Market Updates
Get the latest China Marketing & E-commerce news with our monthly Market Updates.
Ikea to invest RMB 10B in China Operations
Funds will be used to upgrade all of IKEA’s existing stores in China while adding a network of smaller stores in central urban locations. The initiative also aims to enhance IKEA’s e-commerce resources and digital innovation in the country, where the retail giant’s growth has slowed in recent years. “China’s market for home furnishings is currently in a period of steady growth,” stated the president of IKEA China, citing the impact of urbanization, the burgeoning digital economy and rising per capita disposable income. Ikea is hoping to enhancing the user experience and business digitization to cater to the changing needs of the Chinese Middle Class Consumers.
3 Unique Features of China’s New Retail
The concept of ‘New Retail’ has proven to be revolutionary since 2017. Much has been written about how shopping in China is more technologically advanced than it is in the West, but at what point did China’s tech surpass the West’s, and what was the country’s formula for producing this unique and high-powered consumer ecosystem? This article elaborates on the foundation of today’s successful New Retail in China, using case studies as proof. Check it out!
New “Lion King” evokes fond memories of Chinese filmgoers
On July 12, the new version of “The Lion King” hit the big screens on the Chinese mainland, a week earlier than North American cinemas. And it was a big success! Many netizens left their abundant comments on some of China’s major social media platforms such as Weibo and Douban, saying that the film reminds them of their common memory of the post-1980’s generation childhood, from which they learned about love and courage. Interestingly, China’s movie box office will be surpassing the United States by 2020 to become the world’s largest film market, which makes the country the first choice for the premiere of an increasing number of international film productions.
‘Cinderella stories’ hold staying power in modern age
Last year it was the inspiring story of a heroine rising from a lowly maidservant to a royal concubine in ‘The Story of Yanxi Palace’. This year, it is a modern romance series titled ‘Go Go Squid’ that is likely to follow suit. Since its July 9 debut, Go Go Squid’s official hashtag has been viewed more than 12 billion times on Sina Weibo, China’s Twitter-like social media platform. Viewers of ‘Go Go Squid’ get to enjoy the development of a perfect relationship between a talented online singer who falls in love at first sight with a cybersecurity professional. Chinese TV watchers have yet to get bored with the classic story of an ordinary woman winning the affection of powerful men. Perhaps this is something brands should keep in mind?
Video is the Next Frontier for China E-Commerce
Video-driven e-commerce has been around since 2016. Now, video platforms such as Douyin and Kuaishou are selling Taobao products, and other social media platforms such as WeChat, Weibo, and Xiaohongshu are getting into the mix by testing e-commerce functions as well. Nowadays, e-commerce will focus more on the group of customers who aren’t active on the big platforms and have no immediate plans to make a purchase. To target this group, brands must work increasingly with third-party social platforms and create great content to grab their attention. This is where video comes in.
Chinese consumers wake up to sleep-aid products
There are 300 million Chinese people that suffer from sleep disorders, and the sleep quality of 94.1% of the public does not meet the healthy standard. As a result China’s sleep-aid market is growing. People are spending increasing amounts of money on products that can help them get a better night’s rest. The average annual online sales revenue growth of snooze-friendly products – such as bedding, sleep-monitoring devices and supplements – has surpassed 10%, according to CBNData. Apart from traditional products, consumers from major cities such as Beijing and Shanghai are more interested in new types of sleep aids, including melatonin, enzymes, sprays and smart devices.
How Sephora Links Social Commerce and New Retail With WeChat
What Sephora realized early on is the unique digital landscape in China — millions upon millions of consumers equipped with smartphones that have been immersed within the Tencent environment. Accordingly, last October, Sephora created a new retail system connecting its 200+ brick and mortar stores with their website, app, Tmall, JD, and their WeChat Mini Program to pave the wave for consumers to enjoy a truly seamless beauty experience. “I think to be successful in China, we have to make sure we always look for the next channel, that you are able to connect back to the heart of your business, which for us is about building the community.” said Benjamin Vuchot, Asia President of Sephora. And as a popular hub for chatting and sharing, WeChat is the natural space to build that community.
WeChat Gains on Tmall and JD.com in China Luxury Battle
A profound shift is underway in the country’s $115 billion luxury market. A growing number of luxury brands are more enthusiastic about WeChat commerce than selling through China’s top B2C e-tailers Tmall and JD.com, despite these platforms’ vigorous efforts to attract top-tier labels. Growth in the number of fashion labels operating flagships on these platforms has been modest this year. Whereas WeChat has actually reached a luxury shopping tipping point, with 60 percent of fashion brands now offering WeChat stores this year up from just 36 percent in 2018. Who is going to win the battle?
