Exploring China’s Market: The Latest Updates

August 14, 2023

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

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

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

 

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

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

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

 

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

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

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

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Latest News on China’s Market

August 7, 2023

1. Estée Lauder taps Asia’s male beauty market with Manchester United partnership

  • Beauty and skincare giant Estée Lauder has inked an exclusive partnership deal with Manchester United in hopes of tapping the club’s fans in China and the Asia Pacific region.

  • In China alone, the men’s beauty market was projected to surpass $10 billion in 2022 and could reach $33.4 billion (240 billion RMB) by 2027.

  • Most male consumers may be relatively new to the skincare game, especially when it comes to premium products.

  • In the first half of 2023, the GMV of men’s makeup on Douyin surged by 364.6 percent year-on-year. With this market being especially open to beauty and grooming, we’d bet that a clever campaign could work wonders.

LINK: https://jingdaily.com/estee-lauder-manchester-united-collab-male-beauty/

 

2. Male beauty’s next growth engine: Douyin

  • In the first half of 2023, the gross merchandise value (GMV) of men’s makeup sold via Douyin surged 365 percent year on year – Tmall and Taobao combined achieved 6.7 percent growth in the same period.

  • Chinese male beauty brands are quickly expanding on the short video app. Domestic labels claimed seven spots on Douyin’s top 10 best-selling mens’ skin care list, whereas international brands took three places.

  • Male skincare buyers’ profiles: Last year, 70 percent of men’s beauty purchases were made by women, according to a 2022 report from Xiaohongshu. But male buyers have caught up, now accounting for half of male cosmetics purchasers on Douyin.

  • The average age of the male makeup user is between 18 and 30 with an average price of $9.7 (69.2 RMB), significantly lower than on other platforms like Tmall and JD.com.

  • Cooperating with KOLs has proven to be a quick and effective strategy for businesses that want to scale up brand awareness. These influencers are crucial for spreading knowledge about beauty routines.

LINK: https://jingdaily.com/male-beautys-next-growth-engine-douyin/

 

3. McKinsey: Chinese consumers, brands ‘cautiously optimistic’ on tourism and spending

  • Chinese consumers are looking for better deals and sales across platforms like Douyin and Pinduoduo, where products are often sold for “half or less” than on more established competitor shopping apps.

  • McKinsey found that while many remained loyal to their favorite brands, 47 percent of respondents reported switching retailers to obtain a “lower price/discount.”

  • Travel, restaurants and apparel were the top categories consumers were spending on, the survey revealed.

  • However, international travel in June was still 58 percent lower than pre-pandemic levels, though the number of outbound flights from China is “rising rapidly.”

LINK: https://jingdaily.com/mckinsey-report-cautiously-optimistic-tourism-spending/

 

4. China ecological transition: a green revolution led by consumers

  • Keeping balance between satisfying the demand of country’s market, while preserving sustainable standards is challenging

  • Chinese consumers are demonstrating a higher attention to environmental issues compared to the previous years, this trend being reflected in several factors, from carbon emissions to locally produced goods.

  • In this sense, the pandemic has represented a turning point for the development of this trend inside consumer’s mindset, many of which are now willing to pay more for environmentally friendly products.

  • Case study of KFC:  Thanks to “Exploring Carbon Reduction” and “The Journey to Carbon Neutrality” initiatives, introduced in their super App, KFC carried out a green rewards program that encourages consumers to not use disposable cutlery, favor in-store pickup, engage in waste sorting, etc.

LINK: https://mp.weixin.qq.com/s/HBf_m9WBZ2izfmQNFgOlvg

 

5. Pink burgers, platform Crocs and Malibu dream houses: Barbie’s global collab craze

  • Resale site StockX reported to Jing Daily it had seen more sales of Barbie products in July 2023 than any other month in the company’s history, double sales in July 2022.

  • Among so many names jumping onboard, from Vans, Kipling and Gap, to Pacsun and Nyx, one breaking through the Barbie collaboration noise online is Zara. The Spanish retailer launched a collection on July 21 (the movie release date) inspired by the fashion seen on screen, including a gingham dress, silk pajamas, and other clothing and accessories items

  • Though Zara, Vans, Nike’s Dunk Low sneaker, and Chanel’s themed efforts with the movie all made their way onto social media in China, the clothing and accessories collection from local fashion brand D’izzit is trending in the mainland.

  • Barbie mania is reaching all corners of commerce, from fashion all the way through to luxury hospitality. The W Hotel in Osaka, Japan, is one that’s proven a hit among netizens.

  • Thanks to Barbie nostalgia being at an all-time high, the IP’s pulling power feels unbeatable. Some consumers might be all pinked out, but this is definitely not the end of Barbiecore.

LINK: https://jingdaily.com/barbies-global-collab-craze/

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Staying Up-to-Date with China’s Market: Updates and News

July 25, 2023

  1. Ctrip unveils an AI model that provides suggestions for tourism

  • Ctrip introduced a vertical AI large model designed for the tourism industry. The AI-driven model, called Xiecheng Wendao, allows users to ask Ctrip travel-related questions. The model is in its early stages and still requires a long process of iteration.”
  • Why it matters: To meet their unique needs, many businesses are modifying current large general models with information specific to their respective industries. As an example, Ctrip claimed that its specialized model, which filters 20 billion high-quality unstructured streams of tourism data along with its own structured real-time data and search algorithms, is based on an undisclosed general model.
  • Details: Ctrip’s AI model will offer recommendations on destinations, hotels, and sightseeing, the firm said at the Monday launch event, and also can offer real-time search results for flights and hotels.
  • In a variation on the race to develop artificial intelligence chatbots similar to ChatGPT, Chinese businesses are increasingly turning to sector-specific models. It seems safer for domestic companies to make use of the quickly-evolving technology, particularly in a nation that recently took a significant step to regulate generative AI content.

Link: https://technode.com/2023/07/18/chinese-travel-booking-site-ctrip-unveils-ai-model-offering-tourism-tips/

 

 

  1. Foreign credit cards are now accepted by WeChat Pay in China.

  • Tencent said that it now allows foreign tourists to link their international credit cards to its payment service WeChat Pay.
  • With the rise of digital payments in China, foreign visitors have sometimes encountered difficulty in the country as many shops and restaurants only accept digital payments. 
  • Tencent has published bilingual Chinese and English guidelines on how to add a card within its super app WeChat, with overseas card holders able to “pay like a local” via payment codes or scanning merchants’ QR codes
  • However, WeChat added that a 3% transaction fee will be charged when a single transaction amounts to RMB 200 or over.

