WeChat: China’s Most Sustainable E-commerce Platform

March 20, 2025

For foreign brands entering the Chinese market, discussions around digital marketing often focus on the latest trending platforms like Douyin and Xiaohongshu (RED). While these channels generate significant buzz, WeChat remains the most critical and enduring digital platform in China.

Despite not always being in the spotlight, WeChat continues to be the country’s most widely used app and an indispensable tool for brands aiming to build lasting relationships with consumers. Unlike major e-commerce marketplaces such as Tmall and JD, which demand high advertising spend and platform commissions, WeChat provides brands with a lower-cost alternative for customer acquisition, direct engagement, and complete ownership of consumer data.

WeChat: More Than Just a Messaging App

Originally launched as a messaging app, WeChat has transformed into an all-encompassing digital ecosystem, offering brands multiple avenues to engage consumers:

  • Official Accounts – A powerful tool that functions like a combination of a website, blog, and email marketing system, enabling brands to share content, interact with users, and build a loyal community.
  • Mini Programs – Embedded apps within WeChat that provide seamless e-commerce, customer service, and loyalty features without requiring users to leave the platform.
  • WeChat Pay – An essential mobile payment system that dominates China’s cashless economy.
  • WeChat Channels – A short video and livestreaming feature that competes with Douyin and Kuaishou, offering brands an opportunity to engage users organically.
  • WeChat Groups – Exclusive communities where brands can foster deeper engagement and collect valuable consumer insights.

This extensive ecosystem enables users to consume content, interact with brands, and complete purchases all within a single platform, making WeChat an indispensable tool for digital commerce in China.

WeChat as a Digital Storefront for Brands

Unlike in Western markets, where consumers typically turn to Google or a company’s website for brand information, Chinese consumers often search directly on WeChat. This makes WeChat the go-to platform for discovering brands, learning about products, and engaging with customer service.

For many businesses, WeChat effectively replaces the need for a traditional website. However, many foreign brands underutilize their WeChat presence, with outdated content, inactive accounts, and broken links reducing engagement. Keeping a WeChat Official Account updated and interactive is as important as maintaining a website in other markets.

A Fully Owned Channel for Brands

One of the biggest challenges for brands operating in China is balancing the high cost of customer acquisition with long-term retention. Unlike Tmall, JD, and Douyin, where brands must constantly pay for visibility, WeChat allows businesses to build and nurture their own audience. This offers several advantages:

  • Lower Customer Acquisition Costs – WeChat provides a cost-effective alternative to traditional e-commerce platforms, where brands must bid for visibility.
  • Full Data Ownership – Unlike marketplaces that control customer data, WeChat enables brands to collect and analyze user interactions directly.
  • Seamless Omnichannel Integration – WeChat bridges online and offline engagement, making it easier to connect with consumers across multiple touchpoints.

For brands looking for a long-term, cost-efficient strategy in China, WeChat presents a powerful direct-to-consumer (D2C) model.

WeChat’s E-commerce Evolution

While platforms like Douyin and RED attract attention with viral trends, Tencent has been steadily enhancing WeChat’s e-commerce capabilities. WeChat Channels has emerged as a significant competitor to Douyin’s short video and livestream shopping ecosystem.

WeChat has streamlined merchant onboarding, simplified the sales process, and expanded commerce features to allow product purchases across multiple touchpoints—including posts, search, chat, and even gifting features. These improvements have led to substantial growth:

  • A 3x increase in active sellers last year
  • A 200% surge in total sales volume

This growth signals that more merchants are seeking sustainable alternatives to traditional e-commerce marketplaces and that consumers are increasingly shopping within the WeChat ecosystem.

Where Should Brands Focus?

Many international brands question whether WeChat should be prioritized over newer platforms like Douyin and RED or traditional marketplaces like Tmall. The answer depends on a brand’s objectives:

  • Douyin & RED – Best for brand awareness, viral content, and impulse-driven sales.
  • Tmall & JD – Ideal for reaching high-intent shoppers and providing an official retail presence.
  • WeChat – Most effective for fostering long-term engagement, driving repeat purchases, and building brand loyalty.

A well-rounded China digital strategy should leverage multiple platforms, utilizing each one’s strengths to target consumers at different stages of their journey. WeChat remains a key pillar of this strategy, particularly for brands looking to develop a sustainable, direct-to-consumer business model.

