E-commerce Archives

AI Tools, Smarter Discounts & Winning Plays: 618 Strategies for Beauty Brands

June 13, 2025

The 2025 618 Shopping Festival has revealed not just the strength of China’s e-commerce, but a strategic shift powered by AI, refined platform tactics, and tighter content-commerce integration—especially for the beauty sector.

AI Takes Center Stage

AI quietly became the engine of this year’s festival. Platforms like Taobao and Tmall deployed advanced tools such as Quanzhantui, which assisted 1.4 million merchants in campaign performance optimization. Their new “Image-to-Video” feature alone generated over 1.5 million videos in the run-up to 618, allowing beauty brands to scale production with unmatched speed and consistency.

In May, over 100 million pieces of AI-generated content were created by Alibaba platforms, helping brands reduce costs and maintain high engagement velocity.

Rule Changes and Real Impact

This year, Taobao and Tmall simplified their promotional mechanisms by eliminating complicated cross-store discounting. Instead, a universal 15% discount and category-specific vouchers created greater transparency and increased conversion rates.

The simplified pricing approach also helped:

Increase basket size
Lower cart abandonment
Improve campaign forecasting and marketing ROI

Still, users could stack up to 4+ coupons, leading to ongoing complexity and risks of exploitation via returns.

Return of International Beauty Brands

International giants reclaimed dominance during 618:

L’Oréal, Estée Lauder, Lancôme, and SkinCeuticals surpassed 100M RMB in sales within 30 minutes.
Local brand Proya was the only domestic contender in the same range.

Why? Cleaner inventories, global price-matching, exclusive discounts, and better member engagement strategies re-energized consumer trust.

Platform Differentiation Defines Strategy

Each platform reinforced its unique edge:

Tmall/Taobao remain brand-building powerhouses (45.1% market share, +8.5% YoY growth).
JD.com leaned into sustainable luxury with its “Green Impact Initiative.”
Douyin capitalized on algorithmic DTC performance.
Xiaohongshu (RedNote) emerged as the go-to discovery engine for functional skincare.

Content-Commerce Convergence

Cross-platform integrations like Tmall × Xiaohongshu’s “Red Cat Plan” created seamless discovery-to-checkout flows. Brands embedding Tmall links into RED posts saw a 27% lift in click-through-to-conversion.

Livestreaming’s Evolving Role

While year-round livestreaming is now common, 618 remains a high-intensity branding moment. Brands leverage the event for:

Launching new SKUs
Testing pricing elasticity
Generating strategic insights ahead of Double 11

Premium brands are more cautious with discounts, using livestreams strategically rather than constantly.

What This Means for Beauty Brands

618 is no longer just a discount-driven spike—it’s a mid-year strategy checkpoint. Success now depends on a refined mix of:

AI-powered content production
Platform-specific strategies
Transparent promotions
Commerce embedded in community

Want to future-proof your brand’s 618 strategy or improve your China e-commerce game with AI and integrated platform tactics? Contact us today to craft a data-backed, conversion-focused strategy tailored to your needs.

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9 Proven Strategies for Foreign Brands to Succeed on RedNote

May 16, 2025

RedNote (Xiaohongshu) has become a crucial platform for lifestyle-focused social commerce in China. With a strong base of Gen Z and millennial users, RedNote offers foreign brands a powerful entry point—if content is executed well.

Examples of Galeries Lafayette’s official RedNote (Xiaohongshu) account content, including branded posts, influencer videos, product promotions, and CNY marketing campaigns

Here are 9 proven strategies that help brands stand out, gain traction, and convert consumers on RedNote.

1. Choosing the Right Visual Elements

High-quality visuals are essential to gain attention on RedNote, especially on a platform rooted in shopping discovery. Authentic product photos—especially those that look like they’re taken by users—outperform overly commercial images.

Your cover image heavily influences click-through rates, and user-generated-style visuals tend to generate better engagement and higher conversions.

2. Localize Your Content

Translation alone won’t help your brand stand out. With over 56% of brands on RedNote being local, cultural alignment is key.

Foreign brands need to adapt messaging and visuals to Chinese tastes, participate in local events, and ensure language is in simplified Chinese with relevant slang and expressions. Professional translation is highly recommended over free tools.

3. Implement a Solid Influencer Marketing Strategy

Influencers remain central to social commerce in China. However, the shift is moving toward KOCs (Key Opinion Consumers) and Micro-KOLs, who offer more authentic and relatable content.

Use platforms like:

Pugongying – RedNote’s official KOL marketplace
Qiangua – A third-party tool offering in-depth analytics and price estimates

These tools help identify the right influencer partnerships based on engagement, niche, and audience fit.

4. Launch a Brand Promotion Through Ads

While organic content drives trust, paid content helps reach niche audiences. RedNote offers formats such as:

Paid KOL collaborations
In-feed/native ads
Search ads (placing your brand in top search results for relevant keywords)

Combining organic and paid tactics is essential for visibility and conversion.

5. Optimize for RedNote’s Social Search Function

RedNote users now skip traditional search engines and look directly within the app for product recommendations.

To appear in these results, your content must be keyword-optimized—using trending search terms in titles, captions, and hashtags. Conduct research on term popularity and search volume within your niche.

6. Long vs. Short Content

Brand accounts generally perform better with longer, keyword-rich content (about 500 characters), while individual influencers might gain engagement with just emojis.

Use a blend of rich descriptions and emojis for better readability and stronger reach through RedNote’s search algorithm.

7. Generate Traffic Through Lucky Draws

RedNote offers a built-in feature for lucky draws, where users follow, like, or bookmark to enter.

These campaigns attract initial attention—even from freebie seekers—but can go viral and lead to brand discovery by more qualified leads. Sephora is one success case, generating 1,000+ engagements with a lucky draw.

8. Utilize RedNote’s Live-streaming Features

Live commerce is rising fast on RedNote. Though platforms like Taobao and Douyin lead the category, RedNote is gaining momentum, particularly in beauty, food, and maternal product categories.

During the Spring Festival, the platform hit 198M RMB in sales via livestreams, with users valuing both interactivity and authenticity in real-time product showcases.

