Exploring Potential: Assessing China’s Latest Innovations in Landscape

February 7, 2024


1. Top 3 hottest experiential trends among China’s Gen Z

Here are the top picks from Xiaohongshu’s first-ever selection of “lifestyle inspirations”.

  • Attend night classes to pick up new skills.

Recent searches for “night school” have increased by an astounding 980% when compared to the same period last year, according to data from Dianping and Meituan. With over 8 million views and counting for the Xiaohongshu hashtag (#夜校), more inquisitive minds are probably going to follow in his footsteps.

  • Arrange to stay at a hotel by yourself and watch a tonne of TV.

This month’s most popular lifestyle inspiration hashtag (#厘在亦假) has received 35 million views.

  • Forget “old money” – embrace “no money style”

“no money style” invites people to exaggerate their lack of funds. This could mean wearing baggy, mismatched clothes (think taking out the bins or popping to the supermarket – the more ripped and stained the better) or simply wearing your favorite outfit on repeat. 

Link: https://daoinsights.com/opinions/top-3-hottest-experiential-trends-among-chinas-gen-z/

2. China and Singapore to allow mutual visa-free travel

From 9 February, CNY Eve, travellers with passports from either China or Singapore will be able to enter the reciprocal country visa-free and remain for 30 days. 

Within an hour of the announcement, searches for hotels and flights to Singapore increased 15 and 6 times, respectively, according to the travel booking website Fliggy. Singapore is now the fifth most popular place to go during the nine-day Chinese New Year holidays. 

Link: https://daoinsights.com/news/china-and-singapore-to-allow-mutual-visa-free-travel/

3. The best places to go for Chinese New Year in 2024

  • During CNY, there will be an estimated 9 billion domestic travels.
  • As per Ctrip, the most popular travel destinations are Indonesia, Malaysia, Singapore, Thailand, and Cambodia. 
  • While traditional Asian favourites include Hong Kong, Macau, Singapore, Thailand, and Japan, interest in emerging luxury hotspots like Dubai, Saudi Arabia, and Qatar is growing.
  • Millennials want experiences that are genuine and tailored to them; they want to engage with locals and become fully immersed in the culture.
  • The narratives and perceptions surrounding destinations are significantly shaped by KOL content shared on platforms such as Douyin and Xiaohongshu.

Link: https://jingdaily.com/posts/the-top-travel-destinations-for-chinese-new-year-2024

4. Gen Z unfiltered: Michael Kors peels back emotional layers of Chinese New Year

  • On January 31, Michael Kors premiered its 2024 Chinese New Year special short film, “Carry Your True Self,” 
  • The film takes a distinctive approach to conventional Lunar New Year ad shorts by employing a bold and incisive creative angle, capturing the inner emotional landscape of contemporary youth as they embark on their festival holidays.
  • As they prepare to reunite with family for the traditional festival, they unpack unnecessary burdens from their bags, shedding labels such as “aloofness,” “empty fame,” “busy individuals,” “emotional stability,” and “unnecessary obligations.” Choosing to liberate themselves from societal pressures, the protagonists opt for a more authentic and carefree return home.
  • In Michael Kors’ case, its Chinese New Year advertisement stands out for its genuine portrayal of the emotions young people experience during this traditional festival. Through the nuanced message of “Carry Your True Self,” the brand encourages a more relaxed approach to the holiday, which allows it to resonate with Chinese young generations.

Link: https://jingdaily.com/posts/inside-michael-kors-bold-chinese-new-year-narrative 

5. Why is the ‘mob wife’ fashion aesthetic gaining momentum?

  • From TikTok to the New York Times, the mob wife fashion aesthetic, that of opulence, extravagance and maximalist glamour, is gaining traction.
  • The aesthetic, made famous by the long-running crime series The Sopranos, often features bold statement pieces, including fur coats, high-end accessories, and ensembles that reflect wealth and status.
  • While the brashness of mob wife fashion stands in stark contrast to the prevailing trend of understated luxury on the runways, data analytics has substantiated its surge in popularity.
  • Ultimately, the trend resonates with those who appreciate the fusion of sophistication, drama, and a touch of rebellion in their fashion choices.

Link: https://fashionunited.com/news/fashion/why-is-the-mob-wife-fashion-aesthetic-gaining-momentum/2024012958106

6. TikTok faces large-scale content removal after major falling out with Universal Music Group

  • TikTok turned against its former cooperation partner Universal Music Group (UMG) overnight after the world’s largest music copyright owner threatened to remove all of the music it owns from the video-sharing platform, which lambasted UMG’s “self-serving actions” and characterized them as putting their interests above those of artists, songwriters, and fans. 
  • The dispute would reportedly also affect TikTok sibling Douyin, potentially causing both platforms to have to remove Universal songs from the huge number of videos using them as background music. The falling out with UMG may also lead to a similar response from other music companies.

