China economy Archives - The WeChat Agency

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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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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WeChat: Navigating Professional Networking Beyond Borders

August 24, 2023

In the realm of professional networking, the emergence of WeChat as a alternative to LinkedIn in China warrants a closer examination. This shift reflects not only the distinctive characteristics of each platform but also the unique landscape within which they operate. As aspiring professionals and seasoned experts seek avenues to foster meaningful connections and career growth, the insight into this phenomenon becomes essential.

LinkedIn and its Limited Footing in China

LinkedIn, the globally recognized professional networking giant, has experienced a contrasting reception in China compared to its stronghold in the Western world. It’s crucial to recognize that LinkedIn never gained the same level of popularity among professionals in China as it did elsewhere. The intricate interplay between cultural preferences, local networking norms, and governmental regulations has shaped this distinct dynamic. In addition, China’s authorities have intermittently restricted access to LinkedIn, rendering it a less accessible option for professionals seeking to build connections and explore job opportunities.

In 2021, LinkedIn announced that it won’t support user-generated content and user interactions on its Chinese version. Consequently shutting down all networking functionalities of the platform. These changes resulted in LinkedIn China transforming into InCareer – a job board website. Due to the platform difficulties in the local market, InCareer shut down in August 2023.

🔍 Top 5 alternatives for LinkedIn in China you need to know now

WeChat’s Emergence as an Alternative

Against this backdrop, WeChat, the multifaceted social media platform created by Tencent, has risen as a compelling alternative for professional networking in China. Several factors have contributed to WeChat’s ascendancy in this sphere. WeChat boasts a substantially larger user base in China compared to LinkedIn, thereby offering professionals a more expansive network to tap into. This inherently larger community fuels interactions, conversations, and the sharing of industry insights, creating an ecosystem conducive to networking.

Firstly, one of WeChat’s defining strengths lies in its diverse array of features tailored to professional networking. Individuals can join specialized WeChat groups aligned with their industry or interests, fostering connections and knowledge exchange. Secondly, WeChat has integrated a job search function within its platform. It’s efficiently facilitates direct job applications and making the process more streamlined.

Moreover, WeChat’s emphasis on mobile integration aligns seamlessly with the dynamic lifestyle of professionals in China. This mobile-centric approach allows users to connect, engage, and nurture relationships. All of that on the move, without being tethered to a traditional desktop platform.

Crafting a Robust Networking Ecosystem

Most of interaction, both personal and professional, takes place on WeChat. Therefore this shift toward WeChat as a primary platform for professional networking underscores the platform’s versatility and adaptability. For aspiring professionals and seasoned experts alike, nurturing an effective networking ecosystem entails a strategic approach.

In a professional environment, it’s natural that business partners will add each other on WeChat. More and more often this includes WeCom previously known as WeChat Work. In a world perpetually in motion, WeChat’s mobile-centric model resonates with the fast-paced nature of professional endeavors. Fostering connections through brief interactions, quick updates, and timely responses can be instrumental in maintaining a robust network.

💼 WeCom: The Essential Chinese Business Communication Tool for the Online Era

Leverage WeChat Groups

WeChat’s group feature transcends conventional networking by allowing professionals to immerse themselves in specialized communities. Engaging in relevant groups can provide insights, spark discussions, and lead to valuable connections. Navigating this landscape requires a discerning eye to identify groups that align with one’s career trajectory and aspirations.

🤝 WeChat with its different function is a great tool for B2B lead generation

Capitalize on Job Search Functionality

Last but not least, WeChat’s embedded job search feature merits exploration. It exemplifies the convergence of networking and career advancement within a single platform. Job seekers can navigate openings, apply seamlessly, and potentially expedite their journey toward new opportunities.

Navigating the Landscape

While LinkedIn remains a pivotal player in professional networking globally, the WeChat phenomenon in China provides a valuable lesson in adaptability and embracing platforms that align with the local landscape. As professionals seek to cultivate meaningful connections and unlock new horizons, understanding the nuances of these platforms becomes paramount. As a result, it is imperative to impart the wisdom of informed decision-making and recognize that different environments demand tailored strategies. In this ever-evolving landscape, the path to success lies in the harmonious interplay of platform functionality, cultural dynamics, and individual aspirations.

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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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Top Chinese E-commerce Platforms and Fees to Expect

August 11, 2022

The Chinese e-commerce market is the largest in the world and generated €867 billion in revenue in 2019. From 2020 to 2024, the annual growth rate of e-commerce in China is projected to be 6.9%. Obviously, many overseas companies are tempted to enter the market and cater to millions of potential new consumers. Be it the youngest Gen Z or Chinese grandmas who are eager to spend more during their retirement, with a great product and market strategy it’s a great chance for brands to tip their toes.

This appeals to international businesses as well as the local business community, resulting in cross-border online trade. In 2022, it was estimated that the import e-commerce retail market would be worth close to 559 billion yuan. The most popular e-commerce platforms are Tmall, JD, Xiaohongshu, and WeChat. However, you will see there are plenty more e-commerce sites in China.

