Discovering Possibilities: Assessing the Latest Advancements in China’s Industry

January 3, 2024

1.China’s Video Platforms Under Scrutiny Amid New Gov’t Campaign

  • The short video market in China has grown significantly; as of June, there were 1.02 billion online short video users, up 14.54 million from December 2022. 
  • Despite this expansion, the industry faces criticism for widespread dissemination of fabricated content. Content producers frequently create videos that cater to vulgar tastes or share sensationalist news in an effort to increase viewership and profits.
  • To address these concerns, Douyin, the Chinese version of TikTok, introduced measures in May requiring content creators to clearly label AI-generated content. This helps users distinguish between virtual and real content. 
  • Additionally, Weibo, the microblogging platform, initiated a trial of a “side note” function in September, similar to “community notes” on X (formerly Twitter). During this month-long campaign to counter inappropriate content and fake news, verified users can fact-check posts. 
  • Accounts or platforms found to be in violation face closure and penalties, as issued by the nation’s top internet watchdog.

LINK: https://mp.weixin.qq.com/s/CSDtfyeBj4SGDh37KGr46w

 

2.WeChat live shopping GMV hits 100 billion RMB

WeChat revealed on 11 December that WeChat’s shopping feature achieved 100 billion (13.9 billion USD) in gross merchandise volume this year.

Even with this remarkable number, sales of the specialized short video apps Douyin and Kuaishou, which are now the preferred online shopping destinations for many Chinese consumers, are still far below this amount. Douyin is expected to surpass Kuaishou’s sales of 800 million RMB (112.4 million USD) this year, with sales of 2 trillion RMB (281 billion USD).

Given that it has already developed a “pretty significant high-income and affluent customer base,” WeChat is now well-positioned to benefit from the expanding market for luxury live shopping. WeChat Channels can hopefully carve out a niche as the go-to destination for luxury live shopping, distinguishing itself from everyman apps Douyin and Kuaishou.

LINK: https://daoinsights.com/news/wechat-live-shopping-gmv-hits-100-billion/

 

 

3.China’s Gen Z ‘city walk’ phenomenon is good for brands

  • More than sixty percent of city walkers are wealthy, college-educated women in China’s first-tier cities between the ages of eighteen and thirty-five.
  • A growing number of lifestyle brands have already collaborated with regional influencers to produce themed city walks that are open to the public as part of their fan community.
  • To launch the brand’s newest coloring shade, Honey Light Gold, Schwarzkopf staged a “Color District” parade at Shanghai TX Huaihai Plaza. Taking advantage of the popularity of City Walk, the event brought together 10,000 spectators for the parade to celebrate bold styles and over 100 beauty KOLs.
  • Peco, a Chinese designer bag brand, adopted a playful approach with a “Dog Walk Show” on the streets of Shanghai to celebrate its ninth anniversary in late September. The brand styled nine models and dogs to stroll along the streets of Shanghai, with bag straps redesigned into leashes.
  • City walk’s resurgence is a uniquely contemporary Chinese phenomenon. The common thread uniting these city walk-related brand events is young people’s desire to get out more on the streets and live more in the moment.

 

 

 

 

 

 

LINK: https://jingdaily.com/posts/life-in-china-is-back-to-normal-so-why-are-foreign-tourists-skipping-the-country

 

4.Wechat account  test marketing content limit pop-up window

Users have been receiving relevant pop-up prompts in some WeChat account articles that contain marketing promotion information. These prompts indicate that the current content may contain unaudited third-party commercial marketing information, and users have the option to either continue reading the article or leave it.

Regarding this, a WeChat representative stated that “the pop-up window function is currently in the testing stage, and it is not a violation that will pop up; instead, the user will be repeatedly reminded and warned, and if the violation stays, the pop-up window will appear.”

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Uncovering Potential: Evaluating the Most Recent Developments in China’s Sector

December 6, 2023

1.Alibaba is being urged by Jack Ma to “change and reform” 

In an internal memo, Alibaba founder Jack Ma made an infrequent appearance and urged the e-commerce behemoth to “change and reform” following rival PDD’s stronger earnings report, which almost brought Alibaba’s market capitalization within striking distance. 

Ma called on Alibaba staff members to return to the company’s mission and vision to reform in order to secure “tomorrow and the day after glory,” while congratulating the eight-year-old PDD for its decision-making, execution, and efforts over the previous few years. 

Even though Taobao and Tmall Group are the most profitable divisions of Alibaba, new players in the e-commerce space, such as PDD and ByteDance’s Douyin, are posing a threat. 

Ma continued, saying he believed AI e-commerce was only getting started, which offered both an opportunity and a challenge. This statement aligns with Alibaba’s primary strategic focuses, previously disclosed by the new Alibaba CEO Eddie Wu, which prioritise being “user first” and “AI-driven.”

LINK: https://36kr.com/p/2538801460323843 

 

2.Prada showcases beauty and power with women’s national football players 

Three players from China’s women’s national football team—Yang Lina, Chen Qiaozhu, and Dou Jiaxing—participated in the launch of Prada’s newest campaign on November 21. This campaign followed the format of their campaign with 4 other Chinese women athletes early last year. Prada and Douyin, the Chinese counterpart of TikTok, collaborated to release a fashion shoot video and two clips featuring football players conducting one another’s interviews.

Prada officially partnered with the women’s national football team in July, just before the FIFA Women’s World Cup. 

The players and the Chinese national team received a resounding reception online, garnering over 35,000 likes across the three videos and hundreds of comments, proving that their efforts were worthwhile.

LINK: https://daoinsights.com/news/prada-showcases-beauty-and-power-with-womens-national-football-players/

 

3.Virtual bling takes over Chinese social media

Young Chinese consumers have discovered a creative way to enjoy a luxurious lifestyle without having to pay the price tag, in an era of digital technology where image frequently takes precedence. With photo editing, users can virtually try on and showcase luxury items like jewellery, handbags, and cosmetics without having to pay for the real thing. This new trend is called dianzi dapai, or “digital high-end brands” in English.

