What Happened in China This Week?

October 19, 2021

Chanel Takes on the Resale Market With One Bag per Person per Year Policy

Chanel limits the number of purchases for its most popular handbags to one of each per customer per year. The move is aimed at preserving the uniqueness of luxury goods, since the resale market has exploded in recent years, with proxy purchasers buying out stocks and diluting the brand experience when reselling to their own clients. Furthermore, China’s second-hand market is expanding.

China is well-known for its vast resale grey market, which is overseen by plenty of daigous. According to BCG estimates, Chinese consumers will spend $35 billion in the global luxury market in 2020, with $28 billion (80%) paid through the usage of a daigou service.

Link: https://jingdaily.com/chanel-limit-purchases-handbags-resale/?utm_source=Jing+Daily+Subscriber+List&utm_campaign=b5b170f8dd-EMAIL_CAMPAIGN_2020_03_12_06_39_COPY_01&utm_medium=email&utm_term=0_8dec01cd8d-b5b170f8dd-408268421 

 

Taobao launches a new feature to embrace Double 11 shopping festival

Taobao launched a new feature called “Planting Grass Machine” 种草机 where users can browse product recommendation reviews that are posted by other users. It’s supposed to help consumers make better consumer decisions based on peer recommendation and it’s supposed to offer more variety of content and reviews than just KOL endorsements.

Any keyword typed in the “Plant Grass Machine” will take the user to a page of relevant lifestyle-sharing content.

Link: https://daoinsights.com/news/taobao-launches-a-new-feature-to-embrace-double-11-shopping-festival/ 

 

Double 11 x KOL’s reality show

In China, Livestream shopping has become a new trend, with more and more firms using it to market their products. This year, Austin, a well-known KOL, debuted a reality show called the Girls’ Offer. We can watch the show on Weibo, the Red and Douyin. During the show, we can see how he negotiates the price with the brands (most of them are cosmetics brands) and how the brands react to the challenges.

As the double 11 is coming, this show is like a teaser. The brands can get exposure before the big event, Austin will enhance his image and bring more traffic to his Livestream thanks to his professionality, the consumers can know in advance which brands will have the best offer for them.

Link: https://video.weibo.com/show?fid=1034:4690150597525601 

 

Tencent’s WeChat to stop routinely accessing photos after a tech influencer publicized the behaviour on Weibo

WeChat’s background scanning for new photos was said to run every few hours and found using Apple’s new “Record App Activity” feature in iOS 15. The company said the behaviour will be removed from the app in a future update, but other apps have been found to do the same thing

Background scanning for new photos “will be cancelled in the new version”, a company representative said. 

In recent years, China’s big tech businesses have been under increasing pressure to address privacy concerns. In 2019, the Ministry of Industry and Information Technology began checking apps for privacy issues on a regular basis. To date, it has identified over 1,300 apps for having too many permissions, illegally gathering user data, and misrepresenting customers.

Link: https://www.scmp.com/tech/big-tech/article/3151762/tencents-wechat-stop-routine-scans-photos-after-tech-influencer 

 

LinkedIn’s China retreat stems from regulatory and competitive pressures as local recruitment platforms prosper

The decision comes only two weeks before China’s Personal Information Privacy Law, which is one of the strongest data protection laws in the world, goes into force. In China, where job seekers and professional networkers have a variety of options, LinkedIn had only made a limited impact.

LinkedIn first entered China in 2014, and with its partial exit, it has become the final big US social media company to leave the nation.

Link: https://www.scmp.com/tech/tech-war/article/3152526/linkedins-china-retreat-stems-regulatory-and-competitive-pressures  

 

Why Brands Need WeChat Index

Based on the official explanation from WeChat Index, there are two main ways:

  • Brands can create related content on WeChat, such as WeChat articles, videos, or advertisements, to increase their exposure.
  • Brands can improve the quality of content that is related to the keyword.

