As a Western brand looking to build your presence in China, it’s important to understand what these changes make to the ways that you market to your target Chinese audience. With that in mind, here are four new shopping trends that have emerged in China after Covid:

1. A drive towards online shopping

Chinese social media users have described a trend towards ‘revenge consumption’, which seems to have been backed up by online shopping figures. JD.com experienced a 74% year-on-year transaction volume this year for its 618 grand promotion which is the country’s biggest summer shopping festival.

Certainly, there has a big drive toward online shopping. When Covid broke out during Chinese New Year, shops had to close so customers headed online. E-commerce in China has long been highly evolved with sophisticated logistics and supply chains, so customers could easily buy their essentials during lockdown, In fact, from January to April this year, China’s online shopping hit $360 billion in value. The migration to online shopping has persisted long after lockdown, and analysts believe that the pandemic’s restrictions saw customer online shopping habits jump by up to two years. This is particularly the case in categories such as groceries, with JD Super, the online supermarket, seeing a 100% total sales increase compared to day one of 618 the previous year.

2. Younger consumers taking on family responsibilities

Young people have driven lockdown shopping as they are naturally savvier when it comes to using digital technology. Young people also took on more responsibility during lockdown and began shopping for necessities for their entire family, rather than just themselves. When young people left major cities to go home to their lower-tier cities, they also encouraged their families to begin to shop online and by doing so help to help brands reach a foothold in lower-tier city markets.

3. Livestream and community group buying lead the way

Social distancing led to a boost in social e-commerce and live streaming in particular, helping local businesses and international brands both grow their sales. The closure of high street stores and travel restrictions didn’t dampen China’s love of big global brands – customers head online to interact with their favourite luxury brands online, and these businesses used sales, promotions and celebrity partnerships to retain loyalty. PORTS, the Canadian fashion brand, hosted a 9-hour live stream on JD, featuring Elle magazine’s fashion editor and various celebrities. The live stream was visited by 1.3 million customers and the brand took over $1.4 million in sales that day.

4. New trends in desired product features

Customers are now more cautious about their purchase decisions and keen to buy products which are good value for money, comfortable, sustainable and – increasingly – customised. Customers are still interested in products for the home, but also clothing and health and wellbeing products. Demand for pet products is also still high, and there is a particularly big trend for bikes in post-Covid China.

Brands are also finding other product category developments. For example, sales of eye make-up remained high over lockdown but lipstick sales went down because of the mask mandate. But as masks become less conspicuous, lipstick sales are growing once again, and there is also a growing resurgence in international travel as borders open up once again.

What do new Chinese shopping trends mean for Western brands? So what does this mean for Western marketers? Here are some things to consider and invest in:

1. Revisit your market research

Good market research is the cornerstone of all successful Chinese marketing campaigns. But the speed of change since the Covid pandemic means that your data may well need updating. Are you up to speed with your Gen Z customers’ love of personalisation? Do you know what your Millennial customers want from eco-friendly and sustainable brands? What about their parents? If you have gaps in data or haven’t tested your data since the pandemic, then now is a great time to invest in some target Chinese market research. Good research invariably informs better decisions and the ROI can be powerful.

2. Check your channels

Yes, Chinese social media platforms such as WeChat and Sina Weibo are still hugely important to brands, but there are other niche Chinese social media platforms gaining traction, particularly for certain topics and audiences. It may be time to review which ones you are using – and how. For example, are you using livestreaming? Are you partnering with the right KOL?

3. Review your content strategy

Chinese customers are keen for reassurance after the pandemic, and this is very similar to trends seen in the West. Brands can anticipate this and plan around it. For example, travel brands can promote their safety practices, educational institutions can talk about their pastoral care offer and student support, and consumer goods can describe how their products are of high quality, and made in a way that supports the environment.

A Chinese marketing agency can help you to get these elements correct in the post-Covid world. As ever, success lies in getting the fundamentals right, with regular checks and resets as needed to steer your marketing plan in the right direction. We currently recommend to our clients that they consider refreshing their market research to update their customer profiles, review their channels and content strategies to see what is working and what might need adjusting, and reestablish their goals for this new and exciting post-Covid era in China. After all, the Chinese economy is rebounding strongly, Chinese customers are keen to shop and enjoy life again, and Western brands have a huge opportunity to grow successful, strong brands in China if they use the right strategies.

Contact us today

To better understand Chinese marketing trends in the post-Covid world and to position your brand for success with the right digital marketing strategy, please contact Market Me China. Our team of native language speakers and digital marketing professionals have the expertise, insights and skills that you need for success and we take real pride in helping our clients to achieve excellent results. We work with our clients on a flexible basis according to their needs and have an excellent track record. We look forward to hearing from you!

The post Four new shopping trends that have emerged in China after Covid appeared first on Market Me China®.

The changing face of couture in China

Until recently, China customers craved their couture from the original luxury European and American fashion houses, with brands such as Gucci, Prada, Cartier, and Chanel representing the ultimate in desirability for Chinese fashion lovers. But the market is evolving, and now the ‘Made in China’ marque is gaining traction and value in this sophisticated market. In fact, brands such as Burberry and Louis Vuitton have even closed flagship stores in key cities in China due to a slump in demand, and a significant artistic, cultural and aesthetic shift is now occurring in the fashion space.

