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China Trend: Silver Generation

March 3, 2022

The results of China’s most recent census confirmed what many observers had predicted for a long time: the country’s population was expanding slower and getting senior than ever before.

The “silver generation” is China’s fastest-growing demographic, with senior people accounting for one-third of the country’s purchasing, a fact that merchants and retailers should be aware of. With growing spending power, more leisure time and longer life expectancy, Chinese seniors are becoming a consumer group to reckon with. Given their growing will to live their ‘golden years’ to the fullest and taking into consideration how nuanced this huge cohort is, brands can create and communicate their products and services properly.

China’s population of people over 60 years old surpassed 254 million in 2019, accounting for 18.1% of the total population. No other country in the world faces such a significant demographic change. According to the National Bureau of Statistics, China’s ageing population will reach 330 million by 2030, accounting for 25.5% of the overall population.

Globally silver generation is undergoing its own changes and is connected more than ever, particularly in China, where, according to Quest Mobile 2020, the number of internet active users aged 50 and up will surpass 100 million by May 2020.

Silver-Haired Consumers and Their Demography

The term “silver-haired group” refers to China’s senior population, which ranges in age from 60 to 69 years old. Thanks to improving living standards, healthcare and relatively early retirement age, China’s older generation in their 60s and 70s is generally healthy, self-sufficient and have a lot of spare time.

According to research, these so-called ‘’active seniors’ of which China has around 150 million are mostly found in first-tier cities. Shanghai has the greatest proportion of people over the age of 60 in its population (30%). In Beijing, Tianjin, Chongqing, and Guangzhou it stands at around 20%

When compared to peers who live in rural areas, those who live primarily in major urban centres have better salaries and spending power. Pensions are the primary source of income for the elderly in cities. Self-employment income is the primary source of income in rural areas. With their own savings and the support of their children, elders in China are enjoying considerable financial freedom for the first time in history.

Experts predict that the spending power of the silver group will reach CNY 20 trillion in 2030, from CNY 4 trillion in 2014.

The Role of E-Commerce and Internet Access

Seniors are becoming more willing to accept technology and the tools it provides. This explains why the number of senior users has increased from 54 million in 2018 to 100 million by 2020.

There are many more female users than male users among these elderly netizens (57.1% vs 42.9% ).

Prior to the epidemic, physical stores still played a significant role in the older consumer sector. However, since the onset of COVID-19, this pattern has shifted dramatically, with more older consumers joining online buying force.

They mostly utilise mobile devices to access the internet, more than 40% use Taobao and Alipay to make purchases. Apart from daily basics like food and health supplies, the silver-haired generation seeks goods and services ranging from apparel to home appliances, travel, insurance, and financial services. They spend 1,000 RMB every month on average.

They are not only emerging as a major consumer force, but also as new fashion and beauty influencers. A well-known example is Sang Xiuzhu, the 76 years old Chinese social media sensation with videos of glamour in the golden years.

She became a member of the Fashion Grandmas two years ago, whose one-minute clips and live streams showing them transforming Beijing’s streets into a catwalk watched by millions of people. They combine beauty with wise words on marriage, love, and life. All coming from a generation that is becoming increasingly important to China’s economy and online culture.

“Our young fans say they are not afraid of ageing after seeing grannies like us living fashionable and happy lives”.

Is There an Untapped Market Among Senior Generation for Brands?

Without a question, the COVID-19 epidemic has accelerated transformation that would have occurred anyway in the long run.

The Chinese senior population is increasing, which means that the silver economy’s potential are expanding as well. Brands should stop thinking of the elderly in China as grannies and grandpas with old-fashioned big-button phones. Start think of them as self-sufficient consumers with plenty of buying power who aren’t hesitant to embrace new technology.

This unexplored market presents a great chance for brands to establish a strong consumer base in China.

Many well-known brands have already begun to tap into this lucrative market. Xiaohongshu has developed a successful online lifestyle community for China’s youth and is now focused on the country’s elderly. Xiaohongshu’s application for Laohongshu (literally meaning Old Red Book) registration has finally been approved after months of waiting. The upgrade has attracted a lot of attention in the domestic media implying a cunning move toward the “silver-haired economy.

Alibaba, which started its “Taobao for Elders” program in early 2018, is another company targeting the generation’s tech spending potential. The senior-friendly version includes chat feature and a “pay for me” link that users may send to family and friends.

Conclusion

China’s baby boomers are not a direct substitute for the country’s millennial and generation Z consumers. Therefore initiatives to boost birth rates will be critical to fully exploiting the country’s domestic market.

However, a government must make the best use of all of its tools. China has an underdeveloped sector of its economy in its 200 million senior citizens waiting to be unleashed.

In the next few decades, China’s elderly population will exceed 500 million. They are the generation that is catching up on social media and becoming more visible, particularly on short-form video platforms.

Chinese elders are becoming a new market that enterprises. This is especially true as the population grows and more people enter the digital world.

