Examining Potential: Evaluating China’s Most Recent Advances in Landscape

February 19, 2024
  1. The unique way that Generation Z in China is celebrating Chinese New Year
  • hanfu, prayer bracelets, and a dragon frenzy

Traditional buying habits are changing due to the rise of Generation Z. Traditional gifts are being avoided by younger shoppers. They are choosing, instead, more meaningful and customised things that speak to their unique identities.

  • Travelling, but not home

There will be 1.8 million passenger trips per day on average into and out of the Chinese mainland, which is about 3.3 times more than there were the previous year. The majority of these trips were made by people going back to their hometowns. But a growing number of China’s youth is choosing to diverge from this custom, and is instead opting to travel.

  • Balancing red packets and financial wellbeing

As members of China’s Gen Z stand at the crossroads of tradition and modernity. They are not abandoning the customs passed down through generations, but are instead redefining them to resonate with contemporary realities and modern demands of financial and emotional well-being.

LINK: https://jingdaily.com/posts/how-china-s-gen-z-is-doing-cny-differently

  1. Macau welcomes Galeries Lafayette.

The chain’s fourth location in China has opened, Galeries Lafayette, Macau. By 2025, Galeries hopes to have ten locations in China thanks to this new partnership. The pandemic delayed development plans, which had called for the opening of branches in Macau and Chongqing for late 2022.

Galeries Lafayette is refocusing on luxury brands with this new joint venture, with the goal of sharing “a certain vision of the French art of living.”

LINK: https://daoinsights.com/news/galeries-lafayette-lands-in-macau/

  1. From Hangzhou to Harbin: Alibaba’s Fliggy sets out on winter road trip
  • Fliggy, an online travel agency owned by Alibaba, launched a travel campaign by capitalising on the winter travel trend.
  • Fliggy Bus made the entire journey to Harbin while offering gifts and coffee along the way. In order to generate interest in snow and ice tourism, Fliggy assumed the role of explorer for this campaign.
  • Thanks to deliberate government investments in the industry, ice skating and snowboarding are two of the most popular holiday pastimes for upper-middle class consumers.
  • Travelling pop-ups are a great marketing tactic for a spate of brands, not just for travel or outdoor specialists. Non-travel brands can partner up with a travel booking platform or outdoor clothing brand to help provide offline activities to consumers

LINK: https://daoinsights.com/works/from-hangzhou-to-harbin-alibabas-fliggy-set-outs-on-winter-road-trip/

  1. WeChat E-commerce Amplifies with Video Account Surge
  • The 2023 Gross Merchandise Value (GMV) figures are projected to hit between 120 and 150 billion yuan (vs 50 billion yuan in 2022). However, the sector’s scale remains modest compared to giants like Alibaba, JD.com, Pinduoduo, Douyin, Kuaishou, whose GMVs have breached the trillion yuan mark
  • A significant development is Tencent’s integration of video account e-commerce with its WeChat advertising system, allowing for video account livestreams to be promoted within Moments. This new feature opens up fresh avenues for traffic acquisition, potentially boosting conversion rates by shortening the consumer journey from ad click to purchase.
  • The integration extends beyond advertising, as various e-commerce formats within the WeChat ecosystem, such as social commerce and mini-program commerce, are linked up with video account e-commerce. This strategic move positions video accounts as a foundational infrastructure within WeChat e-commerce, facilitating a seamless flow of both public and private domain traffic within the social network.

LINK: https://www.chinainternetwatch.com/43528/tencent-video-account-ecommerce/

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Exploring Possibilities: Assessing the Latest Advancements in China’s Industry

January 16, 2024

1.Maths professor recognised as top content creator by Bilibili

  • Mathematics professor Song Hao gains fame on China’s Bilibili platform, akin to YouTube.

  • He got 7.2 million subscribers and 140 million views on certain videos, but recognition as one of Bilibili’s Top 100 Channels of 2023 is attributed to his “Longest Viewing Time.”

  • Hao’s award reflects the highest cumulative hours of viewing since 2021, emphasizing Bilibili’s unique approach to honoring creators based on expertise, influence, and innovation.

  • Bilibili intentionally rewards creators with clear specialist content areas, aiming to distinguish itself from platforms with generic content such as Douyin.

LINK:

https://daoinsights.com/news/maths-professor-recognised-as-top-content-creator-by-bilibili/

https://mp.weixin.qq.com/s/p7Vacoa9aTscYRFNKD4bqw

 

2.China’s Gen Z wants ‘lazy health,’ budget lifestyle trends in 2024

Whether it is due to an intensive work schedule, geographical distance, or social isolation, China’s Gen Zers are experiencing a so-called “friendship recession.” Their shopping habits and hobbies have evolved in response to mounting social and economic pressures. Below are five of the key trending terms on the platform that capture Gen Z users’ mentality entering the new year.

