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

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

 

What is Chinese market upto

China NFT and metaverse marketing requires Tiffany, other global luxury brands, to tread lightly and be creative

Brands must respect China’s ban on trading in cryptocurrencies and NFTs while attempting to connect with the country’s young, tech-savvy consumers. Despite China’s strict policy, there are still ways for Chinese consumers to trade cryptocurrencies and NFTs. They can try to get around restrictions on cryptocurrency exchange platforms by trading with friends outside of China.

Link: https://www.scmp.com/business/article/3192752/china-nft-and-metaverse-marketing-requires-tiffany-other-global-luxury

 

Want Your Brand Collaboration To Stand Out In China? Get Nostalgic: 

Utilizing well-known cartoons or regional food brands that evoke nostalgia is one trend that stands out when analyzing collaborations in China. 77% of Chinese consumers will like items that bring back nostalgic thoughts in 2021, such as childhood snacks.

Link: https://jingdaily.com/brand-collaboration-nostalgia-marketing-spirited-away/

 

 Will Global Luxury Brands Forget About Bilibili?

Bilibili has only recently become popular in China, despite years of steady growth as it seized the once-niche “ACG” (anime, comics, and games) subculture. Tens of millions of new users have joined the platform since then, which is known for its “bullet chats,” real-time comments that fly across users’ screens as they watch videos, and a large amount of expert, user-generated content. It has also caught the attention of companies like Dior, Shiseido, and Mercedes-Benz.

However, the platform’s financial results are not particularly impressive. The main issue for Bilibili is turning its rapid user growth—305.7 million MAUs—into actual profitability.

Link: https://jingdaily.com/bilibili-q2-2022-profitability-user-growth 

 

How Luxury Fashion Brands Approach Douyin Marketing in China

More than 60% of the businesses on Deloitte’s 2021 Global Top 100 Luxury Companies list, including Gucci, Louis Vuitton, and Dior, are already active on Douyin, according to the 2021 Douyin Luxury Industry Annual Inventory Report published by Trend Insight, a platform that provides Douyin marketing data for KOLs and brands.

Typically, luxury brands would work with regional KOLs to introduce their new products and conduct their own live streaming on Douyin’s official account. Luxury brands also use the following alternatives:

  • VIP rooms,
  • Douyin Challenge,

Link: https://mp.weixin.qq.com/s/ZYRV5NFipUbxOvHqcfDcwg 

 

Top influencer Li Jiaqi’s online return gives Alibaba a renewed edge in huge live-streaming sales channel

The Lipstick King, Li, unexpectedly made a comeback to Alibaba’s live-streaming platform on Tuesday night, attracting over 60 million viewers to his show that featured home goods, underwear, and cosmetics. Without providing any additional information, either Li or Alibaba blamed a technical error for the June suspension of his show.

Li and Viya, a rival live-streaming queen, have become some of China’s most significant retail sales figures. On the first day of the Singles’ Day shopping festival last year, the two companies collectively sold goods worth 20 billion yuan (US$2.84 billion). This year’s Singles’ Day schedule has been made public by Alibaba, and the presales will begin late in the following month. This year’s Singles’ Day competition will feature a live streaming war.

Li’s new background was adorned with the phrase “shop consciously,” which he would only utter aloud before going missing. In an effort to hold online shopping companies responsible for their actions, the slogan “shop consciously” has repeatedly appeared in state media and local government notices since Chinese President Xi Jinping’s term began in 2013. He is obviously being cautious this time.

Link : https://www.scmp.com/tech/big-tech/article/3193315/top-influencer-li-jiaqis-online-return-gives-alibaba-renewed-edge

 

ByteDance launches fast fashion womenswear platform “If Yooou”

ByteDance, the parent company of TikTok, has introduced the “If Yooou” fast fashion womenswear line. The online brand currently focuses on the mainstream Western and Northern European markets, including those in the United Kingdom, France, Germany, Italy, Sweden, and other nations. 

ByteDance has previously dabbled in women’s fashion with a lookalike of SHEIN. Early in 2021, the Chinese tech giant launched Dmonstudio, an independent fast-fashion e-commerce portal, and compared its results to those of rival SHEIN.  Dmonstudio, however, announced on February 11, 2022 that it had ceased operations after just three months in business.

ByteDance must therefore concentrate on developing distinctive features to draw in and keep customers in order to avoid a similar fate as If Yooou. 

