China Learnings This Week

Short Video Platforms to Deal with Stricter Rating Measures

Problems with fan circles, such as irrational fan support among young fans, have become a cause of concern for Chinese politicians. Setting up a classification system for short video platforms is one of the options that has recently been offered.

‘First, we should tighten content management and allow the media to fulfil its social role,’ Chinese officials stated. Second, market restraints should be increased to aid the return to the rationality of the star-making frenzy.’

Netizens praised the move, pointing out that short videos have a significant influence on young people today, and that many videos on platforms like Kuaishou focus on attracting attention but neglect quality.

Last year, China saw certain limits come into effect when a notice was published in September 2021 forbidding TV and streaming platforms from running idol training shows – competitive reality shows that pit future stars against one other, with the victors going on to become China’s newest idols.

Link: https://mp.weixin.qq.com/s/8t7aaiOj0j1OhHSIwffFqA 

 

How to Make Your Brand Go Viral: Branded Mini-Movies in China

Mini movies are short cinematic pieces created for a particular product or brand. The duration is generally shorter than 30 minutes. With the advancement of new media technologies, the branded mini-movie was formed, and it has become a popular marketing tool in recent years.

The purpose of a branded mini-movie is to disseminate information in order to demonstrate the brand’s values and messaging for commercial purposes. Touch and Go, a 90-second Cadillac commercial mini-movie starring Daniel Wu and released in 2010, is credited with being China’s first branded mini-movie.

Many brands have turned to mini-movie marketing as a regular activity in recent years, and some have even developed their own mini-movies. Alibaba Pictures, for example, was launched by Alibaba in 2014.

One of the most popular mini-movies was  What is Peppa? (啥是佩奇?) video with several hundred million views across streaming media platforms and the Chinese hashtag for #WhatIsPeppa was viewed nearly 1.5 billion times on Sina Weibo soon after its release.

Link: https://daxueconsulting.com/branded-mini-movies-in-china/ 

 

Video Account Has Added Useful New Features

  1. The service menu can be added to the WeChat Channels

Recently, brands that have received certification have been able to add a “service menu” capability to their home page, allowing for a straight jump to a mini-program.

At present, several WeChat Channels have added new service menus, and different types of accounts can customize the service setup. For example, the Channel 丁香医生 has two service sections and Huawei Customer Service features six service sections for contacting customer service, store inquiries. etc.  It can more effectively reach users and improve their convenience.

  1. Paid live-streaming rooms on WeChat Channels

Previously, Tencent NBA WeChat Channel hosted first paid live broadcast room, which carried NBA regular season content. The brand can create a paid live streaming room where users can choose what they want to view.

  1. The relationship between WeCom and WeChat Channels getting closer

WeCom added an option to send, receive, and watch the WeChat Channels live broadcasts, as well as send and receive live broadcasts from customers and publish them to customers’ friends’ Moments. The current version of WeCom now supports the direct push of the channel’s business card, which helps to gain exposure of the brand and increase the number of WeChat Channels followers.

Link: https://mp.weixin.qq.com/s/VcPwp9lo_67PL1DG5Ck9kg

WeChat Menu Basics: How to Optimize WeChat Menu?

As we have introduced in our previous post, the WeChat menu is where users will look for crucial information such as your company’s contact information, brand story, major products, product line introduction, and more. When people click on your WeChat official account, they can quickly access these menu tabs.

How to Optimize Your WeChat Menu?

  1. Analyze the menus of your competitors.
  2. Have a nice menu design, as well as speed and efficiency.
  3. Revamp your menu every quarter
  4. Give your audience a tailored menu.

Let’s take a closer look at some of these best practices:

Menu Benchmarks

Before designing a WeChat menu, benchmark other accounts in the industry. It is important to take note of the number of tabs, tabs placement, what are calls to actions, tab categories, etc. 

Analyzing menus of competitors, we see that some of them link menu tabs to external websites. In this case loading time (hosting in China) and mobile-friendly design is crucial for a good user experience. 

Don’t overlook the menu as it’s one of the fundamental pillars of your brand communication on WeChat,

Menu Technicalities & Design

  • For speed and efficiency, make sure the information of the menu tabs is either incorporated in WeChat as WeChat articles or directed to a website hosted in China.
  • Since this is the most popular content on the official account, make sure the design is as nice, if not better, than normal articles.
  • For more sophisticated menus, consider using WeChat templates.

Revamps

  • Check the relevancy of menu columns/tabs every quarter to ensure that your menu is up to date and reflects any important changes that have happened.
  • Examine the most and least clickable menu tabs to identify if the least performing. Then, decide to either enhance them or see if they’re needed at all and remove the unnecessary ones.