Leverage WeChat for Sustainable Growth in China

Navigating China’s complex digital landscape requires a tailored approach. Whether you’re looking to enhance your WeChat strategy or integrate it into a broader digital marketing plan, our team can help you optimize your presence and drive results.

Contact us today to explore how WeChat can support your brand’s long-term success in China.

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How to Market to Affluent Chinese Female Travelers Using RedNote

March 14, 2025

With China’s outbound travel sector rapidly rebounding, affluent Chinese female travelers are emerging as a key consumer segment. These high-spending tourists prioritize premium experiences, luxury accommodations, and unique cultural activities. For brands looking to attract this audience, Xiaohongshu (REDNOTE) has become an essential marketing platform.

 

Why Xiaohongshu Matters for Affluent Chinese Travelers

Xiaohongshu is a hybrid between a social media platform and an e-commerce site, where users share travel experiences, lifestyle tips, and product recommendations. With over 70% of its users being female, Xiaohongshu is the go-to platform for affluent Chinese women planning their international trips.

Consumer Profile: Who Are Affluent Chinese Female Travelers?

  • Age Group: Typically between 25-45 years old
  • Income Level: High-income professionals, entrepreneurs, and luxury shoppers
  • Travel Style: Preference for luxury hotels, private tours, and high-end shopping
  • Decision-Making: Rely on user-generated content (UGC), influencer reviews, and community recommendations

Top Travel Trends Among Wealthy Chinese Female Tourists

  • Luxury & Boutique Hotels – They prefer unique, high-end accommodations over mainstream options.
  • Wellness & Adventure Travel – Activities like skiing, spa retreats, and cultural immersion experiences are in demand.
  • Shopping Tourism – Designer boutiques, tax-free shopping, and VIP experiences attract these travelers.
  • Food & Wine Experiences – Michelin-starred dining and exclusive wine-tasting tours are highly valued.

Marketing Strategies for Xiaohongshu

1. Partner with Travel & Luxury KOLs

  • Work with travel influencers who specialize in high-end experiences.
  • Ensure the content feels authentic and experience-driven.

2. Leverage UGC and Community Reviews

  • Encourage satisfied travelers to share posts and reviews.
  • Utilize branded hashtags and challenges to boost engagement.

3. Optimize Content for Search & Discovery

  • Use trending keywords like “luxury travel,” “boutique hotel,” and “exclusive experience.”
  • Ensure posts include high-quality visuals, engaging storytelling, and actionable travel tips.

4. Run Targeted Xiaohongshu Ads

  • Utilize precise audience targeting to reach high-net-worth individuals.
  • Focus on interest-based placements related to travel, luxury, and lifestyle.

If you’re looking to attract high-spending Chinese travelers and maximize your brand’s impact on Xiaohongshu, we can help! Our team specializes in Chinese digital marketing, content creation, influencer collaborations and media buying to help you connect with the right audience.

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Key KOL Marketing Trends in China for 2025

March 7, 2025

Influencer marketing in China is evolving rapidly, with brands leveraging new strategies to maximize engagement, sales, and brand authenticity. As we enter 2025, several key trends are reshaping the landscape, offering fresh opportunities for businesses to optimize their influencer collaborations. Here’s what to expect and how to stay ahead of the curve.

Key Influencer Distribution Across Major Social Platforms

1. More Direct and Sales-Driven Influencer Marketing

Influencer marketing in China is shifting from subtle brand mentions to more strategic, sales-oriented collaborations. Brands are increasingly focusing on three main approaches:

  • Influencer Branding – Strengthening brand presence within influencer content to create a deeper connection with audiences.
  • Influencer Seeding – Tapping into influencers’ personal experiences and testimonials to build trust and drive brand consideration.
  • Influencer Conversion – Utilizing influencer-driven campaigns to generate direct sales, particularly through livestream shopping and interactive content.

2. In-House Influencer Strategies Are Growing

Many brands are shifting their focus from external influencers to internal brand ambassadors, known as KOBs (Key Opinion Bosses), KOSs (Key Opinion Sales), and KOEs (Key Opinion Employees). This approach enhances authenticity, builds trust, and offers a more cost-efficient way to engage with audiences while maintaining brand consistency.

