Latest China News

Chinese Consumers are Comfortable Sharing their Data Compared to Consumers in Other Markets

Between 2017 and 2021, China’s loyalty programme market grew at a 13.7% annual rate to $15.7 billion. Over the following four years, it is predicted to increase at a rate of 13.0% each year.

Quick-service restaurants are establishing green rewards programmes to incentivize consumer behaviour in order to promote a more sustainable lifestyle and attract consumers who are driven by eco-friendly companies.

Link: https://www.businesswire.com/news/home/20220512005913/en/China-Loyalty-Programs-Market-Intelligence-Report-2022-Chinese-Consumers-are-Comfortable-Sharing-their-Data-Compared-to-Consumers-in-Other-Markets—ResearchAndMarkets.com

WeChat Channels Live Streaming Rewards “Traffic Coupon” to Drive Traffic and Sales

Option 1: Mini program live streaming: Brands and businesses can add a Live Streaming module or component to WeChat mini program. For example, brands such as Perfect Diary, Forest Cabin (in Chinese: 林清轩), and Prada have held live streamings through WeChat mini program for sales or events.

Option 2: WeChat Channels Live Streaming: Up to early 2022, WeChat Channels have reached 450 million Daily Active Users, a 50% increase compared to early 2021. WeChat Channels Live Streamings are more visible to the public audience compared to mini-programs. For example, people browsing content on WeChat Channels may enter live streaming of a brand they didn’t know before.

Traffic coupon: In 2022 April 12th to December 31st, any live streaming for shopping purposes with the shopping cart function activated will be automatically participating in Merchant Incentive Plan. 

Brands or merchants have to introduce 50 new viewers that didn’t come from WeChat Channels to gain official traffic coupons. You can drive followers from your WeChat Official Account, spread the news through WeChat Moment, WeCom, personal chats, or groups, to Channels Livestreaming.

Link: https://walkthechat.com/wechat-channel-livestreaming-rewards-traffic-coupon-to-drive-traffic-and-sales/

How to Inspire Word of Mouth Marketing from a Chinese Audience

Any marketing strategy’s success is determined by two factors: reach and impact. Unlike mass media advertising, which has a broad reach but a limited impact, word-of-mouth marketing has a narrower reach but a far greater impact.

The value of word-of-mouth marketing is represented in statistics: according to Semrush, word-of-mouth marketing accounts for $6 trillion USD in global expenditure each year and accounts for 13% of all sales.

Currently, the top social media platforms in China for word-of-mouth marketing include WeChat, Weibo, Xiaohongshu (RED), and Douyin (Tik Tok’s Chinese counterpart), all of which also have their own e-commerce functions built in.

  • KOC
  • DTC
  • Group Purchase

Link: https://mp.weixin.qq.com/s/IRwuZJ_-B26ACLLWt5osEw

Three Chinese Digital Marketing trends in 2022 

 

Regular product updates: More than 200 million new products will be launched on Tmall in 2021, accounting for 35% of the market. It signifies that new products have emerged as one of the most critical components of brand growth.

New goods, on the other hand, do not have to replace prior ones; rather, the new ones might be based on the previous ones and emphasise essential components to highlight the brand’s individuality. For example, OPPO debuted a new series Reno 6 with a light blue cover in September 2021, then 6 months later, they released a new colour Purple Star with the same feature.

Second, more and more brands are collaborating with other brands, particularly those that focus on completely different areas, in order to introduce a brand-new concept and capture the audience’s interest. For example, LV and Nike Air Force collaborated on a new shoe design. Holland, in collaboration with Pokeman, has released a new line of cakes.

Introducing virtual space and unleashing marketing imagination: 
Because of the Facebook revolution, metaverse has grown in popularity since 2021. More and more firms are creating advertising based on this notion, and NFT makes it even more appealing. With the advancement of new technology and the increasing risk of celebrity (scandals), more corporations are creating their own virtual idol for marketing objectives.

On the one hand, developing virtual idols assists firms in lowering marketing costs. Brands, on the other hand, can create a virtual image to suit the company’s position.

