Discovering Opportunities: Exploring China’s Recent Updates

May 20, 2024

1. Shanghai takes the lead as Chinese coffee consumption averages 16 cups per year

  • China’s coffee industry amassed a staggering 265.4 billion RMB (approx. 36.66 billion USD) in scale last year, with an average per capita annual consumption of 16.74 cups
  • Coffee Carnival is running in Shanghai between 30 April to 4 May, alongside over 50 esteemed local coffee shops.
  • Additionally, takeaway, payment, and social media platforms initiated the “Drinking in the City” campaign in Shanghai, poised to invest nearly 100 million RMB (approx. 13.8 million USD) into the consumer market.
  • With a net increase of 118 shops, marking a 14% year-on-year rise, the total count of Starbucks outlets soared to 7,093.

LINK:https://daoinsights.com/news/shanghai-takes-the-lead-as-chinese-coffee-consumption-averages-16-cups-per-year/

2.What’s driving China’s unstoppable second hand luxury market?

  • China’s secondhand luxury market is tipped to grow to $30 billion (217 billion RMB) in 2025 from $8 billion (58 billion RMB) in 2020, with Gen Z and millennials (under 40) together accounting for more than 80 percent of the total number of secondhand luxury consumers
  • From a luxury brand point of view, perceived value on the secondhand market can have direct repercussions on reputation and desirability in the eyes of consumers.
  • Brands should not see the secondhand market as an adverse phenomenon, but encourage customers to trade in or resell their pre-owned items through authorized channels, ensuring that the brand retains control over the quality and authenticity of the products in the secondary market.
  • Luxury brands must monitor and manage their perceived value in the secondhand market, as it can impact their reputation and desirability among consumers. Digital marketing efforts should focus on maintaining brand authenticity and highlighting the enduring quality and heritage of their products.

LINK:https://jingdaily.com/posts/what-s-driving-china-s-unstoppable-secondhand-luxury-market#8548723daa5e

3. Decoding China’s $170 billion ‘romance economy’

  • China commemorates love on three separate holidays: the Western Valentine’s Day on February 14, the uniquely Chinese 520 Day on May 20, a celebration derived from internet slang where the numbers “520” phonetically resemble the words for “I love you” in Mandarin, and the traditional Qixi Festival, which usually falls in August.
  • China’s Gen Z consumers are a key element of the “romance economy,” responsible for 54% of related orders according to the “Romantic Economic Big Data Report” released in 2022.
  • Survey data from iiMedia Research in 2023 revealed that regardless of their relationship status – single, in a relationship, or married – over 90% of participants were eager to celebrate romantic festivals by presenting gifts to family and friends.
  • Notably, jewellery ranks as the number top gift category for coupled-up individuals on China’s romantic days.
  • Traditional gifts like flowers, personal care items, and beauty products remain favorites and “gift boxes” persist as a preference for consumers on seasonal occasions.
  • “Love-brain” (恋爱脑) has recently emerged as a trending term online. It centers on the idea that individuals often lose their emotional or financial rationality when in love. This phenomenon prompted the creation of the phrase “scolding to cure love brain” (骂醒恋爱脑) as a response. And in turn, this has sparked a new type of service.

LINK: https://jingdaily.com/posts/decoding-s-china-s-usd170-billion-romance-economy

4. Xiaohongshu: Unlock new opportunities in Chinese beauty market

Customers are getting more connected to Chinese culture and caring about value, which makes domestic beauty brands more popular. Younger consumers are stepping up as key players in the domestic beauty market.

  • Emergence of quality Chinese cosmetics: Domestic beauty annual sales surged around 10%, outperforming foreign cosmetics with a commanding market share of 50%.
  • Co-create content with the brands: Hundreds of celebrities and top KOLs embarked on the offline and online collaboration with a lot of brands.
  • Create a personalized IP Matrix: Xiaohongshu collaborated with more influential media like CCTV network and created more personalized IP/topics for brands.