Chinese designers such as Hu Sheguang, Yueqi Qi and Guo Pei are now appearing on catwalks the world over – from Paris to Shanghai, and interest in these home-grown brands is growing sharply, especially amongst Chinese millennials and the emerging Gen X market. After all, these designers have been trained in the most prestigious global fashion schools and then brought their skills back home to China, which is home to the most technologically advanced production facilities – and huge demand from wealthy customers.

True, the global market for luxury consumption has wavered in the wake of the pandemic, and many countries chose to put their national fashion weeks on hold this year (with China Fashion Week in May being a notable exception that put local talent firmly in the spotlight, including YoungX, Jumper Zhang and L’arôme.) But perhaps the bigger challenge that has faced Chinese designers is the lingering and formerly negative connotation of ‘Made in China’ – now only just moving away from a sense of mass-produced inferiority (and fakes), to a sense of fashion-forward, innovative and top-quality products.

For years, European brands have been producing many of their lines in China, which actually boasts some of the world’s most dynamic and cutting-edge textile factories and manufacturing facilities. At the same time, young Chinese designers have been heading abroad to learn their skills, and are now returning home to make their mark. Suddenly, the reputation of ‘Made in China’ products is changing, and Chinese customers are becoming hugely excited by what they see in terms of uniqueness, textile engineering, fashion insight and production credentials, including sustainability.

In China, the fact that the country’s luxury consumer market is still rocketing at a dizzying pace is good news for designers, with customers who are keen to try new things as their wealth and status grow. Designers like Zander Zhou, Samuel Gui Yang and Guo Pei are celebrating a ‘proudly made in China’ strategy which is allowing them to win global success.

What do fashion brands need to know about Chinese fashionistas?

In China, affluent young customers do not want to have the same designer products as their peers – unlike in the West. They want to express their unique identity rather than follow trends blindly. Furthermore:

– They are strongly patriotic and naturally inclined to support Chinese brands – with ‘post 95’ customers invariably opting for Chinese brands.
– They are the ultimate nouveau riche, especially in the Gen-Z category, and hungry for new experiences and products.
– They crave self-expression and individualism – and the sense of ‘individual exclusivity’ – but with a sense of heritage and a recognition of the value of their traditional upbringing.
– Millennials and Gen-Z Chinese customers also want humour and a bit of swagger, and they are hugely fashion-forward, especially compared to earlier generations. This means that edgy, daring fashions are gaining traction in this market.
– Young Chinese customers are also very willing to buy Chinese brands, and many European fashion houses have closed their flagship stores across China as a result of slumping demand.

How Western fashion brands should respond

It looks increasingly as though the ‘Made in China’ value proposition will successfully reposition to one of quality, innovation, technological advancement and overall desirability, especially amongst younger Chinese customers. But Western brands needn’t fear. The market is becoming less competitive as many incumbent Western brands have bowed out of the Chinese market during the pandemic. For smart, nimble and creative fashion brands, there are fantastic opportunities in China – with the right digital marketing. To maximise your chances of success:

1. Take your time to build your brand story and communicate it effectively, investing in this over time rather than looking to ‘shift products fast’.
2. Really invest in your digital marketing platforms and e-commerce offer so that these assets are seamless, slick and offer a superb customer experience, with familiar Chinese payment platforms, rapid fulfilment and so forth.
3. Work with the right KOLs to promote your fashion products to tightly defined niche target audiences
4. Consider partnering with Chinese brands to create exciting new collaborations which bring forth the best from different designers and cultures – the ultimate in ‘individual expressionism’.
5. Consider working with Chinese suppliers, artisans and partners in order to leverage your own domestic Chinese manufacturing links, with that necessary emphasis on being proudly ‘Made in China’.
6. Really invest in market research that allows you to define, understand and serve a niche in the best possible way – always understanding the unique attributes of the audience that you serve and recognising that your Chinese target audiences will invariably have different needs, wants, desires and characteristics to your Western customers.

Access expert help

Market Me China can help Western fashion brands to experience success in China. From setting up powerful KOL relationships and social media advertising campaigns, to running successful Baidu PPC campaigns, our native Chinese digital marketing experts understand what makes Chinese customers tick – and what Western brands need to do to be successful in this vast, sophisticated and tech-savvy market.

To find out more, please contact us in the first instance and we will be delighted to have an informal chat about your brand, your aspirations and the digital marketing services that we can offer you to assist, working on a flexible basis according to your business needs. We look forward to hearing from you.

The post Changing luxury fashion trends in China – and what it means for Western brands appeared first on Market Me China®.

Why the Chinese beauty market matters

In terms of market value, the Chinese beauty market is second only to the USA on a global scale, and it’s one of China’s biggest and fastest-growing industries. [1] It’s important to know as well that eCommerce is a real driver for China’s beauty and personal care market – currently representing about 38% of sales and growing. [2]

Success tips for marketing your beauty brand in China

Every beauty brand will need its own unique strategy, but these focal areas are always important to consider:

1. Knowledge: that Chinese digital marketing never stops!

The Chinese digital ecosystem is usually one step ahead of Western equivalents and constantly evolving at a dizzying speed. This means that Western brands have the challenge of understanding constantly evolving trends, customer behaviour, market shifts and new channels – in Chinese! It can certainly make things easier to use the services of a digital marketing agency to devise an impactful, successful strategy with a ‘right the first time’ ethos.

