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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Discovering Possibilities: Assessing the Latest Advancements in China’s Industry

January 3, 2024

1.China’s Video Platforms Under Scrutiny Amid New Gov’t Campaign

  • The short video market in China has grown significantly; as of June, there were 1.02 billion online short video users, up 14.54 million from December 2022. 
  • Despite this expansion, the industry faces criticism for widespread dissemination of fabricated content. Content producers frequently create videos that cater to vulgar tastes or share sensationalist news in an effort to increase viewership and profits.
  • To address these concerns, Douyin, the Chinese version of TikTok, introduced measures in May requiring content creators to clearly label AI-generated content. This helps users distinguish between virtual and real content. 
  • Additionally, Weibo, the microblogging platform, initiated a trial of a “side note” function in September, similar to “community notes” on X (formerly Twitter). During this month-long campaign to counter inappropriate content and fake news, verified users can fact-check posts. 
  • Accounts or platforms found to be in violation face closure and penalties, as issued by the nation’s top internet watchdog.

LINK: https://mp.weixin.qq.com/s/CSDtfyeBj4SGDh37KGr46w

 

2.WeChat live shopping GMV hits 100 billion RMB

WeChat revealed on 11 December that WeChat’s shopping feature achieved 100 billion (13.9 billion USD) in gross merchandise volume this year.

Even with this remarkable number, sales of the specialized short video apps Douyin and Kuaishou, which are now the preferred online shopping destinations for many Chinese consumers, are still far below this amount. Douyin is expected to surpass Kuaishou’s sales of 800 million RMB (112.4 million USD) this year, with sales of 2 trillion RMB (281 billion USD).

Given that it has already developed a “pretty significant high-income and affluent customer base,” WeChat is now well-positioned to benefit from the expanding market for luxury live shopping. WeChat Channels can hopefully carve out a niche as the go-to destination for luxury live shopping, distinguishing itself from everyman apps Douyin and Kuaishou.

LINK: https://daoinsights.com/news/wechat-live-shopping-gmv-hits-100-billion/

 

 

3.China’s Gen Z ‘city walk’ phenomenon is good for brands

  • More than sixty percent of city walkers are wealthy, college-educated women in China’s first-tier cities between the ages of eighteen and thirty-five.
  • A growing number of lifestyle brands have already collaborated with regional influencers to produce themed city walks that are open to the public as part of their fan community.
  • To launch the brand’s newest coloring shade, Honey Light Gold, Schwarzkopf staged a “Color District” parade at Shanghai TX Huaihai Plaza. Taking advantage of the popularity of City Walk, the event brought together 10,000 spectators for the parade to celebrate bold styles and over 100 beauty KOLs.
  • Peco, a Chinese designer bag brand, adopted a playful approach with a “Dog Walk Show” on the streets of Shanghai to celebrate its ninth anniversary in late September. The brand styled nine models and dogs to stroll along the streets of Shanghai, with bag straps redesigned into leashes.
  • City walk’s resurgence is a uniquely contemporary Chinese phenomenon. The common thread uniting these city walk-related brand events is young people’s desire to get out more on the streets and live more in the moment.

 

 

 

 

 

 

LINK: https://jingdaily.com/posts/life-in-china-is-back-to-normal-so-why-are-foreign-tourists-skipping-the-country

 

4.Wechat account  test marketing content limit pop-up window

Users have been receiving relevant pop-up prompts in some WeChat account articles that contain marketing promotion information. These prompts indicate that the current content may contain unaudited third-party commercial marketing information, and users have the option to either continue reading the article or leave it.

Regarding this, a WeChat representative stated that “the pop-up window function is currently in the testing stage, and it is not a violation that will pop up; instead, the user will be repeatedly reminded and warned, and if the violation stays, the pop-up window will appear.”

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Unveiling Prospects: Delving into the Newest Advancements in China’s Market

October 9, 2023

 

1. Mainland Chinese tourists flock to Hong Kong for first post-Covid National Day holiday, but do not plan to stay long

 

  • Chinese tourists who were asked about their travel plans in the city said they would rely on travel articles posted on the Chinese social media and e-commerce platform Xiaohongshu, which is becoming more and more well-liked among young mainland Chinese people looking for interesting places to visit. 
  • A tourist referred to the impression she had of the city while scrolling through Xiaohongshu and said, “We are looking for a nostalgic feeling in Hong Kong.” 
  • Compared to pre-pandemic levels, travelers were considering shorter trips. Spending by visitors from the Mainland China had also decreased. 
  • The decline was attributed to both China’s economic slowdown and the Yuan’s depreciation, which is the country’s currency. He asserted that he thought spending would pick up once the Yuan gained strength.

LINK:https://hongkongfp.com/2023/10/01/mainland-chinese-tourists-flock-to-hong-kong-for-first-post-covid-national-day-holiday-but-do-not-plan-to-stay-long/

 

 

2. RED private message function“Sixintong”

 

 

A professional platform of XiaoHongshu called Sixintong offers features like welcome messages and automatic replies to greatly increase the brand’s marketing and operation efficiency in XiaoHongshu.

  • In order to encourage users to engage in deeper communication, it is possible to edit the relevant greeting so that it is automatically sent when a user sends a private message. Examples of this greeting include a basic introduction to the service or recent promotions and events. 
  • For some high-frequency basic private messages, we can set up menu to encourage users to click, such as phone calls, product inquiries, joining group chats, filling out forms, sending post links, and so on. 
  • Find potential customers in the comments section right away, actively seek out their needs, and help with conversion by doing so. 
  • The initial prerequisite is that there must have been more than 3,000 media purchases made overall over the previous 30 days.

