Chinese Market Updates

February 7, 2023

Chinese internet search giant Baidu plans to launch a ChatGPT-style bot in March

Despite having a heavily censored domestic internet that is largely cut off from the rest of the world, ChatGPT has captured the attention of Chinese internet users. On regional social media, many people posted screenshots of the AI bot having unexpected conversations.

The application from Baidu will at first be integrated into its web search services. The combination will enable users to obtain search results in the form of conversations, similar to the well-known platform from OpenAI.

https://www.scmp.com/business/article/3208420/chinese-internet-search-giant-baidu-plans-launch-chatgpt-style-bot-march-source-says

 

China B2B Marketing in the Year of the Rabbit

 

Since trade shows and in-person meetings had to be canceled due to lockdowns and other circumstances, businesses had to find new ways to reach their target audiences.

New trends emerged:

  • Using trade publications for KOL marketing
  • Experiments with video and accelerated their WeChat content creation efforts using the WeChat Channels video platform,
  • Businesses can connect remotely with their clients and business partners thanks to webinars.
  • Digital-only trade shows and hybrid trade shows.

With COVID-19 still a major concern and vaccination efforts ongoing, it is more than likely that digital channels – especially newer channels – will to play a significant role

https://mp.weixin.qq.com/s/RG2S6bSwLJnQxwPz0Vvhdg 

 

Data report of LV, Chanel, Burberry, Prada and other official account in 2022

 

Service numbers include FENDI, Prada, HERMES, Chanel, Louis Vuitton, and Burberry. In 2022, Chanel has the most mass-produced items (totaling 72), while Louis Vuitton has the fewest (totaling 35), more than twice as many as the latter.

The opportunity is effectively not wasted because the service number can be pushed four times per month and all brands can send in groups three to four times per month.

Burberry, which has the second-highest number of mass-market articles, has the most likes and views, with totals that are 269.95% and 429.05% higher than the benchmark FENDI, respectively. Chanel, which has the most articles published in groups, won the challenge with 180.54% more reading than the benchmark, FENDI. 

However, Louis Vuitton, which has the fewest articles published in groups, has launched a counterattack, placing second overall among the six brands in terms of reading, liking, and viewing.

It can be seen on the mass distribution time distribution histogram that luxury brands tend to push more frequently in the second half of the week, occasionally on Saturday, and not as much on Sunday.

LINK: https://mp.weixin.qq.com/s/0bWYZZhJePNMCMHSEWiuBA

 

Spring Festival shoppers shift to 3 new trends in post-covid China

 

This year, the burgeoning young generation of consumers has turned away from the traditional idea of New Year’s goods  such as red gift boxes filled with roasted nuts and candies and biscuits in favor of contemporary trends in the post-pandemic era.

First and foremost, healthcare products were in high demand among Chinese people of all ages as health became a priority for everyone for reasons that were unmistakably related to the pandemic. 

The “firework” bubble gun machine was another popular item during the Spring Festival because most cities continued to impose stringent regulations on all kinds of fireworks. Young customers took an immediate liking to the firework substitute that closely resembled the sound and sight of the genuine article.

Thirdly, young shoppers this year exhibited a strong desire for distinctive and fashionable Chinese New Year gift boxes.

https://daoinsights.com/news/spring-festival-shoppers-shift-to-3-new-trends-in-post-covid-china/ 

 

Tencent carves out niche with new Brand Discovery mini program

 

Tencent Huiju will be replaced by WeChat’s new mini-program “Brand Discovery,” which will be introduced soon. 

The new program will concentrate on information aggregation and act as a hub from which users can find other smaller programs and get suggestions. Users interested in further browsing or purchasing a particular brand’s products will be redirected to the relevant mini program of that brand or shopping site.

Ma Huateng, the CEO of Tencent, has hinted that the company plans to take advantage of the popularity of short-form video content in the future, perhaps by using it to increase brand awareness and traffic to suggested products on the Brand Discovery mini program. 

https://daoinsights.com/news/tencent-carves-out-niche-with-new-brand-discovery-mini-program/ 

 

The male beauty market in China is developing fast and should not be overlooked

 

From 2016 to 2019, retail sales in China’s male beauty market were significantly higher than the global average (13.5% versus 5.8%).

59.50% of the total are between the ages of 18 and 25, while 21.30% are between the ages of 26 and 30.

