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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Moutai: An Example of Spectacular Collabs Eyeing Gen Z

October 18, 2023

Today, we delve into the world of Moutai, a traditional luxury Chinese liquor brand that has gained spectacular virality in the recent weeks. Let us examine its essence, the factors underpinning its lofty status, and recent strategic moves. Moreover, we will look into the latest marketing campaigns and collaborations. 

 

Unveiling Moutai: A Testament to Tradition and Mastery

Moutai, also known as Maotai, is a distinguished name in the domain of Chinese liquor. Originating from the town of Maotai in Guizhou province, it stands as a symbol of China’s rich heritage of distilled spirits. Its meticulous craftsmanship, utilizing sorghum and wheat, bears testament to centuries of perfected techniques. The result is a globally acclaimed elixir embodying the essence of Chinese culture. Its steadfast dedication to time-honored techniques, while remaining open to contemporary trends, has been pivotal in captivating connoisseurs worldwide. One bottle of Moutai typically costs from 1,499 yuan ($223), to over 16,000 yuan ($2,390) for rare vintages. As it continues to evolve and redefine luxury, Moutai remains a pioneering force in the world of distilled beverages. Not only in China but eyeing global expansion as well. 

 

Moutai: Trendy Collaborations

First Moutai-inspired products started to appear last year with the first ever Moutai Ice Cream shop opened in the lobby of the brand’s headquarter in Guizhou province. After country-wide release, the product has quickly become an internet sensation. The flagship store had sold more than 5,000 Moutai ice-creams in 7 hours, achieving the sales of over RMB 200,000; while via the “iMoutai” APP 40,000 pieces were sold out in 51 minutes, generating a sales record of about 2.5 million yuan.

Moutai Ice Cream

It didn’t take long for another exciting collaboration to hit the market. This time Moutai joined forces with Luckin, another beverage giant famous for its coffees and other beverages. Together, they co-created a new flavor of latte, Moutai Latte which was an instant hit. Hashtags related to Luckin Coffee Real Moutai topped Weibo’s Hot List with hundred millions of views and users’ feed with full of pictures of the product itself or queues to Luckin stores across China. On the launch day, Luckin sold 5.4 million Moutai alcohol-infused lattes in one day topping 100 million yuan ($13.72 million).

A few days later, Moutai consolidated its modern and more approachable image with yet another one collaboration. This time, the brand collaborated with Dove on Moutai-infused chocolate. Again, the hashtag about the collaboration had immediately topped all social platforms’ trending topic lists.

Moutai Luckin Coffee

Successful Pivot Towards Gen Z

The creation of Moutai-inspired products is a strategic move to tap into the young consumer market, who normally have a oldish image towards the strong liquor. At the same time, many foodies including the youngest one might not be able to afford a bottle of spirit. Now, they can literally get a taste of it thanks to these different collaborations. For many of them, it will be their first encounter of the famous alcohol.

Within the last 3 months, Moutai gained more than 25 billions impressions on Chinese social media platforms.

Moutai Impressions 2023

Insights into Moutai: Captivating in its Simplicity

What are the intriguing facets of Moutai that contribute to its allure:

 

  1. Craftsmanship in Every Bottle: Each bottle  is a product of meticulous production processes, reflecting the dedication and artistry of its craftsmen.
  2. Collectible Value: Beyond its function as a beverage, Moutai holds significant collectible value. Rare and limited editions attract attention from collectors and investors, adding a unique dimension to their appeal.
  3. Strategic Collaborations and Limited Editions: The collaboration between Moutai and Luckin Coffee, resulting in alcohol-flavored coffee beverages, ice-creams and chocolates showcases the brand’s adaptability and willingness to explore new avenues.

 

Diversification and Expansion: A Strategic Trajectory

Moutai’s growth extends beyond the realm of distilled liquor. Recent ventures into diversified consumer products like chocolates and ice cream demonstrate strategic diversification, aligning with evolving consumer preferences and expanding its influence. Here’s to Moutai – a brand that epitomizes excellence and continues to enthrall the world with its sophistication and innovation. A toast to the legacy of perfection and the journey of innovation!