Link: https://technode.com/2024/02/01/tiktok-faces-large-scale-content-removal-after-major-falling-out-with-universal-music-group/

7. In WeChat Channel, selling knives like this can break millions?

Knives are originally popular consumer goods with a strong and traditional atmosphere, but in the words of Wang Jinbo, the video anchor of “Zhang Xiaoquan Knife Flagship Store”, they collide with poetry, life insights, and English. It is this contrast that makes the live broadcast of this time-honored brand instantly become high-end.

With a full-time team of only 10 people, they quickly accumulated 600,000 followers and achieved sales of over one million yuan in the first week of broadcasting. On November 11, 2023, the number of viewers for the special session reached 1.4 million, and the single session sales exceeded one million yuan.

  • Brand content matches their Channel’s users
  • Live streaming has reached sufficient duration
  • It is selling knives, but also bringing knowledge expansion and emotional value through live streaming

Link: https://mp.weixin.qq.com/s/lvTH2sRJjenUJtv7POP1zw

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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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Exploring New Horizons: Uncovering the Latest Developments in China’s Market

October 23, 2023

1.Wechat Channel releases the “flash purchase” new function, only to specific categories opened

The Channel has unveiled the conditions for its “flash purchase” service, allowing retailers to facilitate online ordering during live broadcasts for specific users. To activate this feature, merchants must meet certain criteria related to their business category, qualifications, credit, product quality, and sales volume. The flash purchase products must be physical and described fully during live broadcasts, matching the invoice card and product information. Flash sale items can only be sold during live broadcasts, and the sale ends either when the broadcast concludes or when stock is depleted.

Merchants can create flash purchase orders for particular users, which are accessible only to those users. Multiple intended users can also be targeted with flash orders, but the same user can’t have duplicate orders and must create new ones after successful payment.

 

2.Bus rentals become this autumn’s hottest wedding trend

The usual Golden Week marriage boom came as expected this year, but so too did a fresh take on the traditional Chinese wedding custom of 接亲, or “picking up the bride”.

In a down-to-earth spin on the tradition, some young couples teamed up with local transport departments to create a bespoke “wedding bus” experience. In this trend, public buses decked out in DIY wedding decorations carry the wedding party to their venue, instead of the typical suite of austere luxury cars.

The top wedding bus post on the lifestyle-sharing platform Xiaohongshu, which garnered over 20,000 likes. 

With birth and marriage rates sinking lower and lower in China, state-led campaigns to encourage marriage and childrearing have become pervasive and transparent. Trends like wedding buses breathe new life into staid traditions and allow Gen Z and millennials to take ownership of these highly personal life decisions. 

LINK: https://daoinsights.com/news/bus-rentals-become-this-autumns-hottest-wedding-trend/

 

3.Is there a solution to China’s $81 billion ‘daigou’ gray market?

  • With young consumers having grown accustomed to purchasing from daigou, the market is growing at lightning speed. 
  • According to report, “The Daigou Index 2.0,” China’s gray market size is an estimated $81 billion (600 billion RMB), having expanded by over 40 percent since 2019.
  • Daigou can offer tax-free products, which are more affordable than purchases made within China. And even some brands don’t even have counters”.
  • Aspirational middle-class consumers are becoming more cautious with their spending. And as a result, they may prefer to buy products at a discount rate from daigou rather than purchasing directly from the brands.
  • In addition, Chinese Gen Z shoppers are keen on discovering and experimenting with new brands – gray market importers’ ability to access limited-edition or products unavailable in China has made the sector popular among young consumers.

https://jingdaily.com/is-there-a-solution-to-china-81-billion-daigou-gray-market/

 

4.WeChat Luxury Index 2023: How to Connect With 1.3 Billion Consumers?

  • WeChat has evolved into a vital platform for brands to engage and convert Chinese consumers, extending beyond mere communication.
  • WeChat’s various components, like Mini Program, Channels, WeCom, and Official Account, create a seamless customer journey loop. It has evolved into a primary direct-to-consumer (DTC) channel, offering services and information, challenging traditional websites. Brands can accompany customers from acquaintance to purchase, nurturing their private domains on WeChat.
  • WeChat’s open rates for articles have declined, partly due to muted notification settings for Service Accounts and follower disinterest.
  • Brands have adapted content strategies, pushing content less frequently but more focused on ROI.
  • Menu clicks and service-related behaviors have gained prominence, with over 55% of menu engagements being CRM-related.
  • Brands are redirecting efforts and investments to other WeChat assets, but Official Account content remains vital.
  • Brands capture more data through Mini Programs, with 85% of behavioral data collected from them, enhancing consumer profiles and WeChat strategies.

LINK: https://www.luxurysociety.com/en/articles/2023/10/wechat-luxury-index-2023-how-connect-13-billion-consumers

 

 

5. Coca-Cola teams up with Holiland for futuristic AI chocolate

  • Coca-Cola and bakery brand Holiland bring out a new flavour of Holiland’s popular ‘Dandelion Air Chocolate’ truffle.
  • This time they co-created with AI and named Y3000. On Weibo, China’s Twitter-like microblogging platform, ‘#可口可乐 好利来#‘ (#Cocacola Holiland) gained 27 million views, peaking at number 6 on the hot search list.  
  • This collaboration comes after the release of Coca-Cola’s Y3000 Zero Sugar Coke, an AI co-created soda of the future.
  • Holiland has been on a streak of crossovers including Hello Kitty and Rick & Morty. 
  • Now that AI is playing a bigger role in China’s digital economy, this co-branded chocolate feels like a natural next step for both parties.  

