Keeping Up with China: Latest Market Updates and News

iFlytek demonstrates new AI writing tools based on its own language model, claims it outperform ChatGPT

 

With the release of its own AI language models and associated applications, iFlytek is continuing the contribution of Chinese tech companies to the global AI development initiative sparked by ChatGPT.

An artificial intelligence writing tool called the iFlytek AI Writer aids users in quickly creating articles based on given information and prompts. On May 6, the product had its initial release.

According to the chairman of iFlytek, the model has surpassed ChatGPT in the areas of Chinese long-text generation, medical knowledge, and mathematical prowess but still falls short of ChatGPT in this area.

Three upgrades will be made to the model soon. On June 9, the model will be improved with code and multimodal interaction skills, and on August 15, it will be improved with open-ended question, multi-round dialogue, and mathematical ability capabilities. He added that by October 24 the model will be on par with ChatGPT’s current level in English and surpass ChatGPT’s current level in Chinese.

https://technode.com/2023/05/10/iflytek-demonstrates-new-ai-writing-tools-based-on-its-own-language-model/

 

 

Xiaohongshu tests new feature enabling influencers to add shopping links to posts

 

As part of its push towards e-commerce transactions, Xiaohongshu is enabling a select group of merchants to invite platform influencers to include shopping links when they post recommended content.

Instead of connecting to external e-commerce platforms, the links are directly connected to stores within Xiaohongshu.

In January 2021, the feature was initially accessible to all platform creators, but it was removed six months later due to “unsatisfactory link conversion rates.”

Xiaohongshu, which is frequently compared to Instagram, has been refocusing on e-commerce in recent months. It tested a group-buy feature last month and found success with livestream shopping earlier this year.

https://mp.weixin.qq.com/s/FTb_v-_vYsghkMr454iNtg

 

 

LinkedIn to shut China app, cut over 700 jobs

 

 

InCareer, the Chinese version of LinkedIn, will shut down its job board in August. Thanks to our strong China-based team, InCareer had some success over the past year, but it also faced stiff competition and a difficult macroeconomic environment.

LinkedIn stated in October 2021 that the Chinese-language version of its services would be discontinued due to “a more difficult operating environment” and “greater compliance requirements.”

Instead, the Microsoft-owned company introduced InCareer, a stand-alone employment app. InCareer had 57 million users as of July 2022 and was linked to 875 million members globally via LinkedIn.

700 employees in China will lose their jobs as a result of InCareer’s decision to change its business strategy and assist Chinese companies with recruiting, marketing, and training personnel abroad.

https://news.linkedin.com/2023/may/a-message-from-linkedin-s-ceo

 

 

Dazi culture in RED

 

 

Users of Xiaohongshu list the “professional” connections they require to expand their personal social network beyond simple acquaintances.

Recently, the “Dazi Culture” has become a trend on the internet. Finding a partner for a certain activity or pursuit—be it a study partner, a travel companion, a movie buddy, or a workout partner—is central to “Dazi” culture.

“Da Zi” is a colloquial term for a friendship. They do provide a relationship that people are eager to have, especially when you just want someone to eat or shop with but not share your most private secrets with. Despite the fact that they are not close friends.

“Da Zi” may be the reason why young people associate with one another because they have common interests, taste, or preferences.

The “Voice Live” feature, which focuses on voice social networking and lets users create open rooms and have conversations with random people about a variety of topics of interest, was internally tested by Xiaohongshu in October.
In February this year, 小红书 launched a “group chat” function, continuing to break the reality-based social networking model of acquaintances and connecting strangers by interests.

https://mp.weixin.qq.com/s/rWi4TqsjEsMSXrk7uLMtew

 

 

Balenciaga gives a nod to sustainability for 520 festival

 

 

Balenciaga, a luxury French fashion house, is leveraging Chinese Gen Zers’ growing passion for sustainability in advance of the 520 shopping festival (also known as Internet Valentine’s Day).

Chinese Gen Z consumers’ attention to brands’ social responsibility has emerged as a defining characteristic. With the recent launch of 500 new sustainable products on Tmall Luxury Pavilion, luxury brands have made sure to stay on top of this trend.

Along with the launch of the line, Balenciaga also published an interactive mini-program on the messaging app WeChat. On the microblogging platform Weibo, as of May 10, the hashtag “Balenciaga 520” had accumulated 17 million views.

