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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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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Exploring New Horizons: Uncovering the Latest Developments in China’s Market

October 23, 2023

1.Wechat Channel releases the “flash purchase” new function, only to specific categories opened

The Channel has unveiled the conditions for its “flash purchase” service, allowing retailers to facilitate online ordering during live broadcasts for specific users. To activate this feature, merchants must meet certain criteria related to their business category, qualifications, credit, product quality, and sales volume. The flash purchase products must be physical and described fully during live broadcasts, matching the invoice card and product information. Flash sale items can only be sold during live broadcasts, and the sale ends either when the broadcast concludes or when stock is depleted.

Merchants can create flash purchase orders for particular users, which are accessible only to those users. Multiple intended users can also be targeted with flash orders, but the same user can’t have duplicate orders and must create new ones after successful payment.

 

2.Bus rentals become this autumn’s hottest wedding trend

The usual Golden Week marriage boom came as expected this year, but so too did a fresh take on the traditional Chinese wedding custom of 接亲, or “picking up the bride”.

In a down-to-earth spin on the tradition, some young couples teamed up with local transport departments to create a bespoke “wedding bus” experience. In this trend, public buses decked out in DIY wedding decorations carry the wedding party to their venue, instead of the typical suite of austere luxury cars.

The top wedding bus post on the lifestyle-sharing platform Xiaohongshu, which garnered over 20,000 likes. 

With birth and marriage rates sinking lower and lower in China, state-led campaigns to encourage marriage and childrearing have become pervasive and transparent. Trends like wedding buses breathe new life into staid traditions and allow Gen Z and millennials to take ownership of these highly personal life decisions. 

LINK: https://daoinsights.com/news/bus-rentals-become-this-autumns-hottest-wedding-trend/

 

3.Is there a solution to China’s $81 billion ‘daigou’ gray market?

  • With young consumers having grown accustomed to purchasing from daigou, the market is growing at lightning speed. 
  • According to report, “The Daigou Index 2.0,” China’s gray market size is an estimated $81 billion (600 billion RMB), having expanded by over 40 percent since 2019.
  • Daigou can offer tax-free products, which are more affordable than purchases made within China. And even some brands don’t even have counters”.
  • Aspirational middle-class consumers are becoming more cautious with their spending. And as a result, they may prefer to buy products at a discount rate from daigou rather than purchasing directly from the brands.
  • In addition, Chinese Gen Z shoppers are keen on discovering and experimenting with new brands – gray market importers’ ability to access limited-edition or products unavailable in China has made the sector popular among young consumers.

https://jingdaily.com/is-there-a-solution-to-china-81-billion-daigou-gray-market/

 

4.WeChat Luxury Index 2023: How to Connect With 1.3 Billion Consumers?

  • WeChat has evolved into a vital platform for brands to engage and convert Chinese consumers, extending beyond mere communication.
  • WeChat’s various components, like Mini Program, Channels, WeCom, and Official Account, create a seamless customer journey loop. It has evolved into a primary direct-to-consumer (DTC) channel, offering services and information, challenging traditional websites. Brands can accompany customers from acquaintance to purchase, nurturing their private domains on WeChat.
  • WeChat’s open rates for articles have declined, partly due to muted notification settings for Service Accounts and follower disinterest.
  • Brands have adapted content strategies, pushing content less frequently but more focused on ROI.
  • Menu clicks and service-related behaviors have gained prominence, with over 55% of menu engagements being CRM-related.
  • Brands are redirecting efforts and investments to other WeChat assets, but Official Account content remains vital.
  • Brands capture more data through Mini Programs, with 85% of behavioral data collected from them, enhancing consumer profiles and WeChat strategies.

LINK: https://www.luxurysociety.com/en/articles/2023/10/wechat-luxury-index-2023-how-connect-13-billion-consumers

 

 

5. Coca-Cola teams up with Holiland for futuristic AI chocolate

  • Coca-Cola and bakery brand Holiland bring out a new flavour of Holiland’s popular ‘Dandelion Air Chocolate’ truffle.
  • This time they co-created with AI and named Y3000. On Weibo, China’s Twitter-like microblogging platform, ‘#可口可乐 好利来#‘ (#Cocacola Holiland) gained 27 million views, peaking at number 6 on the hot search list.  
  • This collaboration comes after the release of Coca-Cola’s Y3000 Zero Sugar Coke, an AI co-created soda of the future.
  • Holiland has been on a streak of crossovers including Hello Kitty and Rick & Morty. 
  • Now that AI is playing a bigger role in China’s digital economy, this co-branded chocolate feels like a natural next step for both parties.  

