5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account?

February 18, 2022

China is one of the world’s largest e-commerce markets, with a myriad of marketplaces to choose from. Taobao, Tmall, JD, and Pinduoduo have drawn millions of shoppers to become frequent buyers over the last decade. 

Social media has substantially impacted the way Chinese consumers shop online, in tandem with a tremendous increase in mobile phone usage. Especially those born in the mid-to-late-nineties, Chinese Gen Z also called the post-90s generation, are pioneering new trends.

That’s where XiaoHongshu comes in: a well-known “lifestyle” UGC and review app that’s taken the e-commerce world by storm. You can find the introduction to RED we covered before here – A Quick Guide to Xiaohongshu (Little Red Book) Marketing. 

XiaoHongshu, or RED, is a combination of beauty, lifestyle, and fashion app in one that allows users to share their personal style while also discovering new goods from around the world. It is the Chinese equivalent of Instagram on steroids, and it’s a great way to read product reviews, share daily outfits, get fashion advice, and find high-quality businesses and all of this with just one click to buy the products mentioned in the article. This is especially relevant for relatively unknown, small luxury brands since beauty enthusiasts in China love to search for new labels and one of the industries that enjoyed this trend are niche perfumes – The Accelerating Growth of Niche Perfume Brands in China.

Why Should International Brands Leverage the Platform?

XiaoHongshu provides a variety of free and paid ways for businesses to advertise their brand to their user base. Some of them include:

Reason 1: Brand accounts

On XiaoHongshu, brand accounts are one of the most effective ways to interact with the community. They can send ‘notes’ to fans, add photographs and videos, sell their own items, and answer fan reviews and comments.

A brand account on XiaoHongshu with the correct strategy and content in place might quickly build attention on the platform, especially if your notes are added to the ‘boards’ of popular influencers.

Reason 2: 100 Monthly Active Users

XiaoHongshu has over 100 million monthly active users with 70% female and almost 40% users being between 25 and 34 years old. If you are a beauty, fashion, or lifestyle brand targeting Chinese gen Z that’s the platform to be. 

Content Promotion Model

Reason 3: ‘Key Opinion Leaders,’ or influencers

Xiaohongshu developed as a review platform and grassroots content is still dominating. Influencers and key opinion leaders (KOLs) are critical to establishing traction on XiaoHongshu and are perhaps the most powerful type of advertising available.

The XiaoHongshu ‘Influencer Platform,’ a database with roughly 6,000 influencers, is designed to match you with individuals who are most relevant to your speciality and budget.

Who are Chinese influencers: KOL and KOCs?

Reason 4: XiaoHongshu advertising 

XiaoHongshu also offers traditional advertising in the form of ‘pop-up’ ads that display when the app is used and promotional messages that are organically incorporated inside the platform’s ‘explore’ feed, in addition to organic opportunities and influencer marketing.

Develop content for the most important Chinese e-commerce festivals to catch the attention of Chinese users. Check out how to advertise on the platform in our article – Advertising on RED.

Overseas Shopping

Reason 5: Crossborder e-commerce

Xiaohongshu offers cross-border e-commerce business for brands based outside of China and wishes to target and sell to the Chinese market. Because of its business model, RED takes care of the warehouse and logistics within China making it easier for foreign brands to operate.

Find out more about cross-border e-commerce in China. 

 

How to Set Up an Account on RED/Xiaohongshu?

Setting up accounts on WeChat and XiaoHongshu is frequently done in conjunction and is substantially less expensive than selling on Tmall.

Step 1: On RED, there are over 20,000 brand community accounts. Nearly 10,000 third-party e-commerce merchants use the network, which offers over 100,000 distinct products. As a result, the most vital initial step is to create an account.

Step 2: After you’ve created an account on RED with a Chinese phone number (you can also create an account with an international phone number, but your app’s functionality would be limited), the next step is to see if you can use their in-app e-commerce option. 

Requirements for setting up an account

Your company must have a business registration in China in order to use this function. One of RED’s biggest advantages as a social commerce platform is that it has its own store where users can make purchases directly from the app. Many brands benefit from this closed-circuit integration since it allows them to sell their products more easily.

The main documents required to open a XiaoHongshu account are:

  • Papers for registering a business
  • Incorporation certificate
  • Form for customs registration

You’ll also need to submit the following supporting papers.

  • Information about the company 
  • Logistics commitment letter 
  • Authorization letter for store operations 
  • Brand information Application form 
  • Authorization form Trademark authorization

Conclusion

Xiaohongshu is an amazing platform where lifestyle brands can advertise things such as fashion, cosmetics, nutrition meals, accessories, and brands that are popular with young female shoppers. Hence, If you want to reach Chinese young female consumers, XiaoHongshu should be a big component of your strategy.

More than just another e-commerce marketplace; it’s a lifestyle community where users and influencers share photos, videos, and information about things they’ve used.