LINK: https://daoinsights.com/news/coca-cola-teams-up-with-holiland-for-futuristic-ai-chocolate/ 

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Unlocking Opportunities: Exploring the Latest Developments in China’s Market

September 11, 2023

Tencent officially launched its large language model

  • Chinese tech giant Tencent officially launched its Hunyuan large language model at the company’s Global Digital Ecosystem Summit.
  • The move comes several months after fellow Chinese tech giants Alibaba and Baidu launched their own AI products.
  • The full stack self-developed Hunyuan LLM with over a hundred billion parameters is trained with 2 trillion tokens of pre-training data. It possesses strong capabilities in Chinese language comprehension, content creation, logical reasoning, and task execution.
  • In the future, the Hunyuan model will support Tencent Cloud’s MaaS (Model-as-a-Service), with customers able to directly access it through APIs and use it as a foundational model to develop applications for various industry scenarios, Tencent said.

LINK: https://www.jiemian.com/article/10057854.html

 

Publish without notification display in the homepage

  • When an article is posted, there will be two buttons, one to publish to all and one to publish without notification.
  • Publish without notification means that published content is not pushed to users. However, now the published content will be displayed on the home page of your WeChat account. The published article can also be forwarded to friends, friends in your circle, set for automatic replies, deleted, and so on.
  • Although, only fans can actively come to the home page to see the post article, if businesses publish frequently, it will end up making the home page look very busy. This then points to the need to be careful when using the post function in the future.

 

Xiaohongshu embarks on the era of “personal shoppers”, boosting social commerce

  • After the livestream momentum gained by the Chinese actress Dong Jie and subsequently KOL Zhang Xiaohui, Xiaohongshu now seeks to give influencers the official title of “personal shoppers”, stepping up efforts in social commerce.
  • The move closely follows the just concluded Red-commerce Partner Week 2023, which was hosted on August 24 in Shanghai. Touting the tagline “Entering the era of personal shoppers”, the event also marked the public debut of Xiaohongshu’s e-commerce division.
  • “Personal shoppers” would “play a crucial role in connecting merchants and consumers”. “The first things personal shoppers on Xiaohongshu need to work on is to understand the specific needs of their target audience, they are expected to direct other users to the products they are looking for.” As such, “personal shoppers” would act as upgraded KOLs, bringing together the content-focused “Community” and e-commerce ecosystems that are not yet well integrated on the platform.
  • This shows the ambition of Xiaohongshu in setting itself apart in the much-contested territory of e-commerce from existing experts such as Douyin (Chinese TikTok) and its rival Kuaishou by differentiating its approach to “influencing” consumers to that adopted by other social media platforms.
  • Such a practice also appears to be more persuasive and appealing to Xiaohongshu’s user demographics, which are economically satisfied and more knowledgeable in fields related to their interests.

LINK:https://daoinsights.com/news/xiaohongshu-embarks-on-the-era-of-personal-shoppers-boosting-social-commerce/

 

 

China Sets Filing Requirements for Smart Phone Applications

  • On 4 August 2023, the Ministry of Industry and Information Technology (MIIT) set a timeline to enforce the filing of mobile applications (APPs), in the published Notice on Carrying out the Filing of Mobile Internet Applications (Notice). 
  • APPs that are pre-installed on a smart phone or downloaded by users, should conduct filing through their network access service providers. For example, an APP hosted on Tencent Cloud’s cloud service should conduct filing through the Tencent Cloud portal. 
  • APPs based on API that users can use without installation, such as mini programs, quick apps, etc. should conduct filing through their distribution platform. For example, mini programs in WeChat should conduct filing through the WeChat portal. 
  • A foreign company that operates an App in China can register its Chinese subsidiary or representative office as the APP holder. Alternatively, it can enter into a cooperation agreement with a local partner.

LINK: https://mp.weixin.qq.com/s/w2xLVI75H4X59DRR5rODNA 

 

 

China’s newest viral collab: megabrands Luckin Coffee x Moutai join forces

  • Many young Chinese people are tasting their first cup of luxury liquor—Kweichow Moutai — at domestic café chain Luckin Coffee. The two beverage giants partnered up to co-create a new flavor of latte, Moutai Latte (酱香拿铁), which was released today. 
  • The collaboration was an instant hit, with long queues forming outside the 10,000-plus Luckin coffee shops distributed across China, and several related hashtags topping Weibo’s Hot List, each with over 100 million views. 
  • Through the partnership with Luckin Coffee, Moutai is using a fresh way to popularize its product’s taste and brand among China’s younger demographic. 
  • The collaboration seems to be a winning formula for both. The high-low partnership has tapped China’s guochao trend, offered surprise, delight, and nostalgia for consumers, and earned both brands new virality. 

