China Marketing Archives

What is 11/11 Singles’ Day and how this Retail Festival Changed in Recent Years?

November 11, 2022

We all have heard of Valentine’s Day or “Lovers’ Day,” but have you heard of “Singles’ Day” aka 11/11 or Double Eleven? Interesting right? It is celebrated in China, and it is one of the biggest retail festivals here. A huge event in the marketing calendar of many retailers. And, if you are targeting a Chinese audience, then this is an amazing opportunity to make huge sales.

Let’s learn more about this singles’ day and understand ways to capture an audience in this highly competitive market.

What is “11/11” and how did the craze take over China in the last couple of years?

The festival started when the students of China’s Nanjing University celebrated “Bachelor’s Day” as a sort of anti-Valentine’s Day around 1993. Why November 11th? Numerology is very popular in China. November 11 looks like four lonely sticks when written, and hence, Singles’ festival was born. This celebration started spreading among other universities. Men and women started celebrating it. So, eventually, 11/11 got the name “Singles’ Day.” People celebrate this occasion by treating themselves to gifts and presents, making Double 11 a huge retail festival in China.

In 2021, around 900 million shoppers purchased luxury items from Gucci, Burberry, Coach, and other luxury brands. China’s two tech giants, Alibaba and JD.com, together they set a new world record by earning around $139 billion. Due to this huge craze, there is a lot of competition as well among brands. To survive the competition, campaigns must be well-prepared. Brands collaborate with KOLs and online advertisements to promote their product and get better awareness among consumers.

Tmall was the one which initiated the Singles’ Day Shopping Festival in 2009. It has grown over time into a shopping phenomenon and greatly impacted the global retail sector. In November 2011, the one-day sales of Singles’ Day surpassed the sales of Cyber Monday in the United States. It has become a massive internet shopping festival.

Every year, Tmall organizes a massive shopping extravaganza that features unending live-streaming sessions, amazing discounts, and celebrity appearances. Other shopping giants like JD.com and Pinduoduo also joined this heated competition.

Why Double 11 sales are going down?

However, Tmall’s sales have dropped dramatically in recent years. Not only Tmall but also Alibaba and JD.com saw a drop in sales in 2020. Some of the reasons for this downfall are

Singles’ Day has been around for more than a decade and customers are not as excited as before. Today they are also much more familiar with the tactics and campaigns done by the brands.
Starting the sales window way too early. People purchase in the initial sales and this makes the actual day or week revenues much lower.
Livestream e-commerce is a huge hit among consumers but live-streaming features are available on all social media platforms nowadays. This makes the e-commerce houses like Tmall hard to grab the audience’s attention through their live streams.
With numerous promotions and campaigns all around the year, Singles’ Day stands out less. This makes the Single’s day sales feel less special and results in low sales. Check the list of other e-commerce festivals in China and you’ll see that Chinese consumers have multiple occasions to hunt for deals.
People are getting more aware of consumerism. Many have started becoming more conscious of the products they buy, from whom they buy, and shopping sustainably.

Brand practices and consumers’ reaction

During these festive sales, the competition gets fiercer. Brands also join e-commerce platforms to get more sales. With offers and discounts available in online stores, offline stores, and live streaming channels, people are finding it difficult to purchase products at the lowest price.

Even big brands got under fire due to false advertising with L’Oreal among them. Though they topped Weibo’s list of the hottest searches, they got a huge backlash for misleading the consumers. As the issue continued to bubble, the hashtag #L’Oréalaccusedoffalseadvertising trended on Weibo, reaching 150 million views.

Consumers have recently stated that they would rather purchase goods at regular prices when needing them. As opposed to comparing numerous coupons and discounts to find the best deal.

Post-COVID reality

Post-Covid, many users have become more cautious about spending money. Consumerism is getting more criticism, along with the crazy amount of excessive and unsustainable packaging that 11/11 creates. Chinese consumers are aware of the effects of global warming and have experienced its impact. People are becoming more aware of the situation and want to take the essential steps to avoid consumerism.

This has forced brands and e-commerce giants to adopt sustainability. This year’s 11.11 shopping festival coincides with the 27th United Nations Conference on Climate Change, also known as COP27. Over the course of the 11.11 Global Shopping Festival, Alibaba Group is promoting sustainable consumption throughout its ecosystem. Alibaba has partnered with brands and merchants to provide Chinese consumers with more sustainable products at a time when they are looking to live more sustainably.

The biggest stars of last year Double 11 in trouble

Note that live-streaming e-commerce started booming in China during the pandemic. In 2021, more than 320 million customers in China will make at least one purchase from a live-stream session. We also covered quite extensively live-streaming tactics for WeChat Channels.