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

August 2, 2023

 

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

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

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

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

 

 

 

2. Baidu AI products overseas

 

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

 

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

 

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

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

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

 

 

 

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

 

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

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

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

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

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

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

 

 

 

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

 

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

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

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

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

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

 

 

 

6. Three New WeChat Advertisement Products Online Now

 

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

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

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

LINK:

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

 

 

 

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

 

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

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

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

LINK:

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

 

 

8. How AI technology is reshaping beauty retail in China

 

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

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

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

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

 

 

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Marketing to Women Empowerment: A Chinese Perspective on International Women’s Day

March 7, 2023

Every year on March 8, people celebrate International Women’s Day to honor women’s achievements and raise awareness of gender inequality. The first International Women’s Day was observed on March 19, 1911, in a number of European nations. Now, Women’s Day is celebrated all over the world now, and China is no exception. 

Let’s see how people in China celebrate Women’s Day and how it impacts the Chinese market.

 

Women’s Day in China

International Women’s Day (IWD) has gained popularity in China due to the extreme transformation of the position of women in Chinese society compared to their traditional societal roles of limited independence and work options. 

In 1949, IWD was declared an official holiday in China, and new laws were passed to give women greater control over their lives, combating old ideas of male superiority. As a result, women gained greater independence, education, and political representation, leading to their recognition as vital contributors to Chinese society. IWD is now celebrated widely across China to recognize and further promote women’s progress in society.

 

📆 Explore the full 2022 Marketing Calendar

How is IWD celebrated in China?

 

Chinese companies offer benefits to female employees on International Women’s Day (IWD), including time off, flowers and small gifts. Women, companies, and social organizations use the day to raise awareness about issues affecting women, such as sexual harassment, mental health, and discrimination. 

China also celebrates Women’s Day by giving women numerous product discounts on and around this day.

The self-care theme is heavily marketed on Women’s Day. It is one of the major factors contributing to the enormous sales that are generated on this day every year. With slogans such as ‘Treat yourself’ or ‘Happy Goddess Day’, brands want to inspire purchases. However, there are more and more voices contending that IWD shouldn’t turn into just another shopping holiday. Instead, it should concentrate on addressing issues of health, safety, and domestic violence, which are still major issues in China.

 

How International Women’s Day affects the Chinese market

 

In China, women are in charge of more than 70% of household purchases, including those for luxury goods, everyday items, and online shopping, according to a report by Alibaba.

China now boasts the third-largest female consumer market in the world, behind the US and Japan. Women’s rising purchasing power is one of the major factors contributing to China’s economy. Sheconomy will play an even more important role in the coming years.  Therefore companies increasingly emphasize the value of appealing to female customers.

For e-commerce platforms, International Women’s Day is a significant marketing occasion because it coincides with the introduction of fresh spring products with the “3.8 Festival.” E-commerce platforms can use the 3.8 Festival as an opportunity to market to women by providing exclusive discounts and promotions on goods that are catered to their interests and needs.

Aa growing number of Chinese women choose a single lifestyle over marriage, particularly millennials and Gen Z. These trends are affecting the Chinese market and economy as well. For example, online female shoppers reached 581 million by 2022. Nearly half of their purchases were in the beauty, skincare, and makeup sectors, according to Questmobile’s 2022 report on the “she economy”.

 

Top eye-catching campaigns for Women’s Day in China

 

Some brands have really developed a meaningful connection with their female consumer base. Those are the ones that offer a deeper message and seek to empathize with the gender inequality and social expectations that women face. Some of the campaigns from such brands are:

 

Tmall Super Brand Day:

Tmall Super Brand inspired women with a novel poem that included 26 brands in alphabetical order. The “Wǒmen are women” campaign’s main focus was on women’s feelings toward specific brands.

The campaign involved about half of the brands that took part in Tmall’s Super Brand Days. The purpose of the poem and video was to inspire women to develop their own “super brand” that reflected their unique spirit and personality. 

 

Perfect Diary 

For the Perfect Diary campaign, the brand interviewed female celebrities who had all experienced gender stereotypes in their lives. However, they didn’t let these inhibit them from following their dreams. Yamy Guo, a member of the girl group Rocket Girls 101, joined the campaign. In the past, she received flak for not meeting expectations of stereotypical female beauty.