Customized Menu

  • On WeChat, personalization can help your content stand out from the crowd, boosting engagement, retention, and conversion rates. Menus can be customized depending on the user’s initial touchpoint. For example, if they scan a QR to your official account from a physical product they already own, you can serve them with a menu that is geared more towards existing clients and adapt the journey accordingly with loyalty programs and a post-purchase tab. Similarly, you can prepare a version of the menu for people who are not your customers yet with more focus on menus introducing your products, brand history, and product benefits. All within one official account.

WeChat Menu MontagutWeChat Menu MontagutWeChat Menu Montagut
Menu Optimization Look-outs:

  1. Loading time: Make sure the content is either incorporated in the WeChat ecosystem as an article or that the menu tabs redirect to a Chinese-hosted website.
  2. Sub-menus: You can use up to 15 sub-menu tabs (3 columns x 5 sub-menus), but don’t overburden your consumers. Apply the logic underlying the website menu layout haphazardly.
  3. Language: When Chinese readers encounter just English-language information, they might abandon the website right away.
  4. Performance: Monitor the performance of your menu tabs every quarter and make any necessary adjustments. For a better user experience, consider customized menus.

Conclusion

WeChat menus are gradually becoming the most popular content types on the WeChat platform because they act as information centers for your company in China. So as a result, for firms trying to expand their business in China, the WeChat menu is a must-have.

A well-designed menu that directs users to relevant tabs can boost sales and lead generation. Update tabs on a regular basis, some of them can direct users to active events or campaigns.

Specifically developed and customized menus can help drive sales and leads by better connecting the audience with the business and improving the user experience.

Are you looking for setting up your very own WeChat Menu? Please get in touch with our team. We apply our knowledge and experience to assist businesses in forming meaningful connections and expanding their consumer base in China. For additional information, please contact us by phone – Shanghai or Hong Kong

 

Read more: WeChat Menu Basics: Introduction for Brands

WeChat Menu Basics: Introduction for Brands

What is WeChat Menu?

Aside from articles, one of the most important functions that companies can use on WeChat is the Menu – it’s always-on content that brands can use in a variety of ways.

The WeChat menu is where users will search for key information, such as your company’s contact details, brand story, key products, product line introduction, and more. They can simply access these menu tabs when they click on your WeChat official account.

To begin with, the WeChat menu is similar to the menu on a website, and you can replicate or mirror the menu from your official website by taking into account which information are the most important for your China’s audience. As you will see in this article, a well-crafted menu by directing the users to relevant tabs can increase sales and increase lead generation. Menu tabs can be updated on regular basis and some can lead to ongoing events or campaigns. 

WeChat Menu Backend

Menu – More Important than One Thinks

According to Digital Luxury Group, of all the engagement activities carried out by followers, Menu Clicks ranked the highest of all types of engagements with official accounts at an astounding 73%. This might be a shock for many brands that mainly focus on producing amazing weekly content but often neglect regular updates of their WeChat menu. Users tend to engage with brands on WeChat when they are looking for specific types of information or services, which are generally accessed through the menu tabs therefore menu serves a different purpose than weekly articles. 

WeChat Menu Stats

Why Use The WeChat Menu?

Best first impression: When a user clicks to follow your account, they receive an automatic welcome message. You can edit and craft this message by using WeChat links directing to menu tabs, e-shops, contact forms, etc. Make sure it’s concise and not too long.

Smoother user journey: The menu helps users quickly find all FAQ (frequently asked questions) information. From the menu, they should be able to access e-commerce (if applied), customer service, and brand introduction. This is something that WeChat users are used to and automatically check when following a new account. 

Stay up-to-date: Look at the menu as your information hub for the Chinese market as it’s quite possible that your Chinese customers will check your WeChat menu more often than your website. Carefully focus on the most important tabs like brand introduction, current product catalog, contract details page e.g. one of the biggest mistakes we’ve seen it’s uploading contact details as image, therefore, emails or phone numbers can’t be copy-pasted causing inconvenience for potential customers. 

Gain new followers: Although the menu is only visible to users who visited your WeChat account and won’t necessarily help with the initial account awareness when you manage to hook your visitors with the menu, you can lead them through a rich brand experience journey. That’s why investing more time and effort into creating menu content is crucial. 

WeChat Menu Backend WeChat Menu Backend

WeChat Menu Montagut WeChat Menu Montagut WeChat Menu Montagut

Who Can Enable the Menu?

The menu function is accessible by two types of accounts:

– Verified subscription accounts,

– Service accounts.