LINK: https://daoinsights.com/news/coca-cola-teams-up-with-holiland-for-futuristic-ai-chocolate/ 

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Latest News on China’s Market

August 7, 2023

1. Estée Lauder taps Asia’s male beauty market with Manchester United partnership

  • Beauty and skincare giant Estée Lauder has inked an exclusive partnership deal with Manchester United in hopes of tapping the club’s fans in China and the Asia Pacific region.

  • In China alone, the men’s beauty market was projected to surpass $10 billion in 2022 and could reach $33.4 billion (240 billion RMB) by 2027.

  • Most male consumers may be relatively new to the skincare game, especially when it comes to premium products.

  • In the first half of 2023, the GMV of men’s makeup on Douyin surged by 364.6 percent year-on-year. With this market being especially open to beauty and grooming, we’d bet that a clever campaign could work wonders.

LINK: https://jingdaily.com/estee-lauder-manchester-united-collab-male-beauty/

 

2. Male beauty’s next growth engine: Douyin

  • In the first half of 2023, the gross merchandise value (GMV) of men’s makeup sold via Douyin surged 365 percent year on year – Tmall and Taobao combined achieved 6.7 percent growth in the same period.

  • Chinese male beauty brands are quickly expanding on the short video app. Domestic labels claimed seven spots on Douyin’s top 10 best-selling mens’ skin care list, whereas international brands took three places.

  • Male skincare buyers’ profiles: Last year, 70 percent of men’s beauty purchases were made by women, according to a 2022 report from Xiaohongshu. But male buyers have caught up, now accounting for half of male cosmetics purchasers on Douyin.

  • The average age of the male makeup user is between 18 and 30 with an average price of $9.7 (69.2 RMB), significantly lower than on other platforms like Tmall and JD.com.

  • Cooperating with KOLs has proven to be a quick and effective strategy for businesses that want to scale up brand awareness. These influencers are crucial for spreading knowledge about beauty routines.

LINK: https://jingdaily.com/male-beautys-next-growth-engine-douyin/

 

3. McKinsey: Chinese consumers, brands ‘cautiously optimistic’ on tourism and spending

  • Chinese consumers are looking for better deals and sales across platforms like Douyin and Pinduoduo, where products are often sold for “half or less” than on more established competitor shopping apps.

  • McKinsey found that while many remained loyal to their favorite brands, 47 percent of respondents reported switching retailers to obtain a “lower price/discount.”

  • Travel, restaurants and apparel were the top categories consumers were spending on, the survey revealed.

  • However, international travel in June was still 58 percent lower than pre-pandemic levels, though the number of outbound flights from China is “rising rapidly.”

LINK: https://jingdaily.com/mckinsey-report-cautiously-optimistic-tourism-spending/

 

4. China ecological transition: a green revolution led by consumers

  • Keeping balance between satisfying the demand of country’s market, while preserving sustainable standards is challenging

  • Chinese consumers are demonstrating a higher attention to environmental issues compared to the previous years, this trend being reflected in several factors, from carbon emissions to locally produced goods.

  • In this sense, the pandemic has represented a turning point for the development of this trend inside consumer’s mindset, many of which are now willing to pay more for environmentally friendly products.

  • Case study of KFC:  Thanks to “Exploring Carbon Reduction” and “The Journey to Carbon Neutrality” initiatives, introduced in their super App, KFC carried out a green rewards program that encourages consumers to not use disposable cutlery, favor in-store pickup, engage in waste sorting, etc.

LINK: https://mp.weixin.qq.com/s/HBf_m9WBZ2izfmQNFgOlvg

 

5. Pink burgers, platform Crocs and Malibu dream houses: Barbie’s global collab craze

  • Resale site StockX reported to Jing Daily it had seen more sales of Barbie products in July 2023 than any other month in the company’s history, double sales in July 2022.

  • Among so many names jumping onboard, from Vans, Kipling and Gap, to Pacsun and Nyx, one breaking through the Barbie collaboration noise online is Zara. The Spanish retailer launched a collection on July 21 (the movie release date) inspired by the fashion seen on screen, including a gingham dress, silk pajamas, and other clothing and accessories items

  • Though Zara, Vans, Nike’s Dunk Low sneaker, and Chanel’s themed efforts with the movie all made their way onto social media in China, the clothing and accessories collection from local fashion brand D’izzit is trending in the mainland.

  • Barbie mania is reaching all corners of commerce, from fashion all the way through to luxury hospitality. The W Hotel in Osaka, Japan, is one that’s proven a hit among netizens.

  • Thanks to Barbie nostalgia being at an all-time high, the IP’s pulling power feels unbeatable. Some consumers might be all pinked out, but this is definitely not the end of Barbiecore.

