China News Roundup

January 25, 2022

Shopify and China’s JD.com team up to capture cross-border sellers

JD.com, a major Chinese online retailer, has partnered with Shopify to let global firms harness China’s massive desire for imported goods, as well as Chinese merchants, sell internationally:

  • The first part of the deal will put the JD-Shopify alliance in direct competition with Alibaba (which counted 35,000 international and more than 6,000 brands entered China via Alibaba)
  • JD’s account creation process will take 4 weeks instead of 1 year for Shopify-powered firms to start selling. The platform will leverage technologies like automated translation and price conversion, as well as cargo aircraft to transport items.
  • Using Shopify’s direct-to-consumer approach to export Chinese goods competes directly with market leader Amazon, which has been establishing itself as a gateway for Chinese exporters. 
  • The two e-commerce giants appear to complement each other — Shopify brings the range of products and JD offers its extensive global warehousing and shipping infrastructure.

Link: https://techcrunch.com/2022/01/18/shopify-jd-china-partnership/

Alipay unveils NFT-powered museum collectables in honour of Chinese New Year

Alipay is bringing a series of NFT-powered digital collectables inspired by the 12 Chinese

zodiacs, with the tiger – the Chinese New Year’s zodiac sign – as the star of the show.

A total of 24 institutions around the country are anticipated to take part and release NFT work featuring tigers. Topnod, a mini-program integrated into the Alipay app that collects, discovers and shares digital collectables, powers these NFT collectables. This new NFT marketplace was launched last year and is seen as another move into blockchain technology and NFT trading by the tech giant.

The Fortune of Patriotism, the Fortune of Prosperity, the Fortune of Harmony, the Fortune of Kindness, and the Fortune of Dedication are all represented by digital collectables.

To target a younger audience, almost 2,000 museums in China have established their own mini-programs on the site. The internet market for NFT has proven to be a successful means of bringing these cultural artefacts to China’s tech-savvy youth.

Link: https://daoinsights.com/news/alipay-unveils-nft-powered-museum-collectibles-in-honour-of-chinese-new-year/

[Xiaohongshu] 6 Lessons from Chinese Beauty Brands

 In 2020 China’s Beauty market was valued at USD 6.34 billion with an average growth rate of 12%. 

Thanks to KOLs and KOCs, RED is the key platform for product and brand discovery. 

  1. The Diamond-Shaped Seeding Method
  2. Male influencers
  3. Ingredients & Routine
  4. Meeting Needs at Speed
  5. High Quality & Informative Content
  6. Posting Frequency & Topics

Link: https://mp.weixin.qq.com/s/_LpvQ7sJnjIqLgyG-qFYQg

How Have Brands Used Channels Since Its Launch Two Years Ago?

WeChat has prioritised Channels since its launch two years ago. The following are some of the most important updates:

  • In December 2020, live streamers can use live streaming filters, host lucky draws, and connect with other live streamers. 
  • In May 2021, Channels finalized its commercial function by adding a product tab on videos. Users can watch videos/live streams while placing orders. 
  • Later in October, Tencent connected WeCom and Channels so that brands can maximize the conversion opportunities of their video content. For example, sales associates can share brand Channels videos with their clients. 

The 3 types of favoured content are:

  • Emotion-based
  • Professionally-generated content (news, official announcement)
  • Entertainment

The 3 types of channel live stream are:

  • Complements OA performance
  • Education content
  • Fashion & entertainment

Link: https://mp.weixin.qq.com/s/nieKtQ-z8ID1K8fIgkC1dw

Top 10 global consumption trends in 2022

  1. Stock goods: Because they couldn’t get the products and services they required on a regular basis, hoarders began to buy similar items or come up with inventive solutions.
  2. Low-carbon lifestyle: As public awareness of climate change grows, customers are making attempts to reduce their carbon footprint by purchasing ecologically friendly goods and taking other practical steps, and they want brands to play a role in environmental protection.
  3. Older consumers get involved in digital: they are comfortable with and adapt to new technology, and they can shop and use a variety of services via digital platforms.
  4. Rise of financial enthusiasts: Consumers’ investment confidence has gradually increased, and they know better how to improve economic security through financial management.
  5. Interest and purpose-oriented behaviour: The pandemic has made great changes for consumers – people have re-examined their values, lifestyles and life goals.
  6. Rise of the metaverse: As consumers pay more attention to the metaverse in 2022, businesses will have the opportunity to build brand value in this new digital ecosystem, promoting e-commerce and virtual goods sales.
  7. Second-hand consumption: With the increasing awareness of sustainability and personalization, people have gradually eliminated the prejudice against second-hand goods and promoted the development of point-to-point platforms.
  8. Urbanized pastoral life: More environmentally friendly activities, such as indoor agriculture and roof gardens, can be integrated into urban areas to better complement the pastoral city trend.
  9. Self-love: Self-acceptance, love and tolerance have become the most important life attitude of consumers. If the product can make consumers feel optimistic and confident, the brand influence will also increase.
  10. Return to the new normal in diversified ways: When consumers consume online for convenience or safety, they are also eager for meaningful social connections. Therefore, it is very important to adopt the mode of combining the two to meet the new normal of consumers.

Link: https://mp.weixin.qq.com/s/DnE_rpUlgWI-gi_G2NWZDg

The more social, the more social phobia, how does online social lower people’s social ability?

We constantly emphasise the Internet’s convenience and fun, but the reality is that people are becoming increasingly fearful of social situations. Although, in many situations, online social networking can efficiently overcome the inconveniences of time, geography, and form. However, an increasing number of people are avoiding face-to-face social situations.