9. Participate in E-Commerce Shopping Festivals

Leverage China’s e-commerce calendar—especially events like:

Lunar New Year
National Day
Women’s Day (key on RedNote due to its largely female base)
RED Friday – RedNote’s version of Black Friday, from late November through early December

Participation in these events can significantly boost visibility and sales when paired with strategic promotions.

Final Takeaway

RedNote is more than a content-sharing platform—it’s a full social commerce ecosystem. For foreign brands, understanding and leveraging these 9 strategies is critical to building relevance and success in China’s competitive digital space.

Want to localize your RedNote strategy with confidence? Contact us today to build a plan that drives content, community, and commerce.

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6 Keyword Categories Every Brand Needs for Xiaohongshu Success

April 24, 2025

Understanding Xiaohongshu’s dual-track content distribution—discovery and search—is crucial for any brand looking to optimize its keyword strategy. On the “Discovery” page, the algorithm matches content quality with user interests, casting a wide net for potential reach. Meanwhile, the “Search” page is where users enter specific keywords—direct signals of intent—allowing for precise targeting.

These two ecosystems are closely linked. If your note achieves high click-through rates from search, Xiaohongshu’s system will then recommend it to more similar users, creating a “search exposure → interaction → discovery recommendation” flywheel effect. This explains why a post with little initial traction can suddenly explode months later: as your keyword strategy steadily surfaces content to new audiences, accumulating clicks will eventually trigger the algorithm’s next-level recommendations.

Many brands rely solely on brand, category, or pain-point keywords—but this isn’t enough. Effective keyword planning starts with understanding the user’s decision process.Below, we break down the six must-use keyword categories every brand should incorporate into their Xiaohongshu strategy with actionable content tips for each.

1. Category Keywords – Sparking Initial Interest

These are broad terms like “electric toothbrush” or “hydrating essence.” Users searching these are just beginning to explore a solution.

Content Tip: Create product comparison guides, “how to choose” lists, and expert overviews to position your brand as an authority from the start.

2. Pain-Point Keywords – Targeting Strong Motivation

Keywords such as “yellow teeth,” “blackheads,” or “cakey foundation” reveal urgent, specific problems.

Content Tip: Use before-and-after tutorials, real-user stories, or quick-fix hacks that put the problem and your product’s solution front and center.

3. Scenario Keywords – Contextualizing Your Value

Searches like “travel-friendly,” “workout-proof makeup,” or “summer skincare” show users are thinking about practical usage scenarios.

Content Tip: Highlight your product in situational lists (“Best gym bag essentials,” “Must-haves for business travel”), matching benefits to real-life moments.

4. Competitor Keywords – Winning the Final Decision

Terms like “Usmile vs. Philips” or “best foundation for oily skin” indicate a user is comparing options and ready to buy.

Content Tip: Publish side-by-side comparison tables, influencer “battle” reviews, or test results that clearly show your strengths over competitors.

5. Demographic Keywords – Precision Targeting by User Group

Tags like “student budget skincare,” “sensitive skin routine,” or “petite fashion finds” let you target niche audiences in a crowded market.

Content Tip: Develop campaigns for specific groups (e.g., “Dorm room beauty hacks for students”) using relatable settings and tailored product combos.

6. Long-Tail Keywords – Unlocking Niche Demand

These hyper-specific phrases (“orthodontic toothbrush for teens,” “pregnancy-safe face masks”) may have lower search volume, but much higher conversion rates.

Content Tip: Create deep-dive content for each long-tail keyword—listicles, guides, or solution stories—to capture these motivated, under-served segments.

Want help optimizing your Xiaohongshu keyword strategy? Contact us for tailored, expert support that drives results.

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WeChat: China’s Most Sustainable E-commerce Platform

March 20, 2025

For foreign brands entering the Chinese market, discussions around digital marketing often focus on the latest trending platforms like Douyin and Xiaohongshu (RED). While these channels generate significant buzz, WeChat remains the most critical and enduring digital platform in China.

Despite not always being in the spotlight, WeChat continues to be the country’s most widely used app and an indispensable tool for brands aiming to build lasting relationships with consumers. Unlike major e-commerce marketplaces such as Tmall and JD, which demand high advertising spend and platform commissions, WeChat provides brands with a lower-cost alternative for customer acquisition, direct engagement, and complete ownership of consumer data.

WeChat: More Than Just a Messaging App

Originally launched as a messaging app, WeChat has transformed into an all-encompassing digital ecosystem, offering brands multiple avenues to engage consumers:

Official Accounts – A powerful tool that functions like a combination of a website, blog, and email marketing system, enabling brands to share content, interact with users, and build a loyal community.
Mini Programs – Embedded apps within WeChat that provide seamless e-commerce, customer service, and loyalty features without requiring users to leave the platform.
WeChat Pay – An essential mobile payment system that dominates China’s cashless economy.
WeChat Channels – A short video and livestreaming feature that competes with Douyin and Kuaishou, offering brands an opportunity to engage users organically.
WeChat Groups – Exclusive communities where brands can foster deeper engagement and collect valuable consumer insights.

This extensive ecosystem enables users to consume content, interact with brands, and complete purchases all within a single platform, making WeChat an indispensable tool for digital commerce in China.

WeChat as a Digital Storefront for Brands

Unlike in Western markets, where consumers typically turn to Google or a company’s website for brand information, Chinese consumers often search directly on WeChat. This makes WeChat the go-to platform for discovering brands, learning about products, and engaging with customer service.

For many businesses, WeChat effectively replaces the need for a traditional website. However, many foreign brands underutilize their WeChat presence, with outdated content, inactive accounts, and broken links reducing engagement. Keeping a WeChat Official Account updated and interactive is as important as maintaining a website in other markets.

A Fully Owned Channel for Brands

One of the biggest challenges for brands operating in China is balancing the high cost of customer acquisition with long-term retention. Unlike Tmall, JD, and Douyin, where brands must constantly pay for visibility, WeChat allows businesses to build and nurture their own audience. This offers several advantages:

Lower Customer Acquisition Costs – WeChat provides a cost-effective alternative to traditional e-commerce platforms, where brands must bid for visibility.
Full Data Ownership – Unlike marketplaces that control customer data, WeChat enables brands to collect and analyze user interactions directly.
Seamless Omnichannel Integration – WeChat bridges online and offline engagement, making it easier to connect with consumers across multiple touchpoints.

