E-commerce Archives - The WeChat Agency

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.

🛒 Why WeChat Might Be a Better (and a Cheaper) Option for China E-commerce Newbies?

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.

🇨🇳 China Marketing Strategy: One Size Doesn’t Fit All

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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Selling On WeChat: How Brands Can Do and Is it Better Than Other E-commerce Platforms?

June 28, 2022

When you’re entering the Chinese market you might wonder if selling on WeChat is a good strategy. With over 1.26 billion monthly active users and 78% of Chinese people aged 16 to 64 using WeChat, the Chinese application is definitely a key player in Chinese social networks and e-commerce.

Before Tencent announced the new birth of “WeChat shop” in July of 2014, the phrase “WeChat e-commerce” didn’t even exist. Now, after several years, it’s the sweatiest pie in town, and every company wants a piece. Can it be that WeChat e-commerce is even more attractive for foreign brands than well-established players like Tmall? Or even new solutions of cross-border e-commerce available on RED?

🇨🇳 What is Cross-border e-commerce?

What makes WeChat particularly attractive for foreign brands looking to connect and sell in China apart from its huge size, it’s the uniquely smooth user journey. Paraphrasing Ariana Grande it’s literally an ‘I see it, I like it, I want it, I got it’ approach and let us tell you why. In the second part of this article, you will see why it might be even more beneficial for you to start with a WeChat e-commerce instead of other shopping platforms.

WeChat Journey

A quick note, brands still cannot share links to their Taobao or Tmall stores on their official WeChat account. We might see it coming soon as relations between Alibaba and Tencent are slowly warming up.

Selling on WeChat – Owned E-commerce

The e-commerce landscape has changed a lot over the years: from the Yellow Pages-style online catalogs to one-click, same-day delivery.

The transition away from the classic search-based model of selling on WeChat is continuing at a rapid pace in China. China has the world’s most advanced e-commerce business. New interactive experiences replace the old ones that more closely resemble how people buy in the real world while still being entertaining.

WeChat offers a variety of strategic services to assist businesses to compete in the Chinese e-commerce sector.

First Things First

The first stage is to create a store with a user-friendly localized design and extensive selling capabilities including campaign marketing, coupons, flash deals, group purchasing, and a membership loyalty program.

WeChat’s mini-program, which is backed by a marketing automation platform, allows advertisers to automatically uncover sales opportunities among WeChat followers based on behavioral and purchase data analysis, as customers want increasingly personalized experiences. Brands can better nurture high-potential clients at all phases of the customer journey, from WeChat Official Account to WeChat Mini-Program, as well as automate promotional activities, reducing conversion time and increasing conversion rates.

Step 1: Register an official account

Brand posts on WeChat, unlike Facebook or Instagram, do not appear on the main social feed. Instead, they appear in the chat interface of WeChat. WeChat Official Accounts can be used for marketing in one of two ways:

Service accounts on WeChat: For WeChat users, these accounts show alongside “friends.” They are highly prominent, however, you can only receive four push alerts per month.
Accounts for WeChat subscriptions: These accounts have the ability to publish items on a daily basis (one push notification per day), but they are less prominent than service accounts. They show up in a “subscription” folder that readers must open to see the most recent articles.

Step 2: Start a WeChat mini-program store

WeChat mini-program stores are e-commerce experiences that are integrated into the WeChat app. By launching a WeChat store, a company can make its products available on the platform through a myriad of touchpoints. These include articles, WeChat search, live-streaming, and QR codes, which are constantly developing.

WeChat stores have various distinct advantages:

Within WeChat, you may search for stores.
Customers can pay with WeChat during the checkout process.
Customers can authenticate themselves using WeChat’s one-click log-in feature.
Your store can use WeChat to pre-fill the user’s shipping addresses.
Improved WeChat influencer campaigns integration
Influencers can link directly to a WeChat store from a WeChat article.
You may provide your customers with a native in-app shopping experience
Clients can save on special deals, coupons and more.

Additionally, the WeChat mini-program, which can be integrated with a cross-border payment function, allows Chinese users to pay in RMB using WeChat Pay. After that, the funds will be sent to the brands in their respective currencies. The mini-program also offers cross-border logistical services to help with international shipping and legal customs clearance.

Accessible through over 60 alternative entry points…

Since every stage of the user route is optimized for WeChat, conversion rates are also substantially higher. Because of the intimate closed-loop luxury purchases are increasingly growing on WeChat. Brands like Gucci or Dior are regularly leveraging Moments ads.

