China Market Insights Archives - EuroPass

Digital marketing in China 2019

EuroPass — Mon, 18 Nov 2019 15:48:27 +0000

This blog is to introduce the latest trends and strategies of digital marketing in China, aimed to help the Foreign brands who wish to have a deeper connection with the Chinese market.

Background of Digital marketing in China

In 2016, China released its 13^th five year plan, which emphasizes the development of information technology, innovation, new media, and internet plus.

In 2018, China had more than 800 million internet users (reported by CNNIC) which has increased by 100 million users comparing to 2016. 98% of these 800 million people connect to the internet via mobile devices, enabling China to become the first country of “mobile nation”. With the improving connectivity of the Internet, Chinese consumers are seemingly unable to separate themselves from their mobile phones, brands who what to do marketing in China must focus on digital marketing strategies such as live streaming, KOL marketing, Short video, and personalized content, etc.

1. Installed 44 applications per person on average

According to the 2018 analysis from Google, the global average smart phone user has 26 apps on average, while Chinese consumers download 44 mobile apps.

These important figures imply the increasing distraction of Chinese consumers. Some apps perform better than the others, forcing brands to rebuild their marketing strategies in China. WeChat is the leader of “integrated apps” in China, with monthly active users around 1 billion amounts and with 45 billion messages being sent every day (WeChat reports 2018).

The number of WeChat Official Accounts (Business Accounts) is about 3.5 million and the number is increasing each year.

2. 70% purchases via social media

Thanks to smart phones, people are spending more time on social media and blogs like Sina Weibo, WeChat. It is estimated that 70% of Chinese millennial will buy products or services directly through social media platform. Therefore, the importance of the KOL (celebrity) market in China has grown surprisingly.

The KOLs could be divided mainly into 3 types: Text blog, Celebrity, and influencer. KOLs provide premium contents for specific online audience (potential customers) and deeply impact consumers online. They help brands to increase their awareness by social network and live. We can see that the number of KOL advertisement on Weibo and WeChat is decreasing while brands invest more on KOL. Of course, brands are promised to hire more people and the price of these KOL will therefore increase.

3. Content creativity and returning to the essence

Chinese consumers experienced wide varieties of consumer sectors and consumption after the 70^th anniversary of China’s founding. Gradually, Chinese people are changing their consumption behaviours to pursue the products which meet their new demands: simplified, comfortable, healthy, natural and special. Therefore, the reshaping of the consumption structure, and the pursuit of true consumer satisfaction impacts the whole commerce.

Chinese consumption value is turning from “me in the eyes of others” to “real me”. From the attitude of career to consumption, these changes remind brands to establish a position of emotional resonance with consumers. The creative content must have the ability to be converted to valuable information which could adapt consumer’s lifestyle and value.

4. Fully Empowered AI

With the increasing maturity of artificial intelligence technology. Al has not only entered the lives of consumers, but also entered all industries in China. Al is also a familiar word for digital marketing, nearly 70 percent of advertisers have adopted to AI digital marketing in varying degrees in China.

AI will be like water and air in the future, which penetrates the whole circle in marketing. In the new era of AI, brands will pursuit the creation a joyful atmosphere and experience for users rather than only focusing on the conversion rate, purchase rate, return rate.

5. Integration of Virtual and Reality

The Virtual world is the Internet virtual world, but also real world. Consumers no longer consume simply through online or offline channels, but choose more convenient shopping ways according to their needs. The creation of online and offline atmosphere and brand-cultural experience has become the key to driving consumption.

Therefore, digital marketing needs “co-prosperity”, with powerful explosive force in the online promotion and diffusion force combined with the offline experience and scenes. With offline channels, brands could spread a constant value. With the online channels, brands could use it for contents. (Click here to know about RATP WeChat Solution)

Therefore, the integration of digital marketing in China will be accelerated this year, the marketing campaigns that integrate virtual scene and reality, such as flash store, offline terminal experience, content materialised and other innovative activities will increase.

Before ensure the marketing strategies, brands need to follow these trends and innovate on this basis. With special circumstance, China owns instant messaging app WeChat, Search engine Baidu, e-Commerce platforms Alibaba and JD, these huge platforms are most important Chinese E-commerce sectors and enable brands to reach a large number of channels and consumers to create their unique content and value.

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Alibaba Singles day – The World’s Largest E-commerce Shopping Festival

EuroPass — Tue, 29 Oct 2019 10:38:54 +0000

Alibaba Singles day (Double 11) has become one of the most famous festival in the Chinese e-commerce industry besides Spring Festival, National Day Golden Week. And it’s also a part of the Chinese world-leading e-commerce innovation.

Alibaba Singles Day mainly targets specific the younger generation and perfectly combines the new age subculture with e-commerce campaign. This blog will give you a better appreciation of Alibaba Singles day(double 11) – the world’s largest shopping festival.