Male beauty consumers can also find information on websites like Xiaohongshu and Douyin.

The top online stores for male beauty are Taobao and Tmall.

In China’s male beauty market, daily moisturizing creams and facial cleansers are crucial.

https://daxueconsulting.com/male-beauty-market-china/

 

 

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December 1, 2022

Sephora: The French retailer primed to be a digital powerhouse for C-Beauty

 

Five of the newest beauty trends that makeup companies should be on the lookout for in order to capitalize on the Chinese beauty boom were unveiled by Sephora. Chinese brands have been actively welcomed by the platform, which has accelerated the upgradation of regional market players.

Five local premium beauty brands are expected to generate over 100 million RMB ($13.92 million) in annual revenue with the aid of the retailer’s “China Accelebrate” program over the next three years.

https://daoinsights.com/works/sephora-the-french-retailer-primed-to-be-a-digital-powerhouse-for-c-beauty/

 

Baidu Baike: The Chinese online encyclopedia as a marketing tool

 

The Chinese search engine Baidu owns the online encyclopedia Baidu Baike, which sees billions of searches annually and 200 million DAUs (daily active users).

In fact, Baike has developed into a crucial marketing tool for companies looking to build their online presence in the Chinese market, and it has become essential for western businesses looking to improve their brand reputation in the nation. 

Each Baike webpage has a standard length of 800 characters and typically has a very straightforward structure with sections made up of text and images. The platform’s intriguing feature, however, is that it enables brands to establish a direct connection to their official website or social media accounts by allowing them to insert corporate links and referrals inside the page.

The most significant advantages include things like raising trust and authenticity levels, increasing search rankings on Baidu, and more

https://mp.weixin.qq.com/s/TfIoftKlY3_28vDvwnDPNQ 

 

Decoding China’s CIIE And What It Means For Foreign Brands

 

The expo, which is supported by the government, has been held at Shanghai’s National Exhibition and Convention Center since 2018. The six-day event in 2021 attracted more than 2,900 businesses from 127 nations, and the total value of the deals concluded there was $70.7 billion.

The fifth iteration of CIIE this year welcomed companies from 145 nations, including several L’Oréal, Kering Group, and Richemont brands.

Even when partnered with prestigious organizations like the World Trade Organization, government-run trade fairs are not known for their glitz or appeal to cutting-edge fashion brands and design houses. 

However, access to the enormous Chinese market has been siloed because COVID-19 restrictions continue to limit business travel to China and make it nearly impossible for locals to shop abroad.  

https://jingdaily.com/china-international-import-expo-2022-loreal-kering/  

 

Tencent tests animation video creation App “Wan Ju”

 

On November 25, Tencent conducted a limited test of the “Wan Ju” app. It is a tool for making straightforward animated videos. By using the text and editing resources in the “Wan Ju,” which include stories and science popularization, users can create animated videos.

Additionally, “Wan Ju” supports the split mirror function and allows the addition of multiple animation scenes, ensuring a variety of animation content. Users can view their creations in the “Personal Center” after they have been published and saved in the mobile phone album. 

 

Twitter: Half of top 100 advertisers stop advertising

 

A significant exodus of advertisers is threatening Twitter. According to market research firm Media Matters, half of Twitter’s top 100 advertisers have stopped using the platform 25 days after Elon Musk purchased the company.

According to Media Matters, those 50 businesses have given Twitter close to $2 billion in advertising revenue since 2020, with $750 million spent this year alone.

 

FIFA World Cup sets off consumption boom for JD.com

 

JD.com has partnered with supermarkets nationwide and extended business hours to launch a special “Night Market” in order to take advantage of the World Cup’s business opportunities. This will allow fans who stay up late watching games to take advantage of quick deliveries whenever they place an order. 

Since the Covid-19 outbreak and ensuing lockdowns, the idea of instant retail has rapidly gained traction in China and even turned into a well-liked business model for e-commerce behemoths like Alibaba and Tencent.

JD.com hopes to increase its market share and expand its instant retail services by taking advantage of the World Cup festivities. 

 

https://daoinsights.com/news/fifa-world-cup-sets-off-consumption-boom-for-jd-com/

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Chinese Market Updates

November 23, 2022

Alibaba And JD.com Keep Double 11 Revenues Secret. The Chinese Consumer Is Clearly Changing.