LINK: https://mp.weixin.qq.com/s/4oAwT-Q0mtbWHGQtRYSPLg

5.ByteDance surprises AI rivals with ultra-low cost Doubao model:

  • ByteDance has surprised the artificial intelligence industry with the ultra-low cost of its Doubao model
  • The company said it is capable of processing 2 million Chinese characters, equivalent to 1.25 million tokens, for RMB 1 ($0.14).
  • OpenAI’s most advanced multimodal model, GPT-4o, also unveiled this week, comes in at $5 per million input tokens handled.

LINK:https://technode.com/2024/05/16/bytedance-surprises-ai-rivals-with-ultra-low-cost-doubao-model/

6. Which fashion campaigns for China’s 520 Day hit the mark?

  • Luxury fashion campaigns for China’s 520 Day focus on limited edition collections, celebrity endorsements, and creative storytelling, often in the form of mini videos.
  • Brands like Gucci and Saint Laurent tapped into Gen Z’s preferences by incorporating traditional Chinese elements and leveraging digital platforms for greater engagement.
  • 520 Day’s fusion of traditional Chinese culture with commercialism highlights the evolving landscape of celebrations and consumer behavior, emphasizing the importance of cultural resonance and meaningful experiences in luxury marketing strategies for brands looking to better connect with consumers.
  • These strategies aimed to blend cultural significance with contemporary marketing, enhance brand appeal and foster emotional connections with consumers.

LINK: https://jingdaily.com/posts/which-fashion-campaigns-for-china-s-520-day-hit-the-mark

7. 2024 May Day Holiday: The rise of small cities tourism and AI companions

  • Amid an economy yet to fully recover to pre-pandemic levels, this year’s May Day break underscores a notable trend towards tourism in lesser-known destinations.
  • On social media platforms like Xiaohongshu (RED), many young people are keen to explore counties and even aim to ‘visit Top 100 Counties of China’ as a novel approach to May Day travel.
  • Hong Kong has shifted its focus to cultural and artistic events, as well as large-scale concerts.
  • It is also worth mentioning Japan. With the Yen reaching a 34-year low against the US dollar during the holiday period, this made it more attractive for overseas tourists.
  • ‘AI companion’ emerged as a new trend in travel. This involves using AI technology to offer personalised travel assistance services, crafting tailored itineraries and services.

LINK:https://daoinsights.com/opinions/2024-may-day-holiday-the-rise-of-small-cities-tourism-and-ai-companions/

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Top Search Engines in China and How They Work

August 23, 2022

If you want to implement an effective marketing strategy in China, you must get acquainted with the largest search engines in the country. 

As of 2021, China had 1 billion internet users, making it the largest online market in the world. But because of the filters imposed by the Great Firewall of China, a number of well-known search engines, including Google, are not accessible in China.  

If Google is not working in China, then what are Chinese people using? Let’s examine the popular Chinese search engines and how they work.

Popular search engines in China

 

Baidu

The most popular search engine in China is Baidu, and it is comparable to Google in the West. It was among the first search engines to appear in China, and since then, its use has grown significantly.

It dominates the market for search engines in the PRC by more than 75% and even draws some users from abroad, like the United States and Japan.

Baidu only indexes websites using simplified Chinese characters. Therefore, if you don’t have a website in Mandarin, your website won’t appear. Additionally, it favors websites that are stored on Chinese servers.

An Internet Content Provider License is required in order to host a website in China. Let’s learn about the ICP in a later part of the blog. Keep reading!  

Also, if you want to know about it in detail, check this blog: Baidu SEO for beginners.

 

Sogou

Sogou, the second player in China, has been operating since 2004. They managed to gain 24.54% of the market in December 2020, outpacing all other Chinese search engines in terms of growth.

Sogou’s algorithm is unique. As a result, don’t anticipate Baidu SEO strategies to be effective on this search engine.  Sogou’s search algorithm highly values original content and site authority. The importance of backlinks as a ranking factor seems to lean more toward quantity than quality. 