LINK: https://jingdaily.com/luckin-coffee-moutai-collaboration/ 

 

 

‘Mom skincare’ —China’s maturing Gen X consumers give rise to new beauty opportunities

  • The cohort of 60-years-plus consumers could provide a new growth engine for skincare and personal care labels.
  • The options for mature skin are lacking, with many major local and global brands focusing on launching skincare lines for young women and men.
  • China’s Gen X consumers are big savers and users of high-end skincare labels. They have more knowledge about skincare and beauty than the preceding generation had.
  • Older consumers rank anti-aging effects as the top product function. However, hydration and moisturization also rank highly.
  • Brands have deployed celebrities in their 40s and 50s to endorse their skincare lines and promote their products on Weibo, Douyin, and Xiaohongshu. 

LINK: https://jingdaily.com/chinas-gen-x-saves-big-but-also-consumes-high-end-skincare/

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Unlocking Opportunities: Current Updates from the Chinese Market

June 9, 2023

China’s short video war heats up as Tencent offers cash to influencers from rivals Douyin and Kuaishou

 

Tencent’s Weishi, a short video app, is enticing influencers from competing platforms, such as Douyin, TikTok’s Chinese counterpart, by offering cash rewards and other perks. This strategic move aims to capture the attention of viewers in the highly competitive market.

The program primarily targets content creators specializing in movie reviews, healthcare, parenting, and other relevant fields. Additionally, Weishi actively seeks individuals with a relatable and “down-to-earth” lifestyle to participate.

It is important to note that this recruitment initiative aligns with standard industry practices and is not a recent development for Weishi. After witnessing the immense success of ByteDance’s Douyin, which popularized short videos, Tencent revived Weishi in 2018. Subsequently, in 2021, Tencent merged Weishi with its long-form video platform, Tencent Video, creating a unified operation within its platform and content group.

https://www.scmp.com/tech/tech-trends/article/3220197/chinas-short-video-war-heats-tencent-offers-cash-influencers-rivals-douyin-and-kuaishou

Douyin (Chinese TikTok) saw an 80% increase in e-commerce total sales last year

 

In the year 2022, the total expenditure of consumers on purchases made through the short video platform amounted to RMB 1.41 trillion ($201.4 billion).

Douyin, owned by ByteDance, is actively promoting and encouraging its video viewers to engage in shopping activities through livestreaming and the app’s marketplace channel. This strategic move by the platform aims to diversify its revenue sources and explore new avenues for generating income.

During Douyin’s annual ecosystem conference held in Guangzhou, Wei Wenwen, the president of Douyin’s e-commerce division, unveiled plans to allocate RMB 10 billion to provide support to merchants and facilitate their businesses on the platform.

https://36kr.com/p/2261274230894216

Tencent Games see 25% growth in overseas gaming sector in Q1

 

In its latest financial report, Tencent, the Chinese tech giant, announced robust growth in gaming revenues during the first quarter. The company’s overseas gaming revenue experienced a significant increase of 25% compared to the previous year, reaching RMB 13.2 billion ($1.88 billion).

Similarly, gaming revenue within the Chinese market witnessed a year-on-year growth of 6%, amounting to RMB 35.1 billion ($5 billion). Tencent’s performance exceeded analysts’ expectations, with the company’s total revenue for the first quarter reaching RMB 150 billion ($21.8 billion), marking an 11% increase compared to the previous year. On a non-IFRS basis, the net profit for the period reached RMB 33.4 billion ($4.9 billion), representing a 27% year-on-year growth.

https://technode.com/2023/05/18/tencent-games-see-25-growth-in-overseas-gaming-sector-in-q1/

More and more brands are using young men as anchors

 

What is the rationale behind brands using “boys” for live streaming? Will the “boys trend” emerge as a new trend amidst the increasing competition for audience attention and rising solicitation costs?

Utilizing “male appearance level” to tap into organic traffic has become an unspoken consensus among numerous brands. According to data from the Forward-Looking Industry Research Institute in 2021, women constitute 53.8% of Chinese live streaming e-commerce orders, positioning them as the primary consumer group. Platforms like Taobao and Douyin see women accounting for over 60% of users placing orders. Additionally, in terms of age demographics, young and middle-aged individuals form the main consumer base for live streaming e-commerce products. Notably, nearly 30% of viewers belong to the post-1995 and post-2000 generations. Young women exhibit distinct advantages in the realm of live streaming.

Particularly in areas such as beauty products, skincare items, and household goods, women serve as the primary consumer group. Although the correlation between male hosts and products may not be significant, they can pique consumers’ curiosity, foster a sense of participation, and enhance brand attention.

https://mp.weixin.qq.com/s/ytJ005A5HISf9uK-Ka2h-w

62% Of Chinese Luxury Shoppers Are Buying At Home Vs. In European Capitals

 

Even with the reopening of international borders, Chinese luxury consumers continue to opt for domestic shopping.

In April 2023, 62% of luxury expenditures by Chinese consumers were made within China. As a result, domestic high-end retailers are witnessing robust sales growth.

Chinese consumers have a preference for personalized experiences and interactions with local sales associates. In response to this trend, luxury brands are expanding their presence in China by opening more stores and making global price adjustments.

