Market Updates
Find out what is happening in the Chinese Digital Market with our Market Updates.
The dark side of China’s beauty boom
$200 may sound like a lot to pay for a whitening serum by Korean beauty brand Sulwhasoo. But for Beijing based Yiyang Li, it’s worth the price. The average Chinese Female Middle Class Consumer uses 14 beauty products for their skin, hands and face, according to L’Oréal experts we have worked with. Young women all over China care hugely about their looks and express themselves through personal beauty. China is now the world’s second largest beauty market, trailing the US. But what’s driving their spending?
Alibaba acquires NetEase Kaola in deal worth $2 billion
Alibaba Group has acquired Kaola from Netease for $2 billion. Tmall Global and Kaola are China’s largest and second-largest cross-border e-commerce platforms, respectively, holding 31.7% and 24.5% of the market. These two businesses together will dwarf rivals like JD Worldwide, VIP International and Amazon China. The move has the potential to turn the cross-border e-commerce market on its head. Alibaba extends its leadership in e-commerce and looks to assert its dominance over arch-rival Tencent.
Weibo testing new social lifestyle app, Oasis
On Monday Chinese microblogging platform Weibo launched a new lifestyle platform, Oasis. It combines social media and forum functionalities. The launch of the new app may help microblogging platform Weibo fend off competition from Xiaohongshu, also known as RED. The app is a hybrid of Instagram and Xiaohongshu in layout and major features. For example, users can browse content based on interests and find like-minded friends in various fields such as fashion, food, travel, and beauty. Currently, it is being tested by invited trial users. Let’s see what suprises Oasis will bring to us in the future!
WeChat restricts controversial video face-swapping app Zao, citing ‘security risks’
A new app called Zao went viral in China this weekend for its realistic face-swapping videos. But after controversy about its user policy, WeChat restricted access to the app on its messaging platform. Where have we heard this story before? It is the umpteenth time WeChat has blocked a popular app. Although this time the reason seems to be legitimate. The hype around the app and its user policies has also focused more attention on general deepfake technology and the risks it poses.
Social Ad spend to triple to by 2023
A new report from Forrester says social advertising spend in China is likely to triple by 2023 as video continues to catalyse revenue per user on social platforms. “China already accounts for 44% of Asia Pacific’s social advertising spend, it is expected to grow from US$9.9 billion in 2018 to US$27.6 billion in 2023 — a CAGR of 22.8%.” China’s key players in the social media market have acquired huge user bases in the past decade and will start monetising them aggressively, according to Forrester. Weibo and Tencent have some of the lowest revenues per monthly active user (MAU) globally, suggesting the Chinese social giants still have room to grow.
Why Ampoules Present a Big Opportunity for Chinese Beauty
Chinese consumers’ new obsession with ‘cosmeceuticals’ — cosmetic products that have medicinal properties — is evident on the shopping app Little Red Book where #安瓶 (#ampoules) was hashtagged over 100,000 times. Cutting-edge beauty products like ampoules are a great example of how Chinese consumers are now demanding sophisticated products and learning how to verify them. Especially the younger generations of internet-savvy female shoppers. However, younger consumers nowadays have shown little loyalty to the brands they buy as compared to older generations. Younger consumers want to see immediate effects, which causes the market to be tough to conquer. But with a digital-first strategy and grassroots KOL campaigns, brands can certainly find the sweet spot with this hot beauty trend.
Ikea to invest RMB 10B in China Operations
Funds will be used to upgrade all of IKEA’s existing stores in China while adding a network of smaller stores in central urban locations. The initiative also aims to enhance IKEA’s e-commerce resources and digital innovation in the country, where the retail giant’s growth has slowed in recent years. “China’s market for home furnishings is currently in a period of steady growth,” stated the president of IKEA China, citing the impact of urbanization, the burgeoning digital economy and rising per capita disposable income. Ikea is hoping to enhancing the user experience and business digitization to cater to the changing needs of the Chinese Middle Class Consumers.
3 Unique Features of China’s New Retail
The concept of ‘New Retail’ has proven to be revolutionary since 2017. Much has been written about how shopping in China is more technologically advanced than it is in the West, but at what point did China’s tech surpass the West’s, and what was the country’s formula for producing this unique and high-powered consumer ecosystem? This article elaborates on the foundation of today’s successful New Retail in China, using case studies as proof. Check it out!