Because it gives young people an alternative to traditional luxury consumption, this newly discovered virtual luxury experience is appealing.

Mixing irony and fun, the trend indicates a shift in how the younger generation perceives and interacts with luxury brands. 

Given that numerous luxury brands own patents on their designs, legal experts caution against possible infringement issues.

It sends a strong message to luxury brands hoping to get into or grow in the Chinese market: success in this market will largely depend on how well they can combine the appeal of their goods with the technological sophistication of this market.

LINK: https://daoinsights.com/news/virtual-bling-takes-over-chinese-social-media/

 

4.What luxury brands can learn from Zara’s new China livestream concept

Zara is setting the bar. At first glance, the brand’s most recent broadcast could be mistaken for a movie or music video backdrop thanks to its 9,000-square-meter set, 12 cameras, and 50 professionals.

 Zara’s was much more controlled and orchestrated. The presenter demonstrated the brand’s sophistication and style by taking her time while posing for the products.

With no live broadcasting noise or sales, the anchors were conversing casually about merchandise, coordinated looks, and fashion.

Luxury brands could integrate interactive elements into their broadcasts, like live Q&A sessions with designers or virtual tours of ateliers, for a more holistic brand experience. Making the livestream not just informative but also engaging and memorable.

The goal should be to create a memorable brand experience that resonates with the audience, fostering loyalty and elevating the brand’s status in the consumer’s mind.

LINK: https://jingdaily.com/china-hard-luxury-report-promo/ 

 

5.WeChat Index Adds Live-streaming as Data Source

WeChat Index added livestreaming as a new source to help users better understand the popularity of keywords within the WeChat ecosystem.

WeChat index live-streaming source data will be factored into the computation starting on October 1, 2023. 

The following changes are expected to be observed: 

-The index number of keywords will increase.

-Records of changes in keywords may disappear or be added.

-The data source chart adds “live” sources, and the proportion of each source channel will change.


LINK: https://mp.weixin.qq.com/s/lzNt8iVAgwRygrfmclrM5w

 

6.Luxury Lessons From China’s Singles’ Day 2023

Luxury Brands Adapt to Consumer Behaviour:

Acknowledging the growing trend of “exquisite poverty” (精茴穷) among younger consumers, luxury brands deliberately engaged in Singles’ Day promotions. Companies that understood changing consumer tastes, like Gucci, Balenciaga, and Max Mara, provided exclusive items and interest-free instalment plans.

Trends and AI Integration:

During the event, Gen-Z consumers demonstrated a preference for jewelry, home furnishings, and wedding products. Their skill at taking advantage of platform discounts presented difficulties, though. Additionally, the integration of AI and the promotion of China-focused products emerged as prominent trends, indicating a shift towards technologically-driven shopping experiences.

AI produced virtual try-ons for MCM and Ralph Lauren, using the “Miaoya Camera” to create consumer avatars for clothing try-ons. Tmall (and Taobao) introduced 10 free AI features for merchants and launched a generative AI chatbot named Wenwen to address user queries.

The vulnerabilities of the platform have grown to be a serious problem. By employing reverse bundling strategies to take advantage of sales on high-end merchandise from labels like Dior, Versace, Burberry, and Ralph Lauren, young consumers are gaming the system. These tactics are widely discussed on social media platforms like Xiaohongshu, and their prevalence has disrupted business operations.

It’s a key occasion for consumers in China’s fourth- and fifth-tier cities who lack access to physical luxury brand stores in their areas.

While Tmall and JD.com accounted for the majority of sales during the event, orders across other social commerce platforms were up significantly: 20% on Pinduoduo, 50% on Kuaishou—and Douyin saw a jump of 119%. Xiaohongshu was a big winner too. According to the company, live-streaming sales saw an astounding 420% increase in addition to a 380% year-over-year increase in GMV. 

LINK: https://www-forbes-com.cdn.ampproject.org/c/s/www.forbes.com/sites/gemmawilliams/2023/11/15/luxury-lessons-from-chinas-singles-day-2023/amp/

 

7.Douyin’s e-commerce clampdown: platform cancels controversial sales star Xinba

Popular livestream anchor Douyin banned Xin Youzhi, also known as “sales king” and Xinba, at noon on November 2 for repeatedly posting misleading content, demeaning others, and inciting strife on China’s version of TikTok.

Douyin unveiled new rules earlier this year that prohibit offensive language, unfair competition, and malicious speculating among anchors’ online conduct. 

The move against Xinba is an indication that the industry leader in social commerce is taking tough measures against vendors in an effort to raise the caliber of its live streaming offerings.

LINK: https://jingdaily.com/douyins-e-commerce-clampdown-platform-cancels-controversial-sales-star-xinba/ 

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Revealing Potential: Assessing the Latest Advances in China’s Industry

November 9, 2023

1.WeChat added recommended attention traffic entry

Addition of traffic entry to the WeChat account homepage. After selecting “follow account,” the account of “other followers also like” will appear, asking how many friends have looked at the account. If you click the “more” button in the upper right corner of the screen, a list of 18 suggested accounts for attention will appear.

 

2.Tmall Double-11 155 brands opened to break 100 million, the first hour of 70,000 brands more than last year all day

On October 31, at 8 PM, Tmall Double 11 officially opened for business. 155 brands were available for purchase, and in the first hour, 71,900 brands were sold—more than on the first day of the previous year.

A total of 14 brand live broadcasts broke 100 million, 280 store direct broadcast rooms broke 10 million, the opening of 29 direct broadcast rooms broke 100 million, and the store broadcast became a new dividend for brand growth. 

The live broadcast of drinks continued to be hot, with a year-on-year growth of 782% in 4 hours. Azhuo Tavern, wine fairy Liangge became the second Taobao, the fourth broke the million broadcast room.

