But where the pandemic forced changes to the ways that we lived and worked, some of those adjustments have led to more permanent shifts in consumer behaviour in China and in the West. In this post, we’ll look at how Covid has changed commerce in China, and what this means for Western businesses marketing in this vast and growing economy.

Changes to consumption patterns in the fashion industry

China’s affluent middle classes have long been fans of luxury fashion, but customers are now also demanding ethical manufacturing practices and eco-friendly business models, alongside the growing trend of personalisation. Chinese fashion houses are already using recycled packaging, sustainable fibres, green product development and other eco-friendly strategies to win and retain customers. They are also responding to the demand for customised production, with made-to-order products, personalisation options and bespoke experiences, all of which meet Chinese customers’ demands for unique, sustainable and value-driven brands that truly understand their needs.

Western brands operating in China have an opportunity to market their sustainability and environmentally-friendly credentials to win hearts and minds amongst socially-conscious consumers that like to display their values and credentials through ethical consumption.

Opportunities for Western Higher Education Institutions

Young Chinese graduates struggled to find work in 2021, as the graduates of 2020 were still seeking employment. As a result, many are looking to continue their studies to open up their opportunities as far as possible. A study in Hunan found that 21% of graduates were looking to continue their studies with postgraduate studies, with many considering courses overseas that would also expand their horizons and open up opportunities for work abroad.

Western HE institutions have a positive opportunity to promote their postgraduate programmes, including MBA, to Chinese graduates that are keen to delay entering the jobs market in China and who are equally keen to broaden their horizons in the international market.

International travel

Chinese travellers are desperate to resume their global travel habits and demand for international travel is growing once again, where local Covid regulations allow and facilitate international tourism. This offers a fantastic opportunity for Western destinations and for travel services, with rising demand and a strong desire to experience the best of life once again. Western travel destinations and services, such as hotels, restaurants, concierges and chauffeur services can provide reassurance on their Covid-safe practices, cleanliness and hygiene, excellent customer service and money-back guarantees for peace of mind, for example, if Covid prevents Chinese tourists from travelling once they have booked.

Mobile gaming booms

Mobile gaming figures in China grew faster than the country’s overall economic growth figures, reflecting the greater amount of home time that Chinese people were experiencing during lockdowns. And China’s love for high-tech, mass-participation, digital-enabled gaming continues as the market becomes increasingly sophisticated, dynamic and inclusive. Western gaming brands can leverage this trend with their own ready offerings, working with localisation experts to provide rich, targeted gaming experiences that will win new customers in this growth market.

Livestreaming is growing

Internet live streaming is enjoyed by over 400 million customers in China across over 200 platforms, each with its own target audience and purpose. Livestreaming allows Chinese customers to connect in real-time, and learn about new products and services from KOLs on Taobao, Tmall, Weibo, WeChat, JingDong, and Meipai, amongst others. The livestreaming trend certainly had a boost over lockdown, as connected Chinese customers found themselves at home with time on their hands – and with China’s burgeoning delivery industry able to operate and bring e-commerce purchases directly to addresses! This now-embedded trend is still growing fast and live streaming offers huge opportunities to Western brands who are keen to use KOLs to engage with potential customers and sell during campaigns and big events, such as Chinese festivals.

Digitisation touches every aspect of Chinese life

Research by McKinsey found that digitisation is now present in almost every aspect of Chinese life – far more so than in the West. On a typical day, a Chinese customer might buy their groceries online via Taobao, enjoy a mobile app workout with Nike, view property on Beike, communicate with work colleagues on DingTalk and game with friends over the internet.

Western brands can offer digital routes to their products and services via websites, apps and Chinese social media, with a ready audience keen to enjoy rich, targeted and meaningful content that adds real value to their lives, not to mention high-quality, sustainable and unique Western products. On that last point, it’s interesting to note too that younger Chinese customers, in particular, are showing a continued interest in shopping online, buying eco-friendly and safe products and also investing in products and services that boost their healthy lifestyles.