 

As the 14th Double 11 came to a close, China’s consumers were feeling down, and massive changes in consumption patterns prevented this year’s shopping festival from growing as rapidly as in years past.

The shopping craze hasn’t entirely subsided, though, and newcomers are catching up quickly in their transition from content sharing to online shopping. Then, new retail platforms and community group buying e-tailers contributed more information.

For the first time, the combined GMV from all significant e-commerce platforms surpassed 1 trillion RMB, according to Syntun, an independent big data monitoring company.

According to Tmall, the four power pillar industries have changed from being beauty, FMCG, consumer electronics, and clothing to outdoor sports, pet supplies, collectible toys, and jewelry. Sales for 358 brands in those four categories totaled more than 100 million RMB.

Link: https://jingdaily.com/double-11-alibaba-tmall-jd-douyin-consumer-trends/ 

 

Adidas just can’t do it in China anymore

 

Adidas reported revenue growth across the globe, except in “Greater China”

Adidas attributed the weak performance in China to the “challenging market environment,” primarily caused by COVID restrictions, but the company also brought up the high number of product takebacks in China, which had a significant negative impact on revenue. 

Old products that have not been sold or for other reasons are returned to the manufacturing process. Adidas is also dealing with extremely high inventory levels, which in the third quarter saw a 63% year-over-year increase, “due to the pressure on the passenger flow trend in Greater China.”

In China, Adidas is actually no longer listed among the winners. Local champion Anta Sports overtook Nike’s $3.7 billion in sales in China in August after reporting revenue of 25.96 billion yuan ($3.79 billion) for the first half of the year, an increase of 13.8% year over year. Anta Sports is now the largest sportswear brand in China.  

Adidas reported China revenue of 12.19 billion yuan ($1.72 billion), while another local brand, Li-Ning, reported revenue over the same period of 12.40 billion yuan ($1.76 billion). Adidas is now in fourth place in China as a result. 

Adidas recently began a partnership with the China Literature and Art Foundation to better the company’s comprehension of and engagement with local consumers.

 

2022 Autumn/Winter Fashion Trend Report

 

In the second half of 2022, the change of dress concept will be the dominant fashion trend. Strong and delicate coexist. There are many different multilevel dress concepts as a result of the re-integration of vintage clothing with modern materials, fashion, and function. 

After a protracted period of seclusion, consumers have rekindled their desire to dress up, but the retail industry continues to be driven by the idea of outdoor time. 

Men’s clothing focuses on “heavy fabric” and the retro revival, while women’s clothing emphasizes style, material, and function. Women’s shoes continue to innovate, while men’s shoes with multi-scene integration wear are in high demands.

  • Top 9 fashion trend

时髦知识分子Trendy Intellectual 

工装辣妹 Workshop Hottie 

摩登新中式Modern Chinese 

复古运动Retro Sports 

千金大小姐Classy Lady 

南法庄园 Panier Des Sens 

职场精英 Workplace Elite 

城市运动Urban Sports 

通勤汉元素 New Han-Style Clothing

  • Top 10 trending categories

衬衫式羽绒服 Shirt-Style Down Jacket 

粗花呢外套Tweed Coat 

无缝一体打底衫 One-Piece Bottoming Shirt 

轻暖羽绒 Lightweight Down Jacket 

重磅卫衣 Pure Cotton Sweater 

西部牛仔靴Cowboy Boots 

玛丽珍 Mary Jane Shoes 

托特包Tote Bag 

软支撑文胸 Soft Supporting Bra 

巴洛克珍珠项链Baroque Pearl Necklace

Luxury resale platform Plum records 100k customers on Double 11

 

The top three most popular brands during Double 11 were Chanel, Louis Vuitton, and Gucci, the report claims.

 The platform’s success is largely attributable to the business’s 2019 launch of an integrative live broadcast model. Plum has become one of China’s biggest platforms with the highest volume of sales and livestreams in its sector as a result.  

The secondhand luxury platform has expanded significantly since it began operating its circular fashion business in 2021. 

Due to changing attitudes toward used goods in the luxury landscape as well as young consumers who are increasingly willing to purchase pre-owned clothing and accessories, China’s second hand luxury market is currently booming. 