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Cross Border E-Commerce in China

February 7, 2022

China’s cross-border e-commerce has drastically matured in recent years. Thanks to the steady increase in industry size, greater integration of supply chain processes, progressive transition to more refined operation, and continued penetration of innovation models, the industry has boomed significantly.

The import and export trade has existed since the dawn of time, yet despite the Covid-pandemic, the numbers are on the rise. The widespread adoption of online consumption patterns has fuelled the rapid growth of worldwide e-commerce. This has resulted in a steady increase in penetration and sales.

According to eMarketer, China’s cross-border e-commerce became a new economic accelerator in China, as well as a hot investment and financing area in the capital market, thanks to its solid advantages in high cost-to-performance and high efficiency.

Cross Border E-commerce: What Is It?

Any international sale of a product or service between two parties on an online marketplace platform is referred to as cross border e-commerce.

It can either be B2C (Business-to-consumer), B2B (Business-to-business), C2C (Customers-to-customer) or D2C (Direct-to-consumer)

Any seller can benefit from cross-border e-commerce if they want to expand their business, investigate new markets and purchasing patterns and/or export what they have to offer in order to reach a larger audience but it can be intimidating to start.

Cross Border E-commerce in China

In China, cross-border e-commerce is distinguished by the fact that overseas companies are permitted to offer some goods to Chinese consumers online, through platforms such as Alibaba’s Tmall Global and Kaola, at favorable tariff rates and without the need for a business license.

Moreover, the majority of cross-border trades in China are carried out by corporations from other Asian countries, led by Japan and Korea, and closely followed by the United States.

The Chinese Ministry of Finance has implemented few regulations for cross-border purchases since January 2019. The following are the most important for CBEC in China:

The maximum amount for a single transaction has increased from 2,000 RMB (291 USD) to 5,000 RMB (727 USD)
The average annual amount spent across borders climbed from 20,000 RMB (2,909 USD) to 26,000 RMB (3,782 USD) per person.
In China, 63 additional item categories have been added to the positive list for cross-border e-commerce purchases. Sparkling wine, beer, health care items, and workout equipment are among these categories.
The number of cities eligible for the CBEC tax-rebate increased from 15 to 37, including Beijing and Shanghai.
Because of the new regulation, it’s more difficult for Daigou to operate unlawfully. Daigous is a form of surrogate shopping in China as a means to receive cheaper or locally unavailable, often luxury goods, from duty-free shops and foreign countries.

The Retail Marketplaces of the CBEC

In China, there are various platforms for cross-border e-commerce. Tmall and JD.com are at the top of the list.

China’s consumers are more educated than they have ever been. As a result, they desire higher-quality goods and are willing to pay a higher price for them. They are educated and shop on the go using mobile devices. The majority of e-commerce shoppers are between the ages of 18 and 34.

In 2017, the average Chinese online shopper spent RMB12,198 (S$2,558) (iResearch Consulting Group).

Some of the key marketplaces you could consider for cross-border e-commerce are:

Tmall & Tmall Global (Alibaba)
Kaola (Alibaba)
RED (Xiaohongshu)
JD Worldwide
VipShop
Pinduoduo

Most major global brands have a presence on one or more of these platforms because they provide high market exposure and allow them to benefit from the platforms’ high quality and exposure.

What are the benefits of cross-border eCommerce?

The most significant advantage of cross-border eCommerce is that it allows you to extend your business globally and gain exposure to new markets and audiences. Because of that, it will also assist you in increasing the appeal of your business.

With a larger audience, your company’s number of customers and potential consumers will increase, potentially leading to an increase in demand and customer orders.

Products that are less popular in their home market have been discovered to be more popular beyond borders in some situations. As a result, cross-border e-cmmerce can help you sell slow-moving or outdated inventory.

However, there are a few things to consider before pursuing cross-border e-commerce for your business:

Figure out the suitable platform to sell your products
Know the latest trends and who your consumers are
Understand the rules and regulations
Read up on the geography of your audience
Learn what various partners can do for you

End word

In conclusion, enterprises should prepare themselves by having a thorough awareness of trends, customers, location, legislation, platforms, and the ecosystem. Thank to this, they can effectively access China’s lucrative cross-border e-commerce sector. So there is a lot of homework to do, but there are also a lot of resources.

If you require further support with setting up your account or assistance in learning more about cross-border e-commerce in China,, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

Read more such articles by clicking the links below:

What Are the Most Important E-commerce Festivals in China?
The Accelerating Growth of Niche Perfume Brands in China
A Quick Guide to Xiaohongshu (Little Red Book) Marketing
Establishing A Presence on Xiaohongshu, China’s Popular Fashion Platform

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How To Engage Audiences During Chinese New Year on WeChat?

January 28, 2022

On February 1, the Chinese New Year will be upon us, and it is historically a time of celebration, full of feasts, fashion, and, may we say, financial festivities.

