In the run-up to the largest China-consumer offline event of the year —China Consumer 2022 — CBBC was thrilled to introduce China Voices. Reflecting the expansive, diverse nature of China and its consumers, our extensive and varied panel of China specialists and UK brands shared their exclusive insights and unique experiences in the China market.

China Voices put our speakers in the spotlight, who shared first-hand advice on how to navigate China’s sophisticated marketplace – from achieving success and satisfying your China consumers’ demands through branding and brand aesthetics, to targeting young consumers, communicating your unique brand identity, and diversifying your retail space through concept stores.

Read on to learn more about our speakers’ secrets to success in China, and how they overcame their China market challenges and made the most of the opportunities the market has to offer:

“You can run but you can’t hide from the enormity of the China market, and the incredible opportunities it can bring. A glimpse into this super fast-paced market will change any pre-conceived perceptions and bring no doubt that this is where it is all at.

As the world’s second-largest beauty market, soon to be the first, China has played a crucial part in ARgENTUM’s global growth.

Doing business with China can be daunting at first but once you are immersed, it will inform what you do in the rest of the world. Don’t get left behind!”

Joy Isaacs, Founder & CEO, ARgENTUM Apothecary

“The mix of China’s ancient and modern, traditional and innovative, mean it’s truly intoxicating for any foreign brand with ambitions to enter, grow and win customers.

It is not enough to only embrace the China of digital nomads — brands also need to appreciate and respect China’s past. Disregarding any one of China’s many facets can leave brands in danger of committing a cultural faux pas.

Thus, it is not only the size of the China prize that merits the effort, but also the incredible opportunity to learn and innovate.”

Antoaneta Becker, Director, Consumer Economy, CBBC

“Fortnum & Mason has become synonymous worldwide with extraordinary food, joy-giving things, unforgettable experiences and exceptional service.

We are constantly creating more opportunities to connect with Chinese consumers.

With the recent shifts in consumer behaviour placing more value on brand experiences, lifestyle sharing and sustainability, we are excited to bring more authentic and engaging experiences to our Chinese consumers.”

Carmen Chiu, Regional Managing Director, APAC, Fortnum & Mason

“Should we look to China for future growth and opportunities in the luxury sector? The answer is — without a doubt — yes.

I am confident in the continued growth potential for China’s luxury industry. Coupled with a strong economic foundation, China’s luxury market is fuelled by robust demand amongst millennials and Gen Z.

Young consumers continue to have a curiosity and an appetite for premium and luxury experiences and products, however the industry is more competitive and crowded than ever.

China’s unique digital ecosystem presents challenges for foreign brands. It’s expensive and noisy. Building a brand in China takes commitment, focus and resources.”

Chloe Reuter, Founding Partner, Gusto Luxe and Founding Partner & Vice Chair, Gusto Collective

“China is a market that no business can afford to ignore, not only because of the sheer size of the customer base, but also because of the consumers’ ever-growing, insatiable appetite for new, innovative and trending products from all over the world, especially Europe and UK.

Advertising, such as live streaming, is considered a form of entertainment that draws in millions and holds attention for hours. This level of consumerism is simply unparalleled anywhere else in the world.

Yes, it has many challenges and obstacles, but the size of the prize makes it all worthwhile.”

Jake Xu, Co-founder, Shakeup Cosmetics

“Chinese consumers are unable to travel overseas due to Covid, but there is still great demand for international brands, especially in the health and wellness sector.

In order to make the most of the China opportunity, it’s important to highlight both the cultural significance of Holland & Barrett as a British brand, and localise our branding for the Chinese market.

Adapting our brand message to the trends that influence young Chinese consumers enables them to resonate with Holland & Barrett.”

Joanna Zhou, China Manager, Holland & Barrett

“In our experience, brand collaborations and being truly flexible with your IP is one of the hardest trends to accept for foreign businesses in the China market.

Despite this, the opportunities in China are exciting and endless; a partnership with an historic museum could be just as relevant as a trending children’s TV show.

Brand collaboration is now the main method of acquiring new audiences for many market leaders.”

Andrew Atkinson, Director of Insights & Research, China Skinny

“Through working with partners to develop commercial and cultural activities in China, the British Library is not only able to generate income while marking our intellectual heritage accessible to Chinese audiences of all ages, we have also learned to appreciate our collections through a different lens inspired by Chinese consumers’ energy, creativity and imagination.”