According to iResearch, platforms like Plum, Feiyu, ZZER, and Ponhu are leading the trend in mainland China’s domestic luxury resale market, which was estimated to be worth 51 billion RMB (8 billion USD) in 2020 and is expected to grow to 208 billion RMB (32.75 billion USD) by 2025.

https://daoinsights.com/news/luxury-resale-platform-plum-records-100k-customers-on-double-11/

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November 3, 2022

Top 3 private traffic platforms for merchants in China

 

WeChat, Alipay, and short video platforms like Douyin and Kuaishou have emerged as the most crucial platforms for Chinese merchants’ private traffic operations, claims a report from iResearch.

Because more than 80% of businesses believe the cost of private traffic has increased by 40%, conversion rate and leveraging public traffic have become the primary focus.

It is also becoming more common for private domain layouts to be multi-platform. Applets (mini-programs) are the standard configuration for private-domain businesses, and WeChat, Alipay, and short video platforms have emerged as the primary platforms for private-domain businesses.

Link: https://www.chinainternetwatch.com/35117/private-traffic-platforms/

 

Chinese Luxury Consumers Abroad: A Missed Opportunity?

 

Over the last five years, the number of Chinese people relocating overseas has increased due to economic and “living environment” factors, as well as, more recently, the mainland market lockdowns.

In major markets such as the United Kingdom, the United States, and France, overall search demand for the three categories is increasing by 23% on average.

Brands should also consider macro migration trends to markets such as the UAE, which, while currently serving a smaller audience pool, has seen an influx of Chinese expatriates in recent years and expects continued growth in these communities.

Fashion, watches and jewelry, and beauty are among the most popular categories.

Link: https://mp.weixin.qq.com/s/gxsFcc-HsmS182JKgz3O8Q   

 

Amazon Competitor Temu Ranks Third In App Downloads After A Month

 

Temu, a new e-commerce platform serving the North American market but owned by Chinese e-commerce giant Pinduoduo, launched just over a month ago.

Since then, it has expanded its merchandise range on its website and app to more than 100 categories of goods, including fashion, jewelry, health, and home supplies. 

Temu downloads in the App Store are steadily increasing due to a massive supply chain, extremely low prices, and a novel approach to wooing global shoppers. 

Link: https://jingdaily.com/temu-pinduoduo-app-store-downloads/   

 

Taobao officially resumed cooperation with Kuaishou chain

 

On October 28, Taobao alliance announced that merchants through Taobao alliance will be able to publish goods and service links in the Kuaishou live broadcast shopping cart, short video shopping cart, product details page, and other modules. 

It is expected to be fully restored by October 31 at 23:59:59 (in the event that some commodity categories and special commodities cannot be released, the Kuaishou platform’s access requirements will take precedence).

Merchants can also publish links to goods and services and generate transactions via the Taobao alliance, the Kuaishou live broadcast shopping cart, the short video shopping cart, the commodity details page, and other modules. 

Any charge adjustment must be made on the basis of the actual charges. Taobao alliance each charge standard, remaining unchanged from before.

 

JD will fully resume cooperation with Kuaishou external chain on October 29

 

Jingdong Union announced on October 28th that it would resume full cooperation with Kuaishou in the external supply chain. 

The grayscale testing of products is currently complete, and the trailer function of Jingdong goods in the Kuaishou broadcasting room will be gradually opened today, with full recovery expected on October 29th.

According to JD Union, the resumption of JD Union and Kuaishou cooperation means that Kuaishou users have more diverse consumption options and can experience the quality goods and services provided by JD in a more convenient manner.

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September 27, 2022

China NFT and metaverse marketing requires Tiffany, other global luxury brands, to tread lightly and be creative

Brands must respect China’s ban on trading in cryptocurrencies and NFTs while attempting to connect with the country’s young, tech-savvy consumers. Despite China’s strict policy, there are still ways for Chinese consumers to trade cryptocurrencies and NFTs. They can try to get around restrictions on cryptocurrency exchange platforms by trading with friends outside of China.

Link: https://www.scmp.com/business/article/3192752/china-nft-and-metaverse-marketing-requires-tiffany-other-global-luxury

 

Want Your Brand Collaboration To Stand Out In China? Get Nostalgic: 

Utilizing well-known cartoons or regional food brands that evoke nostalgia is one trend that stands out when analyzing collaborations in China. 77% of Chinese consumers will like items that bring back nostalgic thoughts in 2021, such as childhood snacks.