That is why at KRDS, we are committed to assisting businesses to achieve marketing success in China. 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

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Cross Border E-Commerce in China

February 7, 2022

China’s cross-border e-commerce has drastically matured in recent years. Thanks to the steady increase in industry size, greater integration of supply chain processes, progressive transition to more refined operation, and continued penetration of innovation models, the industry has boomed significantly. 

The import and export trade has existed since the dawn of time, yet despite the Covid-pandemic, the numbers are on the rise. The widespread adoption of online consumption patterns has fuelled the rapid growth of worldwide e-commerce. This has resulted in a steady increase in penetration and sales.  

According to eMarketer, China’s cross-border e-commerce became a new economic accelerator in China, as well as a hot investment and financing area in the capital market, thanks to its solid advantages in high cost-to-performance and high efficiency.

Cross Border E-commerce: What Is It?

Any international sale of a product or service between two parties on an online marketplace platform is referred to as cross border e-commerce. 

It can either be B2C (Business-to-consumer), B2B (Business-to-business), C2C (Customers-to-customer) or D2C (Direct-to-consumer)

Any seller can benefit from cross-border e-commerce if they want to expand their business, investigate new markets and purchasing patterns and/or export what they have to offer in order to reach a larger audience but it can be intimidating to start. 

Cross Border E-commerce in China

In China, cross-border e-commerce is distinguished by the fact that overseas companies are permitted to offer some goods to Chinese consumers online, through platforms such as Alibaba’s Tmall Global and Kaola, at favorable tariff rates and without the need for a business license.

Moreover, the majority of cross-border trades in China are carried out by corporations from other Asian countries, led by Japan and Korea, and closely followed by the United States.

The Chinese Ministry of Finance has implemented few regulations for cross-border purchases since January 2019. The following are the most important for CBEC in China:

  1. The maximum amount for a single transaction has increased from 2,000 RMB (291 USD) to 5,000 RMB (727 USD)
  2. The average annual amount spent across borders climbed from 20,000 RMB (2,909 USD) to 26,000 RMB (3,782 USD) per person.
  3. In China, 63 additional item categories have been added to the positive list for cross-border e-commerce purchases. Sparkling wine, beer, health care items, and workout equipment are among these categories.
  4. The number of cities eligible for the CBEC tax-rebate increased from 15 to 37, including Beijing and Shanghai.
  5. Because of the new regulation, it’s more difficult for Daigou to operate unlawfully. Daigous is a form of surrogate shopping in China as a means to receive cheaper or locally unavailable, often luxury goods, from duty-free shops and foreign countries. 

The Retail Marketplaces of the CBEC

In China, there are various platforms for cross-border e-commerce. Tmall and JD.com are at the top of the list. 

China’s consumers are more educated than they have ever been. As a result, they desire higher-quality goods and are willing to pay a higher price for them. They are educated and shop on the go using mobile devices. The majority of e-commerce shoppers are between the ages of 18 and 34. 

In 2017, the average Chinese online shopper spent RMB12,198 (S$2,558) (iResearch Consulting Group).

Some of the key marketplaces you could consider for cross-border e-commerce are:

  • Tmall & Tmall Global (Alibaba)
  • Kaola (Alibaba)
  • RED (Xiaohongshu)
  • JD Worldwide
  • VipShop
  • Pinduoduo

Most major global brands have a presence on one or more of these platforms because they provide high market exposure and allow them to benefit from the platforms’ high quality and exposure.

What are the benefits of cross-border eCommerce?

The most significant advantage of cross-border eCommerce is that it allows you to extend your business globally and gain exposure to new markets and audiences. Because of that, it will also assist you in increasing the appeal of your business.

With a larger audience, your company’s number of customers and potential consumers will increase, potentially leading to an increase in demand and customer orders. 

Products that are less popular in their home market have been discovered to be more popular beyond borders in some situations. As a result, cross-border e-cmmerce can help you sell slow-moving or outdated inventory.

However, there are a few things to consider before pursuing cross-border e-commerce for your business:

  1. Figure out the suitable platform to sell your products
  2. Know the latest trends and who your consumers are
  3. Understand the rules and regulations
  4. Read up on the geography of your audience
  5. Learn what various partners can do for you

End word

In conclusion, enterprises should prepare themselves by having a thorough awareness of trends, customers, location, legislation, platforms, and the ecosystem. Thank to this, they can effectively access China’s lucrative cross-border e-commerce sector. So there is a lot of homework to do, but there are also a lot of resources.

If you require further support with setting up your account or assistance in learning more about cross-border e-commerce 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 us by phone – Shanghai or Hong Kong

Read more such articles by clicking the links below:

What Are the Most Important E-commerce Festivals in China?
The Accelerating Growth of Niche Perfume Brands in China
A Quick Guide to Xiaohongshu (Little Red Book) Marketing
Establishing A Presence on Xiaohongshu, China’s Popular Fashion Platform

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How To Engage Audiences During Chinese New Year on WeChat?