The good news is that all overseas companies applying for a service account can enable a menu on their official WeChat account. The menu can be set up and edited using the desktop official account WeChat backend. 

Menu Tabs

From the technical point of view, the menu can consist of a maximum of three columns and each can have a maximum of five sub-menus. Your menu can have a total of 15 tabs. In special cases, if you need more submenu tabs, there is also an option to create a menu tab showing a collection of related articles for more advanced WeChat users. You can contact us to find out more. 

However, we don’t recommend setting up a maximum amount of many tabs as it might be slightly overwhelming for the users and make it hard to find the information that they are looking for. Remember that the core of the WeChat menu is its functionality. Hence, 8 or 9 tabs is ideal.

There are a few options to build your menu:

Sub-menu content

  • Send a Message  
    • Article,
    • Text message,
    • Image,
    • Audio,
    • Video.
  • Jump to Web page:
    • WeChat article – best user experience as the page loads quickly, and beautiful posts can be created.
    • External website – not recommended since if the website is hosted outside of China, it will be extremely slow. If it is in English, it will be discouraging to readers.
  • Jump to Mini Program

Jump to ‘WeChat Article’ is the most user-friendly solution. 

WeChat Menu GB  WeChat Menu PG

How to create a menu?

Step 1: On the top left of your public account page, you’ll notice a “menu” icon appear after you’ve created your service account or had your subscription account certified.

Step 2: Create three first-level menu items and second-level sub-menu items for each of them. 

Each menu column name can consist of up to 4 Chinese characters or 8 letters

Each menu tab name can consist of up to 8 Chinese characters or 16 letters

Step 3: Now it’s time to start creating content for your menu. Click on each item to create content when users click on each tab. As mentioned above you can ideally link it to either one of the messages you just produced, an existing article, WeChat mini program or an external webpage (make sure the webpage displays well on mobile and fast enough for WeChat user standards).

Sometimes it can take up to 24 hours for a new menu to appear on your account. Be patient!

Conclusion

Here are the important things to know about the Menu:

  • WeChat menus are becoming one of the most clicked types of content in the WeChat official account ecosystem. 
  • They are your brand information hubs for the Chinese market. 
  • Brands can set at most 3 menu columns with each menu column set a max of 5 sub-menus. In total, a brand has 15 sub-menu tabs to leverage.
  • WeChat’s official account backend allows tracking follower behavior to understand the click rate of each menu. We will cover WeChat menu optimization and other advanced options in our next post. 

Read more about in the second part of this article: WeChat Menu Basics: How to Optimize WeChat Menu?

Are you looking for setting up your very own WeChat Menu? Please get in touch with our team. We apply our knowledge and experience to assist businesses in forming meaningful connections and expanding their consumer base in China. For additional information, please contact us by phone – Shanghai or Hong Kong

What Is Dewu?

You probably hear a lot about RED, one of the biggest UGC (User Generated Content) platforms in China. Well, there is another one that is super popular among Chinese millennials and Gen Z, that is DEWU (得物), previously known as POIZON or Du (毒).

Shanghai Shizhuang Information Technology Co., Ltd. launched Dewu, commonly known as Poizon, an online shopping app. It is China’s largest fashion brand exchange and trading platform, including features such as evaluating the validity of fashion labels and trend sharing. Product listings, trade mechanisms, and unified delivery are all subject to strict authenticity checks.

Poizon Dewu

Dewu’s USP

The “identify first, ship later” shopping approach is Dewu’s unique selling point. Trendy shoes, fashion, watches, accessories, gaming, digital and home appliances, beauty, vehicles, and more are among the product categories. At the same time, by consistently accumulating fashion content, Dewu is becoming a trend indicator and voice for young users as a trendy lifestyle network for young people. 

People can also share their impressions and discuss their purchases with other users. For example, the app boasts a thriving community of sneakerheads who discuss the latest releases on the platform. As a result, the most trending topics of discussion revolve around sneakers, fashion brands, celebrities, street culture, cars, watches, and fashion art, all of which are popular among young people.

Poizon Dewu Poizon Dewu Poizon Dewu

Growth of Dewu

Dewu App has become synonymous with “quality e-commerce”, leading the new demand for quality consumption

The Dewu platform’s total revenue in 2019 was 7 billion yuan, with sneakers accounting for the majority of that. The domestic second-hand shoe market was nearly monopolized by this app. In the same year, the app had accumulated 47 million product identifications. 

In 2020, the number of identifications will have expanded dramatically, surpassing 60 million, with roughly 40 million active monthly.

According to Fan Ruan, Dewu’s MAU (Monthly Active User) hit 81 million in May 2021, representing an increase of 8% month over month. 

