Delving into the Chinese Market: Recent Advancements

August 28, 2023

  1. As people spend less on real estate and more on travel, tourism in China to grow faster than its GDP

  • The tourism industry, hit hard during the pandemic, has emerged as a rare bright spot since the country reopened its border in December.
  • For the whole year, domestic tourist traffic is expected to reach an estimated 4.5 billion, roughly 76 per cent of the levels in 2019.
  • The surge in earnings was mostly attributed to domestic consumption, with overseas travel by Chinese tourists recovering only to 40 or 50 per cent as airline capacity hasn’t fully recovered (international airline seat capacity only recovered to around 37 per cent of pre-Covid levels by April this year).
  • Still, mainland China is the world’s largest outbound travel market, both in terms of the number of trips and total spending.
  • One of the most important [consumption] trends is that big-ticket and mid-market purchases are becoming more limited.
  • People are switching their spending habits from buying expensive products to paying for experience-type consumption.

Link: https://www.scmp.com/tech/big-tech/article/3232185/chinas-tourism-grow-faster-its-gdp-people-spend-less-property-more-travel-tongcheng-executive-says

 

  1. Xiaohongshu finds success with soft-sell approach, increases focus on livestreamed e-commerce: report

  • The number of brand merchants selling on Xiaohongshu more than doubled from March to May this year compared to a year earlier.
  • While safeguarding its community content ecosystem remains a priority, Xiaohongshu has kept a quiet eye on the evolving e-commerce arena in recent years. The platform had elevated livestreaming operations to a standalone division, a move that centralized the oversight of live streamed content and e-commerce activities.
  • Promoting purchases through high-quality posts and live streamed content seems to be a more fitting growth model for Xiaohongshu’s e-commerce effort.
  • Xiaohongshu places less emphasis on fan numbers when seeking hosts, but instead appreciates those with aesthetic sensibilities or professional capabilities in certain fields.

Link: https://technode.com/2023/08/23/xiaohongshu-finds-success-with-soft-sell-approach-increases-focus-on-livestreamed-e-commerce-report/

 

  1. Taobao to arm apparel retailers with AI technologies

  • Alibaba-owned e-commerce platform Taobao has unveiled two AI-powered tools: “AI-assisted outfit pairing” and “AI fitting room” designed for its apparel merchants. The announcement was made at the 2023 Taobao Fashion New Force Week Press Conference which was held in Hangzhou on 10 August.
  • On top of revealing the seven 2023 Autumn/Winter fashion trends, which are “Sweetheart Barbie Style, New Vintage, New Chinese Clothing, Fashionable Bookworm, Lightweight Outdoors, Street Dopamine, and Quiet Luxury Style”, Taobao also introduced three schemes that will aim to drive growth for retailers in the fashion clothing sector.

Link: https://daoinsights.com/news/taobao-to-arm-apparel-retailers-with-ai-technologies/

 

  1. Are love-themed shopping festivals losing their appeal in China?

  • Baidu search results show Qixi-related searches during the pre-festival run-up period declined to almost half of last year’s volume
  • Given Qixi’s importance in previous years, however, the major decline in searches remains significant. In 2022 , Qixi was the fourth “hottest” marketing festival.
  • When taken together with recent data from Valentine’s Day and 520 (May 20, “Internet Valentine’s Day”), the dip in Qixi buzz this year could indicate a larger decline in the popularity of the “romance economy” among Chinese consumers. 
  • It is too early to tell if this year’s figures indicate the beginning of a long-term shift in the importance of love-themed shopping festivals, though waning enthusiasm for shopping festivals certainly fits the post-pandemic phenomenon of sustained rational consumption.

