Business in China – Marketing China https://marketingtochina.com Smart Tips for Smart Business in China Wed, 26 Jun 2024 14:32:04 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://marketingtochina.com/wp-content/uploads/2021/03/cropped-favicon-gma-rounded-32x32.png Business in China – Marketing China https://marketingtochina.com 32 32 Eight Tips about Chinese Female Customers https://marketingtochina.com/eight-tips-about-chinese-female-customers/ https://marketingtochina.com/eight-tips-about-chinese-female-customers/#comments Tue, 25 Jun 2024 18:29:00 +0000 https://marketingtochina.com/?p=2359 .

In 2024, understanding the evolving preferences and behaviors of Chinese female consumers is crucial for brands aiming to succeed in the market. Here are ten trends to consider for this demographic, along with five critical questions brands should ask to tailor their strategies effectively.

10 Trends Among Chinese Female Consumers in 2024:

  1. Eco-conscious Choices: A growing preference for sustainable and environmentally friendly products, from cosmetics to fashion and beyond.
  2. Premiumization: Willingness to pay more for high-quality, premium products that offer enhanced experiences or superior results.
  3. Digital Savvy Shopping: Greater reliance on digital platforms for shopping, influenced by integrated AR and VR technologies that enhance online shopping experiences.
  4. Personalization: Demand for personalized products and services, from skincare items tailored to specific skin types to customized dietary supplements.
  5. Beauty and Skincare Innovation: Continual interest in the latest beauty trends, including microbiome health, natural ingredients, and scientifically-backed products.
  6. Local Brands Surge: Rising patriotism influencing purchasing decisions, with a marked preference for local over foreign brands, provided they meet quality and luxury standards.
  7. Fitness and Active Lifestyles: Increased participation in fitness and wellness activities, leading to growth in activewear and related health products.
  8. Solo Economic Impact: More single women are making significant economic decisions independently, focusing on their personal and professional growth.
  9. Tech-Integrated Life: Enhanced adoption of technology not just in daily routines but also in managing personal health and financial decisions.
  10. Health and Wellness Focus: Increased interest in products that promote health, well-being, and longevity, such as organic supplements and stress-relief solutions.

5 Questions Brands Should Ask:

  1. Who is our target customer within the Chinese female demographic?
    • Understanding specific segments such as age, income level, and lifestyle can help tailor marketing messages and product offerings.
  2. What are the primary values that influence their purchasing decisions?
    • Are they driven more by sustainability, quality, brand origin, or innovation?
  3. How do they prefer to receive information about products?
    • Determining whether Chinese social media, influencers, traditional media, or other digital platforms are most effective can optimize marketing strategies.
  4. What role does technology play in their shopping experience?
    • Assessing the importance of mobile apps, augmented reality, and online reviews in their purchase process.
  5. How can we create a Specific community around our brand?
    • Considering strategies for building brand loyalty, such as engaging with Chinese female customers on social media, offering memberships or loyalty programs, and providing value through educational content.

By analyzing these trends and considering these questions, brands can develop more effective strategies to connect with and engage Chinese female consumers, ensuring relevance and boosting market performance in 2024.

Analyse of Philip CEO of GMA

Chinese women control the finance in the family

In China, 51.6% of the women control the finance in a family, 44.5% of them negotiate with other members and only 3.9% don’t. In Shanghai which is famous for its henpecked husbands, wives dominate 27% of families and husbands only take up 14%!


It’s been discovered that their consumption focus now is shifting to online consumption. In big cities, 44% of women are getting used to online purchases and the percentage in small cities and towns is 23%.

.1. Online Shopping

Now online shopping has become very popular among Chinese girls and ladies. Among the career ladies, 87.7% surf online frequently. And from the Internet, they can find the same goods as those in shopping malls, but usually half the price. So girls can get what they want and save money at the same time.
And the survey shows that most female online consumers in China like online shopping malls, search engines, and videos.

.2. They like video, make research before buying

According to the DCCI data, video website has become the third source for Chinese female to get information, after searching engine and online shopping mall. With the increasing concern about the video, the value of video marketing also increases.
Chinese, especially females, would like to make the decision after they see the products. As a result, they tend to trust what’s in the video because it not only allows them to see the products but also to hear them.

.

3. Care about Packaging More

It seems very difficult for Chinese girls to be rational in front of something well-packed. Sometimes they can be so crazy that they will neglect the usefulness or price of the product, even including expensive goods like home appliances and clothing. That’s also why Chinese people say “women’s money is easy money”.

Concept of these famous panda shops for example

typical Chinese beauty
Typical Chinese girl

4. Special sense of beauty

Chinese girls have a quite special sense of beauty. For Chinese girls, white and smooth skin is the symbol of beauty. But now, with the spreading over-weight problems, body shape is becoming more and more important for Chinese girls.
As a result, their bags are full of cosmetics that help them become slender and white not like western girls with sunscreen all over their bodies.

5. Impulse buyers

Young girls in China, especially those born after the 1990s, seem to have difficulty holding their consumption. Most of them were spoiled when they were young. So they get used to spending money “generously”.
In another way, they suffer great pressure from the company as well as their parents because everybody pins their hopes on their only kid in the family. And shopping can help them to release the great pressure.
These two reasons both make girls shop less rationally. Many can be their reasons to buy something things such as discounts and star endorsements.

6. Self-centered

Different from the older generation women, today’s Chinese girls are very independent mentally and highly self-centered. It’s also revealed in their consumption, among ladies from 20-30 years old, 56% of them will spend their money first on clothing, perfume, and cosmetics. Only 6% of them will consider family.
This trend has also been reflected in their choice of goods. You will discover that fewer and fewer girls are good at picking gifts for others. On the other hand, more and more of them choose gifts according to their own taste. Maybe it only happens to me and all my friends.

.

7. Brand followers

For most female Chinese, luxury brand means quality + taste + history. There are 62.1% of Chinese females believe that brand products are expensive for their quality and duration.
And Chinese females are also addicted to comparing with others. So they have one more strong reason to buy big luxury brands because it can give them a big plus in comparison.

Little Red Book (Xiaohongshu or RED) is a unique social media and e-commerce platform in China, particularly popular among women. This platform merges lifestyle sharing with product discovery and shopping, making it a dynamic space for female users to explore and buy products based on user-generated content. Here’s a deeper look into Little Red Book:

Little Red Book To target Chinese Ladies

Launched in 2013, Little Red Book quickly became one of China’s fastest-growing social media platforms, with a heavy emphasis on lifestyle, beauty, fashion, and travel. Its core demographic consists predominantly of urban women aged between 18 and 35, who are keen on exploring and purchasing luxury goods, beauty products, and health items.

Unique Features:

  • User-Generated Content: Users create posts and share reviews about their daily lives and various products they use, influencing the buying decisions of their peers.
  • E-commerce Integration: It seamlessly combines social media features with e-commerce capabilities, allowing users to buy products directly through the app.
  • Community Engagement: The platform fosters a strong community feel, with users often looking to the app for recommendations on just about anything—from makeup to meal recipes.
  • Authenticity and Trust: Little Red Book has strict regulations to ensure reviews are genuine, fostering an environment of trust and reliability.
  • International Products: The platform is known for its strong focus on international brands, which attracts users interested in overseas products that may be harder to source locally.

Importance for Brands:

For brands targeting Chinese women, Little Red Book offers a valuable space to build brand presence and loyalty. The platform’s review and recommendation system allows for high levels of user engagement and organic brand promotion through word-of-mouth. Here’s why brands, particularly those in fashion, beauty, and health sectors, find Little Red Book indispensable:

  1. Targeted Marketing: Brands can target their campaigns very precisely thanks to the platform’s rich user data and analytics.
  2. Brand Storytelling: The emphasis on narratives allows brands to tell their stories, connect emotionally with users, and enhance brand identity.
  3. Influencer Collaborations: Collaborating with popular users on the platform can significantly boost brand visibility and credibility.
  4. Direct Feedback: Brands receive immediate and actionable feedback from their target audience, allowing for quick adjustments to products or strategies.
  5. Product Launches: New products can be introduced effectively using tailored marketing strategies based on extensive user behavior data.

Strategy Tips:

  • Engage Authentically: Brands should focus on creating genuine and engaging content that adds value to the community.
  • Monitor Trends: Staying up-to-date with trending topics on the platform can help brands align their products with current user interests.
  • Utilize Visual Content: High-quality images and videos are crucial on Little Red Book, as they increase engagement and appeal more effectively to the audience.

Little Red Book represents a vibrant, trend-sensitive community perfect for brands looking to expand their reach within China, particularly those aiming at the affluent, modern Chinese woman.

8. Easily Influenced

Chinese females are becoming more and more self-centered but not independent. They can be easily influenced by their shopping mates and friends because when they buy something, they will ask the advice from another one. So advice from “another one” is very important for them.
And with popularization, the role of a net friend is also important because female Chinese can be greatly influenced by and trust them, especially those Key Opinion Leaders (KOL) online.

.

Philip (Linkedin add me)

Marketing China

]]>
https://marketingtochina.com/eight-tips-about-chinese-female-customers/feed/ 2
How To Start A Business In China? https://marketingtochina.com/how-to-start-a-business-in-china/ https://marketingtochina.com/how-to-start-a-business-in-china/#respond Tue, 25 Jun 2024 00:25:00 +0000 https://marketingtochina.com/?p=79309 Are you on the precipice of establishing your foreign business in China but feeling a bit overwhelmed by the process? You’re certainly not alone and it’s completely natural to feel this way.

Let’s take a moment to absorb an interesting fact, even amidst the pandemic, foreign direct investment into China soared by 6.2% reaching $149 billion in 2020. Incredible, isn’t it? Having successfully maneuvered through this complex journey myself, I want to make things more comprehensible and manageable for you.

Starting a business in China in 2024 comes with a unique set of opportunities and challenges. Understanding the current trends is crucial for entrepreneurs aiming to penetrate the Chinese market successfully. Here are five key trends to consider when launching a business in China, leveraging platforms like Douyin and Xiaohongshu (RED), and utilizing the influence of KOLs (Key Opinion Leaders):

1. Douyin E-commerce Integration

  • Ecommerce Insight: Douyin, the Chinese counterpart of TikTok, has become not just a social media powerhouse but also a robust e-commerce platform. In 2024, leveraging Douyin’s e-commerce capabilities will be essential. Businesses can use Douyin’s in-app shopping features, which allow users to purchase products directly through the app while watching a video.
  • Implementation Strategy: Create engaging and visually appealing product demonstrations and leverage Douyin’s live streaming feature to host live sales events. This can drive impulse purchases and increase product visibility.

2. Viral Marketing on Xiaohongshu (RED)

  • Trendy: Xiaohongshu (RED) is a platform that blends lifestyle blogging with e-commerce. It is particularly popular for its trustworthy user-generated content and reviews. Going viral on Xiaohongshu can significantly boost brand recognition and credibility.
  • Strategy: Focus on creating high-quality, relatable content that resonates with the lifestyle aspirations of the Chinese audience. Encourage user-generated content and reviews to enhance authenticity and trustworthiness.

3. Utilizing KOLs for Brand Trust

  • Insight: KOLs continue to wield significant influence over consumers’ purchasing decisions. Their endorsement can provide a substantial credibility boost.
  • Implementation Strategy: Partner with KOLs who align with your brand’s values and audience. Develop long-term relationships rather than one-off promotions to build deeper trust and continuity with audiences.

4. Focus on Business best Practices

  • For example, Environmental concerns are increasingly becoming a priority among Chinese consumers. Businesses that adopt sustainable practices are likely to stand out and attract environmentally conscious consumers.
  • Highlight sustainable practices in your business operations. Use eco-friendly materials, reduce carbon footprints, and ensure that these green initiatives are prominently featured in your marketing campaigns on all platforms.

5. Technological Innovations and AI Integration

  • Trend Insight: As China continues to lead in technological innovation, integrating AI into business operations can provide a competitive edge, particularly in industries like retail, manufacturing, and services.
  • Implementation Strategy: Implement AI for personalized customer experiences, predictive analytics, and operational efficiency. Showcase these innovations through your digital platforms to emphasize your brand’s modernity and efficiency.

This article is designed as a step-by-step guide that will make your entry into the dynamic Chinese market much smoother than you might imagine right now! Excited about exploring new avenues toward success in China’s vibrant marketplace? Well then, let’s dive straight into it!

Key Takeaways

  • Choose the right business location in China that aligns with your brand and consider local rules and laws.
  • Select a suitable legal structure for your foreign company in China, such as a foreign-invested enterprise or partnership.
  • Develop a comprehensive business plan by conducting market research to assess viability and make informed decisions.
  • Open bank accounts in China, including an RMB Basic Account and Foreign Currency Capital Account, to simplify financial operations.
  • Protect your intellectual property through audits, classification, business registration, and monitoring for counterfeit goods and infringement.
  • Hire qualified Chinese staff who understand the local market or consider working with a market entry consulting agency.
  • Expand into the Chinese digital market through selling on e-commerce platforms, creating a Chinese website, and promoting on social media.
China foreign direct investment annual inflow 2012-2022

Benefits and Challenges of Starting a Business in China

Doing business in China comes with its own set of benefits. As a young entrepreneur, you’ll see that China supports new ideas, start-ups, new businesses. State aid is not hard to find here. Not just that, financial groups and rules bodies are also keen on helping out local businesses.

This gives Chinese firms an edge over your company from abroad.

Yet, large markets await your work in China too. Expand and grow – there’s enough room for everybody! But as a foreign firm, this might not be easy sailing the whole time. The business scene here has many layers; you have to know what they are before diving in headfirst! Cheating or shady deals aren’t uncommon either so keeping eyes open will serve well when setting up shop over there.

Bumpy rides may come as cultural rifts make their way into everyday dealings between companies and red tape can snag things up sometimes as well.

How to start a start-up

Steps to Start a Business in China for Foreign Companies

To start a business in China as a foreign company, you need to choose a business location, select a legal structure, create a business plan, open a bank account, and protect your intellectual property.

Pick a Business Location

Picking the right place for your business in China is key. It must match your brand well. You can find more help to set up shop if you pick a suitable city and spot. This will also make it easy to get through all the steps to sign up for your business.

You need to know about the rules in cities when you choose one. As an example, some cities may have laws that won’t fit with what you do. Knowing who lives there helps too so you can hire good workers for your business in China.

Choose a Legal Structure

Picking the right legal structure for your business is key. It sets how you’ll work in China. You could set up a foreign-invested enterprise or use the Partnership Enterprise Law. This law lets foreigners invest in partnerships here.

There are many ways to do this, known as investment vehicles. The best one for you links with what you want from your business, so put thought into this! Do all the needed research and ask experts if need be.

This helps make sure you follow all local rules and laws when starting your operations.

Chinese laws

Do not Create a Business Plan

All insitution, will tell you to work on a business plan

What you need is a business model , and have idea of your income and cost to get the viability of your business

Open a Bank Account, easy in China

To start a business in China as a foreign company, one of the important steps is to open a bank account. When establishing your business, you’ll need to open at least two bank accounts: an RMB Basic Account and a Foreign Currency Capital Account.

This is required by law. Opening a bank account in China involves a process that includes pre-application preparations. Having a local bank account can simplify your business operations in China, making it easier for you to manage finances and conduct transactions.

It’s also an obligation for a foreign investor who has foreign-invested enterprises in China. Keep in mind that the procedure for opening a bank account may vary depending on the year, so it’s important to stay updated with the latest requirements and regulations when going through this process.

bank of China

Protect Your Intellectual Property

Protecting your intellectual property will avoid headack in the future 🙂

Foreign companies should have a clear understanding of IP protection and enforcement in China. Register your patents, trademarks, and copyrights with the appropriate authorities to establish legal rights.

Be vigilant against counterfeit goods and infringement by monitoring the market and taking action when necessary.

We have contacts for that Email us

protect you brand in china - Trademark-Office-National-Property-China

Hiring Chinese Staff , complicated

When starting a business in China, one of the most important decisions you’ll make is hiring Chinese staff. The success of your company relies heavily on the quality and expertise of your employees.

This is the most complicated step for me 🙂

It’s crucial to find qualified individuals who understand the local market and can help your business thrive.

Alternative : Working with partner or Agencies

To navigate the complexities of hiring in China, working with a market entry consulting agency can be extremely beneficial.

These agencies have extensive knowledge and experience in entering the Chinese market, and they can provide valuable guidance throughout the recruitment process.