The Chinese marketing landscape is continuing to evolve

Western businesses must also be on the lookout for rapidly emerging trends in China and be ready to capitalise on them. For example, two post-Covid trends – outdoor lifestyle and health – have combined to create a new craze for cycling in China. In particular, young consumers are buying luxury bicycles and designer cycling apparel, and the lifestyle platform, Xiaohongshu (Little Red Book), has nearly a million cycling-related posts! These types of consumer trends offer fantastic opportunities for Western brands to market their products to ready customers in China, especially if they can expertly leverage their digital marketing channels to the best effect.

What this means for Western businesses

You have now understand how Covid has changed commerce in China. China might have experienced a 6% economic decline during the pandemic, but its subsequent recovery has been unstoppable, with its economic growth hitting 8.5pc in 2021. For Western brands, this market is still incredibly enticing and offers an undeniable chance to build a profitable overseas business for Chinese customers. Digital marketing remains the key to success in the Chinese netizen nation and because China’s technological capabilities are so advanced, digital marketing strategies need to be slick, carefully planned, expertly executed and designed to operate faultlessly across platforms that do not exist in the West – such as WeChat, Weibo, Little Red Book and Baidu.

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For Western brands seeking to engage Chinese customers and gain loyal Chinese followers to their brand, now is the perfect time to focus on strategies to win hearts and minds. The Chinese economy has rebounded strongly and Chinese customers are extremely motivated (and able) to seek out new products, to try new brands and experiences and to treat themselves to the products and services that they desire. Across fashion, beauty, health and wellbeing, education, travel and more, Chinese customers are highly motivated to consume, and they have the income to indulge their tastes.

So as a Western brand what should you be doing to engage Chinese customers in this brave new Covid world? These ideas will get you started.

1. Get back to basics

If your digital ecosystem isn’t yet optimised and ready to meet the demands of this tech-native audience, then now is the time to really invest and upgrade your assets. Make sure your website is smooth, slick, designed for Chinese UX and works perfectly on smartphones. Make sure it is hosted correctly and has Chinese targeted content that really resonates with your end audience. In many cases, simply dubbing or subtitling Western content won’t work for this audience. Chinese customers expect to see branding, content and campaigns that have been designed with their unique needs, wants and preferences in mind. And if you aren’t confident yet with your Chinese cultural symbols and assets, now is the time to up your game!

2. Really know your customer

Do you have user personas for your Chinese customers? If not, develop them. In some cases, you may need to refresh them entirely, for the needs, wants, desires and characteristics of your target audience may have changed in the last 18 months +. Market research is a great investment now to really know your target customer – to better serve that group. think of it as a means of boosting your ROI and avoiding unsuccessful campaigns.

3. Consider your post-Covid messaging

If you have physical elements to your service – perhaps if you work in travel or education for example, or if you sell physical products to China, really promote your safe business practices to provide certainty and comfort in the post-Covid world. This is important, to show that you respect and value the safety of your customers and that you are still working to maintain the health and wellbeing of your loyal customer base.

4. Say thank you

You may have customers who stuck with you through Covid and you may have new customers who are prepared to try your brand. In all cases, now is a great time to say thank you and to show a goodwill gesture that makes customers feel good and encourages them to see your brand in a favourable light. This could be something as simple as a discount, a competition or a loyalty offer of some kind.

5. Have some fun

Equally, why not take a moment to remind your Chinese audience about the fun in life. Celebrate your values and promote your sense of fun by launching a competition that will resonate with your audience in China- perhaps using social media and a KOL relationship for example. You could launch a special product colour or attribute for your Chinese customers, or a special edition linked to a forthcoming holiday. Digital stickers, photos and other ‘sendables’ are also very popular. The more you can be quirky, innovative and memorable when you create integrated digital marketing campaigns in China, the more successful you will be – so consider all angles from social platforms and integrated e-commerce offers to KOL relationships, strategic brand partnerships, PPC and ePR for the best possible results.