Due to its more affordable pay-per-click campaigns, Sogou has proven to be very helpful for businesses that aim to market to consumers in lower socioeconomic areas.

With Tencent’s acquisition of Sogou, the Chinese search engine now has a special feature that no other search engine in the country can claim: the ability to search on the WeChat platform. The QQ browser, created by Tencent, also uses Sogou as its default search engine. 

 

Haosou

Haosuo, also known as Qihoo 360 Search and s.com, is ranked third in the domestic Chinese search engine market. The search engine focuses on many services including news, websites, videos, images, music, and many more, and it has a reputation for being safer than Baidu.

Most Chinese computers come with the Qihoo 360 browser preinstalled, making it China’s equivalent of Internet Explorer. Because there is less competition on 360 Search, paid advertisements frequently have a lower cost-per-click.

Haosou is a significant player in B2B marketing because many Chinese companies recommend using it due to its security features. Additionally, rankings seem to reflect this emphasis on cybersecurity, with sites with more authority and credibility appearing to be ranked higher.

 

Shenma

Shenma is the result of a joint venture between Alibaba and UC Web. One of the most widely used web browsers, UC, uses it as its default search engine. In the upcoming years, it is anticipated that Shenma’s user base will continue to expand.

The fact that Shenma is only compatible with mobile devices is a key characteristic of this Chinese search engine. This is a key factor because of how widely used mobile devices are in China. Shenma is actually widely used for apps, books, and shopping. Shenma is therefore essential if you work in one of these market segments.

Shenma’s link with Alibaba allows it to include direct links to product pages. It’s widely used for home goods, clothing, books, and apps. Products that are listed on Taobao or Tmall (Alibaba shopping properties) are given priority, which improves placement in search results.

 

Youdao

Chinese search engine Youdao was launched by NetEase in 2007. Websites, images, news, music, blogs, and Chinese to English entries can all be searched using Youdao. Youdao Hui Hui Assistant, a shopping assistant tool that enables users to compare products and prices online, was introduced to Youdao in 2012.

More than 20 languages can be translated from Mandarin by Youdao. It offers example sentences and word usage guidance and is the PRC’s largest translation tool and online dictionary.

Because it includes a free online dictionary, Youdao is very well-liked by Mandarin learners. The Youdao Chinese dictionary is useful because it is simple to use and includes examples of sentences and instructions on how to use words.

 

WeChat Search – Souyisou

Last but not least, WeChat’s own search engine is slowly but surely eating its way into the search engine market in China. Launched in 2017, it’s already indexing the majority of content shared by official accounts (as long as published in the text format – read more about do’s and don’ts to optmize your SEO performance in our quick Guide To WeChat Search)

At the moment, its market share is relatively low but with more than 500 million Daily Active Users and Tencent confirming earlier this year at WeChat (Weixin) Class PRO that Seach will be one of the priorities in 2022, we can only expect it will grow considerably in the near future. 

SEO in China

People in China will Baidu your brand rather than Google it. Therefore, understanding how Baidu SEO functions is crucial. The main distinctions between the SERPs of Baidu and Google are:

  • the interface is available only in Simplified Chinese. No other languages support.
  • Links clicked on the SERP open in a new window, keeping the Baidu window always open for users to come back to it.
  • Image-based related searches are present for almost every single search on the right side.
  • Oftentimes, it is tough to distinguish between organic and paid results
  • Google’s mobile search shares the same URL as its desktop version. Baidu uses m.baidu.com for its mobile search engine.
  • Google uses structured data from schema.org markup and crawled data for rich snippets, while Baidu provides its own platform (Baidu Open or Baidu Webmaster Tools) for submitting structured data.
  • If your site is not mobile-friendly, Baidu might transcode it to make it load faster for mobile devices.