The dark side of China’s beauty boom
$200 may sound like a lot to pay for a whitening serum by Korean beauty brand Sulwhasoo. But for Beijing based Yiyang Li, it’s worth the price. The average Chinese Female Middle Class Consumer uses 14 beauty products for their skin, hands and face, according to L’Oréal experts we have worked with. Young women all over China care hugely about their looks and express themselves through personal beauty. China is now the world’s second largest beauty market, trailing the US. But what’s driving their spending?
Alibaba acquires NetEase Kaola in deal worth $2 billion
Alibaba Group has acquired Kaola from Netease for $2 billion. Tmall Global and Kaola are China’s largest and second-largest cross-border e-commerce platforms, respectively, holding 31.7% and 24.5% of the market. These two businesses together will dwarf rivals like JD Worldwide, VIP International and Amazon China. The move has the potential to turn the cross-border e-commerce market on its head. Alibaba extends its leadership in e-commerce and looks to assert its dominance over arch-rival Tencent.
Weibo testing new social lifestyle app, Oasis
On Monday Chinese microblogging platform Weibo launched a new lifestyle platform, Oasis. It combines social media and forum functionalities. The launch of the new app may help microblogging platform Weibo fend off competition from Xiaohongshu, also known as RED. The app is a hybrid of Instagram and Xiaohongshu in layout and major features. For example, users can browse content based on interests and find like-minded friends in various fields such as fashion, food, travel, and beauty. Currently, it is being tested by invited trial users. Let’s see what suprises Oasis will bring to us in the future!
WeChat restricts controversial video face-swapping app Zao, citing ‘security risks’
A new app called Zao went viral in China this weekend for its realistic face-swapping videos. But after controversy about its user policy, WeChat restricted access to the app on its messaging platform. Where have we heard this story before? It is the umpteenth time WeChat has blocked a popular app. Although this time the reason seems to be legitimate. The hype around the app and its user policies has also focused more attention on general deepfake technology and the risks it poses.
Social Ad spend to triple to by 2023
A new report from Forrester says social advertising spend in China is likely to triple by 2023 as video continues to catalyse revenue per user on social platforms. “China already accounts for 44% of Asia Pacific’s social advertising spend, it is expected to grow from US$9.9 billion in 2018 to US$27.6 billion in 2023 — a CAGR of 22.8%.” China’s key players in the social media market have acquired huge user bases in the past decade and will start monetising them aggressively, according to Forrester. Weibo and Tencent have some of the lowest revenues per monthly active user (MAU)
Why Ampoules Present a Big Opportunity for Chinese Beauty
Chinese consumers’ new obsession with ‘cosmeceuticals’ — cosmetic products that have medicinal properties — is evident on the shopping app Little Red Book where #安瓶 (#ampoules) was hashtagged over 100,000 times. Cutting-edge beauty products like ampoules are a great example of how Chinese consumers are now demanding sophisticated products and learning how to verify them. Especially the younger generations of internet-savvy female shoppers. However, younger consumers nowadays have shown little loyalty to the brands they buy as compared to older generations. Younger consumers want to see immediate effects, which causes the market to be tough to conquer. But with
Ikea to invest RMB 10B in China Operations
Funds will be used to upgrade all of IKEA’s existing stores in China while adding a network of smaller stores in central urban locations. The initiative also aims to enhance IKEA’s e-commerce resources and digital innovation in the country, where the retail giant’s growth has slowed in recent years. “China’s market for home furnishings is currently in a period of steady growth,” stated the president of IKEA China, citing the impact of urbanization, the burgeoning digital economy and rising per capita disposable income. Ikea is hoping to enhancing the user experience and business digitization to cater to the changing
3 Unique Features of China’s New Retail
The concept of ‘New Retail’ has proven to be revolutionary since 2017. Much has been written about how shopping in China is more technologically advanced than it is in the West, but at what point did China’s tech surpass the West’s, and what was the country’s formula for producing this unique and high-powered consumer ecosystem? This article elaborates on the foundation of today’s successful New Retail in China, using case studies as proof. Check it out!
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