Balenciaga gives a nod to sustainability for 520 festival

 

 

Chinese Tourists’ Spending In Europe Rises, But Visitor Numbers Remain Weak

 

 

The return of Chinese tourists to foreign countries began closer to home, with Asian locations like Thailand, Japan, South Korea, and Singapore emerging as early favorites, according to data from several Chinese travel agencies. Richer Chinese tourists appear to be among the first to travel back to Europe.

Chinese consumers now pay much more to travel to Europe, and demand is still below pre-pandemic levels. Those who do make these lengthy trips, though, are spending more money than before.

Europe will likely have to wait until the end of 2023 or 2024 to see the return of large-scale Chinese tourism.

https://jingdaily.com/chinese-tourist-europe-spending/

 

 

Lancôme spotlights Chinese ceramics in eye cream campaign

 

 

For the promotion of its Absolute Eye Cream, Lancôme examined the beauty of conventional Chinese ceramics. The campaign uses the restoration of old objects as a metaphor for rejuvenating sagging or aging skin.

Chinese consumers’ desire for goods that honor their country’s rich cultural heritage, both old and new. Foreign brands can take advantage of this trend with clever product design and local partnerships, making it far from the exclusive domain of domestic brands.

According to the study, half of Chinese women between the ages of 25 and 30 use anti-aging products like skin-lifting creams, serums, and eye creams.

Lancôme spotlights Chinese ceramics in eye cream campaign

 

Court Ruling Sparks Debate Over Promoting Work on Social Media

 

 

Luxury brands are embracing the concept of “virtual luxury” more and more in order to appeal to younger, digitally savvy consumers who value sustainability and one-of-a-kind experiences. To engage customers and create fresh opportunities for brand interaction, this entails using virtual experiences and products.

But the question still stands: Is authenticity still important in marketing? While virtual luxury might be alluring in the short term, brands shouldn’t discount the value of authenticity and quality when fostering long-term consumer trust and loyalty.

Given these trends, luxury brands should think about how to strike a balance between the advantages of virtual luxury and the requirement to uphold a strong brand identity and reputation. This might entail coming up with inventive ways to combine tangible goods and services with digital ones, all the while upholding the brand’s commitment to excellence and authenticity throughout.

https://www.sixthtone.com/news/1012863

Checking the performance of prior posts within the last 30 days is now possible in the WeChat backend, which is a new data point available.

Chinese Marketing Updates

TikTok Parent ByteDance Battles Meta for Virtual-Reality App Developers

Developers who created virtual reality software for Meta Platforms are being offered payment by ByteDance Ltd. to port their programs to its rapidly expanding Pico headset line.

After experiencing lengthy delays in receiving distribution approval, some software developers have expressed frustration with the way Meta is reviewing new applications for its Quest headsets. Some developers claim that the business’s procedures lack precise guidelines, leaving them to eagerly anticipate the entry of new rivals. 

ByteDance acquired Pico, a B2B-focused company, in 2021 and changed its focus to B2C. Currently, the Pico 4 headset performs worse than the Meta headset and has a much smaller selection of games (300 vs. 500).

https://www.wsj.com/articles/tiktok-parent-bytedance-battles-meta-for-virtual-reality-app-developers-30ce091f

 

An interesting “mini” marketing strategy for the brand

 

The milk tea company “Diandian” has introduced the Earth Day mini cup to celebrate World Earth Day:

McDonald’s mini cone, DQ mini ice cream, and a Wuling small car that popularized the mini model have all used mini marketing to successfully penetrate various product markets.

Creating products that are larger than conventional, creating visual impact, and raising traffic topics when consumers are tired of brand and product cognition.Meet the market’s demand and expectations for weight loss, lightweight, and burden free products.

For current consumers, lightweight consumption and cute design in various aspects have become undeniable market trends, and product miniaturization is the simplest way to approach the trend.

https://mp.weixin.qq.com/s/R6FoptfmnOiLZPFMTh2uLw.  

 

Galeries Lafayette teams up with Hopson Group for luxury expansion in China

 

The new partnership aims to open ten stores in China by 2025. Future stores will carry independent Chinese designer brands in addition to well-known international ones.  

