China Roundup This Week

November 16, 2021

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

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

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

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

 

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

 

Can C-Beauty Brands Cultivate Loyal Consumers?

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

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

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

 

Changing Attitudes Towards 11/11 Shopping Festival?

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

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

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

 

Douyin City

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

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

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

 

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

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

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

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

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

 

How to Recontextualize Brand Narratives in China

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

Image courtesy of Max Mara’s Mini Program.

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

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

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Unusual Brand Collaborations In China

November 15, 2021

Whether your business is selling lipsticks, chicken wings, or museum tours, the topic of how to reach more new people – more customers – comes up in every marketing meeting, across every sector imaginable. So here’s a suggestion for you all – Why not tap into the audience of someone else? 

A collaboration with a competitor is obviously not going to work, but what about one with a brand that sells something completely different? 

To get noticed among China’s millennial consumers, businesses must take advantage of unusual collaborations. It may sound bizarre, but it has the potential to attract a new audience that was previously unaware of your existence. 

Here are a few examples of unusual brand collaborations in China

 

Perfect Diary – Cosmetics
Disney – Kids entertainment
Collaboration – Limited-edition line of amino acid-based facial cleaning products inspired

 

The C-beauty brand routinely leverages brand collaborations as part of its overall goal to appeal to China’s millennial and Gen Z audiences. In a recent collaboration with Disney, the company released a limited-edition line of amino acid-based facial cleansing products inspired by the Baymax character from the 2014 animated film “Big Hero 6”. Two of the makeup remover bottles are sealed with a Baymax head, while other goods include images of the character on the packaging, appealing to young buyers’ love of cuteness and blind-box style toys.

 

KFC – Fast food restaurant chain
Karl Lagerfeld’s – German fashion designer and photographer
Collaboration – Limited Edition Chicken Bags 

 

KFC China recently resorted to the luxury business to mark the company’s 80th anniversary. Karl Lagerfeld, the fashion mogul, was the chosen brand, and he created two limited-edition bags. The centre Karl Lagerfeld logo was replaced with Kentucky Fried Chicken, and Paris was replaced with Kentucky in the funny new rendition of the original Karl Lagerfeld design. The bags contain three red stripes, which are KFC’s signature colours.

Ikea – Furniture retail company
ROG – Gaming retail
Collaboration – Gaming Furniture and Accessories


Ikea presented an eagerly anticipated collaboration with the Asus Republic of Gamers (ROG) on a new collection of affordable gaming furniture and accessories, taking a “China-first” approach to product innovation. A sleek high-backed gaming chair, an adjustable table that can be used as a standing workstation, and a wall-mounted pegboard to keep gaming equipment organised are all part of the black-and-red collection.


Conclusion

Younger consumers, particularly Generation Z, are perceived as having a larger proclivity for purchasing from ‘collaboration’ collections than older consumers. According to Boston Consulting Group (BCG), Chinese Generation Z customers have the largest desire for cross-brand collaborations among this generation’s quest for newness from the brands they like.

These out-of-the-box collaborations demonstrate that the opportunities for co-branding in China are limitless. Why limit yourself to usual collaborations when you can have so much fun? Collaboration with other well-known brands across all industries may help businesses grow their audiences, increase sales, and establish a reputation as a creative and fun brand among Chinese customers.

While unique collaborations have a lot of promise for your company, getting started can be challenging. If you require further support, please contact our team. We apply our expertise and experience to assist firms in forming meaningful partnerships and developing a digital marketing strategy that better targets and connects with Chinese customers. For additional information, please contact us by phone or email.

 

 

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WeChat for Beauty/ Makeup Sector

November 9, 2021

Thanks to rising disposable incomes in urban areas, consumers in China are increasingly interested in health and beauty products such as cosmetics, perfumes, fashion accessories, and vitamin supplements.

The Chinese beauty, cosmetics, and grooming market is second only to the US in terms of size and maturity after several years of rapid expansion. Although some newbies to the industry have begun to climb the rankings, foreign brands continue to outperform domestic players.