These brands are also investing in experiential flagship stores and VIP-only boutiques to cater to the expectations of Chinese luxury consumers, who value personalized experiences and seek added value from the brands they choose.

Thus, despite the reopening of international travel, a significant portion of Chinese luxury consumption remains concentrated within China.

https://jingdaily.com/62-chinese-luxury-shoppers-buying-at-home-vs-in-european-capitals/

 

 

Strong Domestic Travel Rebound In China Foreshadows Return Of Global Chinese Tourism

 

 

There has been a notable increase in the demand for overseas travel and a rise in international spending. However, Chinese consumers are showing less interest in traditionally popular destinations such as Europe compared to pre-pandemic times.

Many Chinese consumers still have concerns regarding deterrents and factors that include the absence of adequate COVID-19 safety measures, strict testing requirements, and barriers related to visa acquisition.

Chinese travelers are now in search of unique and novel experiences and are willing to invest in entertainment, dining, shopping, and distinctive accommodations, including boutique hotels and one-of-a-kind Airbnb homestays.

Specifically, individuals aged between 21 and 45, as well as those with higher incomes, have demonstrated a strong desire to resume overseas travel.

https://jingdaily.com/china-international-outbound-travel-mckinsey/

 

5 strategies domestic brands use to outshine foreign ones

 

Chinese domestic brands are capitalizing on their local advantage to challenge the positive reputation enjoyed by foreign brands.

The emergence of the “Guochao” concept highlights consumers’ inclination towards brands that embrace Chinese culture, traditional flavors, scents, and symbols.

To remain competitive in the Chinese market, brands need to prioritize digital transformation, innovation, and establish a strong presence on various social media platforms.

Social media platforms play a pivotal role in brand growth, and features like live commerce contribute significantly to increased sales.

Brands are adopting an omni-channel approach by transforming physical stores into immersive experiences while simultaneously expanding sales through e-commerce channels.

In addition to Key Opinion Leader (KOL) strategies, brands are incorporating Key Opinion Consumers (KOCs) to attract and retain more loyal customers, effectively bridging the gap between brands and their target audience.

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Latest Updates on China’s Market: ByteDance’s Language Model, Uncle Stars, Xiaohongshu Trends, Douyin’s PC Shopping, and More

March 2, 2023

ByteDance to emphasize search and imaging as it develops ChatGPT’s rival

 

ByteDance, the owner of TikTok, has assembled a sizable language model team and plans to integrate the technology into its search and advertising businesses as the hype surrounding ChatGPT, an AI-powered chatbot service, continues to encourage Chinese businesses to create analogous products of their own.

When ByteDance launches its large language model, which is anticipated to happen in the middle of this year, it will put a particular emphasis on language and imaging. 

The large language model team and the image model team will be managed by Zhu Wenjia, head of global search and development for TikTok. 

https://mp.weixin.qq.com/s/pGREeoSC6v-tf2zALdWZBQ

 

The Rise Of China’s ‘Uncle Stars’: How Middle-aged Men Are Taking The Spotlight

 

Idol scandals have tarnished China’s entertainment sector in recent years. 

As was the case with Louis Vuitton and rapper Kris Wu, luxury brands associated with wrongdoing (“little fresh meat”) were forced to act quickly to sever their endorsement agreements in order to allay public outrage.

People in their mid-forties, also referred to as “uncle stars,” provide a safer option for brands and have a wider market recognition among both young and old consumers. 

Brands are testing a new cast of ambassadors due to the expensive unpredictability of “traffic stars,” who heavily rely on the fan economy to push the sales of the products they promote. 

Huang Bo, a 48-year-old actor, was named the ambassador for Shiseido’s high-end line on February 9.  

These celebrities typically don’t have Xiaohongshu or Douyin, only Weibo. “By making extra efforts, brands need to increase their influence,

https://jingdaily.com/china-uncle-stars-middle-aged-men-ambassadors-shiseido-fresh-the-knockout/ 

 

2023 Xiaohongshu Annual Life Trend Analysis

 

To observe and research young people’s lifestyles, Xiaohongshu and the Institute of Sociology, Chinese Academy of Social Sciences, published the “2023 Life Trends” report with the theme “Into Real Life.” 

The report divides various life keywords, identifies, and analyzes life trends in 2023 using Xiaohongshu’s data statistics and topic content from the previous year. An excerpt from the report is given below. 

Warming up the neighborhood: Due to the scarcity of supplies during the epidemic, many residents got to know their neighbors by searching for those who lived “nearby” to shop with and trade goods with. Young people are therefore more likely to actively participate in community activities.

Eat authentically local flavors: Young people are starting to prefer regional specialties and regional traditions, 

  • On a trip: Due to the extended stays at home brought on by the epidemic, many people seek compensatory travel in the new year. They value the chance to travel more and are prepared to spend more effort, time, and money on travel.
  • Stress relief: Due to environmental impact, the majority of people felt helpless and unable to control their destiny, so they needed to decompress quickly and easily. Simple techniques for stress relief have become more popular in recent years.

