Chinese Market Updates

November 23, 2022

Alibaba And JD.com Keep Double 11 Revenues Secret. The Chinese Consumer Is Clearly Changing.

 

As the 14th Double 11 came to a close, China’s consumers were feeling down, and massive changes in consumption patterns prevented this year’s shopping festival from growing as rapidly as in years past.

The shopping craze hasn’t entirely subsided, though, and newcomers are catching up quickly in their transition from content sharing to online shopping. Then, new retail platforms and community group buying e-tailers contributed more information.

For the first time, the combined GMV from all significant e-commerce platforms surpassed 1 trillion RMB, according to Syntun, an independent big data monitoring company.

According to Tmall, the four power pillar industries have changed from being beauty, FMCG, consumer electronics, and clothing to outdoor sports, pet supplies, collectible toys, and jewelry. Sales for 358 brands in those four categories totaled more than 100 million RMB.

Link: https://jingdaily.com/double-11-alibaba-tmall-jd-douyin-consumer-trends/ 

 

Adidas just can’t do it in China anymore

 

Adidas reported revenue growth across the globe, except in “Greater China”

Adidas attributed the weak performance in China to the “challenging market environment,” primarily caused by COVID restrictions, but the company also brought up the high number of product takebacks in China, which had a significant negative impact on revenue. 

Old products that have not been sold or for other reasons are returned to the manufacturing process. Adidas is also dealing with extremely high inventory levels, which in the third quarter saw a 63% year-over-year increase, “due to the pressure on the passenger flow trend in Greater China.”

In China, Adidas is actually no longer listed among the winners. Local champion Anta Sports overtook Nike’s $3.7 billion in sales in China in August after reporting revenue of 25.96 billion yuan ($3.79 billion) for the first half of the year, an increase of 13.8% year over year. Anta Sports is now the largest sportswear brand in China.  

Adidas reported China revenue of 12.19 billion yuan ($1.72 billion), while another local brand, Li-Ning, reported revenue over the same period of 12.40 billion yuan ($1.76 billion). Adidas is now in fourth place in China as a result. 

Adidas recently began a partnership with the China Literature and Art Foundation to better the company’s comprehension of and engagement with local consumers.

 

2022 Autumn/Winter Fashion Trend Report

 

In the second half of 2022, the change of dress concept will be the dominant fashion trend. Strong and delicate coexist. There are many different multilevel dress concepts as a result of the re-integration of vintage clothing with modern materials, fashion, and function. 

After a protracted period of seclusion, consumers have rekindled their desire to dress up, but the retail industry continues to be driven by the idea of outdoor time. 

Men’s clothing focuses on “heavy fabric” and the retro revival, while women’s clothing emphasizes style, material, and function. Women’s shoes continue to innovate, while men’s shoes with multi-scene integration wear are in high demands.

  • Top 9 fashion trend

时髦知识分子Trendy Intellectual 

工装辣妹 Workshop Hottie 

摩登新中式Modern Chinese 

复古运动Retro Sports 

千金大小姐Classy Lady 

南法庄园 Panier Des Sens 

职场精英 Workplace Elite 

城市运动Urban Sports 

通勤汉元素 New Han-Style Clothing

  • Top 10 trending categories

衬衫式羽绒服 Shirt-Style Down Jacket 

粗花呢外套Tweed Coat 

无缝一体打底衫 One-Piece Bottoming Shirt 

轻暖羽绒 Lightweight Down Jacket 

重磅卫衣 Pure Cotton Sweater 

西部牛仔靴Cowboy Boots 

玛丽珍 Mary Jane Shoes 

托特包Tote Bag 

软支撑文胸 Soft Supporting Bra 

巴洛克珍珠项链Baroque Pearl Necklace

Luxury resale platform Plum records 100k customers on Double 11

 

The top three most popular brands during Double 11 were Chanel, Louis Vuitton, and Gucci, the report claims.

 The platform’s success is largely attributable to the business’s 2019 launch of an integrative live broadcast model. Plum has become one of China’s biggest platforms with the highest volume of sales and livestreams in its sector as a result.  

The secondhand luxury platform has expanded significantly since it began operating its circular fashion business in 2021. 