For brands looking for a long-term, cost-efficient strategy in China, WeChat presents a powerful direct-to-consumer (D2C) model.

WeChat’s E-commerce Evolution

While platforms like Douyin and RED attract attention with viral trends, Tencent has been steadily enhancing WeChat’s e-commerce capabilities. WeChat Channels has emerged as a significant competitor to Douyin’s short video and livestream shopping ecosystem.

WeChat has streamlined merchant onboarding, simplified the sales process, and expanded commerce features to allow product purchases across multiple touchpoints—including posts, search, chat, and even gifting features. These improvements have led to substantial growth:

A 3x increase in active sellers last year
A 200% surge in total sales volume

This growth signals that more merchants are seeking sustainable alternatives to traditional e-commerce marketplaces and that consumers are increasingly shopping within the WeChat ecosystem.

Where Should Brands Focus?

Many international brands question whether WeChat should be prioritized over newer platforms like Douyin and RED or traditional marketplaces like Tmall. The answer depends on a brand’s objectives:

Douyin & RED – Best for brand awareness, viral content, and impulse-driven sales.
Tmall & JD – Ideal for reaching high-intent shoppers and providing an official retail presence.
WeChat – Most effective for fostering long-term engagement, driving repeat purchases, and building brand loyalty.

A well-rounded China digital strategy should leverage multiple platforms, utilizing each one’s strengths to target consumers at different stages of their journey. WeChat remains a key pillar of this strategy, particularly for brands looking to develop a sustainable, direct-to-consumer business model.

Leverage WeChat for Sustainable Growth in China

Navigating China’s complex digital landscape requires a tailored approach. Whether you’re looking to enhance your WeChat strategy or integrate it into a broader digital marketing plan, our team can help you optimize your presence and drive results.

Contact us today to explore how WeChat can support your brand’s long-term success in China.

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Key KOL Marketing Trends in China for 2025

March 7, 2025

Influencer marketing in China is evolving rapidly, with brands leveraging new strategies to maximize engagement, sales, and brand authenticity. As we enter 2025, several key trends are reshaping the landscape, offering fresh opportunities for businesses to optimize their influencer collaborations. Here’s what to expect and how to stay ahead of the curve.

Key Influencer Distribution Across Major Social Platforms

1. More Direct and Sales-Driven Influencer Marketing

Influencer marketing in China is shifting from subtle brand mentions to more strategic, sales-oriented collaborations. Brands are increasingly focusing on three main approaches:

Influencer Branding – Strengthening brand presence within influencer content to create a deeper connection with audiences.
Influencer Seeding – Tapping into influencers’ personal experiences and testimonials to build trust and drive brand consideration.
Influencer Conversion – Utilizing influencer-driven campaigns to generate direct sales, particularly through livestream shopping and interactive content.

2. In-House Influencer Strategies Are Growing

Many brands are shifting their focus from external influencers to internal brand ambassadors, known as KOBs (Key Opinion Bosses), KOSs (Key Opinion Sales), and KOEs (Key Opinion Employees). This approach enhances authenticity, builds trust, and offers a more cost-efficient way to engage with audiences while maintaining brand consistency.

3. The Rise of Micro-Influencers

Influencers with fewer than 1,000 followers are proving to be highly effective in driving engagement and conversions. Their smaller but highly engaged communities allow brands to foster deeper connections and build trust with their target audiences. As a result, micro-influencer marketing is becoming an increasingly attractive option for brands looking for cost-effective and results-driven campaigns.

4. International Influencers Entering Xiaohongshu

With the rise of global influencers on Xiaohongshu (RED), largely due to the “TikTok Refugees” phenomenon, brands now have a unique opportunity to collaborate with international content creators. This trend allows brands to reach a diverse audience, blending cross-cultural content strategies with localized marketing efforts to drive engagement and brand awareness.

Want to explore how these trends can enhance your marketing strategy? Contact us to develop a customized influencer marketing approach that aligns with your brand’s goals.

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How Xiaohongshu’s New AIPS Model Redefines Grass-Planting Marketing

January 10, 2025

Xiaohongshu 2025 Will Business Summit

At the 2025 WILL Business Conference, Xiaohongshu unveiled a groundbreaking marketing framework: the “AIPS Audience Asset Model.” This innovation aims to transform how brands measure and optimize their grass-planting (content-driven marketing) campaigns on Xiaohongshu. By integrating process measurement and outcome measurement, Xiaohongshu has equipped brands with actionable insights to enhance their marketing efficiency. Here’s a breakdown of the key takeaways and their implications for brands.

Understanding the AIPS Model

The “AIPS Audience Asset Model” divides audience engagement into five categories:

Awareness – General recognition of the brand.
Interest – Initial interest in products or services.
True Interest (TI) – Deep engagement and potential intent to purchase.
Purchase – Conversion into actual sales.
Share – Advocacy through post-purchase sharing and recommendations.

Xiaohongshu's AIPS Audience Asset Model

This segmentation allows brands to evaluate and optimize their strategies at every stage of the consumer journey. The model identifies more immediate and relevant user behaviors compared to traditional conversion metrics, offering brands a comprehensive view of audience engagement.

Measuring Grass-Planting Success

Xiaohongshu’s measurement framework operates on two levels:

1. Process Measurement

The AIPS model focuses on audience behavior within Xiaohongshu’s ecosystem, helping brands understand the nuances of user decision-making. For instance, while low-cost fast-moving consumer goods (FMCG) may require a focus on awareness to drive quick conversions, high-ticket items necessitate a deeper engagement with “Interest” and “True Interest” audiences.

2. Outcome Measurement

Outcome measurement is achieved through two primary methods:

Grass-Planting Alliance: This initiative integrates Xiaohongshu’s platform data with external e-commerce platforms like Taobao, JD, and VIP.com. Brands can track the direct impact of Xiaohongshu’s campaigns on off-platform conversions. For example, Xilinmen identified a high-converting audience segment (“refined white-collar workers”) and optimized their budget, achieving an ROI of over 15 during the 618 shopping festival.
First-Party Data Collaboration: Participating brands can analyze their omnichannel data to gain deeper insights into business performance. Xiaohongshu’s “Lingxi” platform now supports 5,000+ brands, offering accessible tools for data-driven optimization.

