Brands Must Prepare for Increasingly Sophisticated Chinese Luxury Consumers
Chinese consumers evolve fast. Since 2015, The primary driver of luxury spending has changed, from new luxury consumers making their first purchase, to sophisticated luxury consumers who have purchased many luxury products. With this familiarity with luxury purchases comes a desire for more authentic purchases that are not about showing off “bling bling”, but about the intrinsic benefits of feeling good about owning products of high quality. Greater sophistication leads to greater awareness and emphasis on ethics and sustainability. In many ways, the Chinese consumer consciousness is evolving right before our eyes.
7 weeks ago
The Most Important Online Channel for Educating China’s Netizens May Surprise You
For China’s netizens seeking luxury brands, online accessed via mobile is the channel that provides both the first point of contact as well as a continued connection. The most important digital channel isn’t social media, but the brand’s own website. This is in part because there are so many fake brands and products in China that netizens are skeptical of most things they see on public channels.
7 weeks ago
6 Chinese Social Media Apps Marketers Should Use in 2019
We’ve already reached that time of year when we start making predictions and setting strategies for the Chinese social media apps marketers should use in 2019.

Around this time last year, we published a list of five apps marketers should use in 2018 and it was fairly accurate with 3 out of 5 apps having a stellar year. So, we thought we’d take another stab at predicting which Chinese social media apps will be popular in 2019.

Readers who took our early adopter advice last year and jumped into Douyin and Xiaohongshu saved significant amounts on their influencer marketing budgets. So, without further ado.
7 weeks ago
Who is winning more Chinese Consumers in 2018?
Despite China's aging population, winning the love of millennial consumers (meaning post 80s and post 90s generations in China) is critical for brands to thrive. With more disposable income and need to express their individuality, young consumers offer great opportunities to unlock future growth. For the companies that grow penetration ahead of the market average, most of them saw noticeable advances in young families.
7 weeks ago
Small and tech savvy firms in China are shaking up the personal care sector
With names like Pechoin, Marie Dalgar, Three Squirrels and One Leaf, the companies are little known outside China, highlighting how they have emerged amid the transformation of the Chinese retail sector by focusing on local needs and tastes.

Such businesses are taking advantage of lower barriers to entry offered by the rise of the digital economy, Bain said in the report on Chinese shopping trends, co-written with consultancy Kantar Worldpanel. Other factors leading to that growth are major changes to the retail sector, an increase in consumers' desire for lifestyle, health and wellness products, and a willingness to pay a premium for them.
7 weeks ago
Not just Dolce & Gabbana: five other brands that riled Chinese with fashion and beauty faux pas
Dolce & Gabbana is the latest international brand to discover that upsetting people in China can have consequences for its bottom line. Fashion brands Balenciaga, Dior, and Philipp Plein have all felt the anger of Chinese internet users.
One of them had to shut its Weibo account, such was the backlash. We look at five other international brands that caused offense in China.
7 weeks ago
Stirring Dragon: The Rise Of Chinese Luxury Brands
What remains somewhat under the radar is China’s growing clout as a luxury brand's incubator, not merely a country of luxury consumers. With Chinese buyers embracing homegrown brands, the big names of Western luxury might no longer carry the same weight only a few years from now. Yes, China’s wealthy still loves themselves some Prada and Gucci, but they are starting to turn to local designers or foreign-based ones of Chinese descent whose work mirrors their roots and exudes a sense of national and cultural pride.
7 weeks ago
In KFC’s China Ads, Nuggets Are Served With Patriotism
China began an audacious experiment four decades ago to inject free-market thinking into its rigid, Communist-controlled political system, beginning a process that would lift hundreds of millions of people out of poverty and create the world’s second-largest economy.

And what better way to celebrate this accomplishment than with a bucket of fried chicken?

Last week, KFC introduced an advertising campaign in mainland China celebrating 40 years of “reform and opening up,” the catchphrase that defined the era. A two-minute TV spot that aired on state television showed two Chinese celebrities traveling back in time by railway, seeing streets filled with bicycles and bamboo scaffolding.
7 weeks ago
Debunk fake news and get paid by China's top news platform
ByteDance's Jinri Toutiao launched a initiative called 100 (or Rumor Zero Zero) that will offer cash rewards between US$40 and US$440 to the 100 best articles that can help quash rumors online -- a problem that's plagued the site since the beginning.

It comes amid pressure put on platform operators by the Chinese government’s sweeping crackdown on online content. With the world’s biggest internet population and largest number of mobile subscribers, China has seen the central government tighten its grip on all online content, from news and celebrity gossip to off-color jokes.
7 weeks ago
Remember China's bike sharing boom? Those bikes are now scrap metal
Staff of bike sharing platform Mobike had a little surprise this week. They wondered why a bunch of their bikes were clustered in an abandoned factory in the city of Foshan -- so they went to visit, only to find the distinctive orange bicycles turned into a grotesque pile of disjointed parts.

The bikes were being turned into scrap metal.

