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.

You may also like

NFT and Metaverse in China

January 4, 2022

What does the latest news mean for NFT and metaverse in China? China is one of the countries that has publicly maintained its anti-crypto position, ordering a statewide ban on all crypto-related transactions earlier this year and threatening defaulters with fines.

Not only that, but officials in the country have begun a crackdown on crypto mining activities, citing the detrimental environmental impact as one of the reasons why such activities will no longer be tolerated in the country.

However, despite a difficult year at the hands of China’s anti-crypto government and the Chinese central bank’s request that these be monitored, the country’s IT giants are optimistic about launching metaverse and non-fungible tokens (NFT) businesses.

Companies in the Metaverse Race

The majority of the businesses that registered for trademark registrations belong to the tech sector. This includes well-known brands such as Huawei and Hisense. The former filed a trademark application for “Meta OS”. At the same time, the latter filed many trademark applications in fields such as social services, advertising, and science. 

Tencent, the gaming and Internet giant, has also gotten in on the act, filing nearly a hundred metaverse-related trademark applications, including “QQ Metaverse,” “QQ Music Metaverse,” and “Kings Metaverse.” Also, Epic Games, an American gaming company in which Tencent owns a 40% share, is moving forward with its own metaverse plans, maybe with Tencent’s help.

Alibaba has launched a new company called Yuanjing Shengsheng, with USD 1.58 million in funding. “Sources familiar with the topic” indicated that the new business will focus on metaverse, but did not go further.

Baidu’s Xirang

Baidu is not staying behind with its own metaverse launched last week and called Xirang, “Land of Hope” in Chinese, accessible through a virtual reality app. The biggest search engine in China cools down the expectations. Its representative said that “it could take up to six years for a full launch”.

Meanwhile, the e-commerce giant, JD.com has already issued its first NFTs and they’ve received a positive response. The fintech published five series of the JOY Dog character-themed tokens on its Lingxi platform with minimal fanfare.

RTFKT, a creator of digital goods such as virtual shoes and NFTs, was recently acquired by the international brand, Nike.

Also following White Castle’s entry into crypto, Applebee’s is introducing a new NFT every Monday this month. 

In less than four months, a gaming brand has increased its total worth to $2 billion by joining the metaverse and NFT race. Also, NFTCN, a company that was founded in claims to have worked with over 1,000 Chinese artists and handled over 10 million RMB in NFT transactions. Similarly, many more tech giants and multinational companies are joining the Metaverse & NFT squad.

What Does This Mean for Chinese NFT and Metaverse Enthusiasts?

China has unquestionably established itself as a centre of technology innovation and progress. China’s inhabitants mostly lead the pack in terms of technological adoption.

This is especially true in the emerging NFT field. Google trends data shows that the country is one of the top three countries in the world for “NFT” searches.

According to Grayscale data, Chinese officials implying space surveillance simply means that residents of both countries may have limited access to the $1 trillion space potential. A total crackdown on the sector isn’t completely off the table. 

We’ve seen brands experimenting with NFT-like offerings like e.g. Burberry sold NFT deers together with a limited edition scarf during the 11/11 shopping festival. It was also a part of Tmall’s Metaverse Art Exhibition. Drops of limited editions created by luxury brands very often spark enthusiasm from Chinese consumers especially when the concept combines an innovative approach. Despite that the usability of the tokens is quite low, the items sell out quickly and are in high demand. 

Predictions

We believe that metaverse and NFT will only grow further in China despite the challenges and different factors and environments. Given the fact that all the Chinese Internet giants – BAT (Baidu, Alibaba, Tencent) are already launching their own metaverses and strong adoption of online payments (with virtual yuan rolling out by the banks). These are strong indicators of the potential of the online reality.

If you require further support with setting up your account 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 us by phone – Shanghai or Hong Kong.

You may also like