In order to convey “a certain vision of the French art of living in the heart of unique and selective multi-brand environments,” the joint venture will also concentrate on selling luxury brands in their upscale stores.

Through the partnership, both parties will be able to leverage their individual strengths to build a cutting-edge high-end department store company with a world-class buyer team and cutting-edge supply chain management system. 

Overall, the new partnership between Galeries Lafayette and Hopson Group marks a significant advancement in China’s luxury retail market. 

https://daoinsights.com/news/galeries-lafayette-teams-up-with-hopson-group-for-luxury-expansion-in-china/

 

Rivals Tencent Video and Douyin Reach Content-Sharing Agreement After Copyright Spat

 

Both parties have formally agreed to support content sharing, enabling users of Tencent’s well-known TV dramas to access them through the Douyin app without violating copyright. This is an intriguing development in the competition between China’s video and live-streaming apps, which are increasingly popular among Chinese consumers as tools for shopping and entertainment.

The collaboration may be an example of putting differences aside for the benefit of developing China’s tech and social media sectors. In the long run, it might also draw more users to the platforms.

https://jingdaily.com/tencent-douyin-content-agreement-copyright/

 

How Luxury Brands Are Courting the New Chinese Consumer As Shopping Tourism Resumes

Luxury brands are utilizing a variety of digital strategies, including e-commerce, social media, and live streaming, to connect with China’s extremely tech-savvy consumers. 

Personalized shopping experiences are created by luxury brands in collaboration with travel agencies as part of their key strategy for appealing to Chinese consumers.

By providing immersive, experiential shopping opportunities like in-store events and pop-ups, luxury brands are also leveraging the growth of the “experience economy.”

With features like personalized recommendations and augmented reality try-ons, Alibaba’s Tmall Luxury Pavilion and Luxury Soho platforms are playing an increasingly significant role in connecting luxury brands with Chinese consumers.

Additionally, luxury brands are taking action to address Chinese consumers’ concerns about sustainability and ethics in their marketing and business practices.

https://www.alizila.com/how-luxury-brands-court-chinese-consumers-shopping-tourism-travel-alibaba-lvmh-richemont/

 

10 Fashion Trends on Douyin You Need to Know Today

The speed of change in China is transforming all aspects of society, including the emergence of new cultures, fashion styles, aesthetics, and living standards. Social media has quickly replaced traditional means of brand interaction and shopping in China. Every day, people are exposed to new shopping trends, and KOLs are crucial to setting these trends. 

With 70.2% of the country’s social media users, Douyin, China’s version of TikTok, is one of the most well-liked social media platforms in China.  The audience consistently follows any new fashion trends that become popular on Douyin. Today, surely it’s the best platform to observe new emerging trends among Chinese Gen Z and youth. 

A few weeks ago, we shared with you the latest post on:

🔥 Douyin (China’s TikTok) Statistics 2022 [UPDATED!]

Let us share with you the key findings from the ‘2022 Douyin E-commerce Top Ten Trends and Life Trends Report‘ published by Douyin. These are the top fashion trends on Douyin that have drawn so many users in 2022. Explore them and perhaps experiment and try to include them in your China strategy. 

Before we dig into it, make sure you check How Douyin is Different From TikTok as these two are not the same.

Trend One: Stay away from cities

Glamping China

ⓒ Lucija Mica

Glamping has emerged as one of the most talked-about topics in 2022, with 42.2% of Douyin users citing outdoor activities as a way to unwind. For example, the younger generation that is interested in fashion is accustomed to sharing their glamping attire and experiences on Douyin. There are currently 1,300 million people who travel and engage in outdoor activities. The outdoor market is predicted to generate 240 billion CNY in profit by 2025. This demonstrates the potential market for outdoor products in China.

 

Fashion Trend Two: Street Shooting

Street Style China

ⓒ Sane Sodbayar

The new Generation-Z is excellent at finding those off-the-beaten-path shooting locations. Think a small shop or a narrow street close to home. They enjoy taking pictures in the hot spots to document their sense of style and post them on Douyin. In order to display confidence and a positive outlook on life, people are more interested in street photography and fashion pairings. Over 122 billion streams are focused on the street shooting on Douyin. As a result of this development, 30.6% of Douyin users are discovering new stores in their daily lives and sharing their outfit pictures taken from there. For this street photography trend, 63% of those individuals favor a simple outfit, followed by modern style (43.6%) and romantic style (42.9%).

