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The Latest News From China

June 14, 2022

The Development Trends of the WeChat Mini-Program in 2022

Current situation:

450 million DAU
4 million mini-programs created (x2 more than the number of native apps on iOS)
95% of e-commerce brands have mini-programs

Context:

The rise of China’s mobile internet market has slowed, and the growth in individual device online time has practically halted. Customer acquisition became increasingly difficult for emerging applications. Users want apps that would not require installation or uninstallation, were constantly available for use at their fingertips and could be exited after usage.

These facilitated the emergence of mini-programs

Development trends:

Mini-programs have grown in popularity not just in first- and second-tier cities, but also in third- and fourth-tier cities, and even counties. The most popular industries will continue to be e-commerce, live streaming, retail, community group purchasing, and tools.

Since WeChat is expected to introduce public domain traffic for e-commerce mini-program streaming, live streaming commerce, which is currently popular, will become even more appealing to businesses.

Operation and service trend —— Refined operation, brand cultivation:

Start transition from “traffic” thinking to “retention” thinking by creating their own private domain traffic pool

Brands need to build a “private domain matrix” comprising WeChat features with mini-program, WeChat enterprise, video channels, mini-program live streaming and Official Accounts to guide the transformation

Link: https://qpsoftware.net/blog/development-trends-wechat-mini-program-2022

TikTok Shop’s Troubled UK Expansion: Staff Exodus and Culture Clash

TikTok is attempting to imitate Douyin’s phenomenally successful live-streaming approach (the Chinese version of TikTok). Since October 2021, the UK has become the first market outside of China to debut TikTok Shop.

More than 50% of the e-commerce team apparently quit in the past months and more is ready to exit the company. Extremely long work hours (the 996 culture comes to mind) and high KPI targets are the key reasons for this. Employees also said that management is pushing solutions that work in China but aren’t tailored to the needs of the UK.

Link: https://www.ft.com/content/dc1aba86-2055-4521-8f0c-1f026c7f6864

Asia-Pacific Consumers Willing to Pay Premium For Sustainable Products: Report

According to a recent survey released ahead of World Environment Day, nearly 90% of customers in Asia-Pacific are willing to pay extra for sustainable products, but a lack of information and availability is holding them back.

Alibaba Group, based in China, has vowed to be carbon neutral by 2030 as it reduces emissions across its operations and collaborates with millions of merchants to provide more sustainable items to the platform’s over 1 billion users.

Alibaba also promises to expand its sustainable product line and advertise it properly. There are more than 460 certified ecolabels globally which increases consumer confusion.

Link: https://www.alizila.com/asia-pacific-consumers-willing-to-pay-premium-for-sustainable-products-report/

TikTok’s Toxic ‘996’ Culture Is Forcing UK Employees out the Door

At least 20 staff have left TikTok since the company launched TikTok Shop in the UK in October, a live-streaming e-commerce platform. Employees complain that they are required to adhere to China’s working hours, which frequently result in them working more than 12 hours per day. Employees who took time off were penalised by the corporation, which rewarded overworking. Other former TikTok employees have also spoken out against the company’s hostile work atmosphere.

“The culture is really toxic. Relationships there are built on fear, not cooperation,” a former London-based team leader said. “They don’t care about burnout because it is such a big company, they can just replace you.

Joshua Ma, the head of eCommerce at TikTok Europe and a senior executive at China’s ByteDance — the owner of the viral video app — upset London-based employees at a dinner this year when he declared that as a “capitalist,” he “didn’t believe” companies should offer maternity leave. TikTok informed employees on Wednesday that Ma had “stepped back” from his role while the company conducted a formal investigation into the comment.

TikTok Shop’s Troubled UK Expansion

Last year, Bytedance opened a Tiktok shop in the United Kingdom, but the results were unsatisfactory. According to the report, the main reason for Tiktok’s failure is that users are not accustomed to shopping on the platform; many live streams even make no purchases.

TikTok Shop’s goal is to buy low-cost things directly from low-cost producers in both the UK and China.

Bytedance introduced an e-commerce platform named Fanno in Europe in 2021, which is similar to Pinduoduo, as well as a separate e-commerce platform called Dmonstudio, which is a B2C website that sells women’s clothing. However, the plan failed as well, and Dmonstudio was shut down in February 2022.

The experts explained that the vertical e-commence market has never been developing in China because of the existence of Taobao. However, in Europe, the market is quite mature, which could be the main reason that Bytedance failed in this area.

