINK:https://daoinsights.com/opinions/2024-may-day-holiday-the-rise-of-small-cities-tourism-and-ai-companions/

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Establishing Industry Expertise: Unleashing the Power of Zhihu’s Q&A and Brand Sector

January 4, 2024

In the dynamic realm of online marketing, staying ahead of the curve is essential for brand success. One platform that holds immense potential, particularly in the Chinese market, is Zhihu. 

Explore how to leverage Zhihu’s unique Q&A and Brand Sector format to position your brand as an industry expert. By incorporating informative content, engaging with the community, and strategically publishing product updates, you can harness the full power of this platform.

 

What is Zhihu?

Often called China’s Quora, Zhihu is an online content community where people come to find solutions, make decisions, seek inspiration, and have fun. Founded in 2011, it distinguishes itself from its competitors by offering high-quality questions and reliable responses. 

Brands typically open their own official accounts to spread brand awareness and industry knowledge and can either publish their own articles or respond to questions already asked by the public.

Zhihu China Quora

If you would like to learn more about the platform, check out our previous article introducing Zhihu:

🤔What is Zhihu? And 4 key benefits of using it

Developing Informative and Insightful Content:

The cornerstone of any successful brand positioning on Zhihu lies in the creation of content that is not just promotional but genuinely informative. Focus on addressing queries and pain points relevant to your industry. Craft answers that showcase your expertise and provide real value to the users. By becoming a go-to source for valuable information, you establish credibility and trust, crucial elements for brand success.

Remember, quality triumphs over quantity. Rather than inundating the platform with a barrage of posts, concentrate on producing well-researched and insightful content. This not only ensures that your brand stands out but also positions you as a reliable authority in your field.

 

Engaging with the Community:

Firstly, Zhihu is not just a platform for broadcasting; it’s a thriving community. Actively participate in discussions, answer questions, and build relationships with potential customers. Be genuine in your interactions, demonstrating a willingness to share knowledge and assist others. This approach not only helps build a positive brand image but also fosters a sense of community around your brand.

When engaging with the Zhihu community, be mindful of cultural nuances and preferences. Chinese consumers value authenticity, so tailor your responses to resonate with the local audience. By establishing a meaningful connection with users, you create a foundation for long-term brand loyalty.

 

Publishing Major Product Updates:

To solidify your brand’s standing as an industry leader, leverage Zhihu’s Brand Sector to publish major product updates. This dedicated space allows you to showcase your company’s advancements, innovations, and milestones directly to your target audience. Craft these updates in a way that highlights not just the features but also the benefits they bring to users.

 

Strive for a balance between informative and promotional content

While it’s essential to showcase your achievements, ensure that the messaging remains customer-centric. By framing product updates as solutions to common challenges or enhancements that elevate the user experience, you position your brand as a thought leader committed to addressing real-world needs.

In the competitive landscape of digital marketing, Zhihu emerges as a valuable platform for brands seeking to establish themselves as industry experts. By focusing on developing informative content, actively engaging with the community, and strategically sharing major product updates, you can unlock the full potential of Zhihu for your brand.

Therefore, As you embark on this journey, remember that success on Zhihu is not an overnight achievement. Consistency, authenticity, and a genuine commitment to adding value to the community are the keys to building a strong brand presence on this dynamic platform. So, seize the opportunity, embrace the unique features of Zhihu, and position your brand as a trusted authority in your industry.

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Decoding Gen Z: Navigating China’s Youth Market 

November 9, 2023

In the dynamic realm of modern marketing, connecting with the younger generation is paramount. China’s Gen Z, born approximately between 1995 and 2010, represents a demographic with unique behaviours, preferences, and digital habits. 

For businesses, understanding and effectively engaging with this audience is not only a strategic move but a necessity. In this blog, we will delve into the behaviours and preferences of China’s Gen Z population and explore strategies for engaging them effectively.