With the New Year in mind, businesses are focusing their advertising strategy on the year’s most important holiday. The way companies approach the holiday season can teach marketers how to use consumer insights to build culturally relevant advertising.

Because China’s consumer market, which is predicted to rise to $8.4 trillion by 2022, is seen as a crucial development potential for luxury brands aiming to recover from a difficult year in 2020.

Moreover, simply put, the Chinese market and the festivals fascinate brands. However, understanding the cultural nuances around the occasion might make the difference between a successful campaign and one that fails.

Firstly, a campaign will take off when brands make the effort to discover what customers actually value and the cultural significance of the holiday they’re celebrating. Secondly, even if Chinese New Year isn’t on your marketing calendar, there’s a lot to learn from some of these brands that we at KRDS worked with, to create innovative WeChat CNY campaigns.

Lastly, types of activities and campaigns for Chinese New Year are unlimited. From static or GIF greeting cards to elaborated mini-site campaigns, you name it. Don’t forget the latest craze – branded WeChat red packets with lucky money.

What is a Hongbao, Red Packet?

This year, at KRDS / The WeChat Agency, we created our own WeChat Red Packet cover.

Hongbao Red Packet WeChat

Click here to discover how to create yours! Creating Your Own Red Packet Cover On WeChat—The Ultimate Guide

Chinese new year campaign for Montagut

To celebrate the Chinese New Year with Montagut fans and promote a new collection, we created a mini-site for customers to discover the perfect look for Chinese New Year celebrations.

The outfit suggestions were made based on the weather forecasts in their hometowns (geolocation) and the user’s personal preferences.

Montagut Campaign WeChat

Greetings Poster

Wechat holiday greetings for Procter & Gamble

CNY Poster WeChat

Greeting cards creation for BNP Paribas

BNP Paribas WeChat

Are you curious how other brands in China celebrate other festivals? Check out our previous post on China’s Christmas: How It Has Evolved Over the Years.

If you require further support with setting up your WeChat account or assistance with customizing your Chinese new year greetings/campaign, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

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WeChat (Weixin) Class PRO 2022: Top Highlights

January 18, 2022

WeChat which is known as Weixin (pronounced way-shin) in China is the country’s killer app, a highly addictive social networking tool that allows smartphone users to send messages and share news, photographs, videos, and web links, similar to WhatsApp in the United States or Line in Japan.

Every year, WeChat organizes the annual conference “Open Class Pro” aimed at WeChat creators to find out what that number means for small businesses and what other new plans the networking giant has in the works.

WeChat Open Class Pro Highlights

1. On January 4th, 2022, at the annual event promoting the app’s new functions and strategies, a group of middle-ranking Tencent executives dubbed “WeChat lecturers” worked together to persuade Chinese users, including content creators and merchants, that the app would continue to be an important tool for entertainment and business in China with its mini-programs and short videos.

2. One of the main takeaways from the event was that the number of mini-programs – primarily created by third parties – has been gradually increasing, with 450 million daily active users expected by 2021. WeChat users visited small programs 32% more frequently in 2021 than the previous year, according to the Shenzhen-based tech giant.

In 2021, according to Lake Zeng Ming, CEO of Tencent’s Weixin Open Platform, more than 700 million individuals used pandemic-related services such as Covid-19 testing and vaccination appointments via WeChat micro-apps.
Tencent also stated that over the next three years, it will pay 10 billion yuan (US$1.57 billion) in subsidies to small merchants to encourage them to modernize their digital infrastructure.

3. Tencent also held a special session at the event on Channels, the app’s own short video service that will launch in 2020 and compete with Douyin, which has over 600 million daily active users in China.

Tencent has taken a step-by-step strategy to promote Channels, giving video content a more prominent position on WeChat. Channels had amassed 200 million users as of June 2021, according to the most recent data from Tencent, but WeChat has not given updated user counts since.

4. Weixin’s annual conference in Guangzhou also highlighted advancements in the app’s payment and search functions, as well as the commercial version. But it was the app’s “channels” feature’s short videos and live streams that grabbed the Internet by storm.

Social Impact Methods in Empowering the Vulnerable

Weixin has included a new option for older users called Easy Mode, as well as an improvement to the Parental Control Mode for underage users, further boosting connections with age-specific updates.
Weixin launched a scheme for over 60,000 Shenzhen sanitation workers that allow them to eat for only 0.01 yuan a week at roughly 1,000 restaurants throughout the city. To assist gather funds, more than 20,000 eateries and their customers in China joined the philanthropic project.
In another case, Weixin developed the Star Knows campaign and used the Mini Program to enlist the public’s love and support in order to expand the number of books available to rural children.
Weixin also employed the Mini Program to assist Chinese users in becoming more environmentally conscious. Weixin launched the country’s first educational mini-program dedicated to the science of carbon emissions to raise public understanding of climate change.