 

  • Self-love (自恋浪漫主义):

Young Chinese are learning to embrace their flaws and live on their own terms.

  • Value-for-money lifestyle (性价比生活):

Chinese young consumers are adopting a more rational approach to their consumption.

  • Lazy health (懒系健康):

Young people are opting for low-cost and low-effort methods to maintain their well-being.

  • Stress-relief worship (释压崇拜):

Young workers have been relieving their stress by volunteering or meditating at temples.

  • Rebuilding neighborhoods (重构“多维”附近):

As Chinese youth experience isolation in urban environments, there’s a growing desire to seek connections within the community and build relationships with their neighborhood.

LINK: https://jingdaily.com/posts/china-gen-z-lifestyle-trends-soul-2024

 

3.Tsingtao brews up new ice cream sub-brand

  • The Chinese beer brewery Tsingtao has just dropped a beer-flavoured ice cream. At the helm of the product launch is Tsingtao World, China’s first beer museum situated in the company’s birthplace in Qingdao’s Old Town.

  • Tsingtao World has been developing beer-flavoured ice cream for 10 years and has even been selling it on-site for some time. Now they finally going to be rolled out nationwide under the new brand name Pi Ka Bing “啤咔冰”,

  • There are also a pair of sweet, fruity twists to the main ice cream flavours, like Original Beer with Vanilla and Buttermilk and White Beer with Cherry Blossom and White Peach.

LINK: https://daoinsights.com/news/tsingtao-brews-up-new-ice-cream-sub-brand/

4.Michelle Yeoh stars in a Chinese New Year short film for Lululemon

  • Academy Award-winning actress Michelle Yeoh joins eight Wing Chun dancers to herald the arrival of the Spring season in Lululemon’s short film, Be Spring.

  • The film celebrates the arrival of Spring through the concept of wellbeing, encouraging everyone to find their eternal spring in their everyday lives.

  • The 61-year-old star and the Wing Chun dancers are clad in Lululemon’s Lunar New Year capsule collection that draws inspiration from dragon scales, a timely nod to the year of the dragon.

  • This campaign gained great popularity on China’s social media like RED, where Lululemon surged on the top when searching for Michelle Yeoh.

  • This campaign also received waves of positive reactions from social media users, it shows lululemons focuses on Chinese kungfu culture.

LINK: https://cnalifestyle.channelnewsasia.com/style-beauty/michelle-yeoh-lululemon-chinese-new-year-382926

5.What is the ‘Metallic Girl’ fashion trend in China?

  • Metallic Girl (五金女孩) refers to women who adopt a metallic aesthetic, and in less than three weeks, this trend has garnered 2.2 billion views on Douyin and 22 million views on Xiaohongshu. It has also claimed the top spot in eight Douyin hot topic rankings so far.

  • Incorporating elements such as patent leather, glitter, sequins, glossy satin, golden eyeshadows, or anything with a metallic or shiny quality — Metallic Girl brings a touch of brightness to the normally dull and muted fall wardrobe, aiming to elevate both the outfit and the wearer’s mood.

  • What makes China’s Metallic Girl fashion trend distinctive is its origin; it’s not an organic phenomenon, but rather a trend manufactured by Douyin E-commerce to generate original content and attract more traffic to its platform.

LINK: https://jingdaily.com/posts/what-is-metallic-girl-fashion-trend-china

6.The total value of goods sold through WeChat’s video Channels nearly tripled year-on-year in 2023

  • The total value of goods sold through WeChat’s TikTok-like service nearly tripled year-on-year in 2023

  • the key figure was revealed at WeChat’s annual flagship event, but creator of the all-in-one app, Allen Zhang, was absent from the event again for three years and director-level executives also haven’t attend this year.

  • Tencent did not disclose absolute figures. Livestreaming e-commerce orders completed on Channels, WeChat’s in-app short video feature launched in 2020, increased by over 244%, the company said.

  • Tencent allowed content creators to charge viewers for watching certain videos last year, and has now expanded that to allow creators with at least 10,000 followers to set up members-only areas, where they post content only for paid subscribers.

LINK: https://www.yicai.com/news/101954484.html

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What’s New In The Chinese Market?

July 26, 2022

Xiaohongshu cashes in on tourism by setting up a travel agency

Puzhen Xiangli, a travel agency run out of Shanghai, has been established by Xiaohongshu. About 64% of China’s regular wanderlust users now start their journeys on the platform. Since Gen Z travelers prefer Xiaohongshu over more established online travel agencies like Ctrip and Fliggy, this popularity has paved the way for Xiaohongshu to further challenge established market players. 