Key User of Dewu

The structure and demographics of Dewu’s DAUs (Daily Active Users) is very interesting as the ratio of male to female users on Dewu is 52:48. This is in stark contrast to RED, which has a predominantly female user base.

Dewu has a sizable percentage of young customers. The post-90s generation accounts for more than 75% of the total. These young people are the driving force behind online consumption and the architects of the new online economy’s future development. They consume with strong personal qualities. They are not only open to trying new products, but they are also more willing to share their consumer experiences with others and strive for a positive consumer experience. 

When it comes to China, 61% of Gen Z is looking for brands that will set them apart. As a result, Dewu is a platform that assists Gen Z in meeting its needs. 

Why do more and more brands choose Dewu(得物)?

Dewu’s app store ranking has been in the top ten for quite some time. Dewu has now become a “platform level” product, based on the IOS store rankings and the average daily downloads of more than 100000 users. Because of that, Dewu is attracting an increasing number of companies and service providers.

At present, more than 5,000 brands have settled in, mostly fashion wear brands and high-end brands, such as sports brands Adidas, luxury brands such as Coach, Michael Kors, Armani, and so on.

The reason why high-end brands choose Dewu is mainly due to the following two points:

  1. The user group and consumer demand are expanding.
    The consumer demand of users grows as user groups expand: male users are interested in shoes, watches, accessories, and men’s apparel; female users look for more women’s clothing, beauty makeup, and skincare goods, among other things. There is space for brand development due to consumer demand.

    At the same time, the “post-90s” account for more than 80% of property users, according to the most recent government statistics. Young people are the target audience for high-end brands.
  2. The content community system is also good for the brand.
    The platform will guide customers to consistently develop high-quality content in Dewu’s content community system. When producing news on Dewu, for example, the platform will provide “high-quality strategic advice” to help people write high-quality news.

Dewu’s current content community, like Xiaohongshu’s, is in UGC mode, with many KOL and MCN institutions settling in. According to official public data, Dewu collaborated with approximately 100 MCN institutions in the first half of 2021.

Incentive for brands

The platform offers a number of benefits that attract top businesses to collaborate with the platform. They are as follows:

  • Discounted pricing for businesses (Lower cost and faster shipment)
  • The user interface is simple (high-speed operation)
  • Service of operation (New product launches, operation guidance, marketing activities, community promotions)
  • Customer service from a single merchant (Efficient response, fast payment)

Poizon Dewu Poizon DewuPoizon Dewu

Step-by-Step Process on Becoming a Seller on Dewu

The registration process for sellers is similar to that of other Chinese e-commerce platforms. There are various steps to it.

Step 1: Create an account and log in.

  • Register the personal user account for the platform
  • Create a password for your account
  • Go to the merchant’s registration page, select “I want to enter,” and read the instructions.

Step 2: Fill in the information

  • Complete the company and brand information, and then submit your qualifications.
  • Next, verify the accuracy of the information before submitting it for evaluation.

Step 3: Wait for the review

  • Within 7 working days, you will receive a response.
  • Check the status of the review, make any necessary changes, or move on to the next step.
  • Confirm the merchant’s agreement to participate.

Step 4: Make a deposit.

  • Go to merchant login backstage
  • Then make payment via online deposit or upload bank account details.

Conclusion

Dewu is a second-hand marketplace with strict anti-counterfeiting measures in place. Consumers are protected by these procedures, which provide them with psychological security by preventing them from spending money until the products have passed an authenticity check.

The platform is great for high-end, limited-edition items. Things such as co-branded items, luxury items, and collectors’ items are some examples. 

The platform also provides room for budding Chinese brands, making it an excellent starting point for those wishing to establish a brand in China.

Are you looking for setting up an e-commerce business on Dewu? Please get in touch with our team. We apply our knowledge and experience to assist businesses in forming meaningful connections and expanding their consumer base in China. For additional information, please contact us by phone – Shanghai or Hong Kong

What’s New in China?

China Drafts New Rules to Control Notifications and Pop-ups

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Low-budget CNY Campaigns

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

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

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

Douyin Advertising: a Step by Step Guide

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

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

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

Fjord Trends 2022

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

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

China Trend: Silver Generation

The results of China’s most recent census confirmed what many observers had predicted for a long time: the country’s population was expanding slower and getting senior than ever before.

The “silver generation” is China’s fastest-growing demographic, with senior people accounting for one-third of the country’s purchasing, a fact that merchants and retailers should be aware of. With growing spending power, more leisure time and longer life expectancy, Chinese seniors are becoming a consumer group to reckon with. Given their growing will to live their ‘golden years’ to the fullest and taking into consideration how nuanced this huge cohort is, brands can create and communicate their products and services properly. 