 

The Digital Landscape of Gen Z: Where to Connect

To effectively engage with Gen Z, businesses must first know where to find them. Gen Z is digitally savvy, and understanding the platforms they frequent is key. Three prominent platforms have garnered significant attention:

  1. WeChat: WeChat is an essential platform for connecting with Gen Z. Furthermore, this multifaceted platform offers messaging, social media, payment, and e-commerce features. Therefore, leveraging WeChat can help businesses create engaging content and build brand presence.
  2. Weibo: Often compared to Twitter, Weibo is another valuable platform. It’s a hub for real-time updates, trending topics, and viral content. Weibo can be an effective medium for brand engagement, particularly through influencer partnerships.
  3. Douyin (TikTok): The short-video platform Douyin, internationally known as TikTok, this platform has become a cultural phenomenon. Furthermore, it offers a creative and interactive space for brands to reach Gen Z, especially through engaging video content.
  4. RED: Xiaohongshu, known as “Little Red Book” or “RED,” is a popular social media and e-commerce platform in China. It enables users to share reviews, recommendations, and shopping experiences, making it a valuable resource for consumers seeking product information and lifestyle inspiration.

 

Strategies for Impactful Content Creation

Creating impactful content for Gen Z requires a nuanced approach. Here are some strategies to consider:

User-Generated Content: Firstly, encourage user-generated content as Gen Z enjoys co-creating with brands and sharing their experiences.

Short-Form Video: Secondly, short-form video content on platforms like Douyin is a powerful way to capture Gen Z’s attention. Keep it engaging and concise.

Storytelling: Thirdly, craft brand stories that resonate with their values and aspirations. Gen Z appreciates meaningful narratives.

Influencer Collaborations: Lastly, partner with influencers who align with your brand. Influencers can bridge the gap and connect with Gen Z authentically.

🤳 Discover more about the KOL (Key Opinion Leader) economy

Recently, Moutai, a prestigious brand of Chinese liquor (specifically baijiu), has successfully engaged with China’s youngsters in a cool and memorable way. As a result, it has effectively elevated its brand image and promoted itself among new consumers.

Moutai Ice Cream China's Gen Z

Moutai Ice Cream Exhibition

🥃 Read the Full Case Study on Moutai Marketing Strategies Targeting Gen Z

The Influence of E-Commerce on China’s Gen Z Purchasing Decisions

Secondly, e-commerce plays a central role in the purchasing decisions of Gen Z. They are digital shoppers who rely heavily on online platforms to make informed choices. To optimise your online presence for this audience, consider the following:

Mobile-First Approach: Ensure your online shopping experience is optimised for mobile devices. Gen Z shops on the go and demands a seamless mobile experience.

Interactive Shopping: Implement interactive features in your e-commerce platforms. Features like virtual try-ons, augmented reality, and chat support can enhance the shopping journey.

Transparency and Reviews: Gen Z values transparency and peer reviews. Make sure your product information is accurate, and consider integrating reviews and ratings into your e-commerce site.

Sustainability: Sustainability matters to Gen Z. Highlight your brand’s eco-friendly practices and products.

 

Establishing Brand Trust and Authenticity

Building brand trust and authenticity is crucial for engaging with Gen Z. They are discerning consumers who scrutinize brands closely. To achieve this, strategies include:

Social Responsibility: Engage in social and environmental initiatives and communicate your brand’s values and contributions.

Transparency: Be transparent about your practices, sourcing, and manufacturing. Gen Z values brands that are open about their processes.

Consistent Messaging: To begin with, ensure consistency in your brand’s messaging across all platforms. Mixed or contradictory messages can erode trust.

Engagement, Not Just Sales: Furthermore, focus on building relationships, not just making sales. Gen Z appreciates brands that engage with them on a personal level.