Ikea to invest RMB 10B in China Operations
Funds will be used to upgrade all of IKEA’s existing stores in China while adding a network of smaller stores in central urban locations. The initiative also aims to enhance IKEA’s e-commerce resources and digital innovation in the country, where the retail giant’s growth has slowed in recent years. “China’s market for home furnishings is currently in a period of steady growth,” stated the president of IKEA China, citing the impact of urbanization, the burgeoning digital economy and rising per capita disposable income. Ikea is hoping to enhancing the user experience and business digitization to cater to the changing
3 Unique Features of China’s New Retail
The concept of ‘New Retail’ has proven to be revolutionary since 2017. Much has been written about how shopping in China is more technologically advanced than it is in the West, but at what point did China’s tech surpass the West’s, and what was the country’s formula for producing this unique and high-powered consumer ecosystem? This article elaborates on the foundation of today’s successful New Retail in China, using case studies as proof. Check it out!
New “Lion King” evokes fond memories of Chinese filmgoers
On July 12, the new version of “The Lion King” hit the big screens on the Chinese mainland, a week earlier than North American cinemas. And it was a big success! Many netizens left their abundant comments on some of China’s major social media platforms such as Weibo and Douban, saying that the film reminds them of their common memory of the post-1980’s generation childhood, from which they learned about love and courage. Interestingly, China’s movie box office will be surpassing the United States by 2020 to become the world’s largest film market, which makes the country the first
‘Cinderella stories’ hold staying power in modern age
Last year it was the inspiring story of a heroine rising from a lowly maidservant to a royal concubine in ‘The Story of Yanxi Palace’. This year, it is a modern romance series titled ‘Go Go Squid’ that is likely to follow suit. Since its July 9 debut, Go Go Squid’s official hashtag has been viewed more than 12 billion times on Sina Weibo, China’s Twitter-like social media platform. Viewers of ‘Go Go Squid’ get to enjoy the development of a perfect relationship between a talented online singer who falls in love at first sight with a cybersecurity professional.
Video is the Next Frontier for China E-Commerce
Video-driven e-commerce has been around since 2016. Now, video platforms such as Douyin and Kuaishou are selling Taobao products, and other social media platforms such as WeChat, Weibo, and Xiaohongshu are getting into the mix by testing e-commerce functions as well. Nowadays, e-commerce will focus more on the group of customers who aren’t active on the big platforms and have no immediate plans to make a purchase. To target this group, brands must work increasingly with third-party social platforms and create great content to grab their attention. This is where video comes in.
Chinese consumers wake up to sleep-aid products
There are 300 million Chinese people that suffer from sleep disorders, and the sleep quality of 94.1% of the public does not meet the healthy standard. As a result China’s sleep-aid market is growing. People are spending increasing amounts of money on products that can help them get a better night’s rest. The average annual online sales revenue growth of snooze-friendly products – such as bedding, sleep-monitoring devices and supplements – has surpassed 10%, according to CBNData. Apart from traditional products, consumers from major cities such as Beijing and Shanghai are more interested in new types of sleep aids,
How Sephora Links Social Commerce and New Retail With WeChat
What Sephora realized early on is the unique digital landscape in China — millions upon millions of consumers equipped with smartphones that have been immersed within the Tencent environment. Accordingly, last October, Sephora created a new retail system connecting its 200+ brick and mortar stores with their website, app, Tmall, JD, and their WeChat Mini Program to pave the wave for consumers to enjoy a truly seamless beauty experience. “I think to be successful in China, we have to make sure we always look for the next channel, that you are able to connect back to the heart of
WeChat Gains on Tmall and JD.com in China Luxury Battle
A profound shift is underway in the country’s $115 billion luxury market. A growing number of luxury brands are more enthusiastic about WeChat commerce than selling through China’s top B2C e-tailers Tmall and JD.com, despite these platforms’ vigorous efforts to attract top-tier labels. Growth in the number of fashion labels operating flagships on these platforms has been modest this year. Whereas WeChat has actually reached a luxury shopping tipping point, with 60 percent of fashion brands now offering WeChat stores this year up from just 36 percent in 2018. Who is going to win the battle?
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