Link: https://jingdaily.com/brand-collaboration-nostalgia-marketing-spirited-away/

 

 Will Global Luxury Brands Forget About Bilibili?

Bilibili has only recently become popular in China, despite years of steady growth as it seized the once-niche “ACG” (anime, comics, and games) subculture. Tens of millions of new users have joined the platform since then, which is known for its “bullet chats,” real-time comments that fly across users’ screens as they watch videos, and a large amount of expert, user-generated content. It has also caught the attention of companies like Dior, Shiseido, and Mercedes-Benz.

However, the platform’s financial results are not particularly impressive. The main issue for Bilibili is turning its rapid user growth—305.7 million MAUs—into actual profitability.

Link: https://jingdaily.com/bilibili-q2-2022-profitability-user-growth 

 

How Luxury Fashion Brands Approach Douyin Marketing in China

More than 60% of the businesses on Deloitte’s 2021 Global Top 100 Luxury Companies list, including Gucci, Louis Vuitton, and Dior, are already active on Douyin, according to the 2021 Douyin Luxury Industry Annual Inventory Report published by Trend Insight, a platform that provides Douyin marketing data for KOLs and brands.

Typically, luxury brands would work with regional KOLs to introduce their new products and conduct their own live streaming on Douyin’s official account. Luxury brands also use the following alternatives:

  • VIP rooms,
  • Douyin Challenge,

Link: https://mp.weixin.qq.com/s/ZYRV5NFipUbxOvHqcfDcwg 

 

Top influencer Li Jiaqi’s online return gives Alibaba a renewed edge in huge live-streaming sales channel

The Lipstick King, Li, unexpectedly made a comeback to Alibaba’s live-streaming platform on Tuesday night, attracting over 60 million viewers to his show that featured home goods, underwear, and cosmetics. Without providing any additional information, either Li or Alibaba blamed a technical error for the June suspension of his show.

Li and Viya, a rival live-streaming queen, have become some of China’s most significant retail sales figures. On the first day of the Singles’ Day shopping festival last year, the two companies collectively sold goods worth 20 billion yuan (US$2.84 billion). This year’s Singles’ Day schedule has been made public by Alibaba, and the presales will begin late in the following month. This year’s Singles’ Day competition will feature a live streaming war.

Li’s new background was adorned with the phrase “shop consciously,” which he would only utter aloud before going missing. In an effort to hold online shopping companies responsible for their actions, the slogan “shop consciously” has repeatedly appeared in state media and local government notices since Chinese President Xi Jinping’s term began in 2013. He is obviously being cautious this time.

Link : https://www.scmp.com/tech/big-tech/article/3193315/top-influencer-li-jiaqis-online-return-gives-alibaba-renewed-edge

 

ByteDance launches fast fashion womenswear platform “If Yooou”

ByteDance, the parent company of TikTok, has introduced the “If Yooou” fast fashion womenswear line. The online brand currently focuses on the mainstream Western and Northern European markets, including those in the United Kingdom, France, Germany, Italy, Sweden, and other nations. 

ByteDance has previously dabbled in women’s fashion with a lookalike of SHEIN. Early in 2021, the Chinese tech giant launched Dmonstudio, an independent fast-fashion e-commerce portal, and compared its results to those of rival SHEIN.  Dmonstudio, however, announced on February 11, 2022 that it had ceased operations after just three months in business.

ByteDance must therefore concentrate on developing distinctive features to draw in and keep customers in order to avoid a similar fate as If Yooou. 

Link: https://daoinsights.com/news/bytedance-launches-womens-fashion-retail-platform-if-yooou/

 

Observation on the trend of China’s mobile Internet users in 2022

Mobile Internet users in China have been steadily increasing. 1.36 billion users are currently active; their average monthly usage time is 218.1 hours, and they use 23.7 apps on average each month. Video services, life services, and mobile shopping are the top three apps that users of mobile Internet use.

There are now more senior citizens who have access to the Internet. The elderly enjoy news, quick videos, square dances, and other applications. The dominant consumer segment has gradually shifted to “Generation Z.”