 

Fashion Trend Three: Staycation

Staycations are now a popular option for the younger generation in China. Therefore, they want clothing that is stylish when they go out and comfortable at home. During the weekends, 27.4% of Douyin users prefer to stay home. Within that group, 89% of people are wearing homewear, and more than 45% have more than three different home wears. Feeling comfortable and casual has become a hot topic for the staycation lifestyle.

 

Fashion Trend Four: Sustainability

The younger generation has begun to show a greater concern for the environment, and sustainability is currently on trend. 29.9% of Douyin users pay attention to environmental protection. They are in favor of living sustainably and are ready to pay more for those goods. The new generation is becoming more and more accustomed to minimalism. Green fashion is a new trend that makes use of sustainable materials and natural plants.

 

Fashion Trend Five: China-chic

Guochao

ⓒ Dan Ma

The new generation has a stronger sense of patriotism than ever before, which has increased the local culture’s visibility. Gen-Z believes that local culture and brands should become the new standard in fashion and highly recommends them in Douyin. 30.8% of Douyin users support national goods and value Guochao culture. Users of Douyin favor Chinese- and Guochao-style clothing for a variety of reasons, including:

  • People are recognizing traditional cultures.
  • Combining traditional and modern elements looks good.
  • A popular global fashion trend is emerging from a Chinese design.
  • Affordability and high quality

As Guochao draws more attention, premium designs start to emerge in order to satisfy the young generation’s demands for fashion.

🇨🇳 We covered guochao recently on our blog. 

Fashion Trend Six: Office Outfit

Fashion China

ⓒ Juhno

Gen-Z likes to express their personality in their daily life through working outfits. The videos about work attire have been viewed more than 2 billion times on Douyin. 35.3% of Douyin users believe people should pay attention to what they wear on professional occasions. Sales of professional attire are predicted to grow by 4-5% annually until 2025 when they will total 167 billion CNY. The simple yet sophisticated design is now the norm for business settings.

 

Fashion Trend Seven: Retro

Users have watched videos on vintage style more than 11 billion times. The nostalgia wave has once more broken, thanks to Generation Z. The new standards for this new trend are now Hong Kong and Y2K fashion. Therefore 32.7% of users on Douyin are becoming more and more interested in nostalgia, collecting antiques, and occasionally willing to try out vintage clothing. The 80s and 90s fashion trends have been revived once more.

 

Fashion Trend Eight: Street Fashion

The new generation wants to express themselves in a novel way by fusing music, skateboarding, and other subcultures. 30.4% of Douyin users support using street culture as a form of self-expression. Street fashion found a new market niche thanks to rap, hip-hop, and new fashion brands among the younger generation. For example, the most popular theme for street fashion in 2022 will be oversize. Newer increasingly drawing more and more attention to it.

 

Fashion Trend Nine: Fitness Outfit

Yoga China

ⓒ Stephanie Green

With everyone becoming more concerned about their health, gymnastics-related topics have grown in popularity, gathering 15.8 billion views on Douyin. Working out while wearing a cute outfit has become mandatory for the younger generation. 45.2% of Douyin users recognize the importance of their health and insist on exercising every day. Fitness topics are currently very popular, especially when it comes to permeability and other useful features. Hence, the technologies of the materials, such as keeping warm, windproof, quick-drying, shaped, and so forth, have advanced quickly as well.

 

Fashion Trend Ten: Manga

The younger generation doesn’t hesitate to express themselves; they want to flaunt their comic book attire in public. 10.8% of Douyin users are open to accepting JK and are interested in the ACGN culture. Similarly, more than 86 billion times have played Lolita, cosplay, or other related games on Douyin. The hottest topic in the dimension world will soon be “genderless.” The genderless fashion trend, which combines sweetness and masculinity, has gained popularity since 2021.

 

Douyin Fashion Trends – Conclusion:

In the era of the Internet, consumers are playing an active role in creating new trends. Social media platforms also set the bar for fashion statements. To stay relevant with peers, people follow trends on social media sites like Douyin on a daily basis. 

Above all, understanding the popular fashion trends among potential customers is a great way to comprehend them and their needs. If you already have your Douyin strategy in place check out our article on advertising on Douyin to reach even more consumers. 

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