2. Research, research, research

If you have an established brand in the West and some degree of sales in China, research the Chinese social media platforms to see what kinds of mentions you already have – using quality indicators as well as quantity. If you are new or have minimal social traction, then focus on building your brand in your target Chinese market. You will need a localised Chinese brand marketing strategy that focuses on winning the hearts and minds of your target Chinese customers, with all of their digital savvy!

3. Influencers: Find your KOL

A great KOL relationship can make or break your brand’s success in China’s beauty market. Find a KOL with brand values that are congruent with your own, and a persona that supports your brand. See if the KOL has done similar brand promotions and establish how successful they were. Does your audience match your target customer? Equally, are you ready to persuade KOLs about the quality and reputable nature of your brand? All good KOLs want to endorse quality brands for a win-win result – so prepare your own pitch and approach to build a relationship with a target KOL. Again, a Chinese marketing agency can assist with this.

4. Integration: Your KOL to your broader strategy

Your market research should have revealed partner profiles that attract the right customers to your brand. The beauty of the right KOL is that they will be able to build an authentic sense of affinity with your brand, raising its profile in the process with Chinese beauty lovers. A KOL might set a beauty topic that links with your brand and lead discussions, encouraging Chinese customers to talk about their brand experiences online. The right foundation of KOL partnership with ongoing interventions and key events or points in your campaign should result in a sales increase.

5. Live streaming: essential for beauty brands in China

Live streaming isn’t as popular in the West as it is in China, where customers love it! Chinese online platforms such as WeChat mini-programs, Alibaba Taobao Live and JD.com are optimised for this type of e-commerce based live streaming, along with Douyin, the short-video platform. Thanks to the excellent degree of targeting available, it is possible to put your high-quality, targeted beauty brand content in front of the right Chinese customers.

6. Partnerships: worth investing in

Babor, the German skincare brand is successfully partnering with Beauty Farm, the Chinese beauty chain, and its Tmall store already has over 20,000 fans. This partnership has allowed Babor to broaden its range and leapfrog into the right customer markets, and it now has huge plans for growth. These kinds of strategic partnerships can be excellent for niche beauty brands wanting to make their mark in China.

7. Targeting: for your products

Young Chinese customers want quality, organic, vegan and cruelty-free products – with options for personalisation and seasonality. They love fun, fashionable, high-tech concepts and products made for special occasions, such as important Chinese festivals. For example, Perfect Diary used WeChat, Weibo, and Tmall to launch a special Mid-Autumn Festival ‘Jade Rabbit’ eye palette, in partnership with China Aerospace Science. Further KOL partnerships brought the product to life with product tutorials and showcases. The #PerfectDiaryRabbitPalette hashtag had over 110 million views alone and the campaign was a huge success (and lucrative result) for the brand.

8. Digital assets: an optimised, holistic and organised system

From your smartphone-optimised website and app through to your Tmall store, Chinese social media platform presence, KOL relationships and content strategies, it’s essential to integrate all aspects of your Chinese digital marketing campaign for your beauty brand. The better you can create a seamless, integrated digital experience that allows your customers to find your brand, engage with it and buy your products in a few quick clicks, the better. Equally, the better you can leverage the deep data available on many of China’s digital marketing platforms – from Baidu for online advertising to Little RED Book (Xiaohongshu) for social engagement, the better your insights and ability to create a successful campaign.

Find out more

Ready to launch and grow your beauty brand in China? Market Me China is here to help you succeed, with a team of experienced digital marketing professionals who can work on a flexible basis with your brand, to secure your goals. With native language skills and cutting-edge Chinese digital marketing know-how, we evidence our value and can support you at every stage of your digital marketing journey. Contact us today to find out more.

Sources

[1] https://www.statista.com/topics/1897/cosmetics-in-china/

[2] https://www.euromonitor.com/beauty-and-personal-care-in-china/report

The post How can new beauty brands use Chinese social media to market in China? appeared first on Market Me China®.

Optimism and growth

In its deep-dive report into the post-Covid Chinese economy (source: China consumer report 2021 – Understanding Chinese Consumers: Growth Engine of the World), consulting giant, McKinsey reminds Western marketers that China is placed to remain the world’s economic engine. Firstly, its consumers are more optimistic than in other parts of the world (50% reporting optimism, compared to 22% in the USA), and they have reason to be, as China has managed to gain a tight degree of control over further Covid outbreaks, even as other governments battle their second and even third waves.

Digital is accelerating

Secondly, the Chinese middle classes were already affluent, sophisticated and actively buying Western products and services before the pandemic, and the growing shift to digital marketing and eCommerce has only heightened this trend. Yes, overseas travel is limited – but China’s travel fans are already researching their next international trip. Yes, Western universities have moved a large degree of their provision online – but again, Chinese customers have the technology, the appetite and the readiness to engage with high-quality digital learning. And when it comes to eCommerce, the nation already leads the way with its greatly advanced digital infrastructure, which was perfectly poised to handle the migration to socially distance online shopping on a mass scale.