Take a look at the social phobia search index over the last ten years, which has been steadily increasing. According to Guangming Daily’s social terrorism statistics, more than 62% of people have a clear social terrorism tendency.

Social phobia manifests itself in a variety of ways. When people meet up with acquaintances, they are hesitant to say hello and hide silently; they are also hesitant to talk in public and avoid doing so. Dinner is shared among friends, but everyone bows their heads and plays with their phones; Even the salesperson doesn’t want to ask questions when you are shopping.

The network allows for greater self-presentation: people used to try hard fitness, beauty, makeup, and plastic surgery to improve their charm and image. All problems can now be readily solved using social support software. The external image created by software will have a significant gap, in reality, causing people to be afraid of revealing their true self’s real life.

The Internet provides more social forms: they can escape the anxiety and fear of social interaction with the help of takeout, express, WeChat and games without being exposed to the sun.

The network provides stronger communication ability: on the Internet, we have more time to package our behaviour. We have enough time to think about the content of each other and trigger more interesting topics; To sort out the words you respond to.

Link:https://mp.weixin.qq.com/s/xvuPAPcWmGByKhzA20NOfg

 

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China’s Weekly Learnings

January 17, 2022

Xiaohongshu’s registers new trademark ‘Laohongshu’, eyeing Chinese elders

Xiaohongshu is now focusing on the elderly in China, a profitable customer segment that is mostly untapped.

More lately, elder generations have witnessed a surge in internet usage, becoming more tech-savvy as a result of the pandemic, to the point that a new wave of influencers over 55 has emerged. In the next few decades, China’s elderly population is expected to exceed 500 million. They are the generation that is catching up on social media and becoming more visible, particularly on short-form video platforms. 

Xiaohongshu justified the registration as a defensive measure after discovering that many other parties were attempting to register the Laohongshu trademark ahead of time. As a result, a defensive registration has been implemented to keep malevolent squatters at bay.

It all began when Youyou Video, a new app, was released in June, around the same time as the trademark application was filed. With features such as bigger fonts, voice remarks and feeds that include tips on age-reducing clothes and makeup, the app displays a focus to the middle-to-elite-class senior female users.

With the Chinese population rising and more people entering the digital world, Chinese elders are becoming a new market that Internet companies like Xiaohongshu are vying for.

Link: https://daoinsights.com/news/xiaohongshus-new-trademark-registration-approved-eyeing-chinese-elders/

Crackdowns in live streaming in China: how brands should approach it

Key takeaways:

  1. As the Chinese government promotes the ‘Common Prosperity’ concept, the government is cracking down on live streaming.
  2. Foreign brands should pay greater attention to the government’s live streaming laws and alter their tactics accordingly.
  3. Brands should ensure that their collaborating influencers follow the regulations of the government, or at the very least that the influencers’ personal behaviours do not have a substantial impact on them. Viya had to pay a record-high sum for tax evasion despite being the “live streaming queen.”
  4. Based on the restrictions issued by the government, e-commerce platforms are likely to tighten their regulations. Although the guidelines are still in the works, they are expected to limit live steamers the ability to use the platform in the way users are used to. They should, for example, speak Mandarin and dress more appropriately.

In China, crackdowns on live streaming do not always imply that the government is opposed to it. Rather, it means that businesses should ensure that their live streaming strategies are in line with, or at the very least do not contradict, government rules.

Link: https://daxueconsulting.com/chinese-livestreaming-crackdown/

How Do Brands Encourage User-generated Content On Bilibili?

Bilibili began as a video platform for anime, comics, and games. It is now one of the most widely used video platforms among Chinese Generation Z. It’s also known for having a very active community.

UGC is one of the most engaging mediums that companies can use (user-generated content). Because Bilibili users respect authenticity, high-quality user-generated content (UGC) can quickly go viral, allowing the business to reach thousands of new prospective customers, stimulate product development, and more.

Link: https://mp.weixin.qq.com/s/phbEIoaoBg7Ipik8F5YF_g

Tapping into the explosive growth of personalized beauty in China

In traditional offline beauty stores, sales associates greet customers, try to understand their needs and make product recommendations.

That has changed now. People may now access massive amounts of information with a few easy clicks at home thanks to modern technologies. Algorithms aid in the limiting of the knowledge pool, while other users’ ratings and reviews on social media assist in determining whether a product is truly effective. COVID merely accelerated the process.

They are guided by a variety of diagnostic tools, artificial intelligence (AI), widgets, applications, online quizzes, and online experts. However, in many cases, none of the items is actually individualised. The technologies under discussion are more concerned with speeding up the decision-making process of consumers than with meeting their actual demands.

WeChat’s powerful ecosystem provides a full data collection, branding, marketing, selling, and brand refresh cycle.

Link: https://beautymatter.com/articles/tapping-into-the-explosive-growth-of-personalized-beauty-in-china

WeChat Red packet cover

New shape: from rectangle to different other shapes

New ways to get: the users can get them from their Moments. 

Users who receive Moments ads with the label “shake out surprises” can shake and receive the red packet cover. If the sponsors give you “one more” chance, you can share the cover with one of your friends and they will receive one as well.

Link: https://mp.weixin.qq.com/s/3JzCpTEFbG7rQWPyvnVfow

Bilibili 2021 Top 100 uploaders

Bilibili selected 2021 Top 100 uploaders by their professionality, influence and creativity and will hold a ceremony this Friday at 19:00. It’s a good opportunity to know why they are outstanding from the uploaders.

Link: https://mp.weixin.qq.com/s/5PooWe308n67FhdD9fmW9Q

Wecom 2022 new product launch conference summary

At the new product launch in 2022, Wecom mainly talked about three major points. 

