Chinese consumer Archives - Digital Crew https://www.digitalcrew.com.au/blogs-and-insights/tag/chinese-consumer/ Chinese + English + Japanese + Hindi Digital Agency in Sydney | Digital Crew Tue, 01 Nov 2022 11:41:27 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://www.digitalcrew.com.au/wp-content/uploads/2018/05/cropped-digitalcrew-logo-512_512-32x32.png Chinese consumer Archives - Digital Crew https://www.digitalcrew.com.au/blogs-and-insights/tag/chinese-consumer/ 32 32 Tmall Vs WeChat – Where Should You Start Your Ecommerce Business In China? https://www.digitalcrew.com.au/blogs-and-insights/tmall-vs-wechat-where-should-you-start-your-ecommerce-business-in-china/ Mon, 28 Mar 2022 09:42:21 +0000 https://www.digitalcrew.com.au/?p=6128 Should you spend your first marketing dollars on WeChat in the hopes of seeing a positive ROI? Wechat is a powerful platform that has enabled 1.6 trillion RMB in transactions through micro programs (MPs) alone (in 2020). Membership schemes, gift cards, O2O retail, and even an online store are all possible with mini programs. All of this […]

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Should you spend your first marketing dollars on WeChat in the hopes of seeing a positive ROI?

Wechat is a powerful platform that has enabled 1.6 trillion RMB in transactions through micro programs (MPs) alone (in 2020). Membership schemes, gift cards, O2O retail, and even an online store are all possible with mini programs. All of this is available to followers without the need to download anything from the app store.

However, in terms of bringing in traffic that you do not already own, WeChat does not compare to a platform like Tmall. The brand is responsible for acquiring every single follower. Meanwhile, Tmall is where you will most likely acquire the majority of your customers. It is designed to entice new customers into stores.

Tmall and WeChat differ in a variety of other ways as well. Let’s take a look…

Pros & Cons Of WeChat

Pros:

1. Its Free:

Using WeChat is free and does not incur any costs. It means that as long as it is connected to the internet, it will provide all of its services to users. This is one of the reasons it has hundreds of millions of daily active users.

2. Sharing Is Easy:

WeChat makes file sharing a lot easier. You can send or receive documents up to 100Mb. It supports PDF, Slideshows, and other file extensions.

3. WeChat Pay:

WeChat Pay is a convenient and efficient alternative to cash payments. Users can pay by scanning the QR code, confirming the amount, and paying after the payer confirms the password. It is a fast and efficient method of transaction. Furthermore, it is secure. WeChat now permits non-Chinese users to use its services.

4. The Magic Of Moments

WeChat, like other similar applications, supports basic messaging. Aside from that, there is a feature called “Moments” that allows users to share their stories and status updates with their friends. You may also share your location with your pals and play mini-games with them.

Cons:

1. Concern About Privacy:

Tencent has access to all of your personal information. Furthermore, Tencent works with the Chinese government. As a result, it is safe to assume that the government is monitoring your activity on WeChat. However, keep in mind that you consented to its policies when you created a WeChat account.

2. Security concerns

To share messages, WeChat does not employ end-to-end encryption mechanisms. As a result, it is possible that a third party will see or misinterpret your message.

Pros & Cons Of Tmall

Pros

1) Because Tmall is such a well-established, top-of-mind marketplace brand, U.S. retailers can enter the market quickly and focus on selling. Retailers who run their own online store typically have longer time horizons. They concentrate their efforts on targeting Chinese consumers through direct brand exposure, sales, and brand building, while preserving greater control over their online operations. Their e-shop is an excellent beginning point for a multichannel strategy and stationary expansion, and sellers may integrate their chosen online payment methods into their website.

2) Because Tmall is a well-known brand among Chinese customers, using the platform to sell your products might help you quickly gain part of that trust for your own brand.

3) Tmall has partners who can assist you with anything from trade rules to translation.

Cons

1) Does not offer a diverse choice of SKUs at competitive prices.

2) You would not have your own storefront on the platform. Instead, you sell your products through a Tmall store.

Mini Programs

Mini Programs (MP) are light apps that operate on top of a mobile app. Top Chinese digital businesses have created and managed their own mini-program frameworks, with the most prominent being the WeChat platform and Alibaba (Alipay platform; Taobao platform). As of October 2020, more than half of China’s top 100 mobile apps had generated mini-programs.

