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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/

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.

10 Fashion Trends on Douyin You Need to Know Today

September 23, 2022

The speed of change in China is transforming all aspects of society, including the emergence of new cultures, fashion styles, aesthetics, and living standards. Social media has quickly replaced traditional means of brand interaction and shopping in China. Every day, people are exposed to new shopping trends, and KOLs are crucial to setting these trends.

With 70.2% of the country’s social media users, Douyin, China’s version of TikTok, is one of the most well-liked social media platforms in China. The audience consistently follows any new fashion trends that become popular on Douyin. Today, surely it’s the best platform to observe new emerging trends among Chinese Gen Z and youth.

A few weeks ago, we shared with you the latest post on:

🔥 Douyin (China’s TikTok) Statistics 2022 [UPDATED!]

Let us share with you the key findings from the ‘2022 Douyin E-commerce Top Ten Trends and Life Trends Report‘ published by Douyin. These are the top fashion trends on Douyin that have drawn so many users in 2022. Explore them and perhaps experiment and try to include them in your China strategy.

Before we dig into it, make sure you check How Douyin is Different From TikTok as these two are not the same.

Trend One: Stay away from cities

Glamping has emerged as one of the most talked-about topics in 2022, with 42.2% of Douyin users citing outdoor activities as a way to unwind. For example, the younger generation that is interested in fashion is accustomed to sharing their glamping attire and experiences on Douyin. There are currently 1,300 million people who travel and engage in outdoor activities. The outdoor market is predicted to generate 240 billion CNY in profit by 2025. This demonstrates the potential market for outdoor products in China.

Fashion Trend Two: Street Shooting

The new Generation-Z is excellent at finding those off-the-beaten-path shooting locations. Think a small shop or a narrow street close to home. They enjoy taking pictures in the hot spots to document their sense of style and post them on Douyin. In order to display confidence and a positive outlook on life, people are more interested in street photography and fashion pairings. Over 122 billion streams are focused on the street shooting on Douyin. As a result of this development, 30.6% of Douyin users are discovering new stores in their daily lives and sharing their outfit pictures taken from there. For this street photography trend, 63% of those individuals favor a simple outfit, followed by modern style (43.6%) and romantic style (42.9%).

Fashion Trend Three: Staycation

Staycations are now a popular option for the younger generation in China. Therefore, they want clothing that is stylish when they go out and comfortable at home. During the weekends, 27.4% of Douyin users prefer to stay home. Within that group, 89% of people are wearing homewear, and more than 45% have more than three different home wears. Feeling comfortable and casual has become a hot topic for the staycation lifestyle.

Fashion Trend Four: Sustainability

The younger generation has begun to show a greater concern for the environment, and sustainability is currently on trend. 29.9% of Douyin users pay attention to environmental protection. They are in favor of living sustainably and are ready to pay more for those goods. The new generation is becoming more and more accustomed to minimalism. Green fashion is a new trend that makes use of sustainable materials and natural plants.

Fashion Trend Five: China-chic

The new generation has a stronger sense of patriotism than ever before, which has increased the local culture’s visibility. Gen-Z believes that local culture and brands should become the new standard in fashion and highly recommends them in Douyin. 30.8% of Douyin users support national goods and value Guochao culture. Users of Douyin favor Chinese- and Guochao-style clothing for a variety of reasons, including:

People are recognizing traditional cultures.
Combining traditional and modern elements looks good.
A popular global fashion trend is emerging from a Chinese design.
Affordability and high quality

As Guochao draws more attention, premium designs start to emerge in order to satisfy the young generation’s demands for fashion.

🇨🇳 We covered guochao recently on our blog.

Fashion Trend Six: Office Outfit

Gen-Z likes to express their personality in their daily life through working outfits. The videos about work attire have been viewed more than 2 billion times on Douyin. 35.3% of Douyin users believe people should pay attention to what they wear on professional occasions. Sales of professional attire are predicted to grow by 4-5% annually until 2025 when they will total 167 billion CNY. The simple yet sophisticated design is now the norm for business settings.

Fashion Trend Seven: Retro

Users have watched videos on vintage style more than 11 billion times. The nostalgia wave has once more broken, thanks to Generation Z. The new standards for this new trend are now Hong Kong and Y2K fashion. Therefore 32.7% of users on Douyin are becoming more and more interested in nostalgia, collecting antiques, and occasionally willing to try out vintage clothing. The 80s and 90s fashion trends have been revived once more.

Fashion Trend Eight: Street Fashion

The new generation wants to express themselves in a novel way by fusing music, skateboarding, and other subcultures. 30.4% of Douyin users support using street culture as a form of self-expression. Street fashion found a new market niche thanks to rap, hip-hop, and new fashion brands among the younger generation. For example, the most popular theme for street fashion in 2022 will be oversize. Newer increasingly drawing more and more attention to it.

Fashion Trend Nine: Fitness Outfit

With everyone becoming more concerned about their health, gymnastics-related topics have grown in popularity, gathering 15.8 billion views on Douyin. Working out while wearing a cute outfit has become mandatory for the younger generation. 45.2% of Douyin users recognize the importance of their health and insist on exercising every day. Fitness topics are currently very popular, especially when it comes to permeability and other useful features. Hence, the technologies of the materials, such as keeping warm, windproof, quick-drying, shaped, and so forth, have advanced quickly as well.

Fashion Trend Ten: Manga

The younger generation doesn’t hesitate to express themselves; they want to flaunt their comic book attire in public. 10.8% of Douyin users are open to accepting JK and are interested in the ACGN culture. Similarly, more than 86 billion times have played Lolita, cosplay, or other related games on Douyin. The hottest topic in the dimension world will soon be “genderless.” The genderless fashion trend, which combines sweetness and masculinity, has gained popularity since 2021.

Douyin Fashion Trends – Conclusion:

In the era of the Internet, consumers are playing an active role in creating new trends. Social media platforms also set the bar for fashion statements. To stay relevant with peers, people follow trends on social media sites like Douyin on a daily basis.

Above all, understanding the popular fashion trends among potential customers is a great way to comprehend them and their needs. If you already have your Douyin strategy in place check out our article on advertising on Douyin to reach even more consumers.

If you wish to know more about Douyin or other marketing techniques in China, 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