How to set up a WeChat store

WeChat stores are not directly provided by WeChat. They’re not the same as Facebook Shops or Google Listings in that regard. WeChat, on the other hand, provides a toolset (SDK and API) that allows merchants to construct WeChat stores using a proprietary programming language. The WeChat store was built using a framework based on the widely popular JavaScript programming language.

You have two alternatives as a merchant when it comes to setting up a WeChat mini-program store:

Develop a fully customized mini-program
Use of a software-as-a-service WeChat store provider like Youzan or Weidian

Step 3: Promote your WeChat shop

As WeChat posts are not visible to people who don’t follow you on WeChat, a thorough marketing plan is equally necessary to make your mini-program accessible and approachable.

Marketers may use KOLs’ live-streaming and advertising, especially Moment Ad, in the Tencent ecosystem to drive high-quality traffic and sales conversions.

WeChat offers three different forms of ads: WeChat Moment ads, WeChat Mini-program ads, and WeChat article ads.

WeChat is a great SEO tool as well. Its social search engines can have a significant impact on word-of-mouth marketing for firms as they attempt to be relevant. WeChat keeps expanding the reach of its ecosystem, which already connects one billion active monthly users, using its own search feature.

WeChat Channels are becoming the next big thing when it comes to social commerce. We covered live streaming selling and how to prepare the best strategies to attract customers and increase sales. Check it here >>> Live Streaming on WeChat Channels 🔥

What Sets WeChat Apart From Other e-commerce Platforms?

WeChat is superior to other Chinese e-commerce platforms because it combines the reach of a giant with the convenience of a smaller platform. When you use WeChat, it’s much easier to reach out to buyers, especially if you’re selling shoes or apparel.

WeChat’s social features are also greatly beneficial to your business. With just one click, you may send personalized messages to customers, such as “I’m attempting to figure out what size shoe I need.”

Another benefit is that you can tell which things are selling well by looking at the demographics of the people who are buying them—for example, if the majority of your customers are women over 30, there may be something about that age group that works for your business.

Plus, on WeChat, there’s always something fresh to see! While browsing merchandise, you may keep up with the latest news stories or watch hilarious videos.

However, the most important thing for any business entering China or trying to expand its sales would be entry barriers. Requirements and fees for Tmall and its solutions for cross-border e-commerce are notoriously steep. They start from a 4,500 USD security deposit, high sales commissions (up to 12%), and often require dedicated warehouses. Major platforms also highly restrict data ownership and advertising options.

On the contrary, creating your own mini-program means you own your data and you have full flexibility in terms of your store operations and promotions. You don’t need to pay any upfront fees to the platform or pay commissions on sales. The drawback is that you will need to secure your own traffic to the store which is normally much easier to achieve when you go with the e-commerce players like JD or Tmall.

Conclusion

Customers on a number of e-commerce platforms, including WeChat, Weibo, Xiaohongshu, etc., enjoy the rapidly evolving Chinese market. Chinese consumers spend a lot of time reading about other people’s shopping experiences and avoid purchasing unfamiliar things. To keep the brand’s reputation positive, customer word-of-mouth is crucial.

However, the Western market and the marketing techniques that support it are significantly dissimilar from the Chinese market. Thus, in order to successfully join the Chinese market, it is crucial to adjust your marketing methods in addition to localizing your products. To keep up a healthy relationship with users, brands need to establish a strong online presence and engage with them frequently.

Additionally, now WeChat allows for Shopify integration so you can keep all information within one place. Get in touch with us for more details.

When it comes to e-commerce platforms, WeChat appears to be the ideal choice in China. WeChat is a strong ecosystem for brand launches in China. Companies can expand swiftly in the Chinese market by utilizing influencers and cross-border payments, positioning themselves for future growth through collaborations with offline distributors or other platforms like Tmall.

If you wish to know more about marketing in China, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact at contact@thewechatagency.com.

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What Is Dewu?

March 9, 2022

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

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

Poizon Dewu

Dewu’s USP

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

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

Poizon Dewu

Growth of Dewu

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

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

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

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

Key User of Dewu

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

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

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

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

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

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

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

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

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

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

Incentive for brands

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

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

Poizon Dewu

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

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

Step 1: Create an account and log in.

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

Step 2: Fill in the information

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

Step 3: Wait for the review

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

Step 4: Make a deposit.

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

Conclusion

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

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

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

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

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Montagut in Collaboration With KRDS Invited Fans To Winter Wonderland

December 17, 2021

The Christmas Wonderland campaign was one of several campaign collaborations with Montagut on the Chinese market in the last 3 years thanks to a continuous retainer partnership.