LINK: https://jingdaily.com/barbies-global-collab-craze/

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China Market Updates and News: Staying Current

July 10, 2023

 

 

  1. RED’S New Image Search Function

    On June 19, RED launched the “image search” function. Users can not only search for the same type of note by long pressing the note picture, but also click on the small camera in the search bar to identify and view the same type of note.

  1. New Zealand tourism seeks boost from Xiaohongshu marketing pros.

  • Since 2019, fewer Chinese tourists from that country have been coming to the country. Tourism New Zealand has recently established a partnership with a Chinese platform in an effort to buck this trend. Through this partnership, the government-funded organization will receive support for its marketing initiatives.
  • On June 29, at the launch event in Shanghai, Chris Hipkins, the prime minister of New Zealand, and Wang Yajuan, the company’s chief marketing officer, took a selfie. This selfie was later shared on Tourism New Zealand’s official Xiaohongshu account. Hipkins had the chance to meet and greet with top Chinese travel bloggers
  • New Zealand has maintained a strong relationship with China throughout the pandemic. China is currently New Zealand’s largest trading partner.
  • The impact of connecting and building trust with consumers through the Xiaohongshu platform cannot be underestimated.
    Link: https://daoinsights.com/news/new-zealand-tourism-seeks-boost-from-xiaohongshu-marketing-pros/

 

  1. What can luxury learn from the Shein PR debacle?

  • What happened: Desperate to transform its deservedly murky reputation, Nanjing-founded fast-fashion retailer Shein flew a group of influencers to visit its factory headquarters in Guangzhou in the middle of last month. Intended to burnish its reputation, the trip generated a slew of criticism.
  • Journalists revealed in their stories from the previous year that the company’s factory workers were paid only two cents per item while working 18-hour days with no weekends. Some employees were also apparently forced to take just one day off per month. Researchers also found that the factories had no emergency exits, and barred windows 
  • The value of influencers is increasing along with social media engagement, and wealthy fast-fashion companies are willing to offer significant financial incentives to those who are willing to risk a setback to their reputation.
  • Lesson: Luxury brands would be wise to avoid KOLs who are primarily driven by money and do not lead with values.
    Link: https://jingdaily.com/what-can-luxury-learn-from-the-shein-pr-debacle/

 

  1. Bilibili Embraces the “Melon-Eating Culture” in Real Life.

  • Bilibili and Shanghai TX Huaihai Plaza have organized an event that brings the “melon-eating culture” to life, targeting young people who enjoy watching online gossip.
  • A sense of community was fostered among Bilibili users by the event’s imaginative games and activities, which allowed participants to carry over their online persona into the real world.
  • The pink watermelon fields at the event attracted many young people, who took photos and shared them on social media platforms.
  • By displaying their Bilibili membership status or posting on a particular topic, participants had the chance to receive a free watermelon. They could also scan QR codes to access pertinent videos on Bilibili.
    Link: https://mp.weixin.qq.com/s/rWabhJN1G15ojCVLj_hRfA

  1. How much damage are French riots causing ‘Brand France’?

  • After a teenager was fatally shot by the police during a traffic stop, riots broke out in Paris and other French cities, resulting in extensive street brawls and aggressive encounters with the police.
  • Prominent stores, including Nike, Apple, and Louis Vuitton, experienced chaos and looting during the protests, while the situation remained tense with boarded-up stores on the Champs Élysées.
  • The riots in France became a top trending topic on Chinese social media platform Weibo, with the hashtag #Frenchriots generating 320 million views.
  • Businesses in France, particularly those in the luxury market, are concerned about the unrest and safety issues because China traditionally sends two million tourists to France each year for luxury shopping, but there is a chance that the unrest will cause Chinese tourists to be wary of going there again. In addition, the Chinese Embassy in France issued a safety warning to Chinese nationals following an attack in Marseille on a bus carrying Chinese tourists.
    Link:https://jingdaily.com/how-much-damage-are-french-riots-causing-brand-france/

 

  1. White people meals? What’s the story behind China’s ‘coldest’ food trend.

  • The trend really started to take off in May, when people started posting photos and videos of these simple meals on social media platforms in China
  • The similarities between these straightforward meals and the current “quiet quitting” mentality, where tired workers in China simply slow down their progress at work rather than quitting their jobs, were explored in one post on 163.com, a Chinese blog/media site.
  • Some people say the “white people meals” trend might serve more than just a stereotype; it may actually help challenge other hackneyed cultural beliefs.
    Link: https://edition.cnn.com/travel/article/white-people-meals-chinas-food-trend-intl-hnk/index.html

 