Digital Crew is a Tmall & WeChat marketing partner that can help you set up and grow. Get in touch with us with any further queries you may have regarding these 2 platforms.

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E-Commerce Saas Evolution: The Weimob – Youzan Connection https://www.digitalcrew.com.au/blogs-and-insights/e-commerce-saas-evolution-the-weimob-youzan-connection/ Tue, 15 Feb 2022 09:32:27 +0000 https://www.digitalcrew.com.au/?p=6086 Weimob, one of Youzan’s most frequently mentioned competitors, was already profitable in 2021. But, it’s just quite different from Youzan, with less than a third of its business through SaaS. Initially, almost all of Weimob’s revenue came from SaaS — because it thought it could be a CRM for WeChat retailers. It is referred to […]

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Weimob, one of Youzan’s most frequently mentioned competitors, was already profitable in 2021. But, it’s just quite different from Youzan, with less than a third of its business through SaaS.

Initially, almost all of Weimob’s revenue came from SaaS — because it thought it could be a CRM for WeChat retailers. It is referred to as a major 3rd party solution provider for WeChat.

In the first half of 2021, Weimob’s revenue and gross profit were 1.383 billion yuan and 766 million yuan, respectively, up 44.5% and 81.8% year on year.

It generates the majority of its revenue by serving targeted advertising to merchants on WeChat. Weimob offers some of the same solutions as Youzan, including all of the software packages for offline establishments, for example – hair salons.

You can open a mini program shop for your brand using Weimob’s Weimall function. It enables you to do a lot of things like membership management, all kinds of social promotions, and live streaming.

Do Not Confuse With Weidian

There is a third company called Weidian, which translates to “Mini Store” in Chinese. We thought we’d mention it because it’s so easy to confuse it with Youzan and Weimob.

Weidian also has a SaaS business that helps retailers sell on WeChat, and it was the first of the three to be formed. Weidian was also unique, in that it made it simple to sell not only your own items, but for other people as well. Remember that WeChat is where individuals have their close connections and friends, thus direct selling is a smart approach to use the existing social network.

Weidian completely overlooked WeChat’s use of offline QR codes and other methods to increase mini program acceptance and online engagement. To their credit, Youzan and Weimob were quick to offer group buying and other promotional services. Speaking of QR codes, The People’s Bank of China (PBOC) recently issued a guideline prohibiting the use of personal recipient QR codes for business services beginning March 1, 2022. That is unquestionably a setback.

Is Tencent Sitting idly by and just waiting for third party solution providers to grow?

You might be wondering if Tencent is just sitting back and watching as all these players try to establish businesses on the WeChat platform it so carefully built. No way, no how!

Tencent invested in 8% of Weimob and 7% of Youzan at roughly the same time. It already had shares in Weimob, so this was only adding to its holdings, but it had never owned shares in Youzan previously.

Apart from overhauling its own mini program solution, it also launched an easy-to-use, one-click store opening function in 2020. It also developed Xiao’e Pinpin, a group buying mini program, that also allows you to build up stores for individual WeChat groups you’re in.

In Summary

The main take away from this Ecommerce SaaS Evolution series is this – marketplace e-commerce platforms like Taobao, Tmall, JD, and Pinduoduo may not see much movement in their dominance for a time, but there are other platforms emerging in China e-commerce that are more ‘decentralised’. Or, as Chinese marketers refer to it, private traffic.

The leading companies, such as Youzan and Weimob, have essentially mimicked everything these platforms provide, such as social selling and gamification features. Furthermore, they allow you to combine it with everything else you do on WeChat. They also offer all of these solutions for connecting your offline and online presence. WeChat mini programs are all about driving internet traffic to offline stores and vice versa.

That is what WeChat excels at, and it represents a big opportunity if you ask us. You can also provide a plethora of additional services, as Shopify does.

Get in touch and get started with WeChat mini-programs, Youzan or Weimob right away.

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Ecommerce SaaS Evolution– WeChat https://www.digitalcrew.com.au/blogs-and-insights/ecommerce-saas-evolution-wechat/ Fri, 21 Jan 2022 08:15:07 +0000 https://www.digitalcrew.com.au/?p=6070 To understand WeChat’s own journey & efforts to build private traffic, let’s step back in time to 2014. The Predecessor – Weixin Xiaodian It all started when WeChat introduced a new feature called 微信小店 in Chinese. We’re not sure what the English name was; it didn’t appear to have one. In any case, you could […]

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To understand WeChat’s own journey & efforts to build private traffic, let’s step back in time to 2014.