  • The first point is to connect the consumer market and bring businesses closer to their customers, as evidenced by the channel and WeChat customer care. When watching the video, watching the live broadcast, or on the main page, users can add Wecom personnel to the video number. WeChat customer service means that it can be customised whether it is in the official account channel mini programme or outside of WeChat.
  • The second point is to establish a connection between upstream and downstream partners. Companies from upstream and downstream can join the corporate address book and contact each other at any time. People from various companies can collaborate to produce papers that can then be shared with a single click.
  • The third point is that enterprise Wechat has partnered with Tencent to establish a new office function called Tencent document Tencent conference. Working on, viewing, and commenting on online papers is convenient for a large group of individuals. WeChat allows users from outside the company to collaborate on documents. Internal and external colleagues, partners, and other meetings can be invited to online meetings. There are further features like meeting minutes that can be sorted into text records automatically.

Link: https://mp.weixin.qq.com/s/5OKKBjZ5TMvg437xOQU0oA  

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This Week’s Highlights in China

January 11, 2022

China announces breakthrough in 6G mobile technology

A huge milestone in “world’s fastest” real-time wireless transmission has been announced by a high-tech institute:

The maximum transmission speed might be up to 100 times faster than the present 5G system, which can already carry data 20 times quicker than prior standards.

Around 2030, China is anticipated to see 6G technology hit the market. It lays the groundwork for future 6G holographic communication, the emergent buzzword “metaverse,” and other yet-to-be-developed applications.

By “replacing the vast number of cables in the data centre, allowing for more efficient Internet transmission,” it might also “substantially” cut expenses and power usage.

Link: https://daoinsights.com/news/china-announces-breakthrough-in-6g-mobile-technology/

WeChat users & platform insights 2022

Overview: 

  • 1.26 billion monthly active users 
  • 330 million use video calling.
  • 780 million users are on the social networking section WeChat Moments 
  • 120 million publish updates
  • 450 million users access Mini Programs
  • The commercial realization of WeChat mini-games increased by 20%
  • China game live streaming revenues to double by 2021
  • WeChat Search: The number of monthly active users of WeChat search has reached 700 million according to WeChat official data released in January 2022.
  • WeChat Pay: more than 240 million users. It boosted the conversion rate of e-commerce orders by 14%
  • WeChat Channels: Tencent’s ultimate weapon in the short video market. It’s maturing with the integration with Official Account, Search, Mini Programs, etc.
  • WeCom: 80,000 enterprise WeChat partners, with a year-on-year growth of 400%. 

Link: https://www.chinainternetwatch.com/31608/wechat-statistics/

Is Xiaohongshu losing its attractiveness?

In recent months, RED has encountered a number of significant challenges, both internally and externally.

Unfair KOL/UGC content was discovered for a large number of brands, while other accounts were accused of producing overly-beautified and unrealistic evaluations. The site was also attempting to appeal to more male customers by advertising gaming-related content, as well as sexually suggestive information that may potentially reach minors.

Furthermore, Douyin and Taobao are adding new elements to their “growing grass” (种草)  efforts.

Link:  https://jingdaily.com/is-xiaohongshu-losing-steam/ 

Tapping into the explosive growth of personalized beauty in China

In traditional offline beauty stores, sales associates greet customers, try to understand their needs and make product recommendations.

People may now access massive amounts of information with a few easy clicks at home thanks to modern technologies. Algorithms aid in the limiting of the knowledge pool, while other users’ ratings and reviews on social media assist in determining whether a product is truly effective. COVID merely accelerated the process.

They will be guided by a variety of diagnostic tools, artificial intelligence (AI), widgets, applications, online quizzes, and online experts. However, in many cases, none of the items is actually individualised. The technologies in the discussion are more for speeding up consumers’ decision process rather than catering to their real needs.

WeChat’s Powerful Ecosystem Offers a Complete Cycle of Data Collecting – Branding – Marketing – Selling – Brand Refresh

Link: https://beautymatter.com/articles/tapping-into-the-explosive-growth-of-personalized-beauty-in-china

WeChat open class pro-2022

Channels: promote it by supportive policies and Livestream concert

  • Lead the traffic to the original creators; make 1 million creators have income
  • Livestream concert: in 2021, they held 2 big concerts (Westlife: 27 million visitors; Mayday: 12 million visitors)

WeChat pay: in the past, people used WeChat coupons/discounts to save 22.9 billion RMB; the total consumption amount was 520 billion RMB.

  • Optimize the digital management
  • 10 billion RMB project to help the small and micro-merchants to upgrade their system

Mini program: DAU 450 million

  • the mini-program accelerated their integration into all walks of life due to the pandemic, such as Make an appointment for vaccination, Online office tool and Government service etc
  • They will Improve the users’ experience and support the service provider

Search: MAU 700 million

  • Integrate Search to mini-program, account and Channels

WeCom: Over 1 million people use WeCom in 1 hour at the same time, they will focus on 

  • Internal management
  • Connect the brand and the potential customers

Link: https://mp.weixin.qq.com/s/RVvgIcrpLguNpL_wTLN1sA

The lifestyle trends making it big in 2022… from air fryers to going green

More than 70% of Xiaohongshu users are from the post-90s age, who are young, active, and enthusiastic about their life. They provide a peek into what fascinates China’s new generation by researching the latest trends and sharing their experiences on Xiaohongshu. By evaluating the content on Xiaohongshu throughout the year 2021 and sorting out quickly growing trends, we can predict which ones will most likely break into the mainstream in 2022 and be extensively adopted by the young Chinese population this year.