Her experience brought to light China’s absurd beauty standards. Instead online users praised her and noted that she is unique because of her appearance.

The video gained over 6.4 million views on Weibo. It also included Yang Li, a comedian known for her anti-patriarchal comedy. Hui Ruoqi, a former captain of China’s women’s volleyball team, was one of the campaign heroines as well.

 

Perfect Diary IWD

 

Florasis

One of the hottest C-beauty brands, Florasis, took on a very unique approach. The brand launched a video campaign that examines how women deal with various mental health issues in modern society.

At the same time, the series featuring five women looked at different skin issues. By the end, it unveiled a new product called Florasis Balance Liquid Foundation.

The campaign, which celebrated the upcoming International Women’s Day also assisted to boost sales of its new product. Thanks to the brand’s well-liked livestream sessions, did both by amplifying this message through personal stories.

 

Net-A-Porter 

Luxury e-commerce Net-A-Porter launched a campaign film The Remarkable Day. The video highlighted various memorable moments throughout a female’s life, such as a wedding or pregnancy.

In China’s luxury market, Net-A-Porter was an early adopter of female marketing. The e-tailer has collaborated with several female celebrities over the last two years to engage its independent and expanding female customer base.

For its International Women’s Day campaign this year, Net-A-Porter highlighted well-known Chinese fashion houses that are likely to draw younger consumers away from social media sites and into its flagship Tmall store and WeChat marketplace.

 

L’Oréal

For its “I Say I’m Worth It” campaign, L’Oréal worked with a variety of Chinese celebrities. The list included Ouyang Nana, Gong Li, Ju Xiao Wen, Xin Zhilei, and Daniel Wu.

The actors discussed their personal experiences and ideas about female empowerment. The collection of short films inspired women to take on life’s challenges and figure out their own personal values.

The campaign demonstrated the company’s in-depth knowledge of Chinese femininity by using role models from a variety of life stages and professions that connected with the brand’s larger female customer base.

 

Neiwai

March last year, the Chinese lifestyle brand Neiwai debuted the final phase of its No Body Is Nobody campaign. 

The initiative began in February 2020 with a series of documentaries looking at the diversity of female bodies. Podcast series last year that covered a variety of feminism-related topics followed.

In order to commemorate the brand’s tenth anniversary, the campaign’s final installment featured five of the company’s female customers. The ladies shared their own individual journeys over the previous ten years. 

Neiwai Campaign

 

How can brands improve their Women’s Day campaigns?

Firstly, brands should focus more on showcasing the strength and accomplishments of women in 2023. The discussion around IWD is bigger rather than just offering discounts and promotions to better target female consumers. 

Brands can attract and engage female consumers who are passionate about these issues by developing campaigns and topics that advance gender equality and women’s empowerment.  

This may entail collaborating with organizations that champion women’s issues or producing content that highlights the achievements of women in various professions.

Secondly, for female customers, brands should aim to create individualized and tailored experiences. This can involve providing specialized product recommendations, individualized customer service, and special access to activities and discounts.

IWD is a great day for brands to forge a deeper emotional bond with their female consumers. If done correctly, it can increase loyalty and long-term customer relationships. Brands can achieve that by demonstrating that they comprehend and value the particular needs and preferences of female consumers.

 

 

 

Conclusion

IWD is celebrated widely in China to recognize women’s progress in society. Meanwhile, it serves as a significant marketing occasion for businesses to appeal to the country’s growing female consumer base. In recent years, it became an occasion for brands to discuss important societal topics related to women’s daily life. In conclusion, it’s a great time to connect with female consumers in a meaningful way.

🏮Explore our page dedicated to the most important festivals in China

If you want to know more about the Chinese market, 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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The WeChat Agency Blog: The Best of 2022

December 29, 2022

The year of the Tiger or simply 2022, was a very eventful year in China, to say the least. Contrary to the rest of the world, COVID-19 was still a predominant topic in the daily lives of millions of Chinese and had a serious impact on brands and their activities in China too, influencing literally every step they took from communication to sales. 

We’ve witnessed new trends and platforms being born and some slowly fading into memory. With the loosening of the restrictions, 2023 will be a fascinating year. Now, let’s bring the best pieces from our The WeChat Agency blog in 2022!