Link:  https://mp.weixin.qq.com/s/Rm7rQBotG77SQmM6MMv75A

 

 

  1. The hottest summer trend in China? How Xiaohongshu made ‘jorts’ a thing

  • On June 29, lifestyle sharing platform Xiaohongshu launched a campaign to promote the over-the-knee jean shorts. 
  • #Jorts, which has over 520 million views on TikTok, is part of a larger “new vintage” style taking over China and the rest of the world. 
  • Xiaohongshu has over 80 official accounts that cover a range of topics which not only spotlight the hottest Gen Z happenings, but they also educate consumers on niche and emerging movements. 
  • Given these functions, Xiaohongshu is more than just a social media platform. It’s an information hub that keeps brands up-to-date and connected with young consumers.

Link:  https://jingdaily.com/xiaohongshu-jorts-china-fashion-trends/

 

 

  1. AI’s assistance in fashion design: Text-to-Design, Tommy Hilfiger, and AI Fashion Week

In this year’s Metaverse Fashion Week held in March, the American clothing brand Tommy Hilfiger hosted an AI design contest. The goal was to create a digital fashion item in the classic Hilfiger style.

 

  • AI Fashion Week 
    Events such as Maison Meta’s AI Fashion Week in New York have also turned the spotlight on the synergistic relationship between AI and fashion
  • Text-to-Design transforms the fashion industry
    Stitch Fix uses AI recommendation algorithms and data science to personalize clothing items based on a user’s preferences. With generative AI, advanced AI programs that are able to generate sophisticated content such as images, there’s the possibility of taking things one step further, to the product design level.
  • Leaks and limitations
    Generative AI for fashion design is showing promise, but challenges persist. One of those risks is leaks. Images uploaded to AI image generators are typically also added to the platform’s database, making leaks possible.

“In the end, the level of creativity and quality of the output will be determined by the skill of the individual. Image generation tools are still just that: a tool.

 

Link: https://jingdaily.com/artificial-intelligence-fashion-design-assistant-tommy-hilfiger-midjourney/

 

 

  1. What Should The Luxury Industry Expect From Post-Pandemic Chinese Travelers?

  • Outbound travel is expected to increase in 2023, boosting luxury spending in Europe, the United States, and the rest of Asia, while the lifting of COVID restrictions in China is set to fuel Chinese consumer confidence and stimulate the local market rebound.
  • The return of Chinese outbound travelers is facing obstacles, including limited seat capacity on international airlines, higher ticket prices, visa application backlogs, and concerns about a volatile social environment abroad, affecting their confidence to travel.
  • Despite the potential increase in luxury consumption abroad, the domestic luxury market in China is not expected to decline in the short term. Luxury brands have invested in expanding their store networks and have taken measures to reduce pricing gaps, leading to significant growth in mainland China’s luxury market. 
  • In this context, the progress made by luxury brands over the last three years cannot be understated: In China, nearly 50% of all luxury consumers in 2021 were first-time buyers.
  • However, luxury brands need to be agile and adapt to changing consumer expectations and preferences both inside and outside China, focusing on higher spending potential of Chinese travelers and catering to their expectations in terms of luxury purchase experience and digital services.

Link: https://www.luxurysociety.com/en/articles/2023/07/what-should-luxury-expect-post-pandemic-chinese-travellers 

 

 

  1. What is the latest ‘KOP marketing’ craze?

  • The emergence of Key Opinion Professionals (KOP) in content marketing is a new trend, where professionals with deep expertise in specific fields share professional content to influence user decisions.
  • Main characteristics of a KOP:
    • Have a high degree of education, such as the Ph.D. Kikuchi Tian Department of Chemistry at Tsinghua University, known as “Picket”
    • Rich  experience, such as bloggers who rely on science popularize and dismantling rumors 
    • Deep-cultivated original content in professional vertical fields such as health, technology, engineering, and humanities
    • In addition, KOP is not necessarily a specific person, but also an institutional blogger, such as @丁香Doctor This type of professional media sharing health knowledge.
  • KOP differs from Key Opinion Leaders (KOL) and Key Opinion Consumers (KOC) in that they focus on vertical, professional content, providing detailed analyses and comparisons of products and brands.

Link: https://mp.weixin.qq.com/s/m4trhMxKPqYrngn7VOtMdA 

 

 

  1. Can ‘Midsize Influencers’ Fix China’s Body Image Problem?

  • Many in China have reclaimed the term, weipang(midsized), confidently using it to set themselves apart from influencers with conventionally thin figures, and the hashtag ‘midsize outfit’ has accumulated over 7.8 billion views on Xiahongshu and over 38 billion views on Douyin (China’s TikTok).
  • In recent years, the body positivity movement has also gained some momentum in China, with brands like Neiwai pioneering inclusivity in their campaigns, plus-size models like Xu Ruoxin on the covers of high-profile fashion magazines, and rapper Chen Jinnan openly discussing body image in her songs.
  • A quick search on Douyin, (whose user base is mostly men, as opposed to Xiaohongshu where over 70% of the users are women) will reveal the term weipang is used by men to describe women with large breasts and booties, but thin waists and long legs.
  • On Douyin, weipang women are mistakenly identified with a ‘slim-thick’ body type rather than the diverse range of ‘midsize’ bodies displayed by influencers on Xiaohongshu, and many videos on the platform revolve around sexiness rather than fashion and style.
  • At the same time, douyin banned 22 big accounts with large following and aiming to ban more, deeming their content pornographic and vulgar.

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Weekly China Updates

July 12, 2022

JD.com Announces Renewed Strategic Cooperation With Tencent

Tencent will keep providing JD.com with main entry points on its WeChat platform in order to maintain traffic. It also includes collaboration in areas like membership services, marketing and advertising, technology services, and communications.

The deal will carry out business cooperation in the areas of e-commerce portals, cloud technology and cloud services, membership systems, online conferences, enterprise services, smart retail and advertising, supply chain, and other areas. It will also strengthen technical exchanges and cooperation in artificial intelligence and other fields.

JD.com and Tencent are collaborating strategically for the third time at this time. The contract is extended for another three years.