The Predecessor – Weixin Xiaodian

It all started when WeChat introduced a new feature called 微信小店 in Chinese. We’re not sure what the English name was; it didn’t appear to have one. In any case, you could only use this particular feature if you operated an active WeChat Service Account. Furthermore, WeChat Service Accounts were only available to businesses with a valid license.

Service Accounts are a subset of WeChat official accounts. It differs from the regular public accounts that you subscribe to, which are used to push out Content. Anybody with a Chinese ID can sign up for a public account. Service Accounts are designed to allow you to interact with the brand in a limited way, such as talking to a chatbot, asking inquiries, performing very simple transactions, and so on. You can only publish content a few times each month.

This was the first version of the WeChat Mini Shop and was known as Weixin Xiaodian. Essentially, you could set-up a shop within your Service Account. WeChat Pay was, of course, integrated, and the overall experience was satisfactory. However, the experience was really basic. You couldn’t do anything even remotely complicated, like loyalty cards or coupons, without hiring a developer.

But why would someone use this? Doesn’t appear to be very beneficial, does it? Keep in mind that we’re still talking about 2014. Many of WeChat’s features had not yet been implemented. Most crucially, there were no mini-programs. That wouldn’t happen until January 2017.

The Launch Of Mini Programs

WeChat eventually released a feature that allowed you to update your Service Account WeChat Store directly into a mini program. However, because it was still free, it featured very limited templates and customization options. And if you needed something unique, you could always pay a developer. It wouldn’t be that expensive either, because small applications are a fraction of the cost to build, compared to full-fledged native apps. They were created with this cost in mind.

It was still exclusively for companies to utilise, because you had to qualify for a Service Account first.

The WeStore Is Created

However, WeChat announced in 2020 that it was retiring 微信小店 and launching a new product called the WeStore.

The WeStore is significantly more democratic than Weixin Xiaodian, which was solely open to businesses. You can open a shop on WeStore if you have a Chinese ID card. If you are a company, you can upload your licences and bank account information and open up to 3 stores.

Personal stores can be controlled directly from your smartphone, whilst commercial accounts may be handled from a desktop and allow up to 500 individuals to co-manage the store, with the flexibility to define different access levels for different staff.

The WeStore also enables live streaming, which is a popular trend in China right now, as well as fundamental shop functions such as order management, transaction progress, coupons and promotions, customer service, and so on. Even better, it’s completely free! You don’t have to pay anything except a 0.6% transaction fee for payments. All you have to do is put in your time to set it up and manage it.

In Closing

We won’t know how the WeStore performs for a while because it’s so new. However, it makes a lot of sense for a specific type of merchant. For starters, there is no better deal for a solopreneur starting out than a free WeStore.  Especially if they are currently marketing actively within the WeChat ecosystem and have followers and a community there.

However, unless it becomes far more flexible, the technology as now is unlikely to get any real commercial users. It’s just not as advanced as what Youzan, for example, provides.

For more information about setting up your own WeStore, get in touch with our team at Digital Crew, a WeChat Marketing Agency.

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KOLs on Xiaohongshu – What You Need To Know To Get Started in 2022 https://www.digitalcrew.com.au/blogs-and-insights/kols-on-xiaohongshu-what-you-need-to-know-to-get-started-in-2022/ Sun, 26 Dec 2021 21:43:11 +0000 https://www.digitalcrew.com.au/?p=6046 Xiaohongshu has grown to become China’s leading shopping site for beauty, fashion, and luxury goods, over the years. It has around 300 million registered users and 85 million monthly active users as of 2021. Xiaohongshu is largely used by young Chinese females to provide reviews on cosmetics, beauty items, fashion, and so on. You’ll notice […]

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Xiaohongshu has grown to become China’s leading shopping site for beauty, fashion, and luxury goods, over the years. It has around 300 million registered users and 85 million monthly active users as of 2021.

Xiaohongshu is largely used by young Chinese females to provide reviews on cosmetics, beauty items, fashion, and so on. You’ll notice a lot of Xiaohongshu KOLs pushing various items and sharing their thoughts on them.

Why are KOLs necessary?

KOLs are considered trustworthy. Users pay attention to high-quality content shared on a brand account, but they will always value user-generated content more. Many consumers rely on KOLs to help them cut through the noise and make speedy purchasing decisions.