LINK: https://www.niaogebiji.com/article-636629-1.html

3. How brands can best maximiae Chinese apps Xiaohongshu, Douyin, Weibo and Zhihu

 

 

  • Douyin

 

 

The platform with the most monthly active users (MAU) among the four is China’s TikTok Douyin, with 759 million. Short videos that are primarily intended for entertainment make up its content. The majority of internet users spend their free time there looking for both entertaining and educational content.

 

  • Xiaohongshu

 

Users on Xiahongshu are primarily drawn to articles about beauty and fashion. Small- and medium-sized KOLs, KOCs, and KOPs dominate the platform.

 

  • Weibo 

 

For news, announcements, product launches, celebrity endorsements, and apology posts, brands use the Chinese microblogging app Weibo as their official website. Weibo is used by many businesses when launching new products and collaborating with celebrities to gain traction because the platform attracts a sizable following of celebrity fans.

 

  • Zhihu

 

Zhihu is not a social media app like the aforementioned channels; rather, it is a Chinese translation of Yahoo! Answer. When they have questions or doubts about anything, from beauty tips to medical treatments, people look for reliable answers.

LINK:https://jingdaily.com/xiaohongshu-douyin-weibo-zhihu-how-can-brands-best-leverage-these-platforms/

 

4. From Jennie to Zendaya to Fan Bingbing: Chinese and global stars dominate Paris Fashion Week

 

 

  • With Hollywood heavyweights like Zendaya at Louis Vuitton, Pamela Anderson at Vivienne Westwood, Kylie Jenner at Schiaparelli, and Jennie Kim at Chanel all attending, Paris once again demonstrated how global celebrities are a vehicle for visibility across social media.  
  • Also making a splash was Chinese homegrown talent. Following her comeback to the spotlight, actress Fan Bingbing walked the Mugler runway alongside stars like Paris Hilton and Angela Bassett, while domestic babes Angelababy and Dilraba Dilmurat attended shows at Roger Vivier and Dior. 
  • The most effective marketing strategy a designer can use today is getting an A-list celebrity to support your brand, whether they are a member of the Kardashian-Jenner family or the internet’s current “it” person. And the metrics reflect that. 

LINK:https://jingdaily.com/jennie-zendaya-fan-bingbing-chinese-global-stars-paris-fashion-week/ 

 

 

5. China’s ‘Super Golden Week’ breaks records amid mounting economic challenges

 

  • Starting September 29, the eight-day ‘Super Golden Week’ is this year’s most popular holiday.
  • Over 2 billion people moved across regional boundaries in the nation, or 257 million people on average each day.
  • Thailand is expected to become the preferred destination for Chinese outbound tourists (partly due to its visa-free policy), followed closely by South Korea, Malaysia, Singapore, Australia, and the UK.
  • Apps like Fliggy, Ctrip, and Xiaohongshu make it simpler than ever for younger travelers to plan and book travel without using a traditional agent because they cater to their desire for authentic travel experiences.
  • As a way for young people to decompress, temples have also become very popular. 

LINK:https://jingdaily.com/china-super-golden-week-breaks-records-amid-mounting-economic-challenges/

 

 

6. The Daigou Index 2.0 The biggest threat to luxury in the next five years

 

  • The Daigou market in China is thought to be a problem worth $81 billion USD.  
  • Since 2019, the market’s growth is estimated to have exceeded 40%. Professionalization levels have increased, and more platforms have emerged to serve the expanding market.
  • Instead of your typical Chinese international student earning a little extra money on the side, a typical Daigou today is more than likely a large organization with significant purchasing power.  
  • But brands are not always cognizant of the scope and dynamics underlying this segment of the Chinese gray market.

LINK: https://mp.weixin.qq.com/s/YvJCarTqbyBjyZAN1Pv3mQ 

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Unlocking Opportunities: Exploring the Latest Developments in China’s Market

September 11, 2023

Tencent officially launched its large language model

  • Chinese tech giant Tencent officially launched its Hunyuan large language model at the company’s Global Digital Ecosystem Summit.
  • The move comes several months after fellow Chinese tech giants Alibaba and Baidu launched their own AI products.
  • The full stack self-developed Hunyuan LLM with over a hundred billion parameters is trained with 2 trillion tokens of pre-training data. It possesses strong capabilities in Chinese language comprehension, content creation, logical reasoning, and task execution.
  • In the future, the Hunyuan model will support Tencent Cloud’s MaaS (Model-as-a-Service), with customers able to directly access it through APIs and use it as a foundational model to develop applications for various industry scenarios, Tencent said.

LINK: https://www.jiemian.com/article/10057854.html

 

Publish without notification display in the homepage

  • When an article is posted, there will be two buttons, one to publish to all and one to publish without notification.
  • Publish without notification means that published content is not pushed to users. However, now the published content will be displayed on the home page of your WeChat account. The published article can also be forwarded to friends, friends in your circle, set for automatic replies, deleted, and so on.
  • Although, only fans can actively come to the home page to see the post article, if businesses publish frequently, it will end up making the home page look very busy. This then points to the need to be careful when using the post function in the future.

 

Xiaohongshu embarks on the era of “personal shoppers”, boosting social commerce

  • After the livestream momentum gained by the Chinese actress Dong Jie and subsequently KOL Zhang Xiaohui, Xiaohongshu now seeks to give influencers the official title of “personal shoppers”, stepping up efforts in social commerce.
  • The move closely follows the just concluded Red-commerce Partner Week 2023, which was hosted on August 24 in Shanghai. Touting the tagline “Entering the era of personal shoppers”, the event also marked the public debut of Xiaohongshu’s e-commerce division.
  • “Personal shoppers” would “play a crucial role in connecting merchants and consumers”. “The first things personal shoppers on Xiaohongshu need to work on is to understand the specific needs of their target audience, they are expected to direct other users to the products they are looking for.” As such, “personal shoppers” would act as upgraded KOLs, bringing together the content-focused “Community” and e-commerce ecosystems that are not yet well integrated on the platform.
  • This shows the ambition of Xiaohongshu in setting itself apart in the much-contested territory of e-commerce from existing experts such as Douyin (Chinese TikTok) and its rival Kuaishou by differentiating its approach to “influencing” consumers to that adopted by other social media platforms.
  • Such a practice also appears to be more persuasive and appealing to Xiaohongshu’s user demographics, which are economically satisfied and more knowledgeable in fields related to their interests.