As a result, Tiktok will need to adjust its strategy both internally and technically in order to thrive. They must adapt to local culture and market characteristics while leveraging their algorithms and content distribution to create a fresh approach to stand out.

Link: https://www.ft.com/content/dc1aba86-2055-4521-8f0c-1f026c7f6864

Slow Live Streaming Is a New Trend

In May, Bilibili conducted a late-night accompanying live broadcast. The live broadcast called “Midnight Song platform” began at 10:30 p.m. only some songs were played. There were no anchors or products. In the evening, the number of viewers on WeChat video accounts reached 100000.

The slow live broadcast without editing and special effects, slow pace and simple pictures has gradually become a place for people to cure their emotions.

The cctv24-hour continuous live broadcast of hospital construction lasted 117 days at the start of 2020, with approximately 200 million views and more than 6000 hours of the online live broadcast.

There’s also the ipanda panda channel, which broadcasts a 24-hour live feed of enormous pandas, a national treasure, to people all over the world.

The slow video has become popular not only at home but also abroad

The Discovery Channel also produces a variety of slow-motion televisions with superb picture quality and stunning photography. On the longest day of the year, Icelandic rock band Sigur Rós took a 24-hour trip around the island. Their music was blended with the fog of northern Europe to provide sensory satisfaction to the audience; the public has a particular taste for sluggish live broadcasting, which is the time preference. People “trapped in home life” are highly eager to travel and get close to nature, and thus view the outside world, thanks to the epidemic’s travel limitations.

Link: https://mp.weixin.qq.com/s/Ee-Md4O0V5JOh_ZUrzZRQw

China News for the Week

May 11, 2022

Top 5 Chinese Tech Firms Have Lost Nearly Half of Their Combined Market Cap in 2 Years

Why it matters: After two decades of phenomenal expansion, the top five Chinese tech behemoths have lost at least 46% of their total market capitalisation.

In April 2020, Apple’s valuation = Alibaba+Tencent+Meituan+JD.com+Pinduoduo the top five Chinese tech firms
In April 2022, Apple’s valuation = 49 top Chinese tech firms combined. Apple’s valuation has more than doubled while many Chinese tech firms’ valuation has decreased or stagnated

What are the reasons?

A saturating local market
Pandemic outbreaks
US-China trade tensions
Rigorous government regulations
The loss of the “upbeat spirit” of China’s business world.

Link: https://technode.com/2022/05/09/top-5-chinese-tech-firms-have-lost-nearly-half-of-combined-market-cap-in-2-years/

Chinese Internet Users Buy Fake Covers After Social Media Forcefully Reveal Their Locations

Why it matters: Chinese internet users are playing cat and mouse with the country’s social media sites, which have violated users’ privacy by requiring them to give their geolocation.

Many people have been surprised by the new rules. Many popular marketing personas with international pictures and selling qualities, for example, are demonstrated to be based in China.

As a result, several enterprises are now selling services that change IP addresses on e-commerce platforms like Taobao for as little as RMB 6 ($0.9) per day. Many of these businesses claim to be able to change location information (in Chinese) on platforms such as Weibo and Douyin.

Link: https://technode.com/2022/05/07/chinese-internet-users-buy-fake-covers-after-social-media-forcefully-reveal-their-locations/

Why Is Email Marketing Ineffective in China?

An email has never been popular in China in comparison to the West. Experian Market Services statistics from 2015, which examined email marketing success in selected Asia Pacific nations, showed that China’s total opening rate was barely 10.5%, compared to 33.1% in New Zealand.

Chinese users check their emails 22% less frequently than users worldwide. Smartphones have mostly overtaken desktops as the primary computing device in China. The country was a late adoption of computers, and as internet cafés began to develop in the 1990s and early 2000s, young people began to engage with one another using social messaging apps such as QQ.

Email marketing frequently disappoints marketers because the majority of Chinese do not regularly check their personal emails (if they have one at all) and would expect the brands they care about to meet them in their native digital environment.

WeChat brand accounts are far more engaging than email and can provide information on several elements of the brand.

Link: https://daoinsights.com/opinions/why-does-email-marketing-not-work-in-china/

The Future of E-Commerce on Douyin and 5 Tips on How to Prepare

In China, TikTok is known as Douyin. With over 600 million active daily users, it’s a hugely popular short video app. That equates to half of China’s population.

Unlike TikTok, Douyin clearly integrates e-commerce. Douyin users can complete purchases within the app by clicking links within each short video. Douyin thus becomes a viable sales channel, perfectly adapted to impulse purchases.

