Category

Start-up wine brand Lady Penguin achieved RMB 20 million in sales on Double 11 and is predicted to see sales of over RMB 160 million for 2019. According to the joint report between China’s eCommerce platform Tmall and business data center CBN Data, the online alcohol market in China was worth RMB 7 trillion in 2017, growth of about 33% YOY, with the offering becoming increasingly sophisticated and diverse.  Click for more…

INSIGHT & IMPLICATION: With an improvement in living standards and consumption upgrade, alcohol consumption has transformed from being driven by gifting to personal enjoyment. However, the choice on offer has sharply increased, giving brands an opportunity to focus on product recommendations and industry expertise. Lady Penguin started with content creation and product recommendations on WeChat and then expanded to brand building and channel development. In an information-overloaded market, building up trust between consumers and brands through content and meaningful engagement is the key and can help cut down the length of the purchase journey, allowing small brands to compete with established, internationally-known liquor companies.

Consumer

According to business data center CBN Data, 63.5% of China’s post-90s consumers are aware of the importance of leading a healthy lifestyle (养生) and 34.5% of them have taken actions to improve their health. This includes consumption of vitamin supplements (38%) and regular visits to massage and spas (38%). Click for more…

INSIGHT & IMPLICATION: As most of the post-90s generation have now entered adulthood and the stress of modern life grows year by year, a group of so-call ‘grandmillennials’ (奶奶青年) symbolise the unique attitude of the generation. They do not desire material wealth or even a highly successful career and they take care of themselves by participating in healthy habits like soaking their feet in hot water (泡脚) and cooking healthy soup (煲汤); they do not engage in extreme sports or have active social lives but enjoy gardening and breeding fish. They live a frugal and stable life. In the era of consumerism, it is easy for brands to ignore these ‘grandmillennials’ but they are not a minority. Brands need to better understand what drives this consumer segment and what the brand role could be in the experiences they seek.

Culture

The latest social craze, the “Shoulder Shaking Dance”, has taken over universities in China with more than 1,000 videos uploaded to online video platform Bilibili in November 2019. In each video, students stand under their school emblem and shake their shoulders along with catchy music <Coincidance>. Top videos have so far gained over 1.5 million views in only a few days. Click for more…

INSIGHT & IMPLICATION: This simple gesture has swept China’s Internet in no time and students from different universities spontaneously post similar videos to join in the craze. Media calls it a ‘cyber gathering’ of students across the country. The ease of replicating the dance move and a feeling of belonging to the nation-wide student community are the key elements in making it a hit. As digital natives, Chinese students today engage with ease on the country’s social media platforms, but also expect to be reached in a meaningful way. Brands should think about how they can leverage different elements of possible engagement, such as a particular movement, song or even a facial expression, and integrate them into communications assets.

Media

Global eCommerce behemoth Amazon launched a pop-up store on China’s group buying platform Pinduoduo in November, offering users a curated selection of about 1000 imported products. Click for more…

INSIGHT & IMPLICATION: After announcing the shuttering of its China eCommerce marketplace in April, Amazon has re-entered the market by launching a Pinduoduo pop-up store, specialized in imported products. This is an obvious a win-win for both platforms, in which Pinduoduo is able to improve its platform image by expanding its cross-border business and Amazon can retain a presence in the world’s largest consumer market. According to market research company Nielsen, 49% of Chinese consumers have purchased premium products from online retailers, which is significantly higher than the global average (24%). International brands can leverage their country of origin and product sophistication to reach these demanding consumer segments, but also need to be aware that these consumers expect continuous innovation and are not easily impressed.

Have a great weekend!