No matter the size of your brand, the first step and choosing the right platform can be paralyzing. Companies quickly realize that the entry barriers to the biggest Chinese shopping platforms are challenging starting with the paperwork to e-commerce fees, steep deposits, and commissions.

One of the most attractive e-commerce models especially for niche or small brands that want just to test the waters would be cross-border e-commerce. Therefore more platforms offer this option now.

In China, cross-border e-commerce is distinguished by the fact that overseas companies are permitted to offer some goods to Chinese consumers online at favorable tariff rates and without the need for a business license. However, solution comes with some limitations we highlight in our previous article but nevertheless, it can be a very attractive way to kick off in China.

🇨🇳 Learn more about cross-border e-commerce and if it’s a solution for your brand

Let’s look at how much it costs to sell goods on these platforms in China, the pros and cons, and see which one can be the best fit for you.

Tmall

Tmall, formerly Taobao Mall, is a platform for business-to-consumer online retail, spun off from Taobao, and operated by Alibaba Group. It’s a highly reputable marketplace where all sellers are verified by the platform. In addition, Tmall has several solutions for brands that want to sell on the platform including cross-border sales.

Tmall General:

For Tmall general trade, the security deposit is $7,500.
A deposit is required from vendors to open a Tmall store. The deposit is primarily used to ensure that retailers follow the Tmall Service Agreement and Tmall Rules so that expenses are covered in the event that retailers break any rules.
To use Tmall, an annual e-commerce fee of $4,500 must be paid. Depending on the merchant’s category, a yearly fee is paid at the time of settlement.
Suitable for brands that have Chinese business license.

Registration fee: USD 7,500 deposit + USD 4,500 annual tech support fee

Commissions: 8-12%

Tmall Global:

Cross-border solution
Suitable for overseas brands
Doesn’t require a local warehouse in China
Access to Tmall’s services including live-streaming and advertising

Registration fee: USD 7,500 deposit + USD 9,000 annual tech support fee

Commissions: 8-12%

Tmall mini-store:

Cross-border solution
Suitable for niche or small brands
Listed as sub-store on Tmall direct flagship
Suitable for smaller collections or products that can be shipped to China separately (maximum 3 products)

Registration fee: USD 4,500 deposit

Commissions: 4-12%

JD:

As Tmall, JD also offers solutions both for brands that have legal entity in China and cross-border players.

JD General:

When creating a new account, JD.com requests a deposit starting from USD 4,500 and higher.
For the majority of categories, the commission is between 2 and 5%.
Suitable for brands that are already in China

Registration fee: USD 4,500 deposit+

Monthly fee: USD 150

Commissions: 2-10%

JD Global:

Through a new partnership between JD and Shopify, merchants on that platform now have access to a new sales channel with a simpler onboarding process and better exchange rates through the marketplace.
Fees and requirements appear to be more demanding than Tmall

Registration fee: USD 15,000 deposit+

Monthly fee: USD 1,000+

Commissions: 2-5%

Xiaohongshu / RED

Suitable for lifestyle and fashion brands
Recently, RED tries to be more brand-friendly and lower the commission costs. These do not include marketing expenditures, influencer commissions, or fulfillment fees.
Account set-up guide >>> here

Registration fee: Case-by-case basis (normally USD 3,500)

Monthly fee: None

Commissions: 5% (reduced from 20% before)

Recently, we covered another quickly expanding platform dubbed ‘the RED but for men’. You might have heard of Poizon also called Dewu on the Chinese market.

WeChat Mini-Programs as Alternative to Big Platforms

purchasing journey wechat mini programs

WeChat’s own mini-program-based online shop can be a great solution for brands that are not keen on costly registration fees and commissions. However, on the other side if you decide to go with the mini program you will have to figure out the storage, deliveries, refunds, and other logistics by yourself which the big platforms usually cover. Due to that, you will need to build the mini program by yourself.

In addition, another amazing advantage of a mini program store is that you are the owner of the data. Also, WeChat users who are already your followers are more known to be more likely to convert to customers and normally the average purchase is bigger than those on other platforms. We covered the pros and cons and how the most successful brands do it on our blog.

🛍 Why selling on WeChat can be better than selling on Tmall and other platforms?

In conclusion, the Chinese e-commerce market is in a fascinating state right now. And platforms are vying to have the best appeal to clients and businesses. However, nothing seems to be offered for free. In other words, brands must invest in order to sell products on these e-commerce platforms because of the publicity and sales they generate. Above all, China’s famous e-commerce festivals like 11.11 called Singles’ Day or 6.18 are a great opportunity for brands to generate more sales.

If you wish to know more about e-commerce and cross-border e-commerce in China or other marketing techniques, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com.

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What’s New In The Chinese Market?

July 26, 2022

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

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What Is Dewu?