Link: https://agencychina.com/blog/e-commerce-on-douyin-5-tips-how-to-prepare/

WeChat to Reveal Users’ IP Location on a Public Posts

WeChat announced on Friday that it will begin displaying users’ whereabouts when they post on a public account.

WeChat, which is controlled by Tencent, said it would soon begin testing the setting, which only applies to users of its “public platform,” where they can comment on news, essays, and other written content published by official accounts.

The new settings will show the province or municipality of Chinese users who post on public accounts. Posts made by users from other countries on public accounts will show the nation indicated by their IP address.

WeChat, which has over 1.2 billion monthly users, stated in a notification that the action targeted misinformation about “local and international hot-topic topics,” but did not elaborate.

Link: https://mp.weixin.qq.com/s/-utfIpLwq7Iq6GKqldKRhw

A Part of Gen Z Decides to Give Up Filters on Social Media

Posting on WeChat is becoming increasingly tiresome for many individuals. Typically, it takes them 5 minutes to take photos and 1 hour to edit them in Photoshop, plus they have to think of an interesting environment to write in. Finally, it appears to be extra labour.

As a result, as more people become dissatisfied with social media, they want a platform that is easier and less stressful. Then, all of a sudden, a new app becomes extremely popular. It’s called “BeReal,” and it was created in France.

Users cannot upload photos to this platform. Instead, they can only utilise the app’s camera to snap a live photo. Furthermore, the platform lacks a filter and editing tool, so users may only send original photographs. Furthermore, BeReal does not allow users to choose when they want to snap photos and share them. Instead, the system tells every user to perform everything at once. Every time, users have only 2 minutes to shoot photos and upload them before it is too late. BeReal wishes to save the most genuine moment in your life. Furthermore, you cannot choose not to be genuine because both of your phone’s cameras will be activated, allowing people to see both your face and where you are. Finally, there are no “like,” “share,” or “comment” buttons on BeReal; the only way to communicate with your friend is to take a picture of yourself and send emoji.

The concept of BeReal is that they want people to calm down and forget those annoying data, while just focusing on what is happening in real life. Perhaps because of that, BeReal suddenly became popular. In the first quarter of 2022, the number of users increased by 315%. And it has become the Top 4th app in America, France, and England, just behind Instagram, Snapchat and Pinterest.

In France, 80% of the users are Gen Z, mainly because they are tired of pretending and being identified by others. They are not afraid of being “ugly”, they just want to be themselves rather than live in other people’s comments.

Link: https://mp.weixin.qq.com/s/5L0JpmtmXZ-j7Va2sVB-xQ

Glamping Swept China’s Social Media This Labor Day Holiday

Because of the COVID-19 control measures and continued domestic travel limitations, Chinese people spent their Labor Day holiday this year on short getaways and staycations. The most popular topic these days is “glamping” (glamorous camping). According to Ctrip data, online traffic for “camping” reached a historic high on the first day of the holiday, and search volume jumped by 90% over the previous week. There are nearly three million campaign-related UGC (user-generated content) entries on Xiaohongshu, ranging from gear photos to the journey itself.

From January to April of this year, the number of participants on Ctrip was five times that of the entire year of 2021. In addition, the number of camping facilities has increased by 800% since this year.

Camping can be classified into two categories: luxurious camping and survival camping. The first emphasises quality, whereas the second emphasises the difficulty of surviving in the field. The most popular is luxury camping because most people prefer to explore nature rather than build a genuine fire. And those stunning photographs on social media have had a huge influence on individuals who have never gone camping before, making camping a new fashion trend among young Chinese visitors.

This brisk growth portends a bright future for the outdoor equipment and apparel business. According to Daxue Consulting, the sector would be worth $100 billion (666.8 billion RMB) by 2025. Luxury residences were eager to seize this opportunity. Prada debuted its Outdoor Collection last year, a distinctive ready-to-wear line inspired by the great outdoors.

However, this part still has many obstacles, such as style, functioning, colours, activities, and so on. Players in this game should think outside the box and be more creative while maintaining quality.

Link: https://jingdaily.com/glamping-labor-day-china-prada-beast/?utm_source=Jing+Daily+Subscriber+List&utm_campaign=069f57ad7b-EMAIL_CAMPAIGN_2020_03_12_06_39_COPY_01&utm_medium=email&utm_term=0_8dec01cd8d-069f57ad7b-40884038

[UPDATE] WeChat Testing a New e-Commerce Mini Program Feature

July 21, 2020

As its push into e-commerce accelerates, WeChat rolls out a new mini program feature called ‘WeStore’.

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