Learnings 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

China News Roundup

January 25, 2022

Shopify and China’s JD.com team up to capture cross-border sellers

JD.com, a major Chinese online retailer, has partnered with Shopify to let global firms harness China’s massive desire for imported goods, as well as Chinese merchants, sell internationally:

The first part of the deal will put the JD-Shopify alliance in direct competition with Alibaba (which counted 35,000 international and more than 6,000 brands entered China via Alibaba)
JD’s account creation process will take 4 weeks instead of 1 year for Shopify-powered firms to start selling. The platform will leverage technologies like automated translation and price conversion, as well as cargo aircraft to transport items.
Using Shopify’s direct-to-consumer approach to export Chinese goods competes directly with market leader Amazon, which has been establishing itself as a gateway for Chinese exporters.
The two e-commerce giants appear to complement each other — Shopify brings the range of products and JD offers its extensive global warehousing and shipping infrastructure.

Link: https://techcrunch.com/2022/01/18/shopify-jd-china-partnership/

Alipay unveils NFT-powered museum collectables in honour of Chinese New Year

Alipay is bringing a series of NFT-powered digital collectables inspired by the 12 Chinese

zodiacs, with the tiger – the Chinese New Year’s zodiac sign – as the star of the show.

A total of 24 institutions around the country are anticipated to take part and release NFT work featuring tigers. Topnod, a mini-program integrated into the Alipay app that collects, discovers and shares digital collectables, powers these NFT collectables. This new NFT marketplace was launched last year and is seen as another move into blockchain technology and NFT trading by the tech giant.

The Fortune of Patriotism, the Fortune of Prosperity, the Fortune of Harmony, the Fortune of Kindness, and the Fortune of Dedication are all represented by digital collectables.

To target a younger audience, almost 2,000 museums in China have established their own mini-programs on the site. The internet market for NFT has proven to be a successful means of bringing these cultural artefacts to China’s tech-savvy youth.

Link: https://daoinsights.com/news/alipay-unveils-nft-powered-museum-collectibles-in-honour-of-chinese-new-year/

[Xiaohongshu] 6 Lessons from Chinese Beauty Brands

In 2020 China’s Beauty market was valued at USD 6.34 billion with an average growth rate of 12%.

Thanks to KOLs and KOCs, RED is the key platform for product and brand discovery.

The Diamond-Shaped Seeding Method
Male influencers
Ingredients & Routine
Meeting Needs at Speed
High Quality & Informative Content
Posting Frequency & Topics

Link: https://mp.weixin.qq.com/s/_LpvQ7sJnjIqLgyG-qFYQg

How Have Brands Used Channels Since Its Launch Two Years Ago?

WeChat has prioritised Channels since its launch two years ago. The following are some of the most important updates:

In December 2020, live streamers can use live streaming filters, host lucky draws, and connect with other live streamers.
In May 2021, Channels finalized its commercial function by adding a product tab on videos. Users can watch videos/live streams while placing orders.
Later in October, Tencent connected WeCom and Channels so that brands can maximize the conversion opportunities of their video content. For example, sales associates can share brand Channels videos with their clients.

The 3 types of favoured content are:

Emotion-based
Professionally-generated content (news, official announcement)
Entertainment

The 3 types of channel live stream are:

Complements OA performance
Education content
Fashion & entertainment

Link: https://mp.weixin.qq.com/s/nieKtQ-z8ID1K8fIgkC1dw

Top 10 global consumption trends in 2022

Stock goods: Because they couldn’t get the products and services they required on a regular basis, hoarders began to buy similar items or come up with inventive solutions.
Low-carbon lifestyle: As public awareness of climate change grows, customers are making attempts to reduce their carbon footprint by purchasing ecologically friendly goods and taking other practical steps, and they want brands to play a role in environmental protection.
Older consumers get involved in digital: they are comfortable with and adapt to new technology, and they can shop and use a variety of services via digital platforms.
Rise of financial enthusiasts: Consumers’ investment confidence has gradually increased, and they know better how to improve economic security through financial management.
Interest and purpose-oriented behaviour: The pandemic has made great changes for consumers – people have re-examined their values, lifestyles and life goals.
Rise of the metaverse: As consumers pay more attention to the metaverse in 2022, businesses will have the opportunity to build brand value in this new digital ecosystem, promoting e-commerce and virtual goods sales.
Second-hand consumption: With the increasing awareness of sustainability and personalization, people have gradually eliminated the prejudice against second-hand goods and promoted the development of point-to-point platforms.
Urbanized pastoral life: More environmentally friendly activities, such as indoor agriculture and roof gardens, can be integrated into urban areas to better complement the pastoral city trend.
Self-love: Self-acceptance, love and tolerance have become the most important life attitude of consumers. If the product can make consumers feel optimistic and confident, the brand influence will also increase.
Return to the new normal in diversified ways: When consumers consume online for convenience or safety, they are also eager for meaningful social connections. Therefore, it is very important to adopt the mode of combining the two to meet the new normal of consumers.