LINK:https://daoinsights.com/news/xiaohongshu-embarks-on-the-era-of-personal-shoppers-boosting-social-commerce/

 

 

China Sets Filing Requirements for Smart Phone Applications

  • On 4 August 2023, the Ministry of Industry and Information Technology (MIIT) set a timeline to enforce the filing of mobile applications (APPs), in the published Notice on Carrying out the Filing of Mobile Internet Applications (Notice). 
  • APPs that are pre-installed on a smart phone or downloaded by users, should conduct filing through their network access service providers. For example, an APP hosted on Tencent Cloud’s cloud service should conduct filing through the Tencent Cloud portal. 
  • APPs based on API that users can use without installation, such as mini programs, quick apps, etc. should conduct filing through their distribution platform. For example, mini programs in WeChat should conduct filing through the WeChat portal. 
  • A foreign company that operates an App in China can register its Chinese subsidiary or representative office as the APP holder. Alternatively, it can enter into a cooperation agreement with a local partner.

LINK: https://mp.weixin.qq.com/s/w2xLVI75H4X59DRR5rODNA 

 

 

China’s newest viral collab: megabrands Luckin Coffee x Moutai join forces

  • Many young Chinese people are tasting their first cup of luxury liquor—Kweichow Moutai — at domestic café chain Luckin Coffee. The two beverage giants partnered up to co-create a new flavor of latte, Moutai Latte (酱香拿铁), which was released today. 
  • The collaboration was an instant hit, with long queues forming outside the 10,000-plus Luckin coffee shops distributed across China, and several related hashtags topping Weibo’s Hot List, each with over 100 million views. 
  • Through the partnership with Luckin Coffee, Moutai is using a fresh way to popularize its product’s taste and brand among China’s younger demographic. 
  • The collaboration seems to be a winning formula for both. The high-low partnership has tapped China’s guochao trend, offered surprise, delight, and nostalgia for consumers, and earned both brands new virality. 

LINK: https://jingdaily.com/luckin-coffee-moutai-collaboration/ 

 

 

‘Mom skincare’ —China’s maturing Gen X consumers give rise to new beauty opportunities

  • The cohort of 60-years-plus consumers could provide a new growth engine for skincare and personal care labels.
  • The options for mature skin are lacking, with many major local and global brands focusing on launching skincare lines for young women and men.
  • China’s Gen X consumers are big savers and users of high-end skincare labels. They have more knowledge about skincare and beauty than the preceding generation had.
  • Older consumers rank anti-aging effects as the top product function. However, hydration and moisturization also rank highly.
  • Brands have deployed celebrities in their 40s and 50s to endorse their skincare lines and promote their products on Weibo, Douyin, and Xiaohongshu. 

LINK: https://jingdaily.com/chinas-gen-x-saves-big-but-also-consumes-high-end-skincare/

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Exploring China’s Market: The Latest Updates

August 14, 2023

1. LinkedIn announced its decision to discontinue InCareer in China: 

  • Effective August 9, the decision was attributed to the fierce competition and challenging macroeconomic climate in the Chinese market, the firm stated. 
  • LinkedIn introduced the InCareer app for the Chinese market in December 2022. 
  • As of March of this year, InCareer had approximately 95,9600 monthly active users (MAUs), while its competitors 51 Job and Boss boasted 18.5 million MAUs and 17.3 million MAUs, respectively.
  • LinkedIn had previously expressed its intention to shift its strategic focus in the Chinese market toward assisting Chinese companies with overseas talent recruitment, brand marketing, and skill training.

https://www.ithome.com/0/711/201.htm

 

2. The Chinese short video platform Kuaishou showcased a new AIGC solution and AIGC digital human product called Kuaishou Zhibo:

  • The head of Kuaishou’s AI business highlighted that the AIGC solution is built upon Kuaishou’s self-developed foundational large language model. 
  • It will help creators in the generation of text, images, music, videos, and 3D works by providing them with inspiration, creative materials, and intelligent production services.
  • The company is developing technologies such as text-to-image creation, AI-supported cameras, and intelligent video scripting for its portrait camera app Yitian Camera, and its video editing app Kuaiying.

https://www.36kr.com/newsflashes/2381837287157001

 

3. Guochao brew: China’s Gen Z craves a cup of ‘Chinese-style’ coffee

  • More cafés have created a distinctly Chinese atmosphere by incorporating traditional architecture, such as a courtyard, decorating their interiors with antique furniture, and serving drinks in Gaiwans. 
  • They serve as popular spots for dates, chats, studying, and business meetings.
  • The localization goes beyond store aesthetics to infuse Chinese elements into the taste and preparation methods of the coffee as well. 
  • Because these specific product launches rely heavily on novelty, the buzz is often artificial and temporary. 
  • However, Guochao — or the integration of traditional Chinese elements in contemporary life — is no passing phase or gimmick.

https://jingdaily.com/chinese-style-coffee-guochao-gen-z/

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Keeping Up with China: Latest Market Updates and News

June 9, 2023

iFlytek demonstrates new AI writing tools based on its own language model, claims it outperform ChatGPT

 

With the release of its own AI language models and associated applications, iFlytek is continuing the contribution of Chinese tech companies to the global AI development initiative sparked by ChatGPT.