The factories housed hundreds of bikes from Mobike, Ofo and many other companies -- in many cases, still usable. One Shenzhen-based shared bike company found that nearly 1,000 of its bicycles were “abnormally moved” into recycling factories. As in, they were stolen.
7 weeks ago
What China’s Internet has become
As Chinese society becomes more connected, the dividing line between the digital and real economies will become increasingly blurred and will eventually disappear. There will be no purely Internet-only companies because the Internet will have spread to cover all social infrastructure; nor will there be purely traditional industries because they will have grafted onto the Internet. When no one refers to the Internet on its own anymore, the goal of “Internet Plus” will have been achieved. Full integration is the real theme of technological progress.
7 weeks ago
Chinese online shopping sites ditch Dolce & Gabbana in ad backlash
Chinese e-commerce sites have removed Dolce & Gabbana products amid a spiraling backlash against an advertising campaign that was decried as racist by celebrities and on social media.

The ads - released earlier this week to drum up interest in a Shanghai fashion show the Italian brand later canceled - featured a Chinese woman struggling to eat spaghetti and pizza with chopsticks, sparking criticism from consumers.

The blunder was compounded when screenshots were circulated online of a private Instagram conversation, in which the brand’s designer Stefano Gabbana makes a reference to “China Ignorant Dirty Smelling Mafia” and uses the smiling poo emoji to describe the country.
7 weeks ago
Walmart in China is now testing same-day grocery delivery from Dada via WeChat
Walmart has just begun testing same-day grocery delivery, called Walmart To Go, in one of its stores in China, months after the American retail titan expanded grocery delivery in its homeland.

The service is accessed through a mini-program within WeChat — the Tencent-owned messaging platform Walmart partnered with earlier this year in order to better reach its Chinese customers. The retailer hasn’t made a formal announcement about the same-day grocery delivery because the service is being tested while Walmart collects customer feedback. However, there is signage in the store that informs customers about the option.
7 weeks ago
Chinese consumers aren't spending as much. Many are worried about the future
While analysts say Chinese consumers are generally financially healthy, many are holding off on spending due to uncertainty about the future.
"There's an anxiety the economy going forward may not do as well," Daniel Zipser, senior partner at McKinsey, said in a phone interview Tuesday. "The person still has the money to buy a new car but will wait."
Consumers are also taking advantage of rapid developments in Chinese financial technology, or fintech, that allow for spending on credit or purchasing on installment.
7 weeks ago
A WeChat-powered hotel in China lets you check in, enter your room, and get breakfast through your phone
China’s biggest app, WeChat, partnered with InterContinental to open a smart hotel in Shanghai that lets users book rooms, remotely check in, and use their phones as key cards — all without requiring human assistance. Once they’ve completed their reservation, travelers verify their identity at the hotel through facial recognition and collect their digital key card.
7 weeks ago
WeChat Mini Program - Solving the problems of Chinese Travellers
As of 2015, Chinese outbound travelers took 4 billion domestic tourism journeys and 117 million outbound trips; outbound trips are expected to reach 160 million by 2020. In 2017, Chinese outbound tourists took approximately 131 million trips according to a report by Mckinsey.

Chinese travelers are now venturing further thanks to the relaxation of international travel visas, a heightened desire to experience destinations outside their comfort zones and rising discretionary incomes and leisure time.
7 weeks ago
Tencent might develop a VR version of WeChat
Strap on a VR headset and hang out with your friends’ virtual avatars in a virtual space -- that’s the idea of a VR social network. Now Tencent could be making its own version of that.

“It’s time to seriously consider developing a VR version of WeChat”, Tencent CEO Pony Ma said today at the Wuzhen World Internet Conference.

Why now? Ma cited greater internet speed thanks to 5G, and more VR headsets that’ll possibly be released next year. Download speeds at China Telecom’s 5G test site at the conference reached 17GB per second, Ma said, quoting China Telecom’s chairman.
7 weeks ago
In an Industry First, Dior Beauty Debuts Livestreaming Sales on WeChat
The French fashion powerhouse Christian Dior just became the first luxury brand in China to leverage livestreaming to sell on the country’s biggest social messaging app WeChat.

The hour-long livestreaming session took place in Chengdu on November 16, a fast-rising city for China’s luxury and fashion consumption, which has recently attracted a great number of big-name brands to open flagship stores there. Dior Beauty’s creative director Peter Philips hosted and offered makeup tips and tutorials with their products such as foundations ($58) and eye palettes ($66). More than 300 Chinese media outlets and influencers attended.
7 weeks ago
Tencent’s WeChat testing money market fund and score system in bid to catch up with Alipay
WeChat Pay has launched a beta version of a new money-market fund as its parent Tencent Holdings seeks to expand its payment services to help diversify business in the face of uncertainties in its gaming segment.

Tencent’s Lingqiantong, similar to Alibaba’s Yu'e Bao, was released in beta version last Friday, inviting users to test the platform’s functions. The new features – which allow users to earn interest from their balance as well as transfer payments to pay bills, send virtual red packets and pay off credit card debts – were rolled out on a test basis to a small pool of users in September last year.
7 weeks ago
How Michael Kors is driving Chinese tourists to US stores
In keeping with the trend of brands strategizing to meet consumers where they are, Michael Kors is zeroing in on Chinese customers on WeChat, even in the U.S.