Christmas in Mainland China

Mainland China has not been very big on Christmas in the past. It is not a national holiday and it has nothing to do with religion. It’s more of a novelty day, similar to Valentine’s Day than a religious holiday.

Don’t be fooled by the past, though: Christmas is becoming a more important occasion in most Mainland companies’ marketing calendars, and standing out above all the festive fever is becoming increasingly difficult.

The objective of the Campaign

But Christmas wasn’t the sole reason that Montagut wanted to celebrate with their fans in China. The main objective was to engage the audience during the Christmas season in order to introduce the new FW 2020 collection and to attract a bigger target group of younger consumers. They wanted to premiere new collections, with the purpose of communicating the advent of new clothing and trends before the end of 2019.

KRDS’s Solution

An H5 WeChat game set in a French winter wonderland was our solution for tastefully presenting both the new collection and the holiday spirit. This game was in instant popularity with Montagut’s existing fans as well as almost 10,000 new fans thanks to its bespoke and dreamy graphics paired with a compelling tapping gaming mechanism.

“This campaign was very fun and engaging. Beyond generating buzz and page views, KRDS was smart to find the right mechanism to attract a very high number of new fans” According to Candice Meyer, Montagut’s Head of Brand Image & Communications Asia.

Miriam Dabrowa, China Head of Strategy at KRDS Greater China, said: “With the new opportunities coming this year, and especially Montagut’s 140th Anniversary, we truly can’t wait to create new exciting content together”.

WeChat Campaign for Montagut – Post

WeChat Campaign for Montagut – Game Flow

WeChat Campaign for Montagut – Media Ads

Christmas Campaign for Montagut

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E-commerce Platforms in China

December 7, 2021

The Chinese economy has grown at an extraordinary rate in the last three decades. New buying patterns have been shaped by social progress, technology advancements, and rising disposable personal incomes.

With this growing economy, it’s no surprise that Chinese e-commerce platforms are booming. Live-streaming e-commerce, social e-commerce, and cross-border e-commerce are only a few of the new e-commerce modes that have evolved in the market.

According to a report released by China’s Ministry of Commerce, national e-commerce transactions totalled 34.82 trillion yuan in 2019. There were 10.63 trillion yuan in online retail sales, up 16.5% from the previous year, with physical goods accounting for 8.52 trillion yuan, or 20.7% of total retail sales in the market, and online retail sales of physical goods accounting for 8.52 trillion yuan, or 20.7% of total retail sales in the market.

E-commerce during the Pandemic

However, the global pandemic has had a significant impact on e-commerce. Many experts agree that Covid-19 has had a big impact on consumer behaviour in the first quarter of 2020. However, by 2021, it is obvious that e-consumers have adjusted to the new global environment, with China’s numbers increasing by 17%.

E-commerce has been able to grow as a result of social networks, which have made promotion, communication, and online purchase easier. Furthermore, Chinese apps such as WeChat have made it easier for consumers to buy things directly from manufacturers.

How can brands leverage e-commerce platforms?

To vary their marketing, brands are increasingly developing a mix of daily short videos and live streams within their own social e-commerce platforms. Unlike traditional out-of-home advertisements, where brands are limited to the number of products advertised, e-commerce platforms may now successfully use social media to quickly showcase a variety of different products in order to attract a larger audience.

Using e-commerce platforms in China can be beneficial to a wide number of enterprises. This has become crucial for businesses as a method for generating organic traffic, accurately identifying a targeted customer audience, standing out from competitors with exclusive discounts, and reducing advertising costs.

In China, there are numerous e-commerce platforms. So, which platform is ideal for you if you want to sell your products online?

Some of China’s leading e-commerce players

TMall TMall, or Taobao Mall is a B2C (business-to-consumer) platform.The majority of its merchants are professionals with a legal entity in China’s company registration system. Because all of the goods on Tmall are official and authentic, the average price is higher than on Taobao.The number of international brands and merchants on Tmall Global expanded by 60% year over year as of December 31, 2020. At the same time Paid GMV on Tmall Global increased by 37%.
This platform is ideal for luxury brands, apparels, electronics, cosmetics and skincare sectors.

TaobaoTaobao is China’s largest consumer-to-consumer (C2C) e-commerce platform. The website is owned by Alibaba Group, a Chinese internet and technology corporation based in Hangzhou. According to a 2020 report, the platform’s monthly active mobile users reached 902 million, with a rise of 22 million in a single quarter, and yearly active consumers reached 779 million.
This platform is ideal for all kinds of online businesses.