One option for hiring employees in China without establishing a local company is through an Employer of Record service. This allows you to outsource all employment responsibilities to a third-party provider, who will handle payroll, HR administration, compliance, and other legal requirements on your behalf.

PS : we are a Marketing agency 🙂

By leveraging local expertise through a consulting agency and ensuring effective staff hiring practices, you can increase your chances of success in navigating the Chinese market. Remember that recruiting qualified Chinese staff is key to building strong customer relationships, understanding cultural nuances better, and taking advantage of local opportunities.

Hiring Chinese Staff

Crossborder: Consider the Digital Alternative

Expand your business reach by tapping into the vast potential of the Chinese digital market. Sell on popular e-commerce platforms, promote your brand on social media, and protect and grow your online reputation.

Sell on Chinese E-Commerce Platform

Selling on a Chinese E-Commerce platform can be a great way to enter the Chinese market. Here are some steps to consider:

  • Research the different platforms available, such as Tmall Global, JD Worldwide, and Kaola. These platforms have a large customer base and can help you reach Chinese consumers.
Cross border E-commerce sales in china
  • Understand the legal requirements for selling in China. This includes obtaining the necessary licenses and permits, as well as complying with regulations and customs procedures.
  • Create an attractive online store on the platform of your choice. This involves optimizing your product listings with high-quality images and detailed descriptions in both Chinese and English.
  • Consider partnering with a local logistics provider to handle warehousing, packaging, and delivery of your products within China. This will ensure fast and reliable shipping to your customers.
  • Promote your products through targeted marketing campaigns on the platform and other digital channels. Use keywords relevant to your target audience to increase visibility and drive traffic to your store.
tmall cosmetic

Have a Chinese Website for your Brand

Having a Chinese website for your brand is essential if you want to expand your business in China through cross-border e-commerce. It allows you to directly sell your products to Chinese consumers on international e-commerce platforms.

However, building a Chinese website requires careful consideration and is not as simple as in other markets. To launch a .CN Chinese website, it is important to have an established presence in China, such as a subsidiary office or a local partner.

This will help you establish credibility and attract more Chinese customers. Keep in mind that China’s e-commerce market is the largest in the world and has been growing rapidly, so having a Chinese website can greatly benefit your brand’s expansion efforts.

health supplement brands chinese website

Promote on Chinese Social Media

Promoting your business on Chinese social media platforms is a crucial step to reach and engage with Chinese consumers. Here are some effective strategies to consider:

  1. Utilize popular platforms: WeChat and Weibo are widely used in China. Make sure to create accounts on these platforms to connect with your target audience.
  2. Create engaging content: Develop content that resonates with Chinese consumers. Consider cultural differences when crafting your messages and visuals.
  3. Collaborate with influencers: Partnering with influential personalities can help increase brand visibility and credibility. Find influencers who align with your brand values and have a large following.
  4. Run targeted ads: Use targeted advertising options on social media platforms to reach specific demographics, interests, and locations. This will allow you to focus your marketing efforts on the right audience.
  5. Utilize user-generated content (UGC): Encourage users to share their experiences with your brand by incorporating UGC campaigns. This helps build trust and authenticity among potential customers.
  6. Engage with followers: Interact regularly with your followers by responding to comments, messages, and reviews. Show genuine interest in their feedback and address any concerns promptly.
  7. Leverage livestreaming: Livestreaming is extremely popular in China, offering an interactive way to showcase products or demonstrate services in real-time. Consider incorporating livestream sessions into your social media marketing strategy.
A-de-Fussigny

Protect your E-Reputation

Managing and enhancing your online reputation is crucial when doing business in China. With the increasing importance of social media, it’s essential to establish a strong online presence and manage your brand image effectively.

To protect and grow your e-reputation, it’s important to proactively monitor and respond to online reviews. This includes addressing any negative feedback promptly and professionally.

Additionally, make sure that the information about your business online is accurate and up-to-date. By employing reputation management strategies and utilizing tools designed for monitoring, protecting, and building your online reputation, you can ensure that your business maintains a positive image in the digital landscape of China.

case-study_general_DC-real-estate-scaled-1

Launching a Business on Douyin in China: An opportunity in 2024

Douyin, the Chinese version of TikTok, is a Game changer…

I know what you think 😉 BUT it not just a platform for entertainment but a powerhouse for brand marketing and engagement. With over 600 million active daily users, Douyin offers a fertile ground for businesses aiming to penetrate the Chinese market. It combines rich multimedia content creation with the virality of social media, making it an essential tool for brands looking to make an impactful entry into China.

Douyin for New Businesses, what CEOs need to know

1. Video Marketing Dominance: Short-form videos are the heart of Douyin. They provide a dynamic way to showcase products and services, tell brand stories, and engage with users through visually appealing content.

2. Influencer Collaborations: Partnering with KOL – livestreaming on Douyin can significantly amplify your brand’s Turnover. Oh yes, Chinese Influencers with large followings and high engagement rates can introduce your brand to their daily audiences

3. E-commerce : Douyin has seamlessly integrated e-commerce capabilities, allowing users to purchase products directly through the app. 2024 tips… “Launching flash sales,” live demos, and interactive shopping events are powerful strategies to drive conversions directly from your account.

4. User-Generated Content (UGC) Campaigns: Encouraging UGC can increase engagement and brand loyalty. Competitions, challenges, and rewards for user participation can create buzz and foster a community around your brand.

5. Video Content : it is very difficult and cost a bit for Brands. BUT havce a tailoring content is base of Douyin . Good Content that resonates locally can boost relatability and user interest, enhancing overall engagement. Bad content, is a waste of money.

Best Cities for New Brands in China on Douyin

1. Tier 1 Cities (Beijing, Shanghai, Guangzhou, Shenzhen): These cities are tech-savvy and have higher disposable incomes, making them ideal for introducing new and innovative products. Brand receptivity is high, and the potential for viral trends is substantial.

2. Emerging First-Tier Cities (Chengdu, Hangzhou, Wuhan): These cities offer a blend of large, engaged audiences with slightly less competition than the traditional first-tier cities. They are also known for being cultural trendsetters within China.

Best Practices for Lead Generation on Douyin

1. Interactive Video Content: Brands have to create Good content, sorry cheap solution is not working.

2. Lead generation, Clear Call-to-Actions (CTAs): Ensure that each video has a clear CTA, guiding users on what steps to take next — whether it’s visiting a website, joining a mailing list, or checking out a product

3. Use of Douyin’s Advanced Ads : Utilize Douyin’s Best ever native advertising tools such as precise targeting and retargeting capabilities to reach potential customers based on their interests, behaviors, and previous interactions with your content. Douyin ads Works super Well because douyin know your interest.

4. Regular Monitoring and Optimization: Continuously track the performance of your campaigns and tweak your strategies based on data-driven insights. Douyin offers comprehensive analytics that can help refine targeting and improve ROI. We all want ROI 😉

Entering the Chinese Market: need a partner in China?

We can help you

Starting a business in China may seem daunting, but it can be a highly rewarding endeavor with the right guidance. With an annual inflow of foreign direct investment (FDI) to China from 2012 to 2022, the Chinese market continues to be a hotspot for global entrepreneurs.

At our agency, we offer 20 years of invaluable experience in this field, making us your trusted partner in navigating the intricacies of the Chinese business landscape. If you’re considering tapping into this lucrative market – we’re here to help.

From selecting the optimal location for your venture to safeguarding your intellectual property, we provide comprehensive support and insights at every step. By understanding the unique dynamics of the Chinese market and establishing fruitful local partnerships, you can not only overcome challenges but also seize the abundant opportunities it offers.

With determination and adaptability, you can flourish in this dynamic and ever-evolving business environment. So, take that leap of faith and embark on your journey towards entrepreneurial success in China. Contact us today, and let’s embark on this exciting venture together!

LEAD-GEN-CASE-STUDIES-GMA
]]>
https://marketingtochina.com/how-to-start-a-business-in-china/feed/ 0
Douyin, the best tool for Fundraising in China https://marketingtochina.com/douyin-the-best-tool-for-fundraising-in-china/ https://marketingtochina.com/douyin-the-best-tool-for-fundraising-in-china/#comments Thu, 20 Jun 2024 11:47:06 +0000 https://marketingtochina.com/?p=80316

Hey fellow startup enthusiasts! If you’re looking to dive into the Chinese market, let’s talk” Douyin” – the powerhouse platform where trends are made, and brands are launched. It’s not just a place for dance videos and challenges; it’s a launchpad for innovative marketing and consumer engagement, tailor-made for dynamic startups like yours. (https://www.douyin.com/)

7 Trends and Data Points on Douyin in 2024

  1. Explosive User Growth: Douyin now boasts over 600 million daily active users, making it a fertile ground for reaching a massive audience quickly.
  2. E-Commerce Integration: The seamless e-commerce functionalities allow users to purchase products directly through the app, turning viewers into buyers instantaneously.
  3. AI-driven Personalization: Advanced algorithms tailor content to user preferences, so your startup’s content gets shown to those most likely to engage.
  4. Augmented Reality (AR) Creations: Douyin is pushing the boundaries with AR filters and effects, creating more interactive and immersive user experiences.
  5. Influencer Collaborations: The platform is ripe with influencer partnerships, making it easier for startups to amplify their reach through established voices.
  6. Local and Hyper-Local Content: There’s a growing trend towards localizing content, so if you’re targeting specific cities or regions, Douyin’s tools can pinpoint your audience.
  7. Content Diversity: While short videos dominate, there’s an increasing appetite for varied content like mini-documentaries and educational series that add value to users’ lives.

Investment and Startup Scene in China in 2024

  1. Government Incentives: The Chinese government is rolling out more incentives for startups, especially in tech-driven sectors like AI, biotech, and green energy, offering everything from tax breaks to research grants.
  2. Venture Capital Surge: VC funding is at an all-time high. More domestic and international VCs are setting up shop in China, looking to fund the next big thing.
  3. R&D Focus: Startups with a strong focus on research and development find a welcoming environment here, with multiple science parks and incubators set up across major cities.
  4. Cross-Border Collaborations: There’s a strong push for international partnerships, making it easier for startups to access global markets and expertise.
  5. Regulatory Improvements: China is streamlining business regulations to make it easier to start and operate a business. This includes faster business registration processes and improved intellectual property protections.

These insights into Douyin and the broader startup ecosystem in China in 2024 paint a vibrant picture of opportunity. Whether you’re looking to launch, expand, or innovate, China’s dynamic market provides a fertile ground for ambitious startups ready to make a Buzz.

Douyin, with its massive and diverse user base, presents a significant opportunity for content creators and businesses to gain visibility and credibility. Here are eight tips to maximize your presence and impact on this vibrant platform:

  1. Leverage Trending Hashtags and Challenges: Jump on trending hashtags and participate in or create your own challenges to grab attention. This not only increases visibility but also aligns your content with what’s currently popular, making it more likely to be viewed and shared.
  2. Create High-Quality, Engaging Content: Quality cannot be overstated on Douyin. Invest in good production values to make your videos stand out. Use clear visuals and audio, and ensure your content is engaging from the first second to capture and hold viewers’ attention.
  3. Encourage Interaction: Start conversations by posing questions or making statements that invite opinions in your videos. This can increase engagement through comments, which boosts your visibility due to the platform’s algorithm favoring highly interactive content.
  4. Use the Right Music: Douyin is heavily influenced by music trends. Utilize popular songs or catchy tunes that are trending on the platform to make your content more relatable and shareable.
  5. Post Regularly at Optimal Times: Consistency is key. Posting regularly keeps your audience engaged and helps maintain visibility. Analyze when your audience is most active on Douyin and schedule your posts to maximize views.
  6. Capitalize on Viewer Insights: Pay close attention to the analytics provided by Douyin. Understand what type of content works best for your audience, and tailor your videos to suit these preferences to keep viewers coming back for more.
  7. Collaborate with Other Creators and Influencers: Partner with other Douyin users who have their own followings. This can expose your content to a broader audience and lend credibility through association with well-known influencers.
  8. Create a Signature Style: Establish a unique style or theme for your content that viewers can easily recognize. This could be a specific format, recurring characters, or a unique editing style. A strong, recognizable personal brand helps build credibility and a loyal following.

By implementing these tips, you can effectively increase both visibility and credibility on Douyin, making the most of the platform’s vast potential for content virality and audience engagement.

Douyin, the base of Business in China?

Douyin, with its massive and diverse 800millions user base, presents a significant opportunity for startups, content creators and all kind of businesses to gain visibility and credibility.

GMA tips to leverage Douyin for Startups – Business

  1. Trending Hashtags Jump on trending hashtags and participate in or create your own challenges to grab attention, #robot #tech etc.
  2. Create High-Quality, Engaging Content: Quality cannot be overstated on Douyin. Invest in good production values to make your videos stand out. Use clear visuals and audio, and ensure your content is engaging from the first second to capture and hold viewers’ attention.
  3. Interaction: Start conversations by posing questions or making statements that invite opinions in your videos. This can increase engagement through comments, which boosts your visibility due to the platform’s algorithm favoring highly interactive content.
  4. Use the Right Music for Chinese audience: Douyin is heavily influenced by music trends. Utilize popular songs or catchy tunes that are trending on the platform to make your content more relatable and shareable.
  5. Regular update : Consistency is key. Posting regularly keeps your audience engaged and helps maintain visibility. Analyze when your audience is most active on Douyin and schedule your posts to maximize views.
  6. Capitalize on Viewer Insights: Pay close attention to the analytics provided by Douyin. Understand what type of content works best for your audience, and tailor your videos to suit these preferences to keep viewers coming back for more.
  7. Collaborate with Other Creators, KOL and Influencers: Partner with other Douyin users who have their own followings. This can expose your content to a broader audience and lend credibility through association with well-known influencers.
  8. Create a Signature Style: Establish a unique style or theme for your content that viewers can easily recognize. This could be a specific format, recurring characters, or a unique editing style. A strong, recognizable personal brand helps build credibility and a loyal following.

By implementing these tips, you can effectively increase both visibility and credibility on Douyin, making the most of the platform’s vast potential for content virality and audience engagement.

Case studies of fundraising in China

Let’s explore how three prominent Chinese companies—Dalian Ex Robot, Xpeng, and Xiaomi—use Douyin (TikTok) for marketing, focusing on their strategies and results, particularly in the context of Xpeng and Xiaomi’s involvement in electric vehicles (EVs).

Dalian Ex Robot

Dalian Ex Robot, known for its innovative robotics solutions, utilizes Douyin to showcase its technology and communicate its advancements:

  • Product Demonstrations: They often post videos demonstrating the capabilities and functionalities of their robots, offering viewers a glimpse into the sophistication of their technology.
  • Behind-the-Scenes Content: By sharing the development and testing phases of their robots, they create transparency and foster trust with their audience.
  • Educational Content: They provide insights into the science behind their robots, which not only educates but also engages tech enthusiasts and potential industry clients.
  • Engagement Campaigns: Interactive campaigns and challenges involving their robots encourage user participation and engagement, making their content more likely to go viral.

Xpeng

@xpeng_aeroht

The latest XPENG AEROHT flying car X3 (internal code name) is out now. Come check it out! #XPENGAEROHT #FlyingCar #FutureMobility #fyp #CarDesign

♬ original sound – XPENG_AEROHT

Xpeng Motors, a leading player in China’s booming EV market, uses Douyin strategically to boost its brand presence and engage with a tech-savvy audience:

  • Showcasing Innovations: Xpeng posts videos that highlight the unique features of their EVs, such as autonomous driving capabilities, infotainment systems, and innovative software updates.
  • Customer Testimonials and User Stories: Sharing experiences of real users and their journeys with Xpeng vehicles builds credibility and relatability.
  • Participation in Challenges: Engaging in popular Douyin challenges, sometimes creating their own around eco-friendly driving or technology in transportation, helps maintain their relevance and visibility.
  • Results: Through consistent and engaging content on Douyin, Xpeng has managed to enhance its brand visibility among younger consumers, crucial for the EV market, and drive interest in test drives and pre-orders.

Xiaomi

Xiaomi, traditionally known for its smartphones, has also entered the EV market and uses Douyin to generate buzz around its new ventures:

  • Teaser Campaigns: Xiaomi employs teaser videos and sneak peeks of upcoming products to generate interest and buzz. This strategy is particularly effective in building anticipation for new EV launches.
  • Highlighting Technology and Design: Focused content on the technological innovations, design features, and eco-friendly aspects of their EVs appeals to tech enthusiasts and environmentally conscious consumers.
  • Collaborative Influencer Marketing: Partnering with popular Douyin influencers who share or demonstrate the features of Xiaomi EVs helps reach wider audiences.
  • Interactive Formats: Xiaomi uses polls, Q&A sessions, and live streams to directly engage with their followers, answering questions about their EVs, which helps demystify electric vehicle technology for the general public.