Michael Kors has gone all in on the platform, and among Chinese tourists in the U.S., it has worked to drive sales. Since 2017, Michael Kors has invested in multiple, multi-step WeChat campaigns to drive Chinese tourists to Michael Kors stores in the U.S during peak travel times. Those include Golden Week, the first seven days in October, and the Lunar New Year in February. During Golden Week 2017, 7 million Chinese outbound tourists spent $13 billion U.S. dollars. The U.S. was the fifth-most-visited destination. Outbound Chinese tourists totaled around 6.5 million during the Lunar New Year 2018.
7 weeks ago
The West was sure the Chinese approach would not work. It just had to wait. It’s still waiting.
In the uncertain years after Mao’s death, long before China became an industrial juggernaut, before the Communist Party went on a winning streak that would reshape the world, a group of economics students gathered at a mountain retreat outside Shanghai. There, in the bamboo forests of Moganshan, the young scholars grappled with a pressing question: How could China catch up with the West?
7 weeks ago
Chinese internet giant Tencent tightens control of WeChat content amid industry-wide clampdown
“To create a green and orderly content ecosystem”, WeChat reduced the maximum number of accounts for companies to two from five previously, and to one account for individuals from two, according to an announcement from Tencent on Friday. Companies can still submit requests to register more accounts than the new limits to both the social media platform and the government’s content watchdog.
7 weeks ago
China's JD.com feels pressure as sales of big ticket items slow
China’s JD.com Inc reported third-quarter revenue on Monday that fell short of analysts’ estimates on sluggish sales in its core e-commerce business. Revenue was 104.8 billion yuan ($15.09 billion) for the quarter ended Sept. 30, compared with an average estimate of 106.2 billion yuan from 22 analysts, according to IBES data from Refinitiv.
7 weeks ago
Kantar China Social Media Impact Report 2018
Fifth annual study finds diversification in China's social media landscape leads to higher satisfaction
Chinese consumers feel social media is having a more positive impact on their lives as the landscape of social media gets more diversified;

WeChat, whose penetration rate remains nearly 100%, is the only social media app that people are less positive with compared to last year;

Chinese consumers increasingly find social media helpful in making better shopping decisions;

Entertainment Key Opinion Leaders (KOLs) are the only KOL category to bridge the Weibo/WeChat divide.
9 weeks ago
Alibaba's 'Singles Day' Sales Record A Symbol Of An Unstoppable China
It wasn’t the $30 billion some close China-watchers like the people over at KraneShares had predicted. It was more. Alibaba’s Singles Day, the annual shopping spree/telethon-like event led by China billionaire and BABA founder Jack Ma racked up another record-breaker on Sunday with $30.8 billion in sales. That’s one day. That’s more than Black Friday and Cyber Monday combined, times two.
9 weeks ago
How P&G is preparing to digitally transform Asia’s toughest markets
“Digital to us starts with identify the problem areas, have everyone in the business understand and agree on those, highlight key outcomes, and then bring in the right technology,” said Singh.

The CIO believes that motivating everyone to align their goals and agree upon the outcomes helps make the biggest impact in the market with technology — and going by the company’s decision to make the second investment in the E-Center, it seems as though Singh is on to something.
9 weeks ago
China's Co-Working King UCommune Leverages Smart Tech To Compete With WeWork
The day after Chinese co-working space operator UCommune raised $200 million in finance, I had the opportunity to sit down with founder Dr. Daqing Mao at a Silicon Dragon event in Hong Kong. There, I heard about how his emerging Beijing-based business is relying on smart technologies and its Chinese origins to compete against its main rival WeWork in the crowded co-working market in China.
9 weeks ago
Luxury Brands See Opportunity in ‘Made in Asia’
At The New York Times International Luxury Conference in Hong Kong last week, several leading industry voices indicated that the recent acquisition of many high-profile brands by Asian investors, coupled with the large number of young Asian creatives now in fashion schools or working their way up in major fashion labels, could eventually prompt a revaluation of the accepted industry order.
9 weeks ago
Social Commerce Upstart Pinduoduo Puts China Tech Giants On Guard
The Chinese tech upstart that has traditional companies in the e-commerce market most worried is Pinduoduo. With its new model of marrying social group connections with e-commerce, its reach into more remote, poorer communities, its quick uptake with users and its IPO within three years of its start, Pinduoduo has caught the older-generation businesses in e-commerce such as Alibaba and JD.com by surprise. They like to pooh-pooh its impact and dismiss it as a threat.
9 weeks ago
China state media Xinhua unveils AI news anchor
China's state news agency has debuted a virtual anchor designed to be able to deliver the news 24 hours a day.
Xinhua unveiled its "artificial intelligence news anchor" Wednesday at an internet conference in the eastern city of Wuzhen.
"Hello, you are watching English news program. I am AI news anchor in Beijing," the computer-generated host announced in a robotic voice at that start of its English-language broadcast.
9 weeks ago
China’s obsession with short videos has its internet giants worried
Video clips like TikTok’s are now consuming nearly nine percent of Chinese people’s time online, a 5.2 percent jump from 2017, according to app analytics firm QuestMobile.