PinduoduoPinduoduo is a new but competitive e-commerce platform in China. It was formed in 2015, yet it only took four years to attain a trillion-yuan gross merchandise volume. Its main benefit is social e-commerce, where consumers invite their friends to buy things and receive discounts.According to Pinduoduo’s most recent financial report, the number of active purchasers on the platform reached 788.4 million at the end of 2020, up 35% from 585.2 million at the end of 2019.
This platform is ideal for the agricultural and food sectors.

JD.comWhen comparing Taobao to eBay, JD.com, the second largest B2C platform is comparable to Amazon. It primarily sells 3C products, including cell phones, laptops, and home appliances. They source products directly from brands and suppliers, who then distribute them to clients via JD.com’s official courier.JD Daojia, JD.com’s grocery services. With a total GMV of RMB 21.3 billion in 2020, it grew 102.9% from the previous year.
This platform is ideal for apparel, electronics and fresh food sectors.

Social commerce

DouyinOne of the most popular social media networks, Douyin, the Chinese version of TikTok, is working on an e-commerce website. Since June 2020, ByteDance, the company that owns Douyin, has established an e-commerce department as the first level business unit.Douyin E-GMV commerce’s topped 500 billion yuan in February 2020, more than tripling that of 2019.
This platform is ideal for the cosmetics, accessories, clothes and food sectors

On our blog, we’re also covering e-commerce on Kuaishou. You can also learn how niche perfume brands are accelerating on e-commerce platforms.

Conclusion

The Chinese internet market is by far the largest in the world, with over 850 million subscribers. Even though China has not yet achieved high-income economic status, it is well on its way, with income levels in the largest cities now approaching those of the most advanced economies.

Furthermore, the country’s technological thirst propels the e-commerce business ahead, making it a leader in a number of categories, including mobile commerce and payments.

The current situation today in the Chinese eCommerce market is exciting. Because platforms are competing to be the most appealing to customers and companies. This competition not only implies more tools for merchants and consumers, but it also means less stringent registration criteria for companies looking to register on these platforms.

Hence, this is an ideal way for international companies to reach the Chinese market. If you require further support with setting up your account please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

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What Are the Most Important E-commerce Festivals in China?

September 28, 2021

China is not just the world’s most populous country, but it also has the most internet users. And with about one billion online shoppers, the country has the world’s largest and fastest-growing e-commerce market.

The Chinese e-commerce business has evolved significantly over the years, revolutionizing the traditional system for both customers and sellers. Needless to say, the e-commerce market exploded in 2020 as a result of COVID-19, particularly in China, causing an increasing number of firms to want to start selling online.

And one of the market’s driving forces is the China shopping festivals, which is a massive retail event where firms slash prices in honor of Chinese culture, history, and plain old consumerism. Therefore, all international firms looking to grow their sales in 2021 and beyond should learn about China’s biggest and most important e-commerce festivals.

Here at the top 5 e-commerce festivals in China:

National Day/Golden Week

Golden Week, which commemorates the founding of the People’s Republic of China in 1949, begins on October 1st with National Day and lasts until October 7th. It is China’s longest public holiday, and it generates huge business for international brands.

The total sales for overseas brands on Tmall increased by about 80% last year and several international cross-border e-commerce platforms also reported a significant rise in sales. Luxury brands in particular perform well during this time, with several companies reporting a 60% boost in sales in 2020.

Double 11 Shopping festival

The Double 11 shopping festival, also known as Singles Day, is the king of all global retail events. During the festival periods in November 2020, Alibaba and JD earned $155 billion in sales.

With more than 250,000 brands and 800 million consumers participating, last year’s sales were recorded as more than RMB 372.3 billion (US$56 billion).

12.12 Shopping Festival

Alibaba introduced the 12.12 or Double 12 Shopping Festival on November 12th in 2010 for customers who were still looking for good deals after Singles Day. The Double 12 shopping festival is one of the largest in the South Asian online buying marketplace and it is that time of year when careful planning and organisation can pay off handsomely for a seller.

Due to rising customer interest, the event resulted in a 4-5 fold increase in online traffic, 60% unique visitors, and a 2 second average order rate. Last year, 18,000 orders were placed in a single day, with an average spend of 125 SGD per customer.

Nian Huo Festival

The Spring Festival, also known as Nian Huo, commemorates the Chinese Lunar New Year, which falls in the month of Jan-Feb

Since Chinese New Year is such a popular festival, discounts are available across a variety of platforms, though market giants like Alibaba and JD tend to attract significant crowds. This famous holiday brought in more than $155 million in retail sales in 2019, and sales of imported goods climbed by 2.3 percent year over year in 2020.