ROI (T+x): A New Way to Measure Success

One of Xiaohongshu’s key insights is the importance of ROI over time (T+x). While traditional ROI focuses on immediate returns, Xiaohongshu advocates for analyzing ROI across the consumer decision-making period. For example:

A ¥3,000+ robotic vacuum cleaner required 45-60 days to reach a tipping point in ROI due to the complexity of consumer decisions.
A ¥100 body oil, initially estimated to have a 7-day decision cycle, revealed a true cycle of 60-90 days. This discovery helped the brand target high-value audiences like expectant mothers, resulting in a 20% year-on-year GMV growth during Double 11.

Precision and Granularity: The Keys to Success

Xiaohongshu’s CMO Zhiheng emphasized that measurement is a means to an end: optimizing marketing strategies. The two pillars of this optimization are:

Granularity: Understanding consumer behavior, needs, and decision-making contexts.
Precision: Matching the right products with the most suitable influencers, content, and marketing channels.

Xiaohongshu's CMO Zhiheng

A compelling example comes from an outdoor jacket campaign. Xiaohongshu tailored content to specific mountains (e.g., lightweight jackets for Mount Tai’s night hikes versus UV-protective gear for Mount Siguniang). This hyper-targeted approach resulted in a top-four search ranking for high-end jackets and a 40% reduction in e-commerce platform costs.

Implications for Brands

Xiaohongshu’s AIPS model and measurement solutions mark a shift toward personalized, data-driven marketing. By understanding niche audiences and aligning strategies with consumer decision-making cycles, brands can achieve better ROI and long-term growth.

Interested in unlocking the full potential of Xiaohongshu for your brand? Reach out to us today to explore tailored strategies that drive results!

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Latest News on China’s Market

August 7, 2023

1. Estée Lauder taps Asia’s male beauty market with Manchester United partnership

Beauty and skincare giant Estée Lauder has inked an exclusive partnership deal with Manchester United in hopes of tapping the club’s fans in China and the Asia Pacific region.
In China alone, the men’s beauty market was projected to surpass $10 billion in 2022 and could reach $33.4 billion (240 billion RMB) by 2027.
Most male consumers may be relatively new to the skincare game, especially when it comes to premium products.
In the first half of 2023, the GMV of men’s makeup on Douyin surged by 364.6 percent year-on-year. With this market being especially open to beauty and grooming, we’d bet that a clever campaign could work wonders.

LINK: https://jingdaily.com/estee-lauder-manchester-united-collab-male-beauty/

2. Male beauty’s next growth engine: Douyin

In the first half of 2023, the gross merchandise value (GMV) of men’s makeup sold via Douyin surged 365 percent year on year – Tmall and Taobao combined achieved 6.7 percent growth in the same period.
Chinese male beauty brands are quickly expanding on the short video app. Domestic labels claimed seven spots on Douyin’s top 10 best-selling mens’ skin care list, whereas international brands took three places.
Male skincare buyers’ profiles: Last year, 70 percent of men’s beauty purchases were made by women, according to a 2022 report from Xiaohongshu. But male buyers have caught up, now accounting for half of male cosmetics purchasers on Douyin.
The average age of the male makeup user is between 18 and 30 with an average price of $9.7 (69.2 RMB), significantly lower than on other platforms like Tmall and JD.com.
Cooperating with KOLs has proven to be a quick and effective strategy for businesses that want to scale up brand awareness. These influencers are crucial for spreading knowledge about beauty routines.

LINK: https://jingdaily.com/male-beautys-next-growth-engine-douyin/

3. McKinsey: Chinese consumers, brands ‘cautiously optimistic’ on tourism and spending

Chinese consumers are looking for better deals and sales across platforms like Douyin and Pinduoduo, where products are often sold for “half or less” than on more established competitor shopping apps.
McKinsey found that while many remained loyal to their favorite brands, 47 percent of respondents reported switching retailers to obtain a “lower price/discount.”
Travel, restaurants and apparel were the top categories consumers were spending on, the survey revealed.
However, international travel in June was still 58 percent lower than pre-pandemic levels, though the number of outbound flights from China is “rising rapidly.”

LINK: https://jingdaily.com/mckinsey-report-cautiously-optimistic-tourism-spending/

4. China ecological transition: a green revolution led by consumers

Keeping balance between satisfying the demand of country’s market, while preserving sustainable standards is challenging
Chinese consumers are demonstrating a higher attention to environmental issues compared to the previous years, this trend being reflected in several factors, from carbon emissions to locally produced goods.
In this sense, the pandemic has represented a turning point for the development of this trend inside consumer’s mindset, many of which are now willing to pay more for environmentally friendly products.
Case study of KFC: Thanks to “Exploring Carbon Reduction” and “The Journey to Carbon Neutrality” initiatives, introduced in their super App, KFC carried out a green rewards program that encourages consumers to not use disposable cutlery, favor in-store pickup, engage in waste sorting, etc.

LINK: https://mp.weixin.qq.com/s/HBf_m9WBZ2izfmQNFgOlvg

5. Pink burgers, platform Crocs and Malibu dream houses: Barbie’s global collab craze

Resale site StockX reported to Jing Daily it had seen more sales of Barbie products in July 2023 than any other month in the company’s history, double sales in July 2022.
Among so many names jumping onboard, from Vans, Kipling and Gap, to Pacsun and Nyx, one breaking through the Barbie collaboration noise online is Zara. The Spanish retailer launched a collection on July 21 (the movie release date) inspired by the fashion seen on screen, including a gingham dress, silk pajamas, and other clothing and accessories items
Though Zara, Vans, Nike’s Dunk Low sneaker, and Chanel’s themed efforts with the movie all made their way onto social media in China, the clothing and accessories collection from local fashion brand D’izzit is trending in the mainland.
Barbie mania is reaching all corners of commerce, from fashion all the way through to luxury hospitality. The W Hotel in Osaka, Japan, is one that’s proven a hit among netizens.
Thanks to Barbie nostalgia being at an all-time high, the IP’s pulling power feels unbeatable. Some consumers might be all pinked out, but this is definitely not the end of Barbiecore.