Kai-Chuan Chao, Cultural & Commercial Partnerships, East Asia Lead, The British Library

For further enquiries related to China Consumer 2022 or CBBC’s work in the consumer sector, please contact Antoaneta Becker at Antoaneta.Becker@cbbc.org

The post Why British brands should make the most of the China opportunity 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.

The event was composed of dedicated panel discussions as well as tailored breakout sessions, and offered cutting-edge insights and actionable takeaways for UK consumer brands in attendance, no matter what stage they were at on their China journey.

The day started with CBBC’s Chief Executive, Andrew Seaton offering introductory remarks on China’s retail landscape. Soon to be the biggest importer in the world and with a middle class that is set to double to over 600 million people by 2030, China, he said, is an economy that UK businesses cannot afford to ignore. “With a high propensity to consume and a booming digital market, China has the power to transform businesses, and success with China means jobs and prosperity across the UK.”

Antoaneta Becker, CBBC’s Director of Consumer Economy and organiser of the Conference, introduced the day’s sessions explaining that the last two years had seen changes in China that have caused people to question the liberalisation and opening-up of the country. Closed borders, government focus on domestic consumption and domestic tourism, the ongoing zero-Covid policy, and the repatriation of luxury spending have made the China market landscape more complex for British businesses.

Furthermore, the Chinese Government’s promotion of the Dual Circulation policy to boost domestic production and consumption and the Common Prosperity policy to even the gap between the wealthy urban population and the rural poor and redistribute wealth has been manifested in crackdowns on private education, the consumer Internet, Big tech and the gaming industry.

However, frequent lockdowns that saw people in China spend extended periods of time at home have only served to accelerate a digital transformation with China leapfrogging the UK when it comes to smart retail, social selling and creating full digital retail experiences.

The future of China retail is now

One of the main themes that kept being raised throughout the Conference was China’s digital advancement and the potential of digital retail and the metaverse: concepts that all British businesses planning to enter China should be fully aware of. Jeff Astle, Managing Director, Shanghai of APCO Worldwide, said that China was five years ahead of the UK when it comes to its digital economy.

It is also a myth, said Simon Boyd, Advisor to CurrentBody, that older people in China are not tech-savvy. The WeChat ecosystem means that people of all ages shop, pay their bills and bank online via their mobile phone.

Jeff Astle said that whilst many companies are pulling out of China for various geo-political, logistical, or Covid-related reasons, now is the time to stand out. “Are you committed and willing to show your value to that market?” he asked, stating that brands that show they are invested in China and Chinese society for the long term will see the benefits compared to companies who are regarded as only being in China for short-term profits.

The common prosperity policy encourages all companies – including foreign companies – to do good and to give back, whether that is through training such as Harrod’s mentorship programme or through environmental or social programmes that showcase a commitment to Chinese society. As Carmen Chiu, Regional Managing Director, APAC of Fortnum and Mason pointed out, companies that fail to prove their credentials will get called out by Gen Z consumers who take to social media to criticise or champion products and brands.

The “Meet China’s Consumer Tribes: From mainstream shoppers to counter-culture communities” panel discussion

An optimistic outlook

Although China’s zero-Covid policy and prolonged periods of lockdowns have led to an economic slump, Tom Duke, Deputy HM Trade Commissioner, DIT from the British Embassy Beijing, predicted a bounce back in the coming months, with a growth phase ahead.

Overall, Tom Duke, like most of the speakers, had an optimistic outlook for China over the medium to long-term. By 2030, China’s high-income bracket (those earning more than USD 40,000) will be higher than the entire APAC region, including India, Australia, and Southeast Asia, he said. He went on to explain that at this level, consumers look more at the quality, safety and environmental or social impact of products.

This shift towards a focus on products that meet the higher sustainability and safety expectations of consumers will be the dominant trend not just regionally but globally. This was echoed by global retail leader Gillian Drakeford MBE in an afternoon breakout session on the differences between consumers in the UK and China.

“The Chinese consumer is passionate about ESG (Environment, Sustainability and Governance). It is very different today to a decade ago,” Gillian Drakeford said. Chinese consumers have shifted from a focus on price to a focus on safety, and now they are gradually putting bigger demands on visibility and traceability, she emphasised.