 

3.Xiaohongshu taps into outdoor fall trends with “Go Wild Festival

  • Xiaohongshu launched its second annual “Go Wild Festival” on October 19, collaborating with prominent outdoor media organizations such as “Outdoor Adventure” and “Hiking in China.”
  • Along with collaborating with numerous outdoor brands, the online platform planned a series of offline events that coincided with fall.
  • The campaign covers a wide range of outdoor sports, such as cycling, hiking, fishing, and rock climbing.
  • The launch of the “Go Wild Festival” not only aligns with the platform’s ethos but also magnifies the burgeoning interest in outdoor activities among today’s youth.

LINK: https://daoinsights.com/news/xiaohongshu-taps-into-outdoor-fall-trends-with-go-wild-festival/

 

4.Douyin anchor’s ‘vulgar’ YSL beauty livestream a cautionary tale for brands this Singles’ Day

  • As she advertised YSL beauty products on her show, top Douyin anchor Traffic Yellow (红绿灯的) faced accusations of being impolite and vulgar due to her messy hair and twisted expressions. 
  • YSL’s official Weibo account featured screenshots of her that many netizens shared, criticizing the livestreamer for pushing the foundation cushion of the upscale brands.
  • In order to determine whether the live broadcast room’s content and price point are consistent with their brand, brands must conduct due diligence. 
  • Luxury brands like YSL would be well advised to put image alignment ahead of quick sales in order to maintain their exclusive aura, even though some live streamers do not have large followings.

LINK: https://jingdaily.com/ysl-beleaguered-douyin-top-anchors-livestreaming-crazy-little-brother-yang/

 

5.How to build and maintain customer loyalty in Chinese market
In China, customer loyalty, especially among Generation Z, is a crucial consideration.

  • Key strategies for building and maintaining customer loyalty in China include:
  • Emphasizing good product quality as the foundation of loyalty.
  • Implementing effective marketing strategies that connect with customer values and emotions.
  • Personalization to cater to individual customer needs and stand out in the market.
  • Utilizing loyalty programs, such as membership cards and rewards, to encourage ongoing engagement.
  • Chinese brands are successfully leveraging the Guochao trend by incorporating cultural elements into their products and marketing, enhancing customer loyalty.
  • KFC’s localization strategy in China, with regionally tailored menu items, has contributed to customer loyalty in the country.

LINK: https://daxueconsulting.com/customer-loyalty-in-china/

 

6.Sign of the times: Halloween with Chinese characteristics takes flight in Shanghai as cultural jamboree sees young lampoon public figures

  • Young people in China have adapted the Western Halloween celebration into a “Meme Playing Festival” in which they lampoon controversial public figures and express themselves through performance art.
  • Not only did the extravagant costumes on show and the carnival atmosphere draw sizable crowds of people, but they also sparked a lot of conversation on mainland social media.
  • Numerous youths also took advantage of the chance to be dissatisfied with their current employment circumstances.
  • A young man in a plaid shirt with disheveled hair and dark bags under his eyes introduced himself as “The agent.” The suggestion was that he needed to be prepared to work anywhere and at any time, as evidenced by the tea drink and traditional black backpack he was carrying.
  • “Chinese people have their own way of celebrating ‘foreign’ holidays,” someone said. Could this be a novel manifestation of cultural self-assurance?

LINK:https://www.scmp.com/news/people-culture/trending-china/article/3240127/sign-times-halloween-chinese-characteristics-takes-flight-shanghai-cultural-jamboree-sees-young 

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Uncovering Prospects: Examining the Most Recent Developments in China’s Market

October 31, 2023

Singles’ Day 2023: Retailers pursue low-priced strategies in hopes of consumers opening wallets

  • Chinese e-commerce companies are vying with one another to offer customers tempting discounts on Singles’ Day this year. However, the nation’s largest online shopping event has gradually lost its shine as promoting low prices has evolved into a yearly marketing tactic for companies that are having trouble reviving customer sentiment. 
  • As the 11.11 pre-sale period begins, up-and-coming retailers like Douyin and Kuaishou, as well as more established competitors like Alibaba and JD, are resorting to offering direct discounts to customers. This is because they still believe that the massive event will motivate customers to divulge their personal information and open their wallets, particularly in light of China’s uneven economic recovery.

LINK:https://technode.com/2023/10/24/singles-day-2023-retailers-pursue-low-price-strategies-in-hopes-of-consumers-opening-wallets/

 

Ctrip introduces a feature for booking restaurants abroad.

In addition, Ctrip announced that it will be in the Ctrip App and overseas version of Trip.com simultaneously online overseas restaurant booking function. The first phase covers more than 6000 restaurants in more than 1000 cities around the world. The Ctrip Group global partner summit was recently held in Singapore on October 26. During the meeting, the 2023 Ctrip Food Forest “global restaurant selection list” was released for Paris, New York, London, and other 24 cities overseas. 

Taobao uses an AI shopping assistant to prepare for Double 11.

For the first time this year, AI will be assisting Double 11 bargain hunters. Taobao Wenwen, Taobao’s integrated AI model, uses text understanding and generative capabilities to respond to user queries.

  • As part of the Double 11 special promotional period, the AI shopping assistant will combine product information with tips on the best discounts, giving shoppers added confidence in their decision-making.
  • The intention is to retain users who visit Taobao exclusively and discourage them from using Xiaohongshu, Baidu, and Douyin for recommendation-seeking purposes.
  • Other online reviews note that the recommendations given by the AI assistant sometimes do not correspond to the question asked and that the overall quality and coherence of the content need to be improved.
  • Taobao Wenwen’s user base is currently only 5 million, and many more will be required to train it before it can rival Xiaohongshu’s 190 million monthly active users as a reliable sidekick.

LINK: https://daoinsights.com/news/taobao-gears-up-for-double-11-with-ai-shopping-assistant/

 

What Brands Should Know About Singles’ Day 2023: China’s Version of “Black Friday”

  • Value innovation, or pursuing low cost and differentiation simultaneously, is this year’s winning Singles’ Day tactic for the luxury market.
  • Value lies in thoughtful packages supported by persuasive marketing narratives rather than aggressive pricing.
  • Discerning Chinese luxury consumers at a shopping festival will accept paying less for the same value or paying the same for more value.
  • AI improvements to customer interactions are being introduced in this year’s festival. It makes wiser purchasing decisions possible by deciphering intricate discount combinations.