Beauty Brands and WeChat

Brands in China are turning to the WeChat app to move beyond generic marketing and into a more personal level of connection, interaction, and targeting. Many people are discovering that using WeChat to take a customer-centric strategy produces greater results than merely posting and sharing blogs and other information.

Offering unique deals and exclusive content to subscribers, samples for testing, live event invites, games and competitions with rewards, and loyalty programmes are all examples of connecting with WeChat.

 

Why WeChat for Digital Marketing?

With so much growth expected in the cosmetics industry, it’s critical for companies to establish brand recognition in China. WeChat accounts for 47% of all mobile time spent and has 1.1 billion daily users, so it goes without saying that this app is critical for organisations looking to expand their digital presence in China. 

WeChat has accumulated a vast amount of user data as a result of its many capabilities and large community. In marketing, this translates to extremely useful data for Paid Media initiatives. In fact, many Chinese businesses begin their digital presence on WeChat before developing their own website or app.

 

How can WeChat Benefit your Beauty & Service Business?

  • Subscribers can get discounts, rewards, games, entertainment, interactive experiences, and other perks.
  • To fine-tune and optimise targeting based on interest, divide the audience into categories.
  • Customers can be geo-targeted and informed about upcoming in-store deals and specials.
  • Provide customised beauty solutions for each customer.
  • Interact and communicate with people one-on-one rather than in groups.
  • Provide a personalised answer to questions and inquiries (as opposed to automated).
  • During occasions that involve gift-giving, promote and offer extraordinary one-of-a-kind gifts (such as Chinese New Year).

 

Conclusion

WeChat Ads are a hot trend in China for breaking through and winning over the audience. WeChat offers a wide range of utilities and targets, making it a wonderful chance for businesses and marketers looking to break into China.

While WeChat has a lot of potential for beauty firms, getting started can be difficult. Get in touch with our team if you need assistance with this. We use our experience and knowledge to help businesses establish a digital marketing plan that better targets and communicates with Chinese consumers. Contact us via phone or email for more information.

 

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This Week’s China Learning

November 9, 2021

2021 Beauty Industry White Paper

Although this white paper focuses on China’s cosmetics industry, many of the conclusions are applicable to China’s other industries.

Main takeaways:

  • A content-focused strategy is becoming increasingly important, rather than a price-focused strategy.
  • Brand building has been a priority for both foreign and domestic brands. They are increasingly focusing on long-term brand equity/notoriety rather than short-term ROI.
  • In China, young internet customers remain the most significant market for most brands. Women under the age of 40 account for approximately 70% of the global cosmetics market, significantly outnumbering their demographic share.
  • As the appeal for transactional techniques fades and becomes increasingly unsustainable, younger consumers are more affected by brands and content that resonate on an emotional level and match with their value system. As a result, marketing is far smarter and more fascinating now than it was in the days when all you had to do was decrease the price.

Link: https://www.kantarworldpanel.com/cn-en/news/2021-Beauty-Industry-White-Paper?utm_source=news_chinaskinny_com&utm_medium=email&utm_content=The+Weekly+China+Skinny&utm_campaign=20211102_m165346214_20211102+-+1&utm_term=2021+Beauty+Industry+White+Paper

 

B2B Marketing in the Post-LinkedIn Reality

Maimai 脈脈 is a homegrown social-networking platform for professionals to create business connections, the Chinese equivalent of Linkedin. It now has more than 80 million high-value real name users with more than monthly active users of 30 million.

Through Maimai, marketers can convey their advertising message into different types of Ad formats including Splash Ad, Native Ad, and instant message, etc. Additionally, marketers could target the audiences in different positioning based on their geographic location, gender, career position (C Levels/ Directors / Managers grade), job industry (Business / Legal / Finance/ Design/ IT, etc), and even their specific company.

Link: https://www.xinergy.global/maimai-the-chinese-linkedin/

 

The older Chinese consumers turning silver into e-commerce gold

A few months ago, the Chinese government was encouraging the biggest Chinese apps to prepare elderly-friendly versions. More than 264 million people, or 18.7% of China’s population, are aged over 60 in a country that is ageing rapidly, according to census results published in May.