An artificial intelligence writing tool called the iFlytek AI Writer aids users in quickly creating articles based on given information and prompts. On May 6, the product had its initial release.

According to the chairman of iFlytek, the model has surpassed ChatGPT in the areas of Chinese long-text generation, medical knowledge, and mathematical prowess but still falls short of ChatGPT in this area.

Three upgrades will be made to the model soon. On June 9, the model will be improved with code and multimodal interaction skills, and on August 15, it will be improved with open-ended question, multi-round dialogue, and mathematical ability capabilities. He added that by October 24 the model will be on par with ChatGPT’s current level in English and surpass ChatGPT’s current level in Chinese.

https://technode.com/2023/05/10/iflytek-demonstrates-new-ai-writing-tools-based-on-its-own-language-model/

 

 

Xiaohongshu tests new feature enabling influencers to add shopping links to posts

 

As part of its push towards e-commerce transactions, Xiaohongshu is enabling a select group of merchants to invite platform influencers to include shopping links when they post recommended content.

Instead of connecting to external e-commerce platforms, the links are directly connected to stores within Xiaohongshu.

In January 2021, the feature was initially accessible to all platform creators, but it was removed six months later due to “unsatisfactory link conversion rates.”

Xiaohongshu, which is frequently compared to Instagram, has been refocusing on e-commerce in recent months. It tested a group-buy feature last month and found success with livestream shopping earlier this year.

https://mp.weixin.qq.com/s/FTb_v-_vYsghkMr454iNtg

 

 

LinkedIn to shut China app, cut over 700 jobs

 

 

InCareer, the Chinese version of LinkedIn, will shut down its job board in August. Thanks to our strong China-based team, InCareer had some success over the past year, but it also faced stiff competition and a difficult macroeconomic environment.

LinkedIn stated in October 2021 that the Chinese-language version of its services would be discontinued due to “a more difficult operating environment” and “greater compliance requirements.”

Instead, the Microsoft-owned company introduced InCareer, a stand-alone employment app. InCareer had 57 million users as of July 2022 and was linked to 875 million members globally via LinkedIn.

700 employees in China will lose their jobs as a result of InCareer’s decision to change its business strategy and assist Chinese companies with recruiting, marketing, and training personnel abroad.

https://news.linkedin.com/2023/may/a-message-from-linkedin-s-ceo

 

 

Dazi culture in RED

 

 

Users of Xiaohongshu list the “professional” connections they require to expand their personal social network beyond simple acquaintances.

Recently, the “Dazi Culture” has become a trend on the internet. Finding a partner for a certain activity or pursuit—be it a study partner, a travel companion, a movie buddy, or a workout partner—is central to “Dazi” culture.

“Da Zi” is a colloquial term for a friendship. They do provide a relationship that people are eager to have, especially when you just want someone to eat or shop with but not share your most private secrets with. Despite the fact that they are not close friends.

“Da Zi” may be the reason why young people associate with one another because they have common interests, taste, or preferences.

The “Voice Live” feature, which focuses on voice social networking and lets users create open rooms and have conversations with random people about a variety of topics of interest, was internally tested by Xiaohongshu in October.
In February this year, 小红书 launched a “group chat” function, continuing to break the reality-based social networking model of acquaintances and connecting strangers by interests.

https://mp.weixin.qq.com/s/rWi4TqsjEsMSXrk7uLMtew

 

 

Balenciaga gives a nod to sustainability for 520 festival

 

 

Balenciaga, a luxury French fashion house, is leveraging Chinese Gen Zers’ growing passion for sustainability in advance of the 520 shopping festival (also known as Internet Valentine’s Day).

Chinese Gen Z consumers’ attention to brands’ social responsibility has emerged as a defining characteristic. With the recent launch of 500 new sustainable products on Tmall Luxury Pavilion, luxury brands have made sure to stay on top of this trend.

Along with the launch of the line, Balenciaga also published an interactive mini-program on the messaging app WeChat. On the microblogging platform Weibo, as of May 10, the hashtag “Balenciaga 520” had accumulated 17 million views.

Balenciaga gives a nod to sustainability for 520 festival

 

 

Chinese Tourists’ Spending In Europe Rises, But Visitor Numbers Remain Weak

 

 

The return of Chinese tourists to foreign countries began closer to home, with Asian locations like Thailand, Japan, South Korea, and Singapore emerging as early favorites, according to data from several Chinese travel agencies. Richer Chinese tourists appear to be among the first to travel back to Europe.

Chinese consumers now pay much more to travel to Europe, and demand is still below pre-pandemic levels. Those who do make these lengthy trips, though, are spending more money than before.

Europe will likely have to wait until the end of 2023 or 2024 to see the return of large-scale Chinese tourism.

https://jingdaily.com/chinese-tourist-europe-spending/

 

 

Lancôme spotlights Chinese ceramics in eye cream campaign

 

 

For the promotion of its Absolute Eye Cream, Lancôme examined the beauty of conventional Chinese ceramics. The campaign uses the restoration of old objects as a metaphor for rejuvenating sagging or aging skin.

Chinese consumers’ desire for goods that honor their country’s rich cultural heritage, both old and new. Foreign brands can take advantage of this trend with clever product design and local partnerships, making it far from the exclusive domain of domestic brands.

According to the study, half of Chinese women between the ages of 25 and 30 use anti-aging products like skin-lifting creams, serums, and eye creams.

Lancôme spotlights Chinese ceramics in eye cream campaign

 

Court Ruling Sparks Debate Over Promoting Work on Social Media

 

 

Luxury brands are embracing the concept of “virtual luxury” more and more in order to appeal to younger, digitally savvy consumers who value sustainability and one-of-a-kind experiences. To engage customers and create fresh opportunities for brand interaction, this entails using virtual experiences and products.

