advertising in china Archives

China Weekly News Roundup

May 24, 2022

Elon Musk Praises the WeChat Model As He Discusses Plans for Twitter

Elon Musk praised WeChat as “really an excellent app” and labelled it “a good model”

“We don’t have anything like that,” Musk said, as he complimented the Tencent super app’s offering of services like Twitter, PayPal and more “all rolled into one.”

“Such an app would be really useful” in markets outside of China, speculating that it could be created by converting Twitter to something all-encompassing or starting a new app from scratch.

Musk’s comments quickly went viral in China, with the hashtag “Musk praises WeChat” amassing more than three million views within a few hours on the microblogging platform Weibo.

Link: https://technode.com/2022/05/19/elon-musk-praises-wechat-model-as-he-discusses-plans-for-twitter/

Tencent’s Total Revenue Stays Flat, Profit Drops in Q1 Amid Regulatory and COVID Headwinds

Tencent fell short of market forecasts after posting almost flat revenue growth in the first quarter of this year ($21.2 billion in revenue versus $21.1 billion in the same period last year).

The company’s earnings for the period were RMB 26.3 billion, a 24% reduction year on year, while net margins fell to 19% from 26% the previous year.

Tencent’s worst result since its IPO in 2014 is primarily due to clients’ reduced ad spending and more competition from competitors like TikTok owner ByteDance. Despite the state signalling a softening of pressure on digital giants, the impact of regulatory crackdowns will remain since it will “take time for specific regulators to convert directly into meaningful action.”

Link: https://technode.com/2022/05/19/tencents-total-revenue-stays-flat-profit-drops-in-q1-amid-regulatory-and-covid-headwinds/

TikTok Parent Aims to Double Ecommerce Volume on China App to $240 Billion

This year, ByteDance hopes to more than double the amount of shopping done on Douyin in China to about $240 billion. ByteDance is now planning a global e-commerce development.

TikTok launched an e-commerce function, TikTok Shop, in the United Kingdom and Indonesia last year, allowing users to complete transactions within the app.

It launched the feature in Thailand, Vietnam, Malaysia, and the Philippines last month.

If TikTok’s 1 billion active monthly users embrace the buying option, ByteDance will be a serious competitor to Amazon.

Link: https://www.theinformation.com/articles/tiktok-parent-aims-to-double-e-commerce-volume-on-china-app-to-240-billion

JD Rolls Out Online-to-Offline Department Store Business with Plans for Physical Outlets

JD has introduced a new department store channel by combining numerous existing businesses from its fashion and lifestyle areas, such as apparel, cosmetics, and housewares.

In addition to online platforms, the company intends to expand the service’s offline presence by opening themed brick-and-mortar storefronts in major cities. The first will open before June 18 in Beijing, Chengdu, and Xi’an.

Link: https://technode.com/2022/05/10/jd-rolls-out-online-to-offline-department-store-business-with-plans-for-physical-outlets/

Zhihu 知乎: The Q&A platform for B2B marketing

Zhihu 知乎, which was created in 2011, is a Chinese social platform that has been compared to the western question-and-answer website ‘Quora.’ With more than 100 Million Monthly Active Users in the fourth quarter of 2021, the 36.4% year-over-year rise attests to the community’s ongoing development and potential.

Unlike Baidu Zhidao 百度知道, where the sort of content and responses are given are shorter in length, Zhihu 知乎 provides high-quality content that prioritises quality over quantity.

Even though the platform has a large user base, a larger portion of the audience exhibits unique characteristics. The majority of users are highly educated; they spend about 40 minutes each day reading the stuff submitted, and 60% are between the ages of 25 and 35.

How can you improve your visibility on Baidu?

Since Zhihu has a strong domain authority on this search engine, sharing content on Zhihu boosts your chances of appearing on Baidu SERP.

You can link your business social profiles as well as your corporate website on your Zhihu page, guiding viewers to your key communication channels.

Other features have been added to the platform throughout time. Zhihu Column 知乎专栏, for example, allows you to produce an essay on a given topic without having to attach it to a specific query. Zhihu Roundtable 知乎圆桌 allows specialists to deliver in-depth insights about a certain field of expertise, whilst Zhihu 知乎 Live allows people to interact with the company in real time.

Link: https://mp.weixin.qq.com/s/1uguDRjXl01yj0f4W5BkQQ

Balenciaga’s WeChat Campaign for China’s 520 Day

Balenciaga produced a campaign that includes a number of social activities and limited editions, all of which were available on their official website and in their physical locations. The “5:20 Video Game Hall,” a virtual arcade with pixel art and realistic audio that is now live on the company’s WeChat channel until May 20, stood out. Along with this, 520-exclusive profile images and WeChat gags were made available for free download.

The mini-games throughout the hall struck a chord with Chinese Millennials who grew up with arcade classics like Galaxian and Super Mario, and many WeChat users have already utilised the memes and profile images. Such assets serve as a virtual identity stamp, assisting the company in consolidating its digital significance and expanding its online communities.