Link: https://pandaily.com/jd-com-announces-renewed-strategic-cooperation-with-tencent/

Navigating Douyin — A Guide For Luxury

The mainland’s TikTok has already solidified its position in the market despite just having launched its e-marketplace in June 2020; it is currently ranked among the top five e-commerce applications with the greatest market shares.

600 million DAUs are on Douyin. The innovative consumer journey that Douyin delivers is what makes it so intriguing since it is completely changing the e-tail landscape. By connecting interest to final transactions, the software completes the cycle.

Link: https://jingdaily.com/douyin-guide-for-luxury/ 

Head & Shoulders Father’s Day Campaign Taps Into Paternal Pathos

Despite the fact that Father’s Day is not a recognised holiday in mainland China, it is nonetheless observed there in accordance with Western custom. On this day, the majority of Chinese advertisements are usually more sentimental than those in the West and focus on father-child connections. That said, it is remarkable how the Head & Shoulders commercial managed to stir up laughter in its viewers while also bringing them to tears.

For this very reason, family marketing is a common motif in Chinese ads. The good or service could be marketed to the whole family as a shared activity that is consumed together.

This video promo is not only directed at men who lose their hair but also at kids of all ages who value their father figures. In reality, sons and daughters wrote the majority of the posts under the Weibo hashtag #Dadsloveistoobald, which received an astounding 10 million views.

Link: https://daoinsights.com/works/head-shoulders-fathers-day-campaign-taps-into-paternal-pathos/ 

Weibo to Launch New Interest-Driven Social App

Several reports claim that Planet, a new interest-based social app, will be released by Weibo. An improved version of Planet Video, which already includes millions of communities covering a variety of themes, is the new app. Importantly, it will primarily serve as a tool for Weibo users to follow famous people and influencers while immersing themselves in groups of people who share their interests.

At the moment, Planet Video is divided into five categories: Home, Discover, Shoot, News, and My. The app immediately demonstrates Weibo’s interest in short video content. The move comes as no surprise given China’s tremendous demand for live streaming and brief video content.

On the other hand, some social circles may view the affiliation with a platform that promotes fan interaction and celebrity culture as disrespectful of the government’s efforts to curtail “excessive fan culture.” As a result, the luxury brands associated with Planet may find themselves in a sticky situation, dealing with criticism and reputational issues.

Link: https://jingdaily.com/weibo-planet-app-celebrities-short-video/

China’s All-Purpose Wechat App Lets Users Register Two Accounts With One Phone Number In Pilot Test

Tencent Holdings’ all-purpose social media platform WeChat is currently pilot testing a feature that enables users to sign up for an additional account using their existing mobile number. This could make it easier for users to balance their use of the app between their personal and professional lives.

According to a report by Chinese media outlet Thepaper.cn, the new capability has been in experimental testing with a small group of users since last year, and it is unclear if or when it will be formally released.

Some welcomed the move as a way to better separate work and life, while others were not impressed. However, some complained that the two accounts cannot work concurrently and they could miss the message on the main account when switching to the other one. 

Link: https://www.scmp.com/tech/big-tech/article/3184348/chinas-all-purpose-wechat-app-lets-users-register-two-accounts-one

WeChat Service Marketing

The service market is an official platform to help find cooperation. At present, millions of companies are looking for small program development, customer service and other high-quality services here.

In the article, the marketing managers of two companies recommended this platform. They said that after they applied to join this platform, they signed a lot of customer resources and got a lot of cooperation service providers who meet the following standards to enter the service market-content service area: 

  • It must be an independent corporate legal person, with fixed office space, and be qualified as a general taxpayer; 
  • Has been registered and operated for more than 1 year; 
  • The business scope should include: Daren, celebrity, self-media and other related businesses, providing market planning and publicity services, providing supply chain or e-commerce agency operations, etc., and engaging in related businesses for more than half a year; 
  • The registered capital is more than 500,000 yuan;

He has experience in providing live broadcasts, short videos, and graphic operations for merchants in the WeChat ecosystem. One of the following conditions is met:

  1. Sign a real and effective live broadcast operation business contract with at least 3 or more mini-program merchants, the live broadcast cooperation relationship can be checked, and the live broadcast comprehensive data performance during the service period is good;
  2. Possess an agency operation business contract based on short videos and pictures and texts signed with more than 3 merchants in the WeChat ecosystem.
  3. If neither of ① and ② is available, it is necessary to prove other materials that can prove the serviceability in the WeChat content service field.

Link: https://developers.weixin.qq.com/doc/oplatform/service_market/provider_guideline/enter_guideline/mcn_enter_guideline.html

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What’s New in China?

June 20, 2022

Consumers in China Shift Focus from Instant Gratification to Longer-term Value

Consumers in China have entered a new era characterised by increased sophistication and prudence, a commitment to sustainability, and a desire for work-life balance. Despite the fact that family remains the most important factor, the “me” economy has grown in popularity.

Also, convenience is becoming increasingly important. Consumers like the convenience of smart gadgets, with 70% prepared to contribute personal information for improved services, but they are concerned about excessive push messaging. The content given via push messaging is unsatisfactory for 75% of consumers because it is irrelevant or not tailored to their requirements.

Link: https://newsroom.accenture.com/news/consumers-in-china-shift-focus-from-instant-gratification-to-longer-term-value-accenture-research-finds.htm

Are Chinese Middle-Aged Men Luxury’s Next Big Spenders?

China’s menswear market was worth $104 billion in 2021, according to a survey by data analysis firm iiMedia Research, and is predicted to increase at a CAGR of 8.47% over the next five years. In a country with a population of over 1.4 billion people, it’s no surprise that male clients want to have a voice in their wardrobe – hence the term ta jingji, or “He economy.”

An account called @云爸爸品牌男装, also known as Yunbaba, that sells middle-aged men’s clothing has gained ground recently on Douyin. It attracted a lot of attention from the audience including younger people.

Canudilo, a local menswear brand famed for its traditionally fitted suits and separates, is hosting a series of themed fashion roundtables for male customers. It also works with renowned local designers and artists, such as Liu Pingyun (who designed the 2022 Beijing Winter Olympic mascot), to develop eye-catching pieces for the middle-aged market.

As the menswear market accelerates, options for older male shoppers are limited. “Men are too shy to discuss how to dress if their bodies are out of shape. Money is not the problem but the market still has a lot to do to educate this group.” 