The 2022 Open Class PRO conference went all out to achieve net-zero emissions, with speakers and guests wearing clothing made entirely of recycled plastic bottles. According to professional calculators, this event established a balance between emissions created and emissions removed from the environment

Weixin stated that it will continue to improve its products and provide support to developers, content creators, and partners in order for them to survive in the dynamic ecosystem and collaborate to provide more people-oriented innovative services.

How Did Small Businesses Benefit From Weixin Mini-Program?

Case study

Xiao Mian, a popular street meal from China’s southwest serves hot, tingly, and mouth-numbing dishes. Su Xuxiang, on the other hand, sees a lot of potential for delicacy across the country. Weixin’s noodle business has grown to 150 locations nationally in the last seven years, thanks in part to his mini-program feature.

Benefits

Yujian Xiaomian, co-founder of SU XUXIANG stated “Weixin was the first platform we used for orders and payments. We opted to employ the mini-program features two years ago. It not only improves our service, but it also allows us to better understand our clients. With the users’ permission, we can see what foods they prefer and where on the menu they spend the most time. It has also aided us in attracting six million people’’

Mini programs are less expensive and easier to develop than standalone apps, making them perfect for low-budget start-ups.

Tencent’s Weixin, or WeChat, claims that 450 million people used its mini-programs on a daily basis in 2021. These mini-programs are WeChat-based services provided by third parties.

According to Weixin, small and medium-sized firms created 90% of new mini-programs in the previous year.

Tencent’s XU YANGYANG Catering and Life Services Business Weixin Open Platform is a platform created by Weixin. “COVID-19 cases continued showing up all over the place in 2020, wreaking havoc on dine-in services. That’s why, in addition to catering, we encouraged contactless ordering in barbershops and laundry services. The number of mini-programs and daily active users had doubled a year later. Most crucially, the number of transactions increased by a factor of five. We believe we’ve improved the efficiency of enterprises and society, which will lead to a stronger economic recovery.”

Conclusion

If you’re targeting higher-end customers, WeChat Mini-programs will almost certainly remain an important element of your marketing ecosystem. This is because they make it easier to convert new users.
Users that try out services through the WeChat Mini program are considerably more likely to upgrade to a Native App.
They’re a powerful tool because of their capacity to transform WeChat content into e-commerce.

If you require further support with setting up your WeChat account, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

Sources:

https://news.cgtn.com/news/2022-01-07/VHJhbnNjcmlwdDYxODQ1/index.html

https://chozan.co/wechat-vs-weixin/

https://www.prnewswire.com/news-releases/weixins-open-ecosystem-reports-user-and-engagement-growth-301455662.html

https://en.wikipedia.org/wiki/Weixin

https://www.scmp.com/tech/big-tech/article/3162340/chinas-ubiquitous-wechat-doubles-down-mini-apps-short-videos-it-faces

https://walkthechat.com/wechat-mini-programs-simple-introduction/#:~:text=If%20you’re%20targeting%20higher,convert%20to%20a%20Native%20App.

https://recordtrend.com/industry-information/all-highlights-of-2021-wechat-open-class-pro/

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Creating Your Own Red Packet Cover On WeChat—The Ultimate Guide

January 13, 2022

It is a widespread custom for adults to gift red packets containing monetary gifts to children during Chinese New Year. However, in recent years, the habit of presenting friends and coworkers has transferred to China’s super-app, WeChat. As a result, the opportunity for brand visibility and interaction arose thanks to this behavioral change. Last week, we covered different ways in which brands can engage with their audiences during the Chinese New Year, today we will dig more into how to create your own red envelope on WeChat.

What is a WeChat Red Envelope?

Tencent’s WeChat red envelope (or WeChat red packet cover – 红包封面) is a WeChat-based feature that was developed in China. But the concept itself is not new. In fact, it’s based on the Chinese tradition of hongbao (red envelope, or red packet), in which money is presented as a gift to relatives and friends.

Tencent released the function in January 2014, and it has since grown in popularity, with Tencent reporting 2.3 billion transactions on the first day of 2016.

Users can give monetary presents to other users within a private conversation or group chat in the form of virtual ‘credits.‘ A user’s WeChat Pay account gets credited with funds that can be utilized to make purchases.

WeChat offers two sorts of ‘red envelopes’: pairwise red packets, which send money from a private chat between two users, and group red packets, which distribute money in a group chat. After posting the ‘grouped’ red envelope to a group chat, the app assigns the amount in each envelope to each receiver at random. Fights for the biggest win of an envelope is a common and fun sight at the annual dinners across China.

Why Do Businesses Require Red Packets?

Moreover, there are other motivations for mobile payment companies to compete during this period, aside from the red packets being a cornerstone of WeChat’s development history. Because the Lunar New Year is the most important Chinese celebration of the year, there are more transactions than at any other time of the year.

Thus a number of other brands, such as Gucci, Louis Vuitton, Versace, Burberry, and many more have incorporated the red envelope concept into their Chinese New Year’s marketing strategies. This year with more and more hype around red packets, payees are especially encouraged by brands to transfer ‘lucky money to a friend, thereby assisting the brand in expanding its brand awareness. Sometimes, like in the came of Gucci, users need to book their slot to receive the cover they can use via a mini-program to make it more exclusive.