COVID-19 forced many Chinese 60+ online making for an expanding population of “silver-haired” internet users who have made the move to online shopping in China in the past year, nudged by the coronavirus pandemic, government policy and e-commerce giants. JD reports that retirees living in major cities, with money to spend and plenty of time, were some of the most prolific shoppers since the pandemic, with over half of the goods catering to the elderly bought by users themselves this year.

In the first three quarters of this year, purchases by the silver-haired demographic grew almost fivefold year on year, with users focusing on leisure purchases, such as gardening supplies and package tours. To really tap this market, online vendors need to simplify their designs or offer user-friendly guides for their apps or websites.

Link: https://www.scmp.com/news/china/article/3153456/older-chinese-consumers-turning-silver-e-commerce-gold

 

GUCCI– burst game

For its product burst, Gucci, a worldwide luxury brand, devised an innovative H5 game that allows users to engage, comprehend items, and expose brands by avoiding obstacles in the tunnel.

Burst’s shoes “gallop” in a 3D three-dimensional colour tunnel. At the 8m position, there are two operation guide arrows. Users can use the up and down arrows to directly drag bursts around the tunnel to escape impending obstacles by clicking and dragging it. There are timers and score reminders in the game. If you run into any barriers, the game will automatically finish and the game results page will appear.

 

Luxury brands are ditching KOLs for virtual influencers in China: how Alexander McQueen, Dior and Prada are turning to digital avatars and AI idols to woo millennials

Making their way from music to fashion, virtual idols are paving the way for mixed reality initiatives, increasingly appealing to younger, digitally native consumers.

As more consumers move online, they will increasingly demand compelling narratives like Maie’s from their virtual idols. It seems, every luxury consumer will be able to hatch their own virtual idols in the future.

Link: https://www.scmp.com/magazines/style/luxury/article/3153210/luxury-brands-are-ditching-kols-virtual-influencers-china

 

 

 

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What’s New in China This Week?

November 2, 2021

How Chinese Retailers Are Reinventing the Customer Journey

China’s retail sector is both enormous and rapidly developing, with an estimated value of $5 trillion by 2020. It is also heavily computerised. And, as a result of the epidemic, digital has become a strategic priority for all retailers.

The authors draw from their research on Chinese retailers to explain five lessons that Western companies can learn from China as they develop their own digital market offerings:

  1. Create single entry points where customers can access all their potential purchases.
  2. Embed digital evaluation in the customer journey.
  3. Don’t think of sales as isolated events.
  4. Rethink the logistical fundamentals.
  5. Always stay close to the customer.

Link: https://hbr.org/2021/09/how-chinese-retailers-are-reinventing-the-customer-journey 

 

Luxury Brands and 11/11

Alibaba is actively promoting innovative digital retail solutions for luxury brands and is gradually expanding its virtual services and experiences. While the majority of luxury purchasing still takes place in physical stores, online and omnichannel expansion has constantly expanded – according to Bain & Co, China’s luxury internet penetration will increase to 23% in 2020, up from 12% the previous year.

Gucci, Vacheron Constantin, and Maison Margiela, for example, recently teamed with Tmall Luxury Pavilion to expand services previously only available in physical stores, such as membership benefits, sales associate consultations, and after-sales services.

This year’s 11.11 Global Shopping Festival, the world’s greatest retail extravaganza by sales, has over 200 luxury businesses offering a variety of services ranging from bespoke engraving to cleaning and repair services. Other highlights include a digital exhibition, an art presentation by a virtual influencer, Chopard and Cartier showcasing their items in 3D, AR try-on, and top executives joining firms’ live streams.

Link: https://www.alizila.com/alibaba-janet-wang-china-luxury-innovation-1111-shopping-festival/ 

 

China Brands Go Global

Report selected 100 Chinese brands present abroad and analyzed them. The purpose of the top 100 Chinese brands list was to look at consumer brands that have the most direct impact on global consumers – both in terms of sales and (more significantly) in terms of brand/audience impact and potential.