Link: https://jingdaily.com/520-2022-balenciaga-louis-vuitton-prada/ https://www.163.com/dy/article/H7MFPPE20552U2HZ.html?f=post2020_dy_recommends

Wufangzhai Created the Cone Universe

Wufang Pictures has reopened and has officially released “The Next Stop of the Metaverse.” Not only did the brain hole fly out of the Metaverse in this blockbuster, but the copywriting made people crave it.

The short film concludes with a gloomy night, the Metaverse city with many high-rise structures, but no sign of human people. However, no matter how many worlds exist, there is no alternative to the preciousness of human people, which tickles the emotional link deep within every individual and tempts them to try that magical zongzi.

Link: https://socialbeta.com/c/11455

The WeChat Service Account Has Added a Function–No Notification

The “no notification” capability was incorporated in the most recent WeChat upgrade. To see the message non-disturbing switch, click three points in the upper right corner of the home page of each service number, and then choose “Settings” in the pop-up menu. When there is a new message in the service number after opening the message without interruption, the unread number is not displayed but is simply represented by a small red dot.

This might be bad news for the service account: because it includes a reminder function, it can remind users to read the articles on time, so increasing the amount of reading.

But it’s also good news to a certain extent: according to our experience, after each article is pushed, the account will lose some users. Maybe when the user is not disturbed by the reminder information, the user will not unfollow the account.

Link: https://mp.weixin.qq.com/s/zQtJ5RU7edeAvzFd22l2-A

You may also like

What’s New in China This Week?

May 17, 2022

Private Traffic = Fake Friends Shilling Lipstick: Welcome to WeChat’s Hottest Sales Trend

Thousands of Chinese firms are utilising WeChat to profit from a marketing trend that has swept the country’s e-commerce industry: private traffic.

Traditional open eCommerce platforms such as Taobao and Tmall are considered impersonal and uninteresting, preventing firms from making genuine connections with customers. Brands employ private traffic to convert casual shoppers into loyal customers by connecting with them in the same way that they would text family and friends.

The intimacy, though, is a sham — enabled by a suite of technologies that allow businesses to collect data on consumers, automate interactions with them, and, in some circumstances, create entirely synthetic influencers.

This year, private traffic sales are expected to exceed 3 trillion ($454 billion).

Link: https://restofworld.org/2022/china-wechat-private-traffic/

Luxury Brands Navigate Shanghai’s Lockdown to Keep VIPs Pampered

Banks and high-end hotels have joined luxury businesses in sending out treats for the wealthy, a privilege that has not gone ignored on social media. In addition to presents, several brands have organised online classes. La Mer has taught DIY facial massages, while Dior has offered seven-day tickets to a premium yoga studio’s virtual sessions. Prada has held a virtual cultural club in which writers, filmmakers, and musicians were invited to recommend books, movies, and recordings.

Since Shanghai accounts for up to 12% of China’s offline luxury shopping, store closures have required a shift to virtually, but still personally, servicing VIPs to ensure transactions are made after the lockdown.

Link:

https://www.reuters.com/business/retail-consumer/luxury-brands-navigate-shanghais-lockdown-keep-vips-pampered-2022-05-10/

How Do Beauty Brands Hop on China’s Metaverse Bandwagon?

China boasts the world’s second-largest beauty sector and a growing digital native consumer base. The rise of new technologies, such as the metaverse and NFTs, is opening up new possibilities, and luxury companies appear to be eager to take advantage of these new tools in order to communicate with young, tech-savvy Chinese consumers.

Laneige’s campaign reached the metaverse in December 2021, when they expressly invited CHUAN (Chuan CHUAN), a popular virtual idol, to serve as Laneige’s Trend Experience Officer, claiming to have broken past the barrier of beauty.

Takeaway: There will be an increasing demand for expressive avatars who are creative and free to wear make-up as if in real life.

Link: https://daoinsights.com/works/how-do-beauty-brands-hop-on-chinas-metaverse-bandwagon/

Digital Policy Experts Weigh In on China’s New Algorithm Regulation

Many of the most popular Chinese apps, including WeChat, Douyin, Weibo, and Taobao, altered their app settings to allow users to turn off algorithm-based recommendation services in mid-March, two weeks after China’s new algorithm law went into effect.

The regulation is also the world’s first attempt by a national regulator to control the possible abuse of algorithmic decisions. It asks companies to notify consumers about the usage of algorithms, provide an opt-out choice, and protect vulnerable groups, such as minors and seniors.

It may be too early to predict the regulation’s impact on Chinese IT companies and, more broadly, on the expansion of China’s internet sector, which has already been subjected to intense regulatory scrutiny in the previous year.

Chinese tech firms are facing challenges on multiple fronts, including increased domestic regulatory scrutiny, a slowing economy, concerns about the possible delisting of US-listed Chinese stocks from foreign markets, and the precarious position Chinese tech firms find themselves in amid Russia’s war in Ukraine. This regulation is likely to add to their list of concerns.