Google vs Baidu’s algorithms

When it comes to algorithms, Google and Baidu’s algorithms are similar in theory, but in practice, Baidu still needs to update its game. Though they are almost similar, they have differences too. Some common differences between Google and Baidu algorithms are

  • The algorithm used by Baidu has a significant explicit bias in favor of everything Chinese.
  • In terms of Chinese natural language processing, Baidu has a significant edge over Google and typically returns more accurate results for Chinese queries than any other search engine.
  • Duplicate content is much less tolerated on Baidu. It may take a long time to regain lost rankings if a website receives a Baidu penalty for duplicate content. 
  • It’s better to avoid JavaScript and AJAX content if one wants to rank highly in Baidu because the search engine has trouble crawling it.
  • Baidu spider typically crawlers Chinese websites much more frequently than those by Google.
  • Backlinks from Chinese-based websites are worth much more to Baidu than those from foreign websites.
  • In terms of machine learning for image processing, Baidu still lags. Therefore, for an image to rank well in Baidu’s image results, the alt text and surrounding plain text content must be properly optimized.
  • Baidu prefers websites with frequently updated content. It affects particularly new websites.
  • Compared to Google, Baidu gives a domain age more importance. To rank highly for a new site is harder, but it gets much simpler over time.
  • Baidu uses meta keywords as a ranking signal.

 

What is ICP? Why do you need it?

The Chinese government maintains strict control over the internet. Consequently, obtaining an ICP (Internet Content Publishing License) in China might enhance Baidu’s SEO performance.

A legitimate Chinese hosting company can only host your website on their servers if they have an ICP license. The best way to stay in the competition and stand out is to have a website in China or at the very least use a test to see if your website is blocked due to the Great Firewall in China and an increasing number of blocked foreign websites.

Compared to websites without an ICP license, obtaining one means much faster loading times for internet users. Internet users in China are therefore more likely to discover websites with an ICP license and to visit those sites again. Possessing an ICP license enhances Baidu SEO results. The ICP license, however, is restricted to businesses with Chinese registrations. Even though Baidu will not block websites for not having an ICP license, having one is not absolutely necessary for Baidu SEO. Paid media on Baidu it’s another story.

Conclusion

Although Baidu is the most popular search engine in China, it does not have market dominance. Users can use a wide range of additional resources, as we have already discussed in this article.

It is essential to familiarize yourself with the different search engines before creating a strategy for the Chinese market in order to ascertain which search engines resonate with your audience and how to use them to gain the most exposure.

If you wish to know more about Chinese search engines and SEO strategies or other marketing techniques in China, 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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Tech news in China

August 4, 2022

Chinese TikTok re-bets on “Zhongcao”, a key to China’s e-commerce consumer culture

With the release of the brand-new independent recommendation app “Kesong,” Chinese TikTok Douyin is re-testing the “Zhongcao” business model. The action is a part of the video-sharing site’s larger strategy to develop into an interest-driven, omnichannel e-commerce ecosystem. Although “Zhongcao” makes it easier for content-focused platforms to capitalize on China’s e-commerce craze, it shouldn’t be done at the expense of user experience.

https://daoinsights.com/works/chinese-tiktok-re-bets-on-zhongcao-a-key-to-chinas-e-commerce-consumer-culture/

Tencent To Close NFT Platform Huanhe a Year After Launching

Major Chinese tech companies have started launching NFT-related platforms since last year. In addition to Tencent’s Huanhe, Ant Group introduced Topnod (JingTan in Chinese) on its AntChain in late 2021, and e-commerce behemoth JD introduced Lingxi, an NFT platform, in December. 

In China, NFTs are known as digital collectibles, but there are some important differences, such as limitations on the resale of these NFTs. Huanhe is supported by blockchains managed by Tencent and its partners. Buyers are concerned that the closure of Huanhe may also mean the end of collectibles purchased through the platform.

https://technode.com/2022/07/21/tencent-plans-to-close-nft-platform-huanhe-a-year-after-launching-report/

The Good Old Days: Why Nostalgia Amplifies Brand Collabs In China

According to a 2021 Mintel study, 77% of Chinese consumers enjoy items that bring back fond memories, such as childhood snacks. In difficult times like the COVID-19 pandemic, nostalgia is an easy way to elicit endorphins while reassuring customers. 