On the other hand, consumers may also receive a red envelope with a surprise discount after purchasing something in-store using WeChat Pay. These companies are often FMCG brands because a discount signals value and are generally not an incentive that luxury brands want to be associated with.

Step by Step Guide on Customisation Process of The Red Envelope

Step 1: Registered account and Required materials

Chinese mainland WeChat official account is open to everyone for registration: http://cover.weixin.qq.com

Red Packet Cover On WeChat

Step 2: Submission for review

Check the official WeChat page for design requirements and specifics.

Format: PNG / JPG / jpeg
Width and height: 957 * 1278 pixels
Size: ≤ 500kb

Red Packet Cover On WeChat

After you’ve finished customizing the red envelope, send it to the WeChat team for review.

Audit Cycle: The audit cycle is generally 1 working day.

Audit Result: The results will be published on your official WeChat account and sent over by mail after the audit is completed (WeChat envelopes). You can also check the status of the audit in my “seal” at the same time.

Red Packet Cover On WeChat

Step 3: Payment and refund

Select the number of users of the red envelope cover after approval and pay the payment item to create an order.

Price: The red envelope cover costs one yuan per piece.

Payment method: Payments can be made via Wechat, internet banking, or an offline transfer or remittance.

Refund: Only when the red envelope cover is removed from the shelf due to infringement, and there is a red envelope that is still within the distribution validity period and has not been successfully received by any user.

You will get a return for unused red envelopes at a rate of 1 yuan per piece.

Red Packet Cover On WeChat

Final Step

Step 4: Release cover

The cover can be distributed to the selected user after it has been properly purchased. It will expire after six months. Users will not be able to receive it after it has expired.

Distribution methods include:

QR code
Serial code
Link

According to the activity scenario, user group, collection rules, other factors, the customization party can choose the best distribution strategy.

Red Packet Cover On WeChat

Step 5: Trial cover

After each red envelope cover’s approval, ten trial covers for ten Wechat accounts can be obtained.

The cover is effective for two hours after scanning the code and can be used an unlimited number of times. The trial run expires after two hours have passed.

Red Packet Cover On WeChat

Step 6: User to use

Users can use the cover up to 3 months after they receive it as many times as they want. The received cover will automatically become invalid after the expiration date and cannot be used again.

The red envelope display, which has been sent, will not be affected.

Red Packet Cover On WeChat

Step 7: Data analysis

Following the distribution of the cover, you can view real-time distribution data. You can also check data from the previous day, and cumulative statistics on the site. It includes:

covers purchased,
covers received,
red envelopes issued,
red envelopes opened,
how many times users accessed the red envelope details page,
how many times the users view the cover story,
and the number of times the viewers skipped the cover story.

Red Packet Cover On WeChat

Conclusion

Way to carry on traditions change these days. The one thing that has remained constant is the desire to enjoy the company of loved ones during this special time of year.

Also, around this time of year, the red envelope is a great way to attract a wide spectrum of customers and build your customer base. As a result, any company seeking to build a business relationship with the Chinese market should consider taking advantage of these prospects.

If you require further assistance with customizing your red envelope, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

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NFT and Metaverse in China

January 4, 2022

What does the latest news mean for NFT and metaverse in China? China is one of the countries that has publicly maintained its anti-crypto position, ordering a statewide ban on all crypto-related transactions earlier this year and threatening defaulters with fines.

Not only that, but officials in the country have begun a crackdown on crypto mining activities, citing the detrimental environmental impact as one of the reasons why such activities will no longer be tolerated in the country.

However, despite a difficult year at the hands of China’s anti-crypto government and the Chinese central bank’s request that these be monitored, the country’s IT giants are optimistic about launching metaverse and non-fungible tokens (NFT) businesses.

Companies in the Metaverse Race

The majority of the businesses that registered for trademark registrations belong to the tech sector. This includes well-known brands such as Huawei and Hisense. The former filed a trademark application for “Meta OS”. At the same time, the latter filed many trademark applications in fields such as social services, advertising, and science.

Tencent, the gaming and Internet giant, has also gotten in on the act, filing nearly a hundred metaverse-related trademark applications, including “QQ Metaverse,” “QQ Music Metaverse,” and “Kings Metaverse.” Also, Epic Games, an American gaming company in which Tencent owns a 40% share, is moving forward with its own metaverse plans, maybe with Tencent’s help.

Alibaba has launched a new company called Yuanjing Shengsheng, with USD 1.58 million in funding. “Sources familiar with the topic” indicated that the new business will focus on metaverse, but did not go further.

Baidu’s Xirang

Baidu is not staying behind with its own metaverse launched last week and called Xirang, “Land of Hope” in Chinese, accessible through a virtual reality app. The biggest search engine in China cools down the expectations. Its representative said that “it could take up to six years for a full launch”.