There has also been a recent wave of China Chic – known in China as guochao – a movement that celebrates Chinese heritage, nostalgia, pride, confidence, and experience, said CBBC’s Antoaneta Becker.

Finding your niche with Influencer marketing

Another noticeable trend mentioned many times throughout the conference was the impact of Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) and how to work with them across an increasingly complex e-commerce and social commerce landscape.

Experts including Andrew Atkinson of China Skinny and Mark Bellamy of Aiken Digital spoke alongside CBBC’s Retail and E-Commerce Sector Lead, Pearl Zhu about the wide variety of platforms, their pros and cons, and how they serve different needs for different companies and consumers.

Finding the right platform for the right business, they all agreed, was essential. Many speakers touched on the fact that China is no longer cheap and investing in multiple platforms can be expensive if you want to break through the noise created by so many brands. Therefore, finding the right platform for the right company is the way forward.

As Simon Boyd noted, it’s ok to “find a niche within a niche within in a niche” and focus on that – as that niche opportunities may well still have an audience of hundreds of thousands. Spreading your brand thinly across too many platforms and trying to reach all audiences will be expensive and unlikely to lead to success.

“China is not a place where you can go in on a low budget with digital. It is a huge market with huge platforms, so you need a budget to get up in front of consumers and rise up the algorithms,” said Tom Duke.

China has the power to transform businesses, and success with China means jobs and prosperity across the UK. — Andrew Seaton, CBBC Chief Executive

“China is expensive, competitive and not for the faint-hearted,” said Chloe Reuter, Founding Partner of Gusto Luxe. Brands need to focus and understand what is possible, she said. They need a long-term plan.

Reuter explained that by 2025, 50% of luxury spenders will be Chinese. Therefore, it is important to understand Chinese Gen Z consumers, to take inspiration from them, and apply the findings here in the UK. It is not enough to just attempt to sell Western products to Chinese consumers without serious localisation.

Jake Xu, Co-Founder of men’s makeup brand, ShakeUp Cosmetics, pointed out that localisation no longer just means renaming products or adapting these for Chinese tastes; it now means adapting to expectations on speed, quality, customer service and payment processes. As well as using images and video over words and text and using live streaming and KOLs over traditional advertising.

According to Mark Bellamy, brands in the UK struggle to understand how video content produced in China is localised. “It’s very different,” he said.

The “Cutting through the noise: Creative IP brand collaborations and unique marketing strategies that sell in China” panel discussion

Team up to stand out

Localisation and video content strategies were discussed at length in a session on IP sharing and brand collaborations. In China, it would not be uncommon for a luxury brand and fast-food brand or an alcohol brand and a gaming brand to collaborate.

CBBC’s Pearl Zhu said that consumers don’t just want a cross-branded logo on a product – they demand more in-depth collaborations. Kai-Chuan Chao, Head of Cultural and Commercial Partnerships at the British Library, explained how in addition to cross-cultural exhibitions and partnerships, the British Library has also licensed IP to companies including an electric toothbrush company. This is something that would be hard to understand in the UK, she said, but made perfect sense in China.

British supplement brand, Holland & Barrett has over 800 physical stores in the UK but is only selling via cross-border e-commerce into China, explained Joanna Zhou, the company’s China Manager. She observed unique market trends with other brands localising by infusing vitamins and supplements into bubble teas, rather than just selling pills and capsules. And for Holland & Barrett, using KOLs and live streaming events from their UK flagship store in Manchester has proved a big hit: reaching six-digit sales during one event alone.

Innovation, says Simon Boyd, is essential. Brands can’t just rely on their British heritage and expect to remain relevant. It is essential to constantly innovate otherwise local companies will innovate past you. Therefore, it is key to have new products constantly hitting the marketplace. Brands must also find local teams and partners to ensure they are aware of the latest trends and make sure promotions, marketing solutions and products are in line with the demands of local consumers.

Keeping up with China’s changing tech landscape

The metaverse and new technology came up again and again throughout the course of the day, and Ayayi, China’s superstar virtual influencer, was mentioned many times. Joshua Lim, creator of Ayayi, explained that a virtual or programmable influencer can provide immersive experiences that humans can’t, as well as offer reliability to brands. This is particularly relevant after a number of high-profile KOLs and live streamers have been taken offline for committing cultural or political faux pas.

