What is Chinese market upto

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

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

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

 

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

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

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

 

 Will Global Luxury Brands Forget About Bilibili?

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

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

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

 

How Luxury Fashion Brands Approach Douyin Marketing in China

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

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

  • VIP rooms,
  • Douyin Challenge,

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

 

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

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

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

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

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

 

ByteDance launches fast fashion womenswear platform “If Yooou”

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

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

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

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

 

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

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

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

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

Top Search Engines in China and How They Work

If you want to implement an effective marketing strategy in China, you must get acquainted with the largest search engines in the country. 

As of 2021, China had 1 billion internet users, making it the largest online market in the world. But because of the filters imposed by the Great Firewall of China, a number of well-known search engines, including Google, are not accessible in China.  

If Google is not working in China, then what are Chinese people using? Let’s examine the popular Chinese search engines and how they work.

Popular search engines in China

 

Baidu

The most popular search engine in China is Baidu, and it is comparable to Google in the West. It was among the first search engines to appear in China, and since then, its use has grown significantly.

It dominates the market for search engines in the PRC by more than 75% and even draws some users from abroad, like the United States and Japan.

Baidu only indexes websites using simplified Chinese characters. Therefore, if you don’t have a website in Mandarin, your website won’t appear. Additionally, it favors websites that are stored on Chinese servers.

An Internet Content Provider License is required in order to host a website in China. Let’s learn about the ICP in a later part of the blog. Keep reading!  

Also, if you want to know about it in detail, check this blog: Baidu SEO for beginners.

 

Sogou

Sogou, the second player in China, has been operating since 2004. They managed to gain 24.54% of the market in December 2020, outpacing all other Chinese search engines in terms of growth.

Sogou’s algorithm is unique. As a result, don’t anticipate Baidu SEO strategies to be effective on this search engine.  Sogou’s search algorithm highly values original content and site authority. The importance of backlinks as a ranking factor seems to lean more toward quantity than quality. 

Due to its more affordable pay-per-click campaigns, Sogou has proven to be very helpful for businesses that aim to market to consumers in lower socioeconomic areas.

With Tencent’s acquisition of Sogou, the Chinese search engine now has a special feature that no other search engine in the country can claim: the ability to search on the WeChat platform. The QQ browser, created by Tencent, also uses Sogou as its default search engine. 

 

Haosou

Haosuo, also known as Qihoo 360 Search and s.com, is ranked third in the domestic Chinese search engine market. The search engine focuses on many services including news, websites, videos, images, music, and many more, and it has a reputation for being safer than Baidu.

Most Chinese computers come with the Qihoo 360 browser preinstalled, making it China’s equivalent of Internet Explorer. Because there is less competition on 360 Search, paid advertisements frequently have a lower cost-per-click.

Haosou is a significant player in B2B marketing because many Chinese companies recommend using it due to its security features. Additionally, rankings seem to reflect this emphasis on cybersecurity, with sites with more authority and credibility appearing to be ranked higher.

 

Shenma

Shenma is the result of a joint venture between Alibaba and UC Web. One of the most widely used web browsers, UC, uses it as its default search engine. In the upcoming years, it is anticipated that Shenma’s user base will continue to expand.

The fact that Shenma is only compatible with mobile devices is a key characteristic of this Chinese search engine. This is a key factor because of how widely used mobile devices are in China. Shenma is actually widely used for apps, books, and shopping. Shenma is therefore essential if you work in one of these market segments.

Shenma’s link with Alibaba allows it to include direct links to product pages. It’s widely used for home goods, clothing, books, and apps. Products that are listed on Taobao or Tmall (Alibaba shopping properties) are given priority, which improves placement in search results.

 

Youdao

Chinese search engine Youdao was launched by NetEase in 2007. Websites, images, news, music, blogs, and Chinese to English entries can all be searched using Youdao. Youdao Hui Hui Assistant, a shopping assistant tool that enables users to compare products and prices online, was introduced to Youdao in 2012.

More than 20 languages can be translated from Mandarin by Youdao. It offers example sentences and word usage guidance and is the PRC’s largest translation tool and online dictionary.

Because it includes a free online dictionary, Youdao is very well-liked by Mandarin learners. The Youdao Chinese dictionary is useful because it is simple to use and includes examples of sentences and instructions on how to use words.