So let’s look at some of the main trends emerging in China as a result of Covid:

– 55% of Chinese customers say that they expect to keep buying groceries online.
– Beauty brands have also done exceptionally well online, leveraging their existing digital presence and ramping up their social engagement on platforms such as WeChat to better reach customers.
– 25% of customers tried remote learning and tutoring for their children in lockdown – something that Western education brands will do well to capitalise on in the longer term, as McKinsey’s research suggests that online learning is a trend set to stay.
– Similarly, Chinese customers began to heavily engage in other digital services such as online fitness programming and video chat, offering interesting opportunities to Western brands. The Chinese fitness app, KEEP, used Q&A fitness tools to achieve 56 million Chinese customer views in just one week!
– Naturally, food and beverage sales migrated heavily online during the crisis, but – again – McKinsey expects to see the ‘at home’ entertaining trend to remain strong into the future, in line with Western consumer trends post-Covid. Tsingtao used the pandemic lockdown to launch a no-contact delivery service across 300 cities with a huge level of success.

Customer behaviour trends

Other shifts in Chinese buying behaviour are being noted too. For example, Chinese shopping and consumption habits after Covid are more influenced by trust and product safety. Chinese customers are more concerned about their health and wellbeing than before the virus and are keen to continue to invest in positive lifestyles. 45% of Chinese customers are also doing more research before they buy products (in a nation already renowned for doing its post-product research carefully!) Western marketers can use this insight to provide rich, meaningful product descriptions and quality assurances that give Chinese customers trust and reassurance that they are buying authentic, high-quality products from reputable brands.

It’s also interesting to note that brand trust is becoming more important, along with the propensity to switch. A third of Chinese customers switched to a fresh brand during the pandemic, and 82% began buying from a brand because of the way that it carried out social, ethical and compassionate business practices during the pandemic. Again, these are interesting new directions that mirror growing trends in the West for ethical, sustainable business.

Takeaways for Western brands

Whatever your sector, now is certainly the time to invest in market research to understand how Covid has impacted on your business, your competitor landscape and your target customer audience. This is valuable to do before making any adjustments to your marketing strategy, to inform your next steps.

Certainly, digital marketing and e-commerce channels will continue to grow rapidly in China, and it looks as though Covid has accelerated this shift even more! Brands should be viewing their online strategy in China as a core part of their delivery model and look at omnichannel marketing strategies with clear digital key performance indicators to measure success.

Brands that operate in China must assess how they blend online and offline channels, including the use of e-commerce market places, direct-to-consumer channels, physical channels and social commerce, ascertaining whether each channel is being used to drive sales, to build brand awareness or to engage customers. This will assist with budget allocation.

Now is also a good time to review supply chains and check that existing supply networks are robust and ready to move ahead after the challenging year.

More broadly, this is also the time to begin thinking as broadly and creatively as possible as we approach a changing world and one where people have been greatly affected by Covid-19. Brands that spend time blue-sky thinking at this stage, carrying out targeted research and looking at case studies of what other innovative companies are doing well will find themselves well equipped to build a successful presence in China.

The help that you need

Market Me China is here to help you to succeed with your Chinese digital marketing – whatever your industry, experience or current position in the Chinese market. Our digital marketing professionals blend native language skills with rich digital experience in fields that span Chinese website build and optimisation, Baidu PPC advertising, Baidu SEO, social media development and advertising, KOL engagement, ePR, digital content management, market research and more.

We work remotely with our clients as required and evidence our results at every stage to demonstrate the value that we add to your brand. Please contact us in the first instance for a no obligation chat about your needs and we will be delighted to assist.

The post How has Covid reshaped Chinese shopping and consumption habits? appeared first on Market Me China®.

China’s luxury goods market is helping to reinvigorate China’s economy, and it is expected to rebound sharply after the pandemic’s global downturn. But how has China’s luxury goods market changed in the past year?

During the Covid-19 pandemic, China’s luxury goods manufacturers switched their production away from high-end designer products to the essentials of the health crisis – producing masks and PPE and donating money to charities working on the Covid frontline.

Now, those brands are working hard to establish longer-term impacts. Analysis from McKinsey [1] suggests that the following changes may result:

1. Structural changes

Before the world even knew about Covid, independent European wholesalers of luxury goods were beginning to struggle, along with some of the luxury department stores of North America. This was partly driven by a structural move to more vertical integration models which had begun some years previously – accelerated by the recent surge in e-commerce. Some of these wholesalers, boutiques and stores are expected to go out of business, and those which survive are expected to embrace aggressive discounting and commercial policies which could negatively impact the market position of brands without concession models – at least in the near term.

2. Local shopping

Luxury goods have always been associated with global consumers, with up to 30% of these purchases being made outside of a customer’s home country. Chinese customers took over 150 million foreign trips in 2018 and McKinsey believes that over 50% of China’s luxury goods spending in that year was made overseas; for the lower prices, and as part of the travel experience itself.

