We all know that Tencent and Alibaba dominate digital life in China. But why did they become so successful? And what can Western brands learn from their approach? This article gives three clear reasons for how the Tencent and Alibaba apps became the dominant points of interface for consumers across multiple touchpoints. Additionally, it states that understanding what Tencent and Alibaba are doing with apps, mobile payments and ecommerce could give us a real insight to what will happen in marketing in the West.
Jacco
Top 3 Valentine’s Day WeChat Moments Ads
But all those cupid arrows haven’t saturated the loving couples in China because for years now they also celebrate the Western Valentine’s Day on the 14th of February. And as is always the case in China the celebration would not be complete without numerous brand campaigns.
This time we looked at digital marketing campaigns that started from WeChat moments ads. We collected our top 3 for you here!
No 3. Chanel
Chanel did a beautiful campaign around their Camélia series. Starting from a WeChat Moments ad that instructed men to buy their beloved partners more than just a regular flower, instead they should give Camélia Once clicked the campaign lead to a dedicated mini site with videos and other visual material. And if the user clicked any specific product it would link them to the mobile website of Chanel.
The reason Chanel is in third place is because the campaign did not allow for any immediate purchases, not even a mere gift voucher or down payment. However, from the product page of the mobile website users could choose to locate a store closest to them to where they could purchase the chosen item.
No 2. Dior
In second place is Dior with an inspiring campaign that revolved around a contribution to charity. For every bottle of perfume or gift voucher that was bought, Dior would donate 1 USD to the WE Charity.
Besides the being very generous the campaign was also executed very well, making use of a Mini program. The Mobile site of Dior even showed an automatic pop up of the Mini program QR code which we thought was very smart.
The same setup was used for the Chinese New Year campaign and gift vouchers, they were put in the same mini program. And of course, all purchases were fully integrated with WeChat pay.
No 1. Tiffany
And on number 1, using a new feature from WeChat, Tiffany wins the Valentine’s day moments campaign in our opinion.
Initially the campaign showed a regular campaign image, once clicked it would lead to the campaign page with a video and links to their online store.
But once users liked the campaign on their moments the image was replaced by another image hinting to a second part of the campaign “Know how to love, it is worth it”. Once clicked it lead to another campaign page with more videos of inspiring love stories.
The 10 Most Influential Fashion Stylists in China
The professional, in-store and amateur personal stylists of famous KOLs are themselves becoming KOLs. They are the once who shaped the entire image of the famous KOL, based on their talent, reputation, and social media followings. And brands are slowly starting to recognize their value of direct ambassadors. We believe this is certainly a good development towards a less mainstream approach. “The trust in expertise and the cult of opinion leaders and influencers there is very strong, and they have serious power in making a success of trends. Brands are certainly courting these players for their charisma in upselling goods and flash sales,” said Susan Jenkyn Jones, from Conde Nast China.
Alipay sends eight Chinese tourists on a cashless experiment in Finland
Chinese outbound tourism numbers have been growing rapidly and they are traveling everywhere. Countries that want to benefit from this industry do need to adapt though. One country that is ahead of the pack is Finland. According to Finland’s national tourism board, it is the first country outside China where Chinese tourist can make ALL payments with Alipay. “Alipay was first made available in Finland in December 2016. I am glad to see it is widely accepted among Finnish merchants today, and it demonstrates Finland’s commitment to ensure that Chinese visitors leave our country with an unforgettable experience,” said Paavo Virkkunen, executive vice president of Visit Finland.
China’s Ban on Rap and Hip-Hop: What Brands Need to Know
When your brand is associated with a ‘Trendy TV Show’ it could be raining cash when it is still on fire. However, what happens when it turns into a bad influence to society because your direct or indirect ‘brand ambassadors’ go rogue? It might temporarily make you extremely popular among the youth, but it will also put you at risk of being noticed by the regulatory bodies in China. That is exactly what happened to the popular TV show “The Rap of China”. So sometimes it might be better to play it safe and temporarily overt support of explosively ‘Trendy Cultures’. The lesson here is to stay up-to-date on trends and regulations in China to make sure you don’t go wrong and certainly never identify your brand with just one trend or hype.
