How has the Chinese market evolved in the past five years?
The Chinese market has dived deep into the digital space and marketing (including eCommerce and payment methods) over the past few years. The following are some of the more prominent recent trends in detail.
- The new retail revolution
This term was coined by Alibaba referring to a merging of online and offline stores facilitated by technologies such as digital payments, Wi-Fi, AI, sensors, location-based services, and improved logistics services.
- The sharing economy
Over the past few years, the sharing economy has penetrated the daily lives of the Chinese people. Besides shared cars and bikes, there are other sectors that have potential such as clothes, kitchens, accommodation, power-charging and even travel.
- Short videos
Short videos are witnessing explosive growth in China. People are hooked on short video apps such as Douyin these days and the trend is predicted to grow in tandem with the development of 5G technology. Compared to traditional social media channels, short video platforms provide more vivid and engaging content.
- Big data
Big data can be used for consumer behavior analysis, ad targeting or to provide personalized services. Businesses can obtain in-depth insights by using data-capturing tools and ROI can be easily evaluated. A good example of a platform that uses big data extensively is Taobao. It tracks each user’s searched items, purchasing history, shopping cart items and other useful information so that sellers can get to know their target customers and can even pinpoint the best time of day to launch a campaign.
What should brands in Singapore, Malaysia, and Hong Kong take note of when speaking to Chinese consumers?
- Find your brand’s USP
China is a very competitive market but the good news for brands from these places is that Chinese consumers feel a closer connection with brands from there than they do with Western brands. These places are closer geographically and also share aspects of Chinese and Asian culture. So find your brand’s unique selling point for Chinese consumers and use that as your key message.
- Collaboration
For newly launched brands, it is a good way to enter the Chinese market. Collaborate or do joint promotions with major Chinese brands and platforms. For example, Hong Kong brands can give out e-coupons through Alipay or open a store on Tmall. It’s a good way to raise brand awareness and draw customers.
- Chinese tourists
Singapore, Malaysia, and Hong Kong are top destinations for Chinese travelers so don’t focus only on marketing within China. You can also launch local campaigns aimed at Chinese tourists who are visiting.