China’s population of people over 60 years old surpassed 254 million in 2019, accounting for 18.1% of the total population. No other country in the world faces such a significant demographic change. According to the National Bureau of Statistics, China’s ageing population will reach 330 million by 2030, accounting for 25.5% of the overall population.

Globally silver generation is undergoing its own changes and is connected more than ever, particularly in China, where, according to Quest Mobile 2020, the number of internet active users aged 50 and up will surpass 100 million by May 2020. 

Silver-Haired Consumers and Their Demography

The term “silver-haired group” refers to China’s senior population, which ranges in age from 60 to 69 years old. Thanks to improving living standards, healthcare and relatively early retirement age, China’s older generation in their 60s and 70s is generally healthy, self-sufficient and have a lot of spare time.

According to research, these so-called ‘’active seniors’ of which China has around 150 million are mostly found in first-tier cities. Shanghai has the greatest proportion of people over the age of 60 in its population (30%). In Beijing, Tianjin, Chongqing, and Guangzhou it stands at around 20%

When compared to peers who live in rural areas, those who live primarily in major urban centres have better salaries and spending power. Pensions are the primary source of income for the elderly in cities. Self-employment income is the primary source of income in rural areas. With their own savings and the support of their children, elders in China are enjoying considerable financial freedom for the first time in history. 

Experts predict that the spending power of the silver group will reach CNY 20 trillion in 2030, from CNY 4 trillion in 2014.

The Role of E-Commerce and Internet Access

Seniors are becoming more willing to accept technology and the tools it provides. This explains why the number of senior users has increased from 54 million in 2018 to 100 million by 2020. 

There are many more female users than male users among these elderly netizens (57.1% vs 42.9% ). 

Prior to the epidemic, physical stores still played a significant role in the older consumer sector. However, since the onset of COVID-19, this pattern has shifted dramatically, with more older consumers joining online buying force.

They mostly utilise mobile devices to access the internet, more than 40% use Taobao and Alipay to make purchases. Apart from daily basics like food and health supplies, the silver-haired generation seeks goods and services ranging from apparel to home appliances, travel, insurance, and financial services. They spend 1,000 RMB every month on average.

They are not only emerging as a major consumer force, but also as new fashion and beauty influencers. A well-known example is Sang Xiuzhu, the 76 years old Chinese social media sensation with videos of glamour in the golden years.

She became a member of the Fashion Grandmas two years ago, whose one-minute clips and live streams showing them transforming Beijing’s streets into a catwalk watched by millions of people. They combine beauty with wise words on marriage, love, and life. All coming from a generation that is becoming increasingly important to China’s economy and online culture.

“Our young fans say they are not afraid of ageing after seeing grannies like us living fashionable and happy lives”.

Is There an Untapped Market Among Senior Generation for Brands?

Without a question, the COVID-19 epidemic has accelerated transformation that would have occurred anyway in the long run.

The Chinese senior population is increasing, which means that the silver economy’s potential are expanding as well. Brands should stop thinking of the elderly in China as grannies and grandpas with old-fashioned big-button phones. Start think of them as self-sufficient consumers with plenty of buying power who aren’t hesitant to embrace new technology.

This unexplored market presents a great chance for brands to establish a strong consumer base in China.

Many well-known brands have already begun to tap into this lucrative market. Xiaohongshu has developed a successful online lifestyle community for China’s youth and is now focused on the country’s elderly. Xiaohongshu’s application for Laohongshu (literally meaning Old Red Book) registration has finally been approved after months of waiting. The upgrade has attracted a lot of attention in the domestic media implying a cunning move toward the “silver-haired economy.

Alibaba, which started its “Taobao for Elders” program in early 2018, is another company targeting the generation’s tech spending potential. The senior-friendly version includes chat feature and a “pay for me” link that users may send to family and friends.

Conclusion

China’s baby boomers are not a direct substitute for the country’s millennial and generation Z consumers. Therefore initiatives to boost birth rates will be critical to fully exploiting the country’s domestic market.

However, a government must make the best use of all of its tools. China has an underdeveloped sector of its economy in its 200 million senior citizens waiting to be unleashed.

In the next few decades, China’s elderly population will exceed 500 million. They are the generation that is catching up on social media and becoming more visible, particularly on short-form video platforms. 

Chinese elders are becoming a new market that enterprises. This is especially true as the population grows and more people enter the digital world.

The Week’s Update In China

Alibaba goes after JD’s direct retail model with new e-commerce app:

It is establishing a new online platform that will follow the direct sales strategy of rival JD’s. Maoxiang, the new platform’s name, will first focus on consumer electronics.