Link: https://technode.com/2022/04/05/digital-policy-experts-weigh-in-on-chinas-new-algorithm-regulation/?utm_campaign=%5BASIA%5D%20Newsletter&utm_medium=email&_hsmi=209626042&utm_content=209626042&utm_source=hs_email

Babycare Mother’s Day Campaign – Better Mother’s Day Gifts

The evolution of parenting concepts

As the leading brand in the maternal and child business, BabyCare has created an intriguing campaign titled “Better Mother’s Day Gifts” for Mother’s Day in 2022. BabyCare introduced a new concept in parenting by encouraging daddies to participate in parenting as well as giving mummies time to have fun.

On the eve of Mother’s Day, he uploaded a piece of rap created by himself on the Douyin platform, along with the video with the baby, as a “better Mother’s Day gift,” with the help of the new baby dad and rap star Bridge, who routinely brought babies out of the circle. The amount of views on the Douyin #bettermothersdaygift related topic page hit 10 million one day after the video was released, while the similar topic uploaded on Weibo got 300 million views.

According to Babycare, the label “raising infants is a mother’s business” is mirrored in the design of maternal and newborn items, as well as the intrinsic notion of parenting. Bags with babies, for example, are known as “Mummy bags,” and they are created to fit the body and aesthetics of women. Another example: the room where babies are changed and fed is known as a “mother-and-baby” room, and guys are normally not permitted to enter; so, changing diapers is unquestionably mum’s task. BabyCare feels that it is past time to break the mould and provide a new parenting solution for the next generation. As a result, they renamed the “mummy bag” “Diaper bag” and changed the style and size to masculine norms. In addition, Babycare has changed the moniker “mother-and-baby” room to “Nursery room,” and they plan to develop 100 mobile nursery rooms in eight provinces and cities, with dads permitted to enter.

BabyCare advocates for the de-gendering of baby and maternal items in order to create an egalitarian and welcoming parenting environment in which to raise children. Not only are they revamping things, but also a new generation of parenting ideas and practices.

Link: https://www.tellerreport.com/business/2022-05-07-%22mother-and-baby-room%22-becomes-%22nursery-room%22-babycare-promotes-%22de-gendering%22-of-mother-and-baby-products.SkG8AzLQIq.html

You may also like

China Learnings This Week

March 28, 2022

Short Video Platforms to Deal with Stricter Rating Measures

Problems with fan circles, such as irrational fan support among young fans, have become a cause of concern for Chinese politicians. Setting up a classification system for short video platforms is one of the options that has recently been offered.

‘First, we should tighten content management and allow the media to fulfil its social role,’ Chinese officials stated. Second, market restraints should be increased to aid the return to the rationality of the star-making frenzy.’

Netizens praised the move, pointing out that short videos have a significant influence on young people today, and that many videos on platforms like Kuaishou focus on attracting attention but neglect quality.

Last year, China saw certain limits come into effect when a notice was published in September 2021 forbidding TV and streaming platforms from running idol training shows – competitive reality shows that pit future stars against one other, with the victors going on to become China’s newest idols.

Link: https://mp.weixin.qq.com/s/8t7aaiOj0j1OhHSIwffFqA

How to Make Your Brand Go Viral: Branded Mini-Movies in China

Mini movies are short cinematic pieces created for a particular product or brand. The duration is generally shorter than 30 minutes. With the advancement of new media technologies, the branded mini-movie was formed, and it has become a popular marketing tool in recent years.

The purpose of a branded mini-movie is to disseminate information in order to demonstrate the brand’s values and messaging for commercial purposes. Touch and Go, a 90-second Cadillac commercial mini-movie starring Daniel Wu and released in 2010, is credited with being China’s first branded mini-movie.

Many brands have turned to mini-movie marketing as a regular activity in recent years, and some have even developed their own mini-movies. Alibaba Pictures, for example, was launched by Alibaba in 2014.

One of the most popular mini-movies was What is Peppa? (啥是佩奇?) video with several hundred million views across streaming media platforms and the Chinese hashtag for #WhatIsPeppa was viewed nearly 1.5 billion times on Sina Weibo soon after its release.

Link: https://daxueconsulting.com/branded-mini-movies-in-china/

Video Account Has Added Useful New Features

The service menu can be added to the WeChat Channels

Recently, brands that have received certification have been able to add a “service menu” capability to their home page, allowing for a straight jump to a mini-program.

At present, several WeChat Channels have added new service menus, and different types of accounts can customize the service setup. For example, the Channel 丁香医生 has two service sections and Huawei Customer Service features six service sections for contacting customer service, store inquiries. etc. It can more effectively reach users and improve their convenience.

Paid live-streaming rooms on WeChat Channels

Previously, Tencent NBA WeChat Channel hosted first paid live broadcast room, which carried NBA regular season content. The brand can create a paid live streaming room where users can choose what they want to view.