Table of content

What is Alibaba Singles day(double 11) Read Now

The revolution of Alibaba singles day (Double 11) Read Now

7 Marketing Strategies of Alibaba Singles day (double 11) Read Now

What is Alibaba Singles day (double 11) ?

Singles day started from online culture of universities also know as ‘bare sticks holiday.’ It started in 1993 at Nanjing University as a day for students to celebrate their singledom. The date 11.11 was chosen as it resembles 4 solitary bare sticks.

“Singles day” reflects the social and cultural psychological of the newer generation of University students who are more relaxed, self-mocking and make fun of their single status, which creates a kind of cultural identity for the newer generations.

On the other side, young people try to create and express differences from the mainstream traditional marriage culture under the social background of the proportion of male and female population not being balanced, large work pressure and money-driven marriage.

All in all, the DNA of singles day originally was to create a festival that could fulfil the young people’s self-satisfaction and experience pleasure and dramatic romance.

There are 4 “ones” in the date, which symbolise the Bachelordoms, this date is also, the commercial opportunities which sits right in the middle of National Day Golden Week (October) and Spring Festival (March). What’s the most important, festival consumption is considered a big part of national consumption in China, and single’s day was just born from these conditions.

The revolution of Alibaba singles day (Double 11)

2009-2013

In 2009, Alibaba started the single’s day promotion champions cooperated with only 27 merchants and created the slogan of “Without male(female) friends, we can still crazily shopping ”.

In 2010, Alibaba converted from “single” concept to “50% off promotion” to find a good reason to target singles and lovers to attend and take part in this festival.

By 2011, taobao’s promotional slogan had changed to “taobao mall online shopping carnival”, and the concept of “singles day” was completely abandoned. This carnival appeared as a banner image on Weibo, with massive online and offline advertising and continuous focus of mass media, so as to launch a nationwide marketed promotion.

In 2012, Alibaba registered a series of trademarks including “double11” and build the brand symbol – Tmall.

In 2013, Tmall held the shopping carnival as normal, and the 350.19 billion yuan transaction volume, proved the great success of this festival. Tmall doesn’t need to guide the huge online consumer group to this event, as singles day has become a beacon for online shopping.

2014-2015

In 2014, Alibaba gathered journalists from all over the world and many major websites opened live for the carnival. The promotion has converted from a discount promotion to a ceremony feast created by Tmall and mass media.

When the time stopped at the midnight, a big screen showed 57.112billion yuan had been taken in sales. Jack Ma, who is the spiritual leader of Tmall, stood in front of this big screen and marvelled at the “power of consumers”. He puts the results down to the actions of ordinary participants and made them share the sense of belonging and achievement.

2014-2015

In 2015, the Tmall reached a new high record with transactions fee exceeded 91.2 billion yuan. Compared with the same period of 2014, the transaction volume increased by 130%, and the order volume of mobile terminal accounted for 74%.

2016-2018

In 2016, Alibaba started the beginning of a new era of online retail. In the first 52 seconds of the 2016 double 11 (singles day) shopping carnival, the turnover exceeded 1 billion yuan and in 6 minutes 58 seconds, the transaction volume exceeded 10 billion yuan (NASDAQ).

The marketing strategy was converted to focus on the live broadcast and other interactive games, such as the popular red envelope, following gifts, sharing studio gift. Star, KOL, live broadcast and checklist played throughout the whole marketing campaign.

In 2017, 167 brands became Tmall double 11 “the hundred-million-yuan club”. Apple held first place, media and millet exceeded 2 billion yuan on the single day. The online consumers came from 225 different countries or areas, and 140 thousand brands have participated in the carnival. The broadcast through mobile phones attracted 45 billion in audiences’ numbers and the final turnover number finished at 168.2 billion.

In 2018, records were broken ever since the first second of 2018’s double 11 and the turnover exceeded 200 billion yuan.

7 Marketing Strategies of Alibaba Singles day (double 11)

1. Hunger marketing

Tmall is good at creating a tense atmosphere. Many stores sell their products in limited quantities and at low prices. They use “panic”, “last X item”, “last XX time” and other hunger marketing tricks.

2. Visual Shock

Tmall strong page visual design effects induces the shopping desire of consumer. Compared with before, Tmall obviously shows more temptation. Subtitles like “50% off” and “time limit” are everywhere in the online stores.

3. Advertising marketing

Tmall’s advertisement sale includes hard and soft advertising. As early as half a month before the carnival, the advertisement has appeared in the major websites, major cities’ subway stations. On the other hand, the double 11 shopping list or double 11 shopping guide are strong temptations for potential customers.

4. Event marketing

Tmall definite the singles date as the crazy shopping festival and made it a tradition.

5. Marketing campaigns

The marketing campaigns like red envelopes, inviting friends following successfully spread double 11 to more potential audiences with the help of strong e-marketing abilities.

6. Reservation sales

Many stores are putting new pre-orders to attract attention and stimulate purchase.

7. Joint Marketing

Through a large number of resources of Alipay and Sina Weibo for joint marketing, Alibaba combine its variety of products as marketing tools.

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