Overall, investing and participating in real life will be more popular in 2023. The new trend among young people today will be actively experiencing and pursuing an innovative life, which is also Xiaohongshu’s wish for 2023 in this report.

https://www.chinatradingdesk.com/post/2023-xiaohongshu-annual-life-trend-analysis

 

Douyin tests out PC shopping feature to boost e-commerce

 

Douyin, a popular video-sharing website in China, is currently testing a PC shopping feature that will let users have a similar shopping experience to that of its mobile app.

The live broadcast room on Douyin’s website now features a product mounting function that enables users to view available products right away. However, direct orders and payments are still not supported on the PC version of the live streams. 

Users must scan the code with their Douyin app before they can finish their purchases. 

https://daoinsights.com/news/douyin-tests-out-pc-shopping-feature/

 

Xiaohongshu doubles down on social networking with group chat feature 

 

Users can access the new feature under the “group chat” drop-down menu accessible from the Messages tab on the app. Here, users have the option of starting a brand-new group chat or going to the “group chat plaza,” where they can peruse various discussions in a grid format.  

Users can join group chats on Xiaohongshu with just one click, unlike private Facebook groups where they must submit a request to join and have it approved by an admin.  

Users will have the chance to create communities to connect over specific interests thanks to the new feature. Influencers and retailers also profit from the new feature because the buzz created in group chats can boost traffic to their profiles and aid in turning that traffic into sales. 

https://daoinsights.com/news/xiaohongshu-doubles-down-on-social-networking-with-group-chat-feature/ 

 

China’s Tourism Rebound Faces a Roadblock: A Lack of Travel Agents

 

Some predicted a “big bang” for the global tourism industry when China abandoned its “zero-COVID” regulations as Chinese tourists flocked abroad.

Millions of Chinese tourists are eager to resume their international travel. But the tourism sector isn’t prepared for them.

The number of people leaving China increased to 676,000 on February 6 when outbound package tours resumed, which is the highest number in three years but only about one-third of the pre-pandemic levels. 

In many cases, travelers are prepared to return to foreign countries, but travel agencies are not. 

Currently, there aren’t many options for outbound group tours, and most of them are quite expensive. Rebuilding the international teams and the supply chain takes time.

Chinese tourists still favor joining group tours over planning their own trips.

https://www.sixthtone.com/news/1012339/chinas-tourism-rebound-faces-a-roadblock-a-lack-of-travel-agents?source=channel_deep

 

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What Is Dewu?

March 9, 2022

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

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

Poizon Dewu

Dewu’s USP

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

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

Poizon Dewu Poizon Dewu Poizon Dewu

Growth of Dewu

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

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

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

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

Key User of Dewu

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

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

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

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

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

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

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

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

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

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

Incentive for brands

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

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

Poizon Dewu Poizon DewuPoizon Dewu

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

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

Step 1: Create an account and log in.

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

Step 2: Fill in the information

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

Step 3: Wait for the review

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

Step 4: Make a deposit.

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

Conclusion

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

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

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

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

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Creating Your Own Red Packet Cover On WeChat—The Ultimate Guide

January 13, 2022

It is a widespread custom for adults to gift red packets containing monetary gifts to children during Chinese New Year. However, in recent years, the habit of presenting friends and coworkers has transferred to China’s super-app, WeChat. As a result, the opportunity for brand visibility and interaction arose thanks to this behavioral change. Last week, we covered different ways in which brands can engage with their audiences during the Chinese New Year, today we will dig more into how to create your own red envelope on WeChat. 

What is a WeChat Red Envelope?

Tencent’s WeChat red envelope (or WeChat red packet cover – 红包封面) is a WeChat-based feature that was developed in China. But the concept itself is not new. In fact, it’s based on the Chinese tradition of hongbao (red envelope, or red packet), in which money is presented as a gift to relatives and friends. 

Tencent released the function in January 2014, and it has since grown in popularity, with Tencent reporting 2.3 billion transactions on the first day of 2016.

Users can give monetary presents to other users within a private conversation or group chat in the form of virtual ‘credits.‘ A user’s WeChat Pay account gets credited with funds that can be utilized to make purchases. 

WeChat offers two sorts of ‘red envelopes’: pairwise red packets, which send money from a private chat between two users, and group red packets, which distribute money in a group chat. After posting the ‘grouped’ red envelope to a group chat, the app assigns the amount in each envelope to each receiver at random. Fights for the biggest win of an envelope is a common and fun sight at the annual dinners across China.

Why Do Businesses Require Red Packets?

Moreover, there are other motivations for mobile payment companies to compete during this period, aside from the red packets being a cornerstone of WeChat’s development history. Because the Lunar New Year is the most important Chinese celebration of the year, there are more transactions than at any other time of the year. 

Thus a number of other brands, such as Gucci, Louis Vuitton, Versace, Burberry, and many more have incorporated the red envelope concept into their Chinese New Year’s marketing strategies. This year with more and more hype around red packets, payees are especially encouraged by brands to transfer ‘lucky money to a friend, thereby assisting the brand in expanding its brand awareness. Sometimes, like in the came of Gucci, users need to book their slot to receive the cover they can use via a mini-program to make it more exclusive. 

