More pet market news from China! At present, pet insurance rates in China are well below other markets, with many pet owners paying all pet medical bills out-of-pocket. Alipay, in partnership with China Continent Insurance and digital insurer ZhongAn, has launched pet insurance. An annual premium for the service starts at 199 yuan (US$28), getting buyers a 3,000-yuan (US$429) policy that covers accidents and non-congenital diseases. AgencyChina’s Research and Strategy Manager Michael Norris believes higher rates of health insurance will redirect spend on pets to better quality pet food, treats, nutritional supplements and toys. Contact us if you’d like to speak to our team about their experience in helping pet care brands get started in China.

Virtual idols are on the rise! These digital celebrities have become exponentially more popular since the COVID crisis. They sing, dance, and offer versatility for brands. The virtual world resonates deeply with China’s Gen Z demographic, a digitally native generation. Brands seeking to reach this group of consumers are increasingly turning to virtual idols to represent their products. Li-Ning for example “hired” Xing Tong, a virtual idol in Tencent’s QQ Dance game as their ambassador. This type of creative content helps merge Li Ning’s status as a “national trend” (guochao) brand with the futuristic gameplay of QQ Dance. Have you considered if a virtual influencer or KOL would be a good strategy for your brand?

You’ve definitely heard about livestreaming and short video, here’s the latest information translated into English. Half of the Top 20 short video apps are owned by three Chinese companies: Bytedance, Joyy, and Kuaishou (Kwai). Have you tried marketing on these platforms? If you’re interested, speak to our team.

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?