Viya and Li Jiaqi, China’s two famous live streamers, were the biggest winners of Alibaba’s Singles’ Day in 2021. The power duo generated GMV worth $3.1 billion (20 billion yuan) during their October 20 live stream session, which is close to 10% of the entire 2020 Singles’ Day event. Li Jiaqi pre-sold $1.9 billion (12 billion yuan) in products ranging from Shiseido creams to Apple AirPods. Viya also registered a smashing success, selling about 1.2 billion (8 billion yuan) in goods during a 14-hour live stream. Li Jiaqi, also known as Austin Li, was one of China’s biggest internet celebrities, with 64 million followers on Taobao. He once sold 15,000 lipsticks within 5 minutes in a sales competition against Alibaba.

But the superstar has gone silent after his show was abruptly cut last year due to connotations with political events. There is a long silence from Li’s side, which is very uncommon for him. He isn’t the only internet star to vanish from social media in China in recent months. Shortly after her successful 11/11 appearance, Huang Wei, also known as Viya, was fined $210 million for tax evasion. Huang had millions of followers on China’s major social media and shopping platforms, but her accounts were removed in December. She has not appeared online since then.

The sudden rise and fall of China’s most well-known influencers serve as a reminder. Brands should keep in mind how risky it is for brands to invest only in KOL marketing. This can have a huge impact on this year’s Singles’ Day sales.

New Singles’ Day strategies

Loyalty program

Brands have slowly started to realize that when it comes to building a strong, long-term relationship with shoppers, there is more to success than just offering deep discounts. The 14th edition of Alibaba’s 11.11 Global Shopping Festival in China features over 290,000 brands. It has provided retailers with tools and solutions for expanding their brand loyalty membership programs and introducing new products this year.

Membership has become a high priority for brands on Tmall because it allows them to interact with consumers most directly and, for some, provides a higher level of certainty over sales during 11/11. To date, over 40 brands on Tmall have loyalty membership programs with over ten million members, and 600 brands have loyalty membership programs with over one million members.

Alibaba is one e-commerce platform that has made strong progress from a GMV focus to a loyalty focus. “Alibaba is relatively ahead of the curve by serving these high-quality consumers,” said Ralph Wu, an associate partner at Bain & Co.

As of June 30, Alibaba also had 25 million members of its 88VIP loyalty program, with each member spending more than 57,000 yuan per year with the Hangzhou-based company. 88VIP is a mechanism designed to help participating brands and merchants increase stickiness and deepen consumer engagement across Alibaba’s ecosystem.

Brand storytelling

Claire Sun, Marketing Director of Royal Canin, a pet food brand with 1 million members and a decade-long presence on Tmall, talked about the brand’s 11.11 preparations and the benefits they’ve gotten from Alibaba’s platforms.

Royal Canin’s 11.11 preparations took a different turn this year. The company started early and collaborated with Tmall to host its first-ever Super Brand Day in the pet category.

This enabled the brand to amass a wealth of consumer insights and customer assets in advance of 11.11.

Bilibili joins 11/11

A new player is joining this year’s “Double 11” e-commerce battle: Bilibili (also known as B Station). The video-sharing site officially launched a live-streaming shopping function ahead of China’s biggest shopping bonanza.

At present, Bilibili’s live broadcast rooms offer products from its self-operated stores and those from Alibaba’s Taobao and JD.com.

To grow its livestream army, Bilibili has lowered the threshold for video uploaders to host their own live broadcast rooms. They must be at least 18 years old and have at least 1,000 fans. On top of that, they need to possess broadcast records from the past four years.

Overall, there is still a long way to go before B Station can pull ahead in the live-streaming race. It will be tantalizing to see how the video-sharing site will fare during the Double 11 shopping festival.

Conclusion

Chinese e-commerce behemoths created online shopping festivals like Double 11 to boost sales through discounts. Double 11 remains an important event for increasing brand and product exposure. However, brands should prioritize positive relationships with end consumers over skyrocketing GMV.

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

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What is the Mid-Autumn Festival and How do Brands Approach It?

September 7, 2022

First of all, happy mid-autumn festival from the WeChat Agency team!

China has a very distinct cultural history, traditions, and holidays. Such days continue to be essential marketing touchpoints. In recent times they have evolved into shopping plans for the average consumer.

The second most important festival after Chinese New Year is the Mid-Autumn Festival. This year it falls on September 10.

So for all the businesses out there, this is a fantastic chance for you to draw Chinese customers in with relevant advertising and merchandise!