  1. Will China overtake the U.S. on AI? Probably not. Here’s why.

  • Some Chinese companies have gone as far as making their own rules. The Chinese version of TikTok, Douyin, mandates that AI-generated content be labelled and that users register their real identities before posting.
  • Chinese businesses have long been at the forefront of surveillance technology and have invested heavily in AI, from lining city streets with surveillance cameras to using facial recognition to track paper use in public restrooms.
  • Chinese companies have been investing in AI for years  from lining city streets with surveillance cameras to using facial recognition to monitor paper use in public toilets  and have long been at the cutting edge of surveillance technology. But when it comes to some other types of AI, Chinese firms lag years behind their international peers.That’s partly because the Chinese Communist Party-run government strictly controls information and communication.
  • In a recent study, Ding discovered that the majority of the large language models created in China lagged behind those created in the United States by almost two years, a gap that would be difficult to close even if American businesses had to adapt to regulation.
  • The Biden administration placed restrictions on the export of specific chips made anywhere in the world using American machinery to China. Washington said the move was necessary to prevent U.S. technology from being used in Chinese military applications or from making its way to Russia.
  • This has made it harder for Chinese tech companies to access the most advanced chips that run complex AI frameworks. 
  • It’s a question of rising to the occasion of what this moment represents. Do we care enough to protect people who are using this technology? Because people are using it whether the government regulates it or not.
    Link:https://www.washingtonpost.com/world/2023/07/03/china-us-ai-technology-chatgpt/

 

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WeChat Open Class Pro: A Look at What’s in Store for Businesses in 2023

March 2, 2023

WeChat Open Class PRO is a hyped and highly-anticipated annual conference organized by Tencent and aimed at creators.

In addition to showcasing exciting new developments and plans that WeChat has in store, the event aims to offer insightful information about how medium and small businesses can use the platform to spur growth and raise brand awareness. 

Let’s see how this can impact brands and businesses that use WeChat to reach their customer base…

 

Why is WeChat Class PRO important for businesses?

Weixin Open Class PRO also referred to as WeChat Open Class PRO, is a yearly conference organized for developers, companies, and marketers to learn about the most recent features, updates, and best practices for the largest social media platform in China. We covered the event last year – WeChat Weixin Open Class PRO 2022.

Here are some reasons why Weixin Open Class PRO is important for businesses:

 

Keep up with the newest features

  • Businesses can learn more about the most recent features and updates, including Mini Programs, WeChat Pay, and WeChat Work, thanks to Weixin Open Class PRO. 
  • By using new features to improve their marketing and customer engagement strategies, businesses can benefit from this information and stay one step ahead of the competition.

 

Find out the best practices

  • Businesses have the chance to learn how to use WeChat to grow their operations from successful case studies and industry experts through Weixin Open Class PRO. 
  • This can help businesses maximize their marketing efforts, improve customer engagement, and raise brand awareness.

 

Access to Tencent resources

  • Businesses can access resources from Tencent, including its developer tools and APIs, through Weixin Open Class PRO. 
  • In order to better serve their customers, this can assist businesses in developing customized WeChat solutions, such as Mini Programs.
  • In general, Weixin Open Class PRO is crucial for companies looking to stay competitive and use WeChat to promote business expansion in China.

 

📹 Watch the whole recording of the WeChat PRO 2023 conference here

 

What can we expect for 2023?

Based on the Open Class PRO  and our own observations, we can tell that:

 

WeChat Channels:

  • After a year of new features including adding customer service integrations, WeChat Channels will continue to grow. Check out WeChat Channels Stats 2023 & Growth Plan to find out more. 
  • Moreover, Tencent made a commitment to help creators. Their team stated that they would offer in a total of 5 billion free views in traffic, as well as richer and more comprehensive monetization tools and incentive policies, in order to assist anyone who is serious about broadcasting, growing, and earning money. 

Backstreet Boys WeChat Channels

New Formats:

  • WeChat appears to be introducing new ad formats and improved integrations.
  • There is certain format fatigue as the article format has been the same for years. This year, Tencent tests to implement new formats like:
    • Images will be stacked and horizontally viewable in a 3:4 aspect ratio.
    • Up to 300 characters will be allowed in the description section.
    • Optimized services related to image display to gain traction.

WeChat Image Message New Format

WeChat Search:

  • The WeChat search engine continued to expand, reaching 800 million monthly users:
    • Earlier this month, WeChat released a small program called Search data assistant.
    • Wechat’s backend has been updated with new features to help brands better track it.

 

🔍 A Quick Guide to WeChat Search As a Marketing Tool

WeChat SEO Search Keywords

WeCom:

  • Undoubtedly, WeCom will expand as well. WeCom, Weixin’s product specifically designed for businesses, offers practical office automation and communication tools. It is also being adopted by the education sector more and more.
  • According to the Industry Resilience and Recovery Potential Report 2023 that Weixin released at the Weixin Open Class PRO, SME businesses with fewer than 500 employees saw a 35% increase in the number of daily active WeCom enterprise users in the manufacturing sector year over year. 