While many of the enterprises have their own websites, the vast majority of sales are made via ecommerce sites such as Amazon and AliExpress. While most brands have official accounts on three or more channels, social media is used more to enhance performance, such as digital advertisements (CPC), rather than to cultivate customer affinity. Brand content and organic growth are underserved because the focus is solely on advertising. Most brands have a small number of followers and a poor level of engagement.

Big event sponsorships: While these high-profile, high-budget endeavours are remarkable, they are often premature vanity projects for brands that have yet to gain traction in the market. These approaches are hoped to be fast-tracks to brand equity.

Link: https://www.talktototem.com/china-insights/china-brands-going-global 

 

WeChat Brand Channel

It’s a partnership between WeChat Pay and Channels; with this step, traffic from offline channels/mini programmes will be sent to WeChat Channels. There are five major benefits of using the Brand Channel.

  1. Turn to Channel’s video after offline payment: When users complete the payment, they will see the Brand Channel button and watch the videos
  2. Reserve the live stream after payment: The brands can add this feature to the payment page, so the users can make a live stream reservation during their payment
  3. Brand hongbao: The brands can send hongbao by QR code, when the users scan the QR code, they will receive the hongbao and use it when they pay the bill. On the receipt page, the users can get in the brands’ channels and explore the dedicated video
  4. Turn to Channel’s video after mini-program payment: The brands can add the Channels’ content in the mini-program page, so when the users browse the page, they can see the video amongst the products
  5. Coupons: The brands can combine the video to the coupon, so the users can watch the video when they get and use the coupon

Link: https://mp.weixin.qq.com/s/ZtJ5Pji6KwcPTMwS51PNEQ 

 

WeChat update version 8.0.16 supports one-click to close personalized advertising

WeChat version 8.0.16 shows an updated pop-up window with revised privacy protection guidelines to advise users of changes to privacy guidelines and information sharing disclosure.

The “personal information and permissions” entry has been added to the bottom of the “WeChat – I – Settings – Privacy” interface.

You can now turn off “personalised advertising” with a single click in WeChat’s “personalised advertising management” and set the switch to “closed.”

It’s important to note that turning off “personalised advertising” does not imply that you’ll never see advertisements on WeChat again. Instead, you will turn off the display of ads that are relevant to you, but you will continue to get broad commercials.

Link: https://mp.weixin.qq.com/s/fV5k4jVUCtvpzjO3UGFVXA

 

One mobile phone number can register multiple WeChat ID

A new function appears in WeChat version 8.0.15, which allows users to quickly register another WeChat signal without an additional mobile phone number.

You must also carry out real-name authentication of WeChat payment if you need to transfer, send, and receive red envelopes and other operations in WeChat without binding your mobile phone number. You are not required to bind your mobile phone number if you need to transfer, send, and receive red envelopes and other operations in WeChat without binding your mobile phone number.

Link: https://mp.weixin.qq.com/s/h5Tlo2NIsfVLlZMpISRbFg

 

Meta’s chief of Metaverse tells us what the future holds for the former Facebook

Meta aims to build solutions to social media problems that have yet to be solved in the future.

Meta has big aspirations for the metaverse. On Instagram, there’s a huge universe of artists, and there are a lot of people creating stuff on Facebook. Virtual commodities will undoubtedly play a significant role in Meta’s metaverse.

Link: https://www.cnet.com/tech/computing/metas-chief-of-metaverse-tells-us-what-the-future-holds-for-the-former-facebook/ 

 

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Podcasts in China

November 2, 2021

Despite the fact that podcasting has been around for almost two decades in the United States, with more than 41% of adults aged 18 and above listening to a podcast at least once a month in 2021, it is still a relatively new industry in China. Listeners in China are more familiar with government-controlled broadcasting and state-owned public radio than with on-demand audio content from private creators.

Ear Economy in China

However, in recent years, the internet audio business, also known as the “ear economy,” has grown rapidly. Podcast listening has become a regular fad in many young Chinese consumers’ lives. 

As a result of the expansion of commuter culture and easy access to different media content. Given the pervasiveness of smartphones in Chinese culture, all audio-visual content is now mobile-friendly. This is one of the factors that can be used to explain why podcasts are becoming more popular. 