And without further ado, let’s learn about the Mid-Autumn Festival and how your company can benefit from it.

Mid-Autumn Festival

This holiday which celebrates the end of the harvest season is typically marked by family get-togethers, lantern festivals, and mooncake celebrations, yummy right!
It is celebrated in many other Asian nations as well, such as Singapore, Vietnam, Korea, and Malaysia, and as said earlier, it is the second-most significant festival after Chinese New Year.

When: The Mid-Autumn Festival occurs on the fifteenth day of the Chinese calendar’s eighth month.
Significance: It’s a significant festival in Chinese culture and very comparable to the Western Thanksgiving holiday.
How do people in China celebrate? Friends, family, and delectable food are all that matter, with the mooncake taking center stage.

As the full moon shines brightly in the sky, people also celebrate by lighting decorative lanterns. Mooncakes and other items with festive themes are frequently given as gifts to friends and family.

What ways can brands celebrate?

Moon cakes

Mooncakes are like the life source of this celebration. In fact, the Mid-Autumn Festival is also known as the Mooncake Festival!
Mooncakes can be a fantastic opportunity for brands to use and take full advantage of the festive spirit.

In fact, according to a recent analysis by iiMedia, the size of the Chinese mooncake gift box industry quadrupled between 2016 and 2021, rising from $1.7 billion (11.6 billion RMB) to $2.5 billion (16.9 billion RMB). As a result of this demand, there are now an increasing number of mooncake businesses in China, 40,478 as of July 2022, making it even more important to stand out creatively.

With their purchases, several brands give customers gift boxes of mooncakes to celebrate the Mid-Autumn Festival.
This can be easily accomplished by collaborating with a nearby eatery or food company so that their customers can use a voucher to purchase a gift-boxed mooncake.

Some brands have also put their own spin on the delicacy.

They opt for an experimental mixture rather than the traditional red bean or lotus seed paste. Mooncakes are a significant means by which businesses can show that they are aware of regional customs.

Starbucks, for instance, joined the competition with its own coffee-flavored mooncake! Each was stamped with the Starbucks logo and the promotional Facebook post won over 20,000 engagements.

For the Mid-Autumn Festival, companies can include the moon in their products. In order to maintain the festive atmosphere, Alexander McQueen used traditional ink on a jewel box with festive theme elements that represented the moon and moonlight.

WeChat greetings

WeChat is a popular platform for friends and family to exchange holiday greetings. The Chinese usually send greetings to one another via WeChat. In WeChat, people also post images of themselves participating in the festival by lighting lanterns and eating mooncakes. Stickers, GIFs are the most popular ways to do that.

Tencent developed “Moonments,” a mixed reality campaign intended to represent the potent force of Chinese culture.

People had to focus on the moon from their current location to create it, and once they did, they were told to choose a location on the Great Wall of China. They will get a view of the moon and the Great Wall of China. They can now choose from a list of traditional Chinese poems about the moon. Finally, you’ll have a poster to share on WeChat Moments with your Moon Festival greeting.

Other brands can also create something special, like Moonments, to engage consumers on special occasions and celebrate Chinese culture.

On September 8th, Ayayi started working for Alibaba as the proprietor of Tmall Super Brand. She had her own ID card and launched the first NFT digital mooncake for the Mid-Autumn Festival.

Gaming

The Mid-Autumn Festival is also a great time to gamify your website or app by providing some sort of competition, gaming experience or scoring, or perks because Chinese people love digital trends, games, and other interactive oddities.

For instance, Kate Spade used WeChat to launch a flight game that spread lovely festival lanterns filled with congratulations across the screen. This made it possible for everyone to spread good vibes and well wishes while sharing the branded lantern with family and friends.

The well-known smartphone app game Angry Birds also celebrated the holiday by switching out its standard golden eggs for lovely golden mooncakes and adding 34 levels with an oriental theme.

Cool campaigns for Mid-Autumn festival

Mooncakes and holiday-related items are the main presents that are given and received. However, young people enjoy shopping particularly, and many companies advertise specialty mooncakes or limited-edition holiday-themed goods.

Let’s take a look at some interesting campaigns that took place in recent years:

Mooncakes from Fendi

Fendi adopted a novel method for designing containers. The brand chose a highly functional cylinder shape that could transform into a lantern because lanterns are a prominent aspect of the Mid-Autumn Festival. A small, vertical set of drawers containing mooncakes is revealed when the cylinder is opened. Each mooncake bears the FF stamp of the company.