However, international travel restrictions are likely to persist for some time and this means that brands will need to attract Chinese luxury goods lovers in a fresh way. Forward-thinking brands will seek to attract this high growth market with local, tailored experiences across digital and omnichannel platforms, and strategies that focus on customers in China’s evolving tier-two and tier-three cities. The challenges of customer service and retail logistics in these cities will be a challenge, but one that luxury brands are expected to be highly motivated to overcome; particularly for Western brands with the logistics capabilities to service Chinese markets via an e-commerce model.

3. The end of the live show?

Trade shows and fashion weeks have always been an integral part of luxury brands’ marketing campaigns and their relationship building with direct customers and trading partners alike. These shows are expected to return in time, but many Western luxury goods brands are looking at digital alternatives in the meantime, and creative means of providing that same sense of atmosphere, drama, storytelling and magic through online content. The challenge will be an enticing one for creative partners of luxury goods brands, who can leverage China’s advanced digital landscape to offer cutting-edge content experiences – without live audiences.

4. Goods over experiences… for now

Experiential luxury – the desire for experience over physical goods – has been one of the fastest-growing trends in the luxury industries in recent years, driven by millennials who prefer ‘Instagrammable moments’ over physical products – and then followed by Baby Boomers who had already brought a lot of physical luxury goods and were also moving towards more experiential purchases; think of high-end restaurants, resorts, cruises and hotels for example.

However, research suggests that there will be a growth in luxury physical goods sales again – at least in the short-term – with customers seeking out reassuring, high-end, quality possessions that they can enjoy while awaiting a return to normal life and free travel. Once international travel and other restrictions are ended, it is expected that the trend for high-end experience consumption will surge once again. This offers opportunities for luxury brands of all kinds to implement impactful digital marketing campaigns that appeal to their target Chinese audiences now – whether for immediate conversions or for longer-term brand positioning in anticipation of future sales.

Steps for luxury brands to take now:

a. Review your current inventory and consider 2021 collections – ideally without resorting to any deep discounting to manage excess stock.
b. Accelerate your investment in digital marketing to engage target customers and to grow your e-commerce channels.
c. Reassess the strength of your supply chain – recognising that, for luxury goods, in particular, many manufacturers are still not operating at capacity.
d. Begin thinking about how you can put digital at the heart of your entire operating model, for a robust ‘pandemic safe’ sales channel that can overcome any future local restrictions.
e. Revisit your customer and market research, to understand how these may have changed in the past year.
f. Focus on building a culture that embraces flexibility, innovation and resilience, to succeed in testing times!

In conclusion

The luxury goods industry is used to reinventing itself. Western brands were already waking up to the emergence of powerful native Chinese luxury brands, changing Chinese consumer trends and the impact of global politics on trade – before Covid was even a factor! There is no doubt that the sector will continue to succeed – although some brands will emerge in a stronger position than others. Success will rest on the ability of brands to adapt to the short-term demands made as a result of Covid, whilst planning ahead to meet longer-term changes in underlying customer demand.

Western luxury brands should almost certainly be using this time to invest in their digital marketing activities and their strategic campaign planning. Whether those brands are in sectors that can now operate freely (such as e-commerce) or planning ahead for a return to full commercial form in the near future (such as luxury travel), there is everything to play for in a market where China’s customers have money once again, the intention to spend and high optimism about their economic prospects.

The help that you need

Market Me China is here to help you succeed with your digital marketing efforts in China, whether your business operates within the luxury sector, or a different market entirely! Our team of highly experienced marketing professionals blend native language skills with deep Chinese digital marketing experience to bring measurable returns to our clients and their bottom line.

We help to develop and deliver impactful Chinese digital marketing campaigns that are tailored to every client’s unique needs – and naturally, we can work on a distanced basis in line with current working practices. Please contact us in the first instance to discuss your needs and we will be delighted to help.

Source

[1] China consumer report 2021 – Understanding Chinese Consumers: Growth Engine of the World, McKinsey

The post How China’s luxury goods market has changed during Covid appeared first on Market Me China®.

Chinese customers know what they want. They love rich and entertaining digital experiences, quality Western brands and luxury goods. This makes the market particularly appealing to western brands that offer ‘heritage’ and high-end products, such as watches, bags, couture and designer fashion and jewellery.

But when your eCommerce brand is new to marketing in China, and potentially has a limited budget to make an impact, how can you compete with the big brands in China?

The answer lies in a threefold approach:

1. Starting small
2. Testing at every stage
3. Evaluating the results and adjusting performance on a continuous, systematic basis.

Additionally, the old adage about ‘failing to prepare, preparing to fail’ holds true here. Even the smallest, newest Western eCommerce brands can enjoy success if they put in the research, think strategically, plan well and use the right tools and expertise to deliver highly targeted campaigns of the highest quality. An investment in preparatory customer and market research will never be a misplaced one!