Chinese podcast listeners are estimated to reach 85.6 million by the end of 2021, second only to the United States. Nonetheless, given China’s massive population, this only accounts for 6.1% of the country’s population, indicating that there is plenty of room for the market to expand.

 

The Growing Popularity of Podcasts in China

China’s low adoption isn’t due to a lack of interest in digital audio. In this sense, Chinese consumers have a wide range of options, including ebooks, audio live streaming, social audio, and karaoke, all of which fight for ear time. 

Regardless, China’s desire for podcasts—which is defined as any audio-first serialised episodes that can be accessed via digital streams or downloaded, as well as heard as podcasts via video platforms—is apparent. 

Chinese tech companies, including some of the country’s most well-known digital giants, are jumping into the booming audio category, establishing dedicated “podcast” sections. Tencent Music and Entertainment, for example, has recently been promoting “long-form content.” 

 

Chinese Podcast Listeners’ Demographics

The root of China’s developing podcast market is a growing demand for tailored, personalized, and individualised media tastes as a result of economic liberalisation and urbanisation. The thriving sector includes a wide range of themes, from travel to hobbies — and everything in between.

In terms of audience, over 68.2% of respondents live in top-tier or coastal cities such as Beijing, Shanghai, and Guangzhou, according to the PodFest China 2020 Chinese Podcasting Listeners and Consumption Survey. The majority of podcast listeners are under the age of 35, with more than 88.5% being under the age of 35.

Podcasting is also popular among the well-educated, with 86.4% of listeners having a bachelor’s degree or more, but only 28.6% of short-video users had attended college.

 

Conclusion

China’s podcast sector appears to have a bright future. In 2019, China’s podcast sector generated US$193 million in revenue, making it the world’s fastest-growing podcast market. The market is expected to grow at a 37.3% CAGR before 2024, reaching a total value of US$689 million in 2024, owing to increased listener numbers, making China the world’s second-largest market if the revenue target is met.

However, the market expansion will need to be closely monitored in the future. With only 6% of the population reporting that they listen to podcasts, there is a lot of room for expansion. As a result, starting a podcast for your company could be a wise decision for the future of your business.

Do you think starting a podcast is simple? Well, think again. You do need considerable support and guidance. Hit us up to get the ins and outs sorted professionally and launch a cohesive campaign.

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China’s Weekly Overview

October 26, 2021

Does Your Brand Need a Weibo Profile?

Many international companies begin their Chinese social media presence with a WeChat official account, but having a Weibo account can also help them gain awareness.

Weibo posts are visible to more users and non-followers than WeChat posts because of a distinct feed structure. However, as Weibo is one of China’s oldest social media sites, new platforms are appearing all the time. It’s best to assess target audience behaviour and then invest funds and effort into the most relevant combination of social media, depending on the target demographic.

Link: https://mp.weixin.qq.com/s/VGp5wjodQJ_tDkHhgelQFQ 

 

Bilibili Marketing Guide: E-commerce, KOL Promotion & Ads

Bilibili, a famous youth-oriented video streaming and sharing network, is thought to be the most similar to Youtube. However, Bilibili’s distinguishing characteristics and distinct community culture set it apart from its western equivalents.

The bullet comments mechanism, which displays all incoming comments on the screen, is one of Bilbili’s most noticeable features. Chinese viewers prefer watching films with live comments because it gives them a greater sense of belonging and sharing. This sense of belonging contributes to the platform’s growth: Bilibili is used by one out of every two young people in China. Young individuals under the age of 35 make up 86% of the 202 million Monthly Active Users on the network.

Engagement rates also benefit from this feeling of community: users spend more than 80 min per day on the platform, generating 4.7 billion interactions per month. Bilbili now offers official KOL collaboration, e-commerce integration and ads solutions.

Link: https://mp.weixin.qq.com/s/QFI34y5qjRJ7OiPK22rLgA 

 

Brands invest in Metaverse 

From Bloomberg, the scale of Metaverse will be 800 billion USD in 2023. In this double 11, there are not just real products, we also meet some new friends from Metaverse. Small holds an online exhibition called the Metaverse Art show, users can search in Tmall the keyword and then enter in the Show. 

