This article summarises the key themes from the report, highlighting how British brands can adapt to a more cautious yet still opportunity-rich environment.

China’s economic slowdown: What it means for marketers

After decades of near-uninterrupted expansion, China’s consumer economy has slowed significantly. A growing middle class once fuelled seemingly boundless growth; now, many consumers are becoming more selective, cautious, and value-conscious. According to Totem, 2024’s consumption growth was described as “glacial”, with e-commerce sales growing modestly (12-15%) and physical retail suffering widespread closures.

British brands that are used to betting on China’s lower-tier cities for rapid growth must now adapt. Strategies in 2025 are shifting towards performance-driven marketing, precision targeting by generation and income tier, and a renewed focus on return on investment. Expansion for its own sake is being replaced with prioritised spending and cautious optimism.

Digital marketing in China: Where to invest in 2025

Despite broader economic pressures, China remains a global frontrunner in digital commerce and marketing innovation. Social commerce in particular, spanning livestreaming, influencers (KOLs), and beyond, is proving resilient. In fact, over half of surveyed brands plan to increase their social media budgets in 2025, even as overall budgets shrink.

This presents an opening for UK companies with digital expertise. Brands that understand the local tech landscape and can tailor their approach to Chinese consumer behaviours across platforms like RED, Douyin, and WeChat will be best placed to succeed. Notably, the focus has shifted from generating hype to fostering confidence and trust, underscoring the importance of credible content and community engagement.

Sentiment and spend: A reality check

The brand sentiment going into 2025 is cautious. Totem’s survey found that only 17% of marketing leaders were optimistic about the year ahead, while nearly half expected to cut their marketing budgets. Most brands are narrowing their focus to proven channels and core customer segments. Spending is being redirected away from traditional media and toward performance-driven digital and social commerce tools.

For British brands, this shift calls for prudence and agility. Success in 2025 will mean doing more with less – delivering measurable returns and tightening the link between marketing activity and sales performance.

Gen Z in China: A key demographic for British brands

One of the most significant strategic pivots in 2025 is the move from city-tier segmentation to generational targeting. While Gen X and Y still drive purchasing power, it is Gen Z that increasingly shapes trends and brand perceptions.

Despite youth unemployment and rising disillusionment, China’s Gen Z remains curious, digitally fluent, and trend-driven, often supported by family safety nets. They seek novelty, relevance, and authenticity in their brand engagements. British brands can win here by aligning with Gen Z values such as sustainability, creativity, and personal expression.

The report recommends that brands without a clear demographic focus consider making Gen Z their “anchor audience” – not just for the short-term gains but to build long-term brand equity.

Emotional branding: Standing out in a price-sensitive market

As discounting becomes widespread, foreign brands, which are often at a cost disadvantage, must lean into emotional resonance to justify their price points. Totem identifies three emotional levers that particularly resonate with Chinese consumers: humour, nostalgia, and escapism.

Gen Z, in particular, is seeking moments of escape – from Covid-era constraints, economic pressures, and digital fatigue. Meanwhile, older consumers find comfort in nostalgia and familiar quality. British brands are well-placed to tap into these emotional triggers through rich storytelling, cultural references, and brand heritage.

In 2025, it’s not about being louder – it’s about being more meaningful. Emotional relevance will be a key differentiator.

China retail trends: From malls to pop-ups

A fascinating new trend is the rise of “swarms” – crowds that converge on specific retail activations or pop-ups driven by online buzz, especially via platforms like RED. These gatherings offer excitement, community, and value, an antidote to social isolation and screen fatigue.

For British brands, this creates a compelling opportunity to rethink their physical presence in China. Instead of long-term leases in traditional malls, think short-term, high-impact brand activations that create sharable, offline-to-online experiences – tea ceremonies, fashion events, or VR demos rooted in British culture could work especially well.

UK-China trade and market entry in 2025

The global context in 2025 is fraught with uncertainty. The return of Donald Trump to the US presidency has reignited trade tensions, with China likely to retaliate against American brands. Some experts foresee closer economic ties between China and non-US markets, including Europe and Canada.

For post-Brexit Britain, this presents both risk and opportunity. UK brands that position themselves as independent and constructive partners to China may find a window to strengthen bilateral trade relationships, particularly as Chinese authorities look for trustworthy foreign partners.

The long-term view: Strategic optimism

Despite the short-term headwinds, Totem’s report ends on a cautiously optimistic note. There are signs that China may emerge from the downturn ahead of other major markets, especially if government stimulus and private-sector confidence gain traction. The return of tech figure Jack Ma in late 2024 has also been read as a symbolic gesture of renewed support for innovation.

For British brands, the message is clear: don’t retreat from China, but refine your approach. Targeted, digitally savvy, emotionally intelligent strategies will serve brands well in this next chapter.

The post China Marketing Trends 2025: Strategy Insights for British Brands appeared first on Focus - China Britain Business Council.

The Chinese social media landscape can be a tough one to understand. It is both more diverse and more integrated than its Western counterparts. Platforms such as WeChat provide a multitude of services, effectively combining the functions of several widely used Western channels into one. At the same time, livestreaming on platforms such as Douyin has emerged as the fastest-growing e-commerce sales channel in China.

While laptop-savvy Western consumers were browsing websites in the 1990s and 2000s to chat, surf, and shop, China skipped the home PC and laptop era, leapfrogging straight to smartphones to access the internet. As a result, traditional websites never gained traction in China; instead, social media platforms surged. Designed with a mobile-first approach from the outset, this foundational difference has shaped marketing strategies in China, emphasising mobile driven, social media content.

With all Western social media platforms blocked in China, domestic competitors not only launched local alternatives but also rapidly outstripped their Western counterparts. Now, as anyone who has visited China in recent years knows, nearly every transaction, purchase, or booking is made via a smartphone app – most commonly through a handful of social media platforms.

The pace of change in this landscape is astounding. Trends rise and fall, new platforms emerge, and the popularity of certain channels varies greatly depending on the demographics and geography of the country. Today, 24.2% of China’s 1.06 billion social media users turn to these platforms to find products, 22.2% to discover content from their favourite brands, and 21.6% for work-related networking or research.

The Chinese social media landscape is vastly different from that of the West. Key opinion leaders (KOLs) play a pivotal role, selling products on behalf of brands and wielding far more influence – and revenue potential – than influencers on Instagram or TikTok. Meanwhile, social commerce – a concept still in its infancy in the West – has been the norm in China for over a decade.

There is much to learn about the complex Chinese social media landscape, but thankfully, the China-Britain Business Council has teamed up with software platform Sinorbis to produce a definitive guide to China’s social media landscape for 2024.

“We wanted to provide a clear roadmap for those unfamiliar with platforms like WeChat, Little Red Book, Douyin, and others that are uniquely influential in China,” explains Nicolas Chu, CEO and Founder of Sinorbis. “This guide is the culmination of in-depth research, industry insights, and firsthand experiences that span across the varied digital touchpoints in China,” he says.

Sinorbis is a unique player in the Chinese marketing ecosystem because of its software platform that enables companies to manage their digital presence in China and more widely across Asia without needing a physical presence in China. The company empowers international marketing teams to effectively engage their audiences in Asia, saving both time and money while adhering to local regulations.

Chu’s firsthand experience of creating, managing and analysing digital content in China while launching various products and businesses inspired the model. The lack of accessible software for Western cross-border businesses to penetrate the Chinese market highlighted this need.

Sinorbis enables brands to create China-ready websites and landing pages, offering easy-to-use templates and drag-and-drop tools for creating content for web and social media, ensuring it’s optimised for China’s unique digital ecosystem. The Sinorbis Digital Experience Platform allows businesses to publish, engage, and measure their digital activities within China.

The platform facilitates omnichannel messaging with automatic translation tools and social media management and analytics – all from a single back-end platform, creating a one-stop shop for an organisation’s marketing needs across Asia.

Sinorbis operates on a subscription model and has collaborated with companies ranging from major global enterprises to SMEs across various sectors, including consumer goods, education and travel. Any company prioritising China would benefit from this software.

The report, released at an event in November 2024, dives into the various channels available in China and includes case studies of successful campaigns.

Click here to download the full report and watch the event webinar

The post Decoding Chinese Social Media: A Guide to Navigating the Digital Landscape appeared first on Focus - China Britain Business Council.

Success in the Chinese market is rarely the result of a uni-directional strategy; it requires a more complex approach that takes in multiple platforms and strategies.

To help businesses build a presence and loyalty in the Chinese market, Dana Goldburd from Up2China has outlined what businesses need to know about the most common digital marketing methods. By highlighting the advantages and challenges of various marketing approaches, companies can navigate the complexities of China’s dynamic market landscape with greater clarity and informed decision-making.

Live streaming

The gold-paved streets of China’s live streaming landscape have attracted many brands, keen to get a slice of a market valued in the trillions of RMB. For millions of Chinese consumers, live streams are a major part of the e-commerce experience, watched as much for entertainment as they are for commerce.

Pros: No marketing method enables real-time engagement with an audience quite like live streaming. Via a well-known host or an in-house presenter, brands can answer audience questions and get feedback in real-time. This makes it great for brands that need to provide product education – for example, a nutritional supplement or a professional haircare product – enabling them to explain key benefits and functions.

Cons: A successful live stream is often dependent on the popularity and skill of the host, and the best hosts come at a high price. There is also a complicated regulatory landscape to navigate, as well as the threat of technical challenges or disruptions.

Key opinion leaders

China is a global leader in influencer marketing, with the market for key opinion leaders (KOLs) – the more common term for influencers in the Chinese context – reaching RMB 340 billion (£37.7 billion) in 2021.

Pros: An endorsement from the right KOL instantly adds credibility to your brand. Chinese consumers trust KOL recommendations and use them to decide what to buy, ranking the opinions of KOLs almost as highly as recommendations from family and friends when it comes to making purchasing decisions.

Cons: As with live streaming, working with major KOLs is very costly and may be out of reach for smaller brands. Moreover, some Chinese consumers are starting to have doubts about the authenticity of KOL recommendations. For companies, there is a risk that promotions with a KOL who promotes a lot of different brands comes off as inauthentic.

Key opinion consumers

In response to the cons of KOLs, many brands are instead choosing to work with key opinion consumers (KOCs) – basically micro-influencers with a much smaller but much more engaged audience base.

Pros: As the name suggests, consumers turn to KOCs for trusted opinions on products and brands and working with the right one can give you access to a highly engaged community of potential brand loyalists. Since they have fewer followers, campaigns with KOCs are also typically less expensive than KOLs.

Cons: There are many creators who could qualify as KOCs, so identifying the right one for your brand can be challenging. Since they have limited influence on a broader scale, KOC collaborations are better considered as one part of a broader marketing strategy.

Official social media channels

Wherever they are in the world, businesses need to have a strong social media presence. In China, consumers expect to be able to use social media – especially the biggest platforms like WeChat and Weibo – to find out key information about businesses.

Pros: A strong social media presence gives you control over your brand’s content and tone of voice. It allows you to engage with your audience and build a community of people who resonate with your content and tone. Moreover, detailed metrics about followers can be used to inform other marketing strategies.

Cons: Social media visibility is at the mercy of the algorithm, which can make growth seem slow, especially if you are a new business just starting out. Businesses must also consider the risk of social media crises, as negative opinion spreads very quickly on Chinese social platforms.

For more insights from CBBC Member Up2China, join CBBC’s upcoming Consumer Masterclass on ‘Navigating the Chinese Market: Strategies for Success’ on 25 April. Click here to register.

This article is based on an infographic created by Up2China. Click here to view the original infographic.

The post How to choose the right marketing method for your business in China appeared first on Focus - China Britain Business Council.

Strict travel restrictions and quarantines, harsh lockdowns and political tensions, not to mention the absence (until mid-August 2022) of direct UK-China flights, have led many British luxury brands to question their investments and long-term opportunities in China. At Gusto Luxe, we are frequently asked “should we still bother?” My answer is always a strong “yes”.

China’s robust economic foundation, combined with its rising middle class and luxury-hungry Millennials and Gen Zers, provide the necessary conditions for luxury to keep thriving. According to Bain & Company, domestic sales of luxury goods in the Chinese Mainland increased 36% year on year to almost RMB 471 billion (£57.5 billion) in 2021. Millennials and Gen Zers account for over half of luxury spending in China, and that number will keep rising.

This has been evidenced by the quick recovery in the aftermath of the recent lockdowns in cities like Shanghai; the long lines outside Hermes, Dior and Chanel are testament to people’s desire to purchase luxury goods, despite the challenges brought on by the pandemic in their personal and business lives.

China still presents the biggest opportunity for premium and luxury brands, and though there are an increasing number of fantastic Chinese brands across many premium sectors, foreign luxury is still seen as the “real” luxury. The maturity and sophistication of consumers in China today means that there is an appetite for new brands and experiences. Smaller and niche brands, whether in fashion, tech, beauty or travel, have the opportunity to leverage social media – particularly user-generated content-driven platforms like Xiaohongshu — and build communities of fans in ways they could never have done before.

With China’s border largely closed since March 2020, it’s more important than ever to have a robust and flexible China strategy. Travel restrictions mean that luxury consumers are not yet back to travelling to Europe and the UK, but the appetite is there, as evidenced by the recent strength of luxury duty free sales in Hainan, where about 95% of duty free sales in 2021 were personal luxury items such as luxury brand cosmetics.

So what do luxury brands need to know about the China luxury market in 2022?

1. Get ready for the return of travellers: The UK is high on the wishlist for Chinese travellers as soon as travel between the two countries gets easier. In the meantime, you can stay on people’s radar by raising awareness and creating desire for your brand and the destinations you sell in. On the ground, how ready are you to provide a seamless and great experience for their return, for example Mandarin-speaking sales staff or mobile payment options like WeChat and Alipay?
2. Common Prosperity strategy: Ensure that you are thinking about the implications of the Chinese government’s drive for “common prosperity.” Ask yourself: as a brand, what is your China-specific sustainability strategy? You may also need to think about how you would respond if there was a crackdown on luxury advertising or the introduction of taxes on luxury items that are seen to be particularly polluting
3. Embrace China’s unique digital ecosystem: This is a key challenge but also your biggest opportunity. Carefully select which social media platforms to launch on, in line with your target audience. Luxury online penetration reached 19% in 2021 and is only expected to increase.
4. Bridge the (knowledge) gap: Find partners in China who can help you navigate and understand the complexities and nuances of the market.
5. Be crisis ready: You never know when a crisis will arise, and you may get sucked into something which has nothing to do with you, such as a celebrity scandal. Investing in a crisis playbook might be the best thing you do.

The key to success lies in constant evolution at China speed, whether that is product development, creative collaborations, embracing new types of influencers (virtual, even) and social media platforms. Brands must keep moving. The pace is faster than in any other market and the key is to build out strong local teams and find the right partners. The “codes” of luxury, well-formed and established in markets such as Europe and the US, are being rewritten frequently in China.

It’s more important than ever for those in the luxury sector to learn and appreciate the innovation China has to offer. Some clever brands are applying China learnings in retail and digital to their operations in other markets. We also need more people to engage properly with China and learn the language. Sadly, the number of students at universities in the UK studying Chinese is fewer than 1,000, and this number has decreased since I studied Chinese in the 1990s.

China will continue to offer a huge and exciting opportunity for luxury brands. It’s for this reason that at Gusto Collective we have strengthened our offering in Europe. From a London office, we support our clients with strategic counsel, China briefings, crisis management, tech products (virtual influencers, AR, VR, and more), building communities of Chinese consumers in the UK. We work hand in hand with our talented teams in Shanghai and Hong Kong to help brands navigate – and thrive – in the world’s most exciting market.

I remain incredibly positive about the outlook for luxury in China.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research services can help you build knowledge and understanding of the Chinese market prior to investment.

The post Why the future is bright for the luxury market in China appeared first on Focus - China Britain Business Council.

China is a global leader in influencer marketing, with the market for key opinion leaders (KOL) – the more common term for influencers in the Chinese context – reaching RMB 340 billion (£41 billion) in 2021. The Covid-19 pandemic has significantly increased the amount of time people spend online, and KOLs have become a crucial part of successful marketing in China. Today, Chinese consumers rank the opinions of influencers such as live streamers almost as highly as recommendations from family and friends when it comes to making purchasing decisions.

However, with so many companies using paid influencer partnerships to promote their products or brand, some Chinese consumers are starting to get tired of the same old influencer content. As China’s technology sector continues to develop rapidly, some have suggested that digitally generated ‘virtual influencers’ could be the future of influencer marketing in China and beyond.

What is a virtual influencer and how are they used?

“By definition, a virtual influencer is a computer-generated fictional character who has the realistic characteristics and personality of a human. They can be used for a variety of marketing-related activities and are becoming a real force in the influencer marketing industry,” explains Arnold Ma, CEO of digital creative agency Qumin. Famous Chinese virtual influencers include Ayayi, created by Ranmai Technology, and vocaloid Luo Tianyi , who has even performed in concert with Chinese pianist Lang Lang.

Unlike real-life influencers, virtual influencers are AI-powered, meeting the expectations of Chinese consumers for the latest tech to be integrated into their day-to-day lives. Experts predict that the engagement rate of virtual influencers could be three times higher than that of their human counterparts, and the market is expected to be worth RMB 1.5 billion (£182 million) by 2023.

Virtual influencer Ayayi (image captured from Instagram @ ayayi.iiiii)

Virtual influencers may be unable to build ‘authentic’ or ‘emotional’ relationships for themselves, but since they can be effectively programmed to fit in with a brand’s aesthetic or values, the possibilities with a virtual influencer are endless. “Virtual influencers increase the imagination and diversity of the influencer ecosystem. They could be an animal or a cartoon character, which would provide more potential for the format of content creation and business collaborations,” says Robin Liu, co-founder of Influencer Hub International.

What are the risks and rewards of partnering with a virtual influencer?

Marketers believe virtual influencers could be less risky than traditional influencers, especially in the wake of several high-profile celebrity scandals in China, including China’s ‘Queen of Live Streaming,’ Viya, being hit with a £160 million fine for tax evasion. “Virtual influencers … reduce the risks of general agency operation issues and PR crises for IP owners and brands,” says Liu. In addition, virtual influencers give brands more creativity and flexibility as shooting campaigns become less time-consuming.

However, as Ma comments, “virtual influencers could cause people’s self-esteem to plummet as most virtual influencers have [a] perfect appearance and body shape.”  Brands that work with virtual influencers that have been created to fit in with a very tight set of beauty standards could find themselves accused of encouraging negative body image or disordered eating.

Angelababy with her virtual alter-ego, Angela 3.0 (image capture from Weibo @Angela3-0)

Beyond the social implications, the cost of creating or using a virtual idol is not cheap. Although they do not need to be paid a salary, money is needed to develop or recruit an established virtual influencer through an agency. Ma adds that the cost can stretch to several hundred thousand RMB, and if brands consider developing their own virtual influencer, it could reach over RMB 3 million (£356,000). Creating a virtual influencer is a long-term investment, but if executed successfully, such an approach has inherent advantages because it allows brands to add value and demonstrate their technological prowess too.

Partnering with an influencer can certainly translate to increased sales, but as technology moves on, influencers may find it difficult to directly compete against virtual humans, especially when it comes to social media content. Indeed, some influencers have already collaborated with virtual partners. For example, at its pre-autumn 2021 fashion show, Dior created a virtual double of its regional ambassador, Angelababy. The virtual version of the actress and singer was a huge hit, with fans praising her virtual outfit.

Will virtual influencers replace traditional influencers?

The reign of the KOL is likely to continue for some time, with successful celebrity endorsements still making huge waves in the Chinese market. “KOLs remain mainstream due to the importance audiences place on emotion building and technology barriers,” says Liu.  However, the traditional influencer model has the potential to become outdated.

Gen-Z Chinese consumers were raised on technology and have a strong desire to experiment and try new things. Therefore, the demand for real influencers might decrease as marketers try out virtual methods. As Arnold Ma comments, “the market is seeing more diversity, with more KOLs rushing into the battleground as well as virtual beings gaining traction, especially in Chinese digital marketing scenarios.”

Brands operating in China in all industries should take note of the rise of virtual influencers and of their impact as metaverse-related marketing gains more traction.

Entering China is a key decision for businesses of all sizes. Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC can provide you with the platform to unlock your potential.

The post Should your next influencer partnership in China be virtual? appeared first on Focus - China Britain Business Council.

Anyone doing business with China in recent years has been aware of the importance of WeChat, a social media one-stop-shop allowing chats, promotions, shopping and payments all on a single platform. And its importance can’t be understated for most businesses in China. However, its popularity and prevalence has led some companies to forget everything else and replace a broad marketing plan with a simple WeChat plan.

According to Arnold Ma of Qumin, WeChat should be regarded as more of an operating platform than a social media channel. And when it comes to social, there’s a new kid on the block. That kid is Douyin – a short video app that was initially popularised by people lip-synching along to famous songs. Users then started showing off other talents, performing comedy sketches and entertaining more generally; Douyin was soon mostly made up of user generated entertainment content.

Over a billion videos are viewed every day by the 350 million Daily Active Users on Douyin in China – not bad for a company that was developed by a team of 8 people over 200 days. Today more than half of its users are under 25 years old, making it predominantly Millennials and Gen Z users who are active on the site.

Many of the early Western social media platforms were desktop-based sites that have since been adapted to mobile. But China – without a long history of desktop internet – leapt straight to mobile. As a result, it’s been able to develop apps that are more suited to mobile, bypassing the desktop legacy that so many western sites have been stuck with. Douyin’s format of videos being presented in full portrait mode (as opposed to the horizontal mode that is more suitable for desktop viewing) has really captured a youth audience who are used to swiping, scrolling and short form content.

Today, only 15 percent of teens now post to their WeChat moments feed says Ma. “When social media platforms go mainstream, they lose the youth,” he explains. “We can see how Facebook lost young people when they went from niche to mainstream and we now are seeing the same with WeChat.”

Douyin’s video only platform has come at the right time. This is particularly true in China, where Chinese people spend a combined 600 million hours a day watching short videos on their phone. Ma argues that Douyin is leading the way in third generation social media. First generation – the MySpaces of this world – made users dive into and out of other users’ pages or blogs. The second generation of social media platforms such as Facebook aggregate a feed that allows people to see all of their network’s content by scrolling down one page. But the third generation Douyin-style platform is content rather than network led. Artificial Intelligence algorithms present the user with content that will be most suited to them, regardless of whether they “follow” the content producer or not.

Users can then like and comment on the content. More likes and views cause the algorithms to present the content to those users who favour those categories and positions it in front of more users.

Therefore, even content from accounts with a relatively small number of followers can get seen by huge numbers of people if the content they produce is suitably interesting and has “thumb-stopping” power.

For businesses this presents an interesting opportunity. Unlike sites like WeChat or Instagram where users must already be following a business account to view their content, with Douyin, the content might be presented to them whether they follow the account or not. This enables the size of the reach of the business to be much wider. Furthermore, the more content produced and the more it is viewed, the higher up the rankings that user becomes. Therefore, Douyin starts doing the promotion on behalf of that business.

And of course, in-app shopping is available, allowing people to buy clothing worn or items featured in the content. “I was watching a video the other day of this man picking fresh chillies in rural China, chopping up meat, preparing freshly ground spices and herbs then cooking everything on a huge wok over a wood burning stove,” explains Ma. “My mouth was watering as I watched this. I said to myself, I wish I could eat this now. And then in the bottom corner a button popped up to enable the user to buy that exact chilli and beef sauce. In China, you could order that at lunch time and have it with rice in the evening! This is not an ad, it’s the perfect and seamless integration of content and commerce that the likes of Facebook have struggled to crack for years.” he says.

This is not an ad, it’s the perfect and seamless integration of content and commerce that the likes of Facebook have struggled to crack for years.

Adverts, according to Ma, are getting smarter. Companies don’t need to have followers and reach users specifically targeted by the platform’s AI. A combination of organic branded content and paid for ads (to boost reach) offer two different (and low cost) approaches, and real time insights can be garnered on products from users’ comments and reactions.

Douyin has a sister site in the West called TikTok (which is also owned by the Chinese company Bytedance) but Ma is quick to point out they are not the same. “Douyin is less silly than TikTok,” he explains. “It’s more useful and more creative and is hungry for quality content.” He argues that it will bring back the rise of the creative rather than the commentator. “Sites like Instagram brought about the rise of the social influencer who were mostly nothing more than commentators. Foodies who took pictures of their meals or fashionistas taking pictures of a handbag,” he says. “With Douyin we will see the rise of the social creator – actual chefs preparing the meal or designers making fashion items.”

For British brands looking to keep their finger on the pulse of the zeitgeist, a presence on Douyin might well be an incredibly cost-effective way to tap into China’s youth market.

The post What is Douyin? And how is it dethroning WeChat appeared first on Focus - China Britain Business Council.

What are Mini Programs?

Launched in January 2017, WeChat’s Mini Programs (MPs) provide an important link for user and businesses, by providing an accessible and powerful way to consume products and services through the WeChat platform. WeChat contains a variety of key features that provide personalised services such as e-commerce and mobile payments linked to social media.

WeChat ecosystem

MPs are mobile apps built for and within the WeChat platform. There are MPs for things like travel, games, food delivery, shopping, event sales and much more and they are often found through online sharing and offline QR-code scanning.

Interface of WeChat MP with services Video depicting the social applications of WeChat MPs

MPs that go viral are typically those that have an element of gamification, and use reward-based incentives as a tool to quickly scale the product.

Google China has created a viral sketching game in MP Game

Selling socially

Whilst e-commerce (especially cross border commerce) has become a hot topic among global brands entering the China market, it is ‘social commerce’ that is increasingly the new trend in the market. Gradually, more and more offline purchases are being influenced by recommendations made through socially driven, highly interactive online experiences.

This integration acts to boost the online buying and selling cycle and has given birth to an ecosystem in which commerce is embedded into social interactions and social networks have turned into multi-dimensional experience platforms.

Social networks’ potential to generate viral activity, combined with the trust these networks generate, is the key driver in motivating users to purchase products and services. It is this herd mentality, or FOMO (Fear of Missing Out), that feeds the development of particular trends and fashions.

More and more offline purchases are being influenced by recommendations made through socially driven, highly interactive online experiences.

Compared to traditional mobile websites the MPs provide a simpler user experience, increasing accessibility both online and offline. For example, scanning a QR code in a store can provide a discount code or offer from the MP.

Mobile payments are seamlessly integrated via WeChat pay, meaning no third party payment gateways are needed, which reduces fees and increases speed. And MPs have many more traffic sources including:

• MPs Nearby Feature
• Sharing to WeChat Friends
• Sharing to WeChat Groups
• WeChat MPs linking to Moment Ads
• Scanning Mini Program QR Code
• Official Account Article Syndication
• MPs linking to Official Accounts
• WeChat MPs linked with e-coupons
• WeChat Pay linking to MPs

Recently, Chinese eCommerce brands like JD.com, Meituan Dianping and Pinduoduo have been implementing even more innovative features within the MPs.

JD.com, a pioneer in social e-commerce in China. has been actively using and deploying WeChat MPs to facilitate social group buying, and have garnered an active user base in Tier 3 and Tier 4 Chinese cities through marketing incentives and education. As such activity develops the understanding Chinese users already have on how to purchase through a MP, it also better allows global brands to target their Chinese consumers.

The prevalence of social commerce, at significant scale, via a decentralised platform like WeChat, enables MPs to be an important element in the ecosystem. As this area grows, the strong and dynamic interactions between users and businesses that MPs encourage could encourage global brands to build their brand awareness and sell their products and services more creatively to Chinese consumers.

The benefits of a WeChat Mini Program presence

Access to a large user base reaching deep into new markets in China

WeChat has more than 1 billion users globally. Luxury brands on WeChat are able to reach that audience and effectively showcase their brand identity to potential Chinese customers in smaller cities, which are the future luxury hubs in China.

Clear conversion analytics and tracking

Luxury brands that engage in WeChat advertising are able to clearly track ad conversion metrics such as profile views, the click-through rate and ad conversion rate. Brands are able to utilise this information to craft effective digital marketing strategies for seasonal promotional campaigns.

Online-to-offline integrated marketing

WeChat has many features and functionalities such as WeChat official accounts, Moments Ads and Mini Programs. All these online interactions are able to be integrated into an offline environment. A luxury shopper can preview product information online through a MP, book a VIP appointment online or be invited to preview exclusive products and services offline in a speciality store.

Social interactivity within WeChat

WeChat’s biggest strength is social. Hence, luxury brands can generate a personal and interactive relationship with users through the use of social and gamified marketing tools. For luxury customers, the ability to connect to brands at an intimate level is critical. This is especially true when consumers are accessing the information digitally or through social recommendations from their friends and peers. The perceived affiliation with luxury brands strengthens overall brand engagement and loyalty.

Full control of brand identity

Luxury brands have full autonomy and flexibility in building their own brand identity on WeChat. They are empowered with WeChat’s tools to create creative and interactive content to engage luxury consumers.

WeChat features such as Brand Zone enable luxury brands to effectively illustrate their brand’s story and allows users to share exclusive content with their social networks. Other functionalities such as Digital Concierge allow consumers to directly contact brands if they have inquiries or need assistance.

Luxury brands such as Dior and Tod’s have all built up their own branded WeChat stores with an integrated suite of buying and support services. Hermes also set up a support channel on a MP to assist before and after sales support. Customers could also pre-book an appointment to view favourite items.

Five types of social selling 

Limited time offer

MPs that deploys flash sales or ‘Limited Time Offers’ generate viral interest to attract consumers. For consumers, the ability to obtain a good deal is psychologically addictive and spurs strong consumer buying desire. Such strategies will often attract a large and targeted audience, generating high volumes of brand awareness and marketing for the products being sold.

For consumers, the ability to obtain a good deal is psychologically addictive and spurs strong consumer buying desire.

This strategy works best for those luxury and premium brands that effectively display their brand identity in the MP.

A good example of this was a partnership between social influencer Mr. Bags and handbag brand Tod’s. Within six minutes of launching the WeChat MP shop, more than 300 of the US $5,000 bags were sold.

Mr. Bags partnership with Tod’s to launch on MP

Price sensitive MPs

Relying on network effects to bring traffic and awareness to the MP, brands will offer users a significant discount if they successfully share or refer to their friends. This is followed up with further rewards such as discounts and complimentary gifts if the recommended friend then purchases a product.

Starbucks successfully implemented this model of social selling with a promotion in which a customer who bought a Starbucks coffee through the MP could pass on a limited number of discount e-coupons to friends.

Starbucks China discounted offers MP

Social group buying MPs

Another strategy sees brands invite groups of friends to buy in bulk volume in order to obtain a discounted price of complimentary items on top of their purchase. Users share the MP via their WeChat Moments, WeChat Friend network and WeChat Groups to garner interest amongst their network.

This type of social selling allows large amounts of users to share offers, and by putting the brand in front of a large audience can create impulse purchases.

Pinduoduo is a master of social group buying and is very successful in leveraging the power of social recommendations to acquire users and offer products at a significantly lower price. Their target audience is predominantly price sensitive clients and this form of MP works best for low to mid-priced products and services.

Social group buying is becoming more popular

Reward points MPs

Some MPs allow users to acquire membership points when they make purchases. As with many loyalty programmes, these points can then be used to get further discounts and exclusive offers. Carrefour China recently launched a reward points programme that promoted the latest assortment of fresh produce.

It is common to see Chinese consumers scanning QR codes in store, then purchasing the item and redeeming the reward points that they have. This “Scan, Redeem and Purchase” behaviour has drastically reduced queues in the supermarket and increased overall user experience.

E-Coupon/Card MPs

The ability to integrate coupons or gift cards to MPs is useful for user acquisition, engagement and loyalty. When the JD.com group buying MP was first launched, they introduced more than 50 kinds of E-Coupons where users would be given a 100 RMB coupon if they helped acquire four new users.

JD.com launching e-coupons within their MP

Shifting trends and psychology of Chinese consumers

Growing individualism means personalisation is key

Chinese consumers are increasingly prioritising brands that offer experiential products and express individuality, so MPs that allow the personalisation of products and services are popular. Through MPs such as Digital Concierge and other Premium VIP services, brands can offer personalised products and services that cater for this growing desire for exclusivity and autonomy.

Longchamp’s MP allows the personalisation of bags, whilst the Sergio Rossi MP allows shoppers to personalise the heels on their shoes according to their size and colour preferences.

Longchamp’s MP allows bags personalisation and Sergio Rossi’s allows customisation of heels.

Scarcity of time means elevating convenience

With the development of ride-hailing, bike-sharing and food delivery services, Chinese consumers have both saved time and become instantly available to a range of products and service offerings.

The fast loading time and clear navigation features of MPs allows users to quickly access products and services. Mobike’s MP allows users to quickly detect the nearest available bike through the MP’s location features. Similarly, Tesla’s MP facilitates user access to the nearest electric charging station.

Mobike Mini Program allows users to locate the nearest available bike

Tesla Mini Program allows drivers to locate the nearest charging station

Increasing social stresses means increasing gamification

Higher levels of social stress are driving China’s youngest generations to demand more informal interactions in both the virtual and physical world. The gaming aspect of MPs allows users to interact with their friends in a fun way whilst also granting them increased access to products and services through immersive social experiences.

The viral MP game “Tiao Yi Tiao”, in which users gain points by jumping on bricks, amassed 100 million users within the first two weeks of its launch in December 2017. Nike was the first to place in game ads, which generated significant brand awareness for their Nike React campaign.

Nike Ad Placement in WeChat Mini Game – Tiao Yi Tiao (Jump)

Global shopper mind set means providing a global marketplace

Chinese consumers are now global shoppers and are increasingly fully independent travellers who prefer to plan trips themselves, which – potentially – could include recommendations via WeChat. MPs that allow Chinese consumers to shop globally and buy products and services overseas easily are increasingly important.

A good example is the DFS Hong Kong e-shop MP; users can use this to shop while they are in China and then pick up from outlets in Hong Kong with added value and convenience.

DFS Mini Program provides a global marketplace for Chinese shoppers

Advantages of using Mini Programs

User Perspective:

• Users do not need to install (or uninstall) a MP like a native app.
• Users can access a variety of functional services such as watching videos and gaming in a MP.
• Users can save data storage space in their phone as each MP takes up only a maximum of 8MB space.

Brand Perspective:

• Brands can target and leverage a massive user base of more than a billion users.
• The development lifecycle of MP is much faster and easier to prototype and iterate than an app.
• It’s easier to market, discover and promote a MP through the WeChat ecosystem using tools such as WeChat Moment Ads, WeChat Official Accounts and WeChat Pay.
• It offers the ability to dynamically connect online and offline environment (O2O) through QR code activation.
• It can assist businesses in the process of digital transformation by offering quick to start and easier prototyping of digital ecosystems.

The post What are WeChat Mini Programs? appeared first on Focus - China Britain Business Council.

First introduced in 2017 by 500 start-ups, this year the report is published by Abacus, the Morning Post’s digital news arm, who have identified four overarching themes across the industries investigated.

Chinese internet giants are doing everything

Internet behemoths Baidu, Alibaba and Tencent (BAT) are present in all burgeoning tech, with the three companies investing, building and acquiring business across all the 12 industries analysed by the report.

Chinese internet empowers rural communities

Internet access in rural China is rocketing. In 2017 there were 209 million rural users, with a penetration rate of 35 percent, whilst 10 years previously, in 2007, there was just 7 percent penetration. This has meant that 55 million rural students are now taught through live-streaming classes, whilst just under 500,000 online shops are run by rural households.

55 million rural students are now taught through live-streaming classes

Chinese internet companies embrace ‘Social+’

E-commerce often integrates social at the core of their business model, but other online industries, such as news and language learning, will also use it as a means to drive user engagement and growth.

Government is the visible hand

Government plays a key role within the ecosystem, with the report arguing that business, particularly in areas of finance, can live or die depending on the degree of government support they receive.

Other key takeaways from the report include a massive shift to cashless; US$ 15 trillion of transactions were made using mobile payments in 2017. China also holds a leading place in online gaming; in the same period, there was US$ 30.8 billion in gaming revenue, a quarter of total global income from the sector.

“We are all about unboxing China tech for the rest of the world, and this report fits that mission,” said Ravi Hiranand, executive producer of Abacus. “China’s internet population is huge and its tech sector is vast, but this report helps to break it down by giving you a curated look at key trends and companies that you need to know.

The post Major new Chinese Internet report released appeared first on Focus - China Britain Business Council.