china update Archives

China Weekly News Roundup

May 24, 2022

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

Latest News from China

April 20, 2022

China Online Advertising Market Insights 2022

In 2022, 43% of advertisers in China expect to increase spending on digital marketing,
The top online advertising media are:
- E-commerce 47%,
- a short video (16.6%)
- News (16.6%)
In 2021, short video advertising continued to expand at a rate of over 31%.
Platform traffic, which accounts for 74% of a brand’s advertising budget, is the most important KPI.
70% of advertisers indicated they’d pay greater attention to the platform’s ability to innovate.
90% of advertisers feel that integrated marketing is becoming increasingly crucial.
After short videos, live broadcasts, and newsfeed ads, SEM is predicted to become the primary online advertising channel by 2022. (since 2019, Tencent, and Alibaba set up independent search engines to strengthen the integration entrance function of each service module).

Content ecology search ads are search ads on content platforms such as Toutiao, Douyin, Xiaohongshu, Zhihu, etc. SEM are search ads on search engines such as Baidu and Sogou. E-commerce ecology search advertising includes search ads on e-commerce platforms such as Taobao Search, JD search and Pinduoduo search. Social ecology search advertising includes search ads on social platforms such as Weibo and WeChat

Link: https://www.chinainternetwatch.com/31087/online-advertising-market/

‘The NFT Thingy Is Starting to Burst,’ Warns Nassim Nicholas Taleb

The NFT thingy is starting to burst. All you need is higher interest rates for things that make no sense to start making no sense.

“Jack Dorsey Tweet NFT Once Sold for $2.9 Mil, Now Might Fetch Under $14K”.

The origins of speculative investments like NFTs are ultralow interest rates and market pandemic monetary policy.

The market has been anticipating the end of the market epidemic monetary policy of ultralow interest rates and cheap money for some time. Taleb appears to be saying that much of the cheap money has gone into speculative investments like NFTs and that this trend is ending. “People have lost their minds,” C.Z. Zhao, the billionaire creator of Binance, remarked of the $69 million auctions of an NFT piece of artwork in 2021.

Others like the recipient of that $69 million fortune, an artist known as Beeple, also worried that NFT art was in a bubble but believe the technology is going to outlive that.

He said that the internet, in its nascence, was also a bubble—and it eventually burst.“But it didn’t wipe out the internet,” he said. “And so the technology itself is strong enough where I think it’s going to outlive that.” A whopping $44 billion was spent on NFTs last year, Fortune previously reported.

Link: https://fortune.com/2022/04/16/nft-thingy-starting-burst-warns-author-the-black-swan-predictor-2007-2008-financial-crisis-nassim-nicholas-taleb-cryptocurrency/

WeChat Announces Progress on Fix for Enforced Following of Accounts While Ordering

When consumers wish to prebook, queue or order from an online menu in a restaurant, one of the most popular methods is to scan a QR code to gain access to the menu.
Users are often obliged to follow the restaurant’s official WeChat account as a result of this, with no option to opt-out. Many people have viewed the approach as a violation of consumers’ rights.
The Shanghai Consumers Council concurred and proposed that little if any, personal information be carried through when clients scan to order. Furthermore, eateries should provide manual ordering choices as well.
It sent a notice to official account developers, asking them to look into a problem in which customers are obliged to use official WeChat accounts while ordering through QR codes at restaurants. The platform is reminding developers, according to the letter, to check for any associated issues and to guarantee that the client experience is overall positive.

Link: https://pandaily.com/wechat-announces-progress-on-fix-for-enforced-following-of-accounts-while-ordering/

The End of Celebrity Marketing in China?

Celebrity marketing events in March 2022 fell by 50.9% compared to the same period last year, according to a recent analysis by Shiqu Insight Engine.

Co-branded marketing and new product marketing, on the other hand, increased by 91.3% and 57.6%, respectively, while sports marketing increased by 6.6 times. Brands that fail to respond swiftly enough to their ambassadors’ inappropriate behaviour are also caught in the crossfire.

Link: https://jingdaily.com/celebrity-marketing-traffic-stars-decline/

Consumers Hope to Get Rewards from the Brand for Loyalty | 2022 Digital Trend Report

Cheetah Digital, a marketing platform company, and consultancy, a consulting firm, jointly released the 2022 digital trend report.

The report shows that consumers want their loyalty to the brand to be recognized.

The study investigated the different reasons why consumers like brands and found that 78% of consumers like a brand because it rewards their loyalty.