Link: https://jingdaily.com/chinese-middle-aged-men-shoppers-ralph-lauren/ 

WeChat Unveils New Feature for Managing Group Chats

Admins and group chat owners can now highlight a message by long-pressing it and selecting “Sticky on Top.” Members of the group can click on the message, which will take them back to the original post, making the material more evident to the reader.

The hashtag #WeChat released a group chat message pinning feature# garnered over 460 billion views on Weibo this week, referring to a new feature that allows users to pin group chats to the top of WeChat for easier access. Netizens, on the other hand, are dissatisfied since they identify WeChat as nothing more than a working app. Users, on the other side, are proposing additional features like as the removal of like notifications and higher resolution photographs, among others. Despite the less than enthusiastic response from users to the new feature, WeChat remains the most popular social media platform among Chinese users, with over 78% of its 1.24 billion users residing in the country.

However, brands that build private traffic groups on WeChat may benefit from this capability. Brands might, for example, provide loyal consumers with exclusive discounts and bonuses, or improve the customer experience by providing more tailored aftersales services. Meanwhile, during recent lockdowns in locations such as Shanghai, group chats on WeChat were heavily used for collective shopping. As a result, as group buying has transitioned from rural to mainstream following the 2022 lockdowns, the group-buying community can benefit from this new function by allowing consumers to locate their orders more efficiently.

Link: https://mp.weixin.qq.com/s/qUotevoBpFQXcebxXR4DBQ 

Elon Musk Tells Employees He Wants Twitter to Be More Like WeChat and TikTok

Elon Musk told Twitter staff on Thursday that if the company wants to reach 1 billion users, it needs to become more like WeChat and TikTok. Musk stated that the app should be more useful and that “people should be really entertained and informed.”

“There’s no WeChat equivalent outside of China,” Musk said, “You basically live on WeChat in China. If we can recreate that with Twitter, we’ll be a great success.”

Musk emphasised his desire for Twitter to rely more heavily on subscriptions and fees on the call, suggesting that people should pay to be verified.

Link: https://www.theverge.com/2022/6/16/23171054/elon-musk-twitter-deal-1-billion-users-wechat-tiktok

Is Tech Accessories Luxury’s Next Big Opportunity?

Because so much of daily life in China is impossible without mobile technology, the industry is particularly lucrative. According to NPD Group, a market research firm based in the United States, 75% of smartphone users use cases.

The phone case industry is predicted to increase by $11.74 billion (about 78.1 billion yuan) in value between 2020 and 2025, according to a report by market research firm Technavio. Headphone cases, computer cases, and other smart device accessories, on the other hand, are on the rise.

Bottega Veneta created a case for Apple’s iPad in 2010 that featured the brand’s characteristic Intreccio woven design. In recent years, premium companies have embraced headphone cases, with Dior, Gucci, and Prada all promoting high-end designs.

Years later, in June 2021, Chanel released two pearlized leather AirPods cases, causing a stir. These were made of sheepskin and featured a rhinestone-studded version of the traditional Chanel double C emblem. Many people were put off by its expensive price of about $2,970 (20,000 yuan). “The headphone case is more expensive than the headphones, so what’s protecting what?” joked one netizen.

In the end, demand for tech accessories will always be tied to the gadgets they’re meant to complement and protect. To today’s Chinese consumers, luxury is defined by goods that represent their personal taste and style, rather than by a price tag. Like apparel, phone cases (and headphone cases) have become a popular method for young customers to express themselves. It’s only a matter of time before luxury brands and niche players increase their investment in the segment and allow for greater personalisation.

Link: https://jingdaily.com/luxury-phone-tech-accessories-chanel-airpods/

Xiaohongshu Launches Official Cooperation Platform

In April, Xiaohongshu announced management regulations for illegal brand point deductions, which will deduct points for brands that engage in illicit marketing practices. The guidelines’ objective is to severely restrict the brand’s “Private transaction” (i.e., the brand’s private collaboration with bloggers to release posts), requiring the brand’s and bloggers’ cooperative promotion to be performed through the marketing platform “Dandelion” under Xiaohongshu.

Why are brands worried about this promotion platform?

For brand ：

  1. The brand will worry that the articles published through the cooperation platform will display the brand’s logo, indicating that this is an advertisement, and users will feel uncomfortable
  2. the brand needs to pay 10% of the service fee to the platform, which means that the launch cost is higher.
  3. the brand needs to go through a series of processes through platform cooperation, and the procedures are very cumbersome
  4. the brand should also consider the business content scheduling of the blogger.

Although brands will face such troubles, it is undeniable that the introduction of the rules is necessary. In the past few years, many brands have relied on the little red book to privately seek cooperation with bloggers and even issued false advertisements.

Therefore, for brands, if they want to open the market by relying on red books in the future, it may be the “optimal solution” to follow the rules of the platform.

Link: https://mp.weixin.qq.com/s/M1sFpVo-IdzNjpvYsc1iEg

 

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The Latest News From China

June 14, 2022

The Development Trends of the WeChat Mini-Program in 2022

Current situation:

  • 450 million DAU
  • 4 million mini-programs created (x2 more than the number of native apps on iOS)
  • 95% of e-commerce brands have mini-programs

Context:

The rise of China’s mobile internet market has slowed, and the growth in individual device online time has practically halted. Customer acquisition became increasingly difficult for emerging applications. Users want apps that would not require installation or uninstallation, were constantly available for use at their fingertips and could be exited after usage. 

These facilitated the emergence of mini-programs

Development trends:

Mini-programs have grown in popularity not just in first- and second-tier cities, but also in third- and fourth-tier cities, and even counties. The most popular industries will continue to be e-commerce, live streaming, retail, community group purchasing, and tools.

Since WeChat is expected to introduce public domain traffic for e-commerce mini-program streaming, live streaming commerce, which is currently popular, will become even more appealing to businesses.

 Operation and service trend —— Refined operation, brand cultivation:

Start transition from “traffic” thinking to “retention” thinking by creating their own private domain traffic pool

Brands need to build a “private domain matrix” comprising WeChat features with mini-program, WeChat enterprise, video channels, mini-program live streaming and Official Accounts to guide the transformation

Link: https://qpsoftware.net/blog/development-trends-wechat-mini-program-2022

TikTok Shop’s Troubled UK Expansion: Staff Exodus and Culture Clash

TikTok is attempting to imitate Douyin’s phenomenally successful live-streaming approach (the Chinese version of TikTok). Since October 2021, the UK has become the first market outside of China to debut TikTok Shop.