January 28, 2022

On February 1, the Chinese New Year will be upon us, and it is historically a time of celebration, full of feasts, fashion, and, may we say, financial festivities.

With the New Year in mind, businesses are focusing their advertising strategy on the year’s most important holiday. The way companies approach the holiday season can teach marketers how to use consumer insights to build culturally relevant advertising.

Because China’s consumer market, which is predicted to rise to $8.4 trillion by 2022, is seen as a crucial development potential for luxury brands aiming to recover from a difficult year in 2020. 

Moreover, simply put, the Chinese market and the festivals fascinate brands. However, understanding the cultural nuances around the occasion might make the difference between a successful campaign and one that fails. 

Firstly, a campaign will take off when brands make the effort to discover what customers actually value and the cultural significance of the holiday they’re celebrating. Secondly, even if Chinese New Year isn’t on your marketing calendar, there’s a lot to learn from some of these brands that we at KRDS worked with, to create innovative WeChat CNY campaigns.

Lastly, types of activities and campaigns for Chinese New Year are unlimited. From static or GIF greeting cards to elaborated mini-site campaigns, you name it. Don’t forget the latest craze – branded WeChat red packets with lucky money.

What is a Hongbao, Red Packet?

This year, at KRDS / The WeChat Agency, we created our own WeChat Red Packet cover. 

Hongbao Red Packet WeChat

Hongbao Red Packet WeChat

Click here to discover how to create yours! Creating Your Own Red Packet Cover On WeChat—The Ultimate Guide

Chinese new year campaign for Montagut

To celebrate the Chinese New Year with Montagut fans and promote a new collection, we created a mini-site for customers to discover the perfect look for Chinese New Year celebrations.

The outfit suggestions were made based on the weather forecasts in their hometowns (geolocation) and the user’s personal preferences.

Montagut Campaign WeChat Montagut Campaign WeChat

Greetings Poster

Wechat holiday greetings for Procter & Gamble

CNY Poster WeChat

 

Greeting cards creation for BNP Paribas

BNP Paribas WeChat

Are you curious how other brands in China celebrate other festivals? Check out our previous post on China’s Christmas: How It Has Evolved Over the Years.

If you require further support with setting up your WeChat account or assistance with customizing your Chinese new year greetings/campaign, 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

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WeChat (Weixin) Class PRO 2022: Top Highlights

January 18, 2022

WeChat which is known as Weixin (pronounced way-shin) in China is the country’s killer app, a highly addictive social networking tool that allows smartphone users to send messages and share news, photographs, videos, and web links, similar to WhatsApp in the United States or Line in Japan. 

Every year, WeChat organizes the annual conference “Open Class Pro” aimed at WeChat creators to find out what that number means for small businesses and what other new plans the networking giant has in the works.

WeChat Open Class Pro Highlights

1. On January 4th, 2022, at the annual event promoting the app’s new functions and strategies, a group of middle-ranking Tencent executives dubbed “WeChat lecturers” worked together to persuade Chinese users, including content creators and merchants, that the app would continue to be an important tool for entertainment and business in China with its mini-programs and short videos.

2. One of the main takeaways from the event was that the number of mini-programs – primarily created by third parties – has been gradually increasing, with 450 million daily active users expected by 2021. WeChat users visited small programs 32% more frequently in 2021 than the previous year, according to the Shenzhen-based tech giant.

  • In 2021, according to Lake Zeng Ming, CEO of Tencent’s Weixin Open Platform, more than 700 million individuals used pandemic-related services such as Covid-19 testing and vaccination appointments via WeChat micro-apps.
  • Tencent also stated that over the next three years, it will pay 10 billion yuan (US$1.57 billion) in subsidies to small merchants to encourage them to modernize their digital infrastructure.


3. Tencent also held a special session at the event on Channels, the app’s own short video service that will launch in 2020 and compete with Douyin, which has over 600 million daily active users in China.

Tencent has taken a step-by-step strategy to promote Channels, giving video content a more prominent position on WeChat. Channels had amassed 200 million users as of June 2021, according to the most recent data from Tencent, but WeChat has not given updated user counts since.

4. Weixin’s annual conference in Guangzhou also highlighted advancements in the app’s payment and search functions, as well as the commercial version.  But it was the app’s “channels” feature’s short videos and live streams that grabbed the Internet by storm.

Social Impact Methods in Empowering the Vulnerable

  • Weixin has included a new option for older users called Easy Mode, as well as an improvement to the Parental Control Mode for underage users, further boosting connections with age-specific updates.
  • Weixin launched a scheme for over 60,000 Shenzhen sanitation workers that allow them to eat for only 0.01 yuan a week at roughly 1,000 restaurants throughout the city. To assist gather funds, more than 20,000 eateries and their customers in China joined the philanthropic project.
  • In another case, Weixin developed the Star Knows campaign and used the Mini Program to enlist the public’s love and support in order to expand the number of books available to rural children.
  • Weixin also employed the Mini Program to assist Chinese users in becoming more environmentally conscious. Weixin launched the country’s first educational mini-program dedicated to the science of carbon emissions to raise public understanding of climate change.