 

10. China Trend: Silver Generation

When everyone is eyeing China’s Gen Z, there is another fast-growing consumer group with a lot of leisure time, increasing purchasing power, and usually living within close-knit communities. COVID-19 and frequent lockdowns forced the Chinese elderly, already quite digital-savvy, to use online platforms more than ever before and subsequently sped up internet adoption among the eldest. 

Read here: China Trend: Silver Generation

China Silver generation senior

 

9. Top 5 alternatives for LinkedIn in China you need to know now

By the end of 2021, LinkedIn officially switched to CareerIn for users based in mainland China. Discover 5  social networking platforms that are not LinkedIn. 

Read more here: Top 5 alternatives for LinkedIn in China you need to know now

LinkedIn China

 

8. What is Dewu?

Do you know hat is Dewu (得物) aka POIZON? Deemed a male version of Xiaohongshu, it’s a fascinating social marketplace revolving around sneakers, fashion, and street culture. Brands like Adidas, Michael Kors, and Coach are already there.  

Read more: What Is Dewu?

Dewu Poizon China

 

7. How Douyin is Different From TikTok?

While essentially TikTok and Douyin are the same platforms, there are some major differences between these two. 

Read more: How Douyin is Different From TikTok?

Douyin Tiktok difference

 

6. WeChat Stickers – A Quick Guide

You can love or hate them but WeChat stickers are a huge part of communication on the app and can convey a myriad of emotions in one small GIF. Brands can join this fun trend too.

Read more: WeChat Stickers – A Quick Guide

WeChat Stickers

 

5. E-commerce Platforms in China

Learn more about Chinese e-commerce, there’s more than Taobao.  

Read more: E-commerce Platforms in China

Ecommerce China

 

4. Live Streaming on WeChat Channels

WeChat Channels live streaming definitely sped up in 2022. With more than 450 million daily active users and new built-in features (think e-commerce and customer service), brands are more excited to dip their toes into WeChat Channels live streaming. 

Find out how to apply and what are the most successful formats in one of our top blog posts of the year.

Read more: Live Streaming on WeChat Channels

WeChat Channels Live Streaming

 

3. ​​Douyin (China’s TikTok) Statistics 2022 [UPDATED!]

Douyin, China’s TikTok, in numbers. We are not surprised that this post made into top 3 of the year. 

Douyin (China’s TikTok) Statistics 2022 [UPDATED!]

DOUYIN Statistics China TikTok

 

2. What Is WeChat Marketing?

Your 101 to WeChat marketing. Everything you need to know and more. 

Read more: What Is WeChat Marketing?

WeChat Guide

 

1. A Beginner’s Guide to WeChat Channels

In 2022, no other WeChat function introduced more upgrades and new features than Channels. No wonder that our post introducing this platform within the WeChat platform raised so much curiosity and attracted thousands of your clicks. If you are a more seasoned Channels user feel free to discover more content about Channels on our blog. 

Read more: A Beginner’s Guide to WeChat Channels

WeChat Channels

If you wish to receive all updates from our blog please click here to subscribe. We are waiting to hear from you which topics would you like us to cover in 2023. 

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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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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.

KFC Pizza Hut McDonalds China

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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China’s Gen Z As Luxury Consumers

May 10, 2022

From Balenciaga to Gucci and Louis Vuitton, the Chinese market has become the most crucial driver of growth for European luxury brands. Nothing is more important for success in the Chinese luxury industry than capturing the hearts and minds of Gen Z. These are the Chinese consumer generation born after 1997.

Chinese Gen Z is growing as a diverse customer demographic that global brands want to understand more about. The luxury industry, in particular, given that China accounted for more than a third (32%) of the global market for luxury goods in 2020. It’s expected to surpass the US to become the world’s largest market for those products in the next five years.

Traditionally, luxury companies relied on an older, established, and affluent buyer base, with a minority of younger buyers keen to express wealth and status. While this buying pattern persists today, the luxury market has become significantly more democratic, younger, digital, and global in the last three decades, with luxury products considered not only as a method to indicate wealth but also as a way to represent one’s particular style.

What Makes China’s Gen Z Such a Good Target Group for Luxury Brands?