For example, Burberry launched a digital elfin, which is unique and in limited edition, you can buy this and get a limited scarf. Tmall also collaborated with the other 9 brands and released Musical Instruments. One brand created just one instrument and the users can buy it.

All these NFT products were made by the Ant Chain, the Alibaba blockchain supplier. They design, produce digital products for the brands, and also provide the cochain and distribution. 

Link: https://mp.weixin.qq.com/s/JMCsZPs61DmGYA6gD3pP-g 

 

Kuaishou brand advertising multi-form help live marketing

  • Eye-show: Excellent exposure drainage — Open screen Eyemax straight to the broadcast room. Eye-show is mainly suitable for strong brand promotion, new product launch and other scenarios. In the past, high-quality entry data was favoured by advertisers.
  • Feeds – show: Video streaming native scene – a single column of information flow straight to the broadcast room. The product form can meet the marketing demands of the brand-customer information flow directly to the live broadcast room. At the same time, based on the basic ability of the brand information flow, the material can be saved to the customer’s personal home page for a rich promotion, laying a foundation for the subsequent content marketing.
  • Simple broadcast room: Fully immersive live streaming experience –A single column of information flows straight to the studio and then escalates. Brand information flow new live fully immersive style — advertising style simple studio and through the show live broadcast real-time images in a single stream, achieve the purpose of life for heating, the real-time image lead to the recommended flow, further shorten the user to watch live path, native display optimization experience, and expand the clickable region into the air.

Link: https://wemp.app/posts/b7ea071a-ed55-457e-96fe-f9aa69b7d1a0 

 

 

 

 

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The Idol Economy in China; Who are KOLs and KOCs?

October 25, 2021

Idolising stars and celebrity worship has become an increasingly important part of modern Chinese culture. Chinese Gen Z’s are continuously engaged with internet information as a result of growing up in a connected environment, and they are especially attentive to what their idols have to say.  

With the debut of innumerable TV series, brand endorsement deals, and the growing KOL market in China, these trends have naturally aided the rise of China’s idol economy. 

Who are KOL’s and KOC’s?

In a world dominated by social media and influencer marketing, key opinion leaders (KOLs) and key opinion consumers (KOCs) have become integral aspects of brands’ online marketing strategies to raise brand knowledge and recognition among their target audiences. Despite the fact that they both advertise products or services, they are two very different things.

A key opinion leader (KOL) is a well-known figure whose endorsement of a product is valued by a larger audience. Individuals who are trusted and respected for their status quo or expertise are known as KOLs. KOL’s include people such as actors, models, and celebrities, as well as people who have built a name for themselves on social media platforms. 

KOCs, on the other hand, are valued for their insight into products and services based on their personal experiences. They are people that do not conform to the status quo, making them relatable to the public. Although KOCs have a smaller following — only a few thousand — than KOLs, their fans are extremely loyal. 

Benefits of working with KOL’s and KOC’s

 

  • Working with idols is more profitable
    Young Chinese fans idolise their stars and are willing to go to great lengths to support their celebrity idols. According to a recent survey, roughly a third of “Gen Z” respondents said they’d be willing to buy products that their idols recommended or used, and a fifth said they’d be willing to watch their idol’s Livestream and purchase virtual gifts.

 

  • Chinese celebrities do not fear marketing
    Sponsorship arrangements are often avoided by Western celebrities because they believe that too much exposure could jeopardise their reputation. With Chinese idols, however, this is not the case. The local celebrities are easily involved in marketing and brand endorsement efforts to promote items via a variety of channels. This is due to censorship, which means that projects in China can be easily cancelled or repealed, thus idols must ensure that they have other sources of income.

 

  • The fan culture is a collaborative effort
    A form of collectivism popular in China suggests that fans affect one another during the purchasing process, and studies demonstrate that “the more collectivist a person’s orientation, the more vulnerable he or she will be to social influence in the purchase decision. As a result, if Western businesses can win over the heart of one hardcore idol lover, they may be able to win over the entire fan base.