On the other hand, consumers may also receive a red envelope with a surprise discount after purchasing something in-store using WeChat Pay. These companies are often FMCG brands because a discount signals value and are generally not an incentive that luxury brands want to be associated with.

Step by Step Guide on Customisation Process of The Red Envelope

Step 1: Registered account and Required materials

Chinese mainland WeChat official account is open to everyone for registration: http://cover.weixin.qq.com 

Red Packet Cover On WeChat

Step 2: Submission for review

Check the official WeChat page for design requirements and specifics. 

  • Format: PNG / JPG / jpeg
  • Width and height: 957 * 1278 pixels
  • Size: ≤ 500kb

Red Packet Cover On WeChat

After you’ve finished customizing the red envelope, send it to the WeChat team for review.

Audit Cycle: The audit cycle is generally 1 working day.

Audit Result: The results will be published on your official WeChat account and sent over by mail after the audit is completed (WeChat envelopes). You can also check the status of the audit in my “seal” at the same time.

Red Packet Cover On WeChat

Step 3: Payment and refund

Select the number of users of the red envelope cover after approval and pay the payment item to create an order.

Price: The red envelope cover costs one yuan per piece.

Payment method: Payments can be made via Wechat, internet banking, or an offline transfer or remittance.

Refund: Only when the red envelope cover is removed from the shelf due to infringement, and there is a red envelope that is still within the distribution validity period and has not been successfully received by any user.

You will get a return for unused red envelopes at a rate of 1 yuan per piece.

Red Packet Cover On WeChat

Final Step

Step 4: Release cover

The cover can be distributed to the selected user after it has been properly purchased. It will expire after six months. Users will not be able to receive it after it has expired.

Distribution methods include:

  • QR code
  • Serial code
  • Link

According to the activity scenario, user group, collection rules, other factors, the customization party can choose the best distribution strategy.

Red Packet Cover On WeChat

Step 5: Trial cover

After each red envelope cover’s approval, ten trial covers for ten Wechat accounts can be obtained.

The cover is effective for two hours after scanning the code and can be used an unlimited number of times. The trial run expires after two hours have passed.

Red Packet Cover On WeChat

Step 6: User to use

Users can use the cover up to 3 months after they receive it as many times as they want. The received cover will automatically become invalid after the expiration date and cannot be used again.

 The red envelope display, which has been sent, will not be affected.

Red Packet Cover On WeChat

Step 7: Data analysis

Following the distribution of the cover, you can view real-time distribution data. You can also check data from the previous day, and cumulative statistics on the site. It includes:

  • covers purchased,
  • covers received,
  • red envelopes issued,
  • red envelopes opened,
  • how many times users accessed the red envelope details page,
  • how many times the users view the cover story,
  • and the number of times the viewers skipped the cover story.

Red Packet Cover On WeChat

Red Packet Cover On WeChat

Conclusion

Way to carry on traditions change these days. The one thing that has remained constant is the desire to enjoy the company of loved ones during this special time of year.

Also, around this time of year, the red envelope is a great way to attract a wide spectrum of customers and build your customer base. As a result, any company seeking to build a business relationship with the Chinese market should consider taking advantage of these prospects.

If you require further assistance with customizing your red envelope, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

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What is Bilbili and Why Brands Must Consider it When targeting Gen Z

September 14, 2021

When it comes to establishing a business and grabbing the Gen-Z audience through Chinese video-sharing platforms, forums such as Douyin and Kuaishou that create short-form videos take up the majority of air. Hence, one of the fastest-growing social platforms among China’s Generation Z called the Bilibili is often overlooked.

 

What is Bibili?

Bilibili, often known as B site, is a Chinese video-sharing website where users can contribute and read “bullet” chats, which are real-time comments sent while users watch videos. Bilibili is, without a doubt, an ACG (anime, comics, and games) platform at its core and its homepage looks like any other video-sharing site on the surface, but the aesthetics are dominated by anime characters and screenshots from video games. It is because of this content that the daily active user rate has exceeded 65 million, surpassing Youku to become China’s third-largest long-video platform.

Unlike other Chinese video-sharing services such as Youku, iQiyi, and Tencent Video, Bilibili emphasises professional, user-generated material, hence earning recognition as the Chinese version of YouTube.

Users spend over 80 minutes every day on the platform, resulting in 4.7 billion monthly interactions. It also appeals to one out of every two young people in China. The platform has a highly balanced user base of 49% female and 51% male users, making it one of the most popular video platforms in the country.


Why must brands consider Bilbili?

Bilibili’s new e-commerce mini-programs debuted on the platform in April 2019. After Alibaba invested in Bilibili, it changed its online marketing strategy, focusing on e-commerce rather than user acquisition. Because of the evolving Gen-Z lifestyle, which includes online shopping as one of their most popular pleasures, it has recently become a more profitable enterprise due to which many brands are seeking to register an official Bilibili account as a means of tapping into China’s youth market.