LINK: https://jingdaily.com/barbies-global-collab-craze/

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20 E-commerce Trends in China for Brands to Explore in 2023

January 19, 2023

China has the world’s largest e-commerce market. With an average growth rate of 6%, Chinese e-commerce revenue is expected to reach $2 trillion USD by 2025.

According to research firm Insider Intelligence, roughly 1 billion local consumers shopped on e-commerce channels across China in 2022, accounting for 45.3% of all retail sales online.

That’s huge! Right? All thanks to online communities and social commerce on popular apps like TikTok, WeChat, and Sina Weibo, which have long since become ingrained in Chinese culture.

In fact, Chinese consumers use their mobile devices for almost five hours every day, which they use for keeping in touch, making payments, shopping, plan trips, and more. Keeping all this consumer data in mind, companies should reconsider their 2023 investment plans as China relaxes pandemic-related restrictions.

Here are some of the e-commerce trends from 2022 for businesses to observe and reflect in their marketing strategies for 2023.

Chinese E-commerce trends to follow

1. Outdoor games

Due to the Winter Olympics in Beijing and the relaxation of travel restrictions, there’s a significant increase in demand for outdoor activities in China through 2022.

This led to a boom in winter sports, with a 300% increase in winter sports equipment sales on Alibaba’s Tmall platform between Jan. 31 and Feb. 4, including a 180% increase in skiing gear purchases. Outdoor gear and camping equipment sales also saw a boost on Tmall, doubling in March compared to the same period the previous year.

Several international brands, including Carver and Santa Cruz, announced plans to enter the Chinese market through Tmall Global, Alibaba’s cross-border e-commerce platform, during the previous mid-year shopping festival in June.

2. Furry babies

In China, pets are increasingly being treated like own children, with owners buying specialized clothing and technology for them.

During the first checkout period of the 11.11 Global Shopping Festival in November, pet food brands on Tmall saw a three-digit year-over-year growth in gross merchandise value.

Younger Chinese pet owners view their pets as children, they are also investing in digital gadgets like intelligent pet bowls and companion robots.

3. Metaverse

In 2022, the metaverse saw significant growth, and fashion companies began to experiment with its potential uses, including digital collectibles and virtual try-on services.

Digital collectibles, which allow brands to build a community of followers in both the metaverse and the real world, became popular in late 2021.

Nearly two dozen luxury brands released 37 digital collections on Alibaba’s Tmall Luxury Pavilion, and thousands of consumers purchased them.

More retailers are expected to use digital tools to engage customers and develop products for pets in the coming year, such as Burberry’s private digital salon for coat shopping on Tmall Luxury Pavilion.

4. Gen Z Shoppers

In China, Generation Z, a significant consumer group, accounts for approximately 15% of the population.

Despite their small size, they have a disproportionate influence on consumption trends and are one of China’s fastest-growing consumer groups on e-commerce platforms. As their purchasing power grows, they will account for nearly two-thirds of Tmall Global consumers, which is more than 17% of Tmall Luxury Pavilion consumers by 2022.

Gen Zers are also fueling the popularity of collectible toys in China, congregating to show off their latest purchases and exchange trend information, attracting investors such as Sequoia China.

5. Virtual Influencers

In 2022, artificial intelligence-powered digital creations gained popularity and became celebrities in their own right. They appeared on virtual catwalks, dance competitions, and livestream sessions. These virtual idols were used by Chinese brands to increase brand awareness and attract followers among China’s digitally native consumers.

According to market research firm Forrester, virtual influencers will become more common in the coming year, with a fifth of B2C brands in China using digital idols to improve the shopping experience for consumers by 2023.

6. Cross-Border E-Commerce

The cross-border e-commerce (CBEC) sector in China has experienced significant growth in recent years. Consumers in China are increasingly interested in international products and brands, fueling growth in the CBEC sector.

As a result, in order to meet this demand, many companies have entered the market, resulting in competition among CBEC platforms like Alibaba, NetEase Kaola, JD Worldwide Vipshop Global, Amazon Global, and Pinduoduo.

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7. Omnichannel retail

Through all points of contact, this cross-channel content strategy aims to improve the user experience and strengthen relationships with the target audience.

The goal is to make the transition between online and offline interactions (O2O) as smooth and consistent as possible, regardless of where the customer shops or interacts with the brand.

China is at the forefront of omnichannel retailing, with high customer expectations, smart sales assistants, mobile-first approaches, self-service kiosks, and the use of virtual and augmented reality.

8. Xiachen

Selling through social media to China’s lower-tier cities and regions is becoming more common. Lower tiers are happy to buy consumer goods with their extra money because their living expenses are lower.

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9. Fintech

Financial innovation and technology are increasingly competing with traditional methods of delivering financial services.

Chinese online banks are emerging as startups that provide straightforward financial services to individuals and institutions, particularly WeCash (unrelated to WeChat or Tencent). These banks frequently employ AI and machine learning techniques.

For instance, WeCash, which has 130 million users across five countries, enables people to easily obtain their credit score and submit loan applications. Additionally, using this big data-driven platform, institutions can develop their income-producing loan portfolio.

10. Cryptocurrency

In the Middle Kingdom, users and miners of cryptocurrencies are subject to strict regulation. China is looking for a new cryptocurrency market and country-specific solutions, much like it has done with social media platforms, a dedicated Chinese search engine (Baidu), and other tools and regulations that apply only to China.

China is now completing the preparations for the launch of its DCEP (Digital Currency/Electronic Payments), which was first conceptualized five years ago.

Unlike Bitcoin and other cryptocurrencies, DCEP is sanctioned by the government. The government will most likely distribute the new currency through conventional banks, making it completely centralized and identical to traditional paper money. The Belt and Road Initiative (BRI) and other development initiatives by China are increasing its international trade, and the DCEP has the potential to increase China’s financial independence and decrease its reliance on the US.