Conclusion

Marketers and retailers benefit from the idol economy, but few multinational companies are yet to capitalise on Chinese celebrities’ fame. This is primarily due to Western corporations’ continued lack of understanding of the Chinese fan economy and the youthful, impulsive consumer base that supports these idols. 

The idol economy is expected to grow in the next few years, therefore international brands looking to stay ahead of the competition should seek closer links with the Chinese stars.

However, though the idol culture is prevalent in China, it is vital to exercise additional caution when selecting a reputable KOL, as there have been various KOL scandals in the past, and the Chinese government is attempting to simmer down the idol economy. As a result, seeking advice from a skilled partner is recommended.

Working as a partner, KRDS offers the expertise and abilities you need, including access to the relevant KOLs for your business and the know-how to quickly create Chinese social media KOL partnerships that meet your goals. We can also help B2B businesses with KOL collaborations by partnering with other renowned official accounts in the industry or niche experts. Please contact us to discuss further.

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What Happened in China This Week?

October 19, 2021

Chanel Takes on the Resale Market With One Bag per Person per Year Policy

Chanel limits the number of purchases for its most popular handbags to one of each per customer per year. The move is aimed at preserving the uniqueness of luxury goods, since the resale market has exploded in recent years, with proxy purchasers buying out stocks and diluting the brand experience when reselling to their own clients. Furthermore, China’s second-hand market is expanding.

China is well-known for its vast resale grey market, which is overseen by plenty of daigous. According to BCG estimates, Chinese consumers will spend $35 billion in the global luxury market in 2020, with $28 billion (80%) paid through the usage of a daigou service.

Link: https://jingdaily.com/chanel-limit-purchases-handbags-resale/?utm_source=Jing+Daily+Subscriber+List&utm_campaign=b5b170f8dd-EMAIL_CAMPAIGN_2020_03_12_06_39_COPY_01&utm_medium=email&utm_term=0_8dec01cd8d-b5b170f8dd-408268421 

 

Taobao launches a new feature to embrace Double 11 shopping festival

Taobao launched a new feature called “Planting Grass Machine” 种草机 where users can browse product recommendation reviews that are posted by other users. It’s supposed to help consumers make better consumer decisions based on peer recommendation and it’s supposed to offer more variety of content and reviews than just KOL endorsements.

Any keyword typed in the “Plant Grass Machine” will take the user to a page of relevant lifestyle-sharing content.

Link: https://daoinsights.com/news/taobao-launches-a-new-feature-to-embrace-double-11-shopping-festival/ 

 

Double 11 x KOL’s reality show

In China, Livestream shopping has become a new trend, with more and more firms using it to market their products. This year, Austin, a well-known KOL, debuted a reality show called the Girls’ Offer. We can watch the show on Weibo, the Red and Douyin. During the show, we can see how he negotiates the price with the brands (most of them are cosmetics brands) and how the brands react to the challenges.

As the double 11 is coming, this show is like a teaser. The brands can get exposure before the big event, Austin will enhance his image and bring more traffic to his Livestream thanks to his professionality, the consumers can know in advance which brands will have the best offer for them.

Link: https://video.weibo.com/show?fid=1034:4690150597525601 

 

Tencent’s WeChat to stop routinely accessing photos after a tech influencer publicized the behaviour on Weibo

WeChat’s background scanning for new photos was said to run every few hours and found using Apple’s new “Record App Activity” feature in iOS 15. The company said the behaviour will be removed from the app in a future update, but other apps have been found to do the same thing

Background scanning for new photos “will be cancelled in the new version”, a company representative said. 

In recent years, China’s big tech businesses have been under increasing pressure to address privacy concerns. In 2019, the Ministry of Industry and Information Technology began checking apps for privacy issues on a regular basis. To date, it has identified over 1,300 apps for having too many permissions, illegally gathering user data, and misrepresenting customers.