Due to Airbnb’s exit from the market, there is now more room for domestic competitors to enter the fray. However, Xiaohongshu’s interests extend beyond homestay. Over 16 million views have been generated by platform searches for the keyword “Travel” so far, which is eight times more views than searches for the keyword “Homestay.” This shows that there is still untapped market potential for the platform to tap into.

Link: https://daoinsights.com/news/xiaohongshu-cashes-in-on-tourism-by-setting-up-travel-agency/

ByteDance debuts the first metaverse-like social app, Party Island

After the rise and fall of the formerly popular proto-metaverse social app Zheli, Chinese tech giant ByteDance has stepped up to take on the challenge of social networking with its highly anticipated social app, Party Island, which, according to Gamelook, a website focusing on the Asian games market, went live for public testing on July 13. 

With the help of their personalized avatars, users can interact with one another in the three-dimensional virtual space; meet up; hang out, and even go to events like concerts and movies with their virtual peers. The app’s access to a vast media library within the ByteDance empire, including live streaming events, films, and TV shows owned by Douyin and Xigua Video, adds to its appeal. 

This enables the app to provide its users with a rich digital experience that will amuse and engage them. While their resemblance to hot technology has largely won over the audience, it appears that the feature that enables a distinctive online experience and meets the social needs of today’s young Chinese is what will really pique user interest. The new innovation from ByteDance would revolutionize China’s online social networking scene if it goes off without a hitch.  

Link: https://daoinsights.com/news/bytedance-debuts-first-metaverse-like-social-app-party-island/

China’s “Silver Economy” Is Here To Spend

The 2022 product catalog for China has been encouraged to include clothing and other items for elderly people by the Ministry of Industrial and Information Technology. This is consistent with the Chinese Community Party’s 14th five-year plan, which was released in 2020 and has a section devoted to enhancing government support for the well-being of senior citizens. In comparison to their Gen Z and Millennial consumer counterparts, the “new” older generation has greater purchasing power and more free time, making them more readily available for discretionary spending. 

We wrote about this here >>> China Trend: Silver Generation

Link: https://jingdaily.com/china-silver-economy-government-support/ 

Brand zone search

It was created to strengthen the demand for building brands. Users actively look up brand terms to learn about the brand, comprehend the consulting services offered by the brand, and enter brand official account message templates, mini programs, and other private domains for information gathering and conversion. WeChat plans to develop more advertising options for search.

More details about WeChat search and brand zone in our article: A Quick Guide To WeChat Search

Link: https://mp.weixin.qq.com/s/SkduovJwM4Up0Nj9JNTw2A

Douyin, China’s TikTok, tests food delivery, bringing ByteDance into a market dominated by Meituan and Alibaba

In order to compete with market leaders Meituan and Alibaba Group Holding, ByteDance’s Douyin, the Chinese version of TikTok, is once again entering the food delivery market.

Some restaurants in specific cities, such as Shanghai, whose economies were severely impacted by a resurgence in Covid-19 this year, now offer a delivery option on their Douyin channels.  However, eateries are required to employ their own delivery personnel or use external delivery drivers. Market leaders Meituan and Alibaba’s Ele.me, on the other hand, are well known for their armies of delivery drivers, who are a common sight on Chinese city streets.

To gain market share, however, one must alter user preferences for the apps that have proliferated throughout many Chinese people’s digital existences. Meituan and Alibaba made up 69 percent and 26 percent of the market, respectively, in 2020. As a result, ByteDance is still facing a great challenge. In order to gain market share, marketers believe Bytedance should think about how to set itself apart from the competition and work on its pricing strategy. 

Link: https://finance.yahoo.com/news/douyin-chinas-tiktok-tests-food-093000424.html

Tencent makes a move to turn WeChat’s short-video function channels into a money pot through ads and e-commerce tools.

The Shenzhen-based company unveiled a new e-commerce tool on Thursday to build online stores on Channels, the quick-video and live-streaming platform inside the multipurpose app WeChat. This tool simplifies the procedure for merchants to list products, sell them, and collect payments.

The e-commerce tool was announced shortly after Tencent Monday added video ads to its Channels feeds, enabling users to directly shop through an ad and share it with friends on WeChat.

WeChat’s video service has added new users rapidly over the past six months, according to data from the Chinese analytics company iiMedia Research, thanks to concerts and entertainment content that makes use of Tencent’s music division’s resources.

Link: https://www.yahoo.com/now/tencent-makes-move-turn-wechats-093000560.html

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China’s Gen Z As Luxury Consumers

May 10, 2022

From Balenciaga to Gucci and Louis Vuitton, the Chinese market has become the most crucial driver of growth for European luxury brands. Nothing is more important for success in the Chinese luxury industry than capturing the hearts and minds of Gen Z. These are the Chinese consumer generation born after 1997.