The relationship between WeCom and WeChat Channels getting closer

WeCom added an option to send, receive, and watch the WeChat Channels live broadcasts, as well as send and receive live broadcasts from customers and publish them to customers’ friends’ Moments. The current version of WeCom now supports the direct push of the channel’s business card, which helps to gain exposure of the brand and increase the number of WeChat Channels followers.

Link: https://mp.weixin.qq.com/s/VcPwp9lo_67PL1DG5Ck9kg

You may also like

WeChat Menu Basics: Introduction for Brands

March 16, 2022

What is WeChat Menu?

Aside from articles, one of the most important functions that companies can use on WeChat is the Menu – it’s always-on content that brands can use in a variety of ways.

The WeChat menu is where users will search for key information, such as your company’s contact details, brand story, key products, product line introduction, and more. They can simply access these menu tabs when they click on your WeChat official account.

To begin with, the WeChat menu is similar to the menu on a website, and you can replicate or mirror the menu from your official website by taking into account which information are the most important for your China’s audience. As you will see in this article, a well-crafted menu by directing the users to relevant tabs can increase sales and increase lead generation. Menu tabs can be updated on regular basis and some can lead to ongoing events or campaigns.

WeChat Menu Backend

Menu – More Important than One Thinks

According to Digital Luxury Group, of all the engagement activities carried out by followers, Menu Clicks ranked the highest of all types of engagements with official accounts at an astounding 73%. This might be a shock for many brands that mainly focus on producing amazing weekly content but often neglect regular updates of their WeChat menu. Users tend to engage with brands on WeChat when they are looking for specific types of information or services, which are generally accessed through the menu tabs therefore menu serves a different purpose than weekly articles.

WeChat Menu Stats

Why Use The WeChat Menu?

Best first impression: When a user clicks to follow your account, they receive an automatic welcome message. You can edit and craft this message by using WeChat links directing to menu tabs, e-shops, contact forms, etc. Make sure it’s concise and not too long.

Smoother user journey: The menu helps users quickly find all FAQ (frequently asked questions) information. From the menu, they should be able to access e-commerce (if applied), customer service, and brand introduction. This is something that WeChat users are used to and automatically check when following a new account.

Stay up-to-date: Look at the menu as your information hub for the Chinese market as it’s quite possible that your Chinese customers will check your WeChat menu more often than your website. Carefully focus on the most important tabs like brand introduction, current product catalog, contract details page e.g. one of the biggest mistakes we’ve seen it’s uploading contact details as image, therefore, emails or phone numbers can’t be copy-pasted causing inconvenience for potential customers.

Gain new followers: Although the menu is only visible to users who visited your WeChat account and won’t necessarily help with the initial account awareness when you manage to hook your visitors with the menu, you can lead them through a rich brand experience journey. That’s why investing more time and effort into creating menu content is crucial.

WeChat Menu Backend

WeChat Menu Montagut

Who Can Enable the Menu?

The menu function is accessible by two types of accounts:

– Verified subscription accounts,

– Service accounts.

The good news is that all overseas companies applying for a service account can enable a menu on their official WeChat account. The menu can be set up and edited using the desktop official account WeChat backend.

Menu Tabs

From the technical point of view, the menu can consist of a maximum of three columns and each can have a maximum of five sub-menus. Your menu can have a total of 15 tabs. In special cases, if you need more submenu tabs, there is also an option to create a menu tab showing a collection of related articles for more advanced WeChat users. You can contact us to find out more.

However, we don’t recommend setting up a maximum amount of many tabs as it might be slightly overwhelming for the users and make it hard to find the information that they are looking for. Remember that the core of the WeChat menu is its functionality. Hence, 8 or 9 tabs is ideal.

There are a few options to build your menu:

Sub-menu content

Send a Message
- Article,
- Text message,
- Image,
- Audio,
- Video.
Jump to Web page:
- WeChat article – best user experience as the page loads quickly, and beautiful posts can be created.
- External website – not recommended since if the website is hosted outside of China, it will be extremely slow. If it is in English, it will be discouraging to readers.
Jump to Mini Program

Jump to ‘WeChat Article’ is the most user-friendly solution.

WeChat Menu GB WeChat Menu PG

How to create a menu?

Step 1: On the top left of your public account page, you’ll notice a “menu” icon appear after you’ve created your service account or had your subscription account certified.

Step 2: Create three first-level menu items and second-level sub-menu items for each of them.

Each menu column name can consist of up to 4 Chinese characters or 8 letters

Each menu tab name can consist of up to 8 Chinese characters or 16 letters

Step 3: Now it’s time to start creating content for your menu. Click on each item to create content when users click on each tab. As mentioned above you can ideally link it to either one of the messages you just produced, an existing article, WeChat mini program or an external webpage (make sure the webpage displays well on mobile and fast enough for WeChat user standards).

Sometimes it can take up to 24 hours for a new menu to appear on your account. Be patient!