KOLs understand how to develop the appropriate type of content for the platform. They can write in a conversational, informative tone that appears genuine.

KOLs confirm desirability. If a consumer goes to Xiaohongshu to investigate your goods and finds little to no user-generated content about it, they become dubious about the product’s quality. KOLs also aid in the discovery of new audiences for your business.

The 3 Types of  Xiaohongshu KOLs 

  1. Loyal platform users who organically developed an audienceThese influencers, whether micro or top-tier (explained below), are likely to have a solid understanding of the platform, and a strong connection to its audience.
  2. Other platform influencers – Example: Weibo and WeChatAs Xiaohongshu grows in popularity, an increasing number of established influencers have launched accounts on the platform. Working with them has the advantage of allowing them to post material for a single campaign across several platforms; however, unless they’ve been on Xiaohongshu for a long time, they may not be as effective as a ‘homegrown’ influencer.
  3. CelebritiesMany celebs, both from China & the West, have joined Xiaohongshu. Chinese celebs use it to connect with fans; content is generally more behind-the-scenes and casual, compared to what you see on their Weibo accounts.

Here is a classification based on follower count & average cost:

KOL Size No. of Followers Average Cost
Top Tier >1 million 30-300 Thousand RMB
Mid-Tier >10,000 10-30 Thousand RMB
Micro/ Long Tail Few Thousand 2-10 Thousand RMB
Celebrities >10 million Endorsement fees range from millions to tens of millions (RMB)

Gifting & Price Negotiation

Because RED is an open forum for product evaluations and suggestions, product seeding is an excellent approach for brands to obtain exposure on the network. Gifting is an excellent way for brands to engage KOLs for product seeding, especially for brands that are new to the market.

There will always be KOLs that refuse a non paying gig, but with enough effort, marketers can always discover KOLs who understand the value in your product or brand and are prepared to conduct free content seeding in exchange for gifting. If the collaboration is easy and the content is compelling, try working with them on subsequent sponsored campaign as well.

This content will be far more authentic than a paid collaboration. The table above shows the typical pricing range for KOL content if you pay for it.

In Closing

Dealing with Xiaohongshu KOLs  for content seeding is less expensive than working with WeChat KOLs, who charge exorbitant fees. Working with the correct KOLs to provide interesting content, similar to Weibo and WeChat, is the key to a successful campaign.

At Digital Crew, a multicultural marketing agency in Sydney, we help you leverage your brand presence among KOLs through our advertising strategies that include sponsored posts, product reviews, KOL giveaways and other KOL campaigns. Get in touch with us today.

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WeChat Ads Format – Official Account Advertising https://www.digitalcrew.com.au/blogs-and-insights/wechat-ads-format-official-account-advertising/ Thu, 25 Nov 2021 21:28:39 +0000 https://www.digitalcrew.com.au/?p=6024 Aside from getting the most recent updates on their friends’ lives via WeChat Moments, another essential source of information for every WeChat user comes from articles shared by the official accounts they follow. What is the definition of a WeChat official account? In essence, a WeChat Official Account is a media and services platform incorporated in […]

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Aside from getting the most recent updates on their friends’ lives via WeChat Moments, another essential source of information for every WeChat user comes from articles shared by the official accounts they follow.

What is the definition of a WeChat official account?

In essence, a WeChat Official Account is a media and services platform incorporated in WeChat for businesses, the government, media, and even people to publish content, promote enterprises, and sell services. Read more about Official WeChat Accounts here.

WeChat Official Account Advantages

The most significant advantage of using WeChat official account ads is that no work is required in weeding out who to target — WeChat users have already made their preferences apparent when selecting which official accounts to follow. Once the system identifies which official accounts are the most suitable for your company’s WeChat advertising post to be planted in, your advertising messages will be exposed solely to individuals who are relevant and interested.

WeChat Official account ads work by inserting ad banners into content published by official accounts with over 5000 followers.