 

AI development:

  • Lastly, it’s worth noting the advancements made by the WeChat AI team. In 2022, the AI team made improvements to the WeChat dialogue open platform called co-enterprise WeChat.
  • They also introduced a new service called “dialogue robot” for corporate WeChat. It will allow for more seamless integration between robots and artificial customer service in the customer service scene. This natural integration enabled companies to serve their users more efficiently.

 

Conclusion

Firstly, WeChat’s annual Open Class Pro conference is a crucial event for businesses seeking to stay ahead of the competition and expand their customer base in China. Moreover, we can expect continued growth and innovation from WeChat in 2023, with the 2022 conference focusing on mini-programs, payment, and search functions, and advancements in the app’s short video service, Channels. 

Furthermore, with Tencent’s commitment to investing in traffic and monetization tools, as well as advancements in ad formats and WeChat AI, businesses can anticipate new opportunities for engagement and growth on the platform. 

Meanwhile, if you want to know more about WeChat, 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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Tech news in China

August 4, 2022

Chinese TikTok re-bets on “Zhongcao”, a key to China’s e-commerce consumer culture

With the release of the brand-new independent recommendation app “Kesong,” Chinese TikTok Douyin is re-testing the “Zhongcao” business model. The action is a part of the video-sharing site’s larger strategy to develop into an interest-driven, omnichannel e-commerce ecosystem. Although “Zhongcao” makes it easier for content-focused platforms to capitalize on China’s e-commerce craze, it shouldn’t be done at the expense of user experience.

https://daoinsights.com/works/chinese-tiktok-re-bets-on-zhongcao-a-key-to-chinas-e-commerce-consumer-culture/

Tencent To Close NFT Platform Huanhe a Year After Launching

Major Chinese tech companies have started launching NFT-related platforms since last year. In addition to Tencent’s Huanhe, Ant Group introduced Topnod (JingTan in Chinese) on its AntChain in late 2021, and e-commerce behemoth JD introduced Lingxi, an NFT platform, in December. 

In China, NFTs are known as digital collectibles, but there are some important differences, such as limitations on the resale of these NFTs. Huanhe is supported by blockchains managed by Tencent and its partners. Buyers are concerned that the closure of Huanhe may also mean the end of collectibles purchased through the platform.

https://technode.com/2022/07/21/tencent-plans-to-close-nft-platform-huanhe-a-year-after-launching-report/

The Good Old Days: Why Nostalgia Amplifies Brand Collabs In China

According to a 2021 Mintel study, 77% of Chinese consumers enjoy items that bring back fond memories, such as childhood snacks. In difficult times like the COVID-19 pandemic, nostalgia is an easy way to elicit endorphins while reassuring customers. 

China has experienced a consistent flow of nostalgic food and cartoon collaborations in 2022, whether as a direct result of difficult times or not. International brands are also embracing the trend. L’Oréal released a line of cosmetics in April 2022 with the IP of the well-known Chinese cartoon (Black Cat Police Captain) from the 1980s. The line’s marketing even included the wistful theme song. 

https://jingdaily.com/brand-collaborations-nostalgia-wins-china-team-wang-loreal/ 

High-Tech Hues: Alibaba Algorithm Will Have Chinese Shoppers Looking Their Best This Fall

Retail trends are predicted before they occur thanks to a partnership between TWTA and Alibaba’s research arm DAMO Academy powered by AI. For instance, the information indicates that vibrant, lush orange and soft cyan blue will be popular colors in the fall and winter. The algorithm translated colors into digital codes after learning from a vast collection of product photos on Alibaba’s marketplaces and more than one million photos from fashion shows in order to identify patterns and forecast trends for both businesses and consumers.

https://www.alizila.com/high-tech-hues-alibaba-algorithm-has-chinese-shoppers-looking-their-best-this-fall/ 

A Guide To China’s Top Livestreaming Apps

More and more businesses are utilizing the e-commerce potential of live streaming, whether it be for performance art exhibitions, video games, or private luxury consultations.  Here are the top four live streaming platforms in China that luxury brands should be aware of because algorithm-driven short-video apps now account for the majority of online advertising.

Douyin

Due to its low entry barrier for product sales, Douyin’s live broadcast feature is especially well-liked among young consumers. Popular KOLs’ promotion of products can result in immediate sales. The app has successfully established a business model that functions as a personal and commercial platform thanks to additional alluring features like Douyin’s VIP Room, Flagship Store, and Global Choice. 

Kuaishou

Luxury brands have historically paid close attention to apps like Douyin and Bilibili, but with 578 million MAU and nearly $40 billion in revenue in the fourth quarter of 2021, Tencent-backed Kuaishou is becoming more and more difficult for major brands to ignore. Millions of users still rely on the app to buy cheap food and beauty products on a daily basis. 