Conclusion

Here are the important things to know about the Menu:

WeChat menus are becoming one of the most clicked types of content in the WeChat official account ecosystem.
They are your brand information hubs for the Chinese market.
Brands can set at most 3 menu columns with each menu column set a max of 5 sub-menus. In total, a brand has 15 sub-menu tabs to leverage.
WeChat’s official account backend allows tracking follower behavior to understand the click rate of each menu. We will cover WeChat menu optimization and other advanced options in our next post.

Read more about in the second part of this article: WeChat Menu Basics: How to Optimize WeChat Menu?

Are you looking for setting up your very own WeChat Menu? Please get in touch with our team. We apply our knowledge and experience to assist businesses in forming meaningful connections and expanding their consumer base in China. For additional information, please contact us by phone – Shanghai or Hong Kong

You may also like

What Is Dewu?

March 9, 2022

You probably hear a lot about RED, one of the biggest UGC (User Generated Content) platforms in China. Well, there is another one that is super popular among Chinese millennials and Gen Z, that is DEWU (得物), previously known as POIZON or Du (毒).

Shanghai Shizhuang Information Technology Co., Ltd. launched Dewu, commonly known as Poizon, an online shopping app. It is China’s largest fashion brand exchange and trading platform, including features such as evaluating the validity of fashion labels and trend sharing. Product listings, trade mechanisms, and unified delivery are all subject to strict authenticity checks.

Poizon Dewu

Dewu’s USP

The “identify first, ship later” shopping approach is Dewu’s unique selling point. Trendy shoes, fashion, watches, accessories, gaming, digital and home appliances, beauty, vehicles, and more are among the product categories. At the same time, by consistently accumulating fashion content, Dewu is becoming a trend indicator and voice for young users as a trendy lifestyle network for young people.

People can also share their impressions and discuss their purchases with other users. For example, the app boasts a thriving community of sneakerheads who discuss the latest releases on the platform. As a result, the most trending topics of discussion revolve around sneakers, fashion brands, celebrities, street culture, cars, watches, and fashion art, all of which are popular among young people.

Poizon Dewu

Growth of Dewu

Dewu App has become synonymous with “quality e-commerce”, leading the new demand for quality consumption

The Dewu platform’s total revenue in 2019 was 7 billion yuan, with sneakers accounting for the majority of that. The domestic second-hand shoe market was nearly monopolized by this app. In the same year, the app had accumulated 47 million product identifications.

In 2020, the number of identifications will have expanded dramatically, surpassing 60 million, with roughly 40 million active monthly.

According to Fan Ruan, Dewu’s MAU (Monthly Active User) hit 81 million in May 2021, representing an increase of 8% month over month.

Key User of Dewu

The structure and demographics of Dewu’s DAUs (Daily Active Users) is very interesting as the ratio of male to female users on Dewu is 52:48. This is in stark contrast to RED, which has a predominantly female user base.

Dewu has a sizable percentage of young customers. The post-90s generation accounts for more than 75% of the total. These young people are the driving force behind online consumption and the architects of the new online economy’s future development. They consume with strong personal qualities. They are not only open to trying new products, but they are also more willing to share their consumer experiences with others and strive for a positive consumer experience.

When it comes to China, 61% of Gen Z is looking for brands that will set them apart. As a result, Dewu is a platform that assists Gen Z in meeting its needs.

Why do more and more brands choose Dewu(得物）？

Dewu’s app store ranking has been in the top ten for quite some time. Dewu has now become a “platform level” product, based on the IOS store rankings and the average daily downloads of more than 100000 users. Because of that, Dewu is attracting an increasing number of companies and service providers.

At present, more than 5,000 brands have settled in, mostly fashion wear brands and high-end brands, such as sports brands Adidas, luxury brands such as Coach, Michael Kors, Armani, and so on.

The reason why high-end brands choose Dewu is mainly due to the following two points:

The user group and consumer demand are expanding.
The consumer demand of users grows as user groups expand: male users are interested in shoes, watches, accessories, and men’s apparel; female users look for more women’s clothing, beauty makeup, and skincare goods, among other things. There is space for brand development due to consumer demand.

At the same time, the “post-90s” account for more than 80% of property users, according to the most recent government statistics. Young people are the target audience for high-end brands.
The content community system is also good for the brand.
The platform will guide customers to consistently develop high-quality content in Dewu’s content community system. When producing news on Dewu, for example, the platform will provide “high-quality strategic advice” to help people write high-quality news.

Dewu’s current content community, like Xiaohongshu’s, is in UGC mode, with many KOL and MCN institutions settling in. According to official public data, Dewu collaborated with approximately 100 MCN institutions in the first half of 2021.

Incentive for brands

The platform offers a number of benefits that attract top businesses to collaborate with the platform. They are as follows:

Discounted pricing for businesses (Lower cost and faster shipment)
The user interface is simple (high-speed operation)
Service of operation (New product launches, operation guidance, marketing activities, community promotions)
Customer service from a single merchant (Efficient response, fast payment)

Poizon Dewu

Step-by-Step Process on Becoming a Seller on Dewu

The registration process for sellers is similar to that of other Chinese e-commerce platforms. There are various steps to it.

