Market Updates
Find out what is happening in the Chinese Digital Market with our Market Updates.
Mobike Partners with Louis Vuitton to Provide Location-Based Services
In the category: unexpected collaborations, Louis Vuitton and Mobike have partnered up for a Location Based Services campaign. The campaign is aimed at promoting the historical exhibition of Louis Vuitton in Shanghai. Users of Mobike will see the ad for the exhibition when opening the APP and even the icons of the bikes have been customized. The core mechanism of LBS is that it will automatically recognize the current location of the user, and inform them of the events in surrounding areas, where to sign up, acquire the virtual badges of the brand, and participate in certain events. Although we doubt this is the first LBS campaign Mobike does, this case is an interesting example of
New law brings structure, discipline to the willful world of Chinese e-commerce
China became the world’s largest online retail market in 2013 and has continued growing year after year, as last week’s Alibaba’s Singles’ Day has indicated. Despite the exponential growth, the industry’s development has long been plagued by shady business practices from selling counterfeits to “brushing” of orders, the uncontrolled business practice aimed at crippling competitors by creating fake orders. Thus, to control and bring discipline to the Chinese e-commerce, the government has approved a new Electronic Commerce Law that will take effect on January 2019. The new regulations broaden the definition of e-commerce operators. Previously these only included regular e-commerce platforms such as Taobao and JD but will now also include non-traditional channels such as WeChat
China touts US$57.8 billion deals after Shanghai import expo, but how much of that is window-dressing?
The first China International Import Expo (CIIE), hailed as symbol of China opening up, was held from Nov. 5 to Nov. 10, 2018 in Shanghai. During the expo Chinese firms signed import deals worth more than 57.8 billion US dollars which included sectors such as smart manufacturing, consumer goods, food and agricultural products and services. However, business figures said that many of the deals had been agreed in advance and only announced at the event to dress up the overall numbers. Furthermore, some deals would have gone ahead even without the expo. This could point to the government’s intentions of merely using the event to enhance its image as a powerful global buyer.
Alibaba sets new Singles’ Day record with $31B in sales, but growth is slowing
The Singles’ Day event has grown into the world’s largest online shopping festival. The total revenue of 2018 represents a 27% increase from 2017 setting a new record with $30.8 billion in sales. However, this represent the lowest-ever annual growth rate for the event which might be a consequence of the economic downturn that hit China and it might be indicating that the shopping day is hitting it’s ceiling. This year, merchants from over 200 countries participated in the tenth edition of November 11 shopping festival. Some of the fastest growing categories by GMV were health supplements, small home appliances and skincare.
How Douyin Drives Sales: One KOL Shares Experience with China’s Viral Video App
Short video apps, such as China’s Douyin, have become an important marketing tool targeting the short attention spans of Gen-Z consumers. Douyin seems to be one of the most conducive for comments and engagement among the Chinese social media platforms. Beijing-based key opinion leader (KOL) Antoine Bunel suggest that brands should strike a balance between creating catchy, striking content that communicates a brand’s image without being too brand or logo-heavy. It is also important to remind that Douyin is now a hot platform, however in China trends are constantly changing. So, don’t put all your eggs in one basket and diversify your presence in Chinese social medias.
4 Tactics to Navigate the Changing WeChat Landscape
WeChat dominance in China’s mobile space has been declining. According to a recent report, the average read count of articles published on WeChat decreased 24 percent in 2017 from the previous year; the average open rate for articles has fallen to under 5 percent in 2017; and the share of mobile time consumers spent on WeChat decreased from 28 percent in 2017 to 23 percent in 2018. These trends indicate that it is necessary for brands to re-evaluate their strategies on the platform. Investing in WeChat without clear objectives and strategies may lead to huge disappointments and monetary losses, so it is necessary to understand how WeChat is able to help you address your business needs.