Brand responsibility has been enhanced: In recent years, a few corporations have developed a CSR (Corporate Social Responsibility) department with the goal of increasing both social and financial value. Sustainable development will be one of the most essential aspects of a brand that encompasses three major themes: environment, climate, and biodiversity.

– Kangshifu and Pepsi both launched a drink without labels, to reduce carbon and build an environmental concept.
– Kuaishou created an advertisement, revealing the reality of the polar bear, and started a public campaign calling upon the whole society and corporations to actively respond to global warming with low-carbon actions.
– Clarins, together with WWF, created a foundation, starting with protecting the habitat of Siberian tigers and appealing to people to pay more attention to the living status of those tigers and hoping to help them come back home sooner.

Link: https://socialbeta.com/t/10-digital-marketing-trend-in-2022

WeChat Channel Admin Can Be Migrated

Previously, if we wanted to display the channel on the official account’s page, we needed to have the same administrator for both the WeChat official account and the channel. However, if the administrator of the official account is removed for personal reasons, but the administrator of the channel remains the same because the channel administrator does not support change, the channel will not be featured on the front page.

Now the administrator of the channel can be changed, and the function is still under test.

Key points:
It can be replaced 5 times a year
Only certified video numbers are supported
Private messages cannot be migrated

Link: https://developers.weixin.qq.com/community/develop/article/doc/000882fe1d01a003afed3e00e5b013

 

 

 

 

 

China Weekly News Roundup

Elon Musk Praises the WeChat Model As He Discusses Plans for Twitter

Elon Musk praised WeChat as “really an excellent app” and labelled it “a good model” 

“We don’t have anything like that,” Musk said, as he complimented the Tencent super app’s offering of services like Twitter, PayPal and more “all rolled into one.” 

“Such an app would be really useful” in markets outside of China, speculating that it could be created by converting Twitter to something all-encompassing or starting a new app from scratch. 

Musk’s comments quickly went viral in China, with the hashtag “Musk praises WeChat” amassing more than three million views within a few hours on the microblogging platform Weibo.

Link: https://technode.com/2022/05/19/elon-musk-praises-wechat-model-as-he-discusses-plans-for-twitter/

Tencent’s Total Revenue Stays Flat, Profit Drops in Q1 Amid Regulatory and COVID Headwinds

Tencent fell short of market forecasts after posting almost flat revenue growth in the first quarter of this year ($21.2 billion in revenue versus $21.1 billion in the same period last year).

The company’s earnings for the period were RMB 26.3 billion, a 24% reduction year on year, while net margins fell to 19% from 26% the previous year.

Tencent’s worst result since its IPO in 2014 is primarily due to clients’ reduced ad spending and more competition from competitors like TikTok owner ByteDance. Despite the state signalling a softening of pressure on digital giants, the impact of regulatory crackdowns will remain since it will “take time for specific regulators to convert directly into meaningful action.”

Link: https://technode.com/2022/05/19/tencents-total-revenue-stays-flat-profit-drops-in-q1-amid-regulatory-and-covid-headwinds/

TikTok Parent Aims to Double Ecommerce Volume on China App to $240 Billion

This year, ByteDance hopes to more than double the amount of shopping done on Douyin in China to about $240 billion. ByteDance is now planning a global e-commerce development.

TikTok launched an e-commerce function, TikTok Shop, in the United Kingdom and Indonesia last year, allowing users to complete transactions within the app.

It launched the feature in Thailand, Vietnam, Malaysia, and the Philippines last month.

If TikTok’s 1 billion active monthly users embrace the buying option, ByteDance will be a serious competitor to Amazon.

Link: https://www.theinformation.com/articles/tiktok-parent-aims-to-double-e-commerce-volume-on-china-app-to-240-billion

JD Rolls Out Online-to-Offline Department Store Business with Plans for Physical Outlets

JD has introduced a new department store channel by combining numerous existing businesses from its fashion and lifestyle areas, such as apparel, cosmetics, and housewares.