Step 1: Create an account and log in.

Register the personal user account for the platform
Create a password for your account
Go to the merchant’s registration page, select “I want to enter,” and read the instructions.

Step 2: Fill in the information

Complete the company and brand information, and then submit your qualifications.
Next, verify the accuracy of the information before submitting it for evaluation.

Step 3: Wait for the review

Within 7 working days, you will receive a response.
Check the status of the review, make any necessary changes, or move on to the next step.
Confirm the merchant’s agreement to participate.

Step 4: Make a deposit.

Go to merchant login backstage
Then make payment via online deposit or upload bank account details.

Conclusion

Dewu is a second-hand marketplace with strict anti-counterfeiting measures in place. Consumers are protected by these procedures, which provide them with psychological security by preventing them from spending money until the products have passed an authenticity check.

The platform is great for high-end, limited-edition items. Things such as co-branded items, luxury items, and collectors’ items are some examples.

The platform also provides room for budding Chinese brands, making it an excellent starting point for those wishing to establish a brand in China.

Are you looking for setting up an e-commerce business on Dewu? Please get in touch with our team. We apply our knowledge and experience to assist businesses in forming meaningful connections and expanding their consumer base in China. For additional information, please contact us by phone – Shanghai or Hong Kong

You may also like

The Week’s Update In China

February 23, 2022

Alibaba goes after JD’s direct retail model with new e-commerce app:

It is establishing a new online platform that will follow the direct sales strategy of rival JD’s. Maoxiang, the new platform’s name, will first focus on consumer electronics.

Why it matters:

Alibaba is trying out different models to boost business growth amid weakening consumer spending, intensifying competition, and tightening regulations.

Details:

Maoxiang will adopt a direct retail model. The online platform can sell branded merchandise directly to consumers, having more control over sourcing, quality, storage, delivery, and after-sales.

For starters, the platform will focus on selling consumer electronics products, big-ticket items that JD also focused on during its early days. SF Express and Danniao Logistics are possible couriers for the service to ensure next-day doorstep delivery.

Link: https://technode.com/2022/02/18/alibaba-goes-after-jds-direct-retail-model-with-new-e-commerce-app/

Chinese otome games mark Valentine’s Day with fresh female content

Chinese female-oriented online games released new content to celebrate Valentine’s Day and attract new players.

Why it matters:

Otome (Japanese for “maiden”) games are primarily role-playing games aimed at female gamers (RPG). These online games pander to the emotional demands of female gamers by giving a variety of love fantasies. For these game designers, Valentine’s Day has become the most popular annual event.

Details:

Eight out of the top 10 otome games listed on TapTap, a game review platform and player community, released special content for Valentine’s Day.

For example, I Should Be a Rich Lady, the most downloaded otome game in Apple’s Chinese app store, unveiled Valentine’s Day contest on Feb. 10. Players are asked to vote for their favourite romantic characters. The game maker, Tomato Games, produced customized stickers for the winning character based on the votes. The game’s app ranks fourth overall in Apple’s RPG category.

Mr Love: Queen’s Choice, produced by Papergames, also released an update, adding more holiday plots and scenes. Players have the chance to win cash and other game content rewards (in Chinese) during the time-limited update.

Link: https://technode.com/2022/02/14/chinese-otome-mobile-games-mark-valentines-day-with-fresh-female-content-mr-love/

How fashion can leverage blind box marketing in China

Blind boxes have grown into a massive industry that is expected to be worth 30 billion yuan ($4.6 billion) by 2024. Many Chinese consumers enjoy unexpected content, which fashion firms may use to create interesting narratives.

The problem is figuring out how to make blind box marketing work for fashion and luxury firms. Lanvin, which developed a blind box lottery on its Wechat mini programme for Chinese Valentine’s Day in August, is one luxury brand that has previously tried the waters.

Lanvin, a Chinese company controlled by Fosun International, set a low threshold for entrance into their Chinese Valentine’s Day lottery last August. To participate, participants simply had to pay 200 yuan. Team or group games might be played, garnering 50,000 players in a month and five-folding Lanvin’s Wechat views.

Link: https://www.voguebusiness.com/consumers/how-fashion-can-leverage-blind-box-marketing-in-china

Beauty in 2021: Trends, Observations, and KOL+KOC Marketing

Competition between domestic brands, both old and new, is increasing, as is competition between domestic brands and foreign brands. Limited collections and interesting brand ambassadors are used by brands to captivate consumers.

Men’s make-up, body care, and other beauty and skincare categories grew by triple digits, with male perfume consumption increasing threefold in four years.

Link: https://mp.weixin.qq.com/s/BXK4dLCsxNdAI9imxLj0LA

Why do more and more brands choose Dewu(得物）？

The ranking of Dewu in the IOS app store has been in the top 10 of the app store for a long time. Judging from the IOS store rankings and the average daily downloads of more than 100000 users, Dewu has now become a “platform level” product. More and more brands and service providers have begun to invest Dewu.