More than 50% of the e-commerce team apparently quit in the past months and more is ready to exit the company.  Extremely long work hours (the 996 culture comes to mind) and high KPI targets are the key reasons for this. Employees also said that management is pushing solutions that work in China but aren’t tailored to the needs of the UK.

Link: https://www.ft.com/content/dc1aba86-2055-4521-8f0c-1f026c7f6864 

Asia-Pacific Consumers Willing to Pay Premium For Sustainable Products: Report

According to a recent survey released ahead of World Environment Day, nearly 90% of customers in Asia-Pacific are willing to pay extra for sustainable products, but a lack of information and availability is holding them back.

Alibaba Group, based in China, has vowed to be carbon neutral by 2030 as it reduces emissions across its operations and collaborates with millions of merchants to provide more sustainable items to the platform’s over 1 billion users. 

Alibaba also promises to expand its sustainable product line and advertise it properly. There are more than 460 certified ecolabels globally which increases consumer confusion. 

Link: https://www.alizila.com/asia-pacific-consumers-willing-to-pay-premium-for-sustainable-products-report/

TikTok’s Toxic ‘996’ Culture Is Forcing UK Employees out the Door

At least 20 staff have left TikTok since the company launched TikTok Shop in the UK in October, a live-streaming e-commerce platform. Employees complain that they are required to adhere to China’s working hours, which frequently result in them working more than 12 hours per day. Employees who took time off were penalised by the corporation, which rewarded overworking. Other former TikTok employees have also spoken out against the company’s hostile work atmosphere.

“The culture is really toxic. Relationships there are built on fear, not cooperation,” a former London-based team leader said. “They don’t care about burnout because it is such a big company, they can just replace you. 

Joshua Ma, the head of eCommerce at TikTok Europe and a senior executive at China’s ByteDance — the owner of the viral video app — upset London-based employees at a dinner this year when he declared that as a “capitalist,” he “didn’t believe” companies should offer maternity leave. TikTok informed employees on Wednesday that Ma had “stepped back” from his role while the company conducted a formal investigation into the comment.

TikTok Shop’s Troubled UK Expansion

Last year, Bytedance opened a Tiktok shop in the United Kingdom, but the results were unsatisfactory. According to the report, the main reason for Tiktok’s failure is that users are not accustomed to shopping on the platform; many live streams even make no purchases.

TikTok Shop’s goal is to buy low-cost things directly from low-cost producers in both the UK and China.

Bytedance introduced an e-commerce platform named Fanno in Europe in 2021, which is similar to Pinduoduo, as well as a separate e-commerce platform called Dmonstudio, which is a B2C website that sells women’s clothing. However, the plan failed as well, and Dmonstudio was shut down in February 2022.

The experts explained that the vertical e-commence market has never been developing in China because of the existence of Taobao. However, in Europe, the market is quite mature, which could be the main reason that Bytedance failed in this area. 

As a result, Tiktok will need to adjust its strategy both internally and technically in order to thrive. They must adapt to local culture and market characteristics while leveraging their algorithms and content distribution to create a fresh approach to stand out.

Link: https://www.ft.com/content/dc1aba86-2055-4521-8f0c-1f026c7f6864

Slow Live Streaming Is a New Trend

In May, Bilibili conducted a late-night accompanying live broadcast. The live broadcast called “Midnight Song platform” began at 10:30 p.m. only some songs were played. There were no anchors or products. In the evening, the number of viewers on WeChat video accounts reached 100000.

The slow live broadcast without editing and special effects, slow pace and simple pictures has gradually become a place for people to cure their emotions.

The cctv24-hour continuous live broadcast of hospital construction lasted 117 days at the start of 2020, with approximately 200 million views and more than 6000 hours of the online live broadcast.

There’s also the ipanda panda channel, which broadcasts a 24-hour live feed of enormous pandas, a national treasure, to people all over the world.

The slow video has become popular not only at home but also abroad

The Discovery Channel also produces a variety of slow-motion televisions with superb picture quality and stunning photography. On the longest day of the year, Icelandic rock band Sigur Rós took a 24-hour trip around the island. Their music was blended with the fog of northern Europe to provide sensory satisfaction to the audience; the public has a particular taste for sluggish live broadcasting, which is the time preference. People “trapped in home life” are highly eager to travel and get close to nature, and thus view the outside world, thanks to the epidemic’s travel limitations.

Link: https://mp.weixin.qq.com/s/Ee-Md4O0V5JOh_ZUrzZRQw

 

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Latest News from China

April 20, 2022

China Online Advertising Market Insights 2022

  • In 2022, 43% of advertisers in China expect to increase spending on digital marketing, 
  • The top online advertising media are:
    • E-commerce 47%, 
    • a short video (16.6%) 
    • News (16.6%)
  • In 2021, short video advertising continued to expand at a rate of over 31%.
  • Platform traffic, which accounts for 74% of a brand’s advertising budget, is the most important KPI.
  • 70% of advertisers indicated they’d pay greater attention to the platform’s ability to innovate.
  • 90% of advertisers feel that integrated marketing is becoming increasingly crucial.
  • After short videos, live broadcasts, and newsfeed ads, SEM is predicted to become the primary online advertising channel by 2022. (since 2019, Tencent, and Alibaba set up independent search engines to strengthen the integration entrance function of each service module).

Content ecology search ads are search ads on content platforms such as Toutiao, Douyin, Xiaohongshu, Zhihu, etc. SEM are search ads on search engines such as Baidu and  Sogou. E-commerce ecology search advertising includes search ads on e-commerce platforms such as Taobao Search, JD search and Pinduoduo search. Social ecology search advertising includes search ads on social platforms such as Weibo and WeChat

Link: https://www.chinainternetwatch.com/31087/online-advertising-market/

‘The NFT Thingy Is Starting to Burst,’ Warns Nassim Nicholas Taleb

The NFT thingy is starting to burst. All you need is higher interest rates for things that make no sense to start making no sense.

“Jack Dorsey Tweet NFT Once Sold for $2.9 Mil, Now Might Fetch Under $14K”.

The origins of speculative investments like NFTs are ultralow interest rates and market pandemic monetary policy.

The market has been anticipating the end of the market epidemic monetary policy of ultralow interest rates and cheap money for some time. Taleb appears to be saying that much of the cheap money has gone into speculative investments like NFTs and that this trend is ending. “People have lost their minds,” C.Z. Zhao, the billionaire creator of Binance, remarked of the $69 million auctions of an NFT piece of artwork in 2021.