Types of WeChat Official Account Ads

While these advertisements may look similar to banners, they are referred to as “stickers” on the WeChat platform. WeChat Official Account ads are divided into four key types.

a) End of the Article Ads

end of article ad

Advertisement messages for businesses will be displayed in a small section between the articles on the WeChat official account and the comments section. The above example is a banner ad that directs customers to an e-commerce site to make a purchase.

b) In-text Ads

in text wechat ad

The click-through rate is higher when WeChat adverts are strategically positioned in the middle of a published article. As in-text ads are integrated into the content, they more likely to be spotted and clicked on.

c) KOL Mutual Cooperation Ads

KOL ad

KOL Mutual Cooperation ads allow both parties (the brand & the influencer) to choose their business partner. This means that businesses’ advertising messages are better tailored and integrated into articles produced by KOLs they know and trust.
Simultaneously, WeChat serves as a middleman for transactions and content filtering, reducing the danger of fraud or poor content quality.

 

d) Video Ads

video ad
A small ad snippet will be presented directly before video content (less than 5 minutes) that has been inserted into official account articles and will function similarly to commercials you’re used to seeing on YouTube.

WeChat may be the perfect online ad platform for your business. Are you ready to launch your WeChat ad campaign on WeChat? Then Digital Crew is your perfect WeChat advertising partner who has all the right tools to  increase your chances of success. Get in touch with us today

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Singles’ Day 2021 – Sustainability, Inclusivity & $84.54 bn in sales! https://www.digitalcrew.com.au/blogs-and-insights/singles-day-2021-sustainability-inclusivity-84-54-bn-in-sales/ Tue, 16 Nov 2021 07:23:45 +0000 https://www.digitalcrew.com.au/?p=6018 During this year’s 11.11 festival, cross-border e-commerce site, Tmall Global ramped up its preparations to assist foreign businesses to capitalize on this festival’s tremendous potential and reach the 900 million Chinese consumers who participated. Here are some updates, insights, and a behind-the-scenes look, that will give you a deeper understanding of how China’s biggest retail […]

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During this year’s 11.11 festival, cross-border e-commerce site, Tmall Global ramped up its preparations to assist foreign businesses to capitalize on this festival’s tremendous potential and reach the 900 million Chinese consumers who participated.

Here are some updates, insights, and a behind-the-scenes look, that will give you a deeper understanding of how China’s biggest retail extravaganza was put together this year.

1) A large number of SMEs (about two-thirds of the 290,000 retailers) participated. This meant more options for consumers.

2) Apple and cosmetics brand L’Oréal sold more than RMB100 million ($15.6 million) between midnight on November 1 and 00:45 on November 11.

3) As esports becomes more popular, gaming desks and seats, mouses, graphics cards, and gaming laptops were among the most popular items for this year’s 11.11.

4) Consumers From Smaller Cities and Rural Areas powered this year’s 11.11. Spending by these consumers increased by nearly 25% compared to last year.

5) During the first two hours of 11.11 pre-sales on October 20, more than 20,000 buyers purchased green home appliances, saving 300 tonnes of carbon emissions that would otherwise be emitted by the manufacture and use of inefficient appliances.

6) Thousands of brands ramped up special privileges to engage their top customers. This included limited-edition goods and member-only vouchers, as well as complimentary after-sales maintenance and repairs.

7) Tmall Global businesses incorporated short films from influencers and Key Opinion Consumers (KOCs) on their product sites, thanks to recent enhancements. And, a newly created warehouse network enabled next-day deliveries in China.

8) More than 200 premium and designer labels took part, including, for the first time, Hermes and Saint Laurent.

9) Consumers could buy one shoe for half the price of a pair on Tmall’s brand flagship stores. This was part of the “One Shoe Program” that aimed to make shopping more accessible to people with disabilities.

10) Taobao Live, which is used by brands to sell their products on Taobao’s virtual marketplace, introduced a number of new livestreaming capabilities, including content marketing tools and brand channel membership programs.

11) Taobao Deals and Idle Fish launched Mini-Programs on WeChat, while Youku, Damai, Ele.me, and Kaola used WeChat Pay to handle platform transactions. This 11.11, shoppers were able to make purchases using UnionPay and other payment partners for the first time.

12) This year, Alibaba donated RMB1 for every 11.11 purchase that was successfully shared on social media by users. The proceeds from this year’s 11.11 will primarily benefit three groups of people: the elderly living alone, kids left in rural places while their parents work in cities, and low-income households in emerging regions.

13) To enable contactless delivery, it also used robots to manage its smart warehouse and deliver items directly to people’s doorsteps.

14) Taobao’s senior mode features larger texts and icons and voice-assisted technology, making it easier for senior citizens to search for products using voice commands.