Mobile Internet users’ preferred methods of consumption are gradually shifting, traditional e-commerce platform growth is typically flat, and “social” and “interest e-commerce” are becoming more popular. Mobile office applications have advanced quickly in terms of working procedures.

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September 21, 2022

The first-place ranking companies in global app revenue are Chinese

Why it matters: With their popular video games and the globally successful TikTok app, Tencent and ByteDance have dominated the international mobile markets for years. The two majors have made significant investments outside of China recently, introducing new services and acquiring studios.

Tencent earned approximately $3.3 billion in the first half of 2022, making it the top-grossing publisher in both the game and non-game categories. Tencent generated over $2.6 billion during the same time period, making it the most lucrative gaming app publisher. Tencent was also responsible for 10% of the total revenue from the top game publishers.

In the first half of 2022, ByteDance’s TikTok remained the top-selling and most-downloaded non-game app worldwide, supporting the company’s revenue growth. TikTok and Douyin brought in more than $306 million in August from the international Apple App Store and Google Play, helping them to take the top spot in the list of global mobile non-game revenues. This amount was 1.8 times higher than it was during the same time period in 2017.

Link:https://sensortower.com/blog/top-one-percent-downloads-1h-2022

 

Sheep A Sheep: A new elimination game on WeChat takes China by storm

A new match-three game called “Sheep A Sheep,” which is playable on WeChat’s mini program, has recently become a huge online sensation across the country. Only 0.1% of players can complete every level, according to the game’s introduction. This has sparked a competitive spirit in many other young users, contributing to the current Internet fever.  

The game also offers players a taste of customization by letting those who transform into sheep change their skin covers following a successful match, and its comic-like art design combined with earworm background music has become another draw for China’s Gen Z users.

By classifying players according to the provinces they are from, the game fosters a strong sense of belonging and encourages players to succeed and promote their provinces.

As users are encouraged to promote the game on social media in exchange for desired tools to facilitate their play, which has expanded its digital reach, game tools are also another source of traffic. Sheep A Sheep’s popularity in China is a sign that there is a demand for content that is “Hard Fun” (difficult to win).

Link: https://daoinsights.com/news/sheep-a-sheep-a-new-elimination-game-on-wechat-takes-china-by-storm/

 

Je T’aime: ‘French Girl Style’ Wins Hearts In China

Customers are drawn to “French retro looks” because they can achieve “a careless feel and delicate balance between formal and casual,” which soothes a shopper who is exhausted or burned out from lockdowns.

Under the hashtag “the French lookbook,” users on Xiaohongshu have created more than 1.4 million posts that offer styling ideas incorporating these brands. The lack of physical retail channels in China is a defining characteristic of the league of French-style brands (and those with a Parisian spirit).

These brands are desirable because it’s challenging to obtain their products, so it’s advantageous when they give local KOLs clothing to promote.

Link: https://jingdaily.com/french-girl-style-rouje-realisation-par-carel

 

Review of Top AI copywriting platforms in China

The use of AI copywriting tools is expanding, and China is experiencing a similar trend.

In a matter of seconds, platforms like Xiaofamao, Giiso, GetAI, and others can assist in writing more compelling content.

Link: https://mp.weixin.qq.com/s/Y0qB5qJdopNAEbeASdza6A

 

Hong Kong superstar Andy Lau’s online concert on Douyin sets record 350 million viewers on a wave of Canto-pop nostalgia

On Saturday night, Douyin, the Chinese version of TikTok, streamed the two-hour concert live. It attracted about 100 million viewers in the first half-hour and then hundreds of millions more before it was over.

His performance sparked lively debate on Chinese social media sites, where several posts waxed romantic about the heyday of Canto-pop. On the microblogging platform Weibo, discussions about the event such as “Andy Lau online concert” quickly became trending topics after it began at 8 p.m. on Saturday. As more Douyin users watched the concert’s replay, the number of viewers of Lau’s most recent performance increased by 60 million to 410 million as of Sunday afternoon.

Major Chinese-language singers are increasingly using such online events to stay in touch with their mainland fans as lockdowns and other Covid-19 control measures are still being implemented nationwide.

https://www.scmp.com/tech/tech-trends/article/3191303/hong-kong-superstar-andy-laus-online-concert-douyin-sets-record

 

China’s budget-focused Pinduoduo launches Shein-style app to woo US consumers with cheap fast fashion

A Shein-style app has been released by Shanghai-based e-commerce company Pinduoduo to entice US customers with its offerings after shocking investors this week with strong second-quarter performance. According to Chinese media outlet LatePost, Pinduoduo is the owner of the Temu app. With a slowing domestic economy, the low-cost e-commerce company is looking to expand internationally. The app puts it in direct competition with fast-fashion platform Shein.