But the question still stands: Is authenticity still important in marketing? While virtual luxury might be alluring in the short term, brands shouldn’t discount the value of authenticity and quality when fostering long-term consumer trust and loyalty.

Given these trends, luxury brands should think about how to strike a balance between the advantages of virtual luxury and the requirement to uphold a strong brand identity and reputation. This might entail coming up with inventive ways to combine tangible goods and services with digital ones, all the while upholding the brand’s commitment to excellence and authenticity throughout.

https://www.sixthtone.com/news/1012863

Checking the performance of prior posts within the last 30 days is now possible in the WeChat backend, which is a new data point available.

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Unlocking Opportunities: Current Updates from the Chinese Market

June 9, 2023

China’s short video war heats up as Tencent offers cash to influencers from rivals Douyin and Kuaishou

 

Tencent’s Weishi, a short video app, is enticing influencers from competing platforms, such as Douyin, TikTok’s Chinese counterpart, by offering cash rewards and other perks. This strategic move aims to capture the attention of viewers in the highly competitive market.

The program primarily targets content creators specializing in movie reviews, healthcare, parenting, and other relevant fields. Additionally, Weishi actively seeks individuals with a relatable and “down-to-earth” lifestyle to participate.

It is important to note that this recruitment initiative aligns with standard industry practices and is not a recent development for Weishi. After witnessing the immense success of ByteDance’s Douyin, which popularized short videos, Tencent revived Weishi in 2018. Subsequently, in 2021, Tencent merged Weishi with its long-form video platform, Tencent Video, creating a unified operation within its platform and content group.

https://www.scmp.com/tech/tech-trends/article/3220197/chinas-short-video-war-heats-tencent-offers-cash-influencers-rivals-douyin-and-kuaishou

Douyin (Chinese TikTok) saw an 80% increase in e-commerce total sales last year

 

In the year 2022, the total expenditure of consumers on purchases made through the short video platform amounted to RMB 1.41 trillion ($201.4 billion).

Douyin, owned by ByteDance, is actively promoting and encouraging its video viewers to engage in shopping activities through livestreaming and the app’s marketplace channel. This strategic move by the platform aims to diversify its revenue sources and explore new avenues for generating income.

During Douyin’s annual ecosystem conference held in Guangzhou, Wei Wenwen, the president of Douyin’s e-commerce division, unveiled plans to allocate RMB 10 billion to provide support to merchants and facilitate their businesses on the platform.

https://36kr.com/p/2261274230894216

Tencent Games see 25% growth in overseas gaming sector in Q1

 

In its latest financial report, Tencent, the Chinese tech giant, announced robust growth in gaming revenues during the first quarter. The company’s overseas gaming revenue experienced a significant increase of 25% compared to the previous year, reaching RMB 13.2 billion ($1.88 billion).

Similarly, gaming revenue within the Chinese market witnessed a year-on-year growth of 6%, amounting to RMB 35.1 billion ($5 billion). Tencent’s performance exceeded analysts’ expectations, with the company’s total revenue for the first quarter reaching RMB 150 billion ($21.8 billion), marking an 11% increase compared to the previous year. On a non-IFRS basis, the net profit for the period reached RMB 33.4 billion ($4.9 billion), representing a 27% year-on-year growth.

https://technode.com/2023/05/18/tencent-games-see-25-growth-in-overseas-gaming-sector-in-q1/

More and more brands are using young men as anchors

 

What is the rationale behind brands using “boys” for live streaming? Will the “boys trend” emerge as a new trend amidst the increasing competition for audience attention and rising solicitation costs?

Utilizing “male appearance level” to tap into organic traffic has become an unspoken consensus among numerous brands. According to data from the Forward-Looking Industry Research Institute in 2021, women constitute 53.8% of Chinese live streaming e-commerce orders, positioning them as the primary consumer group. Platforms like Taobao and Douyin see women accounting for over 60% of users placing orders. Additionally, in terms of age demographics, young and middle-aged individuals form the main consumer base for live streaming e-commerce products. Notably, nearly 30% of viewers belong to the post-1995 and post-2000 generations. Young women exhibit distinct advantages in the realm of live streaming.

Particularly in areas such as beauty products, skincare items, and household goods, women serve as the primary consumer group. Although the correlation between male hosts and products may not be significant, they can pique consumers’ curiosity, foster a sense of participation, and enhance brand attention.

https://mp.weixin.qq.com/s/ytJ005A5HISf9uK-Ka2h-w

62% Of Chinese Luxury Shoppers Are Buying At Home Vs. In European Capitals

 

Even with the reopening of international borders, Chinese luxury consumers continue to opt for domestic shopping.

In April 2023, 62% of luxury expenditures by Chinese consumers were made within China. As a result, domestic high-end retailers are witnessing robust sales growth.

Chinese consumers have a preference for personalized experiences and interactions with local sales associates. In response to this trend, luxury brands are expanding their presence in China by opening more stores and making global price adjustments.

These brands are also investing in experiential flagship stores and VIP-only boutiques to cater to the expectations of Chinese luxury consumers, who value personalized experiences and seek added value from the brands they choose.

Thus, despite the reopening of international travel, a significant portion of Chinese luxury consumption remains concentrated within China.

https://jingdaily.com/62-chinese-luxury-shoppers-buying-at-home-vs-in-european-capitals/

 

 

Strong Domestic Travel Rebound In China Foreshadows Return Of Global Chinese Tourism

 

 

There has been a notable increase in the demand for overseas travel and a rise in international spending. However, Chinese consumers are showing less interest in traditionally popular destinations such as Europe compared to pre-pandemic times.

Many Chinese consumers still have concerns regarding deterrents and factors that include the absence of adequate COVID-19 safety measures, strict testing requirements, and barriers related to visa acquisition.