For luxury brands, Gen Z is a dream generation. They consider themselves to be “personal brands,” and spending up to nine hours a day online creating social media material qualifies them as expert brand builders. Many are familiar with crypto and NFTs, hastening a quick transformation in new luxury categories that earlier generations struggled with.

According to McKinsey, Gen Z, those born between the late 1990s and the early 2010s, represent 15% of China’s population. That equates to more than 210 million individuals. They grew up in China amid an unusual period of rapid social and economic development. Recently, Chinese brands have benefited from the country’s growing sense of confidence – and Generation Z may be the most confident of all Chinese generations.

This confidence translates into a more critical and outspoken approach toward foreign fashion labels. As a result, this generation may have a significant impact on the Chinese fashion and luxury sector.

They are brand sensitive, hungry for uniqueness, and wealthy, ticking all the boxes that luxury brands set out to offer. Winning over these key actors in high-end purchasing is the first step for global luxury brands to flourish in China.

What Works With Gen Z?

The growing influence of millennial and Generation Z consumers in the luxury business can be seen in how brands communicate their message and who they hire to speak it for them. WeChat, which is a one-stop platform that allows users to interact with friends and family, stay up to speed on the latest news, engage with one’s favorite companies, and pay for a variety of goods and services, also plays an important part in these conversations and sales.

For luxury brands, millennial and Gen Z spokespeople, brand ambassadors, and creative directors are becoming the standard. This is especially true in China. Gen Z celebrities such as Wang Yibo (born in 1997), Cai Xukun (born in 1998), Fan Chengcheng (born in 2000), and Ouyang Nana (born in 2000) are fronting advertisements for Chanel, Prada, Givenchy, and others. However, simply being present on social media, hiring young brand ambassadors, and dressing up popular celebrities is insufficient to reach and influence Gen Z customers.

For starters, like with millennials, rigid premium brand loyalty is virtually non-existent among Generation Z customers. This is especially true in China, where according to McKinsey & Company, 52% of consumers born after 1990 will purchase luxury goods other than their “favorite” brands.

Gen Z & Luxury – Do’s & Dont’s

The most common mistake in attempting to attract Gen Z is to appear as though a brand is particularly young or funky even if it does not fit the brand. “Young collections” are a good example of this. Many established fashion businesses attempted this and failed. When a company isn’t relevant to Generation Z as a whole, creating a purportedly youthful collection and hoping young customers will take the hook seldom if ever, works. To be relevant to Gen Z, brands must be present on platforms such as Bilibili, Douyin or Xiaohongshu. This is where they can better engage with the audience and create trending articles to attract the right audience. 

Learn more about What is Bilbili? and the main differences between Douyin and TikTok.

Generation Zers, on the other hand, value authenticity due to their easy access to information. People, in fact, expect brands to be brutally honest and truthful. As a result, many incumbent brands appear out of reach, inauthentic, and remote to younger audiences. A new, honest, inclusive, and spontaneous method of communicating with Generation Z is required. 

The implication for luxury brands is to be brave and unapologetic in their position for something. Clear values are what Generation Zers look for in brands. As a result, brand equity, brand positioning, and brand narrative are more important than ever. This might be putting many incumbent businesses at a considerable strategic disadvantage. 

According to reports, some of the most compelling reasons for Generation-Z customers to purchase personal luxury products in China in 2020 are:

  • Signaling social status – 6%
  • Gift – 20%
  • Identity statement – 24%
  • Uplift of confidence – 45%
  • Pursuit of fashion – 61%
  • A reward for self – 68%

Conclusion

Millennials (ages 26 – 41) are huge, but China’s Gen Z (ages 10 – 25) might be even bigger. As a new generation of consumers emerges, brands’ strategies and marketing must evolve to cater to this new demographic. This indicates that brands must be honest, truthful, and inclusive in order to reach out to the next generation, in addition to being trendy and developing products for the younger age.

Massive developments in the digital age indicate that generational divisions are narrowing, for better or worse. If businesses want to flourish and prosper in today’s ever-changing world and create a business in China, we believe they must discover more relevant ways to reach consumers of all generations. Check out our piece on China’s eldest consumers – Silver Generation. 