LINK:https://jingdaily.com/chinas-black-friday-is-here-what-brands-need-to-know-about-singles-day-2023/

 

Internet addiction: China rolls out most comprehensive regulations yet

  • The regulations, which go into effect on January 1, 2024, ask technology companies and schools to work together to protect minors online by providing specialized intervention software and better internet literacy education.
  • ByteDance decided to implement an automatic “teen mode” on their popular video-sharing app Douyin in 2021 due to growing government scrutiny. This mode places limitations on the amount of time users can spend using the app.
  • The regulations, according to the statement, are designed to protect young people’s “physical and mental health” online from various threats, such as invasions of privacy, cyberbullying, and internet addiction.

LINK:https://daoinsights.com/news/internet-addiction-china-rolls-out-most-comprehensive-regulations-yet/ 

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Delving into the Chinese Market: Recent Advancements

August 28, 2023

  1. As people spend less on real estate and more on travel, tourism in China to grow faster than its GDP

  • The tourism industry, hit hard during the pandemic, has emerged as a rare bright spot since the country reopened its border in December.
  • For the whole year, domestic tourist traffic is expected to reach an estimated 4.5 billion, roughly 76 per cent of the levels in 2019.
  • The surge in earnings was mostly attributed to domestic consumption, with overseas travel by Chinese tourists recovering only to 40 or 50 per cent as airline capacity hasn’t fully recovered (international airline seat capacity only recovered to around 37 per cent of pre-Covid levels by April this year).
  • Still, mainland China is the world’s largest outbound travel market, both in terms of the number of trips and total spending.
  • One of the most important [consumption] trends is that big-ticket and mid-market purchases are becoming more limited.
  • People are switching their spending habits from buying expensive products to paying for experience-type consumption.

Link: https://www.scmp.com/tech/big-tech/article/3232185/chinas-tourism-grow-faster-its-gdp-people-spend-less-property-more-travel-tongcheng-executive-says

 

  1. Xiaohongshu finds success with soft-sell approach, increases focus on livestreamed e-commerce: report

  • The number of brand merchants selling on Xiaohongshu more than doubled from March to May this year compared to a year earlier.
  • While safeguarding its community content ecosystem remains a priority, Xiaohongshu has kept a quiet eye on the evolving e-commerce arena in recent years. The platform had elevated livestreaming operations to a standalone division, a move that centralized the oversight of live streamed content and e-commerce activities.
  • Promoting purchases through high-quality posts and live streamed content seems to be a more fitting growth model for Xiaohongshu’s e-commerce effort.
  • Xiaohongshu places less emphasis on fan numbers when seeking hosts, but instead appreciates those with aesthetic sensibilities or professional capabilities in certain fields.

Link: https://technode.com/2023/08/23/xiaohongshu-finds-success-with-soft-sell-approach-increases-focus-on-livestreamed-e-commerce-report/

 

  1. Taobao to arm apparel retailers with AI technologies

  • Alibaba-owned e-commerce platform Taobao has unveiled two AI-powered tools: “AI-assisted outfit pairing” and “AI fitting room” designed for its apparel merchants. The announcement was made at the 2023 Taobao Fashion New Force Week Press Conference which was held in Hangzhou on 10 August.
  • On top of revealing the seven 2023 Autumn/Winter fashion trends, which are “Sweetheart Barbie Style, New Vintage, New Chinese Clothing, Fashionable Bookworm, Lightweight Outdoors, Street Dopamine, and Quiet Luxury Style”, Taobao also introduced three schemes that will aim to drive growth for retailers in the fashion clothing sector.

Link: https://daoinsights.com/news/taobao-to-arm-apparel-retailers-with-ai-technologies/

 

  1. Are love-themed shopping festivals losing their appeal in China?

  • Baidu search results show Qixi-related searches during the pre-festival run-up period declined to almost half of last year’s volume
  • Given Qixi’s importance in previous years, however, the major decline in searches remains significant. In 2022 , Qixi was the fourth “hottest” marketing festival.
  • When taken together with recent data from Valentine’s Day and 520 (May 20, “Internet Valentine’s Day”), the dip in Qixi buzz this year could indicate a larger decline in the popularity of the “romance economy” among Chinese consumers. 
  • It is too early to tell if this year’s figures indicate the beginning of a long-term shift in the importance of love-themed shopping festivals, though waning enthusiasm for shopping festivals certainly fits the post-pandemic phenomenon of sustained rational consumption.

Link: https://daoinsights.com/news/are-love-themed-shopping-festivals-losing-their-allure-in-china/

 

  1. Douyin: 2023 Travel Industry White Paper

  • Short video platform Douyin (the Chinese version of TikTok) released a report this June, looking at trends in travel content and users who are interested in travel, in the first three months of 2023
  • In the first three months of 2023, Douyin saw an increase in searches for travel-related content of more than 300%, compared to the same period one year earlier. The number of travel KOLs on the platform also increased significantly year on year
  • According to the report, 407 million Douyin users are interested in travel, a year-on-year increase of 13%. The majority are women, with millennials accounting for the largest demographic, followed closely by Gen-X. Previously, Douyin was known as a platform with a particularly high post-90s user base, so it’s interesting to see how broad the age range of users is now, as it relates to travel
  • Among the top 10 travel destinations by search volume in Q1 2023, the only one outside of China is Iceland

Link: https://dragontrail.com.cn/resources/blog/douyin-2023-travel-white-paper?mc_cid=a3698cb19a 

 

  1. Japan bets on WeChat to hook Chinese tourists

  • As Japan’s inbound tourism continues to fall short of pre-pandemic levels, the Japan National Tourism Organisation (JNTO) is seeking a new way to generate interest among its main group of visitors.
  • Japan launched a new mini-program called 观美日本(“Appreciate Beautiful Japan”) which functions as a mobile catalog of products and experiences available in Japan, displayed in a vertical feed with images as the focus, similar to an Instagram or Xiaohongshu feed.