Why it matters: 

Alibaba is trying out different models to boost business growth amid weakening consumer spending, intensifying competition, and tightening regulations. 

Details: 

Maoxiang will adopt a direct retail model. The online platform can sell branded merchandise directly to consumers, having more control over sourcing, quality, storage, delivery, and after-sales.

For starters, the platform will focus on selling consumer electronics products, big-ticket items that JD also focused on during its early days. SF Express and Danniao Logistics are possible couriers for the service to ensure next-day doorstep delivery.

Link: https://technode.com/2022/02/18/alibaba-goes-after-jds-direct-retail-model-with-new-e-commerce-app/

Chinese otome games mark Valentine’s Day with fresh female content

Chinese female-oriented online games released new content to celebrate Valentine’s Day and attract new players. 

Why it matters: 

Otome (Japanese for “maiden”) games are primarily role-playing games aimed at female gamers (RPG). These online games pander to the emotional demands of female gamers by giving a variety of love fantasies. For these game designers, Valentine’s Day has become the most popular annual event.

Details: 

Eight out of the top 10 otome games listed on TapTap, a game review platform and player community, released special content for Valentine’s Day.

For example, I Should Be a Rich Lady, the most downloaded otome game in Apple’s Chinese app store, unveiled Valentine’s Day contest on Feb. 10. Players are asked to vote for their favourite romantic characters. The game maker, Tomato Games, produced customized stickers for the winning character based on the votes. The game’s app ranks fourth overall in Apple’s RPG category.

Mr Love: Queen’s Choice, produced by Papergames, also released an update, adding more holiday plots and scenes. Players have the chance to win cash and other game content rewards  (in Chinese) during the time-limited update.

Link: https://technode.com/2022/02/14/chinese-otome-mobile-games-mark-valentines-day-with-fresh-female-content-mr-love/

How fashion can leverage blind box marketing in China

Blind boxes have grown into a massive industry that is expected to be worth 30 billion yuan ($4.6 billion) by 2024. Many Chinese consumers enjoy unexpected content, which fashion firms may use to create interesting narratives.

The problem is figuring out how to make blind box marketing work for fashion and luxury firms. Lanvin, which developed a blind box lottery on its Wechat mini programme for Chinese Valentine’s Day in August, is one luxury brand that has previously tried the waters.

Lanvin, a Chinese company controlled by Fosun International, set a low threshold for entrance into their Chinese Valentine’s Day lottery last August. To participate, participants simply had to pay 200 yuan. Team or group games might be played, garnering 50,000 players in a month and five-folding Lanvin’s Wechat views.

Link: https://www.voguebusiness.com/consumers/how-fashion-can-leverage-blind-box-marketing-in-china

Beauty in 2021: Trends, Observations, and KOL+KOC Marketing

Competition between domestic brands, both old and new, is increasing, as is competition between domestic brands and foreign brands. Limited collections and interesting brand ambassadors are used by brands to captivate consumers.

Men’s make-up, body care, and other beauty and skincare categories grew by triple digits, with male perfume consumption increasing threefold in four years.

Link: https://mp.weixin.qq.com/s/BXK4dLCsxNdAI9imxLj0LA  

Why do more and more brands choose Dewu(得物)?

The ranking of Dewu in the IOS app store has been in the top 10 of the app store for a long time. Judging from the IOS store rankings and the average daily downloads of more than 100000 users, Dewu has now become a “platform level” product. More and more brands and service providers have begun to invest Dewu.

At present, more than 5000 brands have settled in, mostly fashion wear” brands and high-end brands, such as sports brands Adidas, luxury brands ascoach, Michael Kors, Armani, and so on.

The reason why  high-end brands choose Dewu is mainly due to the following two points:

  1. The user group and consumer demand are expanding.
    The consumer demand of users grows as user groups expand: some guys are interested in shoes, watches, accessories, and men’s apparel; girls require women’s clothing, beauty makeup, and skincare goods, among other things. There is space for brand development due to consumer demand.

    At the same time, the “post-90s” account for more than 80% of property users, according to the most recent government statistics. Young people are the target audience for high-end brands.

  2. Second, the content community system is also good for the brand.
    The platform will guide customers to consistently develop high-quality content in Dewu’s content community system. When producing news on Dewu, for example, the platform will provide “high-quality strategic advice” to help people write high-quality news.

    Dewu’s current content community, like Xiaohongshu’s, is in UGC mode, with many KOL and MCN institutions settling in. According to official public data, Dewu collaborated with approximately 100 MCN institutions in the first half of 2021.