In addition to being rewarded for their loyalty, consumers also believe that their favourite brands provide a consistent customer experience (80%).

About a third of people feel frustrated when they receive news that they cannot recognize their shopping or loyalty history.

Similarly, data trust is also important. Consumers surveyed (74%) claimed to have a favorite brand because it uses their data in a way that makes them feel comfortable.

Knowing this, marketers are taking various approaches to try to build trust in their data privacy protection, including a commitment not to sell information and seeking informed consent.

51% of consumers like a brand because they can communicate with the brand quickly and effectively.

Personalization is important for understanding consumer preferences. When consumers receive irrelevant content or offers (49%), when the message does not reflect their needs (41%), or when the brand fails to meet the needs of consumers after collecting information (35%), people are frustrated.

Consumers seem to be particularly open to certain areas of brand information.

Respondents said they either received the right amount of information or were even willing to receive more information about loyalty programs (71%), discounts (70%), VIP offers (68%) and brand value (65%).

Link https://mp.weixin.qq.com/s/jXgbVdVDV7V54P5nmN9YWw

Elon Musk Makes Offer to Buy Twitter

On April 4th, 2022, Elon Musk announced that he had purchased 9.1% of Twitter. The news that the world’s richest man was now (briefly) the largest shareholder in his preferred social media platform. However, later on, he changed his idea to purchase the entire company. He offered $54.20 a share, valuing the company at roughly $43 billion.

Employees at Twitter are worried about Elon Musk’s takeover bid.

Things were a little different within Twitter. The news that Mr Musk wanted to buy the company and reshape it in his image shook much staff over the last ten days.

Musk wants to ‘unlock’ Twitter’s potential for free speech

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe,” Mr Musk said in a letter sent to Bret Taylor, the chair of Twitter’s board, on Wednesday. “I believe free speech is a societal imperative for a functioning democracy.”

Mr Musk has long used Twitter to slam critics, mock Tesla short-sellers, and suggest extravagant space exploration plans. In addition, he has distributed false information concerning the pandemic. In a tweet in 2018, he pondered about taking Tesla private and falsely stated he had secured finance for the transaction, for which he was fined $40 million by the Securities and Exchange Commission.

According to the letter written to Twitter’s chair, if Mr Musk’s buyout offer is not approved, he will “need to reconsider my position as a shareholder”.

Link: https://www.nytimes.com/live/2022/04/14/business/elon-musk-twitter

Secondhand Luxury Is Key for China’s First Time Buyers

In 2021, Chinese consumers are expected to spend $73.6 billion on luxury goods in domestic stores, up significantly from $53.6 billion in 2020 and nearly double the $36.9 billion spent in 2019.

Because Chinese younger people, mostly millennials and Gen Zers, are increasingly inclined to purchase secondhand luxury products, there could be a secondhand luxury boom in 2022.

The main reasons are as follows,

With international travel still unlikely for many consumers and viruses threatening offline retail, young consumers may turn to e-commerce for the convenience factor.
There are always long waits in queue to get a limited edition or it requires to purchases a package deal in the offline shop to get a brand-new product. While the younger generations are not that patient, they prefer to get what they want right now.
The price hicks in those luxury brands like LV, and Chanel drives more consumers to the secondhand luxury market.

The issue in this sector right now is that there is no clear market leader. As a result, market challenges such as authentication and fakes continue to exist.

International luxury resale platforms aiming to get into the Chinese market will also need to think about more differentiators to help them compete with domestic rivals. Global players can compete in two ways: by stressing their ability to source from other countries and by boasting about their authentication credentials.

After all, the greatest service should be the deciding element for customers in this luxury resale e-commerce site.

Link: https://jingdaily.com/secondhand-luxury-is-key-for-chinas-first-time-buyers/

WeChat Menu Basics: Introduction for Brands

March 16, 2022

What is WeChat Menu?

Aside from articles, one of the most important functions that companies can use on WeChat is the Menu – it’s always-on content that brands can use in a variety of ways.

The WeChat menu is where users will search for key information, such as your company’s contact details, brand story, key products, product line introduction, and more. They can simply access these menu tabs when they click on your WeChat official account.

To begin with, the WeChat menu is similar to the menu on a website, and you can replicate or mirror the menu from your official website by taking into account which information are the most important for your China’s audience. As you will see in this article, a well-crafted menu by directing the users to relevant tabs can increase sales and increase lead generation. Menu tabs can be updated on regular basis and some can lead to ongoing events or campaigns.

