Market Updates
Find out what is happening in the Chinese Digital Market with our Market Updates.
The Rising Potential of China’s New Seniors
China is no exception when it comes to millennial obsession. However, a closer look reveals that elderly people (defined as over-60s) represent the fastest growing generational group in China. This group accounts for over 170 million people, representing more than a quarter of all Chinese households. And they are experiencing Life after parenthood, live more Pragmatic and healthier lives, and they are exploring new social encounters. For example, research has shown that China’s middle age and senior travelers make up 46% China’s outbound tourists, but are frequently forgotten as a result of the hype around millennial travelers. Marketers should take this as an opportunity to diversify from the competitive millennials market.
Online accounted for 21.2% of total consumer retail sales in Jan, Feb 2019
Did you think the retail market in China was big already? Think again! In the first two months of 2019, total retail sales of consumer goods in China grew by 8.2% year-on-year to 6,606.4 billion yuan (US$984.49bn). The total retail sales in China is projected to exceed US$5.6 trillion in 2019 and over 63% by 2022. That is just 3 years from now! That assumption indicates there is ample room for brands and marketers to come alone with good products and creative marketing ideas to seize a corner in this massive market. But make sure you are well prepared, know what is right and wrong in China, and know who your target audience is. Because the China market is ruthlessly competitive and it’s consumers unforgiving.
China has big plans for Fitness
The rise of athleisure is the materialization of a bigger phenomenon which has been spreading out across sectors. From healthy food to sports accessories, emerging brands have been challenging the status quo of established brands. So many brands have to reevaluate and change the way they market their products to Chinese consumers. Thanks, in part, to this nationwide push for healthier lifestyles, fitness has been a rising focus for the KOLs in China，especially in China’s first and second-tier cities.
Chinese Women Hold Up Most of the Travel Industry
Chinese women don’t just hold up half the sky, they’re holding up entire industries. A growing proportion of travel consumers and decision-makers in China are now women, according to a report released by Ctrip. The report states that women travel more than their male counterparts, and also spend more as well. And social media is playing a pivotal role in their travel decisions. Hence, it is important for marketers to think out of the box with creative campaigns to stand up in the lucrative sector.
Pinduoduo eyes high-end buyers in cross-border e-commerce launch
Social e-commerce platform Pinduoduo is expanding into China’s booming cross-border e-commerce business in an effort to meet growing consumer demand for quality goods. The expansion comes as Chinese e-commerce giants are raising stakes in their globalization initiatives, aiming to bring in more imported products – seen as higher quality – to increasingly selective customers. It is charging zero commission at present for key accounts including consumer brands and online retailers. Global FMCG giants including Nestle, Unilever, and Beijing-based Japanese consumer goods retailer Wandougongzhu have filed their applications and are waiting for approval.
How Vipshop’s WeChat E-Commerce Mini-Program Added Users but Not Revenue
More and more companies have adapted their business models in China to include a Wechat shop, especially WeChat mini-program shops lately. But brands have to keep in mind what makes selling on WeChat potentially profitable. Namely the social sharing feature, creating a sort of Facebook/Groupon mash-up. And that is not something that is created overnight, it is not an “easy win”, not even for the big guys. In June 2018, Vipshop launched a new B2C selling mini-program called Yun Pincang (云品仓), which invites an individual customer to become an “advocate” of a product. User numbers of this mini-program have grown by an impressive 38.3%. However, it yielded lower-than-expected revenues. So it still remains to be seen whether Vipshop can turn its increased user growth into increased revenue via WeChat. And how that might happen.
4 China Marketing Experts: How can brands use travel influencers?
Working with travel and tourism Key Opinion Leaders (KOL) isn’t a new marketing strategy for travel brands in China. But how brands use KOLs that frequently travel for work, business or leisure is a relatively new question. Parklu asked four travel and hospitality industry experts on how they’re seeking an edge by working with traveling influencers outside the travel and F&B space to explore new opportunities offered on platforms like Xiaohongshu and Douyin. Read more to find out the answer!
Where Are WeChat Mini-Programs Headed in 2019?