China’s Gen Z as Luxury Consumers

Gen z China luxury

In the ever-evolving landscape of consumer trends, Chinese Gen Z has emerged as a seasoned cohort of luxury consumers. Notably, having grown up in a rapidly modernizing China, they are not just digital natives but also well-versed in luxury brands and products. This generation displays a strong inclination towards individualism and self-expression, seeking unique and personalized experiences. Moreover, their consumption patterns reflect a combination of traditional values and modern sensibilities, making them discerning shoppers who value quality, authenticity, and brand reputation. They are no longer just aspirational buyers but are actively shaping the luxury market’s trends and narratives, demanding a seamless blend of online and offline experiences while prioritizing sustainability and ethical practices. This seasoned luxury consumer base poses both challenges and opportunities for brands looking to engage with them effectively and tap into their evolving tastes and expectations.

🛍️ Read more about China’s Youth Appetite for Luxury

In summary, China’s Gen Z represents a unique and influential demographic. Understanding their digital habits, preferences, and values is crucial for effective engagement. By leveraging the right platforms, creating impactful content, optimizing e-commerce experiences, and prioritizing trust and authenticity, businesses can unlock the potential of this discerning generation.

As we navigate the digital landscape and the preferences of the next generation, let us embrace this opportunity to connect with China’s Gen Z and build lasting, meaningful relationships between brands and this influential demographic. For further information, please feel free to contact us at contact@thewechatagency.com to learn more.

 

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The Evolution of Xiaohongshu, RED, into a Travel Platform

September 4, 2023

China’s Gen Z has found Xiaohongshu, also known as “RED”, to be a distinctive platform that resonates with them in the rapidly changing world of social media and e-commerce. Xiaohongshu stands out for its clever integration of influencer culture and retail. This is what draws in young customers looking for inspiration and authenticity. RED began as a shopping guide for wealthy mainlanders traveling abroad in 2013, but its development has been characterized by seismic shifts. This article will delve into Xiaohongshu’s evolution from a cross-border shopping platform to a thriving hub for travel inspiration, highlighting its impact on China’s digital landscape and the broader tourism industry.

📕 Little Red Book: Main Functionalities

Xiaohongshu RED Travel Tourism Content

From Shopping Guide to Social Travel Hub

RED embarked on its journey as a shopping guide, providing valuable insights to Chinese travelers visiting international destinations like Hong Kong, Thailand, Japan, and South Korea. Gradually, it embraced a new dimension by acknowledging users’ desires to do more than just window shop. The company capitalized on the growing trend of users wanting to purchase products endorsed by influencers and. celebrities. Then everyday consumers started to share their experiences on the platform. This transition led to the birth of a social e-commerce ecosystem, enabling Xiaohongshu to position itself as a pioneer in this emerging industry.

The platform’s evolution didn’t stop there. Over time, it expanded beyond its initial shopping-focused approach, transforming into a digital haven for travel and lifestyle enthusiasts. The 2020 China Tourism Industry Report revealed that Xiaohongshu had secured its position as the go-to platform for 64% of China’s wanderlust-driven individuals. This staggering popularity catapulted Xiaohongshu beyond conventional online travel agencies, underscoring its potential to redefine the market.

🌏 Reaching Chinese Tourists and Top Online Travel Agencies in 2023

AI-Powered Growth and Expansion

Firstly, Xiaohongshu harnessed the power of artificial intelligence and machine learning to enhance content distribution since 2016. This strategic move proved instrumental in captivating the preferences of young consumers, effectively driving the platform’s popularity. Two years later, the platform expanded its horizons by launching Puzhen Xiangli, a travel agency rooted in Shanghai. This venture showcased the platform’s commitment to becoming a comprehensive travel resource, offering services ranging from travel consulting and hotel management to catering and tourist site operations.

Fast forward to 2023, Xiaohongshu solidified its authority by forging a strategic partnership with Tourism New Zealand. This collaboration, announced during a high-profile event in Shanghai, exemplifies Xiaohongshu’s ability to foster alliances that amplify its impact and influence.