Digital Crew is a Chinese digital marketing agency that can help your business successfully provide the best shopping experience to your consumers during all major holidays. Get in touch with us today.

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The Chinese Demographic – First Understand, Then Acquire https://www.digitalcrew.com.au/blogs-and-insights/the-chinese-demographic-first-understand-then-acquire/ Mon, 30 Aug 2021 14:39:09 +0000 https://www.digitalcrew.com.au/?p=5913 The majority of significant consumer-facing businesses recognise that in the coming decade, China will be critical to their success. However, in order to keep up, these businesses will need to comprehend the economic, cultural, and demographic shifts that are influencing consumer profiles and spending habits. This is no simple feat, because of China’s rapid expansion […]

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The majority of significant consumer-facing businesses recognise that in the coming decade, China will be critical to their success. However, in order to keep up, these businesses will need to comprehend the economic, cultural, and demographic shifts that are influencing consumer profiles and spending habits. This is no simple feat, because of China’s rapid expansion and resulting changes in its way of life.  The country’s massive economic and demographic disparities add to this challenge.

The most fundamental trend influencing the Digital Landscape in China has been and will continue to be ‘changes in economic profiles & their characteristics’. Surveys and studies have tracked the growth of incomes, shifting spending patterns and the development of many different consumer segments. Let’s take a quick look at these various segments.

The 80’s Segment

Chinese born in the 1980’s, known as 80 Hou, are famous to Westerners as the first generation born during the enforcement of China’s one-child policy. The 80 Hou is a generation of more than 200 million only children with common burdens and opportunities. Their thinking is formed by traditional Chinese culture and Confucian morals, but they began their careers in a nearly full-blown market guided by the rules of the WTO. Many of them are single-handedly responsible for providing financial assistance for their retired parents.  As the 80 Hou’s fulfil their responsibilities and accomplish their social goals, their unique perspective is sure to influence trends in the global economy.

The 90’s Segment

Chinese Millennials born after the 1990’s, have a direct influence on 50% of their family’s purchase decisions. This is because of the information they consume via the internet and despite their dependence on their parents for money. Some of those purchase decisions include houses, cars, and home appliances. 60% of the urban post-90’s youngsters have their own credit cards.

Millennials –  A Closer Look

400 million out of the total 1.4 billion people in China consist of millennials. Brands all over the world target the millennial population in most countries by ringing in elements through their brand communications that are familiar with the national cohort. Chinese millennials born between 1981 and 1996 make up 25% of China’s population with the highest purchasing power. Their spending is projected to increase by 11% in 2021. 90% of the Chinese millennials possess a smartphone along with a large appetite for luxury goods. Millennials were key contributors to the travel boom in 2017 that amounted to a total of $115 billion spent by Chinese visitors. The group born after 1990 upscaled their budget by 80% in 2018 for international travel.

The education sector saw one in three Chinese students that were paying full fee amounts. This generation is the first to have grown up in a time where social media apps like WeChat, Weibo, Xiaohongshu and social shopping are highly integrated into their lives. They are concerned about their social image which drives brands to move towards targeting their curated lifestyles. The impact of social media-related self-image creation, is set to increase exponentially over the next decade as millennials and Gen Zers are all set to influence generations of consumers.

The young Chinese adults have coined terms for the exclusive lifestyles they have devised for themselves. Chinese millennials are now saving up to live their life by investing in experiences like travelling, concerts, sporting events etc.

In Summary

China is undergoing a consumption revolution. The Chinese consumers’ purchasing behaviour has gotten more sophisticated, and they are considering more criteria when purchasing a product or a service. Brand awareness is growing in importance, and digital marketing & monitoring is beginning to play an increasingly essential role in acquiring these Chinese consumers. Get in touch with an expert to discuss the best approach for your business today.

 

 

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The Canberra Networking Day: Australian Brands In China Index 2019, Chinese Consumers and More https://www.digitalcrew.com.au/blogs-and-insights/the-canberra-networking-day-australian-brands-in-china-index-2019-chinese-consumers-and-more/ Thu, 27 Jun 2019 11:05:55 +0000 https://www.digitalcrew.com.au/?p=4925 The Canberra Networking Day Was More Than Just A Networking Event The Canberra Networking Day 2019 that was attended by renowned personalities from the Chinese and Australian Business domain and government representatives broached topics concerned with the country’s growth and development. Digital Crew played a crucial role in organising the event along with the Australia […]

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The Canberra Networking Day Was More Than Just A Networking Event

The Canberra Networking Day 2019 that was attended by renowned personalities from the Chinese and Australian Business domain and government representatives broached topics concerned with the country’s growth and development. Digital Crew played a crucial role in organising the event along with the Australia China Business Council and drew important insights about the Chinese consumer from Ophenia Liang, Co-founder of the cross-cultural digital marketing agency.