Brands may assess their level of popularity on WeChat and so determine whether they are top-of-mind for Chinese customers by watching the WeChat Index. Brands may also determine the return on investment of marketing campaigns by comparing their WeChat index records to the campaign dates and determining which days have the highest search volume.

Link: https://www.luxurysociety.com/en/articles/2021/04/wechat-luxury-index-2021-social-commerce 

You may also like

Weekly China Insights

October 12, 2021

WeChat Launches Easy Mode for Elderly

The older generation, even though relatively mobile-savvy, faces a lot of challenges when it comes to mobile services, especially those related to COVID-19. By the end of 2020, more than 123 million Chinese netizens were aged over 60, accounting for 12.3% of the overall internet users. We can expect this trend to grow in the coming years.

That’s why the Ministry of Industry and Information Technology ordered 43 of the most used applications to take the lead in adapting to the needs of elderly users – Wechat, Taobao and other apps are launching ‘Easy Modes’ to cater to older netizens.

However, these improvements seem to be rather limited with a focus on bigger fonts and brighter colours instead of simplifying the user journey or incorporating voice assistant. 

Link: https://daoinsights.com/news/wechat-launched-easy-mode-to-target-chinas-123-million-elderly-users/ 

 

Alipay consumption report during National Day holiday

Theme parks are the latest trend: visits soared 936% over the previous month. Fantawild, Disneyland, Universal Beijing Resort, Happy Valley, and Chimelong Resort are the top five parks. Museums, zoos, and resorts were among the top five mini-programs for picturesque areas.

The amount spent in duty-free stores and offline boutiques has surged: in Hainan duty-free stores, the amount spent has climbed by 87%t since 2019. In comparison to last month, the amount spent in boutiques and shopping centres jumped by 40%. Xi’an, Taiyuan, and Zhengzhou, all tier 2 cities, ranked first, second, and third, respectively.

Convenience Store consumption met the peak. Consumption at convenience stores has reached an all-time high. During the holiday, the most popular mini-program was about anti-covid-19, Travel tracking cards; others were about “Order by mobile phone” and Old clothing recycling.

Link: https://mp.weixin.qq.com/s/V_j7k4GjvAUjD-OKmHsj8w 

 

National Day WeChat status

During the National Day holiday, “wishing the motherland” was promoted as the top WeChat status NO.1. The top three are: wishing the motherland, fighting and the unknown.

Wechat status data show that girls love “chilling at home” more and boys “having fun” more. With the decrease of holiday balance, and the set amount of “exhausted” and “worried” is increasing.

More than 3 million WeChat users take more than 30000 steps a day, and more than 4.13 million WeChat users take less than 100 steps a day.

Link: https://mp.weixin.qq.com/s/TtcEqzmS0WTRscFz6wLJ4g 

You may also like

WeChat for B2B Sector

October 4, 2021

We’ve always heard that WeChat is a wonderful tool for marketing to customers. But what about B2B marketing on WeChat?

B2B Marketing on WeChat

Since the B2B e-commerce sector began to flourish in 2013, B2B businesses have had to adapt their marketing strategies to stay up with the ever-changing channels and platforms. Because marketing methods vary swiftly in China, western approaches may not produce the best outcomes for B2B companies. As a result, determining the best platform for building relationships and generating leads is crucial.

Tencent’s Super App, WeChat, provides the ideal ecology for B2B businesses. WeChat, which has over 1 billion monthly active users (MAUs) and 80 million public account followers, may help businesses expand if used effectively. Many Chinese people no longer carry business cards to networking events, meetings, or conferences. They merely scan each other’s QR codes on WeChat.

Businesses may conduct one-on-one direct conversations with their customers, as well as one-to-many messaging possibilities inside groups, multimedia communication, and mobile data sharing, all of which make WeChat a useful and successful corporate communication tool.