11. From KOL to KOC marketing

Key opinion consumers (KOCs) are “regular” consumers who write blogs and make videos about their own product reviews and recommendations.

End users are thirsty for recommendations and advice from real customers they can trust. KOCs are influencers as well, but they are more sincere.

Brands that use KOCs as part of their marketing plan can see an improvement in their sales and brand recognition. As they typically do not have many followers, making them hard to find, be sure to identify appropriate KOCs.

💁🏻‍♀️ What is The Difference Between KOL and KOC?!

12. Short Videos

Short videos and short video apps are dominating the Chinese market in addition to live-streaming. As a result, the distinction between work and socializing keeps getting fuzzier. The fact that more than 300 million Chinese people use short video apps shouldn’t come as a surprise to you.

Gen Z and individuals with middle and higher incomes are more drawn to this medium in higher Tier areas. Our favorite short video platform are WeChat Channels. We even dedicated a whole category to them!

📽 Discover what WeChat Channels Are

13. Group Buying

This trend has yet to spread beyond China. Customers elsewhere may believe that the products are of poor quality or that the platforms are untrustworthy and charge hidden fees.

Chinese consumers appreciate the cheap prices, and the group-buying model benefits lower-income residents in particular.

14. Social Commerce

Social commerce, a hot new trend, is expected to reach more than 600 billion dollars globally by 2027. It arose as a result of the increased use of mobile devices and social media.

Shoppers can shop from home, at work, or on the go. This behavior necessitates the creation of novel approaches to creating a personalized and ready-to-purchase social commerce experience.

15. Cruelty-Free Products

Until early 2021, animal testing was required by law for cosmetic products imported to and sold in China. This law is no longer in effect as of May 1, 2021.

General cosmetics imported into China are no longer required to undergo animal testing as long as they also satisfy other criteria, like a safety and risk assessment.

This also broadens the market for vegan, cruelty-free, and eco-friendly cosmetics and beauty brands. The first cruelty-free cosmetics company to sell in mainland China was the UK-based skincare line Bulldog, which was imported under the general trade model rather than the CBEC model.

16. Private Traffic

Brands are looking for alternatives as paid traffic prices increase. Brands can promote a specific lifestyle and the associated products by creating exclusive clubs or groups, like WeChat groups.

A closed group has the benefit of already having devoted patrons and supporters. Additionally, they react more readily to CTAs.

17. Big Data

Massive amounts of data are analyzed in order to implement data-driven marketing in China.

Businesses get around space and time constraints by combining data from offline and online consumer behavior. Businesses gain deep insights into the preferences, movements, and behavior patterns of their (potential) customers.

For instance, Tencent gathers and categorizes data into various dimensions. This includes more than 3,000 tags, such as fundamental characteristics, social preferences, entertainment interests, media preferences, etc.

Remember that Chinese consumers adore their smartphones and utilize them for everything. In particular, WeChat which enables users to pay, play, chat, shop, order common services and goods, and more. In China, advertising has never been both simpler and trickier at the same time.

18. The Middle Class Continues to Rise

Upper-middle-income and above households are driving strong consumption growth, with double-digit growth. The number of upper-middle-class and higher households in China is predicted to increase by 71 million over the following three years.

19. Making Wiser Decisions Without Compromising

Customers are switching to less expensive channels and actively looking for sales and promotions. They are aware of the precise ingredients used in their skincare regimen or the products they use in everyday life

They could, for instance, compare and contrast the down content and thermal effectiveness of their jackets.

Customers are savvy and skilled at researching the technical specifications of their preferred products on websites or social media.

20. Guochao

Purchasing locally has been popular for a while. It was mostly due to national pride.

Most importantly, consumers are choosing local brands because they like the quality and innovation of the goods rather than just because they are cheaper or because they feel more patriotic about their country.

🥮 Discover What Guochao Is and How Can (Carefully) You Leverage It

Conclusion:

Firstly, China’s e-commerce market is expanding steadily and is leading the world. Secondly, Chinese consumers are increasingly shopping online for clothing, accessories, and beauty products. Despite the changes in Covid restrictions, this trend continues to be strong. Thirdly, e-commerce enthusiasts are now being joined by the silver generation quickly catching up with online shopping.

This allows businesses to import goods to China and expand their market, especially when combined with popular cross-border e-commerce shopping and fewer restrictions.

If you want to know more about Chinese e-commerce or need help establishing your digital presence in China, contact us. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com

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What is 11/11 Singles’ Day and how this Retail Festival Changed in Recent Years?

November 11, 2022

We all have heard of Valentine’s Day or “Lovers’ Day,” but have you heard of “Singles’ Day” aka 11/11 or Double Eleven? Interesting right? It is celebrated in China, and it is one of the biggest retail festivals here. A huge event in the marketing calendar of many retailers. And, if you are targeting a Chinese audience, then this is an amazing opportunity to make huge sales.

Let’s learn more about this singles’ day and understand ways to capture an audience in this highly competitive market.

What is “11/11” and how did the craze take over China in the last couple of years?

The festival started when the students of China’s Nanjing University celebrated “Bachelor’s Day” as a sort of anti-Valentine’s Day around 1993. Why November 11th? Numerology is very popular in China. November 11 looks like four lonely sticks when written, and hence, Singles’ festival was born. This celebration started spreading among other universities. Men and women started celebrating it. So, eventually, 11/11 got the name “Singles’ Day.” People celebrate this occasion by treating themselves to gifts and presents, making Double 11 a huge retail festival in China.

In 2021, around 900 million shoppers purchased luxury items from Gucci, Burberry, Coach, and other luxury brands. China’s two tech giants, Alibaba and JD.com, together they set a new world record by earning around $139 billion. Due to this huge craze, there is a lot of competition as well among brands. To survive the competition, campaigns must be well-prepared. Brands collaborate with KOLs and online advertisements to promote their product and get better awareness among consumers.

Tmall was the one which initiated the Singles’ Day Shopping Festival in 2009. It has grown over time into a shopping phenomenon and greatly impacted the global retail sector. In November 2011, the one-day sales of Singles’ Day surpassed the sales of Cyber Monday in the United States. It has become a massive internet shopping festival.