Chinese Gen Z is growing as a diverse customer demographic that global brands want to understand more about. The luxury industry, in particular, given that China accounted for more than a third (32%) of the global market for luxury goods in 2020. It’s expected to surpass the US to become the world’s largest market for those products in the next five years.

Traditionally, luxury companies relied on an older, established, and affluent buyer base, with a minority of younger buyers keen to express wealth and status. While this buying pattern persists today, the luxury market has become significantly more democratic, younger, digital, and global in the last three decades, with luxury products considered not only as a method to indicate wealth but also as a way to represent one’s particular style.

What Makes China’s Gen Z Such a Good Target Group for Luxury Brands?

For luxury brands, Gen Z is a dream generation. They consider themselves to be “personal brands,” and spending up to nine hours a day online creating social media material qualifies them as expert brand builders. Many are familiar with crypto and NFTs, hastening a quick transformation in new luxury categories that earlier generations struggled with.

According to McKinsey, Gen Z, those born between the late 1990s and the early 2010s, represent 15% of China’s population. That equates to more than 210 million individuals. They grew up in China amid an unusual period of rapid social and economic development. Recently, Chinese brands have benefited from the country’s growing sense of confidence – and Generation Z may be the most confident of all Chinese generations.

This confidence translates into a more critical and outspoken approach toward foreign fashion labels. As a result, this generation may have a significant impact on the Chinese fashion and luxury sector.

They are brand sensitive, hungry for uniqueness, and wealthy, ticking all the boxes that luxury brands set out to offer. Winning over these key actors in high-end purchasing is the first step for global luxury brands to flourish in China.

What Works With Gen Z?

The growing influence of millennial and Generation Z consumers in the luxury business can be seen in how brands communicate their message and who they hire to speak it for them. WeChat, which is a one-stop platform that allows users to interact with friends and family, stay up to speed on the latest news, engage with one’s favorite companies, and pay for a variety of goods and services, also plays an important part in these conversations and sales.

For luxury brands, millennial and Gen Z spokespeople, brand ambassadors, and creative directors are becoming the standard. This is especially true in China. Gen Z celebrities such as Wang Yibo (born in 1997), Cai Xukun (born in 1998), Fan Chengcheng (born in 2000), and Ouyang Nana (born in 2000) are fronting advertisements for Chanel, Prada, Givenchy, and others. However, simply being present on social media, hiring young brand ambassadors, and dressing up popular celebrities is insufficient to reach and influence Gen Z customers.

For starters, like with millennials, rigid premium brand loyalty is virtually non-existent among Generation Z customers. This is especially true in China, where according to McKinsey & Company, 52% of consumers born after 1990 will purchase luxury goods other than their “favorite” brands.

Gen Z & Luxury – Do’s & Dont’s

The most common mistake in attempting to attract Gen Z is to appear as though a brand is particularly young or funky even if it does not fit the brand. “Young collections” are a good example of this. Many established fashion businesses attempted this and failed. When a company isn’t relevant to Generation Z as a whole, creating a purportedly youthful collection and hoping young customers will take the hook seldom if ever, works. To be relevant to Gen Z, brands must be present on platforms such as Bilibili, Douyin or Xiaohongshu. This is where they can better engage with the audience and create trending articles to attract the right audience. 

Learn more about What is Bilbili? and the main differences between Douyin and TikTok.

Generation Zers, on the other hand, value authenticity due to their easy access to information. People, in fact, expect brands to be brutally honest and truthful. As a result, many incumbent brands appear out of reach, inauthentic, and remote to younger audiences. A new, honest, inclusive, and spontaneous method of communicating with Generation Z is required. 

The implication for luxury brands is to be brave and unapologetic in their position for something. Clear values are what Generation Zers look for in brands. As a result, brand equity, brand positioning, and brand narrative are more important than ever. This might be putting many incumbent businesses at a considerable strategic disadvantage. 

According to reports, some of the most compelling reasons for Generation-Z customers to purchase personal luxury products in China in 2020 are:

  • Signaling social status – 6%
  • Gift – 20%
  • Identity statement – 24%
  • Uplift of confidence – 45%
  • Pursuit of fashion – 61%
  • A reward for self – 68%

Conclusion

Millennials (ages 26 – 41) are huge, but China’s Gen Z (ages 10 – 25) might be even bigger. As a new generation of consumers emerges, brands’ strategies and marketing must evolve to cater to this new demographic. This indicates that brands must be honest, truthful, and inclusive in order to reach out to the next generation, in addition to being trendy and developing products for the younger age.

Massive developments in the digital age indicate that generational divisions are narrowing, for better or worse. If businesses want to flourish and prosper in today’s ever-changing world and create a business in China, we believe they must discover more relevant ways to reach consumers of all generations. Check out our piece on China’s eldest consumers – Silver Generation. 

If you wish to know more about Gen Z consumers or need assistance 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 at contact@thewechatagency.com.

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