New Zealand Xiaohongshu RED

A Catalyst for New Behavior Patterns

Xiaohongshu’s influence extends beyond commerce and travel, shaping the behavior patterns of its users. Online travel agencies remain pivotal for trip planning and booking. However, Xiaohongshu emerges as a frontrunner during the pre-planning phase, catering to nearly 40% of travelers seeking outbound experiences. Notably, travel content occupies a significant position on the platform, showcasing remarkable growth alongside beauty-related content.

Data Travalers China 2023

Subsequently, The COVID-19 pandemic catalyzed shifts in travel preferences, favoring short-to-mid-distance trips. In this landscape, Xiaohongshu demonstrated its prowess in driving conversions for lesser-known and budget-friendly travel offerings, reflecting its adaptability and agility.

However, Xiaohongshu is not without its critics. The platform’s embrace of user-generated content transformed picturesque locations into influencer magnets, yet this practice also attracted criticism. Accusations of heavily filtered and stylized content raised questions about authenticity. Notably, during the National Day holiday, influencers’ images on Xiaohongshu faced scrutiny when compared to real-life experiences. It prompted a candid discourse about the platform’s portrayal of destinations.

In conclusion, Xiaohongshu’s evolution from a shopping guide to a diverse platform blending commerce, travel, and social interaction demonstrates its user-focused agility. Through AI, strategic alliances, and embracing changing travel trends, it has firmly established itself in culture and commerce. Xiaohongshu’s enduring legacy lies in its adaptability, innovation, and bridging digital and real-world experiences.

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Unleashing the Pulse of China’s Market: Updates and Breaking News.

August 2, 2023

 

  1. JD launches vertical AI model, targets retail, finance and education sectors:

  • Context: Beijing currently is home to approximately half of the more than 80 large models available in China
  • JD on Thursday introduced its own large AI model ChatRhino. Positioned as a vertical AI model that offers industry-specific use cases, JD’s AI offering arrives a few months later than rivals Alibaba and Baidu. 
  • Why it matters: JD is the latest Chinese tech major attempting to upgrade its offerings with AI and large models. The company said ChatRhino combines 70% generalized data and 30% native intelligent supply chain data, targeting a number of sectors including retail, finance, education, and government.  
  • Details: The company has already utilized the AI model to enhance customer service, facilitate code writing, and improve product recommendations, she added.

JD’s healthcare unit also unveiled a specialized model designed for the medical industry that is capable of quickly adapting and learning from various healthcare scenarios, which will serve as a technological foundation for remote medical services. The e-commerce giant also showcased its ambition to develop humanoid robots, which will be a key exploration direction for the JD Explore Academy.

LINK:
https://technode.com/2023/07/14/jd-launches-vertical-ai-model-targets-retail-finance-and-education-sectors/

 

 

 

2. Baidu AI products overseas

 

The AI social products “SynClub” by Baidu have recently been introduced in Hong Kong, China, Japan, and other countries. This product uses the latest AI technology of Baidu, so that users can know their own AI friends, and through the company of AI friends, users can chat more interestingly and in-depth.

 

3. The “channel retrieval” feature was introduced by the channel.

 

On July 12, the channel launched the “channel retrieval” function for the certification body to support the recovery of the lost agency authentication channel.

It is understood that “channel retrieval” refers to the channel that has completed enterprise and institutional certification or main body verification and can initiate the channel retrieval process and re-operate the channel after the platform verifies the authenticity of the main body.

In the process of initiating the retrieval, it is necessary to pay attention to the following two points: First, the initiator has not created a channel, and it is necessary to use a wechat signal that has not created a channel to initiate the retrieval process. Second, the account must be in normal use, and the account that has been cancelled, blocked, or banned cannot be recovered.

 

 

 

4. Users of the Meituan app can now record and upload brief videos.

 

Meituan has unveiled a new feature on its app that now allows users to shoot and upload short videos. The addition of this feature provides users with more creative ways to engage with the platform and record their experiences.

Meituan’s latest move comes amidst the intensifying rivalry with Douyin within the online local services industry.