The protective film covering a tiny battery on the tube’s side can be removed after the drawers have been taken out and the container has been shut. This activates internal LED lighting that projects light through star-shaped holes onto nearby walls to simulate a starry night. It also rotates.

Their messaging was charming as well. In association with Chinese artist Oscar Wang, they unveiled a 15-second animation featuring Fendidi the Panda. The company’s social media accounts like Weibo, WeChat, and RED, all showed the campaign. Additionally, it was available globally on Facebook, Twitter, and Instagram. It featured adorable depictions of a full moon, an astronaut, and the panda, China’s national animal.

They also ran a mooncake distribution campaign. The company covered a wide range of topics in novel and enjoyable ways.

Perfect Diary: Beauty Products with Mid-Autumn Festival Theme

Some companies choose to use other products that draw inspiration from the holiday rather than traditional offerings like mooncakes. Perfect Diary, a domestic Chinese beauty brand that has been capitalizing on the guochao trend and a strong marketing strategy in the country, released a Mid-Autumn Festival-themed eyeshadow palette.

They collaborated with the Guochao incubator on Tmall and co-branded the palette with China Aerospace Science and Technology Corporation, or NASA in China. Chang’E and Jade Rabbit are two examples of characters from Mid-Autumn Festival fables who reside on the moon that have been given names for China’s lunar probes.

Their Mid-Autumn palette also complimented a line of shadows with an animal theme that the company had started in 2019. The brand ambassador for the “Explorer Eyeshadow Palette 11, Rabbit” was Luo Yunxi, and the campaign included beauty KOLs who posted makeup tutorials using the palette on social media.

The company additionally unveiled a computer-generated campaign video with the moon, other planets, a fictitious model, and an enigmatic rabbit. Over 110 million people have viewed the Weibo hashtag #PerfectDiaryRabbitPalette, and over a million people have watched the video. The young followers of the brand loved it.

HeyTea: Serving young thirsty people

HeyTea took advantage of the opportunity to introduce a special holiday beverage and limited-edition goods. The brand created a special custardy, creamy, yellow bubble tea with a picture of the fabled Jade Rabbit, who resides on the moon, in celebration of the holiday.

In its giveaway promotion, it also provided limited-edition lanterns, stickers, and coupons as prizes. Anyone who interacted with the brand’s accounts on Douyin, Weibo, Xiaohongshu, or Bilibili had a chance to win.

Fans left thousands of comments, reposts, and likes on a Weibo post promoting this unique bubble tea.

Tory Burch: Heartfelt family tales strike the right emotional chord

The American clothing company, Tory Burch, did not introduce any unique mooncakes or packaging. They didn’t try to appeal to Gen Z or create a CGI animation. They chose an approach that was less complicated and got right to the point of the holiday. It all came down to family for them.

The company requested that users share touching family stories on Weibo in exchange for a special gift from the company. They demonstrated their understanding of the holiday and provided a platform for people to express their gratitude by choosing such a meaningful topic with such strong connections to the holiday.

This raised admiration for the brand and raised consumer awareness of it. The brand collaborated with local artisanal businesses to design exquisite packaging for gifts for VIPs and prize winners.

🧧 Check out how other Chinese festivals can be leveraged by brands

Conclusion

Mooncakes, lanterns, friends, and family are the main components of the mid-autumn festival. If you are trying to leverage this festival for sales in the Chinese market, you need to be very creative and innovative in including these in your strategy.

However, Mid-Autumn Festival offerings don’t always have to revolve around mooncakes, lovely jars, or lanterns. Brands can also introduce a limited edition of their usual products and connect it with the holiday through its color, flavor, design, or in other ways.

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

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Chinese market trends

August 24, 2022

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

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

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

Don’t You Dare Say “WeChat”:

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

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

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

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

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

5 Tips For KOL Collaborations In China

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

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

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

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

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

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

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

H&M Returns to Tmall After Prolonged Xinjiang Cotton Controversy

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

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

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

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Top Chinese E-commerce Platforms and Fees to Expect

August 11, 2022

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

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

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

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

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

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

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

Tmall

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

Tmall General:

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

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

Commissions: 8-12%

Tmall Global:

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

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

Commissions: 8-12%

Tmall mini-store:

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

Registration fee: USD 4,500 deposit

Commissions: 4-12%

JD:

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

JD General:

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

Registration fee: USD 4,500 deposit+

Monthly fee: USD 150

Commissions: 2-10%

JD Global:

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

Registration fee: USD 15,000 deposit+

Monthly fee: USD 1,000+

Commissions: 2-5%

Xiaohongshu / RED

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

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

Monthly fee: None

Commissions: 5% (reduced from 20% before)

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

WeChat Mini-Programs as Alternative to Big Platforms

purchasing journey wechat mini programs

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

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

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

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

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

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China Marketing Strategy: One Size Doesn’t Fit All

June 16, 2022

China’s marketing strategy is a minefield. If you want to build a brand in the Chinese market, you need to know how to navigate it.