 

WeChat Search – Souyisou

Last but not least, WeChat’s own search engine is slowly but surely eating its way into the search engine market in China. Launched in 2017, it’s already indexing the majority of content shared by official accounts (as long as published in the text format – read more about do’s and don’ts to optmize your SEO performance in our quick Guide To WeChat Search)

At the moment, its market share is relatively low but with more than 500 million Daily Active Users and Tencent confirming earlier this year at WeChat (Weixin) Class PRO that Seach will be one of the priorities in 2022, we can only expect it will grow considerably in the near future. 

SEO in China

People in China will Baidu your brand rather than Google it. Therefore, understanding how Baidu SEO functions is crucial. The main distinctions between the SERPs of Baidu and Google are:

  • the interface is available only in Simplified Chinese. No other languages support.
  • Links clicked on the SERP open in a new window, keeping the Baidu window always open for users to come back to it.
  • Image-based related searches are present for almost every single search on the right side.
  • Oftentimes, it is tough to distinguish between organic and paid results
  • Google’s mobile search shares the same URL as its desktop version. Baidu uses m.baidu.com for its mobile search engine.
  • Google uses structured data from schema.org markup and crawled data for rich snippets, while Baidu provides its own platform (Baidu Open or Baidu Webmaster Tools) for submitting structured data.
  • If your site is not mobile-friendly, Baidu might transcode it to make it load faster for mobile devices.

Google vs Baidu’s algorithms

When it comes to algorithms, Google and Baidu’s algorithms are similar in theory, but in practice, Baidu still needs to update its game. Though they are almost similar, they have differences too. Some common differences between Google and Baidu algorithms are

  • The algorithm used by Baidu has a significant explicit bias in favor of everything Chinese.
  • In terms of Chinese natural language processing, Baidu has a significant edge over Google and typically returns more accurate results for Chinese queries than any other search engine.
  • Duplicate content is much less tolerated on Baidu. It may take a long time to regain lost rankings if a website receives a Baidu penalty for duplicate content. 
  • It’s better to avoid JavaScript and AJAX content if one wants to rank highly in Baidu because the search engine has trouble crawling it.
  • Baidu spider typically crawlers Chinese websites much more frequently than those by Google.
  • Backlinks from Chinese-based websites are worth much more to Baidu than those from foreign websites.
  • In terms of machine learning for image processing, Baidu still lags. Therefore, for an image to rank well in Baidu’s image results, the alt text and surrounding plain text content must be properly optimized.
  • Baidu prefers websites with frequently updated content. It affects particularly new websites.
  • Compared to Google, Baidu gives a domain age more importance. To rank highly for a new site is harder, but it gets much simpler over time.
  • Baidu uses meta keywords as a ranking signal.

 

What is ICP? Why do you need it?

The Chinese government maintains strict control over the internet. Consequently, obtaining an ICP (Internet Content Publishing License) in China might enhance Baidu’s SEO performance.

A legitimate Chinese hosting company can only host your website on their servers if they have an ICP license. The best way to stay in the competition and stand out is to have a website in China or at the very least use a test to see if your website is blocked due to the Great Firewall in China and an increasing number of blocked foreign websites.

Compared to websites without an ICP license, obtaining one means much faster loading times for internet users. Internet users in China are therefore more likely to discover websites with an ICP license and to visit those sites again. Possessing an ICP license enhances Baidu SEO results. The ICP license, however, is restricted to businesses with Chinese registrations. Even though Baidu will not block websites for not having an ICP license, having one is not absolutely necessary for Baidu SEO. Paid media on Baidu it’s another story.

Conclusion

Although Baidu is the most popular search engine in China, it does not have market dominance. Users can use a wide range of additional resources, as we have already discussed in this article.

It is essential to familiarize yourself with the different search engines before creating a strategy for the Chinese market in order to ascertain which search engines resonate with your audience and how to use them to gain the most exposure.

If you wish to know more about Chinese search engines and SEO strategies or other marketing techniques in China, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com.

China Marketing Strategy: One Size Doesn’t Fit All

China’s marketing strategy is a minefield. If you want to build a brand in the Chinese market, you need to know how to navigate it. 

Entering the Chinese market is not only intimidating for the newcomers but also for existing businesses. Rapidly changing tastes, the market’s vastness, and nuanced preferences of more than 1.4 billion consumers living in very differentiated geographic and socio-cultural environments can be daunting for well-established players as well.

This is especially true for FMCG that are hyper-sensitive to consumers’ evolving tastes. That’s why often there is no such thing as a one-size-fits-all marketing strategy in China. Actually having one monolith strategy for China can be more harmful than having no strategy at all. 

Brands must develop strategies for localized branding, communication, e-commerce, and traditional distribution in order to build a good business in China. These will necessitate a thorough awareness of consumer patterns and profiles, as well as familiarity with local marketing and operations. Otherwise, they will be unable to respond effectively to consumer desires and needs, increasing the danger of failing.

Why Is It Necessary to Localize?

The main point is that it’s easy for brands to assume that Chinese consumers are one homogeneous group of people with identical tastes and preferences. Also, most brands tend to focus on consumers based in China’s 1st tier cities like Shanghai or Beijing. 

The Chinese city tier system is an unofficial hierarchical classification of Chinese cities. Media often use it as a point of reference to illustrate their financial, commercial, and overall business attractiveness. Usually, there are 5 levels of so-called tiers with some outlets adding an additional classification for the most rapidly developing cities. These are called New Tier 1 cities with Chengdu, Chongqing, Hangzhou, Wuhan, Nanjing, and Tianjin among them. Only imagine that there are almost 150 cities in China that are bigger than Berlin (3.5 million). 

Every target audience has diverse needs and aspirations, and firms that don’t have a defined marketing plan will waste company resources chasing the incorrect demographics.

It’s a big misconception that consumers in those 2nd or 3rd-tier cities are the same as consumers in Shanghai or Beijing. A lot of reports on Chinese consumers often focus on the population samples from the biggest cities leaving the intricacies and local differences out of sight. People living in different Chinese provinces and locations will show different consumer behaviors and have varied income levels. Very often even the climate or weather patterns can play a big factor in their consumption habits.

KFC Pizza Hut McDonalds China

Examples of global fast-food chains adapting to local tastes: Mcdonalds’ pickle sandwich, KFC’s egg tarts, and durian pizza from Pizza Hut

Local Nuances

Just to give you an example, and of course, these are just exaggerations. E.g. Chengdu youth scene is famous for being among the most flourishing in China while people from Wuxi, an over 6 million people city near Shanghai, are renowned for their entrepreneurship spirit. Based on deeper research and local knowledge you can find a lot of nuances and specific interests that you can leverage in your brand communication, packaging, and pricing that will ultimately make a difference. 

So when you’re trying to figure out how to make your retail experience more Chinese-friendly, the first step is figuring out who exactly you’re trying to attract—and then how best to reach them. Some brands might find success by hiring local employees who speak the dialects of their target market(s) fluently. They can often offer their own personal recommendations; others might do better by partnering with influencers who already have strong followings among those groups of people. Surveys and local focus groups can also be of great help.

Competitors in the biggest Chinese cities are fierce and the market is well saturated with all kinds of goods readily available. Therefore brands now want to expand their reach and deepen their penetration of the Chinese market. Because of a lack of understanding and applying the same strategies that worked in the biggest Chinese coastal cities, foreign brands often fail and are reluctant to continue their expansion which doesn’t need to be the case. 

How to Localize – Things to Consider

Because of the local differences, you might rethink:

  • Brand message – is there some other unique selling point that could be more appealing to the local target audience?
  • Packaging – is the design and size suitable for local needs? Maybe the locals prefer smaller packages to have a try of the product?
  • Ingredients – can you add some local ingredients to make your product more appealing to the local palates?
  • Necessity – is your product adapted or even needed in the targeted location? Promoting stylish rain boots makes sense during the Shanghai rain season. However not so in Beijing where summers are usually hot and dry. 
  • Pricing – is the price too low or too high?
  • And more to consider. 

Strategy for China – Conclusions

Each country, market, demography, and way of life are distinct; it is the marketer’s responsibility to customize messaging and techniques to these diverse local trends. By recognizing these patterns and the economic, social, and technical influences that influence the Chinese customers, brands in China can better prepare for the future and succeed in the present. 

➡️Find out more about China’s core target consumer groups – Generation Z and Silver Generation.

If you wish to know more about marketing 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 at contact@thewechatagency.com.