Keeping up with China’s changing tech landscape is something that has become harder for British companies in recent years as fewer people have been able to visit China, so it was useful for delegates to hear more about the various social and e-commerce platforms and how they are used from companies on the ground in China.

For example, Jake Xu explained that he might use Little Red Book (Xiaohongshu) for seeding, i.e., implanting an idea to a wider audience using a KOC, then Douyin for growing awareness of that product to a greater audience, and then Zhihu for garnering opinions on the product, and Tmall for harvesting and converting those viewers into customers. The entire social media system and the use of KOLs in China is completely different from that of the UK.

The future of British brands in China

Over the course of the day, some key takeaways and themes emerged time and again. The importance of digital was one of those, including finding the right platforms, keeping on top of technology and understanding UK-China differences. Live streaming might well be giving way to the metaverse and virtual influencers but, as John Gearing – Vice President & Managing Director, Kontoor Brands Inc., Asia-Pacific – said, don’t be the first to move, make sure that the new technology is really going to take off before investing too much.

The importance of offering social or other non-commercial value to China and its consumers also came up again and again. Nationalism and domestic consumption are rising, with support from the central government, so it is important that brands ensure that their ethics reflect this. It is important to be seen to be doing the right thing for China, the Chinese economy and Chinese society.

This also ties into the increasing demand from Gen Z consumers for brands that are sustainable and can prove their green credentials throughout the supply chain.

But most importantly, the speakers all said that although there might be some short-term dips, consumption will bounce back and British businesses should remain invested in China for the long term so as to capitalise on the country’s growing consumer power.

The second session of China Consumer 2022: Meet the China Buyer and Chinese Influencer and Student Brand Ambassador Focus Groups will be held on 30^th June 2022.

View photos from the Conference here.

For further enquiries about China Consumer 2022 please email CBBC’s Director of Consumer Economy, Antoaneta Becker at Antoaneta.Becker@cbbc.org

To learn more about CBBC’s Membership offer please email Membership@cbbc.org

The post China Consumer 2022: How British Brands can win in China appeared first on Focus - China Britain Business Council.

In the West, consumers often ask for samples prior to purchasing an item to try before they buy, whereas in China brands tend to give out samples only once a shopper has purchased a full-sized product. To Chinese consumers, samples or gifts are no longer a feel-good treat or an unexpected bonus, but instead have grown to become a key selling point driving consumer behaviour and spending.

Chinese consumers who regularly visit official branded stores on Tmall or JD will often expect samples to be full-sized, particularly during major retail events such as the annual Double 11 Shopping Festival (also known as Singles Day). High-end brands will often give away a selection of sample-sized products that add up to the volume of a full-sized product. Chinese shoppers may also rate their shopping experience based on the quality of the sample received. This is similar to the “blind box” phenomenon (where consumers purchase a package from a brand containing unknown contents), where the game-like element of opening the boxes stimulates buyer curiosity, and the unwrapping experience is tailor-made for sharing on social media.

The fact that samples are usually only received after the purchase of a full-sized product has created a thriving market of multi-brand sample stores, the most famous of which is Harmay. According to Jing Daily, Harmay was valued at RMB 500 million in early 2021 and has expanded rapidly in recent years, opening branches in major cities including Beijing, Shanghai and Hangzhou. Shopping at Harmay is somewhat of a ‘blind box’ experience; the store doesn’t necessarily always stock the same products or brands, promoting revisits. This appeals to young consumers who are enthusiastic about discovering new products from international brands but may not have the cash to throw away on products they may not like.

Chinese consumers have literally hundreds of consumption channels at their fingertips, leaving them constantly on the lookout for added-value, experiential spending opportunities 

While beauty samples of all kinds are popular, brands should be careful not to underestimate the sample quantity and design detail demanded by Chinese shoppers, so as not to receive negative feedback and damage to brand reputation. Frequent changes to the type or quality of samples offered can also work against brands and reduce profit margins.

Skipping samples completely is a difficult move to make — even if you are not in the beauty sector — as gifting something extra has become a key marketing tool used to tempt new customers, as well as maintain current customers’ loyalty. So think twice when planning your budget for samples, and consider gifting in a sustainable and innovative way to best connect with your Chinese consumers whilst driving your success in-market.

The post China Consumer 2022: Why is China crazy for beauty samples? appeared first on Focus - China Britain Business Council.