Link: https://daoinsights.com/news/japan-bets-on-wechat-to-hook-chinese-tourists/ 

 

  1. An A to Z guide to China’s ‘core’ fashion trends

  • American retrocore, a distinctly American aesthetic has taken off in China, and it’s giving “popular kid on campus” vibes.
  • Asian baby girl, false eyelashes, dyed hair, tattoos, and rave clothing are the hallmarks of the ABG look. the aesthetic has grown into a global subtrend, with the hashtags “ABG girl” and “ABG makeup” (#ABG女孩 and #亚裔辣妹妆) on Xiaohongshu accumulating over 7.2 million views and 230 million views, respectively. 
  • Barbiecore, on Xiaohongshu, the hashtags “Barbie outfits” (#芭比穿搭) and “Barbie makeup” (#芭比妆) have 21 million and 10 million views, respectively. More here. 
  • Cleanfit, Similar to city boy, the cleanfit trend also relies on muted colors and minimalist designs. Dopamine dressing, As its name suggests, this trend is all about boosting one’s mood through bright, fun apparel. R
  • French girl, Chinese fashionistas fatigued by lockdowns or simply yearning to be transported to the city of love have turned to retro, floral dresses for comfort. 
  • New Chinese style, Chinese fashionistas are also putting their own aesthetic on the world stage, giving traditional cultural clothing a modern twist. 

Link: https://jingdaily.com/gen-z-core-fashion-trend-guide/ 

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From Gurus to Game-Changers: Embracing Key Opinion Professionals in Content Marketing

August 16, 2023

Influencer marketing is one of the pillars of communication strategies for all brands wishing to make their footprint in China. These influencers referred in China as KOLs, or Key Opinion Leaders, are individuals who have established themselves as experts or influential figures in specific industries or fields, particularly in the realm of social media and digital marketing. They have amassed a large and engaged following on platforms like Weibo, WeChat, RED,  Douyin (the Chinese version of TikTok), and other social media channels. KOLs hold significant sway over their followers’ opinions and purchasing decisions. Their presence is crucial for brands looking to market their products or services to a Chinese audience. We wrote more about idol economy and who KOLs are on our blog.

💄 Discover more about RED and RED marketing

But in the fast-paced world of digital marketing, a new breed of influencers is capturing the limelight and revolutionizing the way brands connect with their audiences. Today we’ll introduce you to Key Opinion Professionals (KOPs), how they are transforming content marketing, and why brands are swooning over their compelling charm.

Meet the Trailblazers: Key Opinion Professionals (KOPs)

Emerging from the domains of influencer marketing, KOPs offer a novel vantage point within the realm of content marketing. Contrary to KOLs, this type of content creators offer a profound exploration into their specialization, unique knowledge, and entrancing revelations.

They are not your typical influencers, by any means. Usually, KOPs boast a high education and a wealth of experience in their chosen fields. The internet age has turned them into digital artisans, sharing their wisdom through captivating visuals and videos. They entice both devoted fans and new consumers looking for professional opinion.

Chinese consumers highly rely on word-of-mouth when buying a product. They are greatly influenced by recommendations from people they are following on social media. In 2022, 86% of Chinese users visited different online communities to search for related product offers before placing order. This all to reduce potential risk and dissapointment. However, consumers are aware of professionalization of KOLs therefore they start to seek advice from experts in their respective fields.

🇨🇳 Different types of Chinese consumers: Silver Generation

KOPs – Unlocking the Secrets of Vertical Content

Naturally, KOL and KOC tend to emphasize their personal experiences and highlighting advantages of the products often supplied by brands. Unlike KOLs’ broad viewpoints and KOCs’ personal experiences, KOPs take users on an discovery ride through the vastness of their respective vertical knowledge in fields considered relatively niche.

They often represent the industries such as health, technology, engineering, or even law. They dissect product formulas, decode compositions, and unravel the mysteries of consumers’ favorite goods. All of that with the precision and thoughtfulness of seasoned experts. Their professional knowledge comes from years of education and experience. That’s why they possess such ease and confidence in discussing matters that won’t be possible to discover by KOLs. 

Examples of KOPs

KOPs

罗翔 is a law professor at People’s University of China, with 28.5 million followers on Bilibili, he shares deep insights about law, and he also makes content about how ordinary people can live a better and more meaningful life with more understandings about law. He also makes content about philosophy and book reviews.

王德峰 is a philosophy professor at Fudan University, equipped with vast range of knowledge in philosophy, art and music. His unique and interesting way of delivering Chinese and western life philosophy had great impact on young users.

武志红 is a psychologist and a best seller writer, has made his fame publishing several best seller books including the controversial 《巨婴国》The Country of  Giant Babies. Active on Chinese social media, he often shares his take from a professional psychologist POV on recent society affairs.

Key Opinion Leader KOPs

尹烨 is the CEO of 华大集团BGI（a pharmaceutical company), graduated from Columbia university with a PHD, he specializes in life sciences and he has made his appearance on several popular interview shows which attracted huge attention, then he started his own social media channel and is now making content mostly about science, technology and biology.

With more than 30 million followers on douyin, 虎哥说车 mainly creates interesting and insightful content about cars, he started in video sector very early on and has constant resources to controversial cars.

KOPs – Why Brands Fell in Love?

Even though most of KOPs started posting online out of willingness to spread their knowledge, brand quickly took notice. In a world where cautious consumers rule the roost, KOPs are the superheroes that brands crave. 82% of consumers meticulously scrutinize products before purchasing, seeking safety and efficacy. KOPs enter the spotlight with their arsenal of professional insights and authentic recommendations. Effectively, they can be the element that make the difference and seal the deal in the ever-growing decision-making process. For example, beauty brands can work with skincare doctors or chemists to discuss product formulas and give their recommendations based on ingredients used. B2B brands are also more likely to work with KOPs than KOLs due to the nature of their offering. 