Due to changing attitudes toward used goods in the luxury landscape as well as young consumers who are increasingly willing to purchase pre-owned clothing and accessories, China’s second hand luxury market is currently booming. 

According to iResearch, platforms like Plum, Feiyu, ZZER, and Ponhu are leading the trend in mainland China’s domestic luxury resale market, which was estimated to be worth 51 billion RMB (8 billion USD) in 2020 and is expected to grow to 208 billion RMB (32.75 billion USD) by 2025.

https://daoinsights.com/news/luxury-resale-platform-plum-records-100k-customers-on-double-11/

You may also like

What is Chinese market upto

September 27, 2022

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.

You may also like

Trends in the Chinese Market

September 15, 2022

Beijing Accelerates Adoption of Metaverse by Including it in a Development Plan

The Beijing municipal government unveiled a two-year Metaverse innovation and development plan with the goal of fostering the growth of industries connected to the Metaverse and assisting Beijing in becoming a model city for the digital economy. 

All districts are required by the action plan to develop technological infrastructure at the urban level and promote its application in a number of industries, including tourism and education. The Metaverse was also included in Shanghai’s five-year development plan before Beijing.

Link: https://en.pingwest.com/a/10691

 

Douyin launches a “downvote/dislike” function against malicious comments  

In response to the Chinese government’s call for a civilized and peaceful online environment, Douyin (the Chinese version of Tiktok) becomes the first short video APP that enables the “downvote” or “dislike” function in the comment area by clicking a “broken heart”” icon. 

The “downvote” feature was once tested by Facebook and YouTube, but it is no longer available. The fact that users can only “downvote” comments and not posts, and that the total number of downvotes is hidden from view, makes it unlikely that this new feature will offend the creators of Douyin. 

Link: https://www.sohu.com/a/581452520_114819 

 

Luxury Thinks Beyond Mooncakes For Mid-Autumn Festival Celebration

In contrast to the Lunar New Year or the numerous Valentine’s Days celebrated in the nation, which are occasions when luxury brands release limited-edition products, the Mid-Autumn Festival is more of a chance for houses to maintain their connections with local VIP clients and stakeholders. 

Many international brands have chosen to eliminate or reduce the number of mooncakes in their gift boxes in recent years. Fantastic examples from brands like Louis Vuitton, Fendi, and more.

Link: https://jingdaily.com/luxury-thinks-beyond-mooncakes-for-mid-autumn-festival-celebration/

You may also like

Case Study: Grand Hyatt (APAC Wedding Planning Campaign)

June 14, 2022

ABOUT GRAND HYATT

Hyatt, an international hospitality firm that maintains and franchises luxury and business hotels, resorts, and vacation homes, has a 5-star premium line of hotels called Grand Hyatt. It operates over 1,100 hotels and all-inclusive resorts across 69 countries on six continents.

Grand Hyatt China Baidu

Grand Hyatt – Baidu Ads

THE SCOPE OF WORK

Grand Hyatt wanted to raise awareness for its new wedding offering and get the target audience to visualize how their special day can be spectacular in order to generate leads.

We created an APAC campaign across 12 markets, 5 languages, 6 social media platforms,+200 Creative posts and 2 dedicated websites with a mobile-first approach and a SalesForce integration:
• One for China (H5 – WeChat Compatible)
• One for the rest of APAC

Grand Hyatt - Wedding Planning Dedicated Website

Grand Hyatt – Wedding Planning Dedicated Website

Grand Hyatt - Wedding China

Grand Hyatt – Static Content Brought to Life With Romantic Animations

Our approach was to give the audience an immersive digital experience by building visibility on social & digital platforms and drive users to a visual-led-content website where they could curate content to design their wedding dream and even apply dedicated filters to their photos.

THE RESULTS & TESTIMONIAL

Dear KRDS Team,
I want to thank all of you for your hard work and dedication to this project and the campaign. It was a long and fruitful process and completely worth it. It was definitely a successful campaign, and the learnings will only help us improve and optimize as we evolve the wedding and events digital campaigns at Hyatt.

AQUIN MATHEW
Social Media – Hyatt Asia Pacific

If you wish to know more about APAC campaigns and various options, 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 at contact@thewechatagency.com.

You may also like