At present, more than 5000 brands have settled in, mostly fashion wear” brands and high-end brands, such as sports brands Adidas, luxury brands ascoach, Michael Kors, Armani, and so on.

The reason why high-end brands choose Dewu is mainly due to the following two points:

The user group and consumer demand are expanding.
The consumer demand of users grows as user groups expand: some guys are interested in shoes, watches, accessories, and men’s apparel; girls require women’s clothing, beauty makeup, and skincare goods, among other things. There is space for brand development due to consumer demand.

At the same time, the “post-90s” account for more than 80% of property users, according to the most recent government statistics. Young people are the target audience for high-end brands.
Second, the content community system is also good for the brand.
The platform will guide customers to consistently develop high-quality content in Dewu’s content community system. When producing news on Dewu, for example, the platform will provide “high-quality strategic advice” to help people write high-quality news.

Dewu’s current content community, like Xiaohongshu’s, is in UGC mode, with many KOL and MCN institutions settling in. According to official public data, Dewu collaborated with approximately 100 MCN institutions in the first half of 2021.

Link: https://mp.weixin.qq.com/s/0xP54EO37NE3K3kUPW7hEQ

You may also like

Advertising on RED/XiaoHongshu

February 21, 2022

Xiaohongshu, also simply called RED, is one of the fastest-growing smart social commerce apps on the market, with over 100 million monthly active users. RED provides multinational brands with enormous opportunities to maximize their potential and establish a strong presence in China. It’s for this reason that famous brands like Louis Vuitton and YSL are clamoring to advertise on the site. If you are not convinced yet check our previous post 5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account.

In the ever-changing digital landscape, it’s a must-have Chinese marketing channel for beauty, lifestyle, and fashion brands.

RED helps marketers to engage and sell to their target market by utilizing a filtering algorithm that tailors material to users’ likes, which is one of the most significant advantages.

The most effective strategy to reach users is to advertise in the app’s newsfeed. User-friendly and authentic material with clear reasons to interact is preferable. We recommend to use a mix of multimedia with enticing descriptions with hashtags to cover a variety of views depending on the objectives and industry subjects.

One of the key ways to gather popularity on RED is of course collaboration with KOLs and KOC which we will cover in our next posts.

Who are Chinese influencers: KOL and KOCs?

Today, we will focus on how you can advertise using RED’s native media buy system.

While advertising on the platform is certainly beneficial to your business, navigating XiaoHongshu’s merchant setup can be tricky. There’s a lot to consider, and there’s not a lot of help available. Here’s all you need to know about selling on XiaoHongshu without the hassle!

Step 1: Create an account on RED / XiaoHongshu

To begin, you must first create an account on XiaoHongshu’s enterprise system. If you’re an incorporated business with your own email account, this should be pretty simple.

Step 2: Provide information about your business

After you’ve created an account, you’ll need to fill out the following information:

Company information and qualification: like your contact information, location, the origin of your goods, trading model (cross-border or general commerce), and business type. Also, include a Chinese business license or letter verifying your right to sell in China and proof of incorporation.
Financial information: your bank details, account number, billing currency, and sort code
Brand information and qualification: adding your brand name, description, and photos, as well as whether you’re a single or a multi-brand company. Also, I Include trademark certificates, permission to resell other brands (if applicable), and authorization to sell under your own brand.

Step 3: Review of qualifications on RED

After you submit the above information, XiaoHongshu will review your application and determine whether you are eligible to sell on their site. If all of the information you supplied is correct, you can complete it as soon as one week after your submission.

Step 4: Fill out the contract

When RED approves your application, you’ll receive both a digital contract to sign through email and a physical contract to return by mail. Read these over with a lawyer and sign them as soon as possible if you wish to move further.

Step 5: Take up the XiaoHongshu training

The completion of XiaoHongshu’s online training program is the final stage in the application procedure.

This section contains all you need to know about selling on the platform, and you won’t be able to start your store until you finish it. Set aside some time to concentrate on this – it will benefit you greatly in the long run.

Time taken to register: The length of time it takes to register is mostly determined by how quickly you can complete all of the paperwork, complete your company introduction, submit photographs, and so on.

If you do everything correctly from the start, you can administer the application in one week.

Costs included: Deposits and operating fees are included in the cost of selling on the platform. Deposits vary depending on your company’s “characteristics,” your qualifications, and the type of store you intend to open.

The deposit is usually RMB 20,000 and is returned three months after the store is closed.

Conclusion

Xiaohongshu’s unique stance as a trustworthy, celebrity-approved distributor of international products is an ideal route for businesses. Especially for ones looking to leverage the social commerce trend as part of the e-commerce revolution for purchasing superior products.

However, marketing in China is never simple. There are language barriers to overcome, rules to follow, and high costs to consider. All of that makes starting all too risky.