 

Unleashing the Power of KOP, KOL, and KOC

The secret formula to content marketing success is the mighty combination of KOL, KOC, and now KOP. When these forces unite, brands can increase their share of voice and captivate users across multiple platforms.  KOLs reach their mass audiences and KOCs add their flair with personal touchpoints, while KOPs help users to confirm their purchase decision with authoritative product endorsements.

 

Conclusion

While KOP marketing is a relatively new concept. However it’s surely a much needed phenomenon in the highly saturated influencer industry. Consumers seek for more authenticity and reliable source of information. KOPs with their mastery of vertical expertise, combined with the allure of KOLs and the authenticity of KOCs, makes for an unbeatable trio. As consumers increasingly seek genuine recommendations and professional knowledge, KOPs are soaring high as trusted beacons of influence. In the coming years, we will surely see more and more influencers wearing lab coats and other professional attires populating feeds of the top Chinese platforms. 

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Exploring China’s Market: The Latest Updates

August 14, 2023

1. LinkedIn announced its decision to discontinue InCareer in China: 

  • Effective August 9, the decision was attributed to the fierce competition and challenging macroeconomic climate in the Chinese market, the firm stated. 
  • LinkedIn introduced the InCareer app for the Chinese market in December 2022. 
  • As of March of this year, InCareer had approximately 95,9600 monthly active users (MAUs), while its competitors 51 Job and Boss boasted 18.5 million MAUs and 17.3 million MAUs, respectively.
  • LinkedIn had previously expressed its intention to shift its strategic focus in the Chinese market toward assisting Chinese companies with overseas talent recruitment, brand marketing, and skill training.

https://www.ithome.com/0/711/201.htm

 

2. The Chinese short video platform Kuaishou showcased a new AIGC solution and AIGC digital human product called Kuaishou Zhibo:

  • The head of Kuaishou’s AI business highlighted that the AIGC solution is built upon Kuaishou’s self-developed foundational large language model. 
  • It will help creators in the generation of text, images, music, videos, and 3D works by providing them with inspiration, creative materials, and intelligent production services.
  • The company is developing technologies such as text-to-image creation, AI-supported cameras, and intelligent video scripting for its portrait camera app Yitian Camera, and its video editing app Kuaiying.

https://www.36kr.com/newsflashes/2381837287157001

 

3. Guochao brew: China’s Gen Z craves a cup of ‘Chinese-style’ coffee

  • More cafés have created a distinctly Chinese atmosphere by incorporating traditional architecture, such as a courtyard, decorating their interiors with antique furniture, and serving drinks in Gaiwans. 
  • They serve as popular spots for dates, chats, studying, and business meetings.
  • The localization goes beyond store aesthetics to infuse Chinese elements into the taste and preparation methods of the coffee as well. 
  • Because these specific product launches rely heavily on novelty, the buzz is often artificial and temporary. 
  • However, Guochao — or the integration of traditional Chinese elements in contemporary life — is no passing phase or gimmick.

https://jingdaily.com/chinese-style-coffee-guochao-gen-z/

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Latest News on China’s Market

August 7, 2023

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

  • Beauty and skincare giant Estée Lauder has inked an exclusive partnership deal with Manchester United in hopes of tapping the club’s fans in China and the Asia Pacific region.

  • In China alone, the men’s beauty market was projected to surpass $10 billion in 2022 and could reach $33.4 billion (240 billion RMB) by 2027.

  • Most male consumers may be relatively new to the skincare game, especially when it comes to premium products.

  • In the first half of 2023, the GMV of men’s makeup on Douyin surged by 364.6 percent year-on-year. With this market being especially open to beauty and grooming, we’d bet that a clever campaign could work wonders.

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

 

2. Male beauty’s next growth engine: Douyin

  • In the first half of 2023, the gross merchandise value (GMV) of men’s makeup sold via Douyin surged 365 percent year on year – Tmall and Taobao combined achieved 6.7 percent growth in the same period.

  • Chinese male beauty brands are quickly expanding on the short video app. Domestic labels claimed seven spots on Douyin’s top 10 best-selling mens’ skin care list, whereas international brands took three places.

  • Male skincare buyers’ profiles: Last year, 70 percent of men’s beauty purchases were made by women, according to a 2022 report from Xiaohongshu. But male buyers have caught up, now accounting for half of male cosmetics purchasers on Douyin.

  • The average age of the male makeup user is between 18 and 30 with an average price of $9.7 (69.2 RMB), significantly lower than on other platforms like Tmall and JD.com.

  • Cooperating with KOLs has proven to be a quick and effective strategy for businesses that want to scale up brand awareness. These influencers are crucial for spreading knowledge about beauty routines.

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

 

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

  • Chinese consumers are looking for better deals and sales across platforms like Douyin and Pinduoduo, where products are often sold for “half or less” than on more established competitor shopping apps.

  • McKinsey found that while many remained loyal to their favorite brands, 47 percent of respondents reported switching retailers to obtain a “lower price/discount.”

  • Travel, restaurants and apparel were the top categories consumers were spending on, the survey revealed.

  • However, international travel in June was still 58 percent lower than pre-pandemic levels, though the number of outbound flights from China is “rising rapidly.”

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

 

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

  • Keeping balance between satisfying the demand of country’s market, while preserving sustainable standards is challenging

  • Chinese consumers are demonstrating a higher attention to environmental issues compared to the previous years, this trend being reflected in several factors, from carbon emissions to locally produced goods.

  • In this sense, the pandemic has represented a turning point for the development of this trend inside consumer’s mindset, many of which are now willing to pay more for environmentally friendly products.

  • Case study of KFC:  Thanks to “Exploring Carbon Reduction” and “The Journey to Carbon Neutrality” initiatives, introduced in their super App, KFC carried out a green rewards program that encourages consumers to not use disposable cutlery, favor in-store pickup, engage in waste sorting, etc.

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

 

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

  • Resale site StockX reported to Jing Daily it had seen more sales of Barbie products in July 2023 than any other month in the company’s history, double sales in July 2022.