By leveraging Douyin’s extensive reach and interactive capabilities, these companies effectively engage with audiences, showcase their products, and build strong brand awareness. Their success on Douyin illustrates the power of combining innovative content with strategic social media marketing to captivate and educate potential customers, particularly in the fast-evolving EV market.

We are a Douyin official agency

]]>
https://marketingtochina.com/douyin-the-best-tool-for-fundraising-in-china/feed/ 1 Guides & Tips for Brands/company Wanting to Enter the Chinese Market nonadult
Find Distributors in China the Easy Way in 2024 https://marketingtochina.com/finding-good-distributors-china-rules-respect/ https://marketingtochina.com/finding-good-distributors-china-rules-respect/#comments Fri, 09 Feb 2024 02:39:39 +0000 https://marketingtochina.com/?p=14907 As companies look to expand their reach into the Chinese market, it’s important to find the right distributor that will be a link between your country and China.

The process of finding a quality Chinese distributor can seem daunting for foreign companies. Indeed, it is another country, another culture, another language.

You do not know who to contact, what a distributor wants, and how Chinese suppliers and companies work…

So read carefully this guide and everything will be easier for you.

Quick Summary

  • Role of Distributors: Chinese distributors act as intermediaries between manufacturers/suppliers and retailers or end consumers, handling sourcing, warehousing, logistics, and marketing.
  • Local Market Knowledge: Distributors have in-depth knowledge of the Chinese market, including consumer preferences and cultural nuances, which is crucial for foreign businesses.
  • Established Networks: They possess established networks with retailers, wholesalers, and e-commerce platforms, offering access to a wide distribution network.
  • Regulatory Compliance: Distributors assist in navigating China’s complex regulatory landscape, ensuring compliance with local regulations.
  • Logistical Efficiency: They manage supply chain aspects like warehousing and transportation, ensuring efficient operations and timely product delivery.
  • Market Insights: Distributors provide insights into market trends, consumer behavior, and competitive dynamics.
  • Brand Visibility: Working with distributors can enhance brand visibility and secure prime shelf space or online exposure.
  • Risk Mitigation: They offer market entry strategies and guidance on pricing, marketing, and promotional activities.
  • Cultural and Language Bridge: Distributors help in bridging the language and cultural gap, assisting in localization and effective communication.
  • After-sales Support: They often provide after-sales services, which helps in maintaining customer satisfaction and loyalty.
  • Challenges with Distributors: Foreign companies often face challenges in understanding the expectations and operational methods of Chinese distributors.
  • Profit Focus: Distributors primarily focus on profit and may not assist in brand promotion or go the extra mile for a specific product.
  • Market Responsiveness: Distributors may quickly switch to other products if they perceive a decrease in market interest for a particular brand.
  • Importance of Marketing: Companies need to manage their own marketing and commerce to make their products appealing to distributors.
  • Building a Distribution Network: Establishing a trusted distribution network and understanding the Chinese market is crucial for long-term success.
  • Digital Presence: Having a Chinese-friendly website and a strong presence on social media platforms like WeChat, Xiaohongshu, Weibo, and Zhihu is essential.
  • E-reputation: Building an e-reputation and engaging the audience in product awareness is key to attracting distributors and consumers.
  • Baidu Platform: Utilizing Baidu for SEO and SEM is effective for increasing online visibility and reputation.
  • Tmall B2D Platform: Tmall B2D connects brands with over 85,000 Chinese distributors, offering services like logistics management and secure payments.
  • Government Sales Channels: Selling to the Chinese government is an option, requiring an understanding of the distribution infrastructure and sales channels.
  • Agency Assistance: Agencies like GMA can assist in the process of finding reliable distributors and enhancing product visibility in China.

Why it’s worth working with distributors in the Chinese market?

Chinese distributors serve as intermediaries between manufacturers or suppliers and retailers or end consumers in the Chinese market. They leverage their extensive networks and relationships with key market players to handle various aspects of the supply chain, including sourcing, warehousing, logistics, inventory management, payment and shipping terms, and marketing.

Manufacturers sell products to distributors at wholesale prices, and distributors store the inventory in their warehouses, ensuring timely delivery to retailers or end consumers. Distributors provide valuable services such as market research, marketing support, and after-sales services, helping manufacturers navigate the regulatory landscape, understand consumer preferences, and expand their market reach.

Benefits of working with Chinese distributors

Benefits of working with Chinese distributors

Through their expertise, logistics capabilities, and established networks, Chinese distributors play a crucial role in facilitating market entry and ensuring the efficient distribution of products in China.

Here’s a list of reasons why it’s worth working with distributors in the Chinese market:

Local Market Knowledge

China distributors have a deep understanding of the Chinese market, including consumer preferences, purchasing habits, and cultural nuances. Their local expertise can help businesses tailor their products or services to effectively meet the needs and preferences of Chinese consumers.

Established Networks

Distributors typically have well-established networks of retailers, wholesalers, Chinese companies, and e-commerce platforms in China. Partnering with a distributor allows businesses to leverage these existing relationships, gaining access to a wide distribution network and expanding their market reach.

Guanxi in China

Regulatory Compliance

Navigating the regulatory landscape in China can be complex for foreign businesses. Distributors can provide valuable guidance and assistance in ensuring compliance with local regulations, licenses, and certifications, saving businesses time and resources.

Logistical Efficiency

Distributors handle various aspects of the supply chain, including warehousing, transportation, and inventory management. By partnering with a Chinese distributor, businesses can benefit from their established logistics infrastructure, streamlining operations and ensuring timely delivery of products to customers.

Market Insights

China distributors have their finger on the pulse of the market and can provide valuable insights into market trends, consumer behavior, and competitive dynamics. This information enables businesses to make informed decisions and adapt their strategies to effectively compete in the Chinese market.

Brand Visibility

Distributors often have strong relationships with retailers, e-commerce platforms, and other key market players. Partnering with a distributor can enhance brand visibility and increase the chances of securing prime shelf space or online exposure, boosting brand recognition and sales.

Risk Mitigation

China’s vast geography and diverse consumer preferences pose challenges for businesses entering the market. Distributors can help mitigate risks by providing market entry strategies, conducting market research, and offering guidance on pricing, marketing, and promotional activities.

Local Language and Cultural Understanding

Distributors can bridge the Chinese language and cultural gap between businesses and Chinese consumers. They can assist with translation, localization, and cultural adaptation of marketing materials, ensuring effective communication and resonating with the target audience.

After-sales Support

Distributors often provide after-sales support, including customer service, warranty management, and product repairs. This helps businesses maintain customer satisfaction and loyalty, leading to repeat purchases and a positive brand reputation.

Overall, collaborating with distributors in the Chinese market offers businesses numerous advantages. These partnerships can be instrumental in achieving success and growth in the dynamic and highly competitive Chinese market.

What to know before looking for Chinese distributors

Although there are many advantages to working with China distributors, it’s not always easy. Many foreign companies look for distributors and then get disappointed because they expect more from a Chinese supplier or a distributor than the person is willing to offer. This is why it’s important to know some of the China distribution basis before looking for your perfect fit.

You need to remember, that distributors focus on gaining profit

Companies will not get any help from China distributors to promote their brands: they will typically focus only on distribution and sales. If Chinese customers do not like the company’s products anymore, local distributors will not care and will take them off their shelves, replacing them with similar items from other retailers. 

In addition, distributors have so many opportunities to sell other kinds of products from multiple companies in many distribution channels: they do not need to promote your business or go the extra mile since they can choose another product whenever they wish.

Chinese distributors: shop distribution

Don’t put all your cards on China distributors

As we said before, distribution companies really do not care about your products, even if they have been taking care of your sales for years. If your brand has some troubles with the supply chain, logistics, the latest economic reforms, business development, resources, risk management, marketing etc., they will switch straight away to another brand with similar products. Most businesses only want to buy products that have big potential in the Chinese market and get benefits out of selling them to the final destination. 

In order to get China distribution on board, you need to show them that your product gets the interest of people and in order to do that, you have to manage your own marketing and commerce side. 

Build a trusted China distribution network

Having a trusted China distribution network and supply chain system and knowing how to approach problems when setting them up in China is essential to long-term success in the Chinese market.

While having a good distribution network is neglected by most businesses, choosing the right distribution channels and not failing your entry into China by choosing the wrong partners should be your main focus in terms of business development. Well-functioning distribution systems are key to success for all international businesses. 

Win the audience on all China distribution channels

Chinese people, both from rural areas and urban areas need to discover your products and make their own opinion about them. Only after this, they will buy them, and your retail sales will rocket. It is the perfect way for companies to communicate about their product and brand, convince them, and keep them updated.

They want to know every detail of every product (especially when it comes to cosmetics and fashion accessories) and they do not want to miss any promotion or offer. Consequently, do not hesitate to advertise your products with photos and videos on social networks such as WeChat or on other internet sites and e-commerce platforms like Taobao, Tmall, and JD.com for instance.

How to find reliable Chinese distributors?

In order to find reliable local distributors for any industry, it is important to:

  • Have a Chinese-friendly website, hosted in China or near (so your content will be uploaded quickly); Although really often a foreign investment in China is big, a lot of international businesses forget, that a well-done Chinese website is a must;
  • Be present on social media, such as WeChat, Xiaohongshu, Weibo, and Zhihu in order to build a good relationship with distributors and traditional retailers, communicate with them, and listen to their expectations and what they really need;
  • Build an e-reputation and set an example in the industry;
  • Engage your audience in your products awareness, observe the trends, and control every process related to them
  • The website must also be adaptable to mobile phones because Chinese people mainly operate on phones to surf the Internet. Check our Vitabiotics website optimized for mobile phones here:
health supplement brands chinese website

Distributors must be able to find you easily on the Internet

Nowadays all trading companies willing to enter the Chinese market must be able to understand how the Chinese buy and which e-commerce platforms are their favorites if they want to be successful.

Understanding the preferences and mindset of consumer groups in all Chinese cities is crucial to a successfully established brand in the Middle Kingdom for any industry and here are the key points to better understand it.

The Internet is the main source of information for a total number of more than 1 billion Internet users, so don’t neglect this source, if you want your company to succeed. 

Baidu Seo Balance Australian Water

Any Chinese distributor or consumer must be able to find you on Baidu, the Chinese most used search engine, with 70% of queries and more than one billion mobile active users. If you want to sell locally, this is where you need to be.

Use the Baidu platform in all its forms because Baidu clearly rewards those who use the platform, from Baike (Baidu Wikipedia) to Baidu Zhidao (Q&A website), to its social network Baidu Tieba (keyword-based discussion forum), Baidu Shopping or Baidu video platforms.

Australian water brand distribution case study in china

Combine SEO & SEM: To achieve success in Baidu marketing campaigns, it is very effective to create a strategy that combines SEO and SEM, as both have a very significant weight in the visibility results attributed to the algorithm of the platform. Through SEM it is possible to sponsor sites with targeted campaigns.

In this way, your brand’s site will get a better online reputation, an increase in visitors, and of course a higher market return. If you rank high, it’s possible that other internet sites from the industry, even Chinese ones, will add external links to your website as a reference.

Work on your social media presence to increase visibility and gain e-reputation

Although having a website and working on Baidu SEO is important, as a Chinese website works as a hallmark of your company and a contact point for local distributors and Chinese consumers, social media platforms are where the majority of Chinese Internet users learn about companies and look for consumer goods and luxury goods from overseas companies.

WeChat

WeChat can be seen as an email & community management marketing tool. But this is far from the truth, as it’s mainly a social e-commerce platform providing a wide range of services for all kinds of businesses. 

When it comes to the best tools that will help you find distributors interested in importing products from you, we would name WeChat brochure, official accounts, and group marketing.

WeChat brochure

WeChat brochure helps you show off your product in a beautifully designed H5. Light and easy to share, they are ideal for your product listing and reaching out to distributors. For example, when joining Food Fair (eg. Canton fair) or other trade shows, having a QR code that allows people to access your WeChat Brochure is a must and tells much about your understanding of the culture to a potential partner.

Those brochures are very easy to share and highly interactive, making them a perfect tool to show the potential partner or distribution companies that you understand the market. Those cost-effective mini-apps are a great alternative to PDF documents, as PDFs are not interactive and load longer.

H5 for GMA customer Scapa, a French wine group
H5 for GMA customer Scapa, a French wine group
WeChat Official Account:

The equivalent of email marketing but with more advanced options. You can share your content 4 times a month to neuter your follower. But you can also set up a menu to guide your followers and create a mini-program to entertain or facilitate taking actions such as buying your products.

WeChat group marketing:

Wechat groups are an effective way to grow your presence on WeChat. WeChat is rather a close social media, so joining and managing as many groups as possible is the most cost-efficient way for you to gain followers and control any ongoing marketing process there. 

Zhihu to build your e-reputation

Zhihu is the most popular social Q&A platform among Chinese apps. To make a comparison we can define it as the Chinese parallel service of Yahoo Answers and Quora. Its success is based on the authority of the content published by its users.

Zhihu marketing

What makes it an interesting app for brands is first of all its audience, made up of educated users with high purchasing power that like to search for recommendations before buying a product. Furthermore, in terms of SEO optimization, it must be taken into account that the keywords searched on search engines such as Baidu and Sogou are always linked to Zhihu, so by entering Baidu, you also gain control over the audience on Zhihu. 

The app can therefore be used for lead generation, content marketing, KOL marketing (thanks to the top contributors, considered particularly reliable) and to build your e-reputation.

PR and Forums to create word-of-mouth and brand credibility

PR is one of the most cost-effective solutions for any business. It is a basic of marketing where the right people talk about you. PR is a good way to build your credibility.

In China, recommendations mostly come from locals because Chinese people mostly trust Chinese netizens. Word of mouth is the key, that’s why it is important to be present on Chinese forums if you want to boost your sales.

Complete your PR efforts and strengthen your credibility using forums (like Baidu Tieba) and KOLs to talk about you. Although the phenomenon of influencers is gaining popularity around the world, the country leveraging this aspect the most is definitely the Middle Kingdom.

KOLs and communities are powerful and widely listen to the Chinese internet, in fact, their opinion matters the most. Most young Chinese people nowadays search for recommendations from their favorite Key Opinion Leaders. 

KOL marketing

Tmall B2D for foreign investment in the Chinese market

Tmall B2D is a platform where you can connect with 85,000 Chinese distributors. Tmall B2D gives brands great visibility in the current market. It helps to:

  • connect brands and 85000 distributors
  • manage service, minimum sales quota, minimum order quantity, supply chains, and logistics
  • manage distribution to the final destination and quality control
  • conduct secure payments
  • ensure product quality

Any entrepreneur can choose his distributor on the Tmall app. Quality distributors must have sufficient knowledge of the logistics management involved and be up-to-finding solutions to all problems related to sales. However, it is not easy to choose the right distributor for you when one has no expertise in China distribution and is not even in the country to search for one himself.  

Tmall B2D

In addition, the platform is in Chinese, therefore it is better to be accompanied by professionals in this first step. You can contact us for help!

Selling to the government distribution and sales channels in China

Apart from finding a distributor, according to Chinese law, you can also consider selling to the Chinese government. Last year, the government distribution and sales channels in China were valued at $1.7 trillion dollars with a CAGR growth rate of over 15%. The current market size is huge for both domestic suppliers as well international competitors like Amazon or Walmart who want to get their piece of this pie too!

To successfully sell to the government, primarily you need to have a deep understanding of the distribution infrastructure, sales channels, services, logistics, and supply chain system within the country.

The first step is to identify your target market and which entity or agencies would be most likely to purchase your product or services. Once you have a list of potential customers, you need to research the appropriate contact methods for each of them. In many cases, you will need to go through a state-owned enterprise (SOE) in order to reach the relevant government agency.

GMA Dorcel case study

If you’re looking for reliable Chinese distributors, contact us!

An agency like GMA can help you in all the processes to make your products famous.

We can:

  • Help with Seo, Sem, Content Marketing, Recommendations;
  • Localize your content marketing to attract clients;
  • Provide an H5 WeChat Brochure, which is an electronic brochure that is easy to share on WeChat. It contains the listing of products (in Chinese);
  • Help using Lead Generation, Lead Generation is the set of marketing actions that aim to acquire and generate interesting contacts in any region in China. Drawing up a list of contacts is possible through a careful lead generation strategy, which can use advertising and acquisition tools.
gma

Contact us if you are looking for a distributor in China! We have many reliable distributors in all sectors and we can connect you with the ones most suitable for your brand.