Others like the recipient of that $69 million fortune, an artist known as Beeple, also worried that NFT art was in a bubble but believe the technology is going to outlive that. 

He said that the internet, in its nascence, was also a bubble—and it eventually burst.“But it didn’t wipe out the internet,” he said. “And so the technology itself is strong enough where I think it’s going to outlive that.” A whopping $44 billion was spent on NFTs last year, Fortune previously reported.

Link: https://fortune.com/2022/04/16/nft-thingy-starting-burst-warns-author-the-black-swan-predictor-2007-2008-financial-crisis-nassim-nicholas-taleb-cryptocurrency/

WeChat Announces Progress on Fix for Enforced Following of Accounts While Ordering

  • When consumers wish to prebook, queue or order from an online menu in a restaurant, one of the most popular methods is to scan a QR code to gain access to the menu.
  • Users are often obliged to follow the restaurant’s official WeChat account as a result of this, with no option to opt-out. Many people have viewed the approach as a violation of consumers’ rights.
  • The Shanghai Consumers Council concurred and proposed that little if any, personal information be carried through when clients scan to order. Furthermore, eateries should provide manual ordering choices as well.
  • It sent a notice to official account developers, asking them to look into a problem in which customers are obliged to use official WeChat accounts while ordering through QR codes at restaurants. The platform is reminding developers, according to the letter, to check for any associated issues and to guarantee that the client experience is overall positive.

Link: https://pandaily.com/wechat-announces-progress-on-fix-for-enforced-following-of-accounts-while-ordering/ 

The End of Celebrity Marketing in China?

Celebrity marketing events in March 2022 fell by 50.9% compared to the same period last year, according to a recent analysis by Shiqu Insight Engine.

Co-branded marketing and new product marketing, on the other hand, increased by 91.3% and 57.6%, respectively, while sports marketing increased by 6.6 times. Brands that fail to respond swiftly enough to their ambassadors’ inappropriate behaviour are also caught in the crossfire.

Link: https://jingdaily.com/celebrity-marketing-traffic-stars-decline/ 

Consumers Hope to Get Rewards from the Brand for Loyalty | 2022 Digital Trend Report

Cheetah Digital, a marketing platform company, and consultancy, a consulting firm, jointly released the 2022 digital trend report.

The report shows that consumers want their loyalty to the brand to be recognized.

The study investigated the different reasons why consumers like brands and found that 78% of consumers like a brand because it rewards their loyalty.

In addition to being rewarded for their loyalty, consumers also believe that their favourite brands provide a consistent customer experience (80%).

About a third of people feel frustrated when they receive news that they cannot recognize their shopping or loyalty history.

Similarly, data trust is also important. Consumers surveyed (74%) claimed to have a favorite brand because it uses their data in a way that makes them feel comfortable.

Knowing this, marketers are taking various approaches to try to build trust in their data privacy protection, including a commitment not to sell information and seeking informed consent.

51% of consumers like a brand because they can communicate with the brand quickly and effectively.

Personalization is important for understanding consumer preferences. When consumers receive irrelevant content or offers (49%), when the message does not reflect their needs (41%), or when the brand fails to meet the needs of consumers after collecting information (35%), people are frustrated.

Consumers seem to be particularly open to certain areas of brand information.

Respondents said they either received the right amount of information or were even willing to receive more information about loyalty programs (71%), discounts (70%), VIP offers (68%) and brand value (65%).

Link https://mp.weixin.qq.com/s/jXgbVdVDV7V54P5nmN9YWw 

Elon Musk Makes Offer to Buy Twitter

On April 4th, 2022, Elon Musk announced that he had purchased 9.1% of Twitter. The news that the world’s richest man was now (briefly) the largest shareholder in his preferred social media platform. However, later on, he changed his idea to purchase the entire company. He offered $54.20 a share, valuing the company at roughly $43 billion.

  • Employees at Twitter are worried about Elon Musk’s takeover bid.

Things were a little different within Twitter. The news that Mr Musk wanted to buy the company and reshape it in his image shook much staff over the last ten days.

  • Musk wants to ‘unlock’ Twitter’s potential for free speech

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe,” Mr Musk said in a letter sent to Bret Taylor, the chair of Twitter’s board, on Wednesday. “I believe free speech is a societal imperative for a functioning democracy.”

Mr Musk has long used Twitter to slam critics, mock Tesla short-sellers, and suggest extravagant space exploration plans. In addition, he has distributed false information concerning the pandemic. In a tweet in 2018, he pondered about taking Tesla private and falsely stated he had secured finance for the transaction, for which he was fined $40 million by the Securities and Exchange Commission.

According to the letter written to Twitter’s chair, if Mr Musk’s buyout offer is not approved, he will “need to reconsider my position as a shareholder”.

Link: https://www.nytimes.com/live/2022/04/14/business/elon-musk-twitter

Secondhand Luxury Is Key for China’s First Time Buyers

In 2021, Chinese consumers are expected to spend $73.6 billion on luxury goods in domestic stores, up significantly from $53.6 billion in 2020 and nearly double the $36.9 billion spent in 2019.

Because Chinese younger people, mostly millennials and Gen Zers, are increasingly inclined to purchase secondhand luxury products, there could be a secondhand luxury boom in 2022.

The main reasons are as follows,

  • With international travel still unlikely for many consumers and viruses threatening offline retail, young consumers may turn to e-commerce for the convenience factor.
  • There are always long waits in queue to get a limited edition or it requires to purchases a package deal in the offline shop to get a brand-new product. While the younger generations are not that patient, they prefer to get what they want right now.
  • The price hicks in those luxury brands like LV, and Chanel drives more consumers to the secondhand luxury market.

The issue in this sector right now is that there is no clear market leader. As a result, market challenges such as authentication and fakes continue to exist.

International luxury resale platforms aiming to get into the Chinese market will also need to think about more differentiators to help them compete with domestic rivals. Global players can compete in two ways: by stressing their ability to source from other countries and by boasting about their authentication credentials.

After all, the greatest service should be the deciding element for customers in this luxury resale e-commerce site.

Link: https://jingdaily.com/secondhand-luxury-is-key-for-chinas-first-time-buyers/

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What’s New in China?