In 2022, let’s look forward to the trends that will add a refreshing spin to everyone’s lifestyles:

  • Mountain life

For the past two years, there has been an epidemic. People who live at home and work for lengthy periods of time can feel suffocated at times. To slow down, they appear to need to find an outlet and take a deep breath of fresh air outside.

  • Air fryer

According to xiaohongshu’s trend projection for “frying everything using an air fryer,” there would be more than 60 million searches for information connected to the air fryer in the station by 2021.

  • Immersive experience 

Xinhong data (xiaohongshu data platform of Xinbang) https://xh.newrank.cn/ ）It shows that the notes of “immersive home”, “immersive bath” and “immersive makeup” released by several xiaohongshu users have won more than 100000 praise collections

  • Ice Skating and Skiing

The volume of searches for “skiing tutorial” in Xiaohong Book increased by 100% year over year in 2021. There are more skiing-related notes (380000+) than skateboarding-related notes (280000+) that can be done all year.

Link: https://www.xiaohongshu.com/en/newsroom/detail/the-lifestyle-trends-making-it-big-in-2022-from-air-fryers-to-going-green

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Weekly China Review

January 4, 2022

Baidu unveils China’s first metaverse platform ‘Xi Rang’

Users can create avatars, connect with other players, and explore the virtual world of XiRang using Baidu’s new metaverse platform.

It is available in China and lets you create avatars, chat with other users, and even build your own place on the platform. Players can explore Creator City, XiRang’s first city, as well as the surrounding virtual natural landscapes and other traditional Chinese settings.

Unlike Meta’s ‘Horizon Worlds,’ which is only available to Oculus Quest 2 headset owners, XiRang may be accessed via a smartphone, a computer, or a virtual reality headset. Baidu hopes to encourage creators to develop new activities on its platform in a variety of areas, including gaming, entertainment, education, advertising, and events, by making it easily accessible.

Link: https://www.scmp.com/video/technology/3160931/baidu-unveils-chinas-first-metaverse-platform-xi-rang

What Will Travel Retail Look Like in 2022?

The Chinese Duty-Free Group’s priority in 2022 and beyond will be on finding new ways to deliver more commodities choices to travel retail shoppers.

The travel retail industry should focus on rising market prospects in newly opened duty-free zones including Qianhai Pilot Area, Henan Pilot Free Trade Zone, and Pudong New Area in 2022. To further its retail growth beyond the pandemic, China wants Hainan to become a key holiday destination for both Chinese and overseas visitors.

Link: https://jingdaily.com/china-travel-retail-trends-hainan-shanghai/

What is exactly a metaverse and why does it matter? Report

By the end of 2021, the term “metaverse” had become a buzzword that was all over the news. However, the concept might be perplexing, and different stakeholders will understand it differently. 

Mark Zuckerberg, for example, refers to it as the “embodied internet.”

Although the metaverse is still in its infancy, some existing technologies and platforms already provide many chances for businesses to exhibit themselves there, demonstrating their digital innovation and readiness to interact with users online. Building a 3D presence can also open new revenue streams.

Interoperability, or the seamless connectivity between digital experiences, is a key feature of the metaverse. Closed platforms, on the other hand, are the rule right now.

Link: https://media.monks.com/articles/report-make-sense-metaverse

Who are KOCs and how do you work with them?

KOCs means Key Opinion Customers. Compared to KOLs (Key Opinion Leaders) they are individuals with relatively strong influence over their peers, family, friends and group of potential followers.

Because they are not paid, they are more genuine, making KOC marketing a low-cost marketing method. This means fewer people will see your content, and you’ll have less control over it. You’ll also have less tracking.

 Platforms: Xiaohongshu, Dianping, WeChat, Douyin.
Methods: asking for feedback, personalization, product seeding, live streaming, focus groups. 

Link: https://mp.weixin.qq.com/s/u9IQ3gyL_tR0-COMeniOBw

2021 Top 4 trendy scenarios for brands

  1. Metaverse: As a result of the post-pandemic increased social virtualization, marketers sought out new scenarios to expand their commercial opportunities.

    Xirang (希壤)is the name of Baidu’s social metaverse app. In the app, users can make friends and trade. Xirang will become a major site for life, work, and recreation in the future due to its strategic location. The ambition of Baidu is to become the Metaverse’s infrastructure platform, providing AI, cloud computing, and other technical engines for Xirang and other Metaverse businesses. Xirang’s version number is currently – 6.0, which is still negative after more than a year of development and testing. It’s not ideal, and there’s still a lot of opportunity for improvement. Many brands, including Burberry, Oreo, and OPPO, have developed their own NFT variants.

  2. Outdoor camping: People are increasingly interested in outdoor activities as a result of the disease, and they want to get in touch with nature. According to Alibaba research, the number of reservations for tents and camping on their travel platform surged by more than 14 times month over month
    – CTI magazine worked with Milklad and Red to host a “City coffee camping season” offline event.
    – Adidas teamed up with Camplus, an outdoor lifestyle platform, to host an outdoor hike at the Great Wall’s base.

  3. New consumer brand stores (Concept store or crossover): This type of store helps communicate the brand’s distinct concept to a younger audience.

    – Ice cream brand Zhongxuegao collaborated with coffee shops
    – Coffee brand Saturnbird collaborated with lifestyle brands and organized a pop-up market. It will become a dancing party at night.

  4. Creative Livestream: The brands tried different formats like talk shows or created new formats to attract potential users.

    – Down jacket brand went to Tibet
    – Milk brand showed the audience the cattle on the grassland

Link: https://mp.weixin.qq.com/s/cfi9hkzjXVOs1rJpwMw9-g

Why don’t young people pay for the “internet celebrity brand” anymore?