 

 

]]>
https://marketingtochina.com/finding-good-distributors-china-rules-respect/feed/ 52
Market Research in China – Why is it Crucial https://marketingtochina.com/market-research-china/ https://marketingtochina.com/market-research-china/#comments Thu, 23 Nov 2023 12:41:47 +0000 https://marketingtochina.com/?p=2806 Regardless of your industry, if you’re looking to do business in China, market research is essential. Without a clear understanding of who your target audience is and what they want, you’ll quickly find yourself outpaced by local competition. In this post, we’ll take a look at some key considerations when conducting market research in China.

Conduct Market Research in China: Why and How

Market research is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets.

Market research helps you build a market entry strategy with:

  • Actionable insights
  • Data collection
  • Market insights (industry trends & key drivers for instance)
  • Understanding the competitive landscape
  • Understanding Chinese Customers
MARKET RESEARCH IN CHINA WHAT GMA DOES FOR YOU

The power of market research lies in the ability to gather and analyze information about consumers, and their needs or desires for products you offer them such as services. This allows businesses like yours access to important data that can be used when making strategic decisions on how best to serve your target audience, while also helping shape future product development plans accordingly.

Furthermore, when entering the Chinese market, conducting market research is a key factor in getting an advantage over competitors. The Chinese market is different from other Western Countries. The only way to get a proper strategy is to research key information to identify and analyze the market need, market size, and competition.

Market Research in China: 4 Steps

market research in china 4 essential steps

Before getting started with your China Market Research, Define Benchmarks

Setting up your benchmark will help you know in which direction you are going and what type of information you need, in other words, it provides context.

Benchmarking your progress is important. This will help you identify areas for improvement and services that are negatively impacting the performance of a business.

Identify the top competitors in your industry. Use their products and services as lenses through which to view how satisfied customers are with you and other companies that compare shopping for similar experiences, such as non-customers or potential new clients. 

This will give a unique perspective on satisfaction levels within this niche market segment of business owners versus those who do not compete directly against them but offer related goods/services.

What is your industry standard in the Chinese market? This helps you understand your position in your industry in the country you are targeting.

Compare yourself to an industry leader in China. Understand what action you can take that are similar to them and why it works. Ask yourself if it could work for you too.

Here are some of the things you can determine about the Chinese market when running market research:

Market Insights

The market research process can help you decide whether a new idea for an industry or product will fly – that is if customers find it appealing. We study how similar products have performed in the marketplace and make recommendations based on those findings. Opportunity for brand growth.

Competitive intelligence

Can give you a competitive edge by giving accurate insights into your business. For example, it will show how well or poorly competitors are doing in comparison to one another so that the strengths of each company become more obvious as well as their weaknesses if any exist!

Competitive analysis is an important part of any business plan. Whether you’re just getting started, moving into a new market, or doing your own health check on the company’s performance

Chinese customers

You can use market research to find out who your customers are and what they might be interested in. If a customer doesn’t want the service or product that you have available, then this is an opportunity for them to tell why not; it could also give insight on how best to reach these individuals so as to offer relevant services/products that will attract more interest from potential buyers

Pricing strategy

The Chinese market is a tough place for businesses, with price competition being pretty tough. As such, it’s important to know how your prices compare and what customers care about most in order to be successful here! Market research should help you set competitive pricing studies as well as an optimization analysis and strategy. 

Market segmentation

The Chinese market is one of the most complex and diverse in the world. Yet it’s also a place where top the minority of customers generate the majority of profit margins-so knowing who you’re serving matters even more than elsewhere! 

You need to segment your customer base by uncovering key groupings, then target those profitable clients with better precision for maximum ROI on resources spent.

Consumers Segmentation

We just saw it, China is a diverse market in terms of geography but also in terms of demographics! 

By dividing markets into smaller groups with similar traits or characteristics, your company will have better insight into what sells among different customer types and be able to make more targeted marketing campaigns that speak directly to them!

The more you understand each segment of your target market, the easier it will be to focus on delivering personalized marketing and building loyal relations with them. 

It’s good market research to get done when your brand has gotten enough awareness in China and you want to work on brand loyalty.

Campaign effectiveness

The goal of a successful campaign is to reach the right people and deliver the desired results. Campaign effectiveness research can help you optimize your marketing campaign, thus selling more, and reducing customer acquisition costs by identifying targeted audiences effectively. 

If you are big in communication and marketing (which you should be when doing business in China, then we strongly recommend you run campaign effectiveness analysis and research.)

In short, It is critical to research information before making any business decisions, especially in the China market where competition from both local and foreign brands are fighting for slices of the cake. China is also tricky for businesses as trends and platforms are evolving constantly and rapidly.

case-study_general_DC-real-estate-scaled-1

Types of market research you can realize when entering China 

There are a few different types of market research you can do when entering the Chinese market. Market research in China includes:

  • Social and opinion research
  • Interpretation of data & information about individuals
  • Study organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision-making

Local research agencies (like ours)  realize “market survey” through well-known quantitative data collection methodologies such as:

  • Consumer research: The process of identifying, understanding, and cataloging consumers’ preferences is called consumer research. It helps brands and businesses create a buyers’ persona, and define consumers’ psychology if you will.
  • Interviews and online surveys will give you a better understanding of who your target customers are and what they want.
    • Consumer satisfaction research: Customer satisfaction is one type of market intelligence that measures how customers feel about the products or services they have purchased, specifically looking at whether those meet expectations; exceed them in some way (whether by being better than expected) but also fail miserably when compared with what was promised.
  • Focus groups: with focus groups you can get deeper insights as the participants are selected based on certain criteria. It’s expensive and can create bias
  • Customers Observation: A member of our team will watch and take notes on everything they do while observing an ideal user interact with their own product (or similar items from competitors). Instead of focus groups, observation is an effective method for getting customer feedback. It’s less expensive and allows you to see people interact with your product in a natural setting without influencing each other

Market Research Types in Short:

You can look at past sales data to get an idea of which products or services are selling well in China and which ones aren’t. You can also survey Chinese consumers to find out what they’re looking for in a product or service and what their preferences are. 

Additionally, you can conduct competitor analysis to see what your competitors are doing in China and how you can differentiate your business from theirs. Lastly, it’s important to have a good understanding of Chinese culture and how it influences consumer behavior so that your marketing efforts are tailored appropriately.

Think Long Term, Set Up Market Monitoring

The Chinese market is somewhat unpredictable. Market trends, organization, and regulations are changing in the blink of an eye and as a business, you should be ready for that. That is why research in China, should not be a one-time thing but rather constant monitoring of the consumers, the industries, technology changes, and so on.

In a country that evolves so rapidly, companies need to focus on keeping up with the pace if they want to grow their sales. This can be achieved through a smart monitoring strategy. In short, brands in China can’t be complaisant, they have to be proactive and ride the changes instead of surviving through them.

How to Make Your Choice Among the Many Market Research Companies in China?

Here are a few questions you can ask yourself when choosing your research services provider in China.

Obvious, but, Is it a China Consulting Firm?

When you’re looking for a market research firm, it’s important that they have familiarity with the area you are targeting and the geographic factors that impact it

Especially true in a market as vast and fragmented as China. Your market entry strategy won’t be the same in China Shanghai or China Changsha 1st tiers cities vs rural areas. You’ll need deeper insights to get started.

Is the market research company you are talking with experienced in your industry? 

Ask for the case studies. Multiple industries have different needs and will be looking for different data. If you evolve in B2B healthcare industries, a consulting firm that specializes in B2C e-commerce may not have the right tool or network to run market research that makes sense for your sector. 

Not only that, but a market research firm that already has extensive experience in your industry, will be able to provide services at a better cost/efficiency ratio.

How much can the market research teams take on, and what is their capacity?

When working with a market research company, it’s important that you consider their ability to manage the size and scope of your project in time. If they don’t have enough experience or expertise on hand for this task then not only may results be impacted but also client satisfaction as well! They may also be working on any project at a time and yours not be a priority. 

Ask for a time scope, and how many people will be dedicated to your market research project.

What market research tool does the firm use? Does it answer your needs?

Your business market entry strategy will be heavily influenced by the results of your market research in China, thus it needs to be adapted to your needs.

Maybe you are already in the market and need to understand Chinese consumer trends and behaviors, maybe you are looking to enter the Chinese market and are more interested in data such as market size, competitor scopes, and pricing habits, or maybe you are developing a new product and need more insights on industry trends and so on. Market research services are broad, discuss with your firm your needs and see what they suggest.

Will my China market research be just data or data + interpretation?

Ideally, you want this market research to give you a breakdown of your sector in China. Ask the consulting firm if they provide actionable insights, maybe through white papers, customer consulting sessions, and so on. Ideally, the firm can provide an analysis and a context that will help your company make a decision in China. 

China Market Research for Laboratoires Boiron – by GMA

For instance, at GMA, we not only run market research but because we are also focused on marketing and communication in China we will give you our interpretation of the data and suggest a marketing and business strategy.

Need to Run Market Research in China for Your Company?

As a consulting firm as well as a marketing agency located in Shanghai, China. We provide you with market research, market insights, and a broad range of services to succeed in mainland China such as e-commerce, online reputation management, social media marketing, and so on.

Furthermore, we provide services to every type of company/brand and adapt our solutions to their industry,  goals in China, and budget.

Likewise, we have extensive experience helping brands enter China and have built a trusted network of collaborators over the years.

In other words, we are a full-service agency with a deep understanding of the China market.

Contact us to make an appointment!

]]>
https://marketingtochina.com/market-research-china/feed/ 3
Legal and Practical Ways to Protect Your Brand in China https://marketingtochina.com/how-to-protect-your-brand-in-china/ https://marketingtochina.com/how-to-protect-your-brand-in-china/#respond Tue, 21 Nov 2023 16:57:25 +0000 https://marketingtochina.com/?p=52686 Being copied is a real problem in China. Arriving on a market and seeing a copy of your product even before launching is not something pleasant. It’s even really frustrating. The Chinese paradox could be described as follow: The fast development of intellectual property law offers legal protections, but a high level of counterfeiting and piracy activities is still prevalent.

Therefore, many businesses are reluctant to face the potential infringement of IP rights and dilution of their brands by expanding into China. In a country where counterfeit, fake brands and fake products are proliferating, startups and foreign businesses will have to invest in risk management measures and trademark protection to operate in the best conditions possible.

In this article, we will see all the steps you can take to protect your brand in China.

Register Your IP in China

Without registering your copyrights, patents, and trademarks in China, your IP has no formal protection here. You have to register an eligible IP as early as possible. Here is the full range of IPs you might file:

Patents

You need to file your application with the State Intellectual Property Office (SIPO) for IP, which they view as valuable for your business for both core and fringe technology. Also, it needs to be properly translated before filing it.

Trademarks

We’ve seen many trademark infringement cases over the years. For brand protection, you need to fill in a trademark application both in Chinese and in English, choosing carefully the product categories and sub-categories if needed.

Check China trademark database (available online) for similar or the same trademark examples filed by competitors and infringers (even in categories outside a company’s core products).

Trademark registration

Copyrights

Copyright registration is not required but you should consider registering your work with the National Copyright Administration as it will provide a public record and can serve as useful evidence in copyright disputes in Chinese courts.

It’s an extra step to protect your brand in China and we advise all brand owners and international companies to use this opportunity.

Patent the Product Idea

The moment you are able to patent your idea, you should do it to protect the intellectual property rights of your company. You should patent your idea in other countries you are going to target. How does this help? Well if your product is duplicated by China, you can prevent such products from being sold in Canada and United States by proving that you own the patent to the product.

Trademark Registration Process on the Chinese Market

To start the trademark registration process, the company must either directly file an application with the China Trade Mark Office (CTMO) or file the application through the World Intellectual Property Organization (WIPO) which acknowledges trademarks registered worldwide.

Do it fast

The trademark registration system in China operates on a first-to-file system, not a first-to-use basis. Therefore, the faster you can register your foreign company, brand names, and logos the better.

Real and fake Durex products

It’s territorial

China has its own jurisdiction. So, as trademarks in China are territorial, to get registered protection you must apply for trademark rights in China mainland, using Chinese characters. For brand protection in Hong Kong, Taiwan, or Macau you’ll need a separate trademark application. And if you’re already registered in the USA or in Europe, well, it will just protect you in the USA or in Europe.

Many foreign companies do a trademark registration process for brand protection only once for China, Hong Kong, Macau, and Taiwan, thinking it’s the same system, and this leads to many trademark violations and infringement claims.

Mind the language

We advise you to develop a Chinese language mark in China and therefore register both the English name and the equivalent Chinese characters as trademarks to avoid wasting time and money on litigation proceedings.

It can be either a literal and phonetic translation of your brand’s name, or a new Chinese name suitable for your brand.

protect you brand in china - Trademark-Office-National-Property-China

For example, when Starbucks entered the Chinese market, the literal translation of its Chinese name was copied by Xingabake, a Chinese coffee brand. Which led the company to juridical actions. Fortunately for them, they won the case and were compensated around $45,000.

Increase your vigilance

You have to be alert for brand infringement. You may have to check on “cybersquatters”, “trademark squatting” or “trademark squatters” or develop a brand monitoring team to monitor your trademark and your domain name registration and check on the internet for unauthorized brand usage.

Registering the trademark in Chinese characters

Foreign companies entering China should be aware that their trademark in Roman characters will not completely protect them against infringement. The same or similar trademark can be registered in Chinese characters by another business, even if it’s only a literal translation. This is also key to a business’s profitability and image in China.

China has a first-to-file Trademark System

It is important for foreign business owners to understand that China is a first-to-file system, meaning whoever can register a trademark under your brand name in China if you have not done so yet. It does not matter whether or not you are the legal owner of the brands elsewhere.

Indeed, China does not recognize international trademarks even for well-known brands. Just because a brand is recognized in another country does not mean that the trademark has legal protection in China. Instead, businesses must take the extra step and register their trademarks in Mainland China before anyone else does. 

Here are some of the many Adidas copies in China

Selecting a trademark in China

Trademarks identify the specific or primary use of a good or service. They help consumers distinguish their companies, products, and services from those of others. Trademarks may consist of words, letters, numbers, devices, shapes, color combinations, or a mix of all of these. 

To register a legal trademark in China, your selected trademark must meet the following criteria:

  • It cannot be the same or similar to the name or flag of a state or international organization 
  • It must be easily distinguishable from the trademark of competitors’ goods and services 
  • It cannot discriminate against a nationality 
  • It cannot promote fraudulent advertising 
  • It cannot provide a functional definition or refer to a technical effect 
  • It must be available for registration

Companies can search for existing trademarks to see if there is a match for what they are considering using for their business.  

Develop a China-Tailored Policy

This tip is not unique to China but it is important to have a policy tailored to the Chinese system. The policy should cover matters like brand conception and design, registration, marketing monitoring (e.g. conflicting marks; counterfeits), record-keeping, licensing, contracts (e.g. distributors; manufacturers), and enforcement.

Human Resources as Your New Best Friend

Brand infringement awareness is quite low among Chinese people. They may not value a brand the same way we do. So, if you have Chinese employees you need to explain to them the value of IP and brand protection and intellectual property rights and show them that the brand is a valuable business asset worth being protected. Educate them about confidentiality requirements and the consequences of IP violations.

You can also grant access to information according to the job title and function of employees. Control their access to sensitive data and equipment/facilities. And when an employee is leaving your company, proceed to exit interviews to recover sensitive materials and remind them of one more time confidentiality obligation.

Counterfeit bags in China

Consider Jurisdiction

If you provide licenses for third parties to use your product or brand, we advise you to include a clause in the license agreement providing a dispute to be dealt with alternative jurisdiction. For this, Hong Kong may be the best choice. It’s faster and more efficient than what you’ll find in China at the moment.

In case of brand infringement, you’ll get two choices:

  • Use the administrative system to enforce your rights without the need to go to court. It’s usually cheaper and quicker. If found guilty, the infringer can be fined and the money earned from its illegal action will be seized.
  • Use the juridical system as you’ll do in other countries. Your company will sue the infringer in court which could lead to damages and injunctions. It will give you flexibility, and speed and reduce the risk of adverse publicity. But it’s more expensive.

Among these two choices, we advise you to start with the administrative process.