Link: https://www.scmp.com/tech/big-tech/article/3151762/tencents-wechat-stop-routine-scans-photos-after-tech-influencer 

 

LinkedIn’s China retreat stems from regulatory and competitive pressures as local recruitment platforms prosper

The decision comes only two weeks before China’s Personal Information Privacy Law, which is one of the strongest data protection laws in the world, goes into force. In China, where job seekers and professional networkers have a variety of options, LinkedIn had only made a limited impact.

LinkedIn first entered China in 2014, and with its partial exit, it has become the final big US social media company to leave the nation.

Link: https://www.scmp.com/tech/tech-war/article/3152526/linkedins-china-retreat-stems-regulatory-and-competitive-pressures  

 

Why Brands Need WeChat Index

Based on the official explanation from WeChat Index, there are two main ways:

  • Brands can create related content on WeChat, such as WeChat articles, videos, or advertisements, to increase their exposure.
  • Brands can improve the quality of content that is related to the keyword.

Brands may assess their level of popularity on WeChat and so determine whether they are top-of-mind for Chinese customers by watching the WeChat Index. Brands may also determine the return on investment of marketing campaigns by comparing their WeChat index records to the campaign dates and determining which days have the highest search volume.

Link: https://www.luxurysociety.com/en/articles/2021/04/wechat-luxury-index-2021-social-commerce 

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WeChat for Education Sector

October 18, 2021

With the growing competition in the foreign education market, education brands are looking for new ways to attract Chinese students, such as incorporating e-learning courses, offering home and distance learning, and establishing physical campuses in China, among other things. As the educational landscape becomes more digitally disrupted, most educational marketers have begun to embrace digital platforms and compete in the brand and marketing area.

With over 1 billion registered users till Q1 2021, 780 million using WeChat Moments and 400 million using Mini Program, WeChat can be greatly beneficial to education sectors.

How does WeChat benefit the education sector?

One of the most difficult challenges for educational institutions such as colleges is building an efficient content marketing strategy that communicates to all of their various audiences.

WeChat advertising comes in handy in this situation. Because of WeChat’s developed digital ecosystem and vast user database, it is a common tool for education brands to leverage in their digital marketing plan. Marketers may use WeChat’s smart data capabilities to execute targeted ads and obtain vital consumer insights. 

Creating well-developed, highly detailed personas — fictional characters that encompass a certain target group or demographic, based on market research and genuine data – is one of the first steps in constructing an efficient content marketing strategy for educational organisations on WeChat.

 

Here are some ways education sectors can leverage the WeChat platforms:

  • Product Promotion
    WeChat advertising is helpful in guiding visitors to online sale sites when a business is launching a new collection or wants to promote hero products and stimulate direct sales through its marketing.

    To advertise its Chinese EMBA courses, the Chinese University of Hong Kong conducted a WeChat marketing campaign. The ad’s creativity enticed users to schedule a one-on-one inquiry session in Guangzhou or Shenzhen. Users were routed to the university’s official website when they clicked on the ‘details’ button.

    WeChat advertising is applicable to a wide range of scenarios, and brands can discover the appropriate solutions based on the characteristics of various sectors. 
  • Lead Generation Campaign
    In its ad structure, WeChat advertisements can enable simple sign-ups for lead generation campaigns. During the campaign, user conversion can be successfully boosted, which can also lead to increased brand recognition.     

    A WeChat moments ad intended at increasing the number of direct sign-ups for an education service company that provides counselling and help for students choosing international universities. The ad presented the major selling features of its service and offers with a basic creative and provided a list of its partnered schools and colleges throughout the world.

 

  • Others
    WeChat also provides other services like selling webinars or one-on-one coaching sessions, selling books and products, translations, etc. Students can see everything from scientists teaching quantum physics to professors providing writing tutorials for college applicants. Amateur enthusiasts can also learn from mountaineers, hikers, and photographers.

Conclusion

The development of mobile technology has ushered in a new era of informal, personalised, lifelong learning outside of the classroom. However, when it comes to efficiently implementing mobile learning, we’re still figuring it out.

WeChat is installed on practically every other person’s smartphone in China, as it is widely used in almost every field of life. This is the only app that overseas students in China use. As a result, any company looking to establish a presence in China’s education market should consider starting with a WeChat account and leveraging the available tools.

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