Last year, an Internet celebrity brand Zhong Xuegao developed a “lixiangguo” dumpling brand. The price of a single dumpling was around 3 yuan, with the hopes of attracting customers’ attention through “high price,” however it had had little success.

Why don’t young people want to pay for the “internet celebrity brand” anymore?

  1. For internet celebrity products, most customers think that the products are expensive. Consumers will choose them because of their temporary popularity, and give them up because of the influence of product quality.
  2. In most cases, High-cost investment and huge risks make brands unbearable. They focus on Marketing which can bring a lot of traffic in the short term, so brands spend money on famous platforms like Douyin, they only pursue marketing and ignore products.
  3. Many internet celebrity products generally have a weak foundation, the team and products are not mature enough and will not be finely operated.

If a wanghong brand wants long-term development, it should pay attention to promoting product design;  it should also pay attention to user experience. Continue to innovate and create new value.

Link::https://mp.weixin.qq.com/s/-J95lxEC7zOS3b-wAI__2A 

 

 

 

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This Week’s China Roundup

December 21, 2021

Insights Report – Leverage China GenZ Consumption Behavior

How can Marketers use these trends?

  • Social: Brands must broaden their brand influence to fulfil the needs of young people who enjoy socialising and building a stronger readiness to share, thus interactive innovative marketing is appropriate
  • Personalized: To better stimulate Gen Z’s attention and readiness to seed material, brands must integrate their interests and hobbies, which is ideal for vertical marketing that blends interests and hobbies.
  • Impulsive Micro-moment: Brands must leverage the power of a strong social chain and community to lead and expedite Generation Z’s purchasing decisions, which is ideal for precision marketing embedded in social occasions or private traffic via WeChat private groups.

Link: https://www.chinatradingdesk.com/post/insights-report-genz-consumption 

 

Could Sustainability Messages Sour Chinese Consumers on Your Brand?

For years, the fashion industry has associated Chinese customers with constant sales growth while also thinking them to be behind the trend in most global sustainability discussions. Luxury and fashion must avoid falling into the trap of “educating” China’s youthful, environmentally sensitive buyers from a condescending, Western-centric perspective.

To compete with the ruthless competition, brands must integrate sustainability messaging with outstanding aesthetics, competitive prices, and impeccable service. Sustainability alone will not be enough.

While 71% of those surveyed claimed they wished to support sustainable products, just 29% actually purchased them. When it came to sales conversions, buyers prioritised good design, long-lasting quality, and overall e-commerce experiences.

Link: https://jingdaily.com/chinese-sustainability-messages-greenwashing-everlane/ 

 

Brands are pursuing sustainability

According to Mckinsey research, over 80% of Chinese interviewees would pay for environmentally friendly packaging. Green buying is popular among Chinese shoppers. As the government promotes the concept of sustainable consumption, brands are paying more attention to it.

In fast fashion, the brands start from the fabric, using degradable materials:

  • Blue skylab (belong to car brand NIO): Used the remaining materials after the car production to make shoes.
  • Timberland: Built a pop-up shop by using the Sugar cane. The pop shop itself and the decorations in the shop were made of sugar cane. They use sustainable and recycled materials to create goods.
  • Adidas: Leveraged the recreation of the old clothes. They invited hundreds of designers and students from art colleges to join the campaign.

In the food and beverage industry:

  • Starbucks: Opened the world’s first environmental protection experimental store in September, the furniture was made by recyclable materials; in the shop, you can see the artworks created by the coffee grounds
  • Jindian (a Chinese famous milk brand): Did a 3 monthly live-stream in Bilibili and invited people to watch the grassland, 
  • Budweiser: Collaborated with the Bilibili’s KOLs and made artworks by grain waste 

Link: https://mp.weixin.qq.com/s/L1K7OHmCQ4vErU9k29mGnA


Douyin launches a graphic plan on the content!

Douyin launched official activities of the images and text. The activity rule is that the creator must release at least three photos with copywriting and include the topic’s hashtag. 

Only creators with less than 10,000 fans are eligible to participate. This is a great option for flat bloggers who don’t know how to make short films but want to show off their douyin skills.

Advantages:

  • It will make it easier for graphic bloggers than short video bloggers.
  • For those who are good at copywriting and pictures, it is very beneficial.

To improve the platform’s content ecology, Douyin wants to draw back some of the most unique and capable graphic KOL from red book. Douyin has also provided specific awards for graphic creators in order to encourage them to be more active. It can be identified and rewarded as long as the image is clear and normal, the text is rich, and the information communicated is useful.

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This Week’s China Roundup

December 16, 2021

Weibo MAU grew to 573 million in Q3 2021

Monthly active users (“MAUs”) on Weibo totalled 573 million in September 2021, an increase of 62 million people year over year. Mobile MAUs accounted for 94% of all MAUs.

In September 2021, the average daily active users (“DAUs”) were 248 million, an increase of 23 million users year over year.

Weibo’s overall net revenues for the third quarter of 2021 were $607.4 million, up 30% from $465.7 million in the same period the previous year.

Link: https://www.chinainternetwatch.com/31281/weibo-quarterly/

 

Top 5 Cross-Border Retail Trends to Watch That Are Captivating Chinese Consumers

No. 5 The ‘Fur Baby’ Boom: Pet owners in China are increasingly viewing their animals as family members. This shift in behaviour has spawned a thriving business that includes anything from luxury pet diets and “smart litter boxes” to cat and dog cosmetic products.

No. 4 Healthy Snacking: From edible cosmetic items to gummy vitamins and individualised dietary-supplement kits, young consumers are driving the growth of a new breed of health-and-wellness consumables.