China has experienced a consistent flow of nostalgic food and cartoon collaborations in 2022, whether as a direct result of difficult times or not. International brands are also embracing the trend. L’Oréal released a line of cosmetics in April 2022 with the IP of the well-known Chinese cartoon (Black Cat Police Captain) from the 1980s. The line’s marketing even included the wistful theme song. 

https://jingdaily.com/brand-collaborations-nostalgia-wins-china-team-wang-loreal/ 

High-Tech Hues: Alibaba Algorithm Will Have Chinese Shoppers Looking Their Best This Fall

Retail trends are predicted before they occur thanks to a partnership between TWTA and Alibaba’s research arm DAMO Academy powered by AI. For instance, the information indicates that vibrant, lush orange and soft cyan blue will be popular colors in the fall and winter. The algorithm translated colors into digital codes after learning from a vast collection of product photos on Alibaba’s marketplaces and more than one million photos from fashion shows in order to identify patterns and forecast trends for both businesses and consumers.

https://www.alizila.com/high-tech-hues-alibaba-algorithm-has-chinese-shoppers-looking-their-best-this-fall/ 

A Guide To China’s Top Livestreaming Apps

More and more businesses are utilizing the e-commerce potential of live streaming, whether it be for performance art exhibitions, video games, or private luxury consultations.  Here are the top four live streaming platforms in China that luxury brands should be aware of because algorithm-driven short-video apps now account for the majority of online advertising.

Douyin

Due to its low entry barrier for product sales, Douyin’s live broadcast feature is especially well-liked among young consumers. Popular KOLs’ promotion of products can result in immediate sales. The app has successfully established a business model that functions as a personal and commercial platform thanks to additional alluring features like Douyin’s VIP Room, Flagship Store, and Global Choice. 

Kuaishou

Luxury brands have historically paid close attention to apps like Douyin and Bilibili, but with 578 million MAU and nearly $40 billion in revenue in the fourth quarter of 2021, Tencent-backed Kuaishou is becoming more and more difficult for major brands to ignore. Millions of users still rely on the app to buy cheap food and beauty products on a daily basis. 

YY live

YY Live offers a devoted user group of paying subscribers for a large number of content creators, even though it doesn’t have as many MAUs as top platforms Douyin and Taobao Live. The social network is positioned as being more focused on entertainment than strictly e-commerce by the platform’s hosts, who highlight streaming and chat features with virtual currency that is later converted into real money. 

Taotao live

Taobao live, which was introduced in 2016, draws both Chinese and foreign audiences with a mix of entertaining and business-related content. Taobao’s wide selection of reasonably priced goods contributes to some of its success in the fashion industry. Taobao makes it simple for livestreamers to maximize the speed and agility of the number of products they can try on, review, and sell to devoted audiences. Taobao pairs with an incredibly quick supply chain response. 

https://jingdaily.com/livestream-ecommerce-platforms-douyin-taobao/

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NFT and Metaverse in China

January 4, 2022

What does the latest news mean for NFT and metaverse in China? China is one of the countries that has publicly maintained its anti-crypto position, ordering a statewide ban on all crypto-related transactions earlier this year and threatening defaulters with fines.

Not only that, but officials in the country have begun a crackdown on crypto mining activities, citing the detrimental environmental impact as one of the reasons why such activities will no longer be tolerated in the country.

However, despite a difficult year at the hands of China’s anti-crypto government and the Chinese central bank’s request that these be monitored, the country’s IT giants are optimistic about launching metaverse and non-fungible tokens (NFT) businesses.

Companies in the Metaverse Race

The majority of the businesses that registered for trademark registrations belong to the tech sector. This includes well-known brands such as Huawei and Hisense. The former filed a trademark application for “Meta OS”. At the same time, the latter filed many trademark applications in fields such as social services, advertising, and science. 