Apps such as TikTok — which is operated by ByteDance, the world’s highest valued startup at $75 billion — have become popular among previously camera-shy users. Those who lack editing experience can now easily add beautifying filters and music to spice up their work.
9 weeks ago
Know Your Chinese Social Media
There are some growing names like Secoo, a luxury app that partnered with JD.com in August; Vipshop, which specializes in discounted goods and is the official “flash sales” platform of WeChat; Pinduoduo, a newcomer whose “group buy” model is popular with older shoppers seeking big discounts, and Mogujie, another shopping app popular with young women that has become WeChat’s official women’s style platform.
9 weeks ago
Hyatt Bets Big On China For The Future Of Travel
Hyatt opened its first hotel in China in 1969 and today has grown to 58 hotels, seven brands and more than 19,000 rooms in Greater China. Over the next four years, Hyatt plans to double its presence in China with 60 hotels and 22,000 more rooms in the pipeline, representing nearly one-third of Hyatt's global development pipeline.
9 weeks ago
China Deletes Nearly 10,000 Social Media Accounts in Crackdown
China’s Internet watchdog has scrubbed the country’s already highly censored web of nearly 10,000 social media accounts in the past three weeks. It is the ruling Communist Party’s latest move to clamp down on freedom of expression.

The cleanup began Oct. 20, the Cyberspace Administration of China said in a statement posted late Monday to its official website. The removals follows a similar purge in June that took down scores of entertainment news media accounts, among others.

More than 9,800 accounts were removed from Chinese social media platforms such WeChat and Weibo, the country’s Twitter equivalent, as well as from its Google-like search engine Baidu. The sweep also included leading private-sector news aggregators Toutiao and Sohu.
9 weeks ago
China’s Orwellian Social Credit Score Isn’t Real
China’s party-state is collecting a vast amount of information on its citizens, and its social credit system and other developments internally and overseas raise many serious concerns. But contrary to the mainstream media narrative on this, Chinese authorities are not assigning a single score that will determine every aspect of every citizen’s life—at least not yet.
9 weeks ago
A popular TV show has revealed how WeChat crushed a rival messaging app
Startup Era is a Chinese TV drama about, you guessed it, working at startups. It follows the fictional tech entrepreneur Guo Xinnian, who’s building a voice messaging app. It has received bad reviews for a “loose” screenplay and horrible acting, but it’s sparking a lot of discussion in China because it’s based on a real story – of how another entrepreneur named Guo’s voice messaging app was crushed by WeChat.
9 weeks ago
Tencent's WeChat steps up censorship to clear undesirable content
WeChat, the popular messaging app operated by Chinese technology giant Tencent, has pledged to concentrate on cleaning up undesirable content from self-media on its platform to maintain a "healthy" reading environment as required by the government.
9 weeks ago
Forget cars: China's richest are loving the new Porsche washing machine
With its sleek silver body and advanced anti-vibration suspension, everything about this Porsche product screams luxury built for speed.

Yet the 2018 Alpha is not a coupé. It’s a washing machine.

The German sports carmaker designed the US$2,900 appliance – available only in China – for the Japanese electronics corporation, Panasonic.
9 weeks ago
Ping An Good Doctor to roll out hundreds of thousands of AI-powered mini clinics in China
Ping An Good Doctor, a leading online health care service provider in China, plans to build hundreds of thousands of unstaffed clinics across the country over the next three years. Each AI-powered clinic, which is said to be about the size of a telephone booth, is capable of providing consultation based on health-related data collected through text and voice interactions. The information gathered from the AI consultation will be reviewed by a human doctor who then gives diagnosis and prescription online.
9 weeks ago
Tencent rolls out a clone of ByteDance’s joke app
Chinese tech giant Tencent has launched “哈皮” or Hapi (which means happy in English), a clone of ByteDance’s popular joke app Pipixia, in an attempt to win attention from the country’s grassroots users. The app allows users to upload and share a collection of short videos, photos, jokes, and memes.
9 weeks ago
WeChat claims 1.08 billion users in latest "one minute" data report
The giant app claims over 1.08 billion monthly active users as of the third quarter of this year, up 10.5% year-over-year. Over 800 million users use WeChat Pay when they are traveling, shopping or dining out. North of 20 million WeChat accounts publish stories and news on various topics. 1.5 million developers developed over 1 million mini-programs. In one minute during the morning rush hours, mobile traffic consumed via WeChat amounted to 46 TB.
9 weeks ago
Alibaba rival JD sees Singles’ Day revenue jump 27% thanks to offline push
Alibaba may have pioneered the concept of Singles’ Day, the world’s largest shopping day based on sales, but it very much is not the only e-commerce giant involved. JD.com, Alibaba’s biggest rival in China, just announced that it sold RMB 159.8 billion ($23 billion) in goods for its Singles’ Day campaign.
9 weeks ago
The woman leading JD.com’s rise from online appliance seller to luxury fashion e-commerce giant
It started out selling consumer electronics online, but today, JD.com has a luxury fashion e-commerce portfolio to rival the likes of Yoox-Net-a-Porter and matchesfashion.com.