Entering the Chinese market is not only intimidating for the newcomers but also for existing businesses. Rapidly changing tastes, the market’s vastness, and nuanced preferences of more than 1.4 billion consumers living in very differentiated geographic and socio-cultural environments can be daunting for well-established players as well.

This is especially true for FMCG that are hyper-sensitive to consumers’ evolving tastes. That’s why often there is no such thing as a one-size-fits-all marketing strategy in China. Actually having one monolith strategy for China can be more harmful than having no strategy at all.

Brands must develop strategies for localized branding, communication, e-commerce, and traditional distribution in order to build a good business in China. These will necessitate a thorough awareness of consumer patterns and profiles, as well as familiarity with local marketing and operations. Otherwise, they will be unable to respond effectively to consumer desires and needs, increasing the danger of failing.

Why Is It Necessary to Localize?

The main point is that it’s easy for brands to assume that Chinese consumers are one homogeneous group of people with identical tastes and preferences. Also, most brands tend to focus on consumers based in China’s 1st tier cities like Shanghai or Beijing.

The Chinese city tier system is an unofficial hierarchical classification of Chinese cities. Media often use it as a point of reference to illustrate their financial, commercial, and overall business attractiveness. Usually, there are 5 levels of so-called tiers with some outlets adding an additional classification for the most rapidly developing cities. These are called New Tier 1 cities with Chengdu, Chongqing, Hangzhou, Wuhan, Nanjing, and Tianjin among them. Only imagine that there are almost 150 cities in China that are bigger than Berlin (3.5 million).

Every target audience has diverse needs and aspirations, and firms that don’t have a defined marketing plan will waste company resources chasing the incorrect demographics.

It’s a big misconception that consumers in those 2nd or 3rd-tier cities are the same as consumers in Shanghai or Beijing. A lot of reports on Chinese consumers often focus on the population samples from the biggest cities leaving the intricacies and local differences out of sight. People living in different Chinese provinces and locations will show different consumer behaviors and have varied income levels. Very often even the climate or weather patterns can play a big factor in their consumption habits.

Examples of global fast-food chains adapting to local tastes: Mcdonalds’ pickle sandwich, KFC’s egg tarts, and durian pizza from Pizza Hut

Local Nuances

Just to give you an example, and of course, these are just exaggerations. E.g. Chengdu youth scene is famous for being among the most flourishing in China while people from Wuxi, an over 6 million people city near Shanghai, are renowned for their entrepreneurship spirit. Based on deeper research and local knowledge you can find a lot of nuances and specific interests that you can leverage in your brand communication, packaging, and pricing that will ultimately make a difference.

So when you’re trying to figure out how to make your retail experience more Chinese-friendly, the first step is figuring out who exactly you’re trying to attract—and then how best to reach them. Some brands might find success by hiring local employees who speak the dialects of their target market(s) fluently. They can often offer their own personal recommendations; others might do better by partnering with influencers who already have strong followings among those groups of people. Surveys and local focus groups can also be of great help.

Competitors in the biggest Chinese cities are fierce and the market is well saturated with all kinds of goods readily available. Therefore brands now want to expand their reach and deepen their penetration of the Chinese market. Because of a lack of understanding and applying the same strategies that worked in the biggest Chinese coastal cities, foreign brands often fail and are reluctant to continue their expansion which doesn’t need to be the case.

How to Localize – Things to Consider

Because of the local differences, you might rethink:

Brand message – is there some other unique selling point that could be more appealing to the local target audience?
Packaging – is the design and size suitable for local needs? Maybe the locals prefer smaller packages to have a try of the product?
Ingredients – can you add some local ingredients to make your product more appealing to the local palates?
Necessity – is your product adapted or even needed in the targeted location? Promoting stylish rain boots makes sense during the Shanghai rain season. However not so in Beijing where summers are usually hot and dry.
Pricing – is the price too low or too high?
And more to consider.

Strategy for China – Conclusions

Each country, market, demography, and way of life are distinct; it is the marketer’s responsibility to customize messaging and techniques to these diverse local trends. By recognizing these patterns and the economic, social, and technical influences that influence the Chinese customers, brands in China can better prepare for the future and succeed in the present.

➡️Find out more about China’s core target consumer groups – Generation Z and Silver Generation.

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

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