Link: https://mp.weixin.qq.com/s/0xP54EO37NE3K3kUPW7hEQ

Advertising on RED/XiaoHongshu

Xiaohongshu, also simply called RED, is one of the fastest-growing smart social commerce apps on the market, with over 100 million monthly active users. RED provides multinational brands with enormous opportunities to maximize their potential and establish a strong presence in China. It’s for this reason that famous brands like Louis Vuitton and YSL are clamoring to advertise on the site. If you are not convinced yet check our previous post 5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account

In the ever-changing digital landscape, it’s a must-have Chinese marketing channel for beauty, lifestyle, and fashion brands. 

RED helps marketers to engage and sell to their target market by utilizing a filtering algorithm that tailors material to users’ likes, which is one of the most significant advantages.

The most effective strategy to reach users is to advertise in the app’s newsfeed. User-friendly and authentic material with clear reasons to interact is preferable. We recommend to use a mix of multimedia with enticing descriptions with hashtags to cover a variety of views depending on the objectives and industry subjects. 

One of the key ways to gather popularity on RED is of course collaboration with KOLs and KOC ​​which we will cover in our next posts.  

Who are Chinese influencers: KOL and KOCs? 

Today, we will focus on how you can advertise using RED’s native media buy system.

While advertising on the platform is certainly beneficial to your business, navigating XiaoHongshu’s merchant setup can be tricky. There’s a lot to consider, and there’s not a lot of help available. Here’s all you need to know about selling on XiaoHongshu without the hassle!

Step 1: Create an account on RED / XiaoHongshu

To begin, you must first create an account on XiaoHongshu’s enterprise system. If you’re an incorporated business with your own email account, this should be pretty simple.

Step 2: Provide information about your business

After you’ve created an account, you’ll need to fill out the following information:

  • Company information and qualification: like your contact information, location, the origin of your goods, trading model (cross-border or general commerce), and business type. Also, include a Chinese business license or letter verifying your right to sell in China and proof of incorporation.
  • Financial information: your bank details, account number, billing currency, and sort code
  • Brand information and qualification: adding your brand name, description, and photos, as well as whether you’re a single or a multi-brand company. Also, I Include trademark certificates, permission to resell other brands (if applicable), and authorization to sell under your own brand.

Step 3: Review of qualifications on RED

After you submit the above information, XiaoHongshu will review your application and determine whether you are eligible to sell on their site. If all of the information you supplied is correct, you can complete it as soon as one week after your submission.

Step 4: Fill out the contract

When RED approves your application, you’ll receive both a digital contract to sign through email and a physical contract to return by mail. Read these over with a lawyer and sign them as soon as possible if you wish to move further.

Step 5: Take up the XiaoHongshu training

The completion of XiaoHongshu’s online training program is the final stage in the application procedure.

This section contains all you need to know about selling on the platform, and you won’t be able to start your store until you finish it. Set aside some time to concentrate on this – it will benefit you greatly in the long run.

Time taken to register: The length of time it takes to register is mostly determined by how quickly you can complete all of the paperwork, complete your company introduction, submit photographs, and so on.

If you do everything correctly from the start, you can administer the application in one week.

Costs included: Deposits and operating fees are included in the cost of selling on the platform. Deposits vary depending on your company’s “characteristics,” your qualifications, and the type of store you intend to open.

The deposit is usually RMB 20,000 and is returned three months after the store is closed.

Conclusion

Xiaohongshu’s unique stance as a trustworthy, celebrity-approved distributor of international products is an ideal route for businesses. Especially for ones looking to leverage the social commerce trend as part of the e-commerce revolution for purchasing superior products.

However, marketing in China is never simple. There are language barriers to overcome, rules to follow, and high costs to consider. All of that makes starting all too risky.  

That is why at KRDS, we commit to assisting businesses to achieve marketing success in China. If you require further support with setting up your account, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account?

China is one of the world’s largest e-commerce markets, with a myriad of marketplaces to choose from. Taobao, Tmall, JD, and Pinduoduo have drawn millions of shoppers to become frequent buyers over the last decade. 

Social media has substantially impacted the way Chinese consumers shop online, in tandem with a tremendous increase in mobile phone usage. Especially those born in the mid-to-late-nineties, Chinese Gen Z also called the post-90s generation, are pioneering new trends.