Tencent, the gaming and Internet giant, has also gotten in on the act, filing nearly a hundred metaverse-related trademark applications, including “QQ Metaverse,” “QQ Music Metaverse,” and “Kings Metaverse.” Also, Epic Games, an American gaming company in which Tencent owns a 40% share, is moving forward with its own metaverse plans, maybe with Tencent’s help.

Alibaba has launched a new company called Yuanjing Shengsheng, with USD 1.58 million in funding. “Sources familiar with the topic” indicated that the new business will focus on metaverse, but did not go further.

Baidu’s Xirang

Baidu is not staying behind with its own metaverse launched last week and called Xirang, “Land of Hope” in Chinese, accessible through a virtual reality app. The biggest search engine in China cools down the expectations. Its representative said that “it could take up to six years for a full launch”.

Meanwhile, the e-commerce giant, JD.com has already issued its first NFTs and they’ve received a positive response. The fintech published five series of the JOY Dog character-themed tokens on its Lingxi platform with minimal fanfare.

RTFKT, a creator of digital goods such as virtual shoes and NFTs, was recently acquired by the international brand, Nike.

Also following White Castle’s entry into crypto, Applebee’s is introducing a new NFT every Monday this month. 

In less than four months, a gaming brand has increased its total worth to $2 billion by joining the metaverse and NFT race. Also, NFTCN, a company that was founded in claims to have worked with over 1,000 Chinese artists and handled over 10 million RMB in NFT transactions. Similarly, many more tech giants and multinational companies are joining the Metaverse & NFT squad.

What Does This Mean for Chinese NFT and Metaverse Enthusiasts?

China has unquestionably established itself as a centre of technology innovation and progress. China’s inhabitants mostly lead the pack in terms of technological adoption.

This is especially true in the emerging NFT field. Google trends data shows that the country is one of the top three countries in the world for “NFT” searches.

According to Grayscale data, Chinese officials implying space surveillance simply means that residents of both countries may have limited access to the $1 trillion space potential. A total crackdown on the sector isn’t completely off the table. 

We’ve seen brands experimenting with NFT-like offerings like e.g. Burberry sold NFT deers together with a limited edition scarf during the 11/11 shopping festival. It was also a part of Tmall’s Metaverse Art Exhibition. Drops of limited editions created by luxury brands very often spark enthusiasm from Chinese consumers especially when the concept combines an innovative approach. Despite that the usability of the tokens is quite low, the items sell out quickly and are in high demand. 

Predictions

We believe that metaverse and NFT will only grow further in China despite the challenges and different factors and environments. Given the fact that all the Chinese Internet giants – BAT (Baidu, Alibaba, Tencent) are already launching their own metaverses and strong adoption of online payments (with virtual yuan rolling out by the banks). These are strong indicators of the potential of the online reality.

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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WeChat Stats 2021

December 29, 2021

Weixin, which means micro message in Mandarin, was the name given to WeChat when it first debuted in 2011. It began as a simple communication programme, essentially a Chinese equivalent to WhatsApp, as its name suggests. The platform was developed and owned by Tencent, a Chinese internet giant and one of the world’s most valuable firms.

WeChat began as a simple messaging network, but it has evolved into much more. WeChat has basically become the home screen for many Chinese smartphone users thanks to its mini programmes platform, which allows almost any operation to be accomplished from within the app.

That being said, if you want to extend your business into the Chinese market, you’ll need a strategy that centres mostly around WeChat marketing, with an emphasis on WeChat users.

Here are some interesting WeChat statistics to help you see how powerful this platform really is. After all, there’s nothing like hard evidence, right?

WeChat: Active Users
WeChat has a monthly active user base of about 1.225 billion people.

Since its release in January 2011, it has grown by leaps and bounds. It evolved to become an important aspect of people’s lives, allowing them to communicate with friends and family via text messages, voice conversations, and video calls.

The aggregate monthly active users of Weixin and WeChat reached 1.225 billion in December 2020, up 5% year on year. Every day, 45 billion messages are sent and received on WeChat.

WeChat: User Demographics
Almost 40% of WeChat users are between the ages of 25 and 35 years old. Females account for 42.8% of users, while males account for 57.2%.