Link: https://daoinsights.com/news/are-love-themed-shopping-festivals-losing-their-allure-in-china/

 

  1. Douyin: 2023 Travel Industry White Paper

  • Short video platform Douyin (the Chinese version of TikTok) released a report this June, looking at trends in travel content and users who are interested in travel, in the first three months of 2023
  • In the first three months of 2023, Douyin saw an increase in searches for travel-related content of more than 300%, compared to the same period one year earlier. The number of travel KOLs on the platform also increased significantly year on year
  • According to the report, 407 million Douyin users are interested in travel, a year-on-year increase of 13%. The majority are women, with millennials accounting for the largest demographic, followed closely by Gen-X. Previously, Douyin was known as a platform with a particularly high post-90s user base, so it’s interesting to see how broad the age range of users is now, as it relates to travel
  • Among the top 10 travel destinations by search volume in Q1 2023, the only one outside of China is Iceland

Link: https://dragontrail.com.cn/resources/blog/douyin-2023-travel-white-paper?mc_cid=a3698cb19a 

 

  1. Japan bets on WeChat to hook Chinese tourists

  • As Japan’s inbound tourism continues to fall short of pre-pandemic levels, the Japan National Tourism Organisation (JNTO) is seeking a new way to generate interest among its main group of visitors.
  • Japan launched a new mini-program called 观美日本(“Appreciate Beautiful Japan”) which functions as a mobile catalog of products and experiences available in Japan, displayed in a vertical feed with images as the focus, similar to an Instagram or Xiaohongshu feed.

Link: https://daoinsights.com/news/japan-bets-on-wechat-to-hook-chinese-tourists/ 

 

  1. An A to Z guide to China’s ‘core’ fashion trends

  • American retrocore, a distinctly American aesthetic has taken off in China, and it’s giving “popular kid on campus” vibes.
  • Asian baby girl, false eyelashes, dyed hair, tattoos, and rave clothing are the hallmarks of the ABG look. the aesthetic has grown into a global subtrend, with the hashtags “ABG girl” and “ABG makeup” (#ABG女孩 and #亚裔辣妹妆) on Xiaohongshu accumulating over 7.2 million views and 230 million views, respectively. 
  • Barbiecore, on Xiaohongshu, the hashtags “Barbie outfits” (#芭比穿搭) and “Barbie makeup” (#芭比妆) have 21 million and 10 million views, respectively. More here. 
  • Cleanfit, Similar to city boy, the cleanfit trend also relies on muted colors and minimalist designs. Dopamine dressing, As its name suggests, this trend is all about boosting one’s mood through bright, fun apparel. R
  • French girl, Chinese fashionistas fatigued by lockdowns or simply yearning to be transported to the city of love have turned to retro, floral dresses for comfort. 
  • New Chinese style, Chinese fashionistas are also putting their own aesthetic on the world stage, giving traditional cultural clothing a modern twist. 

Link: https://jingdaily.com/gen-z-core-fashion-trend-guide/ 

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WeChat: Navigating Professional Networking Beyond Borders

August 24, 2023

In the realm of professional networking, the emergence of WeChat as a alternative to LinkedIn in China warrants a closer examination. This shift reflects not only the distinctive characteristics of each platform but also the unique landscape within which they operate. As aspiring professionals and seasoned experts seek avenues to foster meaningful connections and career growth, the insight into this phenomenon becomes essential.

LinkedIn and its Limited Footing in China

LinkedIn, the globally recognized professional networking giant, has experienced a contrasting reception in China compared to its stronghold in the Western world. It’s crucial to recognize that LinkedIn never gained the same level of popularity among professionals in China as it did elsewhere. The intricate interplay between cultural preferences, local networking norms, and governmental regulations has shaped this distinct dynamic. In addition, China’s authorities have intermittently restricted access to LinkedIn, rendering it a less accessible option for professionals seeking to build connections and explore job opportunities. 

In 2021, LinkedIn announced that it won’t support user-generated content and user interactions on its Chinese version. Consequently shutting down all networking functionalities of the platform. These changes resulted in LinkedIn China transforming into InCareer – a job board website. Due to the platform difficulties in the local market, InCareer shut down in August 2023.

🔍 Top 5 alternatives for LinkedIn in China you need to know now

 

WeChat’s Emergence as an Alternative

Against this backdrop, WeChat, the multifaceted social media platform created by Tencent, has risen as a compelling alternative for professional networking in China. Several factors have contributed to WeChat’s ascendancy in this sphere. WeChat boasts a substantially larger user base in China compared to LinkedIn, thereby offering professionals a more expansive network to tap into. This inherently larger community fuels interactions, conversations, and the sharing of industry insights, creating an ecosystem conducive to networking.

Firstly, one of WeChat’s defining strengths lies in its diverse array of features tailored to professional networking. Individuals can join specialized WeChat groups aligned with their industry or interests, fostering connections and knowledge exchange. Secondly, WeChat has integrated a job search function within its platform. It’s efficiently facilitates direct job applications and making the process more streamlined.