YY live

YY Live offers a devoted user group of paying subscribers for a large number of content creators, even though it doesn’t have as many MAUs as top platforms Douyin and Taobao Live. The social network is positioned as being more focused on entertainment than strictly e-commerce by the platform’s hosts, who highlight streaming and chat features with virtual currency that is later converted into real money. 

Taotao live

Taobao live, which was introduced in 2016, draws both Chinese and foreign audiences with a mix of entertaining and business-related content. Taobao’s wide selection of reasonably priced goods contributes to some of its success in the fashion industry. Taobao makes it simple for livestreamers to maximize the speed and agility of the number of products they can try on, review, and sell to devoted audiences. Taobao pairs with an incredibly quick supply chain response. 

https://jingdaily.com/livestream-ecommerce-platforms-douyin-taobao/

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What’s New In The Chinese Market?

July 26, 2022

Xiaohongshu cashes in on tourism by setting up a travel agency

Puzhen Xiangli, a travel agency run out of Shanghai, has been established by Xiaohongshu. About 64% of China’s regular wanderlust users now start their journeys on the platform. Since Gen Z travelers prefer Xiaohongshu over more established online travel agencies like Ctrip and Fliggy, this popularity has paved the way for Xiaohongshu to further challenge established market players. 

Due to Airbnb’s exit from the market, there is now more room for domestic competitors to enter the fray. However, Xiaohongshu’s interests extend beyond homestay. Over 16 million views have been generated by platform searches for the keyword “Travel” so far, which is eight times more views than searches for the keyword “Homestay.” This shows that there is still untapped market potential for the platform to tap into.

Link: https://daoinsights.com/news/xiaohongshu-cashes-in-on-tourism-by-setting-up-travel-agency/

ByteDance debuts the first metaverse-like social app, Party Island

After the rise and fall of the formerly popular proto-metaverse social app Zheli, Chinese tech giant ByteDance has stepped up to take on the challenge of social networking with its highly anticipated social app, Party Island, which, according to Gamelook, a website focusing on the Asian games market, went live for public testing on July 13. 

With the help of their personalized avatars, users can interact with one another in the three-dimensional virtual space; meet up; hang out, and even go to events like concerts and movies with their virtual peers. The app’s access to a vast media library within the ByteDance empire, including live streaming events, films, and TV shows owned by Douyin and Xigua Video, adds to its appeal. 

This enables the app to provide its users with a rich digital experience that will amuse and engage them. While their resemblance to hot technology has largely won over the audience, it appears that the feature that enables a distinctive online experience and meets the social needs of today’s young Chinese is what will really pique user interest. The new innovation from ByteDance would revolutionize China’s online social networking scene if it goes off without a hitch.  

Link: https://daoinsights.com/news/bytedance-debuts-first-metaverse-like-social-app-party-island/

China’s “Silver Economy” Is Here To Spend

The 2022 product catalog for China has been encouraged to include clothing and other items for elderly people by the Ministry of Industrial and Information Technology. This is consistent with the Chinese Community Party’s 14th five-year plan, which was released in 2020 and has a section devoted to enhancing government support for the well-being of senior citizens. In comparison to their Gen Z and Millennial consumer counterparts, the “new” older generation has greater purchasing power and more free time, making them more readily available for discretionary spending. 

We wrote about this here >>> China Trend: Silver Generation

Link: https://jingdaily.com/china-silver-economy-government-support/ 

Brand zone search

It was created to strengthen the demand for building brands. Users actively look up brand terms to learn about the brand, comprehend the consulting services offered by the brand, and enter brand official account message templates, mini programs, and other private domains for information gathering and conversion. WeChat plans to develop more advertising options for search.

More details about WeChat search and brand zone in our article: A Quick Guide To WeChat Search

Link: https://mp.weixin.qq.com/s/SkduovJwM4Up0Nj9JNTw2A

Douyin, China’s TikTok, tests food delivery, bringing ByteDance into a market dominated by Meituan and Alibaba

In order to compete with market leaders Meituan and Alibaba Group Holding, ByteDance’s Douyin, the Chinese version of TikTok, is once again entering the food delivery market.

Some restaurants in specific cities, such as Shanghai, whose economies were severely impacted by a resurgence in Covid-19 this year, now offer a delivery option on their Douyin channels.  However, eateries are required to employ their own delivery personnel or use external delivery drivers. Market leaders Meituan and Alibaba’s Ele.me, on the other hand, are well known for their armies of delivery drivers, who are a common sight on Chinese city streets.

