{"id":21412,"date":"2019-11-15T09:20:17","date_gmt":"2019-11-15T09:20:17","guid":{"rendered":"https:\/\/staging.phdmedia.com_\/china\/?p=21412"},"modified":"2019-11-15T09:20:17","modified_gmt":"2019-11-15T09:20:17","slug":"friday-data-snack-15-nov-2019","status":"publish","type":"post","link":"https:\/\/www.phdmedia.com\/china\/friday-data-snack-15-nov-2019\/","title":{"rendered":"PHD China’s Friday Data Snack!"},"content":{"rendered":"
\"PHD

Start the weekend with a nibble!<\/p><\/div>\r\n

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\u00a0<\/h3>\r\n

Category<\/strong>\"\"<\/span><\/b><\/strong><\/b><\/h3>\r\n

According to Alibaba\u2019s B2C eCommerce platform Tmall, by the end of Single\u2019s Day on 11 November, Perfect Diary ranked as the makeup brand with the highest gross merchandise volume (GMV), topping the eyeshadow, lip gloss, eye liner and mascara categories. Meanwhile, the brand search volume on RED (Xiaohongshu) increased by 326%. Click for more…<\/a>
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INSIGHT & IMPLICATION:<\/strong> This is the second year in a row that Perfect Diary has ranked first in the make-up category. What\u2019s impressive is that it took only 13 minutes for the brand to reach the RMB 100 million gross merchandise volume (GMV) threshold this year. This young local brand\u2019s influencer strategy has contributed significantly to its success. Instead of collaborating solely with larger influencers, Perfect Diary leverages a mid- and small-scale KOLs to build trends in \u2018content seeding\u2019 communities, like RED (Xiaohongshu), Taobao and Douyin. Formulating a clear, KPI-led strategy that fits the brand positioning and its goals is key when it comes to collaborating with influencers. Just being present on social channels and collaborating with influencers is not enough anymore. With a large number of brands creating content in cooperation with KOLs, creativity, innovation and the integrity of influencers are the key ways to make a brand stand out in the onslaught of brand-sponsored influencer content.<\/p>\r\n

Consumer<\/strong>\"\"<\/h3>\r\n

According to Tencent\u2019s \u2018China\u2019s White Collar Consumer Report\u2019, 51% of consumers expect to downgrade consumption and 31% of them show less intention to consume. However, this is not a pattern across all categories. Click for more…<\/a><\/span><\/b><\/p>\r\n

INSIGHT & IMPLICATION: <\/strong>Even with the trend of consumption downgrading, this year\u2019s Single\u2019s Day still broke sales records, with RMB 549 million more sold than in 2018. Diving into the data of each category, it can be seen that \u00a0consumption upgrades and downgrades are both happening simultaneously but differ by category. According to DT Caijing, Chinese consumers were more willing to spend on skincare and cosmetics instead of apparel and bags during this year\u2019s Single\u2019s Day. For example, seven cosmetic brands reached RMB 100 million in GMV on the first day of pre-sales and 520,000 Estee Lauder eye creams were sold within only 10 days. This is why brands, especially the ones in downgrading categories, need to consider how to utilise creativity and innovate in a meaningful way that will help them re-establish a connection with their audience in China.<\/p>\r\n

Culture<\/strong><\/h3>\r\n

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During China\u2019s largest eCommerce festival Single\u2019s Day, 50 million consumers participated in \u2018Green logistics\u2019 and more than 80 categories supported the \u201cTrade in Service\u201d. More than 40,000 branches of Alibaba\u2019s logistics arm Cainiao Network implemented the recycling scheme, with other major logistics companies, such as YTO Express, Yunda Express and Best Express following suit. Click for more…<\/a><\/span><\/b><\/strong><\/p>\r\n

INSIGHT & IMPLICATION:<\/strong>While a pure environmental approach by brands will not necessarily win over Chinese consumers, the lack of any green initiatives by a brand stands out to increasingly environmentally-conscious shoppers. This is why green marketing in China is no longer optional. The lack of an environmental approach from a brand can lead to a communications and business crisis in which companies can be accused of not caring about the future of the society in which their consumers live. This is why every brand needs to ensure that their green marketing approach is not included in just the communications strategy, but across the whole business.<\/p>\r\n

Media<\/strong>\"\"<\/h3>\r\n

According to Alibaba\u2019s B2C eCommerce platform Tmall, gross merchandise volume (GMV) from eCommerce livestreaming during Single\u2019s Day exceededRMB 20 billion. Short video platform and Douyin\u2019s competitor Kuaishou also launched its own livestreaming festival called \u20181106 Selling Masters\u2019 during the 11.11 period, involving millions of sellers, 100 million consumers and more than 50 million orders placed. Click for more…<\/a><\/span><\/b><\/p>\r\n

INSIGHT & IMPLICATION:<\/strong>Livestreaming can shorten the purchase journey by integrating research, consideration and purchase into a one-stop experience. The seller\u2019s charisma, passionate product introduction and great deals often lead to impulse purchases by consumers watching the livestreaming sessions, which can also be utilised for brand awareness and consumer engagement. That said, brands should be aware that livestreaming cannot solve all business challenges. Most of the traffic goes to the top-selling livestreaming influencers with huge followings, leaving very little space for smaller KOLs. \u00a0Even the most popular influencers such as Austin Li and Viya seem to have hit a ceiling. According to Tmall, on the first day of the 11.11 pre-sale, their audience peaked at just over 30 million, but immediately fell back to the normal the following day. The most influential KOLs are not easy to replicate or cultivate. This is why brands need to understand the benefits and limitations of livestream selling and consider what role these collaborations can have in their overall marketing communications strategy.<\/p>\r\n

Have a great weekend!<\/strong><\/p>\r\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":84,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[503,498],"tags":[897,528,898],"class_list":["post-21412","post","type-post","status-publish","format-standard","hentry","category-industry-insights-global","category-our-views","tag-data-snack","tag-phd-china","tag-phd-insights"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/posts\/21412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/comments?post=21412"}],"version-history":[{"count":0,"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/posts\/21412\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/media?parent=21412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/categories?post=21412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.phdmedia.com\/china\/wp-json\/wp\/v2\/tags?post=21412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}