March 9, 2022

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

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

Poizon Dewu

Dewu’s USP

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

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

Poizon Dewu

Growth of Dewu

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

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

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

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

Key User of Dewu

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

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

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

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

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

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

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

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

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

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

Incentive for brands

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

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

Poizon Dewu

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

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

Step 1: Create an account and log in.

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

Step 2: Fill in the information

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

Step 3: Wait for the review

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

Step 4: Make a deposit.

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

Conclusion

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

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

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

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

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Cross Border E-Commerce in China

February 7, 2022

China’s cross-border e-commerce has drastically matured in recent years. Thanks to the steady increase in industry size, greater integration of supply chain processes, progressive transition to more refined operation, and continued penetration of innovation models, the industry has boomed significantly.

The import and export trade has existed since the dawn of time, yet despite the Covid-pandemic, the numbers are on the rise. The widespread adoption of online consumption patterns has fuelled the rapid growth of worldwide e-commerce. This has resulted in a steady increase in penetration and sales.

According to eMarketer, China’s cross-border e-commerce became a new economic accelerator in China, as well as a hot investment and financing area in the capital market, thanks to its solid advantages in high cost-to-performance and high efficiency.

Cross Border E-commerce: What Is It?

Any international sale of a product or service between two parties on an online marketplace platform is referred to as cross border e-commerce.

It can either be B2C (Business-to-consumer), B2B (Business-to-business), C2C (Customers-to-customer) or D2C (Direct-to-consumer)

Any seller can benefit from cross-border e-commerce if they want to expand their business, investigate new markets and purchasing patterns and/or export what they have to offer in order to reach a larger audience but it can be intimidating to start.

Cross Border E-commerce in China

In China, cross-border e-commerce is distinguished by the fact that overseas companies are permitted to offer some goods to Chinese consumers online, through platforms such as Alibaba’s Tmall Global and Kaola, at favorable tariff rates and without the need for a business license.

Moreover, the majority of cross-border trades in China are carried out by corporations from other Asian countries, led by Japan and Korea, and closely followed by the United States.

The Chinese Ministry of Finance has implemented few regulations for cross-border purchases since January 2019. The following are the most important for CBEC in China:

The maximum amount for a single transaction has increased from 2,000 RMB (291 USD) to 5,000 RMB (727 USD)
The average annual amount spent across borders climbed from 20,000 RMB (2,909 USD) to 26,000 RMB (3,782 USD) per person.
In China, 63 additional item categories have been added to the positive list for cross-border e-commerce purchases. Sparkling wine, beer, health care items, and workout equipment are among these categories.
The number of cities eligible for the CBEC tax-rebate increased from 15 to 37, including Beijing and Shanghai.
Because of the new regulation, it’s more difficult for Daigou to operate unlawfully. Daigous is a form of surrogate shopping in China as a means to receive cheaper or locally unavailable, often luxury goods, from duty-free shops and foreign countries.

The Retail Marketplaces of the CBEC

In China, there are various platforms for cross-border e-commerce. Tmall and JD.com are at the top of the list.

China’s consumers are more educated than they have ever been. As a result, they desire higher-quality goods and are willing to pay a higher price for them. They are educated and shop on the go using mobile devices. The majority of e-commerce shoppers are between the ages of 18 and 34.

In 2017, the average Chinese online shopper spent RMB12,198 (S$2,558) (iResearch Consulting Group).

Some of the key marketplaces you could consider for cross-border e-commerce are:

Tmall & Tmall Global (Alibaba)
Kaola (Alibaba)
RED (Xiaohongshu)
JD Worldwide
VipShop
Pinduoduo

Most major global brands have a presence on one or more of these platforms because they provide high market exposure and allow them to benefit from the platforms’ high quality and exposure.

What are the benefits of cross-border eCommerce?

The most significant advantage of cross-border eCommerce is that it allows you to extend your business globally and gain exposure to new markets and audiences. Because of that, it will also assist you in increasing the appeal of your business.

With a larger audience, your company’s number of customers and potential consumers will increase, potentially leading to an increase in demand and customer orders.

Products that are less popular in their home market have been discovered to be more popular beyond borders in some situations. As a result, cross-border e-cmmerce can help you sell slow-moving or outdated inventory.

However, there are a few things to consider before pursuing cross-border e-commerce for your business:

Figure out the suitable platform to sell your products
Know the latest trends and who your consumers are
Understand the rules and regulations
Read up on the geography of your audience
Learn what various partners can do for you

End word

In conclusion, enterprises should prepare themselves by having a thorough awareness of trends, customers, location, legislation, platforms, and the ecosystem. Thank to this, they can effectively access China’s lucrative cross-border e-commerce sector. So there is a lot of homework to do, but there are also a lot of resources.

If you require further support with setting up your account or assistance in learning more about cross-border e-commerce in China,, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

Read more such articles by clicking the links below:

What Are the Most Important E-commerce Festivals in China?
The Accelerating Growth of Niche Perfume Brands in China
A Quick Guide to Xiaohongshu (Little Red Book) Marketing
Establishing A Presence on Xiaohongshu, China’s Popular Fashion Platform

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