WeChat Mini-Programs took off in 2018, with thousands of brands and retailers diving in to explore business opportunities. This article summarizes survey results from 8,000 WeChat Mini-Program users and links use habits to implications for brands and retailers. Nearly 70% of users are optimistic about Mini-Programs future development, and over 40% think mini-programs can replace stand-alone apps someday.
The Rising Potential of China’s New Seniors
China is no exception when it comes to millennial obsession. However, a closer look reveals that elderly people (defined as over-60s) represent the fastest growing generational group in China. This group accounts for over 170 million people, representing more than a quarter of all Chinese households. And they are experiencing Life after parenthood, live more Pragmatic and healthier lives, and they are exploring new social encounters. For example, research has shown that China’s middle age and senior travelers make up 46% China’s outbound tourists, but are frequently forgotten as a result of the hype around millennial travelers. Marketers should
Online accounted for 21.2% of total consumer retail sales in Jan, Feb 2019
Did you think the retail market in China was big already? Think again! In the first two months of 2019, total retail sales of consumer goods in China grew by 8.2% year-on-year to 6,606.4 billion yuan (US$984.49bn). The total retail sales in China is projected to exceed US$5.6 trillion in 2019 and over 63% by 2022. That is just 3 years from now! That assumption indicates there is ample room for brands and marketers to come alone with good products and creative marketing ideas to seize a corner in this massive market. But make sure you are well prepared,
China has big plans for Fitness
The rise of athleisure is the materialization of a bigger phenomenon which has been spreading out across sectors. From healthy food to sports accessories, emerging brands have been challenging the status quo of established brands. So many brands have to reevaluate and change the way they market their products to Chinese consumers. Thanks, in part, to this nationwide push for healthier lifestyles, fitness has been a rising focus for the KOLs in China，especially in China’s first and second-tier cities.
Chinese Women Hold Up Most of the Travel Industry
Chinese women don’t just hold up half the sky, they’re holding up entire industries. A growing proportion of travel consumers and decision-makers in China are now women, according to a report released by Ctrip. The report states that women travel more than their male counterparts, and also spend more as well. And social media is playing a pivotal role in their travel decisions. Hence, it is important for marketers to think out of the box with creative campaigns to stand up in the lucrative sector.
Pinduoduo eyes high-end buyers in cross-border e-commerce launch
Social e-commerce platform Pinduoduo is expanding into China’s booming cross-border e-commerce business in an effort to meet growing consumer demand for quality goods. The expansion comes as Chinese e-commerce giants are raising stakes in their globalization initiatives, aiming to bring in more imported products – seen as higher quality – to increasingly selective customers. It is charging zero commission at present for key accounts including consumer brands and online retailers. Global FMCG giants including Nestle, Unilever, and Beijing-based Japanese consumer goods retailer Wandougongzhu have filed their applications and are waiting for approval.
How Vipshop’s WeChat E-Commerce Mini-Program Added Users but Not Revenue
More and more companies have adapted their business models in China to include a Wechat shop, especially WeChat mini-program shops lately. But brands have to keep in mind what makes selling on WeChat potentially profitable. Namely the social sharing feature, creating a sort of Facebook/Groupon mash-up. And that is not something that is created overnight, it is not an “easy win”, not even for the big guys. In June 2018, Vipshop launched a new B2C selling mini-program called Yun Pincang (云品仓), which invites an individual customer to become an “advocate” of a product. User numbers of this mini-program have
4 China Marketing Experts: How can brands use travel influencers?
Working with travel and tourism Key Opinion Leaders (KOL) isn’t a new marketing strategy for travel brands in China. But how brands use KOLs that frequently travel for work, business or leisure is a relatively new question. Parklu asked four travel and hospitality industry experts on how they’re seeking an edge by working with traveling influencers outside the travel and F&B space to explore new opportunities offered on platforms like Xiaohongshu and Douyin. Read more to find out the answer!
Where Are WeChat Mini-Programs Headed in 2019?
WeChat Mini-Programs took off in 2018, with thousands of brands and retailers diving in to explore business opportunities. This article summarizes survey results from 8,000 WeChat Mini-Program users and links use habits to implications for brands and retailers. Nearly 70% of users are optimistic about Mini-Programs future development, and over 40% think mini-programs can replace stand-alone apps someday.
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