To gain market share, however, one must alter user preferences for the apps that have proliferated throughout many Chinese people’s digital existences. Meituan and Alibaba made up 69 percent and 26 percent of the market, respectively, in 2020. As a result, ByteDance is still facing a great challenge. In order to gain market share, marketers believe Bytedance should think about how to set itself apart from the competition and work on its pricing strategy. 

Link: https://finance.yahoo.com/news/douyin-chinas-tiktok-tests-food-093000424.html

Tencent makes a move to turn WeChat’s short-video function channels into a money pot through ads and e-commerce tools.

The Shenzhen-based company unveiled a new e-commerce tool on Thursday to build online stores on Channels, the quick-video and live-streaming platform inside the multipurpose app WeChat. This tool simplifies the procedure for merchants to list products, sell them, and collect payments.

The e-commerce tool was announced shortly after Tencent Monday added video ads to its Channels feeds, enabling users to directly shop through an ad and share it with friends on WeChat.

WeChat’s video service has added new users rapidly over the past six months, according to data from the Chinese analytics company iiMedia Research, thanks to concerts and entertainment content that makes use of Tencent’s music division’s resources.

Link: https://www.yahoo.com/now/tencent-makes-move-turn-wechats-093000560.html

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Latest News from China

April 20, 2022

China Online Advertising Market Insights 2022

  • In 2022, 43% of advertisers in China expect to increase spending on digital marketing, 
  • The top online advertising media are:
    • E-commerce 47%, 
    • a short video (16.6%) 
    • News (16.6%)
  • In 2021, short video advertising continued to expand at a rate of over 31%.
  • Platform traffic, which accounts for 74% of a brand’s advertising budget, is the most important KPI.
  • 70% of advertisers indicated they’d pay greater attention to the platform’s ability to innovate.
  • 90% of advertisers feel that integrated marketing is becoming increasingly crucial.
  • After short videos, live broadcasts, and newsfeed ads, SEM is predicted to become the primary online advertising channel by 2022. (since 2019, Tencent, and Alibaba set up independent search engines to strengthen the integration entrance function of each service module).

Content ecology search ads are search ads on content platforms such as Toutiao, Douyin, Xiaohongshu, Zhihu, etc. SEM are search ads on search engines such as Baidu and  Sogou. E-commerce ecology search advertising includes search ads on e-commerce platforms such as Taobao Search, JD search and Pinduoduo search. Social ecology search advertising includes search ads on social platforms such as Weibo and WeChat

Link: https://www.chinainternetwatch.com/31087/online-advertising-market/

‘The NFT Thingy Is Starting to Burst,’ Warns Nassim Nicholas Taleb

The NFT thingy is starting to burst. All you need is higher interest rates for things that make no sense to start making no sense.

“Jack Dorsey Tweet NFT Once Sold for $2.9 Mil, Now Might Fetch Under $14K”.

The origins of speculative investments like NFTs are ultralow interest rates and market pandemic monetary policy.

The market has been anticipating the end of the market epidemic monetary policy of ultralow interest rates and cheap money for some time. Taleb appears to be saying that much of the cheap money has gone into speculative investments like NFTs and that this trend is ending. “People have lost their minds,” C.Z. Zhao, the billionaire creator of Binance, remarked of the $69 million auctions of an NFT piece of artwork in 2021.

Others like the recipient of that $69 million fortune, an artist known as Beeple, also worried that NFT art was in a bubble but believe the technology is going to outlive that. 

He said that the internet, in its nascence, was also a bubble—and it eventually burst.“But it didn’t wipe out the internet,” he said. “And so the technology itself is strong enough where I think it’s going to outlive that.” A whopping $44 billion was spent on NFTs last year, Fortune previously reported.

Link: https://fortune.com/2022/04/16/nft-thingy-starting-burst-warns-author-the-black-swan-predictor-2007-2008-financial-crisis-nassim-nicholas-taleb-cryptocurrency/

WeChat Announces Progress on Fix for Enforced Following of Accounts While Ordering

  • When consumers wish to prebook, queue or order from an online menu in a restaurant, one of the most popular methods is to scan a QR code to gain access to the menu.
  • Users are often obliged to follow the restaurant’s official WeChat account as a result of this, with no option to opt-out. Many people have viewed the approach as a violation of consumers’ rights.
  • The Shanghai Consumers Council concurred and proposed that little if any, personal information be carried through when clients scan to order. Furthermore, eateries should provide manual ordering choices as well.
  • It sent a notice to official account developers, asking them to look into a problem in which customers are obliged to use official WeChat accounts while ordering through QR codes at restaurants. The platform is reminding developers, according to the letter, to check for any associated issues and to guarantee that the client experience is overall positive.

Link: https://pandaily.com/wechat-announces-progress-on-fix-for-enforced-following-of-accounts-while-ordering/ 

The End of Celebrity Marketing in China?