Link: https://daoinsights.com/news/bytedance-launches-womens-fashion-retail-platform-if-yooou/

 

Observation on the trend of China’s mobile Internet users in 2022

Mobile Internet users in China have been steadily increasing. 1.36 billion users are currently active; their average monthly usage time is 218.1 hours, and they use 23.7 apps on average each month. Video services, life services, and mobile shopping are the top three apps that users of mobile Internet use.

There are now more senior citizens who have access to the Internet. The elderly enjoy news, quick videos, square dances, and other applications. The dominant consumer segment has gradually shifted to “Generation Z.”

Mobile Internet users’ preferred methods of consumption are gradually shifting, traditional e-commerce platform growth is typically flat, and “social” and “interest e-commerce” are becoming more popular. Mobile office applications have advanced quickly in terms of working procedures.

What’s new happening in China?

WeChat Channels and WeCom – Perfect Partners

Utilizing short videos and live streaming can be difficult. WeChat Channels introduce fresh approaches to improve interactions with fans and viewers thanks to WeCom solutions:

  • Buttons for adding the chat to the customer service account
  • Pushing business cards during a live broadcast
  • Employees at WeCom can have up to 50 profiles connected to a single WeChat Channels account.
  • Users can share the stream directly with their moments or groups.

Link: https://mp.weixin.qq.com/s/T0LAvsiVkXRLQ_kSzt-sUA

 

China’s cross-border e-commerce for first-time market entry

The Chinese government has promoted CBeC (cross-border e-commerce) in China over the past ten years by enacting legislative incentives like preferential tax rates and cross-border e-commerce pilot zones.

Cross-border e-commerce has lower regulatory barriers than traditional trade, which requires a significant initial investment, making it a quicker, lower-risk, and more accessible way for foreign brands to begin selling in China.

Link: https://mp.weixin.qq.com/s/0KxWcwmp4piKlS_rLQu4YA

 

ByteDance quietly launches search app Wukong in China, where Google is banned

Owner of the popular short video app TikTok, ByteDance, has quietly introduced a new search engine that guarantees there will be no ads online. ByteDance and Baidu, the dominant search engine in China, are now more directly competing thanks to Wukong, which is currently offered on the Chinese Apple App Store and various Chinese Android app stores.

According to the new app’s advertising, it offers “quality information and search without ads.” It’s possible to read the phrase as a subtle dig at Baidu, which has long drawn flak for its use of paid listings in search results.

Wukong offers a variety of search categories, including news, images, and video, just like other well-known search engines. Additionally, it offers a feature similar to web browsers’ “incognito mode” that does not save search history and lets users bookmark pages.

Link: https://www.digitalinformationworld.com/2022/08/tiktoks-parent-firm-bytedance-quietly.html

ByteDance rival Kuaishou narrows losses, boosts revenue at overseas operations amid gains made in domestic business

After beginning to restructure its international business in March, Kuaishou Technology, owner of the second-largest short video platform in China, narrowed losses at its overseas operations in the three months that ended June 30 while seeing revenue rise by more than 1,000% year over year.

Compared to the 4.4 billion yuan loss experienced during the same period last year, the operating loss at Kuaishou’s overseas operations significantly decreased to 1.6 billion yuan in the second quarter. Revenue increased by 1,328 percent to 103.4 million yuan from 7.2 million yuan a year earlier.

Currently, Kuaishou’s international operations are concentrated in Indonesia with its SnackVideo app and Brazil where it runs the short video app Kwai. In August of last year, the company removed its Zynn short video app from the US after failing to compete with TikTok, which is owned by ByteDance and has more than 1 billion users worldwide.

Link:https://www.scmp.com/tech/big-tech/article/3190023/bytedance-rival-kuaishou-narrows-losses-boosts-revenue-oversea

What’s New In The Chinese Market?

Xiaohongshu cashes in on tourism by setting up a travel agency

Puzhen Xiangli, a travel agency run out of Shanghai, has been established by Xiaohongshu. About 64% of China’s regular wanderlust users now start their journeys on the platform. Since Gen Z travelers prefer Xiaohongshu over more established online travel agencies like Ctrip and Fliggy, this popularity has paved the way for Xiaohongshu to further challenge established market players

Due to Airbnb’s exit from the market, there is now more room for domestic competitors to enter the fray. However, Xiaohongshu’s interests extend beyond homestay. Over 16 million views have been generated by platform searches for the keyword “Travel” so far, which is eight times more views than searches for the keyword “Homestay.” This shows that there is still untapped market potential for the platform to tap into.