With the help of discounts provided when customers promote products on social media, Pinduoduo, which was founded by billionaire Colin Huang in 2015, has expanded quickly. It is regarded as a platform for more cost-conscious consumers, aiding in its resilience amid decreased spending in China, where consumer confidence has been shaken by rising unemployment and gloomy economic forecasts.

Link: https://www.scmp.com/tech/tech-trends/article/3191092/chinas-budget-focused-pinduoduo-launches-shein-style-app-woo-us

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September 15, 2022

Beijing Accelerates Adoption of Metaverse by Including it in a Development Plan

The Beijing municipal government unveiled a two-year Metaverse innovation and development plan with the goal of fostering the growth of industries connected to the Metaverse and assisting Beijing in becoming a model city for the digital economy. 

All districts are required by the action plan to develop technological infrastructure at the urban level and promote its application in a number of industries, including tourism and education. The Metaverse was also included in Shanghai’s five-year development plan before Beijing.

Link: https://en.pingwest.com/a/10691

 

Douyin launches a “downvote/dislike” function against malicious comments  

In response to the Chinese government’s call for a civilized and peaceful online environment, Douyin (the Chinese version of Tiktok) becomes the first short video APP that enables the “downvote” or “dislike” function in the comment area by clicking a “broken heart”” icon. 

The “downvote” feature was once tested by Facebook and YouTube, but it is no longer available. The fact that users can only “downvote” comments and not posts, and that the total number of downvotes is hidden from view, makes it unlikely that this new feature will offend the creators of Douyin. 

Link: https://www.sohu.com/a/581452520_114819 

 

Luxury Thinks Beyond Mooncakes For Mid-Autumn Festival Celebration

In contrast to the Lunar New Year or the numerous Valentine’s Days celebrated in the nation, which are occasions when luxury brands release limited-edition products, the Mid-Autumn Festival is more of a chance for houses to maintain their connections with local VIP clients and stakeholders. 

Many international brands have chosen to eliminate or reduce the number of mooncakes in their gift boxes in recent years. Fantastic examples from brands like Louis Vuitton, Fendi, and more.

Link: https://jingdaily.com/luxury-thinks-beyond-mooncakes-for-mid-autumn-festival-celebration/

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What’s new happening in China?

August 29, 2022

WeChat Channels and WeCom – Perfect Partners

Utilizing short videos and live streaming can be difficult. WeChat Channels introduce fresh approaches to improve interactions with fans and viewers thanks to WeCom solutions:

  • Buttons for adding the chat to the customer service account
  • Pushing business cards during a live broadcast
  • Employees at WeCom can have up to 50 profiles connected to a single WeChat Channels account.
  • Users can share the stream directly with their moments or groups.

Link: https://mp.weixin.qq.com/s/T0LAvsiVkXRLQ_kSzt-sUA

 

China’s cross-border e-commerce for first-time market entry

The Chinese government has promoted CBeC (cross-border e-commerce) in China over the past ten years by enacting legislative incentives like preferential tax rates and cross-border e-commerce pilot zones.

Cross-border e-commerce has lower regulatory barriers than traditional trade, which requires a significant initial investment, making it a quicker, lower-risk, and more accessible way for foreign brands to begin selling in China.

Link: https://mp.weixin.qq.com/s/0KxWcwmp4piKlS_rLQu4YA

 

ByteDance quietly launches search app Wukong in China, where Google is banned

Owner of the popular short video app TikTok, ByteDance, has quietly introduced a new search engine that guarantees there will be no ads online. ByteDance and Baidu, the dominant search engine in China, are now more directly competing thanks to Wukong, which is currently offered on the Chinese Apple App Store and various Chinese Android app stores.

According to the new app’s advertising, it offers “quality information and search without ads.” It’s possible to read the phrase as a subtle dig at Baidu, which has long drawn flak for its use of paid listings in search results.