Moreover, WeChat’s emphasis on mobile integration aligns seamlessly with the dynamic lifestyle of professionals in China. This mobile-centric approach allows users to connect, engage, and nurture relationships. All of that on the move, without being tethered to a traditional desktop platform. 

 

Crafting a Robust Networking Ecosystem

Most of interaction, both personal and professional, takes place on WeChat. Therefore this shift toward WeChat as a primary platform for professional networking underscores the platform’s versatility and adaptability. For aspiring professionals and seasoned experts alike, nurturing an effective networking ecosystem entails a strategic approach. 

In a professional environment, it’s natural that business partners will add each other on WeChat. More and more often this includes WeCom previously known as WeChat Work. In a world perpetually in motion, WeChat’s mobile-centric model resonates with the fast-paced nature of professional endeavors. Fostering connections through brief interactions, quick updates, and timely responses can be instrumental in maintaining a robust network.

💼 WeCom: The Essential Chinese Business Communication Tool for the Online Era

 

Leverage WeChat Groups

WeChat’s group feature transcends conventional networking by allowing professionals to immerse themselves in specialized communities. Engaging in relevant groups can provide insights, spark discussions, and lead to valuable connections. Navigating this landscape requires a discerning eye to identify groups that align with one’s career trajectory and aspirations.

🤝 WeChat with its different function is a great tool for B2B lead generation

 

Capitalize on Job Search Functionality

Last but not least, WeChat’s embedded job search feature merits exploration. It exemplifies the convergence of networking and career advancement within a single platform. Job seekers can navigate openings, apply seamlessly, and potentially expedite their journey toward new opportunities.

 

Navigating the Landscape

While LinkedIn remains a pivotal player in professional networking globally, the WeChat phenomenon in China provides a valuable lesson in adaptability and embracing platforms that align with the local landscape. As professionals seek to cultivate meaningful connections and unlock new horizons, understanding the nuances of these platforms becomes paramount. As a result, it is imperative to impart the wisdom of informed decision-making and recognize that different environments demand tailored strategies. In this ever-evolving landscape, the path to success lies in the harmonious interplay of platform functionality, cultural dynamics, and individual aspirations.

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Diving into China’s Market: Recent Developments Unveiled

August 21, 2023

1.Tencent to introduce a proprietary artificial intelligence model later this year:

  • Tencent believes the AI model will rank among the finest in China.
  • Tencent has been conducting tests on its large language model named Hunyuan on services such as cloud computing, search, gaming and financial technology. It also anticipates being able to use the technology to boost its advertising and marketing efforts.
  • Martin Lau, the company’s president, said the LLM stands as one of the foremost foundational models developed in China.
  • Tencent is making continuous efforts to upgrade and refine the model for a prospective launch in the latter part of this year.

https://www.bloomberg.com/news/articles/2023-08-16/tencent-says-ai-model-coming-this-year-is-among-country-s-best#xj4y7vzkg

 

2. Chinese Officials Meet Foreign Firms to Ease Data Law Fears:

  • China’s internet regulatory authority is engaging with foreign companies, including Walmart and PayPal, to discuss strategies for navigating the new data-security regulations imposed by Beijing.
  • This effort aims to reassure multinational corporations that have concerns about their operations within the country under the latest regulatory framework. Officials from the Cyberspace Administration of China had held meetings with executives from numerous international companies to address concerns related to the upcoming implementation of the new data regulations by the November deadline.
  • The regulators fielded queries, provided guidance on how to adhere to the regulations, and acknowledged the complexities associated with obtaining approvals for cross-border transfers of sensitive data. One of the sources mentioned that discussions included the possibility of establishing an expedited approval process for routine data transfers and the potential creation of a curated “white-list” that categorizes data types or specific companies.

https://www.bloomberg.com/news/articles/2023-08-17/chinese-officials-meet-with-foreign-firms-to-ease-data-law-fears#xj4y7vzkg

 