The 2022 Open Class PRO conference went all out to achieve net-zero emissions, with speakers and guests wearing clothing made entirely of recycled plastic bottles. According to professional calculators, this event established a balance between emissions created and emissions removed from the environment

Weixin stated that it will continue to improve its products and provide support to developers, content creators, and partners in order for them to survive in the dynamic ecosystem and collaborate to provide more people-oriented innovative services.

How Did Small Businesses Benefit From Weixin Mini-Program?

Case study

Xiao Mian, a popular street meal from China’s southwest serves hot, tingly, and mouth-numbing dishes. Su Xuxiang, on the other hand, sees a lot of potential for delicacy across the country. Weixin’s noodle business has grown to 150 locations nationally in the last seven years, thanks in part to his mini-program feature.

Benefits

Yujian Xiaomian, co-founder of SU XUXIANG stated “Weixin was the first platform we used for orders and payments. We opted to employ the mini-program features two years ago. It not only improves our service, but it also allows us to better understand our clients. With the users’ permission, we can see what foods they prefer and where on the menu they spend the most time. It has also aided us in attracting six million people’’

Mini programs are less expensive and easier to develop than standalone apps, making them perfect for low-budget start-ups.

Tencent’s Weixin, or WeChat, claims that 450 million people used its mini-programs on a daily basis in 2021. These mini-programs are WeChat-based services provided by third parties. 

According to Weixin, small and medium-sized firms created 90% of new mini-programs in the previous year.

Tencent’s XU YANGYANG Catering and Life Services Business Weixin Open Platform is a platform created by Weixin. “COVID-19 cases continued showing up all over the place in 2020, wreaking havoc on dine-in services. That’s why, in addition to catering, we encouraged contactless ordering in barbershops and laundry services. The number of mini-programs and daily active users had doubled a year later. Most crucially, the number of transactions increased by a factor of five. We believe we’ve improved the efficiency of enterprises and society, which will lead to a stronger economic recovery.”

Conclusion

  • If you’re targeting higher-end customers, WeChat Mini-programs will almost certainly remain an important element of your marketing ecosystem. This is because they make it easier to convert new users.
  • Users that try out services through the WeChat Mini program are considerably more likely to upgrade to a Native App.
  • They’re a powerful tool because of their capacity to transform WeChat content into e-commerce.

If you require further support with setting up your WeChat 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

 

Sources:

https://news.cgtn.com/news/2022-01-07/VHJhbnNjcmlwdDYxODQ1/index.html

https://chozan.co/wechat-vs-weixin/

https://www.prnewswire.com/news-releases/weixins-open-ecosystem-reports-user-and-engagement-growth-301455662.html

https://en.wikipedia.org/wiki/Weixin

https://www.scmp.com/tech/big-tech/article/3162340/chinas-ubiquitous-wechat-doubles-down-mini-apps-short-videos-it-faces

https://walkthechat.com/wechat-mini-programs-simple-introduction/#:~:text=If%20you’re%20targeting%20higher,convert%20to%20a%20Native%20App.

https://recordtrend.com/industry-information/all-highlights-of-2021-wechat-open-class-pro/

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Creating Your Own Red Packet Cover On WeChat—The Ultimate Guide

January 13, 2022

It is a widespread custom for adults to gift red packets containing monetary gifts to children during Chinese New Year. However, in recent years, the habit of presenting friends and coworkers has transferred to China’s super-app, WeChat. As a result, the opportunity for brand visibility and interaction arose thanks to this behavioral change. Last week, we covered different ways in which brands can engage with their audiences during the Chinese New Year, today we will dig more into how to create your own red envelope on WeChat. 

What is a WeChat Red Envelope?

Tencent’s WeChat red envelope (or WeChat red packet cover – 红包封面) is a WeChat-based feature that was developed in China. But the concept itself is not new. In fact, it’s based on the Chinese tradition of hongbao (red envelope, or red packet), in which money is presented as a gift to relatives and friends. 

Tencent released the function in January 2014, and it has since grown in popularity, with Tencent reporting 2.3 billion transactions on the first day of 2016.

Users can give monetary presents to other users within a private conversation or group chat in the form of virtual ‘credits.‘ A user’s WeChat Pay account gets credited with funds that can be utilized to make purchases. 

WeChat offers two sorts of ‘red envelopes’: pairwise red packets, which send money from a private chat between two users, and group red packets, which distribute money in a group chat. After posting the ‘grouped’ red envelope to a group chat, the app assigns the amount in each envelope to each receiver at random. Fights for the biggest win of an envelope is a common and fun sight at the annual dinners across China.