Celebrity marketing events in March 2022 fell by 50.9% compared to the same period last year, according to a recent analysis by Shiqu Insight Engine.

Co-branded marketing and new product marketing, on the other hand, increased by 91.3% and 57.6%, respectively, while sports marketing increased by 6.6 times. Brands that fail to respond swiftly enough to their ambassadors’ inappropriate behaviour are also caught in the crossfire.

Link: https://jingdaily.com/celebrity-marketing-traffic-stars-decline/ 

Consumers Hope to Get Rewards from the Brand for Loyalty | 2022 Digital Trend Report

Cheetah Digital, a marketing platform company, and consultancy, a consulting firm, jointly released the 2022 digital trend report.

The report shows that consumers want their loyalty to the brand to be recognized.

The study investigated the different reasons why consumers like brands and found that 78% of consumers like a brand because it rewards their loyalty.

In addition to being rewarded for their loyalty, consumers also believe that their favourite brands provide a consistent customer experience (80%).

About a third of people feel frustrated when they receive news that they cannot recognize their shopping or loyalty history.

Similarly, data trust is also important. Consumers surveyed (74%) claimed to have a favorite brand because it uses their data in a way that makes them feel comfortable.

Knowing this, marketers are taking various approaches to try to build trust in their data privacy protection, including a commitment not to sell information and seeking informed consent.

51% of consumers like a brand because they can communicate with the brand quickly and effectively.

Personalization is important for understanding consumer preferences. When consumers receive irrelevant content or offers (49%), when the message does not reflect their needs (41%), or when the brand fails to meet the needs of consumers after collecting information (35%), people are frustrated.

Consumers seem to be particularly open to certain areas of brand information.

Respondents said they either received the right amount of information or were even willing to receive more information about loyalty programs (71%), discounts (70%), VIP offers (68%) and brand value (65%).

Link https://mp.weixin.qq.com/s/jXgbVdVDV7V54P5nmN9YWw 

Elon Musk Makes Offer to Buy Twitter

On April 4th, 2022, Elon Musk announced that he had purchased 9.1% of Twitter. The news that the world’s richest man was now (briefly) the largest shareholder in his preferred social media platform. However, later on, he changed his idea to purchase the entire company. He offered $54.20 a share, valuing the company at roughly $43 billion.

  • Employees at Twitter are worried about Elon Musk’s takeover bid.

Things were a little different within Twitter. The news that Mr Musk wanted to buy the company and reshape it in his image shook much staff over the last ten days.

  • Musk wants to ‘unlock’ Twitter’s potential for free speech

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe,” Mr Musk said in a letter sent to Bret Taylor, the chair of Twitter’s board, on Wednesday. “I believe free speech is a societal imperative for a functioning democracy.”

Mr Musk has long used Twitter to slam critics, mock Tesla short-sellers, and suggest extravagant space exploration plans. In addition, he has distributed false information concerning the pandemic. In a tweet in 2018, he pondered about taking Tesla private and falsely stated he had secured finance for the transaction, for which he was fined $40 million by the Securities and Exchange Commission.

According to the letter written to Twitter’s chair, if Mr Musk’s buyout offer is not approved, he will “need to reconsider my position as a shareholder”.

Link: https://www.nytimes.com/live/2022/04/14/business/elon-musk-twitter

Secondhand Luxury Is Key for China’s First Time Buyers

In 2021, Chinese consumers are expected to spend $73.6 billion on luxury goods in domestic stores, up significantly from $53.6 billion in 2020 and nearly double the $36.9 billion spent in 2019.

Because Chinese younger people, mostly millennials and Gen Zers, are increasingly inclined to purchase secondhand luxury products, there could be a secondhand luxury boom in 2022.

The main reasons are as follows,

  • With international travel still unlikely for many consumers and viruses threatening offline retail, young consumers may turn to e-commerce for the convenience factor.
  • There are always long waits in queue to get a limited edition or it requires to purchases a package deal in the offline shop to get a brand-new product. While the younger generations are not that patient, they prefer to get what they want right now.
  • The price hicks in those luxury brands like LV, and Chanel drives more consumers to the secondhand luxury market.

The issue in this sector right now is that there is no clear market leader. As a result, market challenges such as authentication and fakes continue to exist.

International luxury resale platforms aiming to get into the Chinese market will also need to think about more differentiators to help them compete with domestic rivals. Global players can compete in two ways: by stressing their ability to source from other countries and by boasting about their authentication credentials.

After all, the greatest service should be the deciding element for customers in this luxury resale e-commerce site.

Link: https://jingdaily.com/secondhand-luxury-is-key-for-chinas-first-time-buyers/

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