3. Alipay declares live commerce ambitions in pre-IPO growth chase:

  • Alipay is taking steps to monetize its 1 billion-strong user base by doubling down on live-streamed e-commerce, a route taken by many other Chinese platforms with vast user pools.
  • The fintech giant also announced an updated international version of Alipay on Thursday that promised to make it easier for foreign visitors to China to use the digital payment service using Visa, Mastercard, and other major credit cards.

https://technode.com/2023/08/18/alipay-declares-live-commerce-ambitions-in-pre-ipo-growth-chase/

 

4. WeChat has added a photo modification function

The modification rules are as follows:

1, an article or only one chance to modify, previously was a maximum of 20 words can be modified, now is a maximum of 20 words + a maximum of 3 pictures;

2, each picture can only be replaced or deleted;

3, if there is no picture in the original text, then you can not add new pictures after the group;

4, the first picture of the picture message and the pictures of the advertising article are not supported to modify;

5. Historical articles support picture modification, but historical articles that have been modified once cannot be changed again.

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

 

5. China declares Aug 15 ‘National Ecology Day’, unlocking new avenues for eco marketing

  • China has officially declared August 15 as National Ecology Day, a move intended to recognise the nation’s remarkable progress in ecological conservation while reaffirming its commitment to preserving its natural resources for the betterment of future generations.
  • China’s ongoing dedication to ecological conservation ties back to its ambitious goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.
  • Experts believe that National Ecology Day not only heightens ecological awareness within China but also offers an opportunity to showcase the nation’s progress in ecological civilization to the global community.
  • From a marketing perspective, China’s latest environmental holiday presents a unique and timely opportunity for businesses to align their marketing strategies with the nation’s growing emphasis on ecological conservation.

https://daoinsights.com/news/china-declares-aug-15-national-ecology-day-opening-doors-to-green-marketing/

 

6. From Kering to Zegna: How brands can use AI to supercharge luxury shopping

  • Generative AI technology has the potential to transform various customer touchpoints, such as e-commerce sites, targeted ads, and in-store experiences.
  • In China, 24/7 customer service already exists, but much of it relies on human agents. However, with the automation capabilities of AI, tasks traditionally handled by humans can now be automated.
  • Zegna announced the release of the Zegna X (AI-powered shopping customization tool) configurator in March 2023.
  • Kering has introduced “Madeline,” it goes beyond merely suggesting products and provides additional information about fabric details, product origin, and care instructions.
  • European retailer Zalando is developing its own fashion assistant to provide tailored product recommendations accordingly.

https://jingdaily.com/luxury-brand-shopping-ai-kering-zegna/

 

7. Qixi, ‘China’s Valentine’s Day,’ is here: Which luxury campaigns are pulling at our heartstrings?

  • China’s Qixi Festival, a love-themed shopping event and Chinese Valentine’s Day celebration, is happening on August 22. Luxury fashion brands are creatively embracing the traditional festival to engage consumers.
  • Qixi, also known as Chinese Valentine’s Day, boasts a history of over two millennia in China. Unlike other love-centric shopping events such as Valentine’s Day in February or 520 Day in May, Qixi is steeped in ancient Chinese mythology. This presents brands with a unique chance to forge cultural ties that resonate with the contemporary guochao sensibilities of younger consumers.
  • Luxury brands like Valentino, Balenciaga, Ferragamo, and Prada are curating special collections for Qixi 2023, mixing iconic items with new or limited-edition products.
    • Valentino’s campaign focuses on the #VLogoforLove selection, including handbags, accessories, and footwear, accompanied by videos showcasing different forms of love.
    • Balenciaga’s campaign centers around streetwear with embroidered heart motifs, featuring real-life couples photographed in the series on the streets of Shanghai.
    • Ferragamo’s “Game of Love” campaign draws inspiration from mahjong tiles, using symbolic elements to represent love, and features a video with actors Yang Zi and Jiang Qiming.
    • Prada’s Qixi-inspired collection includes bags, accessories, jewelry, and fragrances, with a poetic video campaign starring Tan Jianci and Li Wen.

https://jingdaily.com/china-qixi-valentines-day-2023-ferragamo-prada-balenciaga-valentino/ 

 

8. From Pink Fashion to Mythical Literature: How “Barbie,” “Fengshen,” and “Chang’An” Are Shaping China’s Consumer Trends