The No. 2 Chinese e-commerce company is courting on the one hand a group of luxury consumers among the biggest in the world, and on the other hand the high-end fashion brands that still haven’t opened an online boutique with it, or with any rival for that matter.
9 weeks ago
Alibaba’s Singles Day sales dwarf Amazon’s biggest day
Alibaba’s 10th annual Singles Day sale, which took place yesterday on 11/11, racked up $30.8 billion in sales and set a new record for the platform, reports CNBC. The figure represents a 27 percent year-on-year rise over 2017’s total of $25.3 billion, and was helped in part by the e-commerce giant’s expansion into in-store retail, combined with China’s large and tech-savvy middle class.

The figure dwarfs the revenue taken during similar major shopping days of US retailers. Amazon’s Prime Day sale in July, the retailer’s biggest day of the year, is estimated to have generated around $4 billion in sales (although Amazon doesn’t report exact numbers), selling 100 million items across the 17 countries.
9 weeks ago
Why Alibaba Is Down 10% in 2018
While investors have been concerned with trade uncertainty between the U.S. and China and with Alibaba's declining profits, the e-commerce giant's upward trajectory doesn't look like it's in distress. The company is successfully growing sales, which could mean a bigger bottom-line payoff later on.
9 weeks ago
Why Alibaba's Record $30.8 Billion in Singles Day Sales Was a Disappointment
Alibaba just wrapped up its tenth annual Singles Day sales event on Nov. 11, and the results present a mixed story for the Chinese e-commerce giant.

On the one hand, the company set another sales record, moving a gross merchandise value (GMV) of $30.8 billion during the 24-hour extravaganza -- considerably higher than the $25.3 billion in online sales it recorded last year on Singles Day. That total also dwarfs the estimated $4 billion in sales Amazon produced on its most recent Prime Day in July. However, Alibaba's year-over-year Singles Day sales growth failed to live up to prior results.
9 weeks ago
Alibaba and Amazon move over, we visited JD’s connected grocery store in China
Besides the much-coveted customer insights, Alibaba and JD are going offline for cheaper user acquisition. “The golden age of cheap internet traffic is gone. Now it’s the opposite. Customer acquisition is much cheaper offline,” suggested Zhao.

Both Alibaba and JD have continued their old playbooks at physical stores, with the former running a marketplace model that takes a cut from merchants, and the latter staying consistent with direct sales. That holds true to how the rivals handle deliveries. While Alibaba relies on a network of third-party logistics services, JD has its own in-house fleet, which could be costly to operate.
9 weeks ago
Pony Ma says Tencent is 'seriously considering' VR enabled WeChat
Tencent CEO Pony Ma said his company would “seriously consider” the possibility of a virtual reality (VR) backed WeChat, especially given the speedy communication 5G stands to bring to the internet.

“I hear that China Telecom’s pilot 5G service here supports downloading as fast as 1.7G per second, faster than optical fiber,” Ma said in his keynote speech at the 2018 Wuzhen International Internet Conference, which opened today. “Next year’s conference may exhibit more portable VR devices,” Ma added.
9 weeks ago
Alibaba, Amazon expand involvement in customers' lives
Alibaba and Amazon want to dominate as many aspects of customers' lives as possible.
Alibaba's future could move beyond e-commerce to encapsulate everything from e-sports to entertainment to food delivery.
Entering new sectors allows Alibaba to have a massive amount of insight and data into shoppers' lives — and fend off competitors such as Amazon.
9 weeks ago
Tencent profit surges on ads, Meituan gain as games struggle
Tencent’s earnings bucked a recent trend of disappointing results from China’s technology companies as a slowdown in the economy dampens the outlook. Alibaba Group Holding Ltd. cut its outlook for annual revenue, while search leader Baidu also predicted sales below estimates. Tencent has been hammered by concerns about games that have wiped out more than $240 billion of market value since a January peak.
9 weeks ago
Tencent will check the ages of all its gamers
Tencent will check the identities of all its gamers in China by 2019 with the aim of limiting the hours young people spend playing.