Meanwhile, the e-commerce giant, JD.com has already issued its first NFTs and they’ve received a positive response. The fintech published five series of the JOY Dog character-themed tokens on its Lingxi platform with minimal fanfare.

RTFKT, a creator of digital goods such as virtual shoes and NFTs, was recently acquired by the international brand, Nike.

Also following White Castle’s entry into crypto, Applebee’s is introducing a new NFT every Monday this month.

In less than four months, a gaming brand has increased its total worth to $2 billion by joining the metaverse and NFT race. Also, NFTCN, a company that was founded in claims to have worked with over 1,000 Chinese artists and handled over 10 million RMB in NFT transactions. Similarly, many more tech giants and multinational companies are joining the Metaverse & NFT squad.

What Does This Mean for Chinese NFT and Metaverse Enthusiasts?

China has unquestionably established itself as a centre of technology innovation and progress. China’s inhabitants mostly lead the pack in terms of technological adoption.

This is especially true in the emerging NFT field. Google trends data shows that the country is one of the top three countries in the world for “NFT” searches.

According to Grayscale data, Chinese officials implying space surveillance simply means that residents of both countries may have limited access to the $1 trillion space potential. A total crackdown on the sector isn’t completely off the table.

We’ve seen brands experimenting with NFT-like offerings like e.g. Burberry sold NFT deers together with a limited edition scarf during the 11/11 shopping festival. It was also a part of Tmall’s Metaverse Art Exhibition. Drops of limited editions created by luxury brands very often spark enthusiasm from Chinese consumers especially when the concept combines an innovative approach. Despite that the usability of the tokens is quite low, the items sell out quickly and are in high demand.

Predictions

We believe that metaverse and NFT will only grow further in China despite the challenges and different factors and environments. Given the fact that all the Chinese Internet giants – BAT (Baidu, Alibaba, Tencent) are already launching their own metaverses and strong adoption of online payments (with virtual yuan rolling out by the banks). These are strong indicators of the potential of the online reality.

If you require further support with setting up your account please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong.

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WeChat Stats 2021

December 29, 2021

Weixin, which means micro message in Mandarin, was the name given to WeChat when it first debuted in 2011. It began as a simple communication programme, essentially a Chinese equivalent to WhatsApp, as its name suggests. The platform was developed and owned by Tencent, a Chinese internet giant and one of the world’s most valuable firms.

WeChat began as a simple messaging network, but it has evolved into much more. WeChat has basically become the home screen for many Chinese smartphone users thanks to its mini programmes platform, which allows almost any operation to be accomplished from within the app.

That being said, if you want to extend your business into the Chinese market, you’ll need a strategy that centres mostly around WeChat marketing, with an emphasis on WeChat users.

Here are some interesting WeChat statistics to help you see how powerful this platform really is. After all, there’s nothing like hard evidence, right?

WeChat: Active Users
WeChat has a monthly active user base of about 1.225 billion people.

Since its release in January 2011, it has grown by leaps and bounds. It evolved to become an important aspect of people’s lives, allowing them to communicate with friends and family via text messages, voice conversations, and video calls.

The aggregate monthly active users of Weixin and WeChat reached 1.225 billion in December 2020, up 5% year on year. Every day, 45 billion messages are sent and received on WeChat.

WeChat: User Demographics
Almost 40% of WeChat users are between the ages of 25 and 35 years old. Females account for 42.8% of users, while males account for 57.2%.

25 % of WeChat users in China are between the ages of 25 and 30, while another 13.8 % are between the ages of 31 and 35. Users under the age of 24 make up the greatest age demographic (33.5 %).

This is closely followed by users over the age of 41, who account for 19.1% of the total. If your company caters to these demographics, WeChat marketing could be very helpful to you.

WeChat Pay & Mini Programs Stats
WeChat Pay is used by 87% of Chinese consumers to make online payments and WeChat Mini Programs are used by almost 400 million people every day.

WeChat Pay is the second most popular online payment service in China, trailing only Alipay. Men and women make up an equal number of users, and the majority of its consumers (34%) are between the ages of 25 and 34, with the second-largest sector (28%) being between the ages of 35 and 44.

More than 400 million people utilise Mini Programs on a regular basis, resulting in total sales (GMV) more than double in 2020. In addition, the average number of Mini Programs utilised per user climbed by 25% year over year, and the average transaction value increased by 67%.

WeChat: Market Share
WeChat probably accounts for 10-15% of the social media market, with over 1 billion active users. WeChat, on the other hand, is arguably the most popular social site in China, accounting for 34% of the country’s total data traffic

No other app in the world has this level of dominance in such a big market. In comparison, Facebook accounts for only 14.1% of North American traffic. In China, WeChat accounts for more than double that.

WeChat: Revenue
WeChat made 108.2 billion RMB in sales in 2020. In 2019, they received 82.3 billion RMB, compared to 72.7 billion RMB in 2018.