Every year, Tmall organizes a massive shopping extravaganza that features unending live-streaming sessions, amazing discounts, and celebrity appearances. Other shopping giants like JD.com and Pinduoduo also joined this heated competition.

Why Double 11 sales are going down?

However, Tmall’s sales have dropped dramatically in recent years. Not only Tmall but also Alibaba and JD.com saw a drop in sales in 2020. Some of the reasons for this downfall are

Singles’ Day has been around for more than a decade and customers are not as excited as before. Today they are also much more familiar with the tactics and campaigns done by the brands.
Starting the sales window way too early. People purchase in the initial sales and this makes the actual day or week revenues much lower.
Livestream e-commerce is a huge hit among consumers but live-streaming features are available on all social media platforms nowadays. This makes the e-commerce houses like Tmall hard to grab the audience’s attention through their live streams.
With numerous promotions and campaigns all around the year, Singles’ Day stands out less. This makes the Single’s day sales feel less special and results in low sales. Check the list of other e-commerce festivals in China and you’ll see that Chinese consumers have multiple occasions to hunt for deals.
People are getting more aware of consumerism. Many have started becoming more conscious of the products they buy, from whom they buy, and shopping sustainably.

Brand practices and consumers’ reaction

During these festive sales, the competition gets fiercer. Brands also join e-commerce platforms to get more sales. With offers and discounts available in online stores, offline stores, and live streaming channels, people are finding it difficult to purchase products at the lowest price.

Even big brands got under fire due to false advertising with L’Oreal among them. Though they topped Weibo’s list of the hottest searches, they got a huge backlash for misleading the consumers. As the issue continued to bubble, the hashtag #L’Oréalaccusedoffalseadvertising trended on Weibo, reaching 150 million views.

Consumers have recently stated that they would rather purchase goods at regular prices when needing them. As opposed to comparing numerous coupons and discounts to find the best deal.

Post-COVID reality

Post-Covid, many users have become more cautious about spending money. Consumerism is getting more criticism, along with the crazy amount of excessive and unsustainable packaging that 11/11 creates. Chinese consumers are aware of the effects of global warming and have experienced its impact. People are becoming more aware of the situation and want to take the essential steps to avoid consumerism.

This has forced brands and e-commerce giants to adopt sustainability. This year’s 11.11 shopping festival coincides with the 27th United Nations Conference on Climate Change, also known as COP27. Over the course of the 11.11 Global Shopping Festival, Alibaba Group is promoting sustainable consumption throughout its ecosystem. Alibaba has partnered with brands and merchants to provide Chinese consumers with more sustainable products at a time when they are looking to live more sustainably.

The biggest stars of last year Double 11 in trouble

Note that live-streaming e-commerce started booming in China during the pandemic. In 2021, more than 320 million customers in China will make at least one purchase from a live-stream session. We also covered quite extensively live-streaming tactics for WeChat Channels.

Viya and Li Jiaqi, China’s two famous live streamers, were the biggest winners of Alibaba’s Singles’ Day in 2021. The power duo generated GMV worth $3.1 billion (20 billion yuan) during their October 20 live stream session, which is close to 10% of the entire 2020 Singles’ Day event. Li Jiaqi pre-sold $1.9 billion (12 billion yuan) in products ranging from Shiseido creams to Apple AirPods. Viya also registered a smashing success, selling about 1.2 billion (8 billion yuan) in goods during a 14-hour live stream. Li Jiaqi, also known as Austin Li, was one of China’s biggest internet celebrities, with 64 million followers on Taobao. He once sold 15,000 lipsticks within 5 minutes in a sales competition against Alibaba.

But the superstar has gone silent after his show was abruptly cut last year due to connotations with political events. There is a long silence from Li’s side, which is very uncommon for him. He isn’t the only internet star to vanish from social media in China in recent months. Shortly after her successful 11/11 appearance, Huang Wei, also known as Viya, was fined $210 million for tax evasion. Huang had millions of followers on China’s major social media and shopping platforms, but her accounts were removed in December. She has not appeared online since then.

The sudden rise and fall of China’s most well-known influencers serve as a reminder. Brands should keep in mind how risky it is for brands to invest only in KOL marketing. This can have a huge impact on this year’s Singles’ Day sales.

New Singles’ Day strategies

Loyalty program

Brands have slowly started to realize that when it comes to building a strong, long-term relationship with shoppers, there is more to success than just offering deep discounts. The 14th edition of Alibaba’s 11.11 Global Shopping Festival in China features over 290,000 brands. It has provided retailers with tools and solutions for expanding their brand loyalty membership programs and introducing new products this year.

Membership has become a high priority for brands on Tmall because it allows them to interact with consumers most directly and, for some, provides a higher level of certainty over sales during 11/11. To date, over 40 brands on Tmall have loyalty membership programs with over ten million members, and 600 brands have loyalty membership programs with over one million members.

Alibaba is one e-commerce platform that has made strong progress from a GMV focus to a loyalty focus. “Alibaba is relatively ahead of the curve by serving these high-quality consumers,” said Ralph Wu, an associate partner at Bain & Co.

As of June 30, Alibaba also had 25 million members of its 88VIP loyalty program, with each member spending more than 57,000 yuan per year with the Hangzhou-based company. 88VIP is a mechanism designed to help participating brands and merchants increase stickiness and deepen consumer engagement across Alibaba’s ecosystem.

Brand storytelling

Claire Sun, Marketing Director of Royal Canin, a pet food brand with 1 million members and a decade-long presence on Tmall, talked about the brand’s 11.11 preparations and the benefits they’ve gotten from Alibaba’s platforms.

Royal Canin’s 11.11 preparations took a different turn this year. The company started early and collaborated with Tmall to host its first-ever Super Brand Day in the pet category.

This enabled the brand to amass a wealth of consumer insights and customer assets in advance of 11.11.

Bilibili joins 11/11

A new player is joining this year’s “Double 11” e-commerce battle: Bilibili (also known as B Station). The video-sharing site officially launched a live-streaming shopping function ahead of China’s biggest shopping bonanza.