Work on Your Branding and Use Your Fame

In China, everything moves fast but the administration system… registering your trademark in China may take a long time, as the trademark application process is very bureaucratic. We’re talking here about 1 to 2 years according to your industry and products. Also, to avoid wasting time and either start operating on the Chinese market or prepare for your future product launch, here is some advice for you.

China is a country focused on brand reputation. Consumers don’t care where you come from and how famous you are abroad. They probably don’t know anything about it, as they have their own internet landscape and therefore don’t use Google, Facebook, Instagram, or any other Western social media.

How to do? Some simple steps:

  • Make yourself visible: build a website in Chinese or open an official account on Weibo and Wechat
  • Develop your reputation: open an official account on WeChat, and make some new posts about your product, your story, and how great you are. Get some followers, comments, and product reviews.
  • Work on your branding!: Work on Chinese social media. For example, you can open a Little Red Book or Douyin account. Make some videos, use KOL or micro-influencers, and promote your brand as much as possible. If you can make a buzz it’s even better. The point here will be to get as many followers as possible, reviews about people buying your product, comments, etc.
  • Make sales: If you have a business license, you can start opening an account on online shopping stores like Douyin (yes, a social media but an online store as well), Tmall, Taobao, etc.

Chinese people mostly buy products that already have some sales. It’s a sign of quality products. Nobody likes to be the first one to buy a product… except your relative maybe. In China, they like two things:

  • Official well-known brands
  • Products that everybody buys

Chinese consumers follow the mass. In short, if everybody knows your brand, they won’t care about your products’ copy. They’ll want to buy the original one, and show it off to everybody. If counterfeiting is a topic that interests you, we talk about its consequences (negatives & positives) more in-depth in this post.

To summarize how to protect your brand in China, you have two main ways to do so that work together: branding and legal actions.

We are GMA, Your Digital Marketing Partner in China

As you can see above, applying for Chinese trademark and IP protection are complicated and take longer. It requires a lot of research and most of the things need to be done in Chinese. There are also a lot of legal nuances to look out for, so it’s definitely not something that can be done in one sitting.

Therefore, we offer you our services. Our experts can help you register your trademark in China after conducting several in-depth research to see if your trademark is available and avoid unnecessary expenses.

We offer brand owners all the necessary help in registering a trademark in China. We can also help you with IP protection and intellectual property protection. We have experience with trademark protections and in-house Chinese professionals, that can go through the whole process in their mother language.

We also offer brand naming services, choosing the best name for your brand in Chinese with the appropriate meaning. If you’re interested in our services or would like to learn more about trademark registration, don’t hesitate to leave us a comment or contact us!

Here are some of our case studies:

]]>
https://marketingtochina.com/how-to-protect-your-brand-in-china/feed/ 0
How to Become a Daigou in China? https://marketingtochina.com/how-to-become-a-daigou-in-china/ https://marketingtochina.com/how-to-become-a-daigou-in-china/#respond Fri, 17 Nov 2023 11:27:19 +0000 https://marketingtochina.com/?p=79802 In the ever-evolving landscape of Chinese retail, the concept of ‘Daigou’ has carved out a significant niche. This practice, where overseas personal shoppers cater to the demands of Chinese consumers for foreign goods, has grown into a vital link in global consumer trade. Often focused on products that are unavailable, more expensive, or perceived as higher quality in China, Daigous has become instrumental in bridging the gap between international brands and the Chinese market.

Their rising influence reflects China’s growing middle class and their appetite for foreign products, making the understanding of Daigou operations essential for brands aiming to connect with this lucrative market.

Who is a Daigou?

Imagine having a personal shopper who lives abroad and sends you cool stuff that you can’t find at home. That’s what Daigous are for many people in China. They are like shopping agents who buy and send products from overseas. People love them because they bring in foreign goods that are hard to find, more authentic, or just better quality than what’s available locally. They’re not just buying things; they’re carefully picking out products that their customers in China really want.

The Hot Items Daigous Buy

So, what are people in China asking their Daigous to buy? A lot of the time, it’s fancy stuff like designer bags and high-end makeup, or things for health and babies. Luxury goods are a big hit because they’re often seen as more genuine and fancy if bought from abroad.

For health supplements and baby products, it’s more about trust and quality – people feel these items are safer and better if they come from overseas. Makeup and skincare from other countries are also super popular, especially brands you can’t get in China.

Who Loves Shopping with Daigous

The people who use Daigous the most in China are usually those who have a bit more money to spend and know a lot about global trends. They’re young, smart with technology, and really think about what they buy. They often check out what’s popular and what other people say about products online.

For these shoppers, a Daigou is not just a shopper but a guide to getting the best from all over the world. Understanding what these customers like and want is super important for Daigous to keep them happy and coming back for more.

Step-by-Step Guide to Becoming a Daigou

1. Finding Your Niche and Knowing What’s In Demand

If you’re thinking about becoming a Daigou, the first step is figuring out what you’re good at buying. Maybe you’re a wizard at finding the coolest sneakers, or you know all about the best skin creams. See what products are hot in China and what people really want to buy from abroad. It’s all about matching what you’re good at with what people are looking for.

2. Getting Your Hands on Products and Keeping Track of Them

Next up, you need to get those products. This means finding reliable places where you can buy them – like stores or online shops in the country you’re in. You also need to keep track of everything you buy and send. It’s like being a treasure hunter and a careful planner all in one. You don’t want to end up with too much stuff that nobody wants, or run out of the things that everyone’s asking for.

3. Making a Splash Online and Sorting Out How You’ll Get Paid

Now, let’s talk about getting noticed and making sales. You’ll need to set up a way to show off the cool stuff you can buy – think Weibo, WeChat, or a little Chinese website. Plus, you need a way to get paid. Setting up safe and easy payment methods favored by Chinese people (namely Alipay and WeChat Pay) is super important. It’s like opening your own little shop on the internet where people can browse and buy.

4. Being Awesome at Customer Service and Listening to Feedback

Lastly, but super importantly, you need to be great at talking to your customers. This means answering their questions, helping them out if they’re not happy, and just being really nice to them. Also, listen to what they say. If they tell you what they like or what they’re not so happy about, it can help you do even better in the future. Think of yourself as a friendly guide in the big world of shopping – you’re there to help and make sure everyone’s happy with what they buy.

Legal and Regulatory Considerations

Chinese Import Laws and Rules

If you’re stepping into the shoes of a Daigou, one of the first things you need to get smart about is China’s import laws. These laws decide what you can and can’t send into China, and how much of it. It’s like knowing the rules of a game – if you don’t know them, you can’t play well. And these rules can change, so you have to keep up-to-date to stay on the right side of the law.

Taxes and Customs

Then, there’s the money part. When you bring goods into China, there are taxes and customs duties to think about. It’s like a fee for your products to enter the country. You need to understand how much this will cost for the different items you’re sending because it can affect your prices and how much your customers have to pay. Doing this right means your business can run smoothly without any tax trouble.

Here is an example of a pre-import license you need to obtain:

International Trade Laws

Lastly, don’t forget the laws of the country where you’re buying your products. Each country has its own rules about selling and exporting goods, especially when it’s on a large scale. It’s like knowing the local customs – what’s okay and what’s not. You need to be sure that buying these products and sending them to China is all good where you are. This way, you avoid any problems with the law, both at home and in China.

Building a Business Model

Creating Connections with Suppliers and Handling Logistics

When you’re starting as a Daigou, one of your first big tasks is to build a network of places and people where you can buy your products. Think of it like making friends in the right places – these friends are your suppliers.

You also need to figure out how to get these products from there to your customers in China, which is all about logistics. This can mean working out shipping methods, times, and costs. It’s like putting together a big puzzle where all the pieces need to fit perfectly to make sure your products travel smoothly from point A to point B.

You can team up with Chinese distributors, who will help with all logistics, but it will be profitable for you only if you work on a bigger scale:

Logistic Distribution

Growing Your Customer Base: Drawing in and Keeping Buyers

Next, you need to attract people who want to buy what you’re selling. This means showing off your products and letting people know why they’re awesome and worth buying. Once you’ve got customers, you’ve got to keep them happy so they come back for more. This could mean offering great service, having a cool loyalty program, or just being super responsive to their needs. Think of your customers like guests at a party – you want to make them feel welcome and give them a good time so they’ll want to come back.

Figuring Out Your Prices and Keeping Your Business Profitable

Finally, you need to get smart with your pricing. This isn’t just about how much you bought something for, but also includes the shipping costs, taxes, and your own profit. You have to find that sweet spot where your prices are good for your customers but also good for your business. It’s a balancing act – like trying to keep all the plates spinning without letting any of them drop. Getting this right means you make enough money to keep your business going and growing.

Marketing and Promotion

Using Social Media and Online Platforms for Marketing

In the world of Daigou, social media and digital platforms are your best friends for marketing. This means using sites like WeChat, Weibo, or Xiaohongshu to show off what you can offer. You can post pictures, share stories about the products, or even do live streams to talk directly to potential customers. It’s like having a digital storefront where people can see and learn about your products from anywhere. The trick is to be active, engaging, and creative to grab people’s attention.

Building Trust and a Good Name in the Market

Trust is a big deal in the Daigou business. You need to show your customers that they can rely on you for genuine products and good service. This can mean sharing customer reviews, providing proof of authenticity for your products, or just being transparent and honest in your dealings. It’s like building a good reputation in a new neighborhood – once people know they can trust you, they’re more likely to do business with you.

Ways to Reach More Customers

To grow your business, you need to reach more people. This can involve different strategies like collaborating with influencers who can talk about your products, offering special deals or promotions, or targeting specific groups who might be interested in what you’re selling. It’s about spreading the word in as many ways and places as you can. Think of it as casting a wide net – the wider you cast, the more customers you’re likely to catch.

We Can Help You Become a Daigou in China!

In the dynamic and lucrative world of Daigou in China, navigating the market effectively demands expertise and a strategic approach. Gentlemen Marketing Agency offers comprehensive solutions and insights to help you establish and grow your Daigou business successfully.

At Gentlemen Marketing Agency, we specialize in:

  • Market Analysis and Strategy Development: We provide in-depth analysis of the Daigou market, helping you identify the right products and niches. Our strategies are tailored to meet the evolving market demands and consumer preferences in China.
  • Digital Marketing and Social Media Expertise: Utilizing our extensive knowledge of Chinese social media platforms like WeChat, Weibo, and others, we help you create impactful marketing campaigns. Our team ensures that your products are showcased effectively to attract and engage a broad customer base.
  • Building Trust and Reputation: We understand the importance of trust in the Daigou market. Our agency assists in developing a trustworthy brand image, leveraging customer reviews, authenticity proofs, and transparent communication strategies.
  • Customer Reach and Engagement Solutions: Our innovative approaches to expanding your customer reach include influencer collaborations, targeted promotions, and personalized engagement tactics. We help you cast a wide net to attract diverse customer groups.
  • Compliance and Legal Guidance: Navigating the legal aspects of the Daigou business can be challenging. We offer guidance on compliance with Chinese import laws, international trade regulations, and tax implications to ensure your business operates smoothly and legally.
  • Logistics and Supply Chain Management: Our expertise extends to managing efficient logistics and supply chains, crucial for the success of a Daigou business. We help streamline your procurement and delivery processes to ensure customer satisfaction.

Partner with Gentlemen Marketing Agency, and leverage our expertise to build a thriving Daigou business in China. Our holistic approach and tailored solutions are designed to navigate the complexities of this market, ensuring your success and growth. Contact us today!

]]>
https://marketingtochina.com/how-to-become-a-daigou-in-china/feed/ 0
20 Best Strategies to Enter the Chinese Market https://marketingtochina.com/20-best-strategies-for-the-china-market/ https://marketingtochina.com/20-best-strategies-for-the-china-market/#comments Tue, 07 Nov 2023 11:08:05 +0000 https://marketingtochina.com/?p=35772 This is one of the hot business topics of our time as the Chinese market becomes (in many sectors) the most lucrative of its kind in the world. With over 400 million middle-class consumers, a GDP growth of 7% year on year & a powerful online eco-system for marketing and sales, China certainly offers a big potential for savvy business.

There is often a lot of conflicting advice when it comes to the China market. Strategy always needs to be tailored on a case-by-case basis so always have that in-depth conversation with several different sources. Today, let’s go through the basics of how to successfully enter the Chinese market.

How to Enter the China Market

Here is our guide with the best strategies (from our experience) to consider when entering the Chinese market:

1. Communication in China is Digital

Out of a population of 1.4 billion people, over one billion Chinese are now connected online.

China boasts the largest online community in the world. On top of this, the web has developed a unique set of conditions. It has been built for the ultra-consumerist society of modern China and it is perfect for online marketing, sales, and branding. All marketing campaigns are almost completely online now, simply because this offers the best exposure, reach, influence, and return on investment.

In the unique digital ecosystem of modern China, you have a lot of Chinese platforms that have been developed to communicate with Chinese users in a very effective way. No Facebook, rather WeChat, No Twitter, Rather Weibo, No Google, Instead Baidu & forget YouTube, time to embrace Youku.

These platforms all have unique characteristics and are very effective in reaching their large and active audiences.

2. Chinese Consumers Research Extensively Online

This is a unique feature of China, the scale of online research. The average user spends more than 30 hours browsing the web per week. The best strategy is to understand where users are searching for information and ensure you are highly visible and reputable in front of your target.

Below you can see some data regarding Chinese social media users. Although apart from social media, Chinese people also go through Baidu, other search engines, and e-commerce platforms, social media is the place where they spend the most time.

The majority of them (99%) use social media for instant messaging and videos (94%), as well as live streams (62%). Other popular activities include payments (86%), shopping (79%), and ordering food (42%).

Chinese social media users

Another source of growth for app usage is live streaming. As of 2023, China -according to CNNIC data- recorded more than 660 million live-streaming users. This does not come as a surprise as apps and platforms such as Douyin, Taobao, Weibo, etc all integrate live-streaming.

The discerning Chinese consumer will research a lot in the marketplace in order to avoid counterfeit products, fake, and lower quality local products.

3. International Brands Are Really Appreciated by Chinese People

It is well known that the China market has issues with counterfeit products, and fake, and lower-quality domestic goods. One vital part of your project is to tap into the positive association the Chinese have when it comes to ‘international’ products. This status helps a foreign brand to stand out from local competitors in terms of quality and reputation.

Chinese consumers, especially younger consumers, the so-called Generation Z, feel attracted to the Western world and love to buy international brands’ products. This is to demonstrate a high social status, a sort of redemption from poverty that has torn the country apart in past centuries.

Below you can see an example from the food sector:

The Chinese luxury goods market is forecast to see strong growth over 2019-2024. The expansion of the market will be driven by growing demand from Millennial and Gen Z consumers and by the growing focus of luxury brands in tailoring their innovation, marketing, and product distribution strategies to these consumer groups.

Traditionally, a significant amount of Chinese luxury purchases were made outside of China, while traveling abroad. However, many Chinese consumers have started shopping domestically in recent years, through offline stores, online stores, and e-commerce platforms.

4. Being Highly Visible On Chinese Keywords

Chinese Keyword Searches are very important in any digital marketing campaign, starting from branding to sales to lead generation. The best approach is to understand deeply the best set of keywords the Chinese are searching for online on search engines such as Baidu, Sogou & 360. Appearing in these platforms will drive qualified traffic to your content that is already searching for relevant information and this will improve sales conversion rates.

5. Create a Quality Chinese Website

Creating a high-quality website is essential. It won’t often be enough just to translate your existing site. This is because Chinese site formats are different and it is best to host it on a Chinese server if possible. If you do so content will be charged more easily and the user experience on your website will be better.

It’s important to develop quality material for your website, optimize the site for the right set of Mandarin Characters and keyword searches, and tailor your message to the specific target audience.

6. Content Needs to Be Tailored and Adapted for the Chinese Market

Communicating with the Chinese implies several considerations. One of these is a cultural distance, which forces brands to rethink their content by aligning it with local ways of thinking.

Content marketing is also important when trying to attract Chinese partners, as by getting closer to Chinese culture and their tastes you can show the brand value and increase the interest of potential partners.

Simply translating existing marketing material is often ineffective. There are so many nuanced and localized ways of expressing information, values, and priorities. It’s best to use a quality team of copywriters to re-adapt and contextualize content, this can even depend on which regions of China you are targeting.

7. Search Engine Ranking on Baidu Seo

Baidu is China’s Google and the largest search engine with over 60% of all online research conducted via this portal. It is incredibly powerful to rank highly in search results. The most qualified traffic can be driven to your site by appearing on the first page and high up the results.