  • China’s cinematic world is not just lighting up screens but also sparking new consumer trends. With summer blockbusters including Barbie, 30,000 Miles from Chang’an, and Fengshen, among others, moviegoers are bringing their love for these films into their lifestyles, driving a surge in related products.
  • A Colorful Wave Inspired by Barbie. The trend swept across various fashion products, ranging from camisoles and dresses to wide-leg pants and earrings. The appetite for pink-themed products soared, with growth rates varying from an already impressive 156% to an astounding 1,055%.
  • Literary Influence of Chang’an and Fengshen. The historical charm of Chang’an and the mythical allure of Fengshen had an unprecedented impact on book-related products. Searches for titles including Li Bai and His Friends, Fengshen Bang, and Chang’an Ke, soared by YOY increases ranging from 103% to 745%.
  • According to data from the National Film Administration, China’s total box office revenue for July 2023 reached an impressive 8.716 billion yuan, marking a substantial 25% increase compared to the same period in 2018.

https://jdcorporateblog.com/jd-report-from-pink-fashion-to-mythical-literature-how-barbie-fengshen-and-changan-are-shaping-chinas-consumer-trends/

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From Gurus to Game-Changers: Embracing Key Opinion Professionals in Content Marketing

August 16, 2023

Influencer marketing is one of the pillars of communication strategies for all brands wishing to make their footprint in China. These influencers referred in China as KOLs, or Key Opinion Leaders, are individuals who have established themselves as experts or influential figures in specific industries or fields, particularly in the realm of social media and digital marketing. They have amassed a large and engaged following on platforms like Weibo, WeChat, RED,  Douyin (the Chinese version of TikTok), and other social media channels. KOLs hold significant sway over their followers’ opinions and purchasing decisions. Their presence is crucial for brands looking to market their products or services to a Chinese audience. We wrote more about idol economy and who KOLs are on our blog.

💄 Discover more about RED and RED marketing

But in the fast-paced world of digital marketing, a new breed of influencers is capturing the limelight and revolutionizing the way brands connect with their audiences. Today we’ll introduce you to Key Opinion Professionals (KOPs), how they are transforming content marketing, and why brands are swooning over their compelling charm.

Meet the Trailblazers: Key Opinion Professionals (KOPs)

Emerging from the domains of influencer marketing, KOPs offer a novel vantage point within the realm of content marketing. Contrary to KOLs, this type of content creators offer a profound exploration into their specialization, unique knowledge, and entrancing revelations.

They are not your typical influencers, by any means. Usually, KOPs boast a high education and a wealth of experience in their chosen fields. The internet age has turned them into digital artisans, sharing their wisdom through captivating visuals and videos. They entice both devoted fans and new consumers looking for professional opinion.

Chinese consumers highly rely on word-of-mouth when buying a product. They are greatly influenced by recommendations from people they are following on social media. In 2022, 86% of Chinese users visited different online communities to search for related product offers before placing order. This all to reduce potential risk and dissapointment. However, consumers are aware of professionalization of KOLs therefore they start to seek advice from experts in their respective fields.

🇨🇳 Different types of Chinese consumers: Silver Generation

KOPs – Unlocking the Secrets of Vertical Content

Naturally, KOL and KOC tend to emphasize their personal experiences and highlighting advantages of the products often supplied by brands. Unlike KOLs’ broad viewpoints and KOCs’ personal experiences, KOPs take users on an discovery ride through the vastness of their respective vertical knowledge in fields considered relatively niche.

They often represent the industries such as health, technology, engineering, or even law. They dissect product formulas, decode compositions, and unravel the mysteries of consumers’ favorite goods. All of that with the precision and thoughtfulness of seasoned experts. Their professional knowledge comes from years of education and experience. That’s why they possess such ease and confidence in discussing matters that won’t be possible to discover by KOLs. 

Examples of KOPs

KOPs

罗翔 is a law professor at People’s University of China, with 28.5 million followers on Bilibili, he shares deep insights about law, and he also makes content about how ordinary people can live a better and more meaningful life with more understandings about law. He also makes content about philosophy and book reviews.

王德峰 is a philosophy professor at Fudan University, equipped with vast range of knowledge in philosophy, art and music. His unique and interesting way of delivering Chinese and western life philosophy had great impact on young users.