No. 3 Haircare is the New Skincare: China is the second-largest market globally for the hair care industry after the United States. It will likely grow at a CAGR of 4.9% up to 2025, faster than the U.S. at 3.4%, according to market research company Euromonitor.

No. 2 Ingredient-based Beauty: China’s increasing community of skincare ingredient aficionados, or “skintellectuals,” has opened doors for developing beauty companies like Murad, Obagi, Kate Somerville, and The Ordinary, which focus on effective, high-performance ingredients.

No. 1 Vintage in Vogue: As homebound customers tidy and adopt sustainability, the pandemic has boosted the resale of luxury objects. If the 11.11 shopping festival and Black Friday are any clue, China’s shopping habit is picking up momentum. Since last year, Tmall Global has attracted a number of well-known Japanese luxury resale stores, including Brand Off, Reclo, Daikokuya, and Brandear.

Link: https://www.alizila.com/top-5-cross-border-retail-trends-to-watch-that-are-captivating-chinese-consumers/

 

KAWO 2022 Ultimate Guide to China Social Media

China’s internet penetration is still only 71.6%, compared to nearly 90% in Europe and North America, indicating that there is still room for improvement. The fastest-growing segments were rural users, who saw a 48% increase in internet penetration, and over-50-year-olds, who saw a 5.2% increase in internet prevalence since 2020, with 22 million joining in the last six months.

The targeting choices on Chinese social media platforms are limited, and with China’s new privacy rules, you know even less about your audience. As a result, you may need to make sure that your content strategy includes a variety of information that is tailored to different types of users. Messages that appeal to a middle-class, college-educated city dweller are likely to differ significantly from those aimed to younger consumers in China’s rural areas. Consider building distinct social channels for each of your target audiences.

Virtual Property Tours – 35x increase in VR house tours between agents and prospective buyers on platform Beike VR. The U.S.-centric model of Boomer, Gen X and Gen Y are meaningless in China’s context. Instead, distinct generational groupings are defined with 后 (hòu). The character ‘后’ means “after”. So instead of “Baby Boomers” or “Millennials”, in China we typically talk about generations in decades e.g. “after 90’s”. You’ll even hear people discussing 95后 — or post 1995 — so rapid are the changes!

When you maintain your customers on one platform, their trip will always be easier. However, Taobao links may now be viewed within the WeChat environment, and Taobao has launched a Taobao Feed that can be synced with WeChat contacts to share purchases. 

Neither platform has yet added the ability to accept payment methods from their competitors. Brands in a hurry to avoid being left behind by ‘China Speed’ should remember that China has been a market for thousands of years, and while the channels may have changed, the fundamentals haven’t changed.

Link: https://kawo.com/en/ultimate-guide-to-china-social-media-marketing-2022/pdf-view

 

Opinion: The Digital Revolution, The Metaverse and The Quest For A Whole New Luxury

Online channels influence nearly 75% of all luxury purchases and big and small brands make announcements about diving into the metaverse on a daily basis. There is nothing more exciting to an industry willing to shape every single creative detail that follows a specific aesthetic vision than to be fully immersed into a wonderland of a virtual project, where democratic luxury can develop and expand and there are no limits posed by the rarity of raw materials and human savoir-faire.

The virtual environment offers the impression that every detail of an event can be managed and altered in accordance with the brand’s aims, and that everything can be designed exactly as planned and expected.

The term “Web3” refers to the third wave of internet innovation, which will undoubtedly have an impact on how people live, how brands work on brand awareness and appeal, and, last but not least, how consumers approach the purchasing process.

Link: https://www.luxurysociety.com/en/articles/2021/12/opinion-digital-revolution-metaverse-and-quest-whole-new-luxury?ueid=3a844b2001

 

Brands are pursuing sustainability

According to Mckinsey research, over 80% of Chinese interviewees would pay for environmentally friendly packaging. Green buying is popular among Chinese shoppers. As the government promotes the concept of sustainable consumption, brands are paying more attention to it.

In fast fashion, the brands start from the fabric, using degradable materials:

  • Blue skylab (belong to car brand NIO): Used the remaining materials after the car production to make shoes.
  • Timberland: Built a pop-up shop by using the Sugar cane. The pop shop itself and the decorations in the shop were made by sugar cane. They use sustainable and recycled materials to create goods.
  • Adidas: Leveraged the recreation of the old clothes. They invited hundreds of designers and students from art college to join the campaign.

In the food and beverage industry: 

  • Starbucks: Opened the world’s first environmental protection experimental store in September, the furniture was made by recyclable materials; in the shop, you can see the artworks created by the coffee grounds
  • Jindian (a Chinese famous milk brand): Did a 3 month live stream in bilibili and invited people to watch the grassland, 
  • Budweiser: Collaborated with the bilibili’s KOLs and made artworks by grain waste 

Link: https://mp.weixin.qq.com/s/L1K7OHmCQ4vErU9k29mGnA 

 

McDonald’s sells cat nests, pet economy has become a new traffic password

To receive a limited cat box, go to the McDonald’s app /elemev app and buy the specified set. Officials stated an hour after the event that many seats had been sold out.

There are more brands like McDonald’s that use cat and dog features in their marketing activities: Starbucks cat claw cups, perfect journal, and Li Jiaqi’s dog Never’s animal eye shadow, for example. Pet marketing has given the business a lot of attention.

Why do so many young people adore pets? “Meng” is the answer! According to the 3B concept, brand advertising uses beauty, beast, animal, and baby as methods of expression, which is in keeping with human nature of paying attention to life, making it simpler to attract consumers’ attention and love. 