3 Key Platforms for B2B KOLs in China
The main platforms used by B2B KOLs around the world are different. While in the west influencers usually use LinkedIn, email lists and podcasts, in China that is very different. Popular platforms used in China for B2B KOLs are Zhihu, Ximalaya FM and Zhishi Xingqiu. Each platform has its own distinct features and serves a different purpose, however all of them enable leaders to monetize their expertise. In China, this trend even has its own name: 知识付费 or “Pay-for-Knowledge”
What Lies Ahead for Daigou in 2019
Daigou is an overseas personal shopper that brings anything from vitamins to luxuries goods to Mainland China. Chinese consumers love them because they can buy products at lower prices that might not even be available in China. But most brands detest daigou as they undercut their traditional sales and spread their branding with rogue messaging. And then there is the Chinese government, they too would prefer legitimate cross border commerce over the daiguo trade. That is why they will implement another round of rules and regulations in 2019 to suppress this grey market. This could be tricky for those brands that did actually work with daiguo and have build their entire China strategy on these foot
Mobike Partners with Louis Vuitton to Provide Location-Based Services
In the category: unexpected collaborations, Louis Vuitton and Mobike have partnered up for a Location Based Services campaign. The campaign is aimed at promoting the historical exhibition of Louis Vuitton in Shanghai. Users of Mobike will see the ad for the exhibition when opening the APP and even the icons of the bikes have been customized. The core mechanism of LBS is that it will automatically recognize the current location of the user, and inform them of the events in surrounding areas, where to sign up, acquire the virtual badges of the brand, and participate in certain events. Although
New law brings structure, discipline to the willful world of Chinese e-commerce
China became the world’s largest online retail market in 2013 and has continued growing year after year, as last week’s Alibaba’s Singles’ Day has indicated. Despite the exponential growth, the industry’s development has long been plagued by shady business practices from selling counterfeits to “brushing” of orders, the uncontrolled business practice aimed at crippling competitors by creating fake orders. Thus, to control and bring discipline to the Chinese e-commerce, the government has approved a new Electronic Commerce Law that will take effect on January 2019. The new regulations broaden the definition of e-commerce operators. Previously these only included regular
China touts US$57.8 billion deals after Shanghai import expo, but how much of that is window-dressing?
The first China International Import Expo (CIIE), hailed as symbol of China opening up, was held from Nov. 5 to Nov. 10, 2018 in Shanghai. During the expo Chinese firms signed import deals worth more than 57.8 billion US dollars which included sectors such as smart manufacturing, consumer goods, food and agricultural products and services. However, business figures said that many of the deals had been agreed in advance and only announced at the event to dress up the overall numbers. Furthermore, some deals would have gone ahead even without the expo. This could point to the government’s intentions
Alibaba sets new Singles’ Day record with $31B in sales, but growth is slowing
The Singles’ Day event has grown into the world’s largest online shopping festival. The total revenue of 2018 represents a 27% increase from 2017 setting a new record with $30.8 billion in sales. However, this represent the lowest-ever annual growth rate for the event which might be a consequence of the economic downturn that hit China and it might be indicating that the shopping day is hitting it’s ceiling. This year, merchants from over 200 countries participated in the tenth edition of November 11 shopping festival. Some of the fastest growing categories by GMV were health supplements, small home
How Douyin Drives Sales: One KOL Shares Experience with China’s Viral Video App
Short video apps, such as China’s Douyin, have become an important marketing tool targeting the short attention spans of Gen-Z consumers. Douyin seems to be one of the most conducive for comments and engagement among the Chinese social media platforms. Beijing-based key opinion leader (KOL) Antoine Bunel suggest that brands should strike a balance between creating catchy, striking content that communicates a brand’s image without being too brand or logo-heavy. It is also important to remind that Douyin is now a hot platform, however in China trends are constantly changing. So, don’t put all your eggs in one basket and
4 Tactics to Navigate the Changing WeChat Landscape
WeChat dominance in China’s mobile space has been declining. According to a recent report, the average read count of articles published on WeChat decreased 24 percent in 2017 from the previous year; the average open rate for articles has fallen to under 5 percent in 2017; and the share of mobile time consumers spent on WeChat decreased from 28 percent in 2017 to 23 percent in 2018. These trends indicate that it is necessary for brands to re-evaluate their strategies on the platform. Investing in WeChat without clear objectives and strategies may lead to huge disappointments and monetary losses,
3 Key Platforms for B2B KOLs in China
The main platforms used by B2B KOLs around the world are different. While in the west influencers usually use LinkedIn, email lists and podcasts, in China that is very different. Popular platforms used in China for B2B KOLs are Zhihu, Ximalaya FM and Zhishi Xingqiu. Each platform has its own distinct features and serves a different purpose, however all of them enable leaders to monetize their expertise. In China, this trend even has its own name: 知识付费 or “Pay-for-Knowledge”
What Lies Ahead for Daigou in 2019
Daigou is an overseas personal shopper that brings anything from vitamins to luxuries goods to Mainland China. Chinese consumers love them because they can buy products at lower prices that might not even be available in China. But most brands detest daigou as they undercut their traditional sales and spread their branding with rogue messaging. And then there is the Chinese government, they too would prefer legitimate cross border commerce over the daiguo trade. That is why they will implement another round of rules and regulations in 2019 to suppress this grey market. This could be tricky for those
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