If you wish to know more about Gen Z consumers or need assistance 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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Xiaohongshu RED Beauty Trends 2022 – What’s Hot?

May 5, 2022

Xiaohongshu, a lifestyle platform, released a report dedicated to the trends gaining popularity at the beginning of 2022. Called Little Red Book, or simply RED, attracts a big number of beauty enthusiasts. As of now, it has over 200 million monthly active users. Beauty has consistently been one of the most popular content categories on Xiaohongshu, owing to a large user base with a strong interest in beauty and makeup.

Women account for 89% of clients who view beauty-related articles, while those aged 18 to 34 account for 87%, according to the survey. More importantly, many of them are now in the habit of using the site to study skincare and beauty items before purchasing them. Recently, we dug deeper into RED marketing with our Quick Guide to Xiaohongshu (Little Red Book) Marketing and talked about 5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account?

Earlier this month, China’s lifestyle social platform Xiaohongshu released its 2022 Xiaohongshu Beauty Trends Report. The report provides valuable insights into what trends are emerging in the beauty sector from a large user base that is highly interested in beauty and makeup. It allows brands and investors to iterate their products in response to market demand and develop more targeted marketing and investment strategies. 

Xiaohongshu forecasts trends based on content searched on the platform in the previous year, including ‘efficient skincare,’ ‘haute makeup,’ ‘stacking products,’ and ‘gender neutrality.’

The Four Major Beauty RED Trends 💁‍♀️

 

  • Haute Makeup
    Simultaneously, searches for personalized and custom makeup increased in 2021, as individuals sought makeup that might transform potential flaws into distinct qualities. Searches for “Square face makeup” jumped 1100%, “How to define olive skin” increased 470%, and “Facial angling” increased 163%.

 

  • Stacking products
    Combining the use of various items, according to Xiaohongshu, became popular since it was supposed to provide an exponential effect. Searches for “lip oil layering” and “perfume layering” jumped by 135% and 82%, respectively.

 

  • Efficient skincare
    When it comes to skincare products, quality always outweighs quantity. Searches for “simple skincare” grew by 170%, while searches for “skincare pyramid” increased by 560%.

 

  • Gender neutrality
    On the site, men’s attractiveness has grown in popularity. Men are searching for a broader range of beauty goods than perfumes, facial cleansers, and lotions. Searches for “Men’s eyebrow shape” and “Men’s cosmetics cream” increased by 130 and 354%, respectively.

Some of the RED Report’s Key Takeaways

 

Men’s beauty is emerging: More categories of cosmetics have been added to men’s beauty wishlists, in addition to the evergreen perfumes, facial cleansers, and lotions. Furthermore, the survey revealed a significant increase in men in 2021, with 14% of these becoming content creators. This group has the potential to push more men to abandon outdated notions of masculinity. Hence accelerating the rise of gender-neutral beauty labels.

Self-acceptance drives personalization: Similarly, the report demonstrates how Xiaohongshu users have embraced variety. This transition is evident in the emergence of personalized and tailored makeup showcasing the distinctive qualities of beauty customers. The practice of layering multiple cosmetics, such as lipsticks and perfumes, exemplifies the desire for individuality. Some of the brands gaining benefits from these are Perfect Diary, Proya, Carslan, FlowerKnows, Zeesea, and more.

The need for cosmetics ingredients is increasing: Cheng Fen Dang (成份党) has been a key trend impacting the beauty landscape in China since its inception in 2017. This exclusive club, founded by skincare enthusiasts with scientific degrees, discusses the professional understanding of cosmetic components and how they influence different skin types. Some of them use personal social accounts to provide product reviews that evaluate various substances and their features, which have become reliable sources of information for locals. 

Xiaohongshu’s Beauty Influencers

The number of beauty-related artists in Xiaohongshu is increasing, with a 14% increase in male users in 2021 (it didn’t happen without some controversies – see our news bulletin). Beauty influencers are also increasingly younger. The group born after the year 2000 accounting for 20% of the platform’s beauty creators. Almost 70% of Xiaohongshu’s beauty producers live in major cities.

Check out our previous posts to discover more about how to advertise on RED.

Conclusion

If you wish to know more about Xiaohongshu or need assistance in creating content, 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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