25 % of WeChat users in China are between the ages of 25 and 30, while another 13.8 % are between the ages of 31 and 35. Users under the age of 24 make up the greatest age demographic (33.5 %).

This is closely followed by users over the age of 41, who account for 19.1% of the total. If your company caters to these demographics, WeChat marketing could be very helpful to you.

WeChat Pay & Mini Programs Stats
WeChat Pay is used by 87% of Chinese consumers to make online payments and WeChat Mini Programs are used by almost 400 million people every day.

WeChat Pay is the second most popular online payment service in China, trailing only Alipay. Men and women make up an equal number of users, and the majority of its consumers (34%) are between the ages of 25 and 34, with the second-largest sector (28%) being between the ages of 35 and 44.

More than 400 million people utilise Mini Programs on a regular basis, resulting in total sales (GMV) more than double in 2020.  In addition, the average number of Mini Programs utilised per user climbed by 25% year over year, and the average transaction value increased by 67%.

WeChat: Market Share
WeChat probably accounts for 10-15% of the social media market, with over 1 billion active users. WeChat, on the other hand, is arguably the most popular social site in China, accounting for 34% of the country’s total data traffic

No other app in the world has this level of dominance in such a big market. In comparison, Facebook accounts for only 14.1% of North American traffic. In China, WeChat accounts for more than double that.

WeChat: Revenue
WeChat made 108.2 billion RMB in sales in 2020. In 2019, they received 82.3 billion RMB, compared to 72.7 billion RMB in 2018.

The 2021 stats for WeChat’s revenue is yet to be released, but with their constant innovation, its revenue is expected to rise again. This year, the Chinese messenger’s mini-programs facilitated 1.6 trillion RMB in annual transactions. If the increase in revenue attributed to their mini-programs is any indicator, they’ve had a fantastic year.

The Future of WeChat
WeChat will certainly be successful in China and will continue to expand. WeChat’s penetration rate in Western countries is expected to rise as well outside of the country. COVID-19 has hindered WeChat’s growth because of travel restrictions that prevent Chinese tourists from visiting. However, once the pandemic has passed, WeChat, particularly WeChat Pay, is likely to make a more serious foray into foreign markets.

In fact, Europe has been identified as a crucial growth region. WeChat Pay had been popular among businesses that serve Chinese tourists prior to the outbreak. As a result, the number of merchants accepting WeChat Pay in Europe climbed by 3.5% in 2019. Around 11% of Chinese overseas tourism was spent in Europe.

Conclusion
The stats presented above is rather remarkable and demonstrate how strong WeChat has proven to be. So, if you haven’t already considered incorporating it into your entire marketing strategy, now is the time to do so.

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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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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WeChat for Beauty/ Makeup Sector

November 9, 2021

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

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

Beauty Brands and WeChat

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

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

 

Why WeChat for Digital Marketing?

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

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

 

How can WeChat Benefit your Beauty & Service Business?

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

 

Conclusion

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

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

 

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What’s New in China This Week?

November 2, 2021

How Chinese Retailers Are Reinventing the Customer Journey

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

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

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

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

 

Luxury Brands and 11/11

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

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

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

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

 

China Brands Go Global

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

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

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

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

 

WeChat Brand Channel

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

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

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

 

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

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

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

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

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

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

 

One mobile phone number can register multiple WeChat ID

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

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

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

 

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

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

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

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

 

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Podcasts in China

November 2, 2021

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

Ear Economy in China

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

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

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

 

The Growing Popularity of Podcasts in China

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

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

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

 

Chinese Podcast Listeners’ Demographics

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

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

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

 

Conclusion

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

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

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

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China’s Weekly Overview

October 26, 2021

Does Your Brand Need a Weibo Profile?

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

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

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

 

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

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

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

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

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

 

Brands invest in Metaverse 

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

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

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

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

 

Kuaishou brand advertising multi-form help live marketing

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

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

 

 

 

 

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