The tech conglomerate announced the sweeping new rules for its hundreds of millions of customers on Monday. It will check gamers' IDs against police databases and block any accounts it can't verify.
Tencent is responding to the Chinese government's increased scrutiny of video games. China claims it wants to reduce the incidence of nearsightedness in children and adolescents.
9 weeks ago
China’s internet titan has had a bruising 2018
Who is killing Tencent?” was the headline of an article on a Chinese business news site this autumn. Those sharing the link on WeChat, a social-media and payments service that is the crown jewel of the Chinese technology giant, see something else: “This title contains exaggerated and misleading information”. The swap is ostensibly the result of a move by Tencent in April to sanitise content, after a crackdown on popular online platforms by government regulators, but is also self-serving. Scoffing WeChat users circulated the article just to highlight the switch.
9 weeks ago
LVMH Digital Czar on China, Sales and the New Definitions of Luxury
“(If you) approach digital as a technology, then you will for sure be doing the wrong thing — the IT guy just putting the thing in the hands of the sales associate with no customer experience-driven [information] behind it,” said Rogers. But “if you have the customer experience down, you are going to end up in the right place. The fact of the matter is there is some great stuff your sales associate can do with [a mobile e-commerce sales] device — but just browsing on Instagram is not one of those things.”
9 weeks ago
Why the future of Chinese e-commerce is in its rural areas
The fast-paced growth of the e-commerce sector in China can be seen through rapidly expanding companies such as Pinduoduo, which went through a $1.5 billion U.S. IPO in mid-July. However, why has e-commerce continued to grow despite an overall economic slowdown in conjunction with urban market saturation? The answer to this question lies in China’s rural areas, with its untouched older demographic, potential for infrastructure development and government-backed initiatives.
9 weeks ago
Tiffany in "Top Ten Most Loved WeChat Ads" for Three Consecutive Quarters
WeChat Moments is one of the most effective ways of reaching out to WeChat’s massive social media user base. WeChat recently released a report featuring the top 10 most loved WeChat moments ads. For three consecutive quarters, Tiffany has achieved top 10 “Most Loved Moments Ads” status. For three consecutive quarters, Tiffany has achieved top 10 “Most Loved Moments Ads” status. As a client of Resonance, we are very proud to be a part of Tiffany’s success.
11 weeks ago
Resonance's Michael Norris Interviewed about China Fashion Industry's Retail Strategy
Resonance’s Research Manager, Michael Norris, was sought out by Ordre for comment on latest developments in Chinese fashion incubation and retail strategies. Ordre is a European online luxury wholesale platform with operations in London, Milan, Paris, New York, and Hong Kong. Michael’s interview was published by Ordre on 26 October 2018. The interview’s focus was on Zuczug, one of China’s leading domestic commercial brands and retail disruptors. Zuczug is at the leading edge of user acquisition and incubation to capture new segments and drive growth.
11 weeks ago
Resonance Hosts Strategic Leadership Panel at Horasis Global Visions Community
Horasis the Global Visions Community hosted 500 delegates in the beautiful Ukrainian city of Kiev this past week for its 14th annual Davos style Horasis China meeting; an annual meeting of the minds with delegates from the business, finance and government communities converging on Kiev to talk about all things China.

Resonance’s Paul McNeill was once again in attendance to host an illustrious panel on the subject of “Unleashing Chinese Firms’ Global Investments”. Over the 90-minute roundtable discussion, a lively debate was held over the merits of the Belt & Road Initiative, the shift away from US investment, the curbing of “Irrational Outflow” of capital, funding of overseas acquisitions and the focus on key knowledge industries such as biotech, automotive, healthcare, and technology.
11 weeks ago
No WeChat, No Access - How China's Digital Revolution is Leaving behind Its Elderly Population
According to her, there is a widespread alienation of China’s elderly from the digital economy, evident from countless reports of elderly struggling to use digitalized services that come second nature to younger generations: cab-hailing, queuing in a bank or hospital, bike-sharing, the list goes on and on. “I’ve realized that the ‘convenient life; before my eyes is, in fact, a great disaster impeding our parents’ everyday necessities, one they can neither dodge nor escape…”, Xiao concluded.
11 weeks ago
Robin Li emphasizes coming "AI boom" at Baidu World Conference
“It’s interesting that yesterday, members of the Politburo studied artificial intelligence together. President Xi also addressed an important speech,” Robin Li said at the keynote speech with a smile. “I feel the development of China’s AI will soon see a boom.”

One day prior to the conference, President Xi, during a politburo meeting where top government power-holders gather to discuss trends and expectations, said Beijing would “foster the healthy development of China’s new artificial intelligence generation”
11 weeks ago
Tencent unrolls multibillion dollar bet on the cloud
Chinese internet giant Tencent will invest billions of dollars to spur the company’s push into cloud computing aimed at business clients, a senior executive of the company said Friday.

The move, which is part of an organizational overhaul announced in late September, comes as the company seeks a new growth narrative amid ongoing challenges to its core consumer-facing businesses including gaming and social apps. Expansion out of their traditional strengths and into more business and industry-focused customers could test the company’s fortitude.
11 weeks ago
19-year-old QQ is doing its best to stay young
During sub-forum New Content and New Social at Tencent’s global partnership conference in Nanjing this morning, the company introduced strategies to form a young community for 19-year-old QQ, one of China’s earliest social software and the precedent of WeChat. “The integration of content and platform, the merging of recreational and social needs, and the intertwining of technology and culture – these are the 3 assets that keep QQ young,” Li Dan, market manager at Tencent’s corporate platform and content business unit, said.
11 weeks ago
Baidu Upgrades Baidu App with Full Support for Mini Programs
Chinese online search engine operator Baidu (Nasdaq: BIDU) announced the launch of version 11.0 of Baidu App, its mobile search and news feed app, today at its annual Baidu World event in Beijing. The upgrade adds full support for smart in-app mini programs, following Baidu's introduction of smart mini programs this past July.

At last year's Baidu World, the company launched version 10.0 of Baidu app, combining search with news feeds.

The company also announced a support program for third-party developers of Baidu mini programs, including the provision of funds and the opening up of related data, and reiterated the vow it made at the July debut to make all mini program data open source before the end of this year.
11 weeks ago
China Slowdown? Don’t Count Out ‘The Bling Dynasty’ Yet, Says HSBC
Rambourg, who famously coined the name for this age of Chinese consumerism “The Bling Dynasty” in 2014, wrote in the latest HSBC research note that the global luxury market would still see robust near-term growth, as evidenced by the Q3 earnings results reported by big-name players like LVMH, Kering and Moncler. However, a luxury consumption slowdown–what he described as a “soft landing”–is expected in the mid- to long term, as the sector has experienced a strong recovery since mid-2015.
11 weeks ago
Innovation Starts in China Before Expanding West: Zegna CEO
Zegna’s history in the China market started as early as 1991, as it was the first luxury apparel brand to enter the middle kingdom. Now, China has become the leading market by revenue for Zegna and is seen as a testing ground for its tech strategies. “We test new things in China first. If it works, we bring it to the world,” Zegna said.

This has to do with the consumer culture in China – consumers are mobile-oriented, and as the typical luxury shoppers are younger than other markets, they are curious about innovation and are early adopters of changes within the brand. Like many other luxury brands, Zegna has undergone a series of digital revolutions in China to make as many as touch points as possible to connect with the consumers–from establishing a WeChat presence to forming strategic partnerships with Alibaba and JD.com.
11 weeks ago
Can China’s 'Little Fresh Meat' Deliver Big Brand Results?
According to Andre Hoffmann, president of the APAC division of beauty brand L’Occitane, the company experienced double-digit growth in China in 2017, with an 11% increase in net sales and an impressive 49% increase in sales on China’s popular e-commerce platform, Tmall. This was in large part, he says, “due to a highly effective celebrity campaign with Lu Han.”

The Chinese singer and actor, dubbed the ‘Chinese Justin Bieber’, is one of the foremost poster boys of China’s ‘little fresh meat’ (‘小鲜肉’) phenomenon—a term coined several years ago to describe a young generation of Chinese male idols who are known for embodying a softer masculinity, originated by their counterparts in Japan and South Korea and made popular by K- Pop, J-Pop, anime and manga.
11 weeks ago
Can Luxury Brands Capture the Billion-dollar Opportunities in Travel Retail?
The global travel retail market, encompassing airports, ‘downtown’ stores and cruise ships, is expected to reach $85 billion by 2020, up from approximately $70 billion in 2017, according to Generation Research. As the industry grows, tremendous opportunities are springing up for brands and retailers. But the whole sector–dominated, say some insiders, by a conventional mindset toward operations—urgently needs to play catch-up in the age of the e-commerce behemoths.
11 weeks ago
The Chinese Fashion Accessories Market Is Facing Unprecedented Growth
With their rising purchasing power, Chinese consumers are not only willing to buy more fashion accessories, but they can now afford more expensive ones. On the other hand, the Chinese government has issued many environment-protection requirements, along with the rising labor costs in China, Chinese fashion accessory processing enterprises have been pushed to be upgraded. While the low-end fashion accessories manufacturing is shifting more and more to India and other South Asia countries, many Chinese enterprises are focusing more on the high-end market domain.
11 weeks ago
China E-Commerce Grew 43.6% in Q3; 10.6% of FMCG
Sales of China's fast-moving consumer goods grew by 6.3% year-on-year in Q3 2018. E-commerce saw sales growing by 43.6% in Q3 2018, accounting for 10.6% of the total FMCG market. Taobao and Tmall together was well ahead of JD and YHD. 19.4% of shoppers purchased FMCG from Alibaba platforms in the past 12 weeks. Sun Art Group maintained its leading position in modern trade but did not see any share growth.
11 weeks ago
China Golden Week Travel Report 2018
Chinese went on 726 million domestic person-trips and 7 million outbound trips in the Golden Week holiday of 2018 (1-7 Oct). They altogether spent 650 billion yuan (US$93.65 bn) on traveling. Both the average daily sales of retail, food & beverage, and the domestic person-trips dropped.

Travelers spent less on outbound travels. Only 19% of outbound travelers were younger than 30 years old. 74.35% of outbound travelers from first-tier cities.
11 weeks ago
Video Platform iQiyi Performance Highlights Q3 2018
Total revenues of iQiyi grew to RMB6.9 billion (US$1.0 billion) in Q3 2018, representing a 48% increase from the same period in 2017. Membership services revenue was RMB2.9 billion (US$415.3 million), representing a 78% increase from Q3 2017. Online advertising services revenue was RMB2.4 billion (US$348.9 million), down 4% YoY.
11 weeks ago
A look at China’s massive music streaming industry and how it differs from Spotify
The news of Tencent Music’s impending initial public offering has given China’s music streaming industry significant media attention. The IPO could see Tencent Music valued at more than US$25 billion, in line with Spotify’s US$28.7 billion IPO.

News of the valuation may surprise those who haven’t been paying attention to China’s robust and lucrative streaming market. Though the country still has a reputation for intellectual property theft, copyright protection has improved since a 2015 crackdown.
11 weeks ago
Chinese brands on a charm offensive overseas
When it comes to Chinese brands going global, few can claim to have a wider footprint than Huawei. The Chinese behemoth overtook Ericsson as the world’s largest telco equipment maker in 2012 despite being locked out of the US market. The Shenzhen-based company has also made good headway in Europe, for both its telco and smartphone businesses.
11 weeks ago
China Opp Demands Digital Evolution for Luxury Brands
Why the China Market Matters: Chinese consumers are the biggest spending force in the global luxury market, accounting for 32% of global sales in 2017 versus 22% for U.S. consumers, who are in the second spot, according to consultancy Bain. The share of Chinese spending is vastly outgrowing that of shoppers from other countries: Global spending by Chinese nationals grew at 11%, while spending by the rest of the world (ex-Chinese spending) grew at 3% in 2016, according to a Bain report. Moreover, China’s share of global luxury spending is expected to reach 44% of the total global market by 2025, said a McKinsey report.
11 weeks ago
How Alibaba is championing the application of blockchain technology in China and beyond
When it comes to blockchain technology—blockchain patents in particular—one company stands out from every other. Alibaba [BABA] is leading the pack in blockchain patent and they are proud of it. “We are the most patented company in the world of blockchain technology,” Jing Xiandong, CEO of Alibaba ’s financial arm Ant Financial said.
11 weeks ago
The Novelist Who Inspired Jack Ma to Start Alibaba
Not many novelists inspire the creation of new companies, and certainly not one that becomes as big as Chinese e-commerce giant Alibaba.

The passing this week of Louis Cha, better known by his pen name Jin Yong, brought a reminder of how important his books were for Jack Ma, Alibaba’s founder, in the company’s early days. Millions have read Mr. Cha’s tales of the martial arts underworld, making him likely the best known modern writer in the Chinese-speaking world.
11 weeks ago
Volvo, Baidu to mass produce self-driving electric cars in China
Volvo Cars will offer its expertise in advanced technologies in the auto industry, while Baidu provides its autonomous driving platform Apollo.
The long-term aim is for the two firms to sell the self-driving vehicles to Chinese customers.
China is home to a rapidly growing autonomous vehicles sector, with multiple tech firms in the country vying to own the space.
11 weeks ago
JD.com apologises for sexist marketing campaign as Singles’ Day shopping event nears
JD.com, China’s second largest e-commerce company, has apologised for a business unit’s sexist marketing campaign, which sparked an outcry among social media users more than a week before the country’s annual Singles’ Day, the world’s biggest shopping event. The newly established JD Beauty ran a campaign in which about 300,000 express boxes for the cosmetics products sold on the online retail platform were printed with the tagline: “Without lipstick, how are you different from a man?”
11 weeks ago
JD.com logs RMB 6 billion in sales within the first hour of Singles' Day campaign
According to figures provided by JD.com, its shopping platforms logged a record RMB 6 billion in sales within the first hour. Moreover, the sales of the international shopping site (全球购) doubled comparing to the previous year.

In the first hour of Flash Deals, smartphones, flat screen TVs, air conditioners, gaming laptops, and refrigerators were the top five categories in terms of sales. According to JD.com, over 20 million products offered flash sales—limited-time discounts—on the first day.

Comparing to the same time last year, ultrabooks sales tripled, alcohol and beverages sales grew more than 3 times, and smartphone sales more than doubled.
11 weeks ago
China reveals trade war strain as yuan slides and manufacturing stalls
The Chinese economy has revealed fresh signs of the pressure of a trade war with the US and a wider slowdown at home as manufacturing activity fell and the yuan was fixed at a new 10-year low to the dollar. China’s manufacturing sector barely expanded in October as both domestic and external demand ebbed, according to a closely watched metric released on Wednesday.

The official purchasing managers’ index (PMI) fell to 50.2 in October, the lowest since July 2016 and down from 50.8 in September. A figure below 50 represents a contraction. New export orders, an indicator of future activity, contracted for a fifth straight month and at the fastest pace in at least a year.
11 weeks ago
Why and when users like using WeChat mini programs
The popularity of WeChat mini programs exploded in 2017, shrugging off any doubts they were going to be a short-lived fad. Come 2018, brands and tech giants are scrambling to ramp up their mini program presence as a cost-effective way for users to easily access content, services and products to cater to hundreds of millions of active mini program users.

These web-based mini programs, limited to a couple MB in size and loaded dynamically inside the WeChat app are shaking up the way brands and companies are trying to reach their customers in China. But it seems some don’t understand why and when users like to use them, especially when compared to native mobile apps (iOS/Android).
11 weeks ago
West Wins in Luxury E-commerce Site Ranking, as China Plays Catch-up
In a surprising finding, Chinese consumers still see services provided by Western luxury e-commerce platforms as more satisfying and advanced than their Chinese counterparts, according to a new report by Hong Kong-based consulting firm OC&C Strategy Consultants. Then again, timing is everything: Overall, the older, better-established sites proved more popular with customers, and more (but not all) of those e-commerce pioneers are based in the U.S. and Britain. Will rival Chinese platforms be able to catch up?
11 weeks ago
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