According to iResearch consulting’s white paper on China’s pet consumption trend in 2021, the pet industry’s market will be close to 300 billion yuan in 2020 and will continue to develop gradually over the next three years.

One of the new features of this years double 11 is the pet economy. The turnover of tmall dog/cat staple food, cat treats, beauty and cleaning items, and other categories exceeded 100 million yuan, according to tmall pet. In this regard, the pet economy has progressively evolved into the mainstream.

Link: https://mp.weixin.qq.com/s/DCz8ryKj3HAiuVgOXocaHA

 

Top 10 online phrases of 2021

China’s language resources monitoring centre has announced the top 10 online phrases of the year 2021.

  • YYDS, the pinyin abbreviation of Chinese “永远滴神”
  • 破防 Something that has breached my defenses, or “this really got me!”
  • 元宇宙 Metaverse
  • 躺平 Lie flat
  • 觉醒年代 The Age of Awakening
  • 双减 Double reduction
  • 绝绝子 Awesome, marvelous, amazing, brilliant
  • 伤害性不高,侮辱性极强 Not harmful, but utterly embarrassing
  • 我看不懂,但我大受震撼 “I don’t understand it, but I was shocked.”
  • 强国有我 Young people are committed to building a stronger China

Link: https://mp.weixin.qq.com/s/bDFGlXuy–lJklXU–RUog

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China Roundup This Week

November 16, 2021

What can Europe learn from China’s live e-commerce boom?

Consumers in the United Kingdom, Spain, France, and Poland expressed interest in live e-commerce for online shopping, with 70% expressing interest. In 2020, Western brands will see 15 times more engagement in live e-commerce than they did on traditional social media, three to five times more sales, and a 50% increase in customer numbers.

If China’s growth trajectory is followed, Europe has the potential to reach over 160 million live streaming e-commerce consumers by 2024, with about 100 million of them making purchases while viewing live feeds.

China is about five years ahead of Europe in terms of economic development. China’s experience may provide us with valuable lessons. It took China a few years to turn live e-commerce into a popular format used by both companies and consumers on a regular basis. Europe is currently in the research and development phase, but we can anticipate some significant changes in style and approach:

 

Link: https://technode.com/2021/11/04/what-can-europe-learn-from-china-livestreaming-ecommerce-boom/ 

 

Can C-Beauty Brands Cultivate Loyal Consumers?

Florasis, which ranked third on Tmall’s “Double 11” best-selling brands list in 2020, has dropped out of the top ten this year. Local beauty brands frequently spend more than 65% of their income on marketing, substantially exceeding the market norm of 30-40%. Although their massive advertising, KOLs, and live streaming budgets quickly generated social buzz and attracted new customers, they failed to maintain user loyalty.

“Through data analysis from ByteDance, we found out that most international companies work on the branding side, while Chinese brands focus more on the performance side,” Hwee Chung, Kantar Worldpanel’s head of the China beauty market, stated. That is, Western brands employ influencers to create a desirable atmosphere around their products in order to attract customers. Domestic brands, on the other hand, use low pricing and KOL promotions to entice customers to buy specific products. R&D and licencing are not addressed by C-beauty brands. Yatsen Group, for example, holds 38 licence patents, but Procter & Gamble files 3,800 licences each year.

Link: https://jingdaily.com/c-beauty-brands-loyal-chinese-consumers/

 

Changing Attitudes Towards 11/11 Shopping Festival?

Despite setting new sales records, Alibaba and other e-commerce companies are keeping their sales figures quiet this year.

Alibaba attempted to rebrand “Double Eleven” as the Chinese government pursued attempts to regulate big digital businesses and wipe out the worst excesses of economic inequality. The company’s annual promotional extravaganza lacked the star power of prior years, with green efforts, homegrown companies, and rural products taking centre stage.

Link: https://www.sixthtone.com/news/1008954/alibaba-tries-an-unfamiliar-new-singles-day-strategy-restraint

 

Douyin City

This is a big IP from Douyin. This offline event was held for three years by Douyin in collaboration with local tourism/brands. Every time they visit a city, they should promote both the place and the companies. They’ve visited over 70 cities, and this time they’re in Sanya. Its goal is to raise awareness of Douyin through various activities such as dreamland, a music festival, and a webcast. People will also learn about the city, where to go, and what distinctive foods they have, among other things. They built six blocks for Sanya’s Dreamland, where players can take on various identities, complete stages, and win prizes.

They used VR, AR broadcast, and the Douyin micro application to create interactive and social situations. People would be able to see brand information through virtual reality and augmented reality interactive experiences. Celebrities and musical KOLs were also asked to attend the festivals. This is a win-win idea for both Douyin and the cities; by uploading short videos with #Dou In the City, KOLs will encourage more people to come and visit. This effort will give the KOLs more exposure.

Link: https://mp.weixin.qq.com/s/Imd1eRm2LYkcR9auoLWXKA

 

Singles’ Day posts record haul despite slower pace, as China’s antitrust moves dampen world’s biggest online shopping event

The world’s biggest online shopping event recorded a slower pace of annual growth after Alibaba Group Holding swapped the usual razzamatazz of Singles’ Day for a more down-to-earth event that stressed sustainability.

The gross merchandise value (GMV) for this year’s Singles’ Day reached a new high of 540.3 billion yuan (US$84.5 billion) across the 11-day campaign, representing an increase of 8.45% year on year. Since Alibaba launched Singles’ Day in 2009, this is the first year of single-digit GMV growth.