At present, Bilibili’s live broadcast rooms offer products from its self-operated stores and those from Alibaba’s Taobao and JD.com.

To grow its livestream army, Bilibili has lowered the threshold for video uploaders to host their own live broadcast rooms. They must be at least 18 years old and have at least 1,000 fans. On top of that, they need to possess broadcast records from the past four years.

Overall, there is still a long way to go before B Station can pull ahead in the live-streaming race. It will be tantalizing to see how the video-sharing site will fare during the Double 11 shopping festival.

Conclusion

Chinese e-commerce behemoths created online shopping festivals like Double 11 to boost sales through discounts. Double 11 remains an important event for increasing brand and product exposure. However, brands should prioritize positive relationships with end consumers over skyrocketing GMV.

If you want to know more about retail festivals in China and e-commerce, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com

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Top Chinese E-commerce Platforms and Fees to Expect

August 11, 2022

The Chinese e-commerce market is the largest in the world and generated €867 billion in revenue in 2019. From 2020 to 2024, the annual growth rate of e-commerce in China is projected to be 6.9%. Obviously, many overseas companies are tempted to enter the market and cater to millions of potential new consumers. Be it the youngest Gen Z or Chinese grandmas who are eager to spend more during their retirement, with a great product and market strategy it’s a great chance for brands to tip their toes.

This appeals to international businesses as well as the local business community, resulting in cross-border online trade. In 2022, it was estimated that the import e-commerce retail market would be worth close to 559 billion yuan. The most popular e-commerce platforms are Tmall, JD, Xiaohongshu, and WeChat. However, you will see there are plenty more e-commerce sites in China.

No matter the size of your brand, the first step and choosing the right platform can be paralyzing. Companies quickly realize that the entry barriers to the biggest Chinese shopping platforms are challenging starting with the paperwork to e-commerce fees, steep deposits, and commissions.

One of the most attractive e-commerce models especially for niche or small brands that want just to test the waters would be cross-border e-commerce. Therefore more platforms offer this option now.

In China, cross-border e-commerce is distinguished by the fact that overseas companies are permitted to offer some goods to Chinese consumers online at favorable tariff rates and without the need for a business license. However, solution comes with some limitations we highlight in our previous article but nevertheless, it can be a very attractive way to kick off in China.

🇨🇳 Learn more about cross-border e-commerce and if it’s a solution for your brand

Let’s look at how much it costs to sell goods on these platforms in China, the pros and cons, and see which one can be the best fit for you.

Tmall

Tmall, formerly Taobao Mall, is a platform for business-to-consumer online retail, spun off from Taobao, and operated by Alibaba Group. It’s a highly reputable marketplace where all sellers are verified by the platform. In addition, Tmall has several solutions for brands that want to sell on the platform including cross-border sales.

Tmall General:

For Tmall general trade, the security deposit is $7,500.
A deposit is required from vendors to open a Tmall store. The deposit is primarily used to ensure that retailers follow the Tmall Service Agreement and Tmall Rules so that expenses are covered in the event that retailers break any rules.
To use Tmall, an annual e-commerce fee of $4,500 must be paid. Depending on the merchant’s category, a yearly fee is paid at the time of settlement.
Suitable for brands that have Chinese business license.

Registration fee: USD 7,500 deposit + USD 4,500 annual tech support fee

Commissions: 8-12%

Tmall Global:

Cross-border solution
Suitable for overseas brands
Doesn’t require a local warehouse in China
Access to Tmall’s services including live-streaming and advertising

Registration fee: USD 7,500 deposit + USD 9,000 annual tech support fee

Commissions: 8-12%

Tmall mini-store:

Cross-border solution
Suitable for niche or small brands
Listed as sub-store on Tmall direct flagship
Suitable for smaller collections or products that can be shipped to China separately (maximum 3 products)

Registration fee: USD 4,500 deposit

Commissions: 4-12%

JD:

As Tmall, JD also offers solutions both for brands that have legal entity in China and cross-border players.

JD General:

When creating a new account, JD.com requests a deposit starting from USD 4,500 and higher.
For the majority of categories, the commission is between 2 and 5%.
Suitable for brands that are already in China

Registration fee: USD 4,500 deposit+

Monthly fee: USD 150

Commissions: 2-10%

JD Global:

Through a new partnership between JD and Shopify, merchants on that platform now have access to a new sales channel with a simpler onboarding process and better exchange rates through the marketplace.
Fees and requirements appear to be more demanding than Tmall

Registration fee: USD 15,000 deposit+

Monthly fee: USD 1,000+

Commissions: 2-5%

Xiaohongshu / RED

Suitable for lifestyle and fashion brands
Recently, RED tries to be more brand-friendly and lower the commission costs. These do not include marketing expenditures, influencer commissions, or fulfillment fees.
Account set-up guide >>> here

Registration fee: Case-by-case basis (normally USD 3,500)

Monthly fee: None

Commissions: 5% (reduced from 20% before)

Recently, we covered another quickly expanding platform dubbed ‘the RED but for men’. You might have heard of Poizon also called Dewu on the Chinese market.

WeChat Mini-Programs as Alternative to Big Platforms

purchasing journey wechat mini programs

WeChat’s own mini-program-based online shop can be a great solution for brands that are not keen on costly registration fees and commissions. However, on the other side if you decide to go with the mini program you will have to figure out the storage, deliveries, refunds, and other logistics by yourself which the big platforms usually cover. Due to that, you will need to build the mini program by yourself.

In addition, another amazing advantage of a mini program store is that you are the owner of the data. Also, WeChat users who are already your followers are more known to be more likely to convert to customers and normally the average purchase is bigger than those on other platforms. We covered the pros and cons and how the most successful brands do it on our blog.

🛍 Why selling on WeChat can be better than selling on Tmall and other platforms?

In conclusion, the Chinese e-commerce market is in a fascinating state right now. And platforms are vying to have the best appeal to clients and businesses. However, nothing seems to be offered for free. In other words, brands must invest in order to sell products on these e-commerce platforms because of the publicity and sales they generate. Above all, China’s famous e-commerce festivals like 11.11 called Singles’ Day or 6.18 are a great opportunity for brands to generate more sales.

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

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