3. The Rise of Micro-Influencers

Influencers with fewer than 1,000 followers are proving to be highly effective in driving engagement and conversions. Their smaller but highly engaged communities allow brands to foster deeper connections and build trust with their target audiences. As a result, micro-influencer marketing is becoming an increasingly attractive option for brands looking for cost-effective and results-driven campaigns.

4. International Influencers Entering Xiaohongshu

With the rise of global influencers on Xiaohongshu (RED), largely due to the “TikTok Refugees” phenomenon, brands now have a unique opportunity to collaborate with international content creators. This trend allows brands to reach a diverse audience, blending cross-cultural content strategies with localized marketing efforts to drive engagement and brand awareness.

Want to explore how these trends can enhance your marketing strategy? Contact us to develop a customized influencer marketing approach that aligns with your brand’s goals.

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Mastering Seasonal Marketing: 6 Trends to Watch in 2025

March 1, 2025

As 2025 unfolds, brands are redefining their marketing strategies to align with evolving consumer behaviors and cultural shifts. From leveraging seasonal changes to embracing emotional marketing, the key to success lies in crafting authentic connections with audiences. Here are six emerging trends that will shape marketing strategies in the coming year:

1. Four Seasons, New Ideas: A Year-Round Opportunity for Product Launches

Seasonality is no longer just about holiday marketing. Brands are increasingly tying product releases to the emotions and experiences associated with each season, creating year-round engagement opportunities. Whether it’s fresh spring launches, summer exclusives, cozy fall collections, or winter holiday specials, brands can use these shifts to capture attention and boost sales.

Actionable Tip: Develop seasonal content that showcases your product’s unique features in the context of changing seasons. Limited-time products and collaborations can add urgency and excitement to your campaigns.

2. Gifting and Co-Branding: The Power of Collaborations

The art of gifting is being redefined by strategic collaborations. Brands are teaming up with influencers, artists, and even other brands to create exclusive, co-branded gift collections. These limited-edition partnerships generate buzz and drive consumer interest, especially during peak gifting seasons.

Actionable Tip: Seek partnerships that complement your brand’s identity. Collaborating on special edition products or campaigns can increase brand visibility and attract new customers.

3. Opening “Her” Narrative: Empowering Women through Storytelling

Brands are moving toward more inclusive storytelling, particularly in narratives centered around women’s empowerment. From body positivity campaigns to mental health advocacy, brands that authentically champion women’s causes can foster deeper connections with their audience. International Women’s Day 2025 will be a key moment to highlight such commitments.

Actionable Tip: Align your brand’s storytelling with genuine causes that matter to your audience. Ensure that your marketing efforts around women-centric themes are authentic, inclusive, and impactful.

4. Young People’s Mental Wellness: A Focus on Emotional Marketing

Mental wellness is becoming a core focus for brands targeting younger audiences. With increased stress levels among Gen Z and Millennials, companies are integrating mental wellness themes into their marketing strategies. Campaigns that promote self-care, mindfulness, and stress relief resonate deeply with young consumers.

Actionable Tip: Create content that supports emotional well-being, such as stress-relief tips or self-care routines. Engaging with this trend can strengthen your brand’s emotional connection with consumers.

5. “New Chinese Style” Festivals: Blending Tradition with Modernity

Chinese cultural festivals like Chinese New Year and Mid-Autumn Festival remain pivotal marketing moments. However, the trend of “New Chinese Style” is emerging, where brands merge traditional elements with contemporary aesthetics. This approach allows brands to engage younger consumers while celebrating cultural heritage in a modern way.

Actionable Tip: Incorporate traditional symbols and local artistry into your holiday campaigns, but present them through a modern, visually appealing lens. Collaborate with local creators to enhance authenticity.

6. Evolving Marketing Nodes: Deepening Brand Connections

Brands are moving beyond one-off holiday campaigns to create long-lasting engagement strategies. This includes:

  • Deepening Brand-Specific Nodes: Brands are amplifying key themes and emotions throughout the year rather than limiting marketing efforts to a single event.
  • Creating Brand-Specific “Content Festivals”: Instead of relying solely on traditional holidays, some brands are establishing their own content-driven “festivals” to maintain audience engagement year-round.

Actionable Tip: Develop a long-term content strategy that integrates storytelling with emotional engagement. Whether through continuous themed campaigns or brand-created “content festivals,” sustaining engagement beyond seasonal peaks can create stronger brand loyalty.

