Market Updates
Find out what is happening in the Chinese Digital Market with our Market Updates.
Shopping app Little Red Book opens platform for brand-KOL partnerships
A few months ago RED opened up the shopping cart features, and now it has taken a step towards encouraging partnerships between brands and KOLs. It opened a platform for verified brands and KOLs to search for and find each other. Companies and MCNs can now find influencers by searching content tags and view statistics such as a content creators’ fan count, number of likes, average hits over the past 30 days, and average number of comments per post. Could a next step be that we can match the demographics of the fan base as well? That is still missing in most KOL plans. But this new feature is a step in the right direction for
On WeChat, Daigou Get Creative to Skirt New E-Commerce Law
Daigou (cross-border personal shoppers) are affected by the changes in the Ecommerce law but they seem to be at a loss on where to start to comply with it. Instead they are trying to “stay low” through all kinds of tactics including hand drawn pictures of the products they sell and writing the description in different languages. How long do you think it will take for WeChat to crack down on them?
Weibo plans to increase content-driven e-commerce investment
Weibo Corp, a leading social media platform, is investing 2 billion yuan ($290 million) to support content-driven e-commerce. Seeing as how the competition has shifted from expanding user scale to increasing the time users spend on app, Weibo is also attempting to better cater to the tech-savvy younger generation. To attract top content creators, and enrich content consumption Weibo will be launching an upgraded app, which further promotes video as a primary access point. It will include features premium video content with intellectual property rights-related products or video content by top KOLs.
Short video app Kuaishou doubles down on domestic e-commerce
Earlier this month, Douyin opened its shopping cart feature. It’s rival short video app Kuaishou following up, upgraded its e-commerce services, giving preference to domestically produced goods and partnering with Chinese e-commerce giants services such Alibaba-owned Taobao and Tmall, as well as mobile e-commerce platform Youzan in the hope of commercializing its 150 million daily active users. Products will be displayed with more prominence and order tracking and management features are integrated within the app.
Baidu to invest RMB 1 billion in mini-program development
The mini-program battle is still on. Initially, mini-programs was created by WeChat, with a whopping 580,000 mini-programs being launched in 2017. Recognizing the attractive market, Chinese search giant Baidu recently launched an RMB 1 billion (around $140 million) mini-program fund targeting startups and developers to accelerate the construction of its mini-program ecosystem. A number of apps already plan to collaborate with Baidu to bring the mini-program feature to their users, such as Bilibili, iQiyi, Kuaishou, Moji Weather and Chinese Calendar. This could be a great opportunity for startups and developers to acquire users in a new way. It is exciting to see the results!
Slow growth aside, Singles’ Day displayed its value to China retail
The growth rate of Singles’ Day has been slowing since 2015. This year, Singles’ Day GMV grew 23.7%, compared to last years’ 43.5% growth. But growth figures aside, Singles’ Day has changed China’s retail landscape as it continually introduces new brands and products from different countries. For some overseas retailers, Singles’ Day was a valuable opportunity to gain brand recognition in China. The festival does not only let Chinese consumers enjoy a wider selection of products but also allows brands to consolidate their foothold in the country. It also forced retailers to up their game, creating an upgraded retail landscape with unconventional shopping experiences. From connecting China with other countries, boosting the online-offline retail integration, to
Baidu-backed Haokan Video blocked from WeChat Moments
The competition between Chinese tech giants has reached yet a new feverish pitch. Tencent has blocked Baidu-backed video platform Haokan from sharing content to WeChat’s popular feed. Haokan content shared on WeChat Moments was only visible to the sharer, not to his or her contacts. Tencent is trying to keep up with the video trend, so far, they launched more than 10 video apps targeting different user groups. At the same time, it is defending its position in the market by limiting access to rival platforms on WeChat seeing as how that is still considered the dominant entry point for online services in China. It is probably only a matter of time before another APP gets
Upstart Chinese apps use aggressive clickbait and free cash tactics to win over new users
Acquiring users for a new APP is hard in any market but especially in China. Big players, such as Tencent, Alibaba and Baidu compete for large market shares. And in order to compete, companies need to come up with some good and new ideas. An interesting strategy used by the new generation of Chinese e-companies is to give discounts and coupons for their users in order to establish a better position in the competitive market. This strategy involves paying users to play games, to watch videos or to convince others to join the new app. Although this strategy helps to rapidly increase the number of users, it is doesn’t take away the need for the APP
Shopping app Little Red Book opens platform for brand-KOL partnerships
A few months ago RED opened up the shopping cart features, and now it has taken a step towards encouraging partnerships between brands and KOLs. It opened a platform for verified brands and KOLs to search for and find each other. Companies and MCNs can now find influencers by searching content tags and view statistics such as a content creators’ fan count, number of likes, average hits over the past 30 days, and average number of comments per post. Could a next step be that we can match the demographics of the fan base as well? That is still
On WeChat, Daigou Get Creative to Skirt New E-Commerce Law
Daigou (cross-border personal shoppers) are affected by the changes in the Ecommerce law but they seem to be at a loss on where to start to comply with it. Instead they are trying to “stay low” through all kinds of tactics including hand drawn pictures of the products they sell and writing the description in different languages. How long do you think it will take for WeChat to crack down on them?