Additionally, every brand will have a different offer, slightly varied operating model and route to market, and different objectives. With this in mind, every marketing plan will vary and be tailored to suit these unique factors. However, at Market Me China, we would tailor-make a strategy depending on your brand, objectives and budget. In general, the following activities are recommended for success:

1. Build a Chinese microsite

Your Chinese microsite is essential to success and will form the digital hub that underpins your entire Chinese online marketing campaign. With this in mind, the site should be built to appeal to your customers’ user journeys (which tend to be different from the typical user journeys undertaken by Western customers.) Begin with your user persona, to really understand who your ‘ideal’ Chinese customer is. Using this, create targeted content in Chinese, and consider your imagery carefully so that it is relevant, aspirational and appealing to your audience. Make sure you have integrated payment platforms that are familiar in China, such as AliPay, WeChatPay and UnionPay. It’s also important to test your site beforehand with user testing, in order to iron out any issues before you go live. Naturally for such a hyper-connected audience, your microsite will also need to be mobile-friendly and responsive, and it will need to load quickly in order to rank favourably on Baidu, China’s leading search engine.

2. Use online PR for ‘noise’

If your brand is new in China, the right online PR campaign will help to create a buzz and raise awareness and interest in what you have to offer. Remember that Chinese people are generally suspicious of official media outlets, so the right trade, consumer and independent news platforms are viewed as providing useful recommendations and value to this audience, who like to carry out their research before they buy. With the right online PR campaign, you will build trust in your brand, see its recognition and reputation grow within the right market segment, build its value, and leverage the power of Word of Mouth marketing.

3. Set up the right social media accounts

Social media in China is hugely popular, with a large number of platforms that include WeChat, Weibo, DouYin, YouKu, Little Red Book and many others, including niche and subject or audience-specific social media sites. You’ll need to set up a brand presence on the right social media channels to reach your target audience and consider how you might use Key Opinion Leaders, or KOLs, for sponsorship or partnership arrangements. There are KOLs for every brand, every product and every budget, and a Chinese marketing agency can help you to broker the deal. Social ads are another important area to get right, particularly the use of WeChat ads, which can be carefully optimised to reach your target audience – without breaking the bank! Additional features are also available to brands for their marketing, depending on the social media platform. This can include anything from short videos and tip-sharing through to private messaging and group hosting, and direct e-commerce functionalities. As ever, the help of a Chinese digital marketing agency can be invaluable here, as ad campaigns on platforms such as WeChat and Baidu (see below) are created and managed in Chinese.

4. Run Baidu PPC campaigns

Baidu is the Chinese equivalent of Google, and just as crucial to your online marketing success. A good Baidu PPC campaign will allow you to rapidly build an online presence by showcasing adverts alongside relevant searches. In China, online advertising is seen in a positive light; as something of value, which denotes a reputable brand. A good Baidu PPC campaign will use your budget effectively to drive qualified traffic to your website – resulting in everything from leads to sales, depending on your objectives. However, the key to success lies in setting the right, targeted parameters in the system, which is of course in Chinese – and then constantly measuring the results of your campaign to implement ongoing micro-adjustments for maximum ROI.

Find out more

Market Me China works with Western e-Commerce brands. Our digital marketing experts blend marketing expertise with native Chinese language abilities to offer measurable value to our clients. Our team can work with you at every stage of your journey towards Chinese marketing success – from market research and campaign planning, through to post-campaign evaluation and analytics. We offer flexible, bespoke services according to every need, supporting your in-house resource where it exists – and delivering an entire marketing service for you where it doesn’t! During this current period of Covid-19, we are also working virtually with our clients to deliver the same high-quality marketing services, whilst maintaining safe business operations. To find out more, please contact us on a no-obligation basis to discuss your needs.

The post How Western eCommerce brands can compete with big brands in China appeared first on Market Me China®.

Seizing the opportunity

Golden Week in China 2018 may be designed to celebrate the creation of the People’s Republic of China, but it also sees a significant surge in spending at Western brands. Last year, as part of the international travel surge stimulated by Golden Week, Chinese tourists spent £29m in the UK’s shopping centres and £11m in London alone (Source: www.independent.co.uk). Spending by the average Chinese visitor was also a healthy £1,478 (Source: www.chinadaily.com.cn); representing an attractive target market for Western e-commerce brands, whether they operate solely in the online space, or sell through a blend of physical stores and digital retail channels. Even more enticingly, research suggests that Western brands are seen as being desirable by 83 per cent of Chinese shoppers (Source: www.marketingweek.com).

Planning ahead

If you’re keen to maximise the opportunity of Golden Week in China 2018, then it’s time to start planning your marketing campaign strategy ahead. Chinese online shoppers are a huge market, but as the world’s largest middle class they are also demanding and courted by a huge number of large Western brands with sophisticated marketing strategies, an in-depth knowledge of the Chinese market and the support of specialist Chinese marketing agencies.

Activities which must be factored in

1. Research and plan

With a population of nearly 1.38 billion people, Western brands must position themselves carefully to attract their desired segment of Chinese online shoppers. As Golden Week in China 2018 is just around the corner, it’s also essential to start planning quickly. Marketers must understand target audiences, buyer personas, appropriate channels and the demographics that influence Chinese buyer behaviour, which include cultural factors, regionalism, socio-economics and politics.