That is why at KRDS, we commit to assisting businesses to achieve marketing success in China. 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

You may also like

5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account?

February 18, 2022

China is one of the world’s largest e-commerce markets, with a myriad of marketplaces to choose from. Taobao, Tmall, JD, and Pinduoduo have drawn millions of shoppers to become frequent buyers over the last decade.

Social media has substantially impacted the way Chinese consumers shop online, in tandem with a tremendous increase in mobile phone usage. Especially those born in the mid-to-late-nineties, Chinese Gen Z also called the post-90s generation, are pioneering new trends.

That’s where XiaoHongshu comes in: a well-known “lifestyle” UGC and review app that’s taken the e-commerce world by storm. You can find the introduction to RED we covered before here – A Quick Guide to Xiaohongshu (Little Red Book) Marketing.

XiaoHongshu, or RED, is a combination of beauty, lifestyle, and fashion app in one that allows users to share their personal style while also discovering new goods from around the world. It is the Chinese equivalent of Instagram on steroids, and it’s a great way to read product reviews, share daily outfits, get fashion advice, and find high-quality businesses and all of this with just one click to buy the products mentioned in the article. This is especially relevant for relatively unknown, small luxury brands since beauty enthusiasts in China love to search for new labels and one of the industries that enjoyed this trend are niche perfumes – The Accelerating Growth of Niche Perfume Brands in China.

Why Should International Brands Leverage the Platform?

XiaoHongshu provides a variety of free and paid ways for businesses to advertise their brand to their user base. Some of them include:

Reason 1: Brand accounts

On XiaoHongshu, brand accounts are one of the most effective ways to interact with the community. They can send ‘notes’ to fans, add photographs and videos, sell their own items, and answer fan reviews and comments.

A brand account on XiaoHongshu with the correct strategy and content in place might quickly build attention on the platform, especially if your notes are added to the ‘boards’ of popular influencers.

Reason 2: 100 Monthly Active Users

XiaoHongshu has over 100 million monthly active users with 70% female and almost 40% users being between 25 and 34 years old. If you are a beauty, fashion, or lifestyle brand targeting Chinese gen Z that’s the platform to be.

Content Promotion Model

Reason 3: ‘Key Opinion Leaders,’ or influencers

Xiaohongshu developed as a review platform and grassroots content is still dominating. Influencers and key opinion leaders (KOLs) are critical to establishing traction on XiaoHongshu and are perhaps the most powerful type of advertising available.

The XiaoHongshu ‘Influencer Platform,’ a database with roughly 6,000 influencers, is designed to match you with individuals who are most relevant to your speciality and budget.

Who are Chinese influencers: KOL and KOCs?

Reason 4: XiaoHongshu advertising

XiaoHongshu also offers traditional advertising in the form of ‘pop-up’ ads that display when the app is used and promotional messages that are organically incorporated inside the platform’s ‘explore’ feed, in addition to organic opportunities and influencer marketing.

Develop content for the most important Chinese e-commerce festivals to catch the attention of Chinese users. Check out how to advertise on the platform in our article – Advertising on RED.

Overseas Shopping

Reason 5: Crossborder e-commerce

Xiaohongshu offers cross-border e-commerce business for brands based outside of China and wishes to target and sell to the Chinese market. Because of its business model, RED takes care of the warehouse and logistics within China making it easier for foreign brands to operate.

Find out more about cross-border e-commerce in China.

How to Set Up an Account on RED/Xiaohongshu?

Setting up accounts on WeChat and XiaoHongshu is frequently done in conjunction and is substantially less expensive than selling on Tmall.

Step 1: On RED, there are over 20,000 brand community accounts. Nearly 10,000 third-party e-commerce merchants use the network, which offers over 100,000 distinct products. As a result, the most vital initial step is to create an account.

Step 2: After you’ve created an account on RED with a Chinese phone number (you can also create an account with an international phone number, but your app’s functionality would be limited), the next step is to see if you can use their in-app e-commerce option.

Requirements for setting up an account

Your company must have a business registration in China in order to use this function. One of RED’s biggest advantages as a social commerce platform is that it has its own store where users can make purchases directly from the app. Many brands benefit from this closed-circuit integration since it allows them to sell their products more easily.

The main documents required to open a XiaoHongshu account are:

Papers for registering a business
Incorporation certificate
Form for customs registration

You’ll also need to submit the following supporting papers.

Information about the company
Logistics commitment letter
Authorization letter for store operations
Brand information Application form
Authorization form Trademark authorization

Conclusion

Xiaohongshu is an amazing platform where lifestyle brands can advertise things such as fashion, cosmetics, nutrition meals, accessories, and brands that are popular with young female shoppers. Hence, If you want to reach Chinese young female consumers, XiaoHongshu should be a big component of your strategy.

More than just another e-commerce marketplace; it’s a lifestyle community where users and influencers share photos, videos, and information about things they’ve used.

That is why at KRDS, we are committed to assisting businesses to achieve marketing success in China. 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

You may also like