Chinese travelers are now in search of unique and novel experiences and are willing to invest in entertainment, dining, shopping, and distinctive accommodations, including boutique hotels and one-of-a-kind Airbnb homestays.

Specifically, individuals aged between 21 and 45, as well as those with higher incomes, have demonstrated a strong desire to resume overseas travel.

https://jingdaily.com/china-international-outbound-travel-mckinsey/

 

5 strategies domestic brands use to outshine foreign ones

 

Chinese domestic brands are capitalizing on their local advantage to challenge the positive reputation enjoyed by foreign brands.

The emergence of the “Guochao” concept highlights consumers’ inclination towards brands that embrace Chinese culture, traditional flavors, scents, and symbols.

To remain competitive in the Chinese market, brands need to prioritize digital transformation, innovation, and establish a strong presence on various social media platforms.

Social media platforms play a pivotal role in brand growth, and features like live commerce contribute significantly to increased sales.

Brands are adopting an omni-channel approach by transforming physical stores into immersive experiences while simultaneously expanding sales through e-commerce channels.

In addition to Key Opinion Leader (KOL) strategies, brands are incorporating Key Opinion Consumers (KOCs) to attract and retain more loyal customers, effectively bridging the gap between brands and their target audience.

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Recent Updates and Industry Highlights

June 9, 2023

Face-swapping fraud sparks AI-powered crime fears in China

 

China is dealing with a major deepfake scam, which has raised concerns about an increase in fraudulent activities utilising AI tools such as face swapping and voice mimicry.

The case revolves around a prominent tech firm in Fuzhou, whose legal representative was reportedly swindled out of RMB 4.3 million ($610,000) after engaging in a video call with an imposter posing as a “friend” through the exploitation of AI face-swapping technology.

This incident has triggered extensive discussions on the ability of AI to deceive well-educated individuals in a matter of minutes. While China is still in the early stages of formulating regulations for AI, the nation’s internet regulator recently released a draft regulation addressing the use of generative AI and invited public input on the proposed measures.

The initial enthusiasm surrounding advancements like ChatGPT in China has been overshadowed by apprehensions regarding the potential misuse of AI to facilitate criminal endeavors.

https://technode.com/2023/05/24/face-swapping-fraud-sparks-ai-powered-crime-fears-in-china/

Tencent’s super app WeChat announced the official introduction of palm payment

 

WeChat’s palm pay feature demonstrates its adaptability to varying lighting conditions and the unique physiological characteristics of individuals’ palm lines.

This innovative payment method has been initially introduced on the subway line that connects to Beijing’s Daxing Airport. By utilizing this newly launched feature, users can now complete their entire boarding process without the need for their smartphones.

https://mp.weixin.qq.com/s/z664BYdriVy1_tbwSSHbWA

 

China Social Media In 2023: The Brand Guide To WeChat, Douyin, Xiaohongshu And Other Platforms

 

In China, the luxury goods market is flourishing, offering a significant opportunity for brands to captivate the interest of Chinese consumers. It is crucial for luxury brands to carefully select the appropriate social media platforms to establish connections with younger demographics.

By actively participating in relevant discussions and fostering a community centered around broader themes, brands can easily connect with users on platforms such as Xiaohongshu. To resonate with Chinese consumers, luxury brands should strive for subtle, sincere, and locally tailored storytelling.

Incorporating gamification elements on platforms like WeChat can enhance a brand’s social standing and create exciting opportunities beyond traditional features. Furthermore, leveraging short videos with compelling narratives on platforms like Weibo can establish profound emotional bonds with audiences and effectively convey brand messages.

https://jingdaily.com/chinese-social-media-xiaohongshu-douyin-wechat-weibo/

Strong Domestic Travel Rebound In China Foreshadows Return Of Global Chinese Tourism

 

Chinese Gen Z individuals are embracing the trend of “Dopamine Dressing Style,” which aims to embody joyfulness through clothing choices.

This new fashion phenomenon, characterized by vibrant and vivid colors, is believed to have originated among university students.

One of her short videos, featuring five colorful outfits representing different moods throughout the weekdays, has gained significant exposure and attention.

The popularity of the “Dopamine Dressing” style reflects the increasing significance of emotions in the fashion industry’s consumer journey, particularly among the post-90s and post-00s generations.

By utilizing colors as a medium for emotional expression, individuals can experience an enhanced sense of pleasure, effectively triggering the chemical messenger of happiness.

How has China’s Gen Z turned the happy chemical Dopamine into a fashion fad?

 

The Chinese Traveler Is A Global Luxury Consumer

 

The post-pandemic luxury industry will continue to witness a significant presence of Chinese travelers, and luxury companies should be prepared for their return.

In light of the three-year-long COVID-19 restrictions, brands must adapt and comprehend the changes in Chinese consumer behavior and expectations.

To strengthen customer relationships and ensure consistent experiences, it is crucial for luxury companies to utilize Chinese digital platforms such as WeChat, RED, and Dianping.

Emphasizing digital capabilities that facilitate product searches, store appointment bookings, and seamless integration with popular payment platforms like WeChat Pay and Alipay is of utmost importance.

Collaboration between global brand teams and local Chinese teams is necessary to cater to the needs and expectations of Chinese travelers, viewing them as a global consumer profile and delivering coherent experiences across the digital landscape.

https://www.luxurysociety.com/en/articles/2023/05/chinese-traveller-global-luxury-consumer?ueid=3a844b2001

 

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Latest China News

May 31, 2022

Chinese Consumers are Comfortable Sharing their Data Compared to Consumers in Other Markets

Between 2017 and 2021, China’s loyalty programme market grew at a 13.7% annual rate to $15.7 billion. Over the following four years, it is predicted to increase at a rate of 13.0% each year.