WeChat Menu Backend

Menu – More Important than One Thinks

According to Digital Luxury Group, of all the engagement activities carried out by followers, Menu Clicks ranked the highest of all types of engagements with official accounts at an astounding 73%. This might be a shock for many brands that mainly focus on producing amazing weekly content but often neglect regular updates of their WeChat menu. Users tend to engage with brands on WeChat when they are looking for specific types of information or services, which are generally accessed through the menu tabs therefore menu serves a different purpose than weekly articles.

WeChat Menu Stats

Why Use The WeChat Menu?

Best first impression: When a user clicks to follow your account, they receive an automatic welcome message. You can edit and craft this message by using WeChat links directing to menu tabs, e-shops, contact forms, etc. Make sure it’s concise and not too long.

Smoother user journey: The menu helps users quickly find all FAQ (frequently asked questions) information. From the menu, they should be able to access e-commerce (if applied), customer service, and brand introduction. This is something that WeChat users are used to and automatically check when following a new account.

Stay up-to-date: Look at the menu as your information hub for the Chinese market as it’s quite possible that your Chinese customers will check your WeChat menu more often than your website. Carefully focus on the most important tabs like brand introduction, current product catalog, contract details page e.g. one of the biggest mistakes we’ve seen it’s uploading contact details as image, therefore, emails or phone numbers can’t be copy-pasted causing inconvenience for potential customers.

Gain new followers: Although the menu is only visible to users who visited your WeChat account and won’t necessarily help with the initial account awareness when you manage to hook your visitors with the menu, you can lead them through a rich brand experience journey. That’s why investing more time and effort into creating menu content is crucial.

WeChat Menu Backend

WeChat Menu Montagut

Who Can Enable the Menu?

The menu function is accessible by two types of accounts:

– Verified subscription accounts,

– Service accounts.

The good news is that all overseas companies applying for a service account can enable a menu on their official WeChat account. The menu can be set up and edited using the desktop official account WeChat backend.

Menu Tabs

From the technical point of view, the menu can consist of a maximum of three columns and each can have a maximum of five sub-menus. Your menu can have a total of 15 tabs. In special cases, if you need more submenu tabs, there is also an option to create a menu tab showing a collection of related articles for more advanced WeChat users. You can contact us to find out more.

However, we don’t recommend setting up a maximum amount of many tabs as it might be slightly overwhelming for the users and make it hard to find the information that they are looking for. Remember that the core of the WeChat menu is its functionality. Hence, 8 or 9 tabs is ideal.

There are a few options to build your menu:

Sub-menu content

Send a Message
- Article,
- Text message,
- Image,
- Audio,
- Video.
Jump to Web page:
- WeChat article – best user experience as the page loads quickly, and beautiful posts can be created.
- External website – not recommended since if the website is hosted outside of China, it will be extremely slow. If it is in English, it will be discouraging to readers.
Jump to Mini Program

Jump to ‘WeChat Article’ is the most user-friendly solution.

WeChat Menu GB WeChat Menu PG

How to create a menu?

Step 1: On the top left of your public account page, you’ll notice a “menu” icon appear after you’ve created your service account or had your subscription account certified.

Step 2: Create three first-level menu items and second-level sub-menu items for each of them.

Each menu column name can consist of up to 4 Chinese characters or 8 letters

Each menu tab name can consist of up to 8 Chinese characters or 16 letters

Step 3: Now it’s time to start creating content for your menu. Click on each item to create content when users click on each tab. As mentioned above you can ideally link it to either one of the messages you just produced, an existing article, WeChat mini program or an external webpage (make sure the webpage displays well on mobile and fast enough for WeChat user standards).

Sometimes it can take up to 24 hours for a new menu to appear on your account. Be patient!

Conclusion

Here are the important things to know about the Menu:

WeChat menus are becoming one of the most clicked types of content in the WeChat official account ecosystem.
They are your brand information hubs for the Chinese market.
Brands can set at most 3 menu columns with each menu column set a max of 5 sub-menus. In total, a brand has 15 sub-menu tabs to leverage.
WeChat’s official account backend allows tracking follower behavior to understand the click rate of each menu. We will cover WeChat menu optimization and other advanced options in our next post.

Read more about in the second part of this article: WeChat Menu Basics: How to Optimize WeChat Menu?

Are you looking for setting up your very own WeChat Menu? 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