The food delivery giant has also made moves to shake up the live-streaming business by hosting more live-streaming events, including monthly live streams on the 18th of each month since April, where participants are offered coupons.

In addition, the company launched its very own platform, Meituan Live, which is currently only visible to a select group.

Meituan continues to evolve as a multifaceted platform in order to stay competitive in the market

LINK: https://daoinsights.com/news/meituan-app-now-supports-users-to-shoot-and-upload-short-videos/

 

 

 

5. China’s newest beauty retail battleground, Douyin, was won by L’Oreal by 1 billion RMB.

 

L’Oréal topped a ranking of brand sales in the first half of the year, hitting a GMV of 1 billion RMB 

Douyin is the nation’s newest retail battleground, and international brands are actively fighting to grow their market share for Gen Z

Social platforms like Douyin are becoming pivotal channels for brands to close the loop in digital commerce

L’Oréal collaborates with roughly 800 to 1,500 Douyin KOLs every month, ranging from mega influencers with over 5 million followers to small-to-medium key opinion consumers

LINK:
https://jingdaily.com/loreal-douyin-china-newest-beauty-retail-battleground-billion-rmb-gmv/

 

 

 

6. Three New WeChat Advertisement Products Online Now

 

Moments Ads brand gallery: advertisement is WeChat’s first vertical multi-screen display advertisement. It supports 3-5 vertical screen video cards displayed at the same time, and the new method of display brings an eye-catching visual experience by creating a high-level window texture for the brand and enhancing the user’s memory of the brand.

WeChat Channels Carousel Ads: advertising supports 3-5 components, which are displayed on large tiles throughout the process. Different cards can be diverted to different official mini programs or different pages of mini programs, or they can be turned to native pages and H5. 

WeChat Search: discovering brand surprises through WeChat Search and finding beautiful gifts for their loved ones for Qixi Festival

LINK:

https://www.luxurysociety.com/en/articles/2023/07/what-should-luxury-expect-post-pandemic-chinese-travellers 

 

 

 

7. Translation vs Transcreation: which one is the right choice?

 

When expanding a business to a new country with linguistic and cultural differences, it’s crucial to ensure that the brand’s message and identity are accurately conveyed to the new audience.

Translation is the process of converting text from one language to another while preserving the original meaning, making it suitable for more literal texts. Transcreation, on the other hand, is a creative approach that adapts the message, cultural nuances, and persuasiveness to resonate with the target audience.

Factors such as the purpose of the text, marketing strategy, target market, and time/budget constraints should be considered when deciding between translation and transcreation for a successful linguistic adaptation.

LINK:

https://mp.weixin.qq.com/s/meZQ7MC_HIHktV-0KSPdhg 

 

 

8. How AI technology is reshaping beauty retail in China

 

Store of the Future on Shanghai’s East Nanjing Road The first of its kind in China, the new concept retail space boasts seven digital touchpoints: an advanced skin analysis device powered by big data; a product recommendation feature based on AI-generated makeup trends; product labels equipped with radio frequency identification (RFID) that unlock a detailed breakdown of ingredients; mobile POS, which allows customers to check out anywhere with a beauty advisor and avoid long queues; and personalized gift packages with the option to add scents and voice messages.

Meanwhile, the Shanghai Municipal Medical Products Administration has granted SkinCeuticals, Estée Lauder, L’Oréal, and Shanghai Chuangyuan Cosmetics stores in Shanghai a license for personalized on-site services. With this license, retail stores can act as mini cosmetic factories, creating products tailored to individual skin types.

Typically, consumers seek the advice of sales assistants or search for product reviews by influencers.  plus the fact that KOLs and personal shoppers may have other motives for recommending certain items (e.g., brand sponsorships).

When stepping into the futuristic concept store, customers are asked to use their WeChat account to sign into the AI experience. Users are then connected personally to a salesperson who helps them through their purchase journey in person and can stay in touch with them once they leave the store.

 

 

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