Link: https://daoinsights.com/news/xiaohongshu-cashes-in-on-tourism-by-setting-up-travel-agency/

ByteDance debuts the first metaverse-like social app, Party Island

After the rise and fall of the formerly popular proto-metaverse social app Zheli, Chinese tech giant ByteDance has stepped up to take on the challenge of social networking with its highly anticipated social app, Party Island, which, according to Gamelook, a website focusing on the Asian games market, went live for public testing on July 13. 

With the help of their personalized avatars, users can interact with one another in the three-dimensional virtual space; meet up; hang out, and even go to events like concerts and movies with their virtual peers. The app’s access to a vast media library within the ByteDance empire, including live streaming events, films, and TV shows owned by Douyin and Xigua Video, adds to its appeal. 

This enables the app to provide its users with a rich digital experience that will amuse and engage them. While their resemblance to hot technology has largely won over the audience, it appears that the feature that enables a distinctive online experience and meets the social needs of today’s young Chinese is what will really pique user interest. The new innovation from ByteDance would revolutionize China’s online social networking scene if it goes off without a hitch.  

Link: https://daoinsights.com/news/bytedance-debuts-first-metaverse-like-social-app-party-island/

China’s “Silver Economy” Is Here To Spend

The 2022 product catalog for China has been encouraged to include clothing and other items for elderly people by the Ministry of Industrial and Information Technology. This is consistent with the Chinese Community Party’s 14th five-year plan, which was released in 2020 and has a section devoted to enhancing government support for the well-being of senior citizens. In comparison to their Gen Z and Millennial consumer counterparts, the “new” older generation has greater purchasing power and more free time, making them more readily available for discretionary spending. 

We wrote about this here >>> China Trend: Silver Generation

Link: https://jingdaily.com/china-silver-economy-government-support/ 

Brand zone search

It was created to strengthen the demand for building brands. Users actively look up brand terms to learn about the brand, comprehend the consulting services offered by the brand, and enter brand official account message templates, mini programs, and other private domains for information gathering and conversion. WeChat plans to develop more advertising options for search.

More details about WeChat search and brand zone in our article: A Quick Guide To WeChat Search

Link: https://mp.weixin.qq.com/s/SkduovJwM4Up0Nj9JNTw2A

Douyin, China’s TikTok, tests food delivery, bringing ByteDance into a market dominated by Meituan and Alibaba

In order to compete with market leaders Meituan and Alibaba Group Holding, ByteDance’s Douyin, the Chinese version of TikTok, is once again entering the food delivery market.

Some restaurants in specific cities, such as Shanghai, whose economies were severely impacted by a resurgence in Covid-19 this year, now offer a delivery option on their Douyin channels.  However, eateries are required to employ their own delivery personnel or use external delivery drivers. Market leaders Meituan and Alibaba’s Ele.me, on the other hand, are well known for their armies of delivery drivers, who are a common sight on Chinese city streets.

To gain market share, however, one must alter user preferences for the apps that have proliferated throughout many Chinese people’s digital existences. Meituan and Alibaba made up 69 percent and 26 percent of the market, respectively, in 2020. As a result, ByteDance is still facing a great challenge. In order to gain market share, marketers believe Bytedance should think about how to set itself apart from the competition and work on its pricing strategy. 

Link: https://finance.yahoo.com/news/douyin-chinas-tiktok-tests-food-093000424.html

Tencent makes a move to turn WeChat’s short-video function channels into a money pot through ads and e-commerce tools.

The Shenzhen-based company unveiled a new e-commerce tool on Thursday to build online stores on Channels, the quick-video and live-streaming platform inside the multipurpose app WeChat. This tool simplifies the procedure for merchants to list products, sell them, and collect payments.

The e-commerce tool was announced shortly after Tencent Monday added video ads to its Channels feeds, enabling users to directly shop through an ad and share it with friends on WeChat.

WeChat’s video service has added new users rapidly over the past six months, according to data from the Chinese analytics company iiMedia Research, thanks to concerts and entertainment content that makes use of Tencent’s music division’s resources.

Link: https://www.yahoo.com/now/tencent-makes-move-turn-wechats-093000560.html