Baidu statistics

To achieve this you need to produce quality content on a frequent basis, be featured in external publications, have other sites backlink & reference you & work on achieving visibility on the best set of targeted Mandarin Chinese keywords.

Backlinks & PR are still some of the most cost-efficient solutions when it comes to building your e-reputation in China and at the same time boosting your website ranking on Baidu. Build Credibility and get more visibility, it is a win-win. PR effort last in time.

8. Pay Per Click Advertising on Baidu

Pay Per Click (PPC) is an effective solution in a market where the Chinese are less wary of ads, the online culture around paid advertising is a more receptive one. PPC is therefore a great strategy for market entry and a way to place your site link at the top of the paid results. On Baidu, ad links are listed according to relevancy, cost of keyword character price, and bidding value.

It is important to ensure both lines of text are optimized, the link is closely managed and traffic/click-through rates are monitored daily. Remember this is China, so traffic can be driven more than in much of the rest of the world.

9. Lead Generation Marketing

Lead generation marketing is a strategy to get potential customers to come to you. With the internet, and businesses looking for information directly online, lead generation has become a powerful tool. With a lead generation strategy, not only you do not have to do cold calls anymore, but you can build your reputation online, let the customers come to you, and do their research before they talk with you. You can educate them with blog posts, videos, etc…

Lead generation marketing works really well in the following sectors:

  • Real Estate
  • Finance
  • B2B
  • Education

10. WeChat, “THE” Powerful Platform

It is a super-app, similar to WhatsApp. WeChat was created by the Chinese giant, Tencent. At its core, it is a messaging app, but it has so much more to offer. No other app in the West is comparable to WeChat. It would rather be a mix of Facebook, Skype, Slack, Amazon, and PayPal. It has 1,3 billion active users every month, more than 1,5 million active brands, and more than 20 million official accounts, and it is used by more than 90% of people 18-40 years old.

The app enables companies to create official accounts to promote their company. Any serious brand needs a WeChat account to look credible. It’s an excellent tool to nurture your following and it’s a good alternative to email marketing that doesn’t work in China.

WeChat Statistics 2023

The key advice with WeChat is to set up an Official Service Account (either third-party hosted or directly with a Chinese business license) and use this to push content. WeChat is a powerful branding tool with a strong culture of following official accounts to remain informed. You, therefore, need to ensure your content is of the utmost quality.

Official accounts can be used to actively drive traffic to external links as well as WeChat stores.

11. WeChat Mini Programs

WeChat mini-programs are hugely successful among Chinese users and continue to have new features. But what is it about? They are nothing more than one of the latest innovations launched by WeChat to increase and make the online experience of its users ever more complete.

They appear as mini-apps within the platform that offer additional services to the user. The peculiarity of mini-programs is that they are not just a new source of entertainment for users. In fact, they also constitute new opportunities for companies to interact with their customers and to sell their products directly.

By linking the mini-programs to the WeChat corporate account, it is possible to engage users for longer and reach them through multiple entry points. This is because the mini-programs are accessible both from the “Search” section and from a drop-down menu above the “Chat” section of the application. Ease of access is a very useful element for those brands that want to stimulate lead generation or site engagement through WeChat.

The mini-programs can be used in various ways: to shop online, access company websites, play games, experience augmented reality, pay for various subscription services, and much more.

A very important feature to expand WeChat’s range of action is that of live streaming. In fact, this is a format that is widespread in China, especially since the outbreak of the Coronavirus emergency. Users can interact with the host through likes and comments. In this way, consumers will receive answers or get information immediately.

12. Branding in China is Everything

The Chinese really do buy brands, not products. To understand this you need to realize the importance of ‘面子(mianzi)’, which means face. That is how the Chinese display themselves to others. In a modern, ultra-consumerist society people now display this through the brands they buy and the lifestyle they choose.

This is why international branding is so effective with a far greater cosmopolitan and international focus in the large urban areas of the east coast.

13. Consider Weibo, ‘China’s Twitter’

Launched by Sina in 2009 it is really a merger between Twitter and Facebook in terms of its functionality. With 143 Fortune 500 companies now on Weibo, this platform is hard to ignore for the role it plays in a comprehensive Chinese marketing strategy. It is very common to use it for live-streaming events, like fashion shows, or viral marketing.

Weibo is a very relevant platform for brands and businesses. The statistics speak for themselves with over 580 million monthly active users. The platform is an ‘open network’, which means users can see posts from anyone else, they do not have to be connected first.

The best advice for Weibo is to keep posts short (within 140 characters) and feature relevant external links. Like Twitter, this is a Micro-Blogging platform and important for keeping your pulse on what’s currently going on in the Chinese digital ecosystem. With users able to see posts from anyone, content can more easily become viral. Buzz marketing is a good tool to build a following and create engagement, but it is also a good place for paid ads.

14. Key Opinion Leaders are Important for Your Market Strategy

Key Opinion Leaders (KOLs) are also a popular conversation topic currently. These are online celebrities with large, impressionable followings in a range of different sectors. KOLs or Influencers have large active followings that can be tapped into by recruiting them to advertise your business or brand.

KOLs or celebrities with large followings come at a price and are not for lower-budget projects. Typically you want to select KOLs with over 100,000 followers but you can choose a variety to create an ‘echo chamber effect. You essentially pay for the post’s exposure.

It’s also important to monitor the comments closely in order to pinpoint user feedback and queries. The Influencer cannot be expected to act as a customer service rep so ensure you are active when it comes to responding and incorporating post-analysis.

KOL marketing has been a powerful marketing tool in China for quite a few years already, but recently a shift from KOL to KOC marketing has been noticed and it is supposed to be one of the marketing trends in the upcoming years.

The position of consumer opinion in marketing has become higher, making KOC more and more important. Why? They are more reliable. They are simple consumers who express their opinions and in a market like China where recommendations and reliability are everything, they have the greatest audience.

Chinese Social Media and Kols - Little Red Book KOCs

15. Don’t Neglect Chinese Forums for Your Market Strategy

A powerful strategy is to tap into the large and active user-to-user groups on Chinese forums. The forum in the West is largely outdated but in China, it’s still powerful due to the strong importance of word of mouth.

Large communities gather on Zhidao, Tieba (Baidu Owned), Zhihu & Tianya our Douban. There are a host of different threads where qualified and targeted conversations can be identified.

The other benefit is that forum posts rank highly on search engines like Baidu, thus contributing to your visibility. In addition, user-to-user feedback and posts are highly influential in a collectivist society. Consumers really care about the feedback from other consumers, this emphasizes the need to control and promote a positive reputation in forums.

16. A New Important Platform for Your Market Strategy is Douyin

TikTok or Douyin in China is one of the hottest apps in China right now. It belongs to the group Bytedance and works in pairs with Toutiao (Chinese buzz feed). Douyin is basically a short video app with more than 750 monthly active users.

The app is the perfect platform for KOLs and Influencers and has recently opened to companies. The app has announced a 020 Feature: Online to offline that will connect physical businesses to online users. Douyin app can be used to display ads ad as well as do buzz marketing. A content app with a lot of potential to advertise your company in many ways.

Douyin users are young. They are what we call Generation Z and are high consumers of short video content. They open the app up to 5 times a day and spend an average of 30 Minutes a day scrolling videos.

17. Live-streaming is Really Important for a Good Strategy in China

Many of the investments initially designed for offline have been moved online. All this with a view to reinventing their marketing strategies and consolidating the relationship with the distant customer (that was especially evident during the COVID-19 pandemic).

To mention a few examples, hundreds of live streams of chefs cooking in their restaurants are now available on Taobao Live. Even if it is not possible to go out to eat, in fact, you can order food at home. It continues with real estate agents offering virtual tours of apartments. Then there are singers who hold online concerts and farmers who show themselves in the act of picking fresh vegetables ready for shipment. It all stems from the recent focus on health and the difficulty of many to find fresh products.

Live streaming in this case is proving to be a real turning point for those producers who have decided to take the leap and try this digital solution.

Live streaming makes everything more interactive and it is linked to the KOL service. The growth of live e-commerce is largely due to its strong appeal to consumers in China’s lower-tier cities.

18. E-Commerce is Not Just About the Biggest Players

E-commerce in China is not just about Tmall and Jd.com, the two largest platforms anymore. For large brands and product launches with significant funding, these are great platforms in terms of the traffic they drive, however, they are not a magic bullet. Even with Tmall and JD exposure, you need to back your store up with a comprehensive marketing strategy on a range of platforms (such as those explored above).

For smaller to medium-sized product launches on smaller platforms such as Little Red BookTaobao Global, and WeChat stores, Pinduoduo is more cost-effective in terms of the initial outlay required. Consider the most intelligent way to invest your budget when it comes to e-commerce exposure and establishing your sales infrastructure in China.

Little Red Book – Xiaohongshu is more than just an e-commerce platform where you can sell your products. It is a review app making it the perfect space for KOL to grow its communities. Consumers use Little Red Book when they are looking for genuine information about a brand or a product. Cosmetics brands especially should consider integrating Little Red Book into their China Marketing efforts.

19. Quality Reporting & Analysis

Feedback from a marketing campaign is vital in tailoring, adapting, and re-orientating the most effective strategies to pursue based on campaign data. All the platforms explored provide acceptable ‘back-end’ systems for data analysis and reporting.

Data is necessary for moving forward and focusing campaigns on the most effective areas in terms of profitability. ROI (Return On Investment) should always be at the forefront of your mind when expanding into China.

20. Focus on one market, China is gigantic

In the past, brands seeking to reach Chinese consumers have generally focused on cosmopolitan consumers in China’s first and sometimes second-tier cities.

However, in recent years, consumption growth in these cities has slowed as the market has become over-saturated. These mature consumers are overwhelmed with choices and it is costly for brands to break through the noise.

You have to focus on a market that fits your profile. If, for example, you want to launch an English school, it is highly recommended to choose a second or third-tier city because, in the first-tier cities, the English school market is already saturated.

Maximize Your Entry into the Chinese Market with Gentlemen Marketing Agency

Navigating the complex and ever-evolving Chinese market can be a formidable challenge for any business. That’s where we come in. Gentlemen Marketing Agency has carved out a unique niche in the market, providing unparalleled expertise and results-driven strategies to help global companies thrive in China.

Why Choose Us?

  • Experience with Global Brands: We’ve successfully guided numerous multinational corporations through the intricacies of market entry and expansion in China. Our seasoned team understands the nuances of consumer behavior and regulatory frameworks across various sectors.
  • Custom Strategies: We believe in a tailored approach. Your business is unique, and so should be your market entry strategy. Our bespoke solutions are designed to fit your brand’s specific needs and goals.
  • Digital Mastery: In China’s digital-first landscape, our expertise in platforms like WeChat, Weibo, and Douyin is unmatched. We’ll ensure your brand not only enters the market but also captivates and engages the Chinese audience.
  • Local Insight and Global Perspective: Our team is a blend of local experts and global thinkers, offering you the best of both worlds—deep local insights with an understanding of international brand values and standards.
Fashion-Case-Studies-GMA

Our Services Include:

  • Market Research: In-depth analysis to identify your brand’s potential and the competitive landscape.
  • Brand Localization: Tailoring your messaging and products to resonate with Chinese consumers.
  • Digital Marketing: Harnessing the power of China’s digital ecosystem to maximize your brand’s visibility.
  • E-commerce Solutions: From Tmall to JD.com, we navigate the platforms that matter.
  • KOL Partnerships: Leveraging key opinion leaders to amplify your brand’s voice.
  • Offline Events: Engaging with consumers through memorable brand experiences.

With Gentlemen Marketing Agency, your journey into the Chinese market will be strategic, informed, and innovative. Let’s turn the challenge of market entry into your opportunity for growth. Reach out to us, and let’s make your brand the next success story.

]]>
https://marketingtochina.com/20-best-strategies-for-the-china-market/feed/ 5
Negotiating In China: Best Strategies To Close Deals With Chinese Partners https://marketingtochina.com/negotiating-in-china/ https://marketingtochina.com/negotiating-in-china/#comments Fri, 03 Nov 2023 10:21:00 +0000 https://marketingtochina.com/?p=79700 Navigating the path to a finalized deal with Chinese partners can feel like trying to solve an intricate puzzle due to distinct cultural differences. I’ve found myself in these choppy waters, and surprisingly discovered something as simple as bowing or opting for more formal wear can alter the dynamics incredibly! In this blog post, I’ll shine some light on the somewhat mystifying Chinese negotiation style and share useful tactics that could help you successfully seal those deals.

So buckle up, we’re about to embark on a journey full of intriguing insights!

Key Takeaways

  • Building strong personal connections, known as “guanxi,” is crucial for successful negotiations with Chinese partners. This involves nurturing social relationships and establishing trust.
  • Preparation and patience are key when negotiating with Chinese partners. The negotiation process may be slow and lengthy, as the focus is on building relationships rather than rushing into contracts.
  • Flexibility and adaptation are essential in navigating the Chinese negotiation style. Being open-minded, agile, and respectful of cultural differences will help build trust and increase the chances of closing successful deals.
  • Understanding and respecting Chinese cultural nuances is important for bridging gaps in negotiations. Showing respect, humility, and cultural sensitivity can create a positive environment for successful deals to be made.

Introduction to the Chinese Negotiation Style

The Chinese negotiation style is deeply rooted in cultural threads and elements, making it essential to understand the underlying factors that shape their approach.

Cultural threads and elements

In China, people use four main cultural threads when they do deals. This unique style is a mix of being kind and firm. It’s part of their deep-rooted way of life.

The more you understand it, the better your cross-cultural communication will be! So, you should study Chinese cultural norms and values ahead of time for your benefit. The negotiation techniques used there are different from what we are used to in the West.

To avoid any wrong moves, being culturally sensitive is key in each step. For example, as you can see below, many Chinese meetings are actually carried out in restaurants, so that a relationship can be built.

Roots of Chinese culture

Chinese culture has deep roots. It shapes their way of talking and trading. One key part is guanxi, which means building links with people. Chinese folk think these links are more important than any paper deal or law rule.

They want to take care of the link and trust it more than any written word. So they do not rush into a deal quickly. This style may feel slow and long but that’s how they do it best in China!

Best Strategies for Successful Negotiations

Build cordial connections, prepare with patience, and be flexible and adaptable to ensure successful negotiations with Chinese partners.

Building cordial connections

To come out on top in deals, you should place high value on building cordial connections. In China, these personal ties are called ‘guanxi.’ They are key to creating trust and rapport. You should spend time making strong bonds with Chinese partners.

This will help build a solid network of personal relationships. It’s not just about business, it’s also about nurturing social connections. These ties help pave the way for successful talks and deals in the future.

Preparing with patience

When negotiating with Chinese partners, it is crucial to prioritize preparation and have patience throughout the process. This is because Chinese negotiators value the means over the end and focus on building relationships rather than rushing into contracts.

It’s important to understand that negotiations in China can be a long and slow process, so being patient is key. Listening more than speaking can also help you gather important information and navigate the negotiation effectively.

By preparing thoroughly and approaching negotiations with patience, you increase your chances of success in closing deals with Chinese partners.”.

Flexibility and adaptation

Flexibility and adaptation are other important part when negotiating in China. The negotiation process can be slow and lengthy, as the Chinese prioritize building relationships over finalizing contracts.

It is important to understand and adapt to the Chinese negotiation style, which can be both sincere and deceptive. Being flexible means being able to adjust your strategies according to the situation at hand.

Adapting to the Chinese culture and business practices will show respect and help build trust with your Chinese partners. By being open-minded, agile, and resourceful in your negotiations, you increase your chances of closing successful deals in China.

case-study_general_DC-real-estate-scaled-1

Don’t let your counterparts lose face

Keeping the respect of your Chinese business friends is very important. People from other countries need to be careful not to embarrass their Chinese partners by accident or on purpose. In China, someone’s reputation, or ‘face,’ comes from things like how much money they have, how smart they are, what they own, what they can do, their job title, and who they know.

To help their Chinese friends ‘save face,’ people from other countries should be polite, say nice things about them or their culture, and listen well when they talk. It’s also important not to ‘lose face’ by acting childish or getting too emotional. If someone loses their cool, they might ‘lose face’ and look unreliable or not serious. It’s better to smile and stay calm, even if you don’t feel like it than to get angry and ‘lose face.’

Tips for Dealing with Chinese Business Partners

Understand their perspective, avoid confrontation, and be prepared for lengthy negotiations.

Understanding their perspective

To successfully negotiate with Chinese business partners, it is crucial to understand their perspective. Chinese negotiation style focuses on building strong relationships and trust rather than relying solely on contracts.