In addition to online platforms, the company intends to expand the service’s offline presence by opening themed brick-and-mortar storefronts in major cities. The first will open before June 18 in Beijing, Chengdu, and Xi’an.

Link: https://technode.com/2022/05/10/jd-rolls-out-online-to-offline-department-store-business-with-plans-for-physical-outlets/

Zhihu 知乎: The Q&A platform for B2B marketing

Zhihu 知乎, which was created in 2011, is a Chinese social platform that has been compared to the western question-and-answer website ‘Quora.’ With more than 100 Million Monthly Active Users in the fourth quarter of 2021, the 36.4% year-over-year rise attests to the community’s ongoing development and potential.

Unlike Baidu Zhidao 百度知道, where the sort of content and responses are given are shorter in length, Zhihu 知乎 provides high-quality content that prioritises quality over quantity.

Even though the platform has a large user base, a larger portion of the audience exhibits unique characteristics. The majority of users are highly educated; they spend about 40 minutes each day reading the stuff submitted, and 60% are between the ages of 25 and 35.

How can you improve your visibility on Baidu?

Since Zhihu has a strong domain authority on this search engine, sharing content on Zhihu boosts your chances of appearing on Baidu SERP.

You can link your business social profiles as well as your corporate website on your Zhihu page, guiding viewers to your key communication channels.

Other features have been added to the platform throughout time. Zhihu Column 知乎专栏, for example, allows you to produce an essay on a given topic without having to attach it to a specific query. Zhihu Roundtable 知乎圆桌 allows specialists to deliver in-depth insights about a certain field of expertise, whilst Zhihu 知乎 Live allows people to interact with the company in real time.

Link: https://mp.weixin.qq.com/s/1uguDRjXl01yj0f4W5BkQQ

Balenciaga’s WeChat Campaign for China’s 520 Day

Balenciaga produced a campaign that includes a number of social activities and limited editions, all of which were available on their official website and in their physical locations. The “5:20 Video Game Hall,” a virtual arcade with pixel art and realistic audio that is now live on the company’s WeChat channel until May 20, stood out. Along with this, 520-exclusive profile images and WeChat gags were made available for free download.

The mini-games throughout the hall struck a chord with Chinese Millennials who grew up with arcade classics like Galaxian and Super Mario, and many WeChat users have already utilised the memes and profile images. Such assets serve as a virtual identity stamp, assisting the company in consolidating its digital significance and expanding its online communities.

Link: https://jingdaily.com/520-2022-balenciaga-louis-vuitton-prada/ https://www.163.com/dy/article/H7MFPPE20552U2HZ.html?f=post2020_dy_recommends 

Wufangzhai Created the Cone Universe

Wufang Pictures has reopened and has officially released “The Next Stop of the Metaverse.” Not only did the brain hole fly out of the Metaverse in this blockbuster, but the copywriting made people crave it.

The short film concludes with a gloomy night, the Metaverse city with many high-rise structures, but no sign of human people. However, no matter how many worlds exist, there is no alternative to the preciousness of human people, which tickles the emotional link deep within every individual and tempts them to try that magical zongzi.

Link: https://socialbeta.com/c/11455 

The WeChat Service Account Has Added a Function–No Notification

The “no notification” capability was incorporated in the most recent WeChat upgrade. To see the message non-disturbing switch, click three points in the upper right corner of the home page of each service number, and then choose “Settings” in the pop-up menu. When there is a new message in the service number after opening the message without interruption, the unread number is not displayed but is simply represented by a small red dot.

This might be bad news for the service account: because it includes a reminder function, it can remind users to read the articles on time, so increasing the amount of reading.

But it’s also good news to a certain extent: according to our experience, after each article is pushed, the account will lose some users. Maybe when the user is not disturbed by the reminder information, the user will not unfollow the account.