Weibo plans to increase content-driven e-commerce investment
Weibo Corp, a leading social media platform, is investing 2 billion yuan ($290 million) to support content-driven e-commerce. Seeing as how the competition has shifted from expanding user scale to increasing the time users spend on app, Weibo is also attempting to better cater to the tech-savvy younger generation. To attract top content creators, and enrich content consumption Weibo will be launching an upgraded app, which further promotes video as a primary access point. It will include features premium video content with intellectual property rights-related products or video content by top KOLs.
Short video app Kuaishou doubles down on domestic e-commerce
Earlier this month, Douyin opened its shopping cart feature. It’s rival short video app Kuaishou following up, upgraded its e-commerce services, giving preference to domestically produced goods and partnering with Chinese e-commerce giants services such Alibaba-owned Taobao and Tmall, as well as mobile e-commerce platform Youzan in the hope of commercializing its 150 million daily active users. Products will be displayed with more prominence and order tracking and management features are integrated within the app.
Baidu to invest RMB 1 billion in mini-program development
The mini-program battle is still on. Initially, mini-programs was created by WeChat, with a whopping 580,000 mini-programs being launched in 2017. Recognizing the attractive market, Chinese search giant Baidu recently launched an RMB 1 billion (around $140 million) mini-program fund targeting startups and developers to accelerate the construction of its mini-program ecosystem. A number of apps already plan to collaborate with Baidu to bring the mini-program feature to their users, such as Bilibili, iQiyi, Kuaishou, Moji Weather and Chinese Calendar. This could be a great opportunity for startups and developers to acquire users in a new way. It is
Slow growth aside, Singles’ Day displayed its value to China retail
The growth rate of Singles’ Day has been slowing since 2015. This year, Singles’ Day GMV grew 23.7%, compared to last years’ 43.5% growth. But growth figures aside, Singles’ Day has changed China’s retail landscape as it continually introduces new brands and products from different countries. For some overseas retailers, Singles’ Day was a valuable opportunity to gain brand recognition in China. The festival does not only let Chinese consumers enjoy a wider selection of products but also allows brands to consolidate their foothold in the country. It also forced retailers to up their game, creating an upgraded retail
Baidu-backed Haokan Video blocked from WeChat Moments
The competition between Chinese tech giants has reached yet a new feverish pitch. Tencent has blocked Baidu-backed video platform Haokan from sharing content to WeChat’s popular feed. Haokan content shared on WeChat Moments was only visible to the sharer, not to his or her contacts. Tencent is trying to keep up with the video trend, so far, they launched more than 10 video apps targeting different user groups. At the same time, it is defending its position in the market by limiting access to rival platforms on WeChat seeing as how that is still considered the dominant entry point
Upstart Chinese apps use aggressive clickbait and free cash tactics to win over new users
Acquiring users for a new APP is hard in any market but especially in China. Big players, such as Tencent, Alibaba and Baidu compete for large market shares. And in order to compete, companies need to come up with some good and new ideas. An interesting strategy used by the new generation of Chinese e-companies is to give discounts and coupons for their users in order to establish a better position in the competitive market. This strategy involves paying users to play games, to watch videos or to convince others to join the new app. Although this strategy helps
Would you like to stay up to date?
Sign up to our newsletter if you want a monthly digest of the latest Chinese Digital Marketing news!