They prioritize identifying mutual interests when working out deals. It’s important to remember that Chinese partners value guanxi, which means personal connections and relationships are significant in negotiations.

By leveraging guanxi, you can establish long-term success in your negotiations with Chinese partners. So, make an effort to build a strong relationship with them and consider the importance of trust and mutual benefits throughout the negotiation process.

Avoiding confrontation

When negotiating with Chinese business partners, it is crucial to avoid confrontation. This can be achieved by understanding their cultural differences and perspectives. By showing respect and humility, you can build a positive connection with your Chinese partners.

It is also important to be patient and flexible during negotiations, as they may take longer than expected. By being well-prepared and culturally sensitive, you can navigate the negotiation process smoothly and prevent confrontational situations from arising.

Being prepared for long negotiations

Negotiating in China can be a lengthy process, so it is important to be prepared for long negotiations. Chinese business culture values building relationships over relying solely on contracts.

This means that negotiations may take longer because time is spent fostering trust and rapport between the parties involved. It’s crucial to practice patience during these extended negotiations as progress may not always be made quickly.

Chinese negotiators often use tactics like flattery to create a positive atmosphere during discussions. By understanding the importance of relationship-building and being patient, you can navigate the negotiation process successfully with your Chinese partners.

Navigating Cultural Differences in Negotiations

Understanding and respecting the cultural nuances of Chinese negotiations is crucial for successful deals. Learn effective strategies to bridge cultural gaps and close deals with Chinese partners.

Importance of respect and humility

Respecting others and showing humility are crucial when negotiating with Chinese partners. In Chinese culture, social hierarchy is highly valued, and it’s important to demonstrate respect for those who hold higher positions.

This means addressing them using appropriate titles and showing deference towards their opinions. Additionally, being humble in your approach can help build trust and create a positive atmosphere for negotiations.

The Chinese appreciate individuals who listen attentively, speak modestly, and avoid boasting or appearing arrogant. By displaying respect and humility, you can establish a strong foundation for successful negotiations with your Chinese business partners.

Strategies for bridging cultural gaps

Understanding and respecting cultural differences is crucial for successful negotiations, especially when dealing with Chinese partners. Here are some strategies to bridge cultural gaps:

  1. Cultivate Cultural Sensitivity: Be aware of different cultural norms and values, such as the importance of hierarchy and saving face. This will help you adapt your approach accordingly.
  2. Enhance Intercultural Communication: Communicate clearly and effectively, taking into account language barriers and potential misunderstandings. Use simple language, avoid slang or idioms, and be patient when expressing your ideas.
  3. Foster cross-cultural understanding: Take the time to learn about Chinese culture, history, and traditions. This knowledge will demonstrate your respect and genuine interest in their way of doing business.
  4. Practice Cultural Adaptation: Show flexibility by adapting your negotiation style to align with Chinese preferences. This may include focusing on building personal relationships before discussing business matters.
  5. Consider the Cultural Context: Understand that Chinese negotiators prioritize process over outcomes. Be patient during long negotiations and be prepared for a collective decision-making approach rather than expecting quick resolutions.

We Have Experience in China That You Need For Your Success!

In conclusion, successful negotiations in China require understanding and adapting to the Chinese negotiation style. Building cordial connections and preparing with patience are essential strategies.

It is important to understand their perspective, avoid confrontation, and be prepared for long negotiations. By navigating cultural differences with respect and humility, bridging gaps can lead to successful deals.

Ultimately, building relationships based on trust and rapport is key in negotiating with Chinese partners.

Why Choose Us

At Gentlemen Marketing Agency, we’re not just marketers; we’re cultural bridge-builders. Here’s why savvy negotiators turn to us when they’re looking to make a mark in China:

  • Cultural Expertise: We’re fluent in the subtleties of Chinese customs and business practices, which is essential for saving face and building respect.
  • Communication Mastery: We teach you the language of Chinese business—not just Mandarin but the unspoken language of respect and rapport.
  • Relationship Building: Our ‘guanxi’ isn’t just strong; it’s your stepping stone to forming lasting and profitable business alliances.

Our Services

Our suite of services is designed to make every negotiation with your Chinese partners a success:

  • Customized Training: From language basics to advanced negotiation tactics, our training is tailored to your industry and needs.
  • Market Insight: We provide in-depth analysis of Chinese market trends and consumer behavior to inform your strategy.
  • Negotiation Support: Our team stands with you at the negotiation table, offering real-time advice and support.
  • Partnership Facilitation: We help you find the right partners and foster relationships that go beyond the boardroom.

When you partner with Gentlemen Marketing Agency, you’re choosing a team that is dedicated to your success in China. We’re not just helping you close a deal; we’re helping you open a world of opportunities. Ready to take the first step? Contact us today and make your next negotiation your best yet.

LEAD-GEN-CASE-STUDIES-GMA
]]>
https://marketingtochina.com/negotiating-in-china/feed/ 2
How Do Chinese People Invest Their Own Money? https://marketingtochina.com/how-do-chinese-people-invest/ https://marketingtochina.com/how-do-chinese-people-invest/#respond Wed, 01 Nov 2023 17:54:29 +0000 https://marketingtochina.com/?p=79702 Have you ever caught yourself wondering how our counterparts in China choose to invest their hard-earned money? Trust me, it’s a curiosity we share. The investing landscape can differ vastly from country to country, with only about 23% of Chinese citizens choosing shares of listed companies as their investment choice.

In this post, we’re going on an exploration journey into China’s unique investment world – highlighting the assets that get top billing and attempting to uncover why they are such hot commodities.

We’ll also delve into the factors that sway these decisions and the possible risks involved along the way. Brace yourselves for some eye-opening insights about our global neighbors!

Key Takeaways

  • Chinese people have a preference for traditional investments like real estate and bank deposits, but there is also a growing interest in alternative options like hedge funds.
  • Many Chinese people do not invest much in stocks because they fear the rise and fall of businesses in the country. Instead, they choose other ways to grow their wealth.
  • Chinese investment choices are influenced by factors such as economic stability and government policies, personal connections and insider trading, as well as urbanization and development.
  • Investing in China presents both potential for high returns and market volatility due to government control. Understanding the risks and rewards is crucial for successful investment strategies in this dynamic market.

Chinese Investment Culture and Trends

Chinese people have a preference for traditional investments such as real estate and bank deposits, but there is also a growing interest in alternative options like hedge funds.

Preference for traditional investments

In China, many people put their money in real estate and bank deposits. This is a big part of Chinese investment behavior. They see this as a safe way to keep their wealth. A lot of houses in China belong to families who live there, nearly 39%.

Also, almost half (46%) of all the money households have is sitting in banks! But why do they do this? It’s because lots of folks feel unsure about other ways to invest. Despite the rise of stocks and bonds, they still stick with what they know: property and savings accounts.

Yet some younger people are starting to take small steps towards different types of investing like shares or digital money.

When it comes to real estate investments, as you can see above, Chinese people invest in properties not only in China but also abroad. 61% of those that purchase an international property, do so for investment diversification.

Growing interest in alternative investments like hedge funds

More Chinese people are putting money into things like hedge funds. They want to try new ways to grow their money. This shift is most common among young adults in China.

Hedge funds have done well because of the strong ties between fund managers. These personal bonds help them make good choices and see big wins. The rise in such non-traditional investment shows a change in the way Chinese people think about managing their money.

In past years, people only put money into real estate or left it at the bank. Now, they also consider stocks, bonds, and even cryptocurrencies as options for growing wealth. This interest is making these other types of investments more popular.

Young people turn to gold

Gold, something always associated with old-fashioned folks, is now back in style, with Gen Z increasing their interest in gold investments. As data indicates, over half of gold consumers are people born after 1990 and many of them consider gold to be the most trustworthy investment.

Those investments don’t even need to be big, with many investing between 400 to 600 yuan ($54-82$) for one gram of gold, just to have some savings that are safe in their pockets. Young Chinese consumers are even encouraging each other to invest on social media, posting jars slowly filling with those small gold beans.

introduction
Source: Sixth Tone

During the initial six months of 2023, the China Gold Association reported that China experienced a significant rise in gold demand, seeing a 16.37% surge compared to the previous year, totaling 554.88 tons. This increase was reflected in a notable peak in spot gold prices by mid-September, hitting record levels not seen in ten years and marking the largest difference compared to global gold prices within the same period.

However, after the Golden Week festivities, there was a noticeable decrease in the cost to approximately 450 yuan for each gram. Nonetheless, this dip was temporary, with the price of gold rebounding to 475.8 yuan per gram by October 27.

Limited investment in stocks

In China, many people do not put a lot of money in stocks. They like other ways to grow their wealth. This is part of the investment culture in China. Some don’t have enough cash to buy stocks.

Others get scared by the rise and fall of businesses in the country. Instead of stocks, these investors go for things that could make them more money later on. So, you see less money going into stocks here than in some other parts of the world.

Factors Influencing Chinese Investment Choices

Chinese investment choices are influenced by various factors, including economic stability and government policies, personal connections and insider trading, as well as urbanization and development.

Economic stability and government policies

China’s economic stability and government policies play a significant role in influencing the investment choices of its people. The stability of the economy, along with favorable government policies, encourages Chinese individuals to invest their money.

Factors such as stability, availability of world investment capital, and regulatory policy set by the government influence foreign direct investment (FDI) in China. The country’s years of central planning and strict government control have posed challenges for economists studying its economic growth.

However, China has also implemented reform and open-door policies that have led to development and rising national incomes. Government control is focused on maintaining macroeconomic stability for foreign trade and investment in the country.

Investment Outlook, China 2023 - ARC Group

Personal connections and insider trading

In China, personal connections and insider trading can have a significant impact on investment decisions. Unlike the United States, where insider trading is illegal, it’s not necessarily seen as illegal in China.

This means that individuals with access to private information about a company may use it to make investment choices. During the COVID-19 crisis, firms with connections to China were able to profit from insider trading.

Additionally, familiarity and social connections can heavily influence fund manager decisions in China. It’s important for foreign investors to be aware of these factors when considering investments in Chinese markets due to potential legal implications and regulatory oversight.

Urbanization and development

Urbanization and development play a crucial role in influencing Chinese investment choices. China’s urban growth trendseconomic development, and infrastructure investments have a significant impact on its cities and the overall investment landscape.

The rapid urbanization is driven by migration from villages and natural population increase, leading to the expansion of small towns. Land acquisition becomes essential for China’s urbanization process as it supports economic growth and social stability.

It is worth noting that Chinese businesses often benefit from state support, financial assistance, and a regulatory environment that favors domestic firms. This creates opportunities for investors looking to tap into the growing market.

FOMO, fear of missing out

According to recent research by the CFA Institute, over fifty percent of China’s Generation Z are engaging in investments driven by the “fear of missing out” (FOMO), with securing funds for travel topping their list of economic aspirations.

The research surveyed a broad demographic that included Generation Z, Millennials, and Generation X investors across four nations—China, the United States, the United Kingdom, and Canada—in the final two months of the previous year.

The findings of the study, as highlighted by Paul Andrews, the CFA’s managing director for research, indicate that these recent market entrants are significantly influencing the evolution of investment tactics, products, and platforms. The data emphasizes just how distinct the investment patterns of these new investors are when compared to the investing behaviors of past generations.

6 Factors Driving Investment in China

Risks and Rewards of Investing in China

Investing in China presents both potential for high returns and market volatility due to government control. Understanding the risks and rewards is crucial for successful investment strategies in this dynamic market.

Read more to explore the opportunities and challenges of investing in China’s evolving landscape.

Potential for high returns

Investing in China has the potential for high returns. The Chinese market offers lucrative opportunities for investors who are willing to take on some risks. With its growing economy and expanding industries, there is a chance to earn significant profits through investments in Chinese businesses.

In recent years, China has become a global economic powerhouse, attracting both domestic and foreign investors. By leveraging the state support, financial assistance, and regulatory backing that many Chinese businesses receive, investors can benefit from favorable conditions that contribute to their success.

Additionally, including Chinese assets in a global investment portfolio can be a strategic decision due to China’s strong economic influence in global markets. So if you’re looking for an opportunity with great potential for high returns, investing in China could be worth considering.

Market volatility and government control

Investing in China comes with certain risks and rewards, particularly when it comes to market volatility and government control. The Chinese market can be unpredictable at times, which means that investments may experience significant fluctuations in value.

Government control also plays a role in shaping the investment landscape. The Chinese government has the power to implement policies that can directly impact industries and companies.

This level of intervention can create both opportunities and challenges for investors. It’s important to carefully assess these factors before making any investment decisions in China.

Overall, understanding the potential risks associated with market volatility and government control is crucial for anyone looking to invest in China. By staying informed about economic trends, political developments, and regulatory changes, investors can make more informed decisions about their portfolios.

Compliance with regulations

Complying with regulations is important when investing in China. The Chinese government has rules and restrictions in place that can make it challenging for foreign investors. They have a Foreign Investment Negative List (FINL) and a Market Access Negative List, which outline the sectors closed to foreign direct investment (FDI).

It’s crucial for foreign businesses to consult these lists before making any investments. Additionally, there are regulatory risks associated with investing in Variable Interest Entity (VIE) holding companies.

These factors highlight the importance of understanding and following the regulations when investing in China.

Conclusion: The Future of Chinese Investment Landscape

The future of the Chinese investment landscape is expected to continue growing and diversifying, with increasing interest in alternative investments like hedge funds and a potential for opportunities for foreign investors.

The impact of global economic factors will play a significant role in shaping the investment choices made by Chinese individuals, as well as government policies and economic stability within China.

As the country continues to urbanize and develop, new investment avenues are likely to emerge, offering both risks and rewards for those looking to invest their money in China.

Impact of global economic factors

Global economic factors have a significant impact on the future of Chinese investments. The negative trade tensions between the United States and China have affected both countries, resulting in decreased trade.

This has had a direct impact on consumers and producers in China and the US. On a positive note, Chinese foreign direct investments (FDIs) in Africa have shown evidence of improving income in the region, although there is concern that it may displace other investments.

Data: Chinese Investment in Africa — China Africa Research Initiative

With China’s outward investment gaining relevance in the global economy, there is increased scrutiny on its effects on host states. Additionally, China’s ambitious Belt and Road Initiative has the potential to include significant Chinese investments worldwide.

Potential opportunities for foreign investors

As a marketing manager, you’ll be glad to know that there are potential opportunities for foreign investors in China’s investment landscape. China represents a significant investment opportunity due to its growing economy and various industries.

One area of interest is China’s green industries, particularly new energy projects. Foreign investors have the chance to invest in these projects without any special limitations. It’s important to note that China’s current economy, including political and economic innovations like Special Liquidity Facilities (SLFs), has implications for investors.

While foreign investors may face complex and inconsistent mechanisms, it’s crucial to research their rights under Chinese law before investing in China. Overall, with careful consideration and understanding of the market, there are promising opportunities for foreign investors in China’s dynamic investment landscape.

If you’d like to invest in China but don’t know where to start, contact us, so we can schedule a free consultation with one of our experts!

]]>
https://marketingtochina.com/how-do-chinese-people-invest/feed/ 0
China Matchmaking Market: How Does That Work? https://marketingtochina.com/china-matchmaking-market/ https://marketingtochina.com/china-matchmaking-market/#respond Fri, 27 Oct 2023 12:06:22 +0000 https://marketingtochina.com/?p=79590 Isn’t the astronomical growth of China’s matchmaking industry simply fascinating? China managed to turn the marriage market into one of the biggest industries, but it doesn’t even start from the engagement. China’s matchmaking market, with many dating apps, matchmaking companies, and marriage markets in the biggest cities (including the most popular Shanghai marriage market in People’s Park) is something unseen anywhere else in the world.

With over 200 million Chinese citizens enthusiastically hunting for their soulmates through these channels, who wouldn’t be curious? Let’s dive into this captivating world together, uncovering the enigma of online dating sites in China, right down to the influence of artificial intelligence on love connections.

There is so much more than meets the eye in this intricate business woven with threads of hope and heartstrings!

The Evolution of Matchmaking in China

In ancient China, matchmaking was integral to societal fabric, managed by matchmakers or “媒人” (mei ren). These professionals considered family background, economic status, and astrological readings (“八字” or Ba Zi) to predict marital harmony. Marriages were often arranged to unify families rather than for love, with rituals and dowries symbolizing this union.