Quick-service restaurants are establishing green rewards programmes to incentivize consumer behaviour in order to promote a more sustainable lifestyle and attract consumers who are driven by eco-friendly companies.

Link: https://www.businesswire.com/news/home/20220512005913/en/China-Loyalty-Programs-Market-Intelligence-Report-2022-Chinese-Consumers-are-Comfortable-Sharing-their-Data-Compared-to-Consumers-in-Other-Markets—ResearchAndMarkets.com

WeChat Channels Live Streaming Rewards “Traffic Coupon” to Drive Traffic and Sales

Option 1: Mini program live streaming: Brands and businesses can add a Live Streaming module or component to WeChat mini program. For example, brands such as Perfect Diary, Forest Cabin (in Chinese: 林清轩), and Prada have held live streamings through WeChat mini program for sales or events.

Option 2: WeChat Channels Live Streaming: Up to early 2022, WeChat Channels have reached 450 million Daily Active Users, a 50% increase compared to early 2021. WeChat Channels Live Streamings are more visible to the public audience compared to mini-programs. For example, people browsing content on WeChat Channels may enter live streaming of a brand they didn’t know before.

Traffic coupon: In 2022 April 12th to December 31st, any live streaming for shopping purposes with the shopping cart function activated will be automatically participating in Merchant Incentive Plan. 

Brands or merchants have to introduce 50 new viewers that didn’t come from WeChat Channels to gain official traffic coupons. You can drive followers from your WeChat Official Account, spread the news through WeChat Moment, WeCom, personal chats, or groups, to Channels Livestreaming.

Link: https://walkthechat.com/wechat-channel-livestreaming-rewards-traffic-coupon-to-drive-traffic-and-sales/

How to Inspire Word of Mouth Marketing from a Chinese Audience

Any marketing strategy’s success is determined by two factors: reach and impact. Unlike mass media advertising, which has a broad reach but a limited impact, word-of-mouth marketing has a narrower reach but a far greater impact.

The value of word-of-mouth marketing is represented in statistics: according to Semrush, word-of-mouth marketing accounts for $6 trillion USD in global expenditure each year and accounts for 13% of all sales.

Currently, the top social media platforms in China for word-of-mouth marketing include WeChat, Weibo, Xiaohongshu (RED), and Douyin (Tik Tok’s Chinese counterpart), all of which also have their own e-commerce functions built in.

  • KOC
  • DTC
  • Group Purchase

Link: https://mp.weixin.qq.com/s/IRwuZJ_-B26ACLLWt5osEw

Three Chinese Digital Marketing trends in 2022 

 

Regular product updates: More than 200 million new products will be launched on Tmall in 2021, accounting for 35% of the market. It signifies that new products have emerged as one of the most critical components of brand growth.

New goods, on the other hand, do not have to replace prior ones; rather, the new ones might be based on the previous ones and emphasise essential components to highlight the brand’s individuality. For example, OPPO debuted a new series Reno 6 with a light blue cover in September 2021, then 6 months later, they released a new colour Purple Star with the same feature.

Second, more and more brands are collaborating with other brands, particularly those that focus on completely different areas, in order to introduce a brand-new concept and capture the audience’s interest. For example, LV and Nike Air Force collaborated on a new shoe design. Holland, in collaboration with Pokeman, has released a new line of cakes.

Introducing virtual space and unleashing marketing imagination: Because of the Facebook revolution, metaverse has grown in popularity since 2021. More and more firms are creating advertising based on this notion, and NFT makes it even more appealing. With the advancement of new technology and the increasing risk of celebrity (scandals), more corporations are creating their own virtual idol for marketing objectives.

On the one hand, developing virtual idols assists firms in lowering marketing costs. Brands, on the other hand, can create a virtual image to suit the company’s position.

Brand responsibility has been enhanced: In recent years, a few corporations have developed a CSR (Corporate Social Responsibility) department with the goal of increasing both social and financial value. Sustainable development will be one of the most essential aspects of a brand that encompasses three major themes: environment, climate, and biodiversity.

– Kangshifu and Pepsi both launched a drink without labels, to reduce carbon and build an environmental concept.
– Kuaishou created an advertisement, revealing the reality of the polar bear, and started a public campaign calling upon the whole society and corporations to actively respond to global warming with low-carbon actions.
– Clarins, together with WWF, created a foundation, starting with protecting the habitat of Siberian tigers and appealing to people to pay more attention to the living status of those tigers and hoping to help them come back home sooner.

Link: https://socialbeta.com/t/10-digital-marketing-trend-in-2022

WeChat Channel Admin Can Be Migrated

Previously, if we wanted to display the channel on the official account’s page, we needed to have the same administrator for both the WeChat official account and the channel. However, if the administrator of the official account is removed for personal reasons, but the administrator of the channel remains the same because the channel administrator does not support change, the channel will not be featured on the front page.

Now the administrator of the channel can be changed, and the function is still under test.

Key points:
It can be replaced 5 times a year
Only certified video numbers are supported
Private messages cannot be migrated

Link: https://developers.weixin.qq.com/community/develop/article/doc/000882fe1d01a003afed3e00e5b013

 

 

 

 

 

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Weekly China News

April 26, 2022

WeChat Tests a New Retweet-Like Feature

The feature allows users to re-share content posted by others. Users can press and hold any post on Moments to activate the re-share function. The feature will make it easier for WeChat to track the source of popular posts. 

WeChat also added more support for embedding images and files in group announcements.

Link: https://technode.com/2022/04/24/wechat-tests-a-new-retweet-like-feature/

Introducing WeChat Farm, A New Opportunity for Luxury Brands

What Happened: WeChat has introduced a new feature that allows users to express their moods or feelings by using a new option called “Add Stickers.” To express their status, users can now use whimsical animal stickers as well as backgrounds that match cartoon memes and emojis.