Wukong offers a variety of search categories, including news, images, and video, just like other well-known search engines. Additionally, it offers a feature similar to web browsers’ “incognito mode” that does not save search history and lets users bookmark pages.

Link: https://www.digitalinformationworld.com/2022/08/tiktoks-parent-firm-bytedance-quietly.html

ByteDance rival Kuaishou narrows losses, boosts revenue at overseas operations amid gains made in domestic business

After beginning to restructure its international business in March, Kuaishou Technology, owner of the second-largest short video platform in China, narrowed losses at its overseas operations in the three months that ended June 30 while seeing revenue rise by more than 1,000% year over year.

Compared to the 4.4 billion yuan loss experienced during the same period last year, the operating loss at Kuaishou’s overseas operations significantly decreased to 1.6 billion yuan in the second quarter. Revenue increased by 1,328 percent to 103.4 million yuan from 7.2 million yuan a year earlier.

Currently, Kuaishou’s international operations are concentrated in Indonesia with its SnackVideo app and Brazil where it runs the short video app Kwai. In August of last year, the company removed its Zynn short video app from the US after failing to compete with TikTok, which is owned by ByteDance and has more than 1 billion users worldwide.

Link:https://www.scmp.com/tech/big-tech/article/3190023/bytedance-rival-kuaishou-narrows-losses-boosts-revenue-oversea

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Chinese market trends

August 24, 2022

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

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

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

 

Don’t You Dare Say “WeChat”: 

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

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

 

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

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

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

 

5 Tips For KOL Collaborations In China

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

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

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

 

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

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

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

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

H&M Returns to Tmall After Prolonged Xinjiang Cotton Controversy

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

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

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

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What’s new in e-commerce?

August 11, 2022

Why Experience, Story and Video Are Key Sales Drivers in Chinese Cross-Border Commerce

 

Tmall adopts a slower, more drawn-out strategy intended to entice customers with a wide variety of options, while Amazon places a premium on speed and convenience, with quick conversions and brief visits. Amazon is extremely quick in and quick out, and its search algorithm is built around helping you find the product you want as quickly as possible. 

Tmall is more concerned with presenting you with more brands, a wider variety, and as many different product images as it can. The goal of Tmall’s strategy, which is to interact with customers, is to do more than just make sales. China has essentially made shopping into a game in terms of e-commerce.

The app gives you the impression that you are there to experience something rather than to make a purchase while you are using it. Tmall does a great job of encouraging businesses to post more content, both user-generated and branded. Live Streaming and live videos have increased significantly.

https://www.retailtouchpoints.com/topics/digital-commerce/mobile-commerce/why-experience-story-and-video-are-key-sales-drivers-in-chinese-cross-border-commerce

 

Alibaba to scale up cross-border e-commerce activities

 

As domestic consumption on the mainland continues to decline, Alibaba Group Holding is stepping up efforts to expand its cross-border e-commerce operations through a new campaign with authorities in Hangzhou, the capital of eastern Zhejiang province. This initiative aims to support more Chinese exporters as they expand abroad.

Other Chinese cities have also made plans to increase the volume of international e-commerce, demonstrating a wider support for the recovery of the mainland’s economy.

Through its various subsidiaries, including the international Tmall and Taobao Marketplace operations, the Southeast Asian e-commerce platform Lazada, and the global retail site AliExpress, Alibaba has connections to the Hangzhou pilot zone.

https://finance.yahoo.com/news/alibaba-scale-cross-border-e-093000775.html

 

JD.com Launches Robotic Shops “ochama” in the Netherlands

 

Two robotic stores under the new brand name “ochama” were launched by JD.com, a leading supply chain-based technology and service provider, on January 10th, 2022, in the Netherlands. Additional locations will be added soon. The new store model introduces a previously unheard-of shopping format that combines home delivery service, pick-up shops where robots prepare the packages, and online ordering.

JD.com has never before had a physical retail location in Europe. Ochama, which combines “omni-channel” and “amazing,” is the first Dutch omni-channel retailer to provide both food and non-food items in a single shopping app.

Through ochama’s App, where a full range of A-brand products are offered covering fresh & packaged food, home appliances, beauty, maternal and child products, fashion, home furnishings, and more, customers can conveniently order products online using the omni-channel model.

https://jdcorporateblog.com/jd-com-launches-robotic-shops-ochama-in-the-netherlands/

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