武志红 is a psychologist and a best seller writer, has made his fame publishing several best seller books including the controversial 《巨婴国》The Country of  Giant Babies. Active on Chinese social media, he often shares his take from a professional psychologist POV on recent society affairs.

Key Opinion Leader KOPs

尹烨 is the CEO of 华大集团BGI（a pharmaceutical company), graduated from Columbia university with a PHD, he specializes in life sciences and he has made his appearance on several popular interview shows which attracted huge attention, then he started his own social media channel and is now making content mostly about science, technology and biology.

With more than 30 million followers on douyin, 虎哥说车 mainly creates interesting and insightful content about cars, he started in video sector very early on and has constant resources to controversial cars.

KOPs – Why Brands Fell in Love?

Even though most of KOPs started posting online out of willingness to spread their knowledge, brand quickly took notice. In a world where cautious consumers rule the roost, KOPs are the superheroes that brands crave. 82% of consumers meticulously scrutinize products before purchasing, seeking safety and efficacy. KOPs enter the spotlight with their arsenal of professional insights and authentic recommendations. Effectively, they can be the element that make the difference and seal the deal in the ever-growing decision-making process. For example, beauty brands can work with skincare doctors or chemists to discuss product formulas and give their recommendations based on ingredients used. B2B brands are also more likely to work with KOPs than KOLs due to the nature of their offering. 

 

Unleashing the Power of KOP, KOL, and KOC

The secret formula to content marketing success is the mighty combination of KOL, KOC, and now KOP. When these forces unite, brands can increase their share of voice and captivate users across multiple platforms.  KOLs reach their mass audiences and KOCs add their flair with personal touchpoints, while KOPs help users to confirm their purchase decision with authoritative product endorsements.

 

Conclusion

While KOP marketing is a relatively new concept. However it’s surely a much needed phenomenon in the highly saturated influencer industry. Consumers seek for more authenticity and reliable source of information. KOPs with their mastery of vertical expertise, combined with the allure of KOLs and the authenticity of KOCs, makes for an unbeatable trio. As consumers increasingly seek genuine recommendations and professional knowledge, KOPs are soaring high as trusted beacons of influence. In the coming years, we will surely see more and more influencers wearing lab coats and other professional attires populating feeds of the top Chinese platforms. 

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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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Unleashing the Pulse of China’s Market: Updates and Breaking News.

August 2, 2023

 

  1. JD launches vertical AI model, targets retail, finance and education sectors:

  • Context: Beijing currently is home to approximately half of the more than 80 large models available in China
  • JD on Thursday introduced its own large AI model ChatRhino. Positioned as a vertical AI model that offers industry-specific use cases, JD’s AI offering arrives a few months later than rivals Alibaba and Baidu. 
  • Why it matters: JD is the latest Chinese tech major attempting to upgrade its offerings with AI and large models. The company said ChatRhino combines 70% generalized data and 30% native intelligent supply chain data, targeting a number of sectors including retail, finance, education, and government.  
  • Details: The company has already utilized the AI model to enhance customer service, facilitate code writing, and improve product recommendations, she added.

JD’s healthcare unit also unveiled a specialized model designed for the medical industry that is capable of quickly adapting and learning from various healthcare scenarios, which will serve as a technological foundation for remote medical services. The e-commerce giant also showcased its ambition to develop humanoid robots, which will be a key exploration direction for the JD Explore Academy.

LINK:
https://technode.com/2023/07/14/jd-launches-vertical-ai-model-targets-retail-finance-and-education-sectors/

 

 

 

2. Baidu AI products overseas

 

The AI social products “SynClub” by Baidu have recently been introduced in Hong Kong, China, Japan, and other countries. This product uses the latest AI technology of Baidu, so that users can know their own AI friends, and through the company of AI friends, users can chat more interestingly and in-depth.

 

3. The “channel retrieval” feature was introduced by the channel.

 

On July 12, the channel launched the “channel retrieval” function for the certification body to support the recovery of the lost agency authentication channel.

It is understood that “channel retrieval” refers to the channel that has completed enterprise and institutional certification or main body verification and can initiate the channel retrieval process and re-operate the channel after the platform verifies the authenticity of the main body.

In the process of initiating the retrieval, it is necessary to pay attention to the following two points: First, the initiator has not created a channel, and it is necessary to use a wechat signal that has not created a channel to initiate the retrieval process. Second, the account must be in normal use, and the account that has been cancelled, blocked, or banned cannot be recovered.