The Jing Take: In the digital era, social currency, or influence on social networks and communities, is crucial. A brand might easily be forgotten if it does not understand how to use social marketing, especially in China.

As sections of China remain closed, what better way for luxury to experiment with the burgeoning digital fashion sector than to offer WeChat avatars? The fad is still in its early stages, but there is no better moment to get involved than when people are cooped up at home and looking for fresh online entertainment options.

Link: https://jingdaily.com/wechat-farm-sticker-digital-luxury/

How Luxury Brands Should Navigate Chinese Fonts

A new initiative aims to “rectify the problems of incorrect and non-standard use of Chinese characters and to eliminate ‘ugly’ and ‘weird’ font usage which contain vulgar and sloppy exaggerations and deformations in fonts, or violate the writing norms, cultural connotations, and aesthetic standards of Chinese characters.”

Though characters appear to be an obvious and go-to strategy for companies in China, they are one of the most difficult aspects to design, particularly when it comes to commercial font selections.

Link: https://jingdaily.com/chinese-fonts-regulations-dior-prada/ 

ByteDance Tests a New Social Media App Targeting Power Readers: Report

  • ByteDance, the creator of hugely popular short-video apps Douyin and TikTok, is reportedly internally testing a new news aggregation social app called Shiqu.
  • The new app could put ByteDance in competition with other Chinese apps that focus on creating a thinking community, such as the social and review platform Douban and Quora-like Zhihu. 
  • Shiqu looks to be catering to a more sophisticated user base that wants a customized reading experience and communities to discuss ideas.
  • At the moment the app still hasn’t been opened for public registrations.

Link: https://technode.com/2022/04/06/bytedance-tests-a-new-social-media-app-targeting-power-readers/ 

This Generation of Young People Refuses to Wait Long for Pre-sale

Zhang Xin, a Post-90s girl, thought as a consumer that she was spending money to find rage by going from spot to pre-sale for 7 days and then to pre-sale for 15 days. Zhang Xin finally broke through after a 30-day or even 45-day pre-sale. There are millions of people in the small red book with the same concept as her, and everyone is suffering from pre-sale.

Young people are no longer silent in order to purchase clothing in stock. They seek to disrupt the pre-sale routine and no longer serve as a “scapegoat” for corporations looking to transfer risks. # The topic of extraordinarily long pre-sale # related content, which has been read by more than 100 million Weibo hot searches and 5 million Xiaohong book readers This year’s youth are attempting to show their discontent.

A Taobao customer service said that the return rate of pre-sale clothes is much higher than that of spot goods, and the return rate of clothes with a pre-sale period of more than 15 days can even reach 90%.

Even if the return rate stays high, the shop will still choose for pre-sale. In comparison to consumer complaints, store owners are more concerned about the potential of an inventory backlog. No one can anticipate the sales amount with any degree of certainty. Pre-sale has become the most secure option for shoppers in times of tremendous uncertainty.

If the pre-sale period in pinduoduo surpasses 7 days, the products will not be featured on the platform first. Previously, Taobao had temporary rules in place, and TikTok and the sale of items were not prioritised.

Link: https://mp.weixin.qq.com/s/QqbEyfeKJ-v34HPMrxeZow

Will Farfetch Take the Lead in Online Luxury E-Commerce?

In 2020, Alibaba, Richemont, and Artemis invested $1.15 billion in Farfetch, a luxury retail site, and developed a marketing plan geared to the Chinese market. It will formally launch its flagship store on Tmall in March 2021, offering over 3,000 small and independent brands.

Now, as new COVID-19 outbreaks in China affect offline business once more, the industry behemoth discovers another massive growth potential. Here are a few reasons why Farfetch could become the top in luxury e-commerce.

Great performance on digital sales

In China, digital sales of personal luxury goods outpaced physical sales across all categories, increasing by almost 56%t. And this rapid digitalization has worked in Farfetch’s favour. In 2021, Farfetch achieved its first full year of profitability with revenue jumping 35% to $2.3billion, supported by over 3.6 million customers.

Forging strong ties with China’s VIPs

After acquiring New Guards Group in 2019, Farfetch eventually opened Tmall Luxury Pavilion stores for Off-White, Ambush, and Palm Angels in early 2022. In addition, the corporation has made a concentrated effort to build Chinese brands such as Shang Xia, Uma Wang, Canotwait_, and Team Wang.

Furthermore, the luxury platform is dedicated to a high level of localization, from employing social networks such as WeChat, Weibo, Douyin, and Xiaohongshu — its major traffic and conversion touchpoints — to developing customer interactions. Offering luxury events such as dinners, master workshops, and art exhibitions to “Private Clients” is a key element of Farfetch’s China business. Farfetch China is now the most localised Western luxury portal operating in China.

Investing in the future

It announced the acquisition of resale platform LUXCLUSIF in December 2021, with the goal of dramatically increasing its resale capabilities through features such as automated pricing and authentication.

Sustainable goods are also on the rise, rising three times faster than conventional commodities. That’s why, in October 2021, the British-Portuguese retailer created There Was One, a sustainable brand described as upgraded closet basics that transcend the hype.

Finally, Farfetch is also leaping onto the luxury beauty bandwagon, estimated to be the second-largest category within the personal luxury market after leather goods. In January 2022, it announced the acquisition of cult favourite luxury beauty destination Violet Grey — best known for vetting beauty products with its community of makeup artists, dermatologists, estheticians, and influencers

Standing out from the crowd

Despite mounting competition from international e-commerce platforms, Farfetch has maintained the strategy by focusing on both brand awareness and sales, boosted by its localization and diversification strategies.

Link: https://jingdaily.com/farfetch-luxury-ecommerce-alibaba-neiman-marcus/

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