Why Do Businesses Require Red Packets?

Moreover, there are other motivations for mobile payment companies to compete during this period, aside from the red packets being a cornerstone of WeChat’s development history. Because the Lunar New Year is the most important Chinese celebration of the year, there are more transactions than at any other time of the year. 

Thus a number of other brands, such as Gucci, Louis Vuitton, Versace, Burberry, and many more have incorporated the red envelope concept into their Chinese New Year’s marketing strategies. This year with more and more hype around red packets, payees are especially encouraged by brands to transfer ‘lucky money to a friend, thereby assisting the brand in expanding its brand awareness. Sometimes, like in the came of Gucci, users need to book their slot to receive the cover they can use via a mini-program to make it more exclusive. 

On the other hand, consumers may also receive a red envelope with a surprise discount after purchasing something in-store using WeChat Pay. These companies are often FMCG brands because a discount signals value and are generally not an incentive that luxury brands want to be associated with.

Step by Step Guide on Customisation Process of The Red Envelope

Step 1: Registered account and Required materials

Chinese mainland WeChat official account is open to everyone for registration: http://cover.weixin.qq.com 

Red Packet Cover On WeChat

Step 2: Submission for review

Check the official WeChat page for design requirements and specifics. 

  • Format: PNG / JPG / jpeg
  • Width and height: 957 * 1278 pixels
  • Size: ≤ 500kb

Red Packet Cover On WeChat

After you’ve finished customizing the red envelope, send it to the WeChat team for review.

Audit Cycle: The audit cycle is generally 1 working day.

Audit Result: The results will be published on your official WeChat account and sent over by mail after the audit is completed (WeChat envelopes). You can also check the status of the audit in my “seal” at the same time.

Red Packet Cover On WeChat

Step 3: Payment and refund

Select the number of users of the red envelope cover after approval and pay the payment item to create an order.

Price: The red envelope cover costs one yuan per piece.

Payment method: Payments can be made via Wechat, internet banking, or an offline transfer or remittance.

Refund: Only when the red envelope cover is removed from the shelf due to infringement, and there is a red envelope that is still within the distribution validity period and has not been successfully received by any user.

You will get a return for unused red envelopes at a rate of 1 yuan per piece.

Red Packet Cover On WeChat

Final Step

Step 4: Release cover

The cover can be distributed to the selected user after it has been properly purchased. It will expire after six months. Users will not be able to receive it after it has expired.

Distribution methods include:

  • QR code
  • Serial code
  • Link

According to the activity scenario, user group, collection rules, other factors, the customization party can choose the best distribution strategy.

Red Packet Cover On WeChat

Step 5: Trial cover

After each red envelope cover’s approval, ten trial covers for ten Wechat accounts can be obtained.

The cover is effective for two hours after scanning the code and can be used an unlimited number of times. The trial run expires after two hours have passed.

Red Packet Cover On WeChat

Step 6: User to use

Users can use the cover up to 3 months after they receive it as many times as they want. The received cover will automatically become invalid after the expiration date and cannot be used again.

 The red envelope display, which has been sent, will not be affected.

Red Packet Cover On WeChat

Step 7: Data analysis

Following the distribution of the cover, you can view real-time distribution data. You can also check data from the previous day, and cumulative statistics on the site. It includes:

  • covers purchased,
  • covers received,
  • red envelopes issued,
  • red envelopes opened,
  • how many times users accessed the red envelope details page,
  • how many times the users view the cover story,
  • and the number of times the viewers skipped the cover story.

Red Packet Cover On WeChat

Red Packet Cover On WeChat

Conclusion

Way to carry on traditions change these days. The one thing that has remained constant is the desire to enjoy the company of loved ones during this special time of year.

Also, around this time of year, the red envelope is a great way to attract a wide spectrum of customers and build your customer base. As a result, any company seeking to build a business relationship with the Chinese market should consider taking advantage of these prospects.

If you require further assistance with customizing your red envelope, 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

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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.

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WeChat Stats 2021

December 29, 2021

Weixin, which means micro message in Mandarin, was the name given to WeChat when it first debuted in 2011. It began as a simple communication programme, essentially a Chinese equivalent to WhatsApp, as its name suggests. The platform was developed and owned by Tencent, a Chinese internet giant and one of the world’s most valuable firms.

WeChat began as a simple messaging network, but it has evolved into much more. WeChat has basically become the home screen for many Chinese smartphone users thanks to its mini programmes platform, which allows almost any operation to be accomplished from within the app.

That being said, if you want to extend your business into the Chinese market, you’ll need a strategy that centres mostly around WeChat marketing, with an emphasis on WeChat users.

Here are some interesting WeChat statistics to help you see how powerful this platform really is. After all, there’s nothing like hard evidence, right?