WeChat also has a multitude of built-in features, such as stock ordering and administration, quizzes, and lessons, to name a few. To get the most out of this platform, make use of as many relevant features as possible. Furthermore, the WeChat app makes any work-related information more engaging, fascinating, and enjoyable. As a result, every company’s marketing efforts should include WeChat B2B platforms.

Types of WeChat accounts

First and foremost, you will require a WeChat official account. Businesses can use a WeChat official account to communicate with customers and boost brand awareness.

The 3 types of WeChat official accounts are subscription, service, and corporate.

Both subscription accounts and service accounts are appropriate for B2B marketing.

Since it allows organisations to maintain direct relationships with clients, a service account is preferable for service-oriented enterprises and after-sales departments. Only service accounts have access to CRM, custom menus, payment integration, and mini websites.

💼 Why should brands use CRM Integrations on WeChat and how about Salesforce?

 

What Are Some of the Beneficial Features of WeChat for B2B Marketing?

 

  • WeChat Web Analytics Tool
    Businesses can utilise WeChat web analytics to see how customers engage with their websites and gather feedback on their performance in order to enhance their products or services.

 

  • WeChat Translation Tool
    Businesses will benefit from WeChat’s in-app translation service, which is available for iOS and Android users. When doing business in China, you must be completely immersed in the culture. Poor translation will result in poor marketing outcomes and harm your brand’s image. It also aids firms in gaining a better knowledge of the demands and needs of their target audience.

 

  • WeChat Template Message Tool
    Official accounts can utilise a template message to deliver crucial service notifications to their customers, such as a message informing them that a purchase has been completed successfully.

 

  • WeChat Communication Tool
    Official documents, contacts, excel sheets, videos, and plans can all be sent over WeChat. The B2B segment allows businesses to communicate swiftly with one another via messages.

 

  • WeChat Group Message Tool
    You can send gender and location-based group messaging to your target audience. This function allows you to reach the proper target audience while avoiding annoying other groups of people who aren’t interested.

Other features available include an automatic reply tool, a personalised menu tool, and many more.

 

Conclusion

WeChat B2B marketing is a wonderful tool for businesses looking to market their goods or services to Chinese customers. To create the best marketing strategy, you must not only use all of the features of WeChat B2B, but you must also understand your opportunities and challenges.

You may also like

What Are the Most Important E-commerce Festivals in China?

September 28, 2021

China is not just the world’s most populous country, but it also has the most internet users. And with about one billion online shoppers, the country has the world’s largest and fastest-growing e-commerce market.

The Chinese e-commerce business has evolved significantly over the years, revolutionizing the traditional system for both customers and sellers. Needless to say, the e-commerce market exploded in 2020 as a result of COVID-19, particularly in China, causing an increasing number of firms to want to start selling online. 

And one of the market’s driving forces is the China shopping festivals, which is a massive retail event where firms slash prices in honor of Chinese culture, history, and plain old consumerism. Therefore, all international firms looking to grow their sales in 2021 and beyond should learn about China’s biggest and most important e-commerce festivals.

 

Here at the top 5 e-commerce festivals in China:

 

  • National Day/Golden Week

Golden Week, which commemorates the founding of the People’s Republic of China in 1949, begins on October 1st with National Day and lasts until October 7th. It is China’s longest public holiday, and it generates huge business for international brands.

The total sales for overseas brands on Tmall increased by about 80% last year and several international cross-border e-commerce platforms also reported a significant rise in sales. Luxury brands in particular perform well during this time, with several companies reporting a 60% boost in sales in 2020.

 

  • Double 11 Shopping festival

The Double 11 shopping festival, also known as Singles Day, is the king of all global retail events. During the festival periods in November 2020, Alibaba and JD earned $155 billion in sales.

With more than 250,000 brands and 800 million consumers participating, last year’s sales were recorded as more than RMB 372.3 billion (US$56 billion).