Link: https://mp.weixin.qq.com/s/zQtJ5RU7edeAvzFd22l2-A 

Advertising on RED/XiaoHongshu

Xiaohongshu, also simply called RED, is one of the fastest-growing smart social commerce apps on the market, with over 100 million monthly active users. RED provides multinational brands with enormous opportunities to maximize their potential and establish a strong presence in China. It’s for this reason that famous brands like Louis Vuitton and YSL are clamoring to advertise on the site. If you are not convinced yet check our previous post 5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account

In the ever-changing digital landscape, it’s a must-have Chinese marketing channel for beauty, lifestyle, and fashion brands. 

RED helps marketers to engage and sell to their target market by utilizing a filtering algorithm that tailors material to users’ likes, which is one of the most significant advantages.

The most effective strategy to reach users is to advertise in the app’s newsfeed. User-friendly and authentic material with clear reasons to interact is preferable. We recommend to use a mix of multimedia with enticing descriptions with hashtags to cover a variety of views depending on the objectives and industry subjects. 

One of the key ways to gather popularity on RED is of course collaboration with KOLs and KOC ​​which we will cover in our next posts.  

Who are Chinese influencers: KOL and KOCs? 

Today, we will focus on how you can advertise using RED’s native media buy system.

While advertising on the platform is certainly beneficial to your business, navigating XiaoHongshu’s merchant setup can be tricky. There’s a lot to consider, and there’s not a lot of help available. Here’s all you need to know about selling on XiaoHongshu without the hassle!

Step 1: Create an account on RED / XiaoHongshu

To begin, you must first create an account on XiaoHongshu’s enterprise system. If you’re an incorporated business with your own email account, this should be pretty simple.

Step 2: Provide information about your business

After you’ve created an account, you’ll need to fill out the following information:

  • Company information and qualification: like your contact information, location, the origin of your goods, trading model (cross-border or general commerce), and business type. Also, include a Chinese business license or letter verifying your right to sell in China and proof of incorporation.
  • Financial information: your bank details, account number, billing currency, and sort code
  • Brand information and qualification: adding your brand name, description, and photos, as well as whether you’re a single or a multi-brand company. Also, I Include trademark certificates, permission to resell other brands (if applicable), and authorization to sell under your own brand.

Step 3: Review of qualifications on RED

After you submit the above information, XiaoHongshu will review your application and determine whether you are eligible to sell on their site. If all of the information you supplied is correct, you can complete it as soon as one week after your submission.

Step 4: Fill out the contract

When RED approves your application, you’ll receive both a digital contract to sign through email and a physical contract to return by mail. Read these over with a lawyer and sign them as soon as possible if you wish to move further.

Step 5: Take up the XiaoHongshu training

The completion of XiaoHongshu’s online training program is the final stage in the application procedure.

This section contains all you need to know about selling on the platform, and you won’t be able to start your store until you finish it. Set aside some time to concentrate on this – it will benefit you greatly in the long run.

Time taken to register: The length of time it takes to register is mostly determined by how quickly you can complete all of the paperwork, complete your company introduction, submit photographs, and so on.

If you do everything correctly from the start, you can administer the application in one week.

Costs included: Deposits and operating fees are included in the cost of selling on the platform. Deposits vary depending on your company’s “characteristics,” your qualifications, and the type of store you intend to open.

The deposit is usually RMB 20,000 and is returned three months after the store is closed.

Conclusion

Xiaohongshu’s unique stance as a trustworthy, celebrity-approved distributor of international products is an ideal route for businesses. Especially for ones looking to leverage the social commerce trend as part of the e-commerce revolution for purchasing superior products.

However, marketing in China is never simple. There are language barriers to overcome, rules to follow, and high costs to consider. All of that makes starting all too risky.  

That is why at KRDS, we commit to assisting businesses to achieve marketing success in China. If you require further support with setting up your account, 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

Cross Border E-Commerce in China

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:

  1. The maximum amount for a single transaction has increased from 2,000 RMB (291 USD) to 5,000 RMB (727 USD)
  2. The average annual amount spent across borders climbed from 20,000 RMB (2,909 USD) to 26,000 RMB (3,782 USD) per person.
  3. 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.
  4. The number of cities eligible for the CBEC tax-rebate increased from 15 to 37, including Beijing and Shanghai.
  5. 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:

  1. Figure out the suitable platform to sell your products
  2. Know the latest trends and who your consumers are
  3. Understand the rules and regulations
  4. Read up on the geography of your audience
  5. 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

What is Zhihu? And 4 key benefits of using it.