Brands can use this platform for branding by using the “Splash Screen Ads”, which usually appear when users first open the App. Such ads were used by brands such as Swaroski to promote themselves among young Chinese audiences. Brands can also use the service to host virtual presentations and live streams.


How can brands leverage the platform?

Businesses can also use Bilibili to promote their products through its marketing platform, “Sparkle” (Huahuo), which can help with monetization by offering features like smart price recommendations, exhibiting sample work, and access to data on followers and user interaction. Another way to promote their business on Bilibili is by partnering with well-known key opinion leaders (KOLs) or key opinion consumers (KOCs) who engage with Gen Z consumers. 


How to engage with the audience on the platform?

Two of the most popular ways for brands to engage with customers on Bilibili include partnering with influencers or opening a personal account.  In both cases, it’s critical to have a good understanding of the platform and the target audience. As we all know, the majority of Bilibili users are Gen Z, who are very engaged and on the lookout for authenticity. They are savvy consumers who are well-versed in e-commerce and thus have a lot of options. To win this group, brands should work on creating their brand image and connecting it to a lifestyle, a community, a passion, or an attitude, rather than just hawking their products based on numbers.


Conclusion

Therefore, it is without a doubt that Bilibili has effectively positioned itself as a unique social video platform, with a loyal user community that is deeply involved with the creators and companies that they see as supporting the community. That’s something you won’t find on most other Chinese social media and video platforms, which is why companies should consider Bilibili as a way to reach China’s Gen-Z.

 

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Your Weekly China Roundup

September 13, 2021

Growing Significance of Private Traffic

In China, a growing number of industries are incorporating private traffic into their digital strategy. Meituan, a food delivery app similar to Uber that has 450 MAUs, is one of them. Bonus fandom groups, where businesses may communicate directly with customers, are the newest additions to Meituan. Customers can find group access directly from the shop’s main page & u users are encouraged to join such organisations by CTAs implying that they will receive further coupons and offers.

At the same time, groups give users a place to express their comments and merchants a place to change their products. Meituan just implemented a new social feature: customers can now share their restaurant orders with their friends to enhance company awareness.

 

Link: https://mp.weixin.qq.com/s/btw5G7GQvwOyNqgQQGbn3w 

 

Bilibili and Luxury Brands?

Bilibili, which began as an anime and comics platform, has evolved into a crucial platform for Chinese Gen Z, focused primarily on mid and long videos, and is currently China’s third largest video platform.

Beauty brands such as Shiseido and Lancome have already begun to experiment with Bilibli in order to reach Gen Z, but will luxury brands follow suit?

Bilibili is still relatively unproven in the luxury market, having only attracted a few early adopters such as Dior, Fendi, and Gucci to yet. The major disadvantage is the average age of a Bilbili user, which is still quite young. Bilibili has been actively pushing its e-commerce capabilities to its more than 62.7 million DAUs over the last two years.

Link: https://jingdaily.com/will-a-red-hot-bilibili-become-irresistible-to-luxury-brands-in-2022/?utm_source=CCI&utm_campaign=bca9179477-EMAIL_CAMPAIGN_2020_03_12_06_39_COPY_01&utm_medium=email&utm_term=0_f85454f2c4-bca9179477-408382229 

 

Why Chinese Brands’ Strategies are Important to Brands Everywhere


Chinese businesses differ structurally from those in other countries in that they place a greater emphasis on revenue growth and customer acquisition rather than profit, as most western brands do. As a result, they devote a considerably higher portion of their revenue to marketing and concentrate on hot platforms and key opinion leaders.

Since China has become the world’s factory, Chinese brands can swiftly imitate and improve what is being produced. Because most Chinese businesses do not have heritage brands to protect, they are less risk-averse than established western companies and are willing to attempt a lot more things. This lean startup, come-as-you-are strategy has now been embedded in the DNA of many Chinese brands. Everyone who has grown up in China has only experienced constant change, which has made them extremely adaptive and quick-thinking, especially in business.

Understanding how Chinese competitors operate is critical for brands in China. However, with Chinese businesses like SHEIN becoming more likely to compete in western markets, marketers and strategists working in other nations, including their own local markets, must understand how they operate.

 

Link: https://www.chinaskinny.com/blog/chinese-brand-strategies-to-watch/

 

AMX X Ayayi – the first Metahuman in China

AMX, a yogurt company, teamed up with Ayayi, the first Chinese Metahuman, to produce a digital yogurt based on user data. This digital yogurt is comparable to NFT, a one-of-a-kind cryptocurrency token that serves as a digital asset representation.

AMX gained more scientific and technological features as a result of this collaboration, which set it apart from the competition. AMX will use Xiaohongshu and Weibo to promote the idea that “Yogurt brands may also be popular and fashionable” in order to raise the brand’s visibility. AMX wishes to usher the company into the digital era.

On September 8th, Ayayi started working for Alibaba as the proprietor of Tmall Super Brand. She had her own ID card and launched the first NFT digital mooncake for the Mid-Autumn Festival.

 

Link: https://mp.weixin.qq.com/s/TuX2Tv6d8sgReFQw2bRIfQ 

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