Unusual Brand Collaborations In China

November 15, 2021

Whether your business is selling lipsticks, chicken wings, or museum tours, the topic of how to reach more new people – more customers – comes up in every marketing meeting, across every sector imaginable. So here’s a suggestion for you all – Why not tap into the audience of someone else? 

A collaboration with a competitor is obviously not going to work, but what about one with a brand that sells something completely different? 

To get noticed among China’s millennial consumers, businesses must take advantage of unusual collaborations. It may sound bizarre, but it has the potential to attract a new audience that was previously unaware of your existence. 

Here are a few examples of unusual brand collaborations in China

 

Perfect Diary – Cosmetics
Disney – Kids entertainment
Collaboration – Limited-edition line of amino acid-based facial cleaning products inspired

 

The C-beauty brand routinely leverages brand collaborations as part of its overall goal to appeal to China’s millennial and Gen Z audiences. In a recent collaboration with Disney, the company released a limited-edition line of amino acid-based facial cleansing products inspired by the Baymax character from the 2014 animated film “Big Hero 6”. Two of the makeup remover bottles are sealed with a Baymax head, while other goods include images of the character on the packaging, appealing to young buyers’ love of cuteness and blind-box style toys.

 

KFC – Fast food restaurant chain
Karl Lagerfeld’s – German fashion designer and photographer
Collaboration – Limited Edition Chicken Bags 

 

KFC China recently resorted to the luxury business to mark the company’s 80th anniversary. Karl Lagerfeld, the fashion mogul, was the chosen brand, and he created two limited-edition bags. The centre Karl Lagerfeld logo was replaced with Kentucky Fried Chicken, and Paris was replaced with Kentucky in the funny new rendition of the original Karl Lagerfeld design. The bags contain three red stripes, which are KFC’s signature colours.

Ikea – Furniture retail company
ROG – Gaming retail
Collaboration – Gaming Furniture and Accessories


Ikea presented an eagerly anticipated collaboration with the Asus Republic of Gamers (ROG) on a new collection of affordable gaming furniture and accessories, taking a “China-first” approach to product innovation. A sleek high-backed gaming chair, an adjustable table that can be used as a standing workstation, and a wall-mounted pegboard to keep gaming equipment organised are all part of the black-and-red collection.


Conclusion

Younger consumers, particularly Generation Z, are perceived as having a larger proclivity for purchasing from ‘collaboration’ collections than older consumers. According to Boston Consulting Group (BCG), Chinese Generation Z customers have the largest desire for cross-brand collaborations among this generation’s quest for newness from the brands they like.

These out-of-the-box collaborations demonstrate that the opportunities for co-branding in China are limitless. Why limit yourself to usual collaborations when you can have so much fun? Collaboration with other well-known brands across all industries may help businesses grow their audiences, increase sales, and establish a reputation as a creative and fun brand among Chinese customers.

While unique collaborations have a lot of promise for your company, getting started can be challenging. If you require further support, please contact our team. We apply our expertise and experience to assist firms in forming meaningful partnerships and developing a digital marketing strategy that better targets and connects with Chinese customers. For additional information, please contact us by phone or email.

 

 

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This Week’s China Learning

November 9, 2021

2021 Beauty Industry White Paper

Although this white paper focuses on China’s cosmetics industry, many of the conclusions are applicable to China’s other industries.

Main takeaways:

  • A content-focused strategy is becoming increasingly important, rather than a price-focused strategy.
  • Brand building has been a priority for both foreign and domestic brands. They are increasingly focusing on long-term brand equity/notoriety rather than short-term ROI.
  • In China, young internet customers remain the most significant market for most brands. Women under the age of 40 account for approximately 70% of the global cosmetics market, significantly outnumbering their demographic share.
  • As the appeal for transactional techniques fades and becomes increasingly unsustainable, younger consumers are more affected by brands and content that resonate on an emotional level and match with their value system. As a result, marketing is far smarter and more fascinating now than it was in the days when all you had to do was decrease the price.

Link: https://www.kantarworldpanel.com/cn-en/news/2021-Beauty-Industry-White-Paper?utm_source=news_chinaskinny_com&utm_medium=email&utm_content=The+Weekly+China+Skinny&utm_campaign=20211102_m165346214_20211102+-+1&utm_term=2021+Beauty+Industry+White+Paper

 

B2B Marketing in the Post-LinkedIn Reality

Maimai 脈脈 is a homegrown social-networking platform for professionals to create business connections, the Chinese equivalent of Linkedin. It now has more than 80 million high-value real name users with more than monthly active users of 30 million.

Through Maimai, marketers can convey their advertising message into different types of Ad formats including Splash Ad, Native Ad, and instant message, etc. Additionally, marketers could target the audiences in different positioning based on their geographic location, gender, career position (C Levels/ Directors / Managers grade), job industry (Business / Legal / Finance/ Design/ IT, etc), and even their specific company.

Link: https://www.xinergy.global/maimai-the-chinese-linkedin/

 

The older Chinese consumers turning silver into e-commerce gold

A few months ago, the Chinese government was encouraging the biggest Chinese apps to prepare elderly-friendly versions. More than 264 million people, or 18.7% of China’s population, are aged over 60 in a country that is ageing rapidly, according to census results published in May.

