Chanel Takes on the Resale Market With One Bag per Person per Year Policy
Chanel limits the number of purchases for its most popular handbags to one of each per customer per year. The move is aimed at preserving the uniqueness of luxury goods, since the resale market has exploded in recent years, with proxy purchasers buying out stocks and diluting the brand experience when reselling to their own clients. Furthermore, China’s second-hand market is expanding.
China is well-known for its vast resale grey market, which is overseen by plenty of daigous. According to BCG estimates, Chinese consumers will spend $35 billion in the global luxury market in 2020, with $28 billion (80%) paid through the usage of a daigou service.
Taobao launches a new feature to embrace Double 11 shopping festival
Taobao launched a new feature called “Planting Grass Machine” 种草机 where users can browse product recommendation reviews that are posted by other users. It’s supposed to help consumers make better consumer decisions based on peer recommendation and it’s supposed to offer more variety of content and reviews than just KOL endorsements.
Any keyword typed in the “Plant Grass Machine” will take the user to a page of relevant lifestyle-sharing content.
Link: https://daoinsights.com/news/taobao-launches-a-new-feature-to-embrace-double-11-shopping-festival/
Double 11 x KOL’s reality show
In China, Livestream shopping has become a new trend, with more and more firms using it to market their products. This year, Austin, a well-known KOL, debuted a reality show called the Girls’ Offer. We can watch the show on Weibo, the Red and Douyin. During the show, we can see how he negotiates the price with the brands (most of them are cosmetics brands) and how the brands react to the challenges.
As the double 11 is coming, this show is like a teaser. The brands can get exposure before the big event, Austin will enhance his image and bring more traffic to his Livestream thanks to his professionality, the consumers can know in advance which brands will have the best offer for them.
Link: https://video.weibo.com/show?fid=1034:4690150597525601
Tencent’s WeChat to stop routinely accessing photos after a tech influencer publicized the behaviour on Weibo
WeChat’s background scanning for new photos was said to run every few hours and found using Apple’s new “Record App Activity” feature in iOS 15. The company said the behaviour will be removed from the app in a future update, but other apps have been found to do the same thing
Background scanning for new photos “will be cancelled in the new version”, a company representative said.
In recent years, China’s big tech businesses have been under increasing pressure to address privacy concerns. In 2019, the Ministry of Industry and Information Technology began checking apps for privacy issues on a regular basis. To date, it has identified over 1,300 apps for having too many permissions, illegally gathering user data, and misrepresenting customers.
LinkedIn’s China retreat stems from regulatory and competitive pressures as local recruitment platforms prosper
The decision comes only two weeks before China’s Personal Information Privacy Law, which is one of the strongest data protection laws in the world, goes into force. In China, where job seekers and professional networkers have a variety of options, LinkedIn had only made a limited impact.
LinkedIn first entered China in 2014, and with its partial exit, it has become the final big US social media company to leave the nation.
Why Brands Need WeChat Index
Based on the official explanation from WeChat Index, there are two main ways:
- Brands can create related content on WeChat, such as WeChat articles, videos, or advertisements, to increase their exposure.
- Brands can improve the quality of content that is related to the keyword.
Brands may assess their level of popularity on WeChat and so determine whether they are top-of-mind for Chinese customers by watching the WeChat Index. Brands may also determine the return on investment of marketing campaigns by comparing their WeChat index records to the campaign dates and determining which days have the highest search volume.
Link: https://www.luxurysociety.com/en/articles/2021/04/wechat-luxury-index-2021-social-commerce