Final Thoughts

As consumer expectations shift, successful brands in 2025 will be those that adapt to these emerging trends while maintaining authenticity. From seasonal marketing to emotional storytelling, these strategies can help brands foster deeper, more meaningful connections with their audience.

Want to elevate your seasonal marketing strategy and make a lasting impact? Our team is here to help. Contact us todayto explore how we can tailor innovative marketing campaigns for your brand.

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5 Key B2B Marketing Predictions for 2025: How to Stay Ahead

February 14, 2025

As we move into 2025, the B2B marketing landscape is set for transformative changes. From the rise of influencers to AI-driven marketing innovations, staying ahead of these trends is crucial for maintaining a competitive edge. In this blog, we’ll explore five key B2B marketing predictions for 2025 and actionable strategies to help businesses adapt and thrive.

1. The Rise of Creators and Influencer Marketing

Influencer marketing is no longer just a B2C strategy—B2B brands are rapidly embracing creators to build trust and credibility. According to LinkedIn, 61% of B2B leaders plan to increase their influencer marketing budgets. With the Creator Economy projected to reach $500 billion by 2027, now is the time for B2B brands to tap into this growing market.

Actionable Tip: Partner with industry-specific influencers and content creators who align with your brand values. Leverage their reach to engage prospects and generate high-quality leads through authentic storytelling.

2. AI Will Revolutionize B2B Marketing

AI is becoming a game-changer in B2B marketing, with 64% of B2B leaders planning to expand their investment in AI-driven solutions. From automating customer interactions to enhancing content personalization, AI is reshaping the way marketers create and optimize campaigns.

Actionable Tip: Implement AI-powered tools to enhance creative processes, streamline workflows, and generate data-driven insights that improve campaign performance.

3. Short-Form Video Will Dominate Content Strategies

Short-form video continues to gain traction, delivering high engagement and trust. Studies show that 55% of B2B marketers report the highest ROI from short-form social videos, while 63% of B2B buyers rely on video content to inform their purchasing decisions.

Actionable Tip: Invest in short-form video content that features industry experts, customer testimonials, and educational insights. Platforms like LinkedIn, YouTube Shorts, and TikTok for Business offer powerful distribution channels for reaching your target audience.

4. Performance Marketing Will Shift Toward Long-Term Impact

While performance marketing remains a priority, brands are shifting focus to measuring long-term effectiveness. Ebiquity’s 2025 Media Budgets Survey highlights that 42% of marketers are increasing their performance marketing budgets, but with a growing emphasis on long-term brand-building.

Actionable Tip: Leverage AI-driven analytics tools to track and optimize campaign performance. Balancing short-term ROI with long-term brand growth ensures sustainable success.

5. Collaborative Problem-Solving Will Be Essential

As B2B marketing becomes more complex, collaboration and human-centric skills are gaining importance. LinkedIn’s Marketing Jobs Outlook Report notes a 138% increase in demand for collaborative problem-solving skills between 2021 and 2023.

Actionable Tip: Build a culture of collaboration within your marketing teams. Invest in training programs that combine creative execution with AI-driven solutions to navigate evolving challenges effectively.

Final Thoughts

Adapting to these key B2B marketing trends in 2025 will be critical for staying ahead of the competition. By leveraging influencer marketing, AI innovations, video content, long-term performance strategies, and collaborative problem-solving, businesses can drive meaningful engagement and growth.

Looking to optimize your B2B marketing strategy for 2025? Contact us today to explore customized solutions tailored to your business needs!

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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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Seizing Opportunities: A Look at China’s Recent Changes

July 1, 2024

1. Adapting to the new trend? National tourism bureaus are getting on board with Xiaohongshu and Podcasts

  • Australia’s 618 Campaign:

    • The Australia tourism bureau partnered with Xiaohongshu for “Just Rush to Australia on 618,” involving 40 travel brands and offering various travel packages.

  • Dubai’s Summer Campaign:

    • Dubai tourism bureau launched “Dubai can also play like this” activities, inviting travel influencers and partnering with local businesses to offer discounts and prizes.

  • Singapore’s Theatre Campaign:

    • Following a visa exemption policy, Singapore’s tourism bureau and Xiaohongshu launched “Theatre in Singapore,” featuring an interactive online page and an offline experience space in Shanghai.