  • Among so many names jumping onboard, from Vans, Kipling and Gap, to Pacsun and Nyx, one breaking through the Barbie collaboration noise online is Zara. The Spanish retailer launched a collection on July 21 (the movie release date) inspired by the fashion seen on screen, including a gingham dress, silk pajamas, and other clothing and accessories items

  • Though Zara, Vans, Nike’s Dunk Low sneaker, and Chanel’s themed efforts with the movie all made their way onto social media in China, the clothing and accessories collection from local fashion brand D’izzit is trending in the mainland.

  • Barbie mania is reaching all corners of commerce, from fashion all the way through to luxury hospitality. The W Hotel in Osaka, Japan, is one that’s proven a hit among netizens.

  • Thanks to Barbie nostalgia being at an all-time high, the IP’s pulling power feels unbeatable. Some consumers might be all pinked out, but this is definitely not the end of Barbiecore.

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

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Unleashing the Pulse of China’s Market: Updates and Breaking News.

August 2, 2023

 

  1. JD launches vertical AI model, targets retail, finance and education sectors:

  • Context: Beijing currently is home to approximately half of the more than 80 large models available in China
  • JD on Thursday introduced its own large AI model ChatRhino. Positioned as a vertical AI model that offers industry-specific use cases, JD’s AI offering arrives a few months later than rivals Alibaba and Baidu. 
  • Why it matters: JD is the latest Chinese tech major attempting to upgrade its offerings with AI and large models. The company said ChatRhino combines 70% generalized data and 30% native intelligent supply chain data, targeting a number of sectors including retail, finance, education, and government.  
  • Details: The company has already utilized the AI model to enhance customer service, facilitate code writing, and improve product recommendations, she added.

JD’s healthcare unit also unveiled a specialized model designed for the medical industry that is capable of quickly adapting and learning from various healthcare scenarios, which will serve as a technological foundation for remote medical services. The e-commerce giant also showcased its ambition to develop humanoid robots, which will be a key exploration direction for the JD Explore Academy.

LINK:
https://technode.com/2023/07/14/jd-launches-vertical-ai-model-targets-retail-finance-and-education-sectors/

 

 

 

2. Baidu AI products overseas

 

The AI social products “SynClub” by Baidu have recently been introduced in Hong Kong, China, Japan, and other countries. This product uses the latest AI technology of Baidu, so that users can know their own AI friends, and through the company of AI friends, users can chat more interestingly and in-depth.

 

3. The “channel retrieval” feature was introduced by the channel.

 

On July 12, the channel launched the “channel retrieval” function for the certification body to support the recovery of the lost agency authentication channel.

It is understood that “channel retrieval” refers to the channel that has completed enterprise and institutional certification or main body verification and can initiate the channel retrieval process and re-operate the channel after the platform verifies the authenticity of the main body.

In the process of initiating the retrieval, it is necessary to pay attention to the following two points: First, the initiator has not created a channel, and it is necessary to use a wechat signal that has not created a channel to initiate the retrieval process. Second, the account must be in normal use, and the account that has been cancelled, blocked, or banned cannot be recovered.

 

 

 

4. Users of the Meituan app can now record and upload brief videos.

 

Meituan has unveiled a new feature on its app that now allows users to shoot and upload short videos. The addition of this feature provides users with more creative ways to engage with the platform and record their experiences.

Meituan’s latest move comes amidst the intensifying rivalry with Douyin within the online local services industry.

The food delivery giant has also made moves to shake up the live-streaming business by hosting more live-streaming events, including monthly live streams on the 18th of each month since April, where participants are offered coupons.

In addition, the company launched its very own platform, Meituan Live, which is currently only visible to a select group.

Meituan continues to evolve as a multifaceted platform in order to stay competitive in the market

LINK: https://daoinsights.com/news/meituan-app-now-supports-users-to-shoot-and-upload-short-videos/

 

 

 

5. China’s newest beauty retail battleground, Douyin, was won by L’Oreal by 1 billion RMB.

 

L’Oréal topped a ranking of brand sales in the first half of the year, hitting a GMV of 1 billion RMB 

Douyin is the nation’s newest retail battleground, and international brands are actively fighting to grow their market share for Gen Z

Social platforms like Douyin are becoming pivotal channels for brands to close the loop in digital commerce

L’Oréal collaborates with roughly 800 to 1,500 Douyin KOLs every month, ranging from mega influencers with over 5 million followers to small-to-medium key opinion consumers

LINK:
https://jingdaily.com/loreal-douyin-china-newest-beauty-retail-battleground-billion-rmb-gmv/

 

 

 

6. Three New WeChat Advertisement Products Online Now

 

Moments Ads brand gallery: advertisement is WeChat’s first vertical multi-screen display advertisement. It supports 3-5 vertical screen video cards displayed at the same time, and the new method of display brings an eye-catching visual experience by creating a high-level window texture for the brand and enhancing the user’s memory of the brand.

WeChat Channels Carousel Ads: advertising supports 3-5 components, which are displayed on large tiles throughout the process. Different cards can be diverted to different official mini programs or different pages of mini programs, or they can be turned to native pages and H5. 

WeChat Search: discovering brand surprises through WeChat Search and finding beautiful gifts for their loved ones for Qixi Festival

LINK:

https://www.luxurysociety.com/en/articles/2023/07/what-should-luxury-expect-post-pandemic-chinese-travellers 

 

 

 

7. Translation vs Transcreation: which one is the right choice?

 

When expanding a business to a new country with linguistic and cultural differences, it’s crucial to ensure that the brand’s message and identity are accurately conveyed to the new audience.

Translation is the process of converting text from one language to another while preserving the original meaning, making it suitable for more literal texts. Transcreation, on the other hand, is a creative approach that adapts the message, cultural nuances, and persuasiveness to resonate with the target audience.

Factors such as the purpose of the text, marketing strategy, target market, and time/budget constraints should be considered when deciding between translation and transcreation for a successful linguistic adaptation.