COVID-19 forced many Chinese 60+ online making for an expanding population of “silver-haired” internet users who have made the move to online shopping in China in the past year, nudged by the coronavirus pandemic, government policy and e-commerce giants. JD reports that retirees living in major cities, with money to spend and plenty of time, were some of the most prolific shoppers since the pandemic, with over half of the goods catering to the elderly bought by users themselves this year.

In the first three quarters of this year, purchases by the silver-haired demographic grew almost fivefold year on year, with users focusing on leisure purchases, such as gardening supplies and package tours. To really tap this market, online vendors need to simplify their designs or offer user-friendly guides for their apps or websites.

Link: https://www.scmp.com/news/china/article/3153456/older-chinese-consumers-turning-silver-e-commerce-gold

 

GUCCI– burst game

For its product burst, Gucci, a worldwide luxury brand, devised an innovative H5 game that allows users to engage, comprehend items, and expose brands by avoiding obstacles in the tunnel.

Burst’s shoes “gallop” in a 3D three-dimensional colour tunnel. At the 8m position, there are two operation guide arrows. Users can use the up and down arrows to directly drag bursts around the tunnel to escape impending obstacles by clicking and dragging it. There are timers and score reminders in the game. If you run into any barriers, the game will automatically finish and the game results page will appear.

 

Luxury brands are ditching KOLs for virtual influencers in China: how Alexander McQueen, Dior and Prada are turning to digital avatars and AI idols to woo millennials

Making their way from music to fashion, virtual idols are paving the way for mixed reality initiatives, increasingly appealing to younger, digitally native consumers.

As more consumers move online, they will increasingly demand compelling narratives like Maie’s from their virtual idols. It seems, every luxury consumer will be able to hatch their own virtual idols in the future.

Link: https://www.scmp.com/magazines/style/luxury/article/3153210/luxury-brands-are-ditching-kols-virtual-influencers-china

 

 

 

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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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The Idol Economy in China; Who are KOLs and KOCs?

October 25, 2021

Idolising stars and celebrity worship has become an increasingly important part of modern Chinese culture. Chinese Gen Z’s are continuously engaged with internet information as a result of growing up in a connected environment, and they are especially attentive to what their idols have to say.  

With the debut of innumerable TV series, brand endorsement deals, and the growing KOL market in China, these trends have naturally aided the rise of China’s idol economy. 

Who are KOL’s and KOC’s?

In a world dominated by social media and influencer marketing, key opinion leaders (KOLs) and key opinion consumers (KOCs) have become integral aspects of brands’ online marketing strategies to raise brand knowledge and recognition among their target audiences. Despite the fact that they both advertise products or services, they are two very different things.

A key opinion leader (KOL) is a well-known figure whose endorsement of a product is valued by a larger audience. Individuals who are trusted and respected for their status quo or expertise are known as KOLs. KOL’s include people such as actors, models, and celebrities, as well as people who have built a name for themselves on social media platforms. 

KOCs, on the other hand, are valued for their insight into products and services based on their personal experiences. They are people that do not conform to the status quo, making them relatable to the public. Although KOCs have a smaller following — only a few thousand — than KOLs, their fans are extremely loyal. 

Benefits of working with KOL’s and KOC’s

 

  • Working with idols is more profitable
    Young Chinese fans idolise their stars and are willing to go to great lengths to support their celebrity idols. According to a recent survey, roughly a third of “Gen Z” respondents said they’d be willing to buy products that their idols recommended or used, and a fifth said they’d be willing to watch their idol’s Livestream and purchase virtual gifts.

 

  • Chinese celebrities do not fear marketing
    Sponsorship arrangements are often avoided by Western celebrities because they believe that too much exposure could jeopardise their reputation. With Chinese idols, however, this is not the case. The local celebrities are easily involved in marketing and brand endorsement efforts to promote items via a variety of channels. This is due to censorship, which means that projects in China can be easily cancelled or repealed, thus idols must ensure that they have other sources of income.

 

  • The fan culture is a collaborative effort
    A form of collectivism popular in China suggests that fans affect one another during the purchasing process, and studies demonstrate that “the more collectivist a person’s orientation, the more vulnerable he or she will be to social influence in the purchase decision. As a result, if Western businesses can win over the heart of one hardcore idol lover, they may be able to win over the entire fan base.

Conclusion

Marketers and retailers benefit from the idol economy, but few multinational companies are yet to capitalise on Chinese celebrities’ fame. This is primarily due to Western corporations’ continued lack of understanding of the Chinese fan economy and the youthful, impulsive consumer base that supports these idols. 

The idol economy is expected to grow in the next few years, therefore international brands looking to stay ahead of the competition should seek closer links with the Chinese stars.

However, though the idol culture is prevalent in China, it is vital to exercise additional caution when selecting a reputable KOL, as there have been various KOL scandals in the past, and the Chinese government is attempting to simmer down the idol economy. As a result, seeking advice from a skilled partner is recommended.

Working as a partner, KRDS offers the expertise and abilities you need, including access to the relevant KOLs for your business and the know-how to quickly create Chinese social media KOL partnerships that meet your goals. We can also help B2B businesses with KOL collaborations by partnering with other renowned official accounts in the industry or niche experts. Please contact us to discuss further.

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