Successful e-commerce retailers will realise that they cannot simply rework their Western marketing campaigns into Chinese language versions and expect them to succeed. The insights and knowledge provided by a specialist Chinese marketing agency can greatly speed up the effectiveness and outcome of this vital preparatory stage, in order to create the right multi-channel marketing strategy that will achieve desired conversions whilst remaining within budget.

2. Think about experiences

Quirky, innovative and engaging campaigns are essential to stand out from the crowd. With the target audience identified, Western e-commerce brands can consider marketing tactics that will add a little extra for Golden Week. For example, the Cambridge Satchel company promotes its red satchels for the week – an auspicious colour – and offers complimentary gift-wrapping. Watches of Switzerland launched a WeChat quiz that matched Chinese players’ personalities with hidden travel gems around their Regent Street store in London and a virtual shopping list for their products (Source: www.marketingweek.com). High-end stores such as Harvey Nichols employ Chinese-speaking staff instore – which e-commerce brands could offer via online chat services, along with familiar payment platforms such as AliPay, WeChatPay and China UnionPay. Western brands can also offer special Golden Week discounts, add-on gifts and tax refunds, as well as ensuring that their website has bilingual information, ad banners and homepage displays that welcome Chinese visitors and content that promotes the attraction of British culture, life and products as part of the marketing process.

2. Focus on social platforms

Chinese online shoppers are sophisticated digital buyers and hyper-social when it comes to their online experiences. Successful e-commerce brands will leverage their digital presence by curating appealing content which focuses on experiences, lifestyle and Western culture. Again, this content must be targeted. For example, older Chinese online buyers tend to appreciate Western luxury goods and younger buyers crave unique experiences. Western brands must also ensure that they have a presence on the right social media platforms, such as WeChat for brand engagement and advertising (and particularly popular with younger Chinese users) and Weibo for image sharing. Remember too that these platforms are still relevant when Chinese visitors are in the UK – they use social platforms such as WeChat to communicate with friends at home about what they have seen and bought.

3. Baidu PPC

As China’s biggest search engine, Western e-commerce brands will want to invest in PPC activity on Baidu and leverage these efforts with a Chinese language website which is seamlessly enabled for mobile. However, Baidu has a complex application process for Western brands, who are advised to allow three months to navigate the administration required to be approved for advertising in advance of Golden Week. One key way around this is to use a Chinese marketing agency who can overcome hurdles and achieve faster approval.

4. WeChat and Weibo KOLs

The Chinese market values its Key Opinion Leaders, who use their social media brands to influence their vast numbers of followers. Akin to an Instagram influencer in the West, these KOLs on WeChat and Weibo will share sponsored content on their feeds that their followers will trust and naturally feel an affinity with. Again, a Chinese marketing agency can identify the right KOLs for Western B2C e-commerce brands and engage with them successfully to ensure sponsored content is shared to the desired timeframe, in advance of Golden Week.

5. User testing

Whether you create a dedicated Chinese website or offer a Chinese landing page within your existing e-commerce website, it’s important that your digital assets are working seamlessly and without any glitches. Equally, the content you create to share across your social platforms and with KOLs must be sure to resonate with your target audience in China. User testing can help you to get this right quickly and to minimise delays so that your marketing plan is ready to roll out in advance of Golden Week.

6. Offline activity

Don’t forget about your PR (including ePR for this highly digital nation!), outdoor advertising, print advertising, TV advertising and other channels, including events. Carefully targeted offline activities can be used to complement your digital marketing to leverage its effect and to increase awareness before the big event!

Find out more

Keen to put your marketing budget to its best possible use during Golden Week in China 2018? Achieve the conversions that you need with the help of our expert team of Chinese marketing professionals at Market Me China. Contact us for a no obligation chat in the first instance to discover how we can help and to better access this vast and lucrative consumer market.

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Here’s what Alibaba, along with other experts, think eCommerce in China and mCommerce in China will look like over the next few years.

Nearly one quarter of retail sales will be conducted online by 2020

According to Bain & Company, by 2020 China’s online retail market will have more than tripled in value, from RMB 2.9 trillion in 2014 to RMB 10 trillion (US$1.5 trillion). According to the report, online will account for nearly a quarter (22%) of the total value of retail sales by 2020, with the biggest drive in sales growth being B2C eCommerce in China. Of the RMB 2.2 trillion in sales accounted for online, 70% (RMB 1.54 trillion) will come from mCommerce in China.

A particularly interesting part of the report was the section where it was highlighted that the businesses succeeding the most in China’s growing online B2C sector were small companies, including those based in a specific region, those operating entirely online, and those brands that have not yet built up significant recognition. It just goes to show that with clever digital marketing, China can be a lucrative place to do business regardless of the size of your company.

China’s consumer market will double to US$6.5 trillion

Research by the Boston Consulting Group presents evidence that by 2020 an additional 100 million Chinese households, which are currently earning around RMB 60,000 (US$9000), will have entered the middle-class and affluent (MAC) bracket. As a result, around a quarter of Chinese counties and cities will see a doubling of spending power, taking consumer spending to a total of US$6.5 trillion. By 2020 the increase in disposable income will mean that there will be 800 locations in China that have a greater level of disposable income per capita than Shanghai does today.