Among the panellists present at the event, Mr Andrew Kuiler, CEO of the Silk Initiative, Ms Maggie Zhou, managing director of Alibaba Group and Ms Ophenia Liang imparted observations about the Chinese consumer, trends and economy along the lines of Digital Crew’s ABC Index 2019 report – The only report that monitors more than a 100 Australian brands across 8 industries based on their attributes and brand perception in China.

The Chinese Consumer Panel Discussion

The discussion carried out by panellists – Mr Kuiler, Ms Maggie Zhou and Ms Liang was centred around China’s consumer market that has been growing at a steady rate of 10% year-on-year with an increase in online sales to an astonishing 40%, FMCG expansion at 14% and ever-growing consumer confidence increasing month-on-month.

According to the panellists, Chinese shopping enthusiasm is characterized by a 67% increase demand for personalized products or shopping experiences in comparison to 42% of this demand globally. 86% of the Chinese use mobile payments as compared to 24% of the population worldwide. Major shifts at a policy level will change China from an export-driven economy to one based on imports and domestic consumption.

The e-commerce wave had been dominating the market for years, but lately, there has been a shift back to brick-and-mortar stores with O2O – Online to offline marketing resurfacing. According to Digital Crew, the cross-cultural digital agency, ‘brand localisation is the key to success in any market’

The panellists stated that 89% of medium to large Chinese companies are undergoing cross-disciplinary digitalisation out of which 83% of the efforts are customer experience related and 53% are marketing related indicating evolving trends for a more integrated, information-lead and personalised customer journey with brands in China.

The Chinese digital marketing specialist, Liang stated how important it is for new brands entering the Chinese market to have multiple touch points. For eg – Flight bookings online should also be backed by confirmations and a smooth checkout through the most frequently used app i.e. WeChat in this instance. She stated that her team of experts are onto enabling a system that makes such flight bookings possible for Airline brands.

The discussed delved into the perception of Australian beauty and cosmetic brands that aren’t perceived as premium because of the years of branding associated with Japan and France as the ultimate beauty destinations. The topic also took into consideration the disadvantage of building a brand with a strong national association as Chinese consumers are nationalists and political conflict could result in a boycott of the brand with the strongest country of origin. The ABC Index report is all set to analyse and build research around the ‘brand Australia’ for its release in 2020.

The Chinese Consumer

When asked about the Chinese consumer, their response stated that China’s middle-class population is set to reach 550 million by 2022 comprised of 75 per cent urban households. Consumers in the upper-middle income band that have a significant amount of disposable income influence middle class spending. Annual enrolment rates in Chinese higher education that grew from 5.5 million in 2006 to almost 7.5 million in 2016 is an indication of the rising middle class and higher income levels.

The Brand Competition

The discussion concluded with new solutions and strategies to brands seeking to enter the Chinese market. International brands entering China will have to level up and match domestic brands with their marketing efforts to reach out to the evolved Chinese consumer. Increased digitization has been forcing companies across all industries to rethink their operations and become more customer-centric.

The conference ended with a Q & A round that converged into a panel-audience discussion and further extended into a networking session where various professionals from the marketing and advertising industries discussed cultural arts, business, politics, education and other topics conducive to the economic growth of the nations.

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Federal Trade Minister Simon Birmingham Launched The Australian Brands In China Index 2019 At The Parliament House https://www.digitalcrew.com.au/blogs-and-insights/senator-simon-birmingham-launched-the-australian-brands-in-china-index-2019-at-the-canberra-networking-day/ Wed, 26 Jun 2019 13:03:12 +0000 https://www.digitalcrew.com.au/?p=4901 The Australian Brands In China Index Report 2019 Was Launched By The Federal Trade Minister At The Event Wednesday 26 June 2019: The Australian Brands In China Index was launched at the Canberra Networking Day that was held at the Australian Parliament House in Canberra. The event welcomed 180 guests from the Australian and Chinese […]

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The Australian Brands In China Index Report 2019 Was Launched By The Federal Trade Minister At The Event

