Good news for friends and partners in Italy – top leaders are calling for closer bilateral ties, including more people-to-people exchanges and trade. SMEs in Italy who are looking to enter China can still apply for our Restart 2020 Program. Restart 2020 is a 180-day plan to stabilize and optimize your operations in China. Whatever stage your business is at, our team will work with you to set and execute against a 180-day plan. We start with a blank canvas. What 180 days looks like, and what can be achieved, is completely up to you. It could execution against a revised go-to-market strategy, a daring shake-up of distribution channels, a new product launch, a refreshed product portfolio or a thriving online community. We are a partner that can work as fast or as steady as you need. That’s an important quality in a challenging time.

It took less than a year for an obscure Italian fashion brand to win over China’s Generation Z. This video from Sixth Tone shows how China’s Gen Z came to know the infamous one-size-only-fits-small fashion label, and what it says about beauty standards in China today. Spoiler Alert: The key is Little Red Book + Influencers

A new report suggests consumer spending in China will be back on track next year. There are many positive signs that show that consumption is on the rise. Mintel, a consultancy, predicts China’s consumption is likely to climb at a compound annual growth rate of 7.3 percent from next year to 2024.

The end of China’s one-child policy didn’t result in a baby boom. One of the key reasons is economic – families aren’t financially prepared to have a second child. That has a couple of implications. First, it means larger families are the preserve of China’s elite. Second, it means that single-child families will continue to represent China’s “nuclear family”.

Remember that we said sources of social proof, such as key opinion customers, influencers and celebrities are critical for new brands to gain traction? One staggering statistic to proof the power of KOLs in China is the 6 billion USD in sales that Viya made last year. The art of selling through livestreaming is not for everyone, but when done right the audience can be persuaded to buy the products on display not just because of the major discounts, but because they trust the recommendation of the KOL. “E-commerce livestreaming has redefined the relationship between people and products and consumption,” economist Wu Xiaobo wrote in his blog. “It puts people first, promoting the circulation efficiency of products and creating a consumption occasion. Consumers’ trust in products is subtly replaced by their trust in people.”

Remember our piece on childhood obesity in China a few weeks ago? Presently, one in five Chinese children aged 7 to 18 are overweight or obese, up from 2.6% in 1985. Well, authorities are already acting.Physical education will soon carry the same weight on the national high school entrance exam as Chinese language, mathematics, and English, with fitness class’s weighting to be increased gradually each year until it is on par with the other subjects, China’s education ministry announced Friday.

Many cruelty-free cosmetic companies are eagerly anticipating the implementation of the Cosmetics Supervision and Administration Regulation (CSAR) on 1 January 2021. In 2014, China took an initial step away from mandatory animal testing by establishing criteria for waiving this requirement for ‘ordinary’ cosmetics produced in the country. The new CSAR lays the groundwork to extend this waiver to imported ordinary cosmetics as well.

Despite disruption to grey-market importers (“Daigou”), other sources of social proof, such as key opinion customers, influencers and celebrities are still critical for new brands to gain traction. Identifying, activating and collaborating sources of social proof is critical for new brands as they enter. AgencyChina typically recommend an activation runway of at least between three and five months before online launch, depending on how well-known the brand is in-market, and how well known it is outside the Chinese market. Yes, you read that well, brand awareness outside China is just as important as that inside China. When entering the market ti might even be more important. Want to know why? Contact us to talk to one of our experts!