Impact of Modernization

The 20th century brought major societal shifts, influencing perceptions of love and marriage. Urbanization disrupted traditional community-based matchmaking, introducing new complexities in finding partners. Policies like the one-child policy also influenced familial and societal dynamics.

As Western ideals seeped in, younger generations in China began valuing romantic love and personal choice, shifting away from arranged marriages. The rise of the internet and mobile technology led to the popularity of online dating platforms. However, traditional practices still persist in a modified form, with families having a say in the matchmaking process.

China matchmaking market: Qingliao app
Qingliao, one of the top Chinese dating apps

Professional Matchmakers Adapt

Today’s matchmakers in China blend traditional methods with modern dating techniques, catering to varying preferences and demographics. This reflects a unique balance of tradition and modernity in China’s evolving matchmaking landscape.

Overview of the Matchmaking Market in China

China’s matchmaking scene is big business. It has grown into a multi-billion dollar industry. Over 200 million Chinese are now seeking partners online and through matchmaking companies, pushing up revenue growth each year.

Dating apps and online platforms have become the popular way to find love in China. This trend has turned livestream dating into a huge moneymaker, adding even more value to this booming sector of the market.

The demand for these services won’t slow down. Market predictions expect it will hit $1.1 billion soon!

From high-end agencies catering to elite clientele to more accessible, mass-market services, these businesses cater to a wide range of social and economic groups. Many emphasize holistic approaches, offering personality assessments, professional photographs, and even coaching sessions to enhance clients’ appeal.

The Role of Technology and Online Platforms

Technology has revolutionized matchmaking in China. Dating apps and websites have become the norm, with platforms like TanTan, Jiayuan, and Baihe leading the market. These online services use advanced algorithms to match individuals based on personal preferences, interests, and behavioral patterns. They offer a more private and convenient way for young professionals to date, breaking through geographical and social barriers that traditional matchmaking could not easily overcome.

Social media also plays a significant role. Platforms like WeChat are used for informal matchmaking, with people often joining dating groups or using features like “People Nearby” to find potential partners.

Government Involvement and Public Matchmaking Services

Recognizing the importance of stable family units for societal harmony, the Chinese government and various local authorities have stepped into the matchmaking arena. They often organize large-scale matchmaking events and fairs, particularly aimed at addressing the imbalances created by the one-child policy and the resulting gender disproportion.

Additionally, some cities have established official matchmaking services, providing a platform for singles to meet. These services are typically free or low-cost, ensuring accessibility for a broader population. They focus on creating opportunities for face-to-face interaction through organized social events.

These government-sponsored initiatives frequently emphasize traditional Chinese culture values and long-term relationships, contrasting with the more liberal approach of private matchmaking services and dating apps. Through this multifaceted matchmaking landscape, China is navigating the complexities of modern love while staying rooted in its cultural heritage and family values.

Cultural Factors Influencing Matchmaking

Societal Expectations and Family Pressure

In China, societal norms and family expectations play a significant role in shaping the matchmaking process. The traditional belief in “成家立业” (cheng jia li ye), meaning to establish a family and career, weighs heavily on many individuals, especially as they reach a certain age. This societal pressure to marry and start a family often leads individuals to seek matchmaking services.

Many Chinese parents, particularly of the older generation, tend to have a substantial influence on their unmarried offspring marriage decisions. This stems from the Confucian principle of “孝” (xiao), or filial piety, which emphasizes respect and obedience to one’s parents. The decisions about whom and when to marry are frequently made with the anxious parents approval or input.

The Concept of “BaiFaXiangQin” (Parents Setting up Dates)

“BaiFaXiangQin” is a unique phenomenon in contemporary China where parents take an active role in arranging dates for their unmarried children. These parents advertise and exchange information about their adult children, including their age, education, job, and sometimes even their income, at gatherings or through matchmaking networks.

This practice demonstrates how traditional matchmaking has adapted to modern times. While young Chinese individuals are more inclined towards making their own romantic choices, many still acquiesce to parent-arranged meetings out of respect or to appease family expectations. Many parents and grandparents gather in public parks etc with the purpose of finding a spouse for their children.

Marriage Marketplaces and “Marriage Corners” in Public Parks

Marriage marketplaces or “marriage corners” are a testament to the persistence of traditional matchmaking in modern China. Found in numerous public parks, these are places where parents display posters or advertisements listing the details of their unmarried children, including age, height, education, job, and sometimes even their photograph.

These gatherings, typically occurring on weekends, are not just about finding a suitable match for their children but also serve as a social platform for parents to share and seek advice on matchmaking. Interestingly, these marketplaces focus more on aligning family backgrounds and values rather than the preferences of the individuals involved.

Exploring the Business of Matchmaking in Modern China

Here’s a closer look at how matchmaking services in China operate and cater to the varying needs of Chinese singles.

Online Platforms

The digital age has brought with it dating platforms like TanTan, Jiayuan, and Baihe. These user-friendly sites and apps allow users to create profiles, and then use sophisticated algorithms to suggest potential matches. Features like chat options, compatibility quizzes, and robust privacy settings make these platforms popular among the tech-savvy crowd.

The business model for these platforms typically involves a freemium approach. Basic services are free, but users can pay for premium features such as advanced search options, profile boosts, and virtual gifts. These platforms also generate revenue through advertisements and subscription fees.

Success for online matchmaking is often gauged by user engagement metrics, such as the number of matches and conversations. Customer satisfaction is closely monitored through surveys and app store reviews.

Personal Matchmakers

For those seeking a more traditional and personalized approach, professional matchmakers and agencies offer bespoke services. These can include detailed interviews, comprehensive personality assessments, and even coaching sessions to enhance dating prospects. These services are especially popular among those who value privacy and personalization in their search for a partner.

High-end matchmaking services can command substantial fees, reflecting the level of personalization and exclusivity they offer. Clients can choose from a range of packages, some offering a set number of dates, while others provide ongoing services until a suitable match is found.

Here, success is measured by the number of long-term relationships or marriages that result from their matches. Personal matchmakers often collect feedback directly from clients to gauge satisfaction and improve their services.

Apart from those two options, there are also marriage markets, like the Shanghai marriage market, where Chinese parents look for potential partners for their unmarried children. Although it seems like a very old-fashioned and outdated option, there are still many young people in China who go for blind dates arranged by their parents and other family members.

Challenges and Controversies in China’s Matchmaking Business

Despite the booming success, the Chinese matchmaking industry faces several obstacles such as exorbitant fees for custom services, societal pressure on unmarried women and growing incidences of scams.

Let’s delve into these issues to gain a better understanding of this lucrative but controversial business landscape.

High fees and “custom services”

In China, matchmaking has a high price tag. Wealthy people might pay up to $21,000 each month for bespoke matchmaking solutions. These personalized spouse matchmaking services promise a perfect partner match.

It’s not just about love but also securing the right social fit. That’s why these tailored partner search services are so costly. These premium options offer an exclusive experience in finding love and marry it with status and lifestyle choices.

“Leftover women” stigma

I want to talk about a big challenge in China’s matchmaking business. This is the “leftover women” stigma. The term talks about single women who are over 27 years old and not married yet.

It came up in China as more women chose work over marriage. But, this idea has caused many arguments about fairness between men and women in China. People think that both men and women must marry when they reach a certain age.

I see this view also shows up in newspapers, TV shows, and even online posts a lot of times. They tend to show disrespectful views on older, unmarried people, traditional male roles and ideas of what is normal for everyone.

Scams and exploitation

Scams and exploitation make things hard in the matchmaking business. Many bad people use tricks to take money wrongly. This is a big problem in China’s matchmaking field. People are promised love but lose their cash instead.

Some scams tell lies about fake plans or stocks. There is also the trick of swapping real products for bricks. That means you think you’re buying something good, but it’s just some worthless bricks! I know this because many people have lost money like this in China recently.

Elevate Your Presence in China’s Matchmaking Market with Gentlemen Marketing Agency

Are you ready to tap into the booming Chinese matchmaking industry? Gentlemen Marketing Agency is your ideal partner, offering specialized marketing strategies tailored to this unique market. We blend deep cultural understanding with innovative marketing techniques to help your matchmaking service flourish.

Tailored Services for Every Matchmaking Model

  • For Online Platforms: Enhance your digital presence with our targeted SEO, social media campaigns, and custom ad strategies.
  • For Personal Matchmakers: Build your brand with our traditional media expertise, exclusive event organization, and elite networking opportunities.
  • For Marriage Markets: Grow your community presence through grassroots marketing and local engagement initiatives.

Why Choose Us?

  • Cultural Expertise: Our strategies are deeply rooted in understanding Chinese matchmaking norms and culture.
  • Proven Success: A portfolio of successful campaigns demonstrates our effectiveness in this niche market.
  • Comprehensive Solutions: From research to execution, we offer end-to-end services to meet your unique needs.

Join forces with Gentlemen Marketing Agency to navigate the Chinese matchmaking industry successfully. We’re committed to helping your business connect hearts and achieve success.

Contact us to transform your matchmaking business in the Chinese market.

]]>
https://marketingtochina.com/china-matchmaking-market/feed/ 0 Looking for love? Chinese Communist Party launches ‘matchmaking’ service nonadult
Young Chinese Are Trying To Spend Less: Understand China’s Frugal Economy https://marketingtochina.com/chinas-frugal-economy/ https://marketingtochina.com/chinas-frugal-economy/#respond Tue, 17 Oct 2023 08:34:08 +0000 https://marketingtochina.com/?p=79534 Have you spotted a shift in the spending habits of young Chinese consumers? It seems as though China’s Millennials and Gen Z are swapping their gold credit cards for some good old-fashioned frugality.

In this article, we’re going to explore the motivations that triggered such a change and what it spells out for China’s booming economy. Join me on an intriguing journey, as we unravel how this significant cultural pivot could potentially restructure not just the Chinese market landscape but also ripple across global shores with implications far beyond our expectations.

Key Takeaways

  • Young people in China are spending less and saving more. This trend is known as “koukouzu”, which means young frugal Chinese.
  • Social media influencers push this trend by sharing tips on low-cost living. They use platforms like Weibo and WeChat to reach their followers.
  • The change in how young people spend money affects the whole economy of China. Brands, too, have to find cost-effective ways to sell their goods.
  • If the youth in China keeps spending less, it might hurt economies around the world. For now, leaders urge them to embrace hardships for a stronger future.

The Rise of Frugal Living in China

A noticeable shift is occurring in China, with young Chinese people championing frugal living and adopting cost-conscious habits. Influencers on social media platforms are becoming the vanguard of this movement, extensively sharing low-cost lifestyle hacks and money-saving tips.

This change seems to be more than just a trend; it’s emerging as a defining facet of millennials and Generation Z culture in China. With these generations making up an increasing segment of consumers, their financially conservative behaviors are starting to significantly shape the country’s spending culture.

Gen Z in China are the new affluent consumers and they spend the most in global comparison. Yet, recently, as China faces some economic problems and young people have difficulties with finding jobs and saving money, they are trying to live a less extravagant life.

Young Chinese are embracing frugality

Young people in China are now choosing to spend less. They want to live a thrifty life. This trend is called “koukouzu”. It means “young frugal Chinese“. Social media helps this trend grow fast, with people on Weibo posting saving tips, canteen food, or blind food boxes.

Many young Chinese like this new lifestyle as it saves them money. They feel safer with more cash in their bank accounts. Some even choose to live alone. They find joy in simple and low-cost living, and they prefer saving over spending big bucks on things they don’t really need.

The rising popularity of community canteens

Community canteens offering a variety of food for very small prices were always reserved for the elderly. Those places were often filled up with people over 70 years old, enjoying cheap meals as they often live on a very tight budget.

But recently the situation started to change, as young people are trying to save money. Community canteens, particularly in major cities like Beijing and Shanghai, have become a buzzing topic on social media.

On Xiaohongshu, China’s popular lifestyle-sharing platform, numerous young individuals post about their meals at these canteens. Many comments on these posts include praises for the dishes, inquiries about the canteen locations, and questions about the presence of similar canteens in their own localities.

Weibo posts from canteens are gaining traction and more and more people go there to eat and spend time with friends, while also saving money.

Community canteens catering exclusively to older people - Global Times

Chinese young consumers are trying to waste less food

In China, the concept of “blind food boxes” is gaining significant traction. These boxes offer economical packages of assorted foods at a nominal price, often sourced from establishments that have excess stock, such as supermarkets and bakeries.

The idea aligns with a global trend to combat food waste, similar to international platforms like the Danish app “Too Good To Go.” The intrigue of not knowing what’s inside and the joy of “unboxing” have made it a popular phenomenon, especially among food enthusiasts.

These blind boxes have become a sensation on Chinese social media platforms. Platforms like Xiaohongshu are filled with reviews and unboxing experiences, with some posts amassing hundreds of thousands of likes. The trend not only promotes frugality but also fosters a sense of discovery and excitement with each box.

RADII on X: "A new food trend is sweeping China among young people -  'leftover food blind boxes' (shengcai manghe 剩菜盲盒).  https://t.co/9dev9XCj23" / X

Social media influencers promoting low-cost lifestyles and money-saving tips

In China, many people are turning to social media for help with money. They follow influencers who share tips on how to live well, but spend less. Platforms like Douban are full of chats about living frugally.

Tons of young people worry about the shaky economy and look for ways to save money. Some quit their jobs to become influencers themselves! They use Weibo and WeChat because it’s cheap to promote there.

Brands love these cost-effective ways too. It helps them reach more people without breaking the bank. This is making a big impact not just in China, but around the world too. Not to mention the sustainability efforts, that also help reduce costs, while helping the environment.

The Impact on China’s Economy

As young Chinese adopt a frugal lifestyle, their reduced consumer spending is causing a significant shift in the national economy. Economic anxiety looms as more millennials and Gen Z opt for saving rather than spending.

Decreased consumer spending

As a part of China’s economy, it is essential to note a change in spending. Young Chinese people are now saving more and buying less. This is different from the past where lots of shopping was noted due to easy credit and higher wages.

However, since the start-up of COVID-19, this trend has changed big time. Now, there is less growth in how much people spend and fewer investments in property as well. Hence, we see an impact on China’s whole economy because people save more than they buy things.

These actions by young Chinese consumers show new habits shaped by their reactions to the pandemic situation.

Economic anxiety among young people

Young people in China feel uneasy about money. This worry has grown because they can’t find jobs. The rate of jobless youth is now very high, the highest ever seen. A lot of them have started to live a frugal lifestyle due to this worry.

They buy fewer things and look for ways to save money wherever they can. That means they spend less on stuff than before. Goldman Sachs says young folks make up nearly 20% of all buying in China so when they spend less, it hurts the entire economy.

The strict rules about COVID-19 have made it even harder for them to get jobs, adding more to their stress levels and frustration with life and work situations.

The Broader Implications

The shift towards frugality and decreased spending among young Chinese could potentially threaten the global economy. On a larger scale, China’s leaders are urging this generation to embrace adversity as part of a grand plan to revitalize their country’s economy following the COVID-19 pandemic.

Threat to global economy

China’s shrinking spending worries the whole world. As young Chinese save more, they spend less. This is not good for China or anyone else. The world relies on China to buy a lot of goods.

Many fear an economic slowdown in China could hurt other countries too. If this thrift trend continues, we may face a global downturn next.

Leaders encouraging young people to embrace hardship

Chinese President Xi Jinping wants young people to accept hard times. He sees power in overcoming struggles and being tough. Even finding jobs is hard for these young folks because there are so few.

Still, they studied with all their might in college only to stumble on a small job market later. Leaders believe that it’s through this hardship that perseverance grows stronger. They see frugality, self-reliance, and an entrepreneurial spirit as the path towards better things.

It’s not just about less spending but more about making growth equal and lasting for everyone in China.

We Will Help You Navigate The Chinese Market

In conclusion, as China’s younger generation shifts towards a frugal economy, businesses must adapt their strategies to resonate with this evolving consumer mindset. The emphasis on value for money, sustainability, and smart consumption is no longer a passing trend but a deep-rooted behavioral shift.

Brands seeking to thrive in this environment must prioritize understanding these changing patterns and adapt accordingly.

At Gentlemen Marketing Agency, we are dedicated to helping businesses navigate the intricacies of China’s dynamic market landscape. With our in-depth insights and expertise, we can help you tailor your approach to connect meaningfully with the new-age, cost-conscious Chinese consumer.

Let’s work together to tap into the tremendous opportunities that the world’s largest consumer market offers. Contact us today!

]]>
https://marketingtochina.com/chinas-frugal-economy/feed/ 0 New trends: Young people switching to a more sustainable lifestyle nonadult