International Women’s Day

International Women’s Day, observed on March 8th, has become a lucrative shopping festival in China for female-oriented brands in China.

According to the Chinese Research Centre for E-commerce, 70% of Chinese women prefer to shop online rather than offline. As a result, this is an important e-commerce festival to participate in. Last year, Tmall’s “Own Yourself, Love Yourself” campaign aided female empowerment, garnering more than 600 million hashtag views on Weibo and 2.12 million comments.

Conclusion

Online shopping is an accepted part of life in China. Everything from fresh produce and seafood to appliances and automobiles are being purchased online.

Due to the high demand in the market, e-commerce platforms work hard to encourage online shoppers, resulting in China’s numerous shopping festivals. If you want to increase your brands e-commerce sales, you need to be aware of the major e-shopping festivals and plan your marketing strategy accordingly. This is why selling on Chinese e-commerce platforms is the most efficient way to increase sales among the Chinese audience.

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The Accelerating Growth of Niche Perfume Brands in China

July 8, 2021

Introduction to Niche Perfume Market in China

According to research put forth by Forward, the global perfume market in 2017 consisted of only 1% Chinese consumers. Even though it would seem like a small number, the Chinese perfume market has been growing by more than 15% annually – a rate far higher than any other category in the beauty sector. The report also forecasts the sales volume of China’s perfume industry growing from 25.2 billion RMB (3.7 billion USD) to over 50 billion RMB (7.4 billion USD) by 2023. That is double the revenue in a span of under 7 years which is extremely impressive by all standards.

Foreign brands dominate in China, and the big beauty companies you’d expect to see are all leaders in the arena: LVMH, Chanel, Coty, L’Oréal, and Estée Lauder. Today, many Chinese consumers have since developed the habit of using perfumes and consider it an essential part of their daily routines. Let’s look at the market factors that are accelerating the growth of niche perfume brands in China.

Gen-Z Perfume Trend Preferences

When fragrances first started gaining popularity in China back in the 2000s, consumers were most attracted by the classics (Chanel’s No.5, Yves Saint Laurent’s Black Opium). But a few years ago, a different opinion started emerging from China’s younger, more discerning generation – Gen-Z. Fragrances by luxury brands were viewed as too pedestrian and common. Many young consumers referred to them as “街香” (which literally means “street scents”). The traditional marketing method for perfumes – beautiful, glossy ads and endorsements by A-list celebrities – also started coming across as passé to this consumer group.

According to industry experts like Allie Rooke (beauty consultant and the founder of Clean Beauty Asia), post-90s generations are driving the demand for niche names, and Gen-Z trends are shaping new perfume preferences. Furthermore, they are using it as a way to express their identities, and gender-nonspecific scents are particularly appealing.

Online Opportunities

Online platforms like Tmall and JD.com are key outlets for fragrances. Hermès Fragrance opened up recently, along with the launch of Gucci Beauty, featuring fragrances. Both of these were seen in 2021 itself. Cartier added itself to the category by offering names like Panthère and Carat.

Popular niche brands to drop on Tmall Global during the pandemic were Replica and L’Artisan Parfumeur. These two brands were backed up by social media, which was vital for their amplification. Baidu optimization is also essential for brands to improve their visibility.
Perfume KOLs and bloggers are on the rise too. Weibo’s top KOLs include names like Sunillusion, Initialscent, and The Perfume World of CC (CC的香水世界).

Home Fragrance Market

Home fragrance is booming in China. There are more home fragrance choices than ever before and the marketing strategies for perfume and fragrances has been very strong lately, with lots of celebrities and KOLs sharing their decor and candle purchases on Chinese social media. Not to mention The Chinese have burnt incense ever since the Han Dynasty.

Chinese luxury consumers only bought perfume and fragrance because of their brand names. These purchases were less about the scents and more about the status quo provided by the brands. But now, Gen-Z consumers want to know how to change their interior fragrances as part of their holistic luxury lifestyles. This demand continues to grow thanks to social media platforms like Douyin. Find out more about how to leverage Douyin for your brand.

What To Infer

It is safe to say that Chinese consumers today no longer desire to smell like cookie-cutter bottles of designer perfume. Many of them are looking for something a little more personal and complex – be it in the form of their favourite tea, or the scent of freshly cut grass. They need variety to pick the right one that suits their needs. While it remains to be seen if this category will continue to grow exponentially, it is certainly one to watch.

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