 

 

 

4. Users of the Meituan app can now record and upload brief videos.

 

Meituan has unveiled a new feature on its app that now allows users to shoot and upload short videos. The addition of this feature provides users with more creative ways to engage with the platform and record their experiences.

Meituan’s latest move comes amidst the intensifying rivalry with Douyin within the online local services industry.

The food delivery giant has also made moves to shake up the live-streaming business by hosting more live-streaming events, including monthly live streams on the 18th of each month since April, where participants are offered coupons.

In addition, the company launched its very own platform, Meituan Live, which is currently only visible to a select group.

Meituan continues to evolve as a multifaceted platform in order to stay competitive in the market

LINK: https://daoinsights.com/news/meituan-app-now-supports-users-to-shoot-and-upload-short-videos/

 

 

 

5. China’s newest beauty retail battleground, Douyin, was won by L’Oreal by 1 billion RMB.

 

L’Oréal topped a ranking of brand sales in the first half of the year, hitting a GMV of 1 billion RMB 

Douyin is the nation’s newest retail battleground, and international brands are actively fighting to grow their market share for Gen Z

Social platforms like Douyin are becoming pivotal channels for brands to close the loop in digital commerce

L’Oréal collaborates with roughly 800 to 1,500 Douyin KOLs every month, ranging from mega influencers with over 5 million followers to small-to-medium key opinion consumers

LINK:
https://jingdaily.com/loreal-douyin-china-newest-beauty-retail-battleground-billion-rmb-gmv/

 

 

 

6. Three New WeChat Advertisement Products Online Now

 

Moments Ads brand gallery: advertisement is WeChat’s first vertical multi-screen display advertisement. It supports 3-5 vertical screen video cards displayed at the same time, and the new method of display brings an eye-catching visual experience by creating a high-level window texture for the brand and enhancing the user’s memory of the brand.

WeChat Channels Carousel Ads: advertising supports 3-5 components, which are displayed on large tiles throughout the process. Different cards can be diverted to different official mini programs or different pages of mini programs, or they can be turned to native pages and H5. 

WeChat Search: discovering brand surprises through WeChat Search and finding beautiful gifts for their loved ones for Qixi Festival

LINK:

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

 

 

 

7. Translation vs Transcreation: which one is the right choice?

 

When expanding a business to a new country with linguistic and cultural differences, it’s crucial to ensure that the brand’s message and identity are accurately conveyed to the new audience.

Translation is the process of converting text from one language to another while preserving the original meaning, making it suitable for more literal texts. Transcreation, on the other hand, is a creative approach that adapts the message, cultural nuances, and persuasiveness to resonate with the target audience.

Factors such as the purpose of the text, marketing strategy, target market, and time/budget constraints should be considered when deciding between translation and transcreation for a successful linguistic adaptation.

LINK:

https://mp.weixin.qq.com/s/meZQ7MC_HIHktV-0KSPdhg 

 

 

8. How AI technology is reshaping beauty retail in China

 

Store of the Future on Shanghai’s East Nanjing Road The first of its kind in China, the new concept retail space boasts seven digital touchpoints: an advanced skin analysis device powered by big data; a product recommendation feature based on AI-generated makeup trends; product labels equipped with radio frequency identification (RFID) that unlock a detailed breakdown of ingredients; mobile POS, which allows customers to check out anywhere with a beauty advisor and avoid long queues; and personalized gift packages with the option to add scents and voice messages.

Meanwhile, the Shanghai Municipal Medical Products Administration has granted SkinCeuticals, Estée Lauder, L’Oréal, and Shanghai Chuangyuan Cosmetics stores in Shanghai a license for personalized on-site services. With this license, retail stores can act as mini cosmetic factories, creating products tailored to individual skin types.

Typically, consumers seek the advice of sales assistants or search for product reviews by influencers.  plus the fact that KOLs and personal shoppers may have other motives for recommending certain items (e.g., brand sponsorships).

When stepping into the futuristic concept store, customers are asked to use their WeChat account to sign into the AI experience. Users are then connected personally to a salesperson who helps them through their purchase journey in person and can stay in touch with them once they leave the store.

 

 

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