Canberra Networking Day

Wednesday 26 June 2019: The Australian Brands In China Index was launched at the Canberra Networking Day that was held at the Australian Parliament House in Canberra. The event welcomed 180 guests from the Australian and Chinese business domains along with government representatives like his excellency Cheng Jingye, Chinese Ambassador to Australia, the Hon. Senator Simon Birmingham, Federal Trade Minister, the Hon Madeleine King, Shadow Trade Minister and the Hon John Brumby AO, ACBC National President.

canberra networking day

The ACBC CEO Helen Sawczak had stated ‘CND is a unique opportunity for Australia’s China-engaged business community to meet and hear from our nation’s leaders and to contribute to the national conversation at the highest levels.’

The event saw a host of networking activities that took place among the attendees over the business, trade, the country’s growth and GDP. The event broached over the topic of Australia’s freshly re-elected government on the account of keeping the economy strong and the importance of maintaining a close, constructive and ever-deepening engagement with it’s strongest partner, China.

China’s Ambassador To Australia Cheng Jingye Delivers His Speech At The Event

The ABC Index was well received by the attendees present at the event, as Ophenia Liang – Co-founder of Digital Crew presented the report that provides insights about the Chinese consumer to Australians seeking to expand their business into China.

The event that was put together by the Australia China Business Council and Digital Crew featured keynote addresses by Members of the Parliament, as well as a senior business and government leaders in discussions on topics that ranged from foreign investment, Chinese consumption and networking through arts, sports and education.

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Chinese Consumers And Their Fast-Changing Interaction With Brands https://www.digitalcrew.com.au/blogs-and-insights/chinese-consumers-and-their-fast-changing-interaction-with-brands/ Wed, 22 May 2019 06:58:48 +0000 https://www.digitalcrew.com.au/?p=4708 Chinese Consumers Are Evolving By The Minute Havas recently published a report of Meaningful Brands 2019: The fast-changing interaction of Chinese consumers with brands, it is meaningful for companies to build their brands in the Chinese market. The report researched over 16,000 consumers in China and it provides insights on the relationship between Chinese consumers […]

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Chinese Consumers Are Evolving By The Minute

Havas recently published a report of Meaningful Brands 2019: The fast-changing interaction of Chinese consumers with brands, it is meaningful for companies to build their brands in the Chinese market. The report researched over 16,000 consumers in China and it provides insights on the relationship between Chinese consumers and brands.

1. Chinese consumers are becoming more detached with brands

chinese consumers

 

In the future, 54% of brands in China could disappear tomorrow and no one would care. This shocking number has grown 4% more than in 2015. Brands play a different role in consumers’ decision with the high development of E-commerce business platforms. Chinese consumers become ‘picky and smart’, this means they don’t rely on brand image anymore, instead, they compare goods between different merchants and make decisions by product detail and quality. Brand image is not necessarily the most important factor any more. Digital and online shopping also change the mindset of consumers.

2. Consumers value meaningful benefits from brands, in order to improve the quality of life

chinese consumers

84% of Chinese consumers wish brands can improve their life quality. The number goes up 13% compares to 2015. Economy slows down, expensive housing price, medical service and education, drive more consumers to spend on themselves. Young people worry about their future and are willing to change their consumption pattern. Young consumers are spending more in that segment at the moment, while sales of cars and furniture dropped by 14% and 11.6% in 2018.

3. More qualified products, experienced consumption and Chinese brands

chinese consumers

Chinese consumers prefer better quality products, especially top criteria craft so that they can get the best quality and function from it. Consumers like to enjoy their moments in three aspects: everyday life, experience and the attitude of ‘word hark play hard’. Besides, Chinese consumer prefer Chinese brands to show the proudness of their nation.

4. Content which inspires, helps and reward consumers help brands see their meanings

chinese consumers

Consumers believe that the content provided by brands is meaningful to them increases from 46% in 2017 to 52% in 2018, and it is 10% more than the global meaningful content. Brands need to create better quality contents for inspiring, helping and rewarding consumers, improve their lives. The report tracks the relationship between brand performance, meaning and content show that brands need to improve their content quality to attract audiences’ attention so that they can have more benefits from the market.

 

chinese consumers

More and more Chinese brands dedicated to making better quality contents, including many E-commerce digital platforms. They are hoping to extend their brand influence to more consumers.

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