March 8, 2022

China Drafts New Rules to Control Notifications and Pop-ups

Context: The proposed rules appear to be part of a larger attempt in China to “clean up” its online content offerings. Notifications and pop-ups have been accused of being abused by Chinese IT businesses, who have been accused of utilising them excessively to push commercial promotions or sensational material.

Why it matters: Notifications and pop-ups are commonly used by Chinese tech companies to market their services. New laws restricting their use could damage companies like Baidu, Tencent, and Meituan, who rely on them to market their products and make money through adverts.

  • The draft rules require service providers to not “abuse” notifications and pop-ups to sensationalize trending social issues or entertainment topics. 
  • Notification and pop-up pushing service providers must publish content that adheres to the government’s “core values.”
  • Advertising via pop-up windows would be required to show a visible close button and carry a clear notice to users about the paid nature of the content.
  • Service providers that don’t qualify for an internet news license would be barred from pushing news notifications and pop-ups.

Link: https://technode.com/2022/03/03/china-drafts-new-rules-to-control-notifications-and-pop-ups/

China’s Viral Metaverse Social App Zheli on a Roller Coaster

In less than a month, China’s metaverse-like social app Zheli surpassed WeChat as the most popular free app on Apple’s App Store. How do you explain your success?

Gen-Z’s new demand in virtual socializing: WeChat has dominated most online social scenarios in China for years. However, the platform’s blurring line between work and life, as well as its increasingly powerful enterprise features, erode the sense of intimacy. Zheli was attempting to blend in there. It aspires to provide a unique virtual place for close friends, where Gen-Z, who grew up in the digital age, feels most at ease and free to be themselves. Furthermore, Zheli provides its customers with the company of their dearest friends 24 hours a day, seven days a week. They’re always there, and everyone is kept up to date on one other’s daily activities, which is especially important in the aftermath of a pandemic.

This new platform was overloaded by unexpected demand, and users complained about inconsistent internet connections and frequent crashes. They suspended user registration on February 16 and chose to take use of the opportunity to correct bugs and improve user experience.

This so-called “China’s first metaverse social app” sparked a debate over how to strike a balance between immersive, realistic virtual experiences and privacy and copyright infringement.

The elements of the parallel actual world, in other words, data, must be used to create an immersive and realistic virtual reality. Everyone’s everyday life is distinct in many aspects, from dressing style to lifestyle. In the metaverse, private information is exchanged for a tailored setting that makes one feel accepted and comfortable. Is that an agreement that everyone would be happy with?

Link: https://daoinsights.com/works/chinas-viral-metaverse-social-app-zheli-on-a-roller-coaster/

Kuaishou To Ban External Links to Taobao and JD.com From Its Live Stream

External links to Taobao (owned by Alibaba) and JD.com, China’s two largest e-commerce sites, will be withdrawn from Kuaishou’s live streaming rooms soon.

As of Q4 2021, Taobao will lose access to all social commerce channels on the platform, which has over 410 million monthly active users.

Because live streaming events are the most popular form of online engagement, the decision will reduce Taobao and JD.com’s principal source of online traffic. The decision is motivated by a desire to create a closed-loop e-commerce system, as seen on all of China’s major video-sharing platforms.

In comparison to its rival Douyin, which had already tapped into this in 2020, this was a late move. This is another example of how, as China’s short video industry matures and user numbers stagnate, social commerce has become a new battleground for video-oriented platforms.

Link: https://daoinsights.com/news/kuaishou-to-ban-external-links-to-taobao-and-jd-com-from-its-live-stream/

Low-budget CNY Campaigns

“The most practical strategy of good CNY marketing is to find the most significant, overlapping resonance point with the emotion of Chinese New Year and brand characteristics.”

  • A playful approach incorporating name/logo/brand hero and the festival theme
  • Make the distance between CNY and family shorter and homier 
  • Fun experience
  • Pick cool partner
  • Following the same CNY theme is also a very good choice 

Link: https://mp.weixin.qq.com/s/8CtI5R0PxMsZhQo4vEJ7uQ 

Douyin Advertising: a Step by Step Guide

Nearly half of the Chinese population uses Douyin daily (600 DAU). ByteDance is a global leader in recommendation algorithms. 

Douyin users also show the highest advertising receptivity among all leading social platforms. For example, 43% of users indicate that Douyin ads are easy to accept, sometimes even entertaining to watch.

Link: https://mp.weixin.qq.com/s/LZ-baLoyevrkMbbaoe9DIQ 

Fjord Trends 2022

Accenture’s Fjord Trends 2022 present a tale about people and their interactions with the environment, technology, brands, and one another. The main topic is the necessity to adapt to changes in all relationships, which are the threads that weave the new fabric of life together.
Come as you are: This phenomenon has side-hustles as a feature, a cause, and a symptom. Technology is making it simpler to find new sources of income, either in addition to or instead of traditional work. Employers have additional problems as a result of this, as they must balance the flexibility they provide to people with the demands of the company as a whole and work toward the greater good of the business in order for creativity, diversity, and trust-building to thrive.

The end of abundance thinking: Having recognized the interconnectedness of everything, organizations will have to start collaborating with others in the ecosystem to tackle climate change—the most pressing challenge.
As the role of abundance thinking in business is thrown into doubt, “less” doesn’t have to mean “loss”.

The next frontier: It’s possible that we’re on the verge of a new cultural age. If this is correct, the metaverse will be linked to this cultural transformation. Whatever happens, the metaverse has limitless potential as a daring new environment for businesses to explore, test, and create, all of which makes it incredibly intriguing.

This much is true: Brands must navigate limited space for information layers and people’s limited attention span. The layers must be simple and easy to use, personalized, transparent and contextual to place, interface and people’s ever-changing modes. The content design will be key, and we expect conversational AI to evolve both in ambition and sophistication.

Handle with care: Care has always been a vital aspect of being human, but it’s become more apparent and openly acknowledged in recent years, which is a great change. Designers and organisations alike must create space for exercising care—talking about it isn’t enough. The goal should be to design and build caring into systems consciously.

 

 

 

 

 

 

 

 

 

 

Link: https://www.accenture.com/_acnmedia/PDF-169/Accenture-Fjord-Trends-2022-Full-Report.pdf

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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:

  1. 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.

  2. 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

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China’s Latest Updates 

February 15, 2022

China’s first virtual magazine: a read in the Metaverse

Huasheng Media and Alimama have joined the newest Metaverse campaign in China. On February 9th, the two partners released MO Magazine, a virtual magazine that replaces traditional reading experiences with an immersive virtual reality environment.