  • New Zealand’s Xiaohongshu Partnership:

    • New Zealand’s tourism bureau partnered with Xiaohongshu to engage its 260 million monthly users, aiming to attract tourists and boost economic growth.

  • Podcast Collaborations:

    • Tourism bureaus from Spain, Singapore, New Zealand, and South Africa collaborated with Xiaoyuzhou podcasts to promote travel, including Dubai’s podcast series “Dubai Mysteries.”

2. China leads the way as social commerce soars globally: McKinsey

  • According to McKinsey & Company’s “State of the Consumer 2024: What’s New and What’s Next” report, China has been at the forefront of this trend for several years, with its market outpacing India’s. Emerging markets such as Brazil, Saudi Arabia, and the UAE are rapidly catching up, with consumers in these regions consistently spending more on social media purchases compared to their counterparts in Europe and the US.

  • McKinsey forecasts that the market will expand to $145 billion by 2027, up from $67 billion today. This growth is primarily driven by Gen Z and millennials, who are four times more likely to make social media purchases than older generations. Over one-third of Gen Z and millennial respondents reported purchasing on social media in the past three months, underscoring the demographic’s pivotal role in driving this trend.

Link:https://jingdaily.com/posts/china-leads-the-way-as-social-commerce-soars-globally-mckinsey

3. Xiao Hongshu Presents at VOGUE Business New York Beauty Summit

Xiaohongshu was invited to the “VOGUE Business New York Beauty Summit” in NYC. More than one hundred beauty brand founders, top managers and industry experts attended the venue to dissect the latest trends in the beauty and personal care industry and discuss the development trajectory of this industry.

  •  As consumer desires for self-care evolve further, the domestic beauty and hair care market is transitioning from basic functional aspirations to a more diverse and specialized era.

  • Within Xiaohongshu’s 300 million monthly active users, 50% are Generation Z (born in the ‘90s), 35% are Post-Millennials (born after 2000), and 50% reside in Tier 1 and 2 cities.

  •  “Beauty Enhancement”, an array of lifestyle activities aimed at beautification, has been pinpointed by Xiaohongshu as being driven by four core elements: “inner drive, personal charm, socializing, and influence”.

  • Brands can leverage influencer live broadcasts, store broadcasts, and product related posts, to accelerate the process from user interest to conversion, resulting in direct sales and conversions.

  • Employing KOS, the brands can forge a connection with potential fan base. Deliver specialized content and endorsements to users. Channel online high potential groups to offline stores to experience skin care, sample distribution, gift giving, etc., and complete the offline conversion process. This can also accelerate user purchase decisions.

Link: https://mp.weixin.qq.com/s/7cdCqkwPz_Sg5UbPF5sw-A

 

4. WeChat Officially Launches the ‘One-click AI Q&A’ Feature

  • Users of WeChat can now leverage the power of AI directly within the chat thanks to the new “One-click AI Q&A” feature integrated into the app’s input method.

  • Users can ask questions followed by an “=” sign within the chat, and the AI will provide an answer. This functionality is currently available on Windows and Mac versions of WeChat, with the mobile version set to launch soon.

  • In addition to the new AI feature, the WeChat input method boasts other helpful tools to enhance communication.

Link: https://pandaily.com/wechat-officially-launches-the-one-click-ai-qa-feature/

 

5. 15-year-old Bilibili and its three generations of young audiences

  • On 27 June, Bilibili, China’s equivalent of YouTube, celebrated its 15th anniversary. Chairman and CEO Chen Rui delivered a speech themed “Growing with You” during the anniversary livestream.

  • Bilibili’s user base is dominated by those born in the 1990s and 2000s, accounting for nearly 70% of the total. Currently, the platform boasts 102 million daily active users and 341 million monthly active users, with the average daily usage time being 105 minutes.

  • Users who joined in 2017 have more diversified entertainment preferences, including anime, national creativity, documentaries, and science and technology content. And those who joined in 2022 primarily consume various university courses.

  • Data from Bilibili also shows that over 70 million users research cars on the platform every month, with a 218% year-on-year increase in contributions.

  • Since its inception in 2009, Bilibili has evolved from an early Erciyuan cultural community into a multicultural platform encompassing over 7,000 interest circles.

Link: https://daoinsights.com/news/15-year-old-bilibili-and-its-three-generations-of-young-audiences/

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Identifying Opportunities: Delving into China’s Latest Updates

June 3, 2024

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

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