WeChat, Weibo, and Douyin are almost certainly the first platforms that come to mind when it comes to social media marketing in China. While Zhihu may not be as well-known on a global scale, its reputation is unmatched. As one of China’s most reliable, expert-led social media platforms, it is worthwhile to investigate further.

Zhihu, which was founded in 2011, distinguishes itself from its competitors by offering high-quality questions and reliable responses. 

Its name is derived from the classical Chinese phrase 

“Do you know?”. 

The platform’s main feature is that users can ask and answer questions on a variety of topics, from software development to postnatal care

People can rate, bookmark, share, and comment on responses, as well as invite individual users to respond to their queries. Experts and professionals from a variety of industries utilise this platform to offer high-quality thoughts. 

According to the platform’s SEC registration statement, Zhihu is one of China’s “top five comprehensive online content communities.” It has 76 million monthly active users and 43.1 million cumulative content creators who have published 315.3 million questions and answers since it began as an invite-only service (as of 31 December 2020). 

Zhihu Marketing and its Benefits

Any company that wants to reach educated professionals in China with more disposable income should advertise on Zhihu.

However, certain brands will gain more than others from Zhihu marketing. Those in the B2B, IT, or professional services industries, for example, would be in the best position to boost brand awareness by providing true value to platform users. Whereas, fashion and beauty brands, on the other hand, are unlikely to succeed unless they’re expressly targeting the professional market.

 

Key Benefits 

 

  • Raise brand awareness by organising a Q&A session
    Zhihu is popular among the well-educated. According to studies, 80% of registered users have a bachelor’s degree or more, and 20% have had international educational experience. Zhihu’s user base is made up of people who have a lot of money, a lot of spending power, and a lot of knowledge, and who can talk about more high-level, technical, and premium issues.
  • 3rd-Party Mentions Can Help You Build Trust
    Being mentioned on the platform can help your company create credibility and go viral through word-of-mouth within the community because the majority of the users are well-educated. Many people come to Zhihu for in-depth evaluations and research when they need to make a purchasing decision, making it an immensely strong tool for soft-selling and influencing long-term buying decisions.
  • A well-educated user base
    Zhihu receives around 26 million daily visits on a typical day. This indicates that it is commonly used by Chinese internet users. As a result, Zhihu is an excellent platform for showcasing your brand to a big number of educated and well-off people. Given a large number of users and the platform’s “Q&A” character, this is a great platform for increasing brand visibility or marketing a new product.
  • High search engine authority
    Many popular search engines, such as Baidu, Sogou, and 360.com, rank Zhihu extremely high. It has a Baidu domain authority of 8/10 and a 360 search domain authority of 9/10. This demonstrates that major search engines trust Zhihu material, making it simpler for the platform’s content to rank high in search results.

 

Conclusion

Asking and answering questions, particularly ones that connect directly to your brand’s expertise is the simplest method to engage with the community. Users don’t respond well to overt promotion, so content should be meaningful and informative rather than brand-focused. 

Additionally, some of the platform’s newer features, such as Zhihu Live, can be used by firms to demonstrate their competence; for example, a cosmetics brand could live stream basic beauty demonstrations.

The company is preparing to develop a national knowledge-based content platform, thanks to some recent investments. It intends to expand spending on content, knowledge services, and marketing, as well as artificial intelligence technology for better content personalization. Therefore, with a large number of high-level intellectual users, Zhihu provides lucrative marketing opportunities for brands and organizations.

If you require further support with setting up your account please contact our team.   We use our knowledge and expertise to help businesses build meaningful partnerships and develop a digital marketing strategy that better targets and engages Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong