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.

China’s vast consumer market defies classification. And yet, amidst the mosaic of consumers divided by everything from geography to socio-economic status, one key group has more power than most – the 300 million-strong middle class, many of whom were born after the 1980s.

China’s rapid transformation over the last four decades has given rise to significant shifts in consumer behaviour. The journey began with a focus on cost, dictated by limited disposable income that led buyers to chase the lowest prices. The narrative then transitioned to prioritising value, with quality versus price considerations becoming central. Subsequently, luxury brands started to lure in consumers, becoming status symbols for the newly wealthy.

In the wake of these trends, a new class of savvy, conscientious consumers has emerged, especially in first-tier cities such as Beijing and Shanghai. These shoppers are driven by a desire for experiences and exclusivity and are adept at applying the knowledge they have gleaned from online research to find the best product at the best price.

The lure of localised offerings

While international luxury labels continue to be popular with China’s burgeoning middle class, brands are now adapting their offerings to resonate with Chinese consumers on a deeper level and appeal to the trend of China Chic – or Guochao as it is known in Chinese. Many brands are incorporating Chinese icons or elements tied to traditional festivals or stories into their products. Moreover, limited-edition items crafted exclusively for the Chinese market are gaining traction too.

This localisation extends beyond the product to the experience. Brands must establish meaningful connections with their audience through well-chosen collaborations that have cultural resonance. For example, Diageo’s Johnny Walker Blue Label launched a Forbidden City Limited Edition bottle, while British fragrance house Creed partnered with Benzo, a rapper from Chengdu, to incorporate mention of their fragrance into his music.

The review revolution

The contemporary Chinese consumer is defined by their discernment, and their willingness to seek out the opinions of their peers. When prospective buyers first start looking for a product, their first instinct is to check opinions on platforms like Xiaohongshu and Douyin. These reviews, often from other customers with a similar socio-economic profile, play a pivotal role in shaping purchase decisions.

The significance of reviews extends across borders. A stroll down London’s Bond Street or a trip to Bicester Village reveals the same pattern among Chinese shoppers – they will not hesitate to share or seek out opinions. The digital landscape has given consumers the power to scrutinise not only a product’s quality and utility, but also the customer service and refund policies offered by brands. British brands should build awareness of these behaviours into their customer service ethos both in China and in the UK.

Influencers become the architects of consumer choice

Influencers wield remarkable sway over consumer choices all over the world. In China, these opinion shapers come in various tiers. Key opinion leaders (KOLs) – usually existing celebrities (singers, actors) or influencers with a celebrity-sized following such as Li Jiaqi – are instrumental in raising product awareness among their expansive follower bases. Key opinion consumers (KOCs) cater to niche audiences, offering detailed reviews and insights. Key opinion sellers (KOSs) leverage their knowledge and influence to drive direct sales within specific demographics, often through more private spaces such as WeChat groups (limited to 500 people).

Beyond these tiers lies the average consumer, keen on sharing their purchases and experiences online. Thus, the customer journey becomes a blend of trusted reviews, peer endorsements, and celebrity influence, all of which can have an effect on a brand’s reputation and success.

Experiential shopping is transforming the retail experience

In the face of online competition, today’s bricks-and-mortar shopping experiences must transcend transactional moments; they must deliver an immersive experience. This notion holds especially true in China, where architects are reimagining shopping malls to prioritise experiences over conventional retail spaces. Simon Mitchell from renowned architecture firm Sybarite explains how malls are transforming into hubs of art installations, public spaces, green zones, and socialising spots. This change is indicative of a larger shift from shops as mere storage spaces to showrooms.

Technology is completely intertwined with this experience, with virtual reality (VR) and augmented reality (AR) empowering consumers to make more informed choices. VR and AR tools facilitate personalised interactions, allowing customers to visualise products in their lives before purchasing. British brands such as Molton Brown and Burberry have already started leveraging digital platforms to craft bespoke experiences that seamlessly merge the online and offline worlds.

Conscious consumerism: The ethical imperative

One of the newer threads running through China’s middle-class consumption trends is the growing awareness of ethics and sustainability. Young Chinese consumers are no longer just buying products; they are investing in brands with sound ethical and environmental foundations. This change has prompted companies to integrate sustainability into more aspects of their operations. Consumers demand more than symbolic corporate responsibility; they seek authenticity, transparency and community engagement.

Shaping the future of consumption

The story of China’s middle-class consumer is one of transformation, shaped by a rich tapestry of historical shifts, technological leaps and ethical considerations. This dynamic narrative continues to unfold, offering brands an unparalleled opportunity to be part of the journey that is shaping the future of consumerism in China and beyond.

As China’s consumer landscape evolves, brands are compelled to adapt or risk irrelevance. A symbiotic relationship between consumers and brands has emerged, where shared values and experiences define success. The road ahead demands ethical practices, localised offerings, immersive experiences, and a genuine commitment to community development.

The post How China’s Consumer Landscape is Evolving appeared first on Focus - China Britain Business Council.

Following the China Consumer Conference Day and CBBC’s Summer Reception – which took place on 4 July at Mayfair’s No.4 Hamilton Place and attracted over 200 delegates – the second day of activities under CBBC’s flagship consumer event generated a lot of buzz, with the exchange of fresh ideas and insights, as well as the generation of tangible next steps for participating UK brands in the China market, high on the agenda.

The event also included an exclusive afternoon private view of ARgENTUM Apothecary and a reception at their London venue

Meet the China Partner

The day kicked off with Meet the China Partner, which was held online as well as at CBBC’s London office, with select China buyers attending in person for the first time since before the pandemic.

Zhu Dan, Business Operations Director, Douyin International, presents at the Meet the China Partner session at CBBC’s London Office

UK Consumer brands interested in meeting some of China’s most successful retailers and distributors of UK consumer products took part in the session, which gave them the opportunity to meet and build relationships with four pre-warmed buyers, with dedicated follow-up support from CBBC included post-event.

Participating importers and distributors included:

Participating digital marketing and e-commerce agencies included:

Participating e-commerce platforms included:

View the full list of Chinese Partners who took part here.

Chinese Influencer Programme

Following the Meet the China Partner session, the Chinese Influencer Programme took place in the afternoon at CBBC’s London office in Westminster.

Held in partnership with Influencer Hub International, in this interactive session, UK Consumer brands in attendance received valuable live feedback on their brand from dynamic London-based Chinese influencers.

Kiltane takes part in The Meet the Influencer session at CBBC’s London Office

The participating Chinese influencers were:

• UKZone: Leading UK-Chinese influencer covering lifestyle, culture and news (total followers on Xiaohongshu & Weibo: 610,000)
• Ms Xiaoji in London: UK news/lifestyle blogger with a significant UK-based Chinese international student audience (total followers on Xiaohongshu, Douyin, Bilibili & WeChat: 400,000)
• Liujie: Multi-industry female entrepreneur, leading lifestyle influencer and high-end lifestyle expert. She is also a pet lover (total followers on Xiaohongshu & Weibo: 74,000)
• Mary: Fashion and cultural influencer with a focus on street interviews (total followers on Xiaohongshu: 15,000)
• Kayla | 29士多店(每日必更！: Shares insights on her lifestyle in the UK and China, as well as tips and information on food and beauty (total followers on Xiaohongshu: 5,700)
• Taoci: High-end lifestyle influencer in the UK, shares work experience insights in the UK. Her followers are mostly interested in UK culture (total followers Xiaohonghsu: 5,600)
• Vickiyu: Shares experiences of her lifestyle in the UK and China, as well as family and home renovation insights (total followers on Xiaohongshu: 3,300)

Each of the participating influencers brought their own unique perspective to the event, with expertise in areas ranging from fashion and lifestyle to food and drink to beauty. Each of the influencers has an impressive follower count and presence across key Chinese social media and social commerce channels, including Xiaohongshu, Bilibili, Douyin (the Chinese version of TikTok), Weibo, Instagram, and WeChat.

UK Consumer brands took advantage of this chance to engage in a live Q&A session with influencers to discuss any queries they have in relation to consumer perceptions, including but not limited to new product launches, packaging, trends, shopping behaviour and market strategies.

The session provided unique and meaningful insights that will help participating brands to make strategic decisions, innovate and grow in the Chinese market going forward.

Following the conclusion of the Influencers Session, guests had the chance to attend an exclusive afternoon private viewing of skincare brand ARgENTUM Apothecary at the brand’s London venue.

Guests mingle at ARgENTUM Apothecary

Guests sampled the brand’s luxury products and enjoyed the chance to hear from Founder & CEO Joy Isaacs on her vision for the brand, as well as her experiences in the Chinese market.

For further enquiries about China Consumer 2023, please email Antoaneta.Becker@cbbc.org or Celine.Tang@cbbc.org

To enquire about membership at CBBC, please email membership@cbbc.org or visit cbbc.org/membership

Click here to learn more about China Consumer 2023

The post China Consumer 2023: UK Consumer Brands Meet Leading China Partners & Influencers appeared first on Focus - China Britain Business Council.

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 (£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, with Chinese consumers ranking the opinions of influencers such as live streamers almost as highly as recommendations from family and friends when it comes to making purchasing decisions.

Li Jiaqi competing with Alibaba’s Jack Ma to sell the most lipsticks during a live stream (captured from Youku)

Austin (Jiaqi) Li: Big isn’t always better

Taobao Live followers: 73.4 million

Known by the moniker “the lipstick king” after selling more than 15,000 lipsticks in five minutes on Taobao Live, Austin Li is one of the most prominent faces of China’s live commerce revolution. The former shop assistant first gained fame for his marathon live streams, where he would apply hundreds of different lipsticks, and he soon became Taobao Live’s most lucrative seller, playing a key role in the rise of shopping festivals like Singles’ Day and 618. In 2021, Li was one of the few Chinese people to be included on the Time 100 Next list.

The charismatic star’s selling power has attracted many of the world’s biggest brands, including NARS, Hilton, and Coach. However, the success of major streamers like Li has drawn increased scrutiny from the authorities and led to several uncomfortable scandals.

Li became a cautionary tale in early June 2022 when one of his live streams abruptly went off the air after he presented an ice cream cake resembling a tank the day before the anniversary of the Tiananmen Square protests (although his team blamed the outage on technical issues). Li was nowhere to be found on social media for several months, before making a triumphant comeback in the run-up to Singles’ Day 2022, with his first stream clocking up over 50 million viewers.

His successful return put paid to speculation that the era of the live streaming megastar was over; however, his absence served as a reminder that hitching your brand’s bandwagon to an internet celebrity can leave you open to being tainted by association if a scandal ensues. Moreover, while working with a superstar like Li can help raise demand for hero SKUs for brands with an established presence, it is unlikely to be an accessible strategy for brands that are still building awareness, which may be better served working with smaller KOLs on platforms like Xiaohongshu.

A Kuaishou video from Dandan advertising a live stream for the 618 shopping festival

Dandan: The importance of multi-platform coverage

Kuaishou followers: 86.3 million

China’s e-commerce ecosystem – traditionally dominated by Tmall and JD.com – is becoming increasingly fragmented, with social commerce platforms like Douyin, Xiaohongshu and Kuaishou representing an ever-growing proportion of total sales. Short video platforms, in particular, are seeing massive growth, with China Skinny reporting that Douyin and Kuaishou’s combined sales in Q1 of 2023 made up 97% of the value of all sales on Tmall, with fashion and personal care and cosmetics demonstrating particularly high merchandise values.

Kuaishou KOLs like Dandan may not attract as many column inches in the West as superstars like Li, but they have immense selling power. Trendy, fast-talking Dandan reportedly generated a staggering 17.8 billion units of gross merchandise volume in 2022, becoming Kuaishou’s top seller.

Unlike many KOLs, who tend to focus on one product category, Dandan and other top sellers on Kuaishou hawk a wide variety of items, from litre bottles of soy sauce to mid-range cosmetics brands. This appeals to Kuaishou’s user base, who tend to be located in 3rd or 4th tier cities and are looking for discount prices as much as branded products. As a result, Kuaishou KOLs can be a useful tool for testing the waters outside of big cities like Beijing and Shanghai, and often have lower fees.

Ayayi in a campaign for a contact lens brand (Photo:@ayayi.iiiii/Instagram)

Ayayi: Is it better to go virtual?

Real-world KOLs are facing increasing competition from an unlikely source: virtual influencers. “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.

One of China’s best-known existing virtual influencers is the so-called ‘meta-human’ Ayayi, created by Ranmai Technology in May 2021. Hoping to capitalise on the virtual idol, whose debut on Xiaohongshu attracted more than two million views and garnered over 95,000 likes, Alibaba ‘hired’ Ayayi as a digital manager for Tmall Super Brand, where she curated campaigns and even created NFTs.

Virtual influencers tap into the desire for novelty among Gen Z Chinese consumers, as well as their willingness for the latest tech to be integrated into their day-to-day lives. Using a virtual influencer can show that a brand is forward thinking.

From a business perspective, virtual influencers could be less risky than traditional influencers, especially in the wake of scandals like the one that embroiled Li Jiaqi in 2022. “Virtual influencers … reduce the risks of general agency operation issues and PR crises for IP owners and brands,” says Robin Liu, co-founder of Influencer Hub International. So while they may not be able to build ‘authentic’ or ‘emotional’ relationships, they can be effectively programmed to fit in with a brand’s aesthetic or values without the risk of dealing with a chaotic celebrity personality.

The CBBC view

Working with KOLs should be a key part of any consumer brand’s marketing strategy in China. Still, with potentially huge amounts of money at stake, it is worth considering whether engaging a major KOL is the right approach.

Many brands are increasingly finding success working with mid-size KOLs or micro-influencers (content creators with a small but highly-engaged following in a niche segment, sometimes referred to as Key Opinion Consumers (KOCs) in the Chinese context, especially if they are new to the market.

Brands should also consider cultivating owned channels on platforms such as Douyin rather than relying entirely on third-party creators. This removes the risk of becoming embroiled in a scandal if controversy arises around a popular KOL while also giving the spotlight to the people who know the most about your brand. When tied together with product seeding via more-established KOLs, this creates a more well-rounded, sustainable brand strategy.

China Consumer 2023

This article was produced as part of a series for China Consumer 2023.

Learn more about CBBC’s flagship consumer event of 2023 here.

The post What 3 top KOLs can tell us about influencer marketing in China appeared first on Focus - China Britain Business Council.

Most brands nowadays will be familiar with China’s unique social media platforms – WeChat, Weibo, Xiaohongshu, Douyin – and how they compare to their Western counterparts like Instagram and Facebook. While there are many similarities between Chinese and Western platforms, particularly in terms of their young, entertainment-hungry audience, their differences mean that marketers need to subtly shift their strategies when creating content for the Chinese market, particularly when it comes to influencer marketing – or KOL (key opinion leader) marketing, as it is usually known in China.

Chinese consumers have traditionally been seen as being very receptive to seeking recommendations for new products and ideas online. This has been reflected in the format of user-generated content-driven platforms like Xiaohongshu and also in the degree of acceptance and importance given to influencers. “Chinese consumers are more receptive to promotional content because it is more of a guide,” says Robin Liu, co-founder of social media marketing agency Influencer Hub International.

“They are used to searching for information about the products on social media, which is the start of the customer purchasing journey.” Liu notes that OgilvyOne reported that over 55% of Chinese users had participated in online discussions about brands and that these discussions are able to directly affect businesses. It can be difficult for audiences to discern the extent of promotional content because people naturally trust and accept the influencers.

In either market, influencers from famous media or professional backgrounds or with a large number of loyal followers will automatically win more trust. Liu notes that the biggest difference between Chinese and UK influencers is professionalism, and the emergence of multi-channel networks (third-party services that work with multiple channels and creators to develop content), also known as MCN, is the key reason for this difference. Thousands of MCNs in China, such as Dayu Media, Mei One, and Hive Media, offer professional training and a variety of resources to influencers. More importantly, this number is still growing. According to iiMediaResearch, there were 30,000 MCNs in China in 2021, responsible for some of the country’s biggest internet celebrities, such as ‘Lipstick King’ Li Jiaqi (prior to a recent controversy that saw him disappear from the internet) and Papi Jiang.

As a result of this “content factory” structure, there is less pressure on influencers to be “authentic” or anti-commercial, especially since their careers were often started on social commerce platforms, as WWD China Markets Editor Tianwei Zhang noted in an interview with High Snobiety. That being said, the most popular influencers are still those that have successfully blended their own unique style and topics that genuinely move them with relevant brand partnerships.

Clearly, the ecosystem for influencers and brands is much more mature and well-regulated in China, as Jake Xu, co-founder of Shakeup Cosmetics, points out. Based on Shakeup’s experiences, this means that “Chinese social investment is much more costly than in the West, but this is in proportion to the size of the market. Commercially, influencer campaigns in China generate more tangible and visible monetary return… and brands get better control of their ROI.”

“Consumer awareness and mature warehousing and logistics infrastructure have played a big role in the rapid growth of [the influencer ecosystem] in China,” adds Liu. This infrastructure has been particularly beneficial to social commerce, with more than 70% of Chinese consumers saying that they are likely to shop on social media platforms, far ahead of the 42% worldwide average. But the UK is catching up, with social commerce expected to grow by 37.5% to reach over $21 billion (£17.3 billion) by the end of 2022.

But with so much content being churned out every day, consumers in China and the West are starting to complain of “influencer fatigue”. So how can companies keep working with influencers while making sure that the content is true to their brands and also appeals to consumers?

“Simply put, it is about improving creativity,” Liu says. “Rather than direct sponsored content, brands should consider product placement with well-selected influencers based on the target audience. Brands should also consider giving the influencer more artistic control over the content to make it more authentic and engaging for their audience. For long-term projects, such as launching a new brand in the China market, companies can consider identifying and developing a key opinion consumer (KOC) (the equivalent of a “micro influencer” in the Western market) that can grow alongside the brand and build following and reputation organically.

Many of the lessons learned from influencer marketing in the West can be applied to KOL marketing in China, and vice versa. Whatever market you are working in “make sure the size of the prize can justify the risk before you commit,” cautions Xu.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC can further help you identify the best social commerce platforms for your brand and target market in China.

The post What are the differences between influencer marketing in the UK and China? appeared first on Focus - China Britain Business Council.

Following the event’s Conference Day, which took place in London on 28 June and attracted over 120 attendees, the second day of activities under CBBC’s flagship Consumer event of 2022 generated a buzz, with the exchange of fresh ideas and insights, coupled with the generation of tangible next steps for participating UK brands in the China market, high on the agenda.

Meet the China Buyer is a signature service that CBBC has proudly offered for many years, whilst our Chinese Influencer Focus Groups are a new offering trialled at China Consumer 2022, and soon to be launched as a dedicated service.

“We have received fantastic feedback from all of the brands participating in China Consumer 2022’s Day 2 programme, said Pearl Zhu, UK Sector Lead for Retail and Ecommerce, China-Britain Business Council. “The participating UK Consumer brands were delighted with CBBC’s experience, knowledge and resources on offer, and expressed the value that these have added to their China market journey going forward.”

Based on the success of the Chinese Influencer & Student Brand Ambassador Focus Groups, CBBC plans to launch a new dedicated service offering this platform to UK brands later in 2022.

Meet the China Buyer

The day kicked off with Meet the China Buyer, which was held exclusively online. UK Consumer brands interested in meeting some of China’s most successful retailers and distributors of UK consumer products took part. During the session, participants met and built relationships with four pre-warmed buyers, with dedicated follow-up support from CBBC included post-event. Participating Chinese Buyers included:

Buyers in the retail industry:

Hangzhou Juanqi Clothing Limited 杭州隽启服饰有限公司
Hengcheng Group 恒城集团
Shanghai Wisepartners Ecommerce Co Ltd 上海智驭电子商务有限公司
Shantou Nuomo Trading Co Ltd 汕头市诺墨贸易有限公司
Tangshan Lubei District Wonderland Children’s Clothing Shop 唐山市路北区旺得童装店

Importers in the food and drink industry:

Beijing Vandergeeten Trade & Commerce Co Ltd
Feast Creative Foods
Green Phoenix Trading Co Ltd
Weinashi (Xiamen) Alcohol Co Ltd
Pagemill Trading
Shanghai Golden Wing Industrial Co Ltd (Golden Wing)
Weihai Shencheng International Trade Co Ltd

Chinese Influencer and Student Brand Ambassador Focus Group Sessions

Following the Meet the China Buyer session, a Chinese Influencer and Student Brand Ambassador Focus Groups Session took place in the afternoon at CBBC’s London office in Westminster.

Held in partnership with Influencer Hub International, the UK consumer brands in attendance received valuable live feedback on their brand from nine dynamic London-based Chinese influencers and student ambassadors in this interactive session.

Chinese influencers and student ambassadors offer feedback on Umberto Giannini’s products

The participating Chinese influencers and student ambassadors were:

Ms Xiaoji in London
Lisuanyu
Celine Tang
Liujie in the UK
Fantastictam
UKZone
Wetrysnacks
Fanny
Janice Shen
Tempura Baron 天妇罗男爵

Each of the participating KOLs brought their own unique perspective to the event, with expertise in areas ranging from fashion and lifestyle to food and drink to beauty and luxury. Each has an impressive follower count and presence across key Chinese social media and social commerce channels, including Xiaohongshu, Bilibili, Douyin, Weibo, Instagram, and WeChat.

“Umberto Giannini were delighted to join CBBC in their influencer session as part of China Consumer 2022. It was a pleasure to spend time with both influencers and students, and we gained invaluable insights regarding market appetite and positioning for our brand in China,” said Jo Butcher, Commercial Director, Umberto Giannini.

Umberto Giannini’s team attended the Chinese Influencers & Student Brand Ambassador Focus Groups in CBBC’s London Office

UK Consumer brands attending took advantage of the session to engage in a live Q&A session with the influencers and student ambassadors and discuss any queries they had in relation to consumer perceptions, including but not limited to new product launches, packaging, trends, shopping behaviour and market strategies.

The session provided unique and meaningful insights that helped participating brands to make strategic decisions, innovate and grow in the Chinese market going forward.

“We are so happy to have built a relationship with the CBBC who has been giving us the most incredible guidance into the China Market, said Benny Hancock, Co-Founder, Benny Hancock For Men. “Participating in this programme and interacting with influencers and students from China that are living in the UK has been the best insight before launching Benny Hancock For Men into China. Market research on your product offering is essential as it gives you confidence that you are making strong decisions for the market you are entering into. Just because a specific product or shade works in the UK doesn’t necessarily mean it will be successful in China. I recommend everyone does market research like this before entering China!”

Click here to view the event recording

For further enquiries about China Consumer 2022 and CBBC’s work in the Consumer sector please email CBBC’s Director of Consumer Economy, Antoaneta Becker at Antoaneta.Becker@cbbc.org or CBBC’s UK Sector Lead for Retail and Ecommerce, Pearl Zhu at Pearl.Zhu@cbbc.org.  

To learn more about CBBC’s Membership offer please email Membership@cbbc.org or visit www.cbbc.org/membership 

The post China Consumer 2022: UK consumer brands meet leading China buyers and influencers 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.

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