Le Tote’s expansion in China is centered around WeChat
They don’t have a desktop app in China, and their approach has been 100% mobile-first. Le Tote’s CEO in China stated that their customers spends all their time on mobile. “So we started with a WeChat app. People interact with friends, sell things and make payments through WeChat. It’s a very dominant platform,” said Tondon. Le Tote considers their approach a low-risk way to enter one of the riskiest markets and we agree. Newbies to China can certainly learn from this.
Why China? A growing middle class in China (part 1/3)
This is the first article in short three-piece series called: “Why China?” Read on to find out why some of America’s biggest retailers are focusing on selling in China over the US.
A country of firsts
Earlier this month, Starbucks opened its doors to welcome customers to its largest mega-store in Shanghai, China. This 2,700-square-meter establishment is not only the second of its kind created by the company – it’s the first ever of its kind created overseas. This largely symbolic store reflects the company’s effort to continue to woo the Chinese market and expand in China.
Image source: Starbucks
“When people ask me how much can you really grow in China, I don’t really know what the answer is, but I do believe it’s going to be larger than the U.S.,” said Starbucks’s chairman Howard Schulz to the New York Times.
Growing middle class
The opportunity lies in China’s growing middle class market that currently comprises of around 240 million Chinese consumers, according to a report by China Economic Weekly. Many of America’s largest companies are finding greater growth opportunities in China that far exceed the U.S. market. The online retail sector in China, for example, is 80% bigger than the U.S. Companies are finding that earlier entry to market result in a competitive advantage as the market is still in its early stages.
Image source: Shutterstock
The question for many American brands is whether to focus expansion efforts domestically or overseas. The market for online grocery, for example, is a significant area of opportunity for growth that has been identified by both Amazon and Walmart. Their approaches have been different.
Amazon made headlines this summer by purchasing Whole Foods for $13.7 billion in order to better position itself in the American market. A major part Walmart’s strategy, on the other hand, was to focus its efforts in China. According to Bloomberg, online sales for fresh groceries only make a small portion of the entire industry in China worth approximately $695 billion.
By owning 10% of China’s second largest e-commerce company JD.com, also known as the Amazon of China, Walmart now has a greater share in China’s online grocery market by gaining access to China’s local network and infrastructure. Walmart has further expanded on local partnerships by investing $50 billion in New Dada, a major app for delivery, while creating a network of mini-warehouses throughout the country.
Localized approach
China’s growing middle class is a market that will continue to expand in the coming years. However, entering the China market without a localization strategy can prove to be a major risk, especially when done alone. Uber’s attempt to expand in China resulted in a $1 billion a year loss. The result was local car sharing app Didi Chuxing acquiring the company’s China-based business in 2016.
When successful, the opportunity to enter the Chinese market early on can pay off in spades. With a new Starbucks store opening up in China every 15 hours, it’s forecasted to eventually have twice as many stores than the U.S.
Understanding the Chinese market is key if you plan on doing business in China. Having direct access to the Chinese marketplace, localizing your marketing strategy and tailoring online communication to Chinese audiences are some important steps to take before expanding your business in China.
For Chinese Millennials, Tech Trumps Heritage
A recent report by Agility Research & Strategy suggests the best way to capture the attention of luxury millennial consumers is with innovative technology, not heritage and tradition. Based on that finding it is suggested that luxury brands could benefit by making their products and services more innovative. We actually believe this holds true for every company wanting to succeed in China. Read on to learn more about the reports findings.
Don’t Highlight the Hype, Internet Office Tells Weibo
Following the recent errors of Marriott resulting in their Chinese website still being down, it is now Weibo’s turn to be reprimanded by the Cyberspace Administration of China (CAC). It was said that “content of wrong public opinion orientation, obscenity and ethnic discrimination continued to spread on Sina Weibo” and for that reason the it was ordered to move several portals offline. Weibo has temporarily suspended some of its popular features among which is the “hot searches” page, which displays the social networking platform’s top trending topics.
The State of Search Engine Marketing in China
Great article explaining the state of complex search engine market in China in a refreshing way. Baidu is no longer the only players in SEO & SEM and paid search ads no longer dominate all the results. Ultimately a native speaker or team on the ground in mainland China would be key for three reasons: 1) to acquire the right legal licenses (ICP) and get local hosting; 2) Translate your brand expectations into correct Chinese keywords; 3) Insight into the market to select correct tools and platforms.