  1. This year’s Singles’ Day was weighed down by China’s slowest economic expansion pace in decades, as growth slowed to 4.9 per cent in the third quarter
  2. This year, Tmall issued 100 million yuan worth of ‘green vouchers’ to encourage purchasing decisions that ‘contribute to an environmentally friendly lifestyle’

Link:https://www.scmp.com/tech/big-tech/article/3155762/sales-growth-alibabas-singles-day-drops-amid-chinas-crackdown-big

 

How to Recontextualize Brand Narratives in China

The house’s 70th-anniversary campaign, which featured Max Mara’s iconic Teddy, was a major hit in China, driving organic social traffic to offline footprints.

Image courtesy of Max Mara’s Mini Program.

  1. With a sophisticated understanding of China’s digital ecosystems, Max Mara has successfully built up a content-to-commerce loop.
  2. Luxury brands need to tailor social currency that can be showcased and shared with users’ friends via social platforms, per each campaign’s themes, as well as each platform’s user demographics and capabilities.
  3. Global HQs of luxury brands need to be aware of the uniqueness of China’s ecosystems and allow higher flexibility in experimenting with innovative approaches in the market.

Link:https://jingdaily.com/max-mara-70-anniversary-campaign-china/

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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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Weekly China Insights

October 12, 2021

WeChat Launches Easy Mode for Elderly

The older generation, even though relatively mobile-savvy, faces a lot of challenges when it comes to mobile services, especially those related to COVID-19. By the end of 2020, more than 123 million Chinese netizens were aged over 60, accounting for 12.3% of the overall internet users. We can expect this trend to grow in the coming years.

That’s why the Ministry of Industry and Information Technology ordered 43 of the most used applications to take the lead in adapting to the needs of elderly users – Wechat, Taobao and other apps are launching ‘Easy Modes’ to cater to older netizens.

However, these improvements seem to be rather limited with a focus on bigger fonts and brighter colours instead of simplifying the user journey or incorporating voice assistant. 

Link: https://daoinsights.com/news/wechat-launched-easy-mode-to-target-chinas-123-million-elderly-users/ 

 

Alipay consumption report during National Day holiday

Theme parks are the latest trend: visits soared 936% over the previous month. Fantawild, Disneyland, Universal Beijing Resort, Happy Valley, and Chimelong Resort are the top five parks. Museums, zoos, and resorts were among the top five mini-programs for picturesque areas.

The amount spent in duty-free stores and offline boutiques has surged: in Hainan duty-free stores, the amount spent has climbed by 87%t since 2019. In comparison to last month, the amount spent in boutiques and shopping centres jumped by 40%. Xi’an, Taiyuan, and Zhengzhou, all tier 2 cities, ranked first, second, and third, respectively.

Convenience Store consumption met the peak. Consumption at convenience stores has reached an all-time high. During the holiday, the most popular mini-program was about anti-covid-19, Travel tracking cards; others were about “Order by mobile phone” and Old clothing recycling.

Link: https://mp.weixin.qq.com/s/V_j7k4GjvAUjD-OKmHsj8w 

 

National Day WeChat status

During the National Day holiday, “wishing the motherland” was promoted as the top WeChat status NO.1. The top three are: wishing the motherland, fighting and the unknown.

Wechat status data show that girls love “chilling at home” more and boys “having fun” more. With the decrease of holiday balance, and the set amount of “exhausted” and “worried” is increasing.

More than 3 million WeChat users take more than 30000 steps a day, and more than 4.13 million WeChat users take less than 100 steps a day.

Link: https://mp.weixin.qq.com/s/TtcEqzmS0WTRscFz6wLJ4g 

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This Week In China

September 28, 2021

TikTok limits younger users to 40 minutes a day in China

Following the stepped up efforts to protect minors from the internet’s risks by the Chinese Government, TikTok created a new app for its younger audience. The new app, called Xiao Qu Xing or “Little Fun Star,” offers a personalized feed of short videos in areas ranging from science to literature and art history.

Users are allowed to like clips but not upload or share them. This youth mode limits daily usage time to a maximum of 40 minutes for those aged under 14, while banning them from accessing the app from 10 p.m. to 6 a.m. With this new set of restrictions, Chinese authorities want to tackle addiction to online devices.

Link: https://www.bloomberg.com/news/articles/2021-09-20/bytedance-s-new-tiktok-for-chinese-kids-sets-strict-user-limits

 

China passes sweeping data privacy law, to go into effect Nov. 1

The law, which is one of the most stringent in the world on personal data security, will make it more difficult and expensive for Chinese tech companies to acquire and utilise customer data. The complete wording of the final law has yet to be disclosed, but according to Xinhua, it will provide users the ability to turn off targeted advertising. It could lead to a ban on tailored advertisements.

Link: https://www.cnet.com/tech/services-and-software/china-passes-sweeping-data-privacy-law-that-goes-into-effect-nov-1/

 

You Can Now Use All Links on WeChat!

Tencent said on Friday that users can access external links in the one-to-one chat scene after upgrading to the WeChat latest version of ,  because Chinese industry authorities ordered internet leaders including Alibaba and ByteDance to open up their platforms to each other.

On the premise of ensuring information security, users can access external links in the one-to-one chat and it will also establish an external link complaint portal, which allows users to report illegal external links. Continue to develop group links and provide users with discretion but now Tiktok and Taobao can not jump directly in the service account article.

Tencent also stated that it will actively cooperate with other internet platforms to jointly implement the special guidance of the Ministry of Industry and Information Technology, explore the technical possibilities of smoothly using WeChat services on other platforms, and achieve further interconnectivity.

Link: https://mp.weixin.qq.com/s/2BPntlnbCy-OLeyXzyUSHw 

 

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