Link: https://mp.weixin.qq.com/s/DnE_rpUlgWI-gi_G2NWZDg

The more social, the more social phobia, how does online social lower people’s social ability?

We constantly emphasise the Internet’s convenience and fun, but the reality is that people are becoming increasingly fearful of social situations. Although, in many situations, online social networking can efficiently overcome the inconveniences of time, geography, and form. However, an increasing number of people are avoiding face-to-face social situations.

Take a look at the social phobia search index over the last ten years, which has been steadily increasing. According to Guangming Daily’s social terrorism statistics, more than 62% of people have a clear social terrorism tendency.

Social phobia manifests itself in a variety of ways. When people meet up with acquaintances, they are hesitant to say hello and hide silently; they are also hesitant to talk in public and avoid doing so. Dinner is shared among friends, but everyone bows their heads and plays with their phones; Even the salesperson doesn’t want to ask questions when you are shopping.

The network allows for greater self-presentation: people used to try hard fitness, beauty, makeup, and plastic surgery to improve their charm and image. All problems can now be readily solved using social support software. The external image created by software will have a significant gap, in reality, causing people to be afraid of revealing their true self’s real life.

The Internet provides more social forms: they can escape the anxiety and fear of social interaction with the help of takeout, express, WeChat and games without being exposed to the sun.

The network provides stronger communication ability: on the Internet, we have more time to package our behaviour. We have enough time to think about the content of each other and trigger more interesting topics; To sort out the words you respond to.

Link:https://mp.weixin.qq.com/s/xvuPAPcWmGByKhzA20NOfg

Your Weekly China Roundup

September 13, 2021

Growing Significance of Private Traffic

In China, a growing number of industries are incorporating private traffic into their digital strategy. Meituan, a food delivery app similar to Uber that has 450 MAUs, is one of them. Bonus fandom groups, where businesses may communicate directly with customers, are the newest additions to Meituan. Customers can find group access directly from the shop’s main page & u users are encouraged to join such organisations by CTAs implying that they will receive further coupons and offers.

At the same time, groups give users a place to express their comments and merchants a place to change their products. Meituan just implemented a new social feature: customers can now share their restaurant orders with their friends to enhance company awareness.

Link: https://mp.weixin.qq.com/s/btw5G7GQvwOyNqgQQGbn3w

Bilibili and Luxury Brands?

Bilibili, which began as an anime and comics platform, has evolved into a crucial platform for Chinese Gen Z, focused primarily on mid and long videos, and is currently China’s third largest video platform.

Beauty brands such as Shiseido and Lancome have already begun to experiment with Bilibli in order to reach Gen Z, but will luxury brands follow suit?

Bilibili is still relatively unproven in the luxury market, having only attracted a few early adopters such as Dior, Fendi, and Gucci to yet. The major disadvantage is the average age of a Bilbili user, which is still quite young. Bilibili has been actively pushing its e-commerce capabilities to its more than 62.7 million DAUs over the last two years.

Link: https://jingdaily.com/will-a-red-hot-bilibili-become-irresistible-to-luxury-brands-in-2022/?utm_source=CCI&utm_campaign=bca9179477-EMAIL_CAMPAIGN_2020_03_12_06_39_COPY_01&utm_medium=email&utm_term=0_f85454f2c4-bca9179477-408382229

Why Chinese Brands’ Strategies are Important to Brands Everywhere

Chinese businesses differ structurally from those in other countries in that they place a greater emphasis on revenue growth and customer acquisition rather than profit, as most western brands do. As a result, they devote a considerably higher portion of their revenue to marketing and concentrate on hot platforms and key opinion leaders.

Since China has become the world’s factory, Chinese brands can swiftly imitate and improve what is being produced. Because most Chinese businesses do not have heritage brands to protect, they are less risk-averse than established western companies and are willing to attempt a lot more things. This lean startup, come-as-you-are strategy has now been embedded in the DNA of many Chinese brands. Everyone who has grown up in China has only experienced constant change, which has made them extremely adaptive and quick-thinking, especially in business.

Understanding how Chinese competitors operate is critical for brands in China. However, with Chinese businesses like SHEIN becoming more likely to compete in western markets, marketers and strategists working in other nations, including their own local markets, must understand how they operate.

Link: https://www.chinaskinny.com/blog/chinese-brand-strategies-to-watch/

AMX X Ayayi – the first Metahuman in China

AMX, a yogurt company, teamed up with Ayayi, the first Chinese Metahuman, to produce a digital yogurt based on user data. This digital yogurt is comparable to NFT, a one-of-a-kind cryptocurrency token that serves as a digital asset representation.

AMX gained more scientific and technological features as a result of this collaboration, which set it apart from the competition. AMX will use Xiaohongshu and Weibo to promote the idea that “Yogurt brands may also be popular and fashionable” in order to raise the brand’s visibility. AMX wishes to usher the company into the digital era.

On September 8th, Ayayi started working for Alibaba as the proprietor of Tmall Super Brand. She had her own ID card and launched the first NFT digital mooncake for the Mid-Autumn Festival.

Link: https://mp.weixin.qq.com/s/TuX2Tv6d8sgReFQw2bRIfQ