That’s where XiaoHongshu comes in: a well-known “lifestyle” UGC and review app that’s taken the e-commerce world by storm. You can find the introduction to RED we covered before here – A Quick Guide to Xiaohongshu (Little Red Book) Marketing

XiaoHongshu, or RED, is a combination of beauty, lifestyle, and fashion app in one that allows users to share their personal style while also discovering new goods from around the world. It is the Chinese equivalent of Instagram on steroids, and it’s a great way to read product reviews, share daily outfits, get fashion advice, and find high-quality businesses and all of this with just one click to buy the products mentioned in the article. This is especially relevant for relatively unknown, small luxury brands since beauty enthusiasts in China love to search for new labels and one of the industries that enjoyed this trend are niche perfumes – The Accelerating Growth of Niche Perfume Brands in China.

Why Should International Brands Leverage the Platform?

XiaoHongshu provides a variety of free and paid ways for businesses to advertise their brand to their user base. Some of them include:

Reason 1: Brand accounts

On XiaoHongshu, brand accounts are one of the most effective ways to interact with the community. They can send ‘notes’ to fans, add photographs and videos, sell their own items, and answer fan reviews and comments.

A brand account on XiaoHongshu with the correct strategy and content in place might quickly build attention on the platform, especially if your notes are added to the ‘boards’ of popular influencers.

Reason 2: 100 Monthly Active Users

XiaoHongshu has over 100 million monthly active users with 70% female and almost 40% users being between 25 and 34 years old. If you are a beauty, fashion, or lifestyle brand targeting Chinese gen Z that’s the platform to be. 

Content Promotion Model

Reason 3: ‘Key Opinion Leaders,’ or influencers

Xiaohongshu developed as a review platform and grassroots content is still dominating. Influencers and key opinion leaders (KOLs) are critical to establishing traction on XiaoHongshu and are perhaps the most powerful type of advertising available.

The XiaoHongshu ‘Influencer Platform,’ a database with roughly 6,000 influencers, is designed to match you with individuals who are most relevant to your speciality and budget.

Who are Chinese influencers: KOL and KOCs?

Reason 4: XiaoHongshu advertising 

XiaoHongshu also offers traditional advertising in the form of ‘pop-up’ ads that display when the app is used and promotional messages that are organically incorporated inside the platform’s ‘explore’ feed, in addition to organic opportunities and influencer marketing.

Develop content for the most important Chinese e-commerce festivals to catch the attention of Chinese users. Check out how to advertise on the platform in our article – Advertising on RED.

Overseas Shopping

Reason 5: Crossborder e-commerce

Xiaohongshu offers cross-border e-commerce business for brands based outside of China and wishes to target and sell to the Chinese market. Because of its business model, RED takes care of the warehouse and logistics within China making it easier for foreign brands to operate.

Find out more about cross-border e-commerce in China

 

How to Set Up an Account on RED/Xiaohongshu?

Setting up accounts on WeChat and XiaoHongshu is frequently done in conjunction and is substantially less expensive than selling on Tmall.

Step 1: On RED, there are over 20,000 brand community accounts. Nearly 10,000 third-party e-commerce merchants use the network, which offers over 100,000 distinct products. As a result, the most vital initial step is to create an account.

Step 2: After you’ve created an account on RED with a Chinese phone number (you can also create an account with an international phone number, but your app’s functionality would be limited), the next step is to see if you can use their in-app e-commerce option. 

Requirements for setting up an account

Your company must have a business registration in China in order to use this function. One of RED’s biggest advantages as a social commerce platform is that it has its own store where users can make purchases directly from the app. Many brands benefit from this closed-circuit integration since it allows them to sell their products more easily.

The main documents required to open a XiaoHongshu account are:

  • Papers for registering a business
  • Incorporation certificate
  • Form for customs registration

You’ll also need to submit the following supporting papers.

  • Information about the company 
  • Logistics commitment letter 
  • Authorization letter for store operations 
  • Brand information Application form 
  • Authorization form Trademark authorization

Conclusion

Xiaohongshu is an amazing platform where lifestyle brands can advertise things such as fashion, cosmetics, nutrition meals, accessories, and brands that are popular with young female shoppers. Hence, If you want to reach Chinese young female consumers, XiaoHongshu should be a big component of your strategy.

More than just another e-commerce marketplace; it’s a lifestyle community where users and influencers share photos, videos, and information about things they’ve used.

That is why at KRDS, we are committed to assisting businesses to achieve marketing success in China. If you require further support with setting up your account, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

China’s Latest Updates 

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

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

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

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

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

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

Shanghai Bans Effeminate Men, Money Worship in Commercial Ads

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

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

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

Alibaba: Consumption Trends for the Lunar Year of the Tiger

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

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

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

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

WeChat: Keywords About the Lunar New Year of the Tiger

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

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

100 Keywords Forecast 2022

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

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

Brand and marketing 10 keywords:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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