The 2021 stats for WeChat’s revenue is yet to be released, but with their constant innovation, its revenue is expected to rise again. This year, the Chinese messenger’s mini-programs facilitated 1.6 trillion RMB in annual transactions. If the increase in revenue attributed to their mini-programs is any indicator, they’ve had a fantastic year.

The Future of WeChat
WeChat will certainly be successful in China and will continue to expand. WeChat’s penetration rate in Western countries is expected to rise as well outside of the country. COVID-19 has hindered WeChat’s growth because of travel restrictions that prevent Chinese tourists from visiting. However, once the pandemic has passed, WeChat, particularly WeChat Pay, is likely to make a more serious foray into foreign markets.

In fact, Europe has been identified as a crucial growth region. WeChat Pay had been popular among businesses that serve Chinese tourists prior to the outbreak. As a result, the number of merchants accepting WeChat Pay in Europe climbed by 3.5% in 2019. Around 11% of Chinese overseas tourism was spent in Europe.

Conclusion
The stats presented above is rather remarkable and demonstrate how strong WeChat has proven to be. So, if you haven’t already considered incorporating it into your entire marketing strategy, now is the time to do so.

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WeChat for Beauty/ Makeup Sector

November 9, 2021

Thanks to rising disposable incomes in urban areas, consumers in China are increasingly interested in health and beauty products such as cosmetics, perfumes, fashion accessories, and vitamin supplements.

The Chinese beauty, cosmetics, and grooming market is second only to the US in terms of size and maturity after several years of rapid expansion. Although some newbies to the industry have begun to climb the rankings, foreign brands continue to outperform domestic players.

Beauty Brands and WeChat

Brands in China are turning to the WeChat app to move beyond generic marketing and into a more personal level of connection, interaction, and targeting. Many people are discovering that using WeChat to take a customer-centric strategy produces greater results than merely posting and sharing blogs and other information.

Offering unique deals and exclusive content to subscribers, samples for testing, live event invites, games and competitions with rewards, and loyalty programmes are all examples of connecting with WeChat.

Why WeChat for Digital Marketing?

With so much growth expected in the cosmetics industry, it’s critical for companies to establish brand recognition in China. WeChat accounts for 47% of all mobile time spent and has 1.1 billion daily users, so it goes without saying that this app is critical for organisations looking to expand their digital presence in China.

WeChat has accumulated a vast amount of user data as a result of its many capabilities and large community. In marketing, this translates to extremely useful data for Paid Media initiatives. In fact, many Chinese businesses begin their digital presence on WeChat before developing their own website or app.

How can WeChat Benefit your Beauty & Service Business?

Subscribers can get discounts, rewards, games, entertainment, interactive experiences, and other perks.
To fine-tune and optimise targeting based on interest, divide the audience into categories.
Customers can be geo-targeted and informed about upcoming in-store deals and specials.
Provide customised beauty solutions for each customer.
Interact and communicate with people one-on-one rather than in groups.
Provide a personalised answer to questions and inquiries (as opposed to automated).
During occasions that involve gift-giving, promote and offer extraordinary one-of-a-kind gifts (such as Chinese New Year).

Conclusion

WeChat Ads are a hot trend in China for breaking through and winning over the audience. WeChat offers a wide range of utilities and targets, making it a wonderful chance for businesses and marketers looking to break into China.

While WeChat has a lot of potential for beauty firms, getting started can be difficult. Get in touch with our team if you need assistance with this. We use our experience and knowledge to help businesses establish a digital marketing plan that better targets and communicates with Chinese consumers. Contact us via phone or email for more information.

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Podcasts in China

November 2, 2021

Despite the fact that podcasting has been around for almost two decades in the United States, with more than 41% of adults aged 18 and above listening to a podcast at least once a month in 2021, it is still a relatively new industry in China. Listeners in China are more familiar with government-controlled broadcasting and state-owned public radio than with on-demand audio content from private creators.

Ear Economy in China

However, in recent years, the internet audio business, also known as the “ear economy,” has grown rapidly. Podcast listening has become a regular fad in many young Chinese consumers’ lives.

As a result of the expansion of commuter culture and easy access to different media content. Given the pervasiveness of smartphones in Chinese culture, all audio-visual content is now mobile-friendly. This is one of the factors that can be used to explain why podcasts are becoming more popular.

Chinese podcast listeners are estimated to reach 85.6 million by the end of 2021, second only to the United States. Nonetheless, given China’s massive population, this only accounts for 6.1% of the country’s population, indicating that there is plenty of room for the market to expand.

The Growing Popularity of Podcasts in China

China’s low adoption isn’t due to a lack of interest in digital audio. In this sense, Chinese consumers have a wide range of options, including ebooks, audio live streaming, social audio, and karaoke, all of which fight for ear time.

Regardless, China’s desire for podcasts—which is defined as any audio-first serialised episodes that can be accessed via digital streams or downloaded, as well as heard as podcasts via video platforms—is apparent.