WeChat: Active Users
WeChat has a monthly active user base of about 1.225 billion people.

Since its release in January 2011, it has grown by leaps and bounds. It evolved to become an important aspect of people’s lives, allowing them to communicate with friends and family via text messages, voice conversations, and video calls.

The aggregate monthly active users of Weixin and WeChat reached 1.225 billion in December 2020, up 5% year on year. Every day, 45 billion messages are sent and received on WeChat.

WeChat: User Demographics
Almost 40% of WeChat users are between the ages of 25 and 35 years old. Females account for 42.8% of users, while males account for 57.2%.

25 % of WeChat users in China are between the ages of 25 and 30, while another 13.8 % are between the ages of 31 and 35. Users under the age of 24 make up the greatest age demographic (33.5 %).

This is closely followed by users over the age of 41, who account for 19.1% of the total. If your company caters to these demographics, WeChat marketing could be very helpful to you.

WeChat Pay & Mini Programs Stats
WeChat Pay is used by 87% of Chinese consumers to make online payments and WeChat Mini Programs are used by almost 400 million people every day.

WeChat Pay is the second most popular online payment service in China, trailing only Alipay. Men and women make up an equal number of users, and the majority of its consumers (34%) are between the ages of 25 and 34, with the second-largest sector (28%) being between the ages of 35 and 44.

More than 400 million people utilise Mini Programs on a regular basis, resulting in total sales (GMV) more than double in 2020.  In addition, the average number of Mini Programs utilised per user climbed by 25% year over year, and the average transaction value increased by 67%.

WeChat: Market Share
WeChat probably accounts for 10-15% of the social media market, with over 1 billion active users. WeChat, on the other hand, is arguably the most popular social site in China, accounting for 34% of the country’s total data traffic

No other app in the world has this level of dominance in such a big market. In comparison, Facebook accounts for only 14.1% of North American traffic. In China, WeChat accounts for more than double that.

WeChat: Revenue
WeChat made 108.2 billion RMB in sales in 2020. In 2019, they received 82.3 billion RMB, compared to 72.7 billion RMB in 2018.

The 2021 stats for WeChat’s revenue is yet to be released, but with their constant innovation, its revenue is expected to rise again. This year, the Chinese messenger’s mini-programs facilitated 1.6 trillion RMB in annual transactions. If the increase in revenue attributed to their mini-programs is any indicator, they’ve had a fantastic year.

The Future of WeChat
WeChat will certainly be successful in China and will continue to expand. WeChat’s penetration rate in Western countries is expected to rise as well outside of the country. COVID-19 has hindered WeChat’s growth because of travel restrictions that prevent Chinese tourists from visiting. However, once the pandemic has passed, WeChat, particularly WeChat Pay, is likely to make a more serious foray into foreign markets.

In fact, Europe has been identified as a crucial growth region. WeChat Pay had been popular among businesses that serve Chinese tourists prior to the outbreak. As a result, the number of merchants accepting WeChat Pay in Europe climbed by 3.5% in 2019. Around 11% of Chinese overseas tourism was spent in Europe.

Conclusion
The stats presented above is rather remarkable and demonstrate how strong WeChat has proven to be. So, if you haven’t already considered incorporating it into your entire marketing strategy, now is the time to do so.

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

 

 

 

 

 

 

 

 

 

 

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E-commerce Platforms in China

December 7, 2021

 The Chinese economy has grown at an extraordinary rate in the last three decades. New buying patterns have been shaped by social progress, technology advancements, and rising disposable personal incomes. 

With this growing economy, it’s no surprise that Chinese e-commerce platforms are booming. Live-streaming e-commerce, social e-commerce, and cross-border e-commerce are only a few of the new e-commerce modes that have evolved in the market. 

According to a report released by China’s Ministry of Commerce, national e-commerce transactions totalled 34.82 trillion yuan in 2019. There were 10.63 trillion yuan in online retail sales, up 16.5% from the previous year, with physical goods accounting for 8.52 trillion yuan, or 20.7% of total retail sales in the market, and online retail sales of physical goods accounting for 8.52 trillion yuan, or 20.7% of total retail sales in the market.

 

E-commerce during the Pandemic

However, the global pandemic has had a significant impact on e-commerce. Many experts agree that Covid-19 has had a big impact on consumer behaviour in the first quarter of 2020. However, by 2021, it is obvious that e-consumers have adjusted to the new global environment, with China’s numbers increasing by 17%.

E-commerce has been able to grow as a result of social networks, which have made promotion, communication, and online purchase easier. Furthermore, Chinese apps such as WeChat have made it easier for consumers to buy things directly from manufacturers.

 

How can brands leverage e-commerce platforms?

To vary their marketing, brands are increasingly developing a mix of daily short videos and live streams within their own social e-commerce platforms. Unlike traditional out-of-home advertisements, where brands are limited to the number of products advertised, e-commerce platforms may now successfully use social media to quickly showcase a variety of different products in order to attract a larger audience.

Using e-commerce platforms in China can be beneficial to a wide number of enterprises. This has become crucial for businesses as a method for generating organic traffic, accurately identifying a targeted customer audience, standing out from competitors with exclusive discounts, and reducing advertising costs.

In China, there are numerous e-commerce platforms. So, which platform is ideal for you if you want to sell your products online?

 

Some of China’s leading e-commerce players

 

  • TMall TMall, or Taobao Mall is a B2C (business-to-consumer) platform.The majority of its merchants are professionals with a legal entity in China’s company registration system. Because all of the goods on Tmall are official and authentic, the average price is higher than on Taobao.The number of international brands and merchants on Tmall Global expanded by 60% year over year as of December 31, 2020. At the same time Paid GMV on Tmall Global increased by 37%.

    This platform is ideal for luxury brands, apparels, electronics, cosmetics and skincare sectors.

 

  • TaobaoTaobao is China’s largest consumer-to-consumer (C2C) e-commerce platform. The website is owned by Alibaba Group, a Chinese internet and technology corporation based in Hangzhou. According to a 2020 report, the platform’s monthly active mobile users reached 902 million, with a rise of 22 million in a single quarter, and yearly active consumers reached 779 million.

    This platform is ideal for all kinds of online businesses.

 

  • PinduoduoPinduoduo is a new but competitive e-commerce platform in China. It was formed in 2015, yet it only took four years to attain a trillion-yuan gross merchandise volume.  Its main benefit is social e-commerce, where consumers invite their friends to buy things and receive discounts.According to Pinduoduo’s most recent financial report, the number of active purchasers on the platform reached 788.4 million at the end of 2020, up 35% from 585.2 million at the end of 2019.

    This platform is ideal for the agricultural and food sectors.

 

  • JD.comWhen comparing Taobao to eBay, JD.com, the second largest B2C platform is comparable to Amazon. It primarily sells 3C products, including cell phones, laptops, and home appliances. They source products directly from brands and suppliers, who then distribute them to clients via JD.com’s official courier.JD Daojia, JD.com’s grocery services. With a total GMV of RMB 21.3 billion in 2020, it grew 102.9% from the previous year.

    This platform is ideal for apparel, electronics and fresh food sectors.

Social commerce

  • DouyinOne of the most popular social media networks, Douyin, the Chinese version of TikTok, is working on an e-commerce website. Since June 2020, ByteDance, the company that owns Douyin, has established an e-commerce department as the first level business unit.Douyin E-GMV commerce’s topped 500 billion yuan in February 2020, more than tripling that of 2019.

    This platform is ideal for the cosmetics, accessories, clothes and food sectors

On our blog, we’re also covering e-commerce on Kuaishou. You can also learn how niche perfume brands are accelerating on e-commerce platforms.

Conclusion

The Chinese internet market is by far the largest in the world, with over 850 million subscribers. Even though China has not yet achieved high-income economic status, it is well on its way, with income levels in the largest cities now approaching those of the most advanced economies. 

Furthermore, the country’s technological thirst propels the e-commerce business ahead, making it a leader in a number of categories, including mobile commerce and payments.

The current situation today in the Chinese eCommerce market is exciting. Because platforms are competing to be the most appealing to customers and companies. This competition not only implies more tools for merchants and consumers, but it also means less stringent registration criteria for companies looking to register on these platforms. 

Hence, this is an ideal way for international companies to reach the Chinese market. 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

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Top 5 alternatives for LinkedIn in China you need to know now

November 29, 2021

Linkedin, the world’s most popular professional social networking site, recently announced that it will cease operations in China due to a “significantly more challenging operating environment and greater compliance requirements in China,” according to Mohak Shroff, LinkedIn’s senior vice president of engineering. LinkedIn has been the only major Western social networking platform operating in China for nearly seven years.

China was LinkedIn’s second-largest market behind the United States, with over 54 million users. They would lose access to a platform for networking with professionals from other nations as a result of its departure. There are none with a similar global reach in China.

However, there are a few Linkedin alternatives to consider for users in the world’s most populous country, and here is a list of a few of them.

⚠️ August 2023 UPDATE: WeChat as a LinkedIn Alternative in China – Navigating Professional Networking Beyond Borders

Alternatives for Linkedin

Maimai

Maimai is a China-based career and social networking platform with over 80 million users. Lin Fan established the platform in 2013, and it is now China’s most popular professional social networking site, surpassing LinkedIn. 

You may acquire access to relevant firms, clients, and investors by using MaiMai instead of wasting time on other random and foreign platforms looking for the right partners. And since China’s corporate structure is so complex, such platforms make it easier to communicate directly with the company’s decision-makers.

 

Angelist

Unlike LinkedIn, Angelist focuses on entrepreneurs and industry newcomers interested in pursuing a new career path.