For this reason it is important to spend the time necessary to accurately identify potential emerging markets. Thanks to eCommerce in China, you can use digital marketing to target your business to specific locations. Many of those locations may be being overlooked by larger businesses, but in five years’ time could be as lucrative for you as operating in Shanghai would be today.

Digital marketing is key to breaking new markets in China

China still promises huge growth potential. Many of its developing rural areas hold great promise as consumer demand and levels of disposable income both increase. Research by the China Academy for Rural Development at Zhejiang University suggests that all rural areas of China will have internet access within five years. That opens up a world of possibilities for online retail, including mCommerce in China. From a long-term prospective, digital marketing is key to breaking new markets in China.

(Image source: Image created by blackzheep | www.freedigitalphotos.net)

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(Image source: “Pretty Young Chinese Girl Holding Shopping Bags” | www.freedigitalphotos.net)

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Flash forward three years, and a lot has changed. Chinese consumers can buy almost anything they want using their mobile phone, and mCommerce is growing at an astounding rate. What could another three years do for the marketplace? What will mobile eCommerce in China look like in a few years’ time?

Worldwide mCommerce forecast

The fact that tablets and phones are more popular than PCs is one of the driving forces between the rise of mCommerce. Across the globe mCommerce markets are growing, with global sales expected to increase nearly five-fold in the next four years. This is up from $133billion in 2013 to $626billion by 2018. In the US alone, 2017 mCommerce sales will total more than eCommerce sales across the globe in 2013 (source: Evigo).

Mobile China online shopping forecast

China’s mCommerce market is showing strong signs of growth, partly thanks to the monetisation of popular social app WeChat. mCommerce revenue in China is anticipated to reach $51.62billion; an increase of almost double the figure from the previous year, and representing a fifth of the anticipated total eCommerce in China sales for the entire year (source: Tech in Asia).

By 2018, China is set to be the world’s second biggest mCommerce market, behind the USA. In the next four years, its mCommerce market is expected to triple in size, having seen year-on-year growth of 165.4% in 2013 and an expected 91.1% growth by the end of 2014 (sources: Euromonitor, Go-Globe).

Currently the Alibaba Group dominates mCommerce, with a 76.1% market share. Its closest rival – JD.com – has a 5.2% share. Alibaba’s Taobao platform has more than 4 times the number of active accounts of JD.com (at 119.09million), and is used more than twice as frequently each month. On Singles Day, mobile devices were used to purchase $877million worth of goods on Alibaba (source: Go-Globe).

The popularity of smartphones in China, which has more phone subscribers and smartphone users than any other country in the world, is fuelling the demand for mCommerce. Factor in the fashion for flash sales, which see everything from beauty products to limited edition phones selling out in huge numbers. Then consider that mobile purchases are over a minute quicker than on a PC, and it is not hard to see why China is the perfect place for mCommerce to flourish and thrive

(Image source: ‘Online Shopping Concept’ | www.freedigitalphotos.net)

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Marketing in China: Smartphone overview

Most of the popular smartphone makers in China are domestic brands such as Xiaomi. This is because Chinese smartphone producers have focussed on producing low-cost devices that do one thing particularly well. Rather than trying to compete with products such as the iPhone 5s or Nokia Lumia, which boast a wide range of different features, smartphone brands in China are offering cheaper models that are brilliant at taking pictures, or great for watching video, and little else (source: China Daily). This could explain why so many of the brands featured below are domestic companies. (All market share statistics and rankings are from China.org)

5. Apple

Apple probably aren’t used to seeing themselves at the bottom of lists, but their position as the fifth most popular smartphone brand is actually an improvement. Until the second quarter of 2013, Apple were the 7^th most popular brand. It is only recently they have overtaken Xiaomi, with their market share growing to 6%.

4. Huawei

China provides a third of Huawei’s total revenue, with profits growing from 15.6billion yuan in 2012 to 21billion yuan in 2013. According to Huawei, in 2012 they became the 3^rd biggest smartphone manufacturer globally, in terms of number of smartphones shipped (source: BBC News). As of the end of last year, they held 9% of the market.

3. Yulong

Heightened privacy features make Yulong Coolpad phones one of the most popular choices with businesspeople and government officials. Sticking to the strategy of developing low cost, single feature phones, Yulong’s heavy focus on R&D has made it a serious contender in the Chinese smartphone market. Stock price doubled between 2012 and 2013, arriving at a figure ten times higher than when the company was originally listed (source: Forbes). Yulong has a market share of 11%.

2. Lenovo

Having already beat HP in the global market for desktop PCs, Lenovo have turned their ambitions to the smartphone market. Considering they are the second most popular smartphone brand, with a 13% share, they are clearly doing well. Last year, Lenovo’s yearly revenue was $38.7billion (source: The Economist).

1. Samsung

With 21% of the market share, it is Korean manufacturer Samsung that still tops the tables. Samsung are keen to continue to focus on China and increase their market share as the market in developed countries becomes more crowded. Despite stiff competition from domestic brands, China is still ripe with potential for the company to continue to thrive (source: Engadget). (Image source: ‘Smartphone And Function Icons’ | www.freedigitalphotos.net)

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