Chinese tech companies, including some of the country’s most well-known digital giants, are jumping into the booming audio category, establishing dedicated “podcast” sections. Tencent Music and Entertainment, for example, has recently been promoting “long-form content.”

Chinese Podcast Listeners’ Demographics

The root of China’s developing podcast market is a growing demand for tailored, personalized, and individualised media tastes as a result of economic liberalisation and urbanisation. The thriving sector includes a wide range of themes, from travel to hobbies — and everything in between.

In terms of audience, over 68.2% of respondents live in top-tier or coastal cities such as Beijing, Shanghai, and Guangzhou, according to the PodFest China 2020 Chinese Podcasting Listeners and Consumption Survey. The majority of podcast listeners are under the age of 35, with more than 88.5% being under the age of 35.

Podcasting is also popular among the well-educated, with 86.4% of listeners having a bachelor’s degree or more, but only 28.6% of short-video users had attended college.

Conclusion

China’s podcast sector appears to have a bright future. In 2019, China’s podcast sector generated US$193 million in revenue, making it the world’s fastest-growing podcast market. The market is expected to grow at a 37.3% CAGR before 2024, reaching a total value of US$689 million in 2024, owing to increased listener numbers, making China the world’s second-largest market if the revenue target is met.

However, the market expansion will need to be closely monitored in the future. With only 6% of the population reporting that they listen to podcasts, there is a lot of room for expansion. As a result, starting a podcast for your company could be a wise decision for the future of your business.

Do you think starting a podcast is simple? Well, think again. You do need considerable support and guidance. Hit us up to get the ins and outs sorted professionally and launch a cohesive campaign.

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China’s Weekly Overview

October 26, 2021

Does Your Brand Need a Weibo Profile?

Many international companies begin their Chinese social media presence with a WeChat official account, but having a Weibo account can also help them gain awareness.

Weibo posts are visible to more users and non-followers than WeChat posts because of a distinct feed structure. However, as Weibo is one of China’s oldest social media sites, new platforms are appearing all the time. It’s best to assess target audience behaviour and then invest funds and effort into the most relevant combination of social media, depending on the target demographic.

Link: https://mp.weixin.qq.com/s/VGp5wjodQJ_tDkHhgelQFQ

Bilibili Marketing Guide: E-commerce, KOL Promotion & Ads

Bilibili, a famous youth-oriented video streaming and sharing network, is thought to be the most similar to Youtube. However, Bilibili’s distinguishing characteristics and distinct community culture set it apart from its western equivalents.

The bullet comments mechanism, which displays all incoming comments on the screen, is one of Bilbili’s most noticeable features. Chinese viewers prefer watching films with live comments because it gives them a greater sense of belonging and sharing. This sense of belonging contributes to the platform’s growth: Bilibili is used by one out of every two young people in China. Young individuals under the age of 35 make up 86% of the 202 million Monthly Active Users on the network.

Engagement rates also benefit from this feeling of community: users spend more than 80 min per day on the platform, generating 4.7 billion interactions per month. Bilbili now offers official KOL collaboration, e-commerce integration and ads solutions.

Link: https://mp.weixin.qq.com/s/QFI34y5qjRJ7OiPK22rLgA

Brands invest in Metaverse

From Bloomberg, the scale of Metaverse will be 800 billion USD in 2023. In this double 11, there are not just real products, we also meet some new friends from Metaverse. Small holds an online exhibition called the Metaverse Art show, users can search in Tmall the keyword and then enter in the Show.

For example, Burberry launched a digital elfin, which is unique and in limited edition, you can buy this and get a limited scarf. Tmall also collaborated with the other 9 brands and released Musical Instruments. One brand created just one instrument and the users can buy it.

All these NFT products were made by the Ant Chain, the Alibaba blockchain supplier. They design, produce digital products for the brands, and also provide the cochain and distribution.

Link: https://mp.weixin.qq.com/s/JMCsZPs61DmGYA6gD3pP-g

Kuaishou brand advertising multi-form help live marketing

Eye-show: Excellent exposure drainage — Open screen Eyemax straight to the broadcast room. Eye-show is mainly suitable for strong brand promotion, new product launch and other scenarios. In the past, high-quality entry data was favoured by advertisers.
Feeds – show: Video streaming native scene – a single column of information flow straight to the broadcast room. The product form can meet the marketing demands of the brand-customer information flow directly to the live broadcast room. At the same time, based on the basic ability of the brand information flow, the material can be saved to the customer’s personal home page for a rich promotion, laying a foundation for the subsequent content marketing.
Simple broadcast room: Fully immersive live streaming experience –A single column of information flows straight to the studio and then escalates. Brand information flow new live fully immersive style — advertising style simple studio and through the show live broadcast real-time images in a single stream, achieve the purpose of life for heating, the real-time image lead to the recommended flow, further shorten the user to watch live path, native display optimization experience, and expand the clickable region into the air.

Link: https://wemp.app/posts/b7ea071a-ed55-457e-96fe-f9aa69b7d1a0

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