If you’re wanting to invest in a startup, raise capital for your own startup, or recruit professionals for your firm, AngelList is the place to go.

 

Xing

Xing is a European-Asian version of Linkedin, with over 200 countries represented and a multi-language (over 16 languages) interface to aid networking in a culturally varied world. 

Another appealing feature is the opportunity to attend events organised by Xing’s “Ambassadors,” where professionals may network, share ideas, and seek business guidance.

 

Hired

Hired is a great place to look for a job if you’re looking for one. They’re a two-sided marketplace that connects cool companies with tech talent while also providing free professional profile hosting.

 

Meetup

Meetup is the most preferred LinkedIn alternative because of its corporate features, social features, easy registration procedures, and new “virtual interview” tool for speeding up recruitment processes. 

Meetup will keep you up to date on any events that may be of interest to you and are strongly recommended when applying for jobs at startups. It is used by 16 million people in 196 countries throughout the world.

 

Conclusion

Overall, it is critical to emphasise the significance of networking in China. Many contracts and economic ventures are agreed upon based on people’s contacts. So, if you want to flourish in the very competitive Chinese market, you’ll need to make some “good friends” who can assist you and your company.

So, regardless of which platform you choose to join, social business networking is important and may assist you in developing these contacts, which can help you grow your business in China.

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

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What is Zhihu? And 4 key benefits of using it.

November 23, 2021

WeChat, Weibo, and Douyin are almost certainly the first platforms that come to mind when it comes to social media marketing in China. While Zhihu may not be as well-known on a global scale, its reputation is unmatched. As one of China’s most reliable, expert-led social media platforms, it is worthwhile to investigate further.

Zhihu, which was founded in 2011, distinguishes itself from its competitors by offering high-quality questions and reliable responses. 

Its name is derived from the classical Chinese phrase 

“Do you know?”. 

The platform’s main feature is that users can ask and answer questions on a variety of topics, from software development to postnatal care

People can rate, bookmark, share, and comment on responses, as well as invite individual users to respond to their queries. Experts and professionals from a variety of industries utilise this platform to offer high-quality thoughts. 

According to the platform’s SEC registration statement, Zhihu is one of China’s “top five comprehensive online content communities.” It has 76 million monthly active users and 43.1 million cumulative content creators who have published 315.3 million questions and answers since it began as an invite-only service (as of 31 December 2020). 

Zhihu Marketing and its Benefits

Any company that wants to reach educated professionals in China with more disposable income should advertise on Zhihu.

However, certain brands will gain more than others from Zhihu marketing. Those in the B2B, IT, or professional services industries, for example, would be in the best position to boost brand awareness by providing true value to platform users. Whereas, fashion and beauty brands, on the other hand, are unlikely to succeed unless they’re expressly targeting the professional market.

 

Key Benefits 

 

  • Raise brand awareness by organising a Q&A session
    Zhihu is popular among the well-educated. According to studies, 80% of registered users have a bachelor’s degree or more, and 20% have had international educational experience. Zhihu’s user base is made up of people who have a lot of money, a lot of spending power, and a lot of knowledge, and who can talk about more high-level, technical, and premium issues.
  • 3rd-Party Mentions Can Help You Build Trust
    Being mentioned on the platform can help your company create credibility and go viral through word-of-mouth within the community because the majority of the users are well-educated. Many people come to Zhihu for in-depth evaluations and research when they need to make a purchasing decision, making it an immensely strong tool for soft-selling and influencing long-term buying decisions.
  • A well-educated user base
    Zhihu receives around 26 million daily visits on a typical day. This indicates that it is commonly used by Chinese internet users. As a result, Zhihu is an excellent platform for showcasing your brand to a big number of educated and well-off people. Given a large number of users and the platform’s “Q&A” character, this is a great platform for increasing brand visibility or marketing a new product.
  • High search engine authority
    Many popular search engines, such as Baidu, Sogou, and 360.com, rank Zhihu extremely high. It has a Baidu domain authority of 8/10 and a 360 search domain authority of 9/10. This demonstrates that major search engines trust Zhihu material, making it simpler for the platform’s content to rank high in search results.

 

Conclusion

Asking and answering questions, particularly ones that connect directly to your brand’s expertise is the simplest method to engage with the community. Users don’t respond well to overt promotion, so content should be meaningful and informative rather than brand-focused. 

Additionally, some of the platform’s newer features, such as Zhihu Live, can be used by firms to demonstrate their competence; for example, a cosmetics brand could live stream basic beauty demonstrations.

The company is preparing to develop a national knowledge-based content platform, thanks to some recent investments. It intends to expand spending on content, knowledge services, and marketing, as well as artificial intelligence technology for better content personalization. Therefore, with a large number of high-level intellectual users, Zhihu provides lucrative marketing opportunities for brands and organizations.

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 a digital marketing strategy that better targets and engages Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

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