 

  • 12.12 Shopping Festival 

Alibaba introduced the 12.12 or Double 12 Shopping Festival on November 12th in 2010 for customers who were still looking for good deals after Singles Day. The Double 12 shopping festival is one of the largest in the South Asian online buying marketplace and it is that time of year when careful planning and organisation can pay off handsomely for a seller.

Due to rising customer interest, the event resulted in a 4-5 fold increase in online traffic, 60% unique visitors, and a 2 second average order rate. Last year, 18,000 orders were placed in a single day, with an average spend of 125 SGD per customer.

 

  • Nian Huo Festival 

The Spring Festival, also known as Nian Huo, commemorates the Chinese Lunar New Year, which falls in the month of Jan-Feb

Since Chinese New Year is such a popular festival, discounts are available across a variety of platforms, though market giants like Alibaba and JD tend to attract significant crowds. This famous holiday brought in more than $155 million in retail sales in 2019, and sales of imported goods climbed by 2.3 percent year over year in 2020.

 

 

  • International Women’s Day

International Women’s Day, observed on March 8th, has become a lucrative shopping festival in China for female-oriented brands in China.

According to the Chinese Research Centre for E-commerce, 70% of Chinese women prefer to shop online rather than offline. As a result, this is an important e-commerce festival to participate in. Last year, Tmall’s “Own Yourself, Love Yourself” campaign aided female empowerment, garnering more than 600 million hashtag views on Weibo and 2.12 million comments.

 

Conclusion

Online shopping is an accepted part of life in China. Everything from fresh produce and seafood to appliances and automobiles are being purchased online.

Due to the high demand in the market, e-commerce platforms work hard to encourage online shoppers, resulting in China’s numerous shopping festivals. If you want to increase your brands e-commerce sales, you need to be aware of the major e-shopping festivals and plan your marketing strategy accordingly. This is why selling on Chinese e-commerce platforms is the most efficient way to increase sales among the Chinese audience. 

You may also like

This Week In China

September 28, 2021

TikTok limits younger users to 40 minutes a day in China

Following the stepped up efforts to protect minors from the internet’s risks by the Chinese Government, TikTok created a new app for its younger audience. The new app, called Xiao Qu Xing or “Little Fun Star,” offers a personalized feed of short videos in areas ranging from science to literature and art history.

Users are allowed to like clips but not upload or share them. This youth mode limits daily usage time to a maximum of 40 minutes for those aged under 14, while banning them from accessing the app from 10 p.m. to 6 a.m. With this new set of restrictions, Chinese authorities want to tackle addiction to online devices.

Link: https://www.bloomberg.com/news/articles/2021-09-20/bytedance-s-new-tiktok-for-chinese-kids-sets-strict-user-limits

 

China passes sweeping data privacy law, to go into effect Nov. 1

The law, which is one of the most stringent in the world on personal data security, will make it more difficult and expensive for Chinese tech companies to acquire and utilise customer data. The complete wording of the final law has yet to be disclosed, but according to Xinhua, it will provide users the ability to turn off targeted advertising. It could lead to a ban on tailored advertisements.

Link: https://www.cnet.com/tech/services-and-software/china-passes-sweeping-data-privacy-law-that-goes-into-effect-nov-1/

 

You Can Now Use All Links on WeChat!

Tencent said on Friday that users can access external links in the one-to-one chat scene after upgrading to the WeChat latest version of ,  because Chinese industry authorities ordered internet leaders including Alibaba and ByteDance to open up their platforms to each other.

On the premise of ensuring information security, users can access external links in the one-to-one chat and it will also establish an external link complaint portal, which allows users to report illegal external links. Continue to develop group links and provide users with discretion but now Tiktok and Taobao can not jump directly in the service account article.

Tencent also stated that it will actively cooperate with other internet platforms to jointly implement the special guidance of the Ministry of Industry and Information Technology, explore the technical possibilities of smoothly using WeChat services on other platforms, and achieve further interconnectivity.

Link: https://mp.weixin.qq.com/s/2BPntlnbCy-OLeyXzyUSHw 

 

You may also like