This new medium is led by Ayayi, one of China’s most popular virtual KOLs, and Jing Boran, a Chinese actress, giving both hit figures even more clout in China while tapping into the need for Metaverse.

The digital area offers a futuristic sci-fi atmosphere in which spectators can learn about human civilisation in a digital museum that also includes an audio narrative about the earth’s evolution. This makes reading more engaging because viewers are not only players but also builders of the digital world, with the ability to contribute to the virtual “human evolution.”

Meanwhile, 88% of readers who completed the virtual reading were given a Metaverse Spaceship ticket, according to reports. In just two days, the virtual magazine has received over 400,000 views, with interest building when hashtags related to the launch of the magazine began trending on Weibo, attracting millions of views on the microblogging site.

Link: https://daoinsights.com/news/chinas-first-virtual-magazine-a-read-in-the-metaverse/ 

Shanghai Bans Effeminate Men, Money Worship in Commercial Ads

Shanghai’s market regulator released a new advertising rule on Wednesday, barring the representation of male characters in romantic relationships, effeminate men, and philosophies like money worship in commercials, among other things.

Advertisements are also barred from promoting ideologies such as “money worship, hedonism, extravagance, and soft pornography.” Also, to ensure that their communication is up to date, brands must be informed of new national and city-level legislation.

Link: https://www.sixthtone.com/news/1009633/shanghai-bans-effeminate-men%2C-money-worship-in-commercial-ads 

Alibaba: Consumption Trends for the Lunar Year of the Tiger

According to the short report, the event boosted ice and snow consumption when it coincided with the Olympic Games: over 1 million people visited the Olympic Games’ Tmall shop, and the mascot Bingdundun was sold out in one night.

In addition, there was a large increase in the sale of ski and ice sports equipment.

The festival became digital, ushering in a slew of new trends: Tiger-themed goods, such as backpacks, t-shirts, and caps, are quite popular. The search rate has climbed to 874%, while the number of people purchasing pre-cooked meals has increased by 345% via the Hema app.

Link: https://mp.weixin.qq.com/s/ZDzU2v1WeV7I42LkDeFSUg

WeChat: Keywords About the Lunar New Year of the Tiger

  • Over 5 billion WeChat hongbao with designed covers have been sent during the CNY, the total number of WeChat hongbao covers was 380 million.
  • The take out food order increased 13.8% compared to last year on New Year’s Eve and over 120 million people watched the Spring Festival Gala on WeChat Channels
  • The top 5 video themes on Moments were: fireworks, family reunion dinner, new year wishes, festival mood and count down
  • The Tiger welcome a new year was the top 1 WeChat status sticker 
  • Over 16 million coupons (over 800 million RMB) have been sent via WeChat pay and low carbon travel with Paperless boarding increased to about 82.3%

Link: https://mp.weixin.qq.com/s/FmxWAT-R8no-Gy-PxoL-9w

100 Keywords Forecast 2022

On January 27, 2022, Wunderman Thompson, a brand of WPP, released the future 100:2022 – trends and changes to watch in 2022.

This analysis projects 100 developing trends in ten categories in 2022, using 100 keywords: “culture,” “technology and innovation,” “tourism and vacation,” “brand and marketing,” “food and beverage,” “beauty,” “retail and business,” “new luxury life,” “health,” and “work.”

Brand and marketing 10 keywords:

Brandalism: In recent years, the advertising business has made significant attempts to achieve carbon net zero in its own operations. Activists argue that this isn’t enough and that the efforts pale in comparison to the carbon footprints of some of the advertising industry’s biggest clients.

“No matter how good the idea is, as long as it is to promote high-carbon products, provide misleading green packaging for oil companies, or use high-energy advertising screens, it is a kind of pollution and bad advertising.”

Co-creative platforms: The next generation of digital platforms puts the user in charge of their own creativity.

The new digital platform gives users more creative control, allowing them to take more initiative. They are a new set of creative people who meticulously develop virtual imagery, human designs, and self-expression.

Superfollowers: New in-app subscriptions on social platforms are allowing digital creators to monetize their work.

In terms of media content, social platforms are expanding to provide more than just amusement. Enhanced features and incentives to attract, gain, and keep a large following are fueling innovation and enriching social media dialogues for both producers and consumers.

Twitter, for example, allows authors to earn $2 to $10 per month by tweeting to their super fans; Twitter is also exploring business accounts to provide companies with special settings to display relevant information.

Branded virtual worlds: Gaming is increasingly displacing traditional advertising mediums, particularly among younger people.

As firms and marketers enter into this burgeoning field, expect to see more branded virtual worlds.

Allow users to compete in the virtual arena while wearing Nike apparel and equipment. P&G invites visitors to a virtual world where they may learn about the company’s product line, play games, and learn; BMW has established a virtual world that includes the IAA mobile 2021 International Auto Show and an exclusive Coldplay concert.

Users may learn about products, shop, and even watch movies in the virtual world thanks to SK-virtual II’s metropolis.

Euphoric ads: In brand advertising and engagement, happy moments are keeping spirits up.

Consumers value themes of optimism and unity, and businesses that emphasise these communal characteristics generate favourable responses from customers and increase involvement inside their branded communities.

Headless brands: A new wave of consumption creation is changing from the company’s control of the brand to the collective decision of brand, products and services

Regenerative brands: Across industries, more brands are stepping up to commit to regenerative practices, supercharging their sustainability goals.

Brands are acknowledging that doing less harm to the planet is no longer enough. Regenerating the world’s resources and repairing the damage is now the ultimate sustainability stretch goal.

New company manifestos: To stay culturally relevant and engage with today’s employees, companies are altering their internal brand messaging.

Companies are undergoing a rebranding process that aims to modernise internal rules to match today’s needs and prioritise employees. The move implies a new degree of regard for employee happiness and well-being, which necessitates a new level of understanding and empathy on the part of employers.

Dreamvertising: Brands and advertisers are looking to guide our dreams. 

77% of US marketers say they plan to use dream tech for advertising purposes in the next three years.

Augmented ads: With augmented reality, brands are taking their digital advertising to the next level.

AR ads are ushering in a new era of digital marketing and advertising—ads that people want to interact with.

To entice digital consumers, major brands are embracing augmented reality technologies to boost their digital advertising.

Link: https://www.oceanskycruises.com/sites/default/files/2022-01/The-Future-100-2022.pdf

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