LINK:

https://mp.weixin.qq.com/s/meZQ7MC_HIHktV-0KSPdhg 

 

 

8. How AI technology is reshaping beauty retail in China

 

Store of the Future on Shanghai’s East Nanjing Road The first of its kind in China, the new concept retail space boasts seven digital touchpoints: an advanced skin analysis device powered by big data; a product recommendation feature based on AI-generated makeup trends; product labels equipped with radio frequency identification (RFID) that unlock a detailed breakdown of ingredients; mobile POS, which allows customers to check out anywhere with a beauty advisor and avoid long queues; and personalized gift packages with the option to add scents and voice messages.

Meanwhile, the Shanghai Municipal Medical Products Administration has granted SkinCeuticals, Estée Lauder, L’Oréal, and Shanghai Chuangyuan Cosmetics stores in Shanghai a license for personalized on-site services. With this license, retail stores can act as mini cosmetic factories, creating products tailored to individual skin types.

Typically, consumers seek the advice of sales assistants or search for product reviews by influencers.  plus the fact that KOLs and personal shoppers may have other motives for recommending certain items (e.g., brand sponsorships).

When stepping into the futuristic concept store, customers are asked to use their WeChat account to sign into the AI experience. Users are then connected personally to a salesperson who helps them through their purchase journey in person and can stay in touch with them once they leave the store.

 

 

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This Christmas, Find Out What Brands in the Chinese Market Have Been Up To

December 22, 2022

In the last decade, Christmas has settled as an important event for brands in China. Of course, it is not as large as traditional Chinese holidays or e-commerce festivals, but many brands, particularly those with Western roots, are celebrating with their fans in various ways. 

Shopping malls, restaurants, and entertainment venues in China’s major cities are all decked out with Christmas trees, and Santa is on his way to deliver gifts to children. This year, we looked at several different international and domestic brands to see how they celebrate Christmas. 

🎄 Read our previous article about how Christmas changed in China over the last couple of years

Christmas in China

When it comes to any festive campaign, social media plays an important role. With WeChat being the biggest social media platform, brands are super keen to get the best engagement for their campaigns. We’ve seen a lot of beautifully crafted interactive articles and WeChat campaigns for this Christmas. Again, we worked with Montagut to produce a fun interactive post that led readers through a short narrated story with a Christmas-themed setting. Scan the QR code to open the article and interact with it for yourself.

Montagut Christmas China WeChat

This is not the first time we’ve collaborated with Montagut on holiday content. Click here to learn more about our “Winter Wonderland” Christmas campaign. 

Christmas in China is more about gifting between couples during romantic dinners or self-gifting than it is about family gifting. As a result, many jewelry brands are taking this task seriously and planning eye-catching and interesting campaigns. Tiffany and Boucheron created some cool interactive posts. Harry Winston, on the other hand, delights with an online quiz that helps you find the best gifts for your other half or for yourself. Fendi prepared a whole winter-themed universe leveraging WeChat Channels, stickers, and gaming, all in one! Not to mention creating a super cute brand mascot – Brother Fen to top off the trends targeting Chinese Gen Z. 

🔥 Explore more about China’s Gen Z as Luxury Consumers

 

 

Fendi – Brother Fen’s Universe:

Fendi China

 

Harry Winston Mini-Program Quiz:

Christmas WeChat Interactive Posts:

 

Interactive Post from Pandora:

 

Interactive Post from Boucheron:

 

Interactive Post from Tiffany:

Advent Calendars in China

Many beauty companies have released Christmas-themed products as well as full-fledged advent calendars. Following last year’s public relations disaster, in which the Chanel advent calendar was deemed overpriced for the value of the products inside, other brands’ seasonal blind boxes fared well this year due to customer satisfaction with better product quality and price points.

In China, blind boxes are a popular marketing tool, and advent calendars fit the bill perfectly if done correctly. Brands such as Charlotte Tilbury, MAC, or Diptyque released theirs through their own channels as well as in collaboration with KOLs. The following are some of the 圣诞限定礼盒 (Christmas Limited Edition Box) mentions on Xiaohongshu, “RED,” where users were unboxing and showing off their treasures.

RED Xiaohongshu Advert Calendar China

Christmas on Chinese E-commerce Platforms

Naturally, compared to complete promotional takeovers during 11/11 or other shopping festivals, Christmas is less visible on e-commerce. However, many brands prepared their own promotions and Christmas content for their official Tmall stores. Many brands took a creative approach to Christmas, tying the festive season with more inclusive winter, astrology, or winter sports themes rather than a dull Santa and reindeer approach. Since the Olympic Games in Beijing in early 2022, the latter has also become synonymous with winter.  Astrology is also a big trend leveraged this Christmas, particularly in makeup, and can be seen not only in Western brands like Dior and Gucci but also in Perfect Diary. 

Christmas Tmall Taobao

This year’s lower enthusiasm for celebrations is also related to the recent surge of COVID-19 cases across China as a result of relaxed restrictions, which appears to be the first step toward China’s reopening in 2023.    

📌 Click here to learn more about WeChat interactive posts and how you can make the most of it!

Takeaways

It only makes sense for a brand with European roots to want to celebrate this holiday with its customers and provide them with a little extra.  You can engage and amuse your fans with a comprehensive marketing campaign, depending on your goals and resources. You could also offer exclusive holiday discounts or festive add-ons. Alternatively you could just wish them a happy holiday in a special post or interactive article. 

Additionally, international B2B brands shouldn’t be reluctant to celebrate Christmas with their clients. In fact, this is one of the few times when you can get away with using lighter language. We assist our clients in planning holiday events each year that will highlight their brand values and improve their relationships with their staff, partners, and clients. See some of the examples from previous years:

 

 

 

Last but not least, since Christmas is here, it means that Chinese New Year is also approaching fast, and this year it falls particularly early on January 22. It’s the last chance to start getting ready for China’s most significant holiday. There are a number of options, including intricate campaigns, interactive articles, holiday posters, and even red packets.

🧧 Visit our article to learn more about what a “red packet” (hongbao) is

Contact us if you would like our assistance with your marketing communications during this special time of the year.

 

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