What do you think is the biggest consumer change after COVID-19 in China? McKinsery’s Daniel Zipser was surprised to see China’s “premiumization” trend continue during the crisis, with premium brands gaining share. This has clear implications for imported brands. Read on for the complete interview.

Another new term is surfacing in China: “CulturalCommerce“. The new cultural reality series “The Summer Palace” (我在颐和园等你), is a great example of this. It revolves around a group of celebrities experiencing China’s heritage. The underlying goal of promoting national (aka guochao 国潮) brands and cultural products (wenchuang 文创). The combination of “celebrities + craftsmanship + commerce” works to engage audiences with content that is entertaining and educational that can also inspire purchases of goods seen on the program via Taobao, the show’s e-commerce partner. Read more about Cultural Commerce and get a scoop on streaming figures, gaokao encouragement, and museums on Douyin in this post!

The pandemic’s economic impact continues to shape consumption in China. Those cities relatively unaffected – such as Shanghai – have continued to be consumption powerhouses. However, cities which have had outbreaks, or rely on interprovincial labour, such as Wuhan, Beijing and Shenzhen, are still some way off full economic recovery. Just as AgencyChina’s Research and Strategy Manager Michael Norris opines, economic clusters, rather than city tiers, is the best way to assess your China market entry. Would you like our team to make an assessment for your brand? Get in touch!

Have you heard the term “Community Content” before? Similar to the trend of Private Traffic more brands are taking consumers into brand-operated chat groups to deliver more valuable experiences through Community Content. At the core of this value exchange is superior content creation and a true connection between the brand and it’s followers. Is your brand’s content hitting the mark?

Despite the economic shock of the coronavirus, analysts say China’s demand for luxury goods hasn’t waned much. On top of that the virus keeps Chinese from traveling, so several analysts expect them to buy more luxury products at home. As a result, luxury brands that have significant presences in Hong Kong are considering increasing their footprint in Mainland China. Last year, Chinese shoppers accounted for 35% of 281 billion euros ($317 billion) last year in global luxury spending, most of which has typically occurred overseas or in Hong Kong. A good chunk of that expenditure will be repatriated this year. Is your brand ready?

China Eastern Airlines, one of China’s three major state-owned air carriers, introduced a “flight pass” package for unlimited weekend travel to all of the airline’s domestic destinations. Customers who purchase the pass will be allowed to travel economy class with very few restrictions. Priced at 3,322 yuan ($470), the product can be used for unlimited trips within China through the end of the year. Previously, China’s largest online travel agent, Ctrip, had introduced pre-paid hotel packages that could be redeemed over 2020. That was a breakthrough for the domestic hotel industry, where 50% of room nights are booked on the day of stay. Are China’s consumers warming up to pre-paid vouchers? If so, what other areas might see business model changes outside travel?

NEIWAI, a Chinese lingerie brand, has built a DTC brand across online and offline channels. In this interview with Jing Daily, Xiaolu Liu, NEIWAI’s founder, talks about the brand’s efforts in China. One of the difficulties Xiaolu mentions is building a DTC brand in an environment where e-commerce marketplaces dominate. We’re working with a few brands on building DTC brands in WeChat. Contact us to find out more.

Effective January 1st, 2021, animal testing will be removed as a mandatory measure for imported cosmetics entering the Chinese market. The new regulations would mean that pre-market testing is no longer necessary for new products, though testing is still a possibility in post-market or in “special” products like hair dye. The law won’t be set in stone until it passes through a period of public review, but experts are confident. Are you a clean beauty brand that’s looking at China? Now may be the time to make your move!