6. Think ‘micro’

The more you get to know your Chinese audience and become adept with the vast number of Chinese digital marketing channels in existence, the more you can move away from mass marketing (which is highly expensive and often fails to hit the mark against bigger brands) and begin to create more meaningful, niche and personal relationships with smaller groups of – often highly profitable – customers. Use technologies such as data mining and analytics to help you create highly defined, nice and targeted groups which represent a strong potential profit margin for you, and then use digital and social media groups, influencer campaigns, personal messaging, tailored offers, micro-campaigns and other intriguing forms of content and pinpointed offers to really create something special and meaningful. You will find that this kind of in-depth experience encourages customers to become loyal and to refer you to their own networks too for a brand reputation that grows powerfully and organically on the strength of referrals and word of mouth – something that is extremely important in China, where people greatly value the advice of their friends and family.

7. Show your values

Again, in the post-Covid world, the younger generation in particular in China wants to support brands that have a strong set of values – and values that are in line with their own. With this in mind, work on creating a business and proposition that is environmentally friendly, that is ethical, sustainable and that has a strong set of positive values that support Chinese values and aspirations. Show your respect, warmth and affection for China and its people! And at the same time, play on the values that matter for Western brands in China – heritage, quality, history and authenticity for example.

8. Get help!

The Chinese market is huge, growing rapidly and is perhaps even more complex in the post-Covid world thanks to its increasing fragmentation of consumer groups and proliferation of brands in its evolving economy. By using the services of a Chinese marketing agency you can avoid the typical pitfalls and ensure your marketing budget goes on creating a measurable return – rather than on waste! Contact Market Me China to find out how we can help you to succeed in China and how to engage successfully with your target customers in the post-Covid world, to convert fans to loyal customers and to build a profitable business in this fascinating, growing and hugely enticing market.

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The bounce-back cycle

Economists have noted that the epidemic created three main phases for the economy – peak, recovery and bounceback. China experienced its Covid peak from mid-January to mid-February. But by March, consumer confidence was rising once again and so was e-commerce sales. Chinese firms were able to identify each of the three stages of the pandemic cycle and respond to them with tailored, targeted strategies that expertly met customers’ changing needs. Let’s look into this in further detail and see what lessons Western brands can take from the Chinese e-commerce case study:

The three cycles that businesses in China quickly identified fell into:

1. The peak of the crisis – where disruption to livelihoods peaked and customers felt heavily anxious about the future.
2. A swift period of recovery, where business disruption remained common but consumer confidence was high.
3. The ‘business as usual’ bounceback, where consumers have been heavily buying to make up for lost time!

How Chinese businesses responded to each peak

The peak of the crisis

In the first phase of the epidemic, Chinese businesses adjusted their marketing strategies to show support, understanding and empathy as far as possible. Their message to all stakeholders was designed to emphasise this degree of care, rather than simply focusing on profits. To do this, Chinese brands looked for ways to show that everyone was in it together and to add meaningful value.

For example, UNIQLO provided health advice and built a supportive digital community, offering detailed guidance on staying safe, rather than sending the usual promotional and marketing messages. This won the hearts and minds of customers and built their loyalty and trust.

Lululemon was another brand that focused on empathy, engaging with their followers on a topic that was of key concern – how to stay fit and active whilst being locked down at home. To respond to this new need the brand used its in-house trainers to offer online yoga classes for free. The classes were offered via Douyin and WeChat Live Streaming, and again, the strategy built fantastic brand capital in the market and showed that the business meant more than just making profits.

Some brands focused quickly on providing their services in Covid-safe ways. For example, Starbucks rapidly installed a new zero-touch system of delivery that offered online orders with safe delivery. Detailed and caring instructions were also offered to help walk customers through the unfamiliar system.

Other brands offered their employees ways to earn more during the challenging period, with Only, Vero Modo and Jack & Jones (all owned by BESTSELLER, the Danish firm) offering their salespeople bonuses and commissions for any promotions made on WeChat, via a commission-based mini program. The new incentive caused sales via the WeChat mini program to boom.

Other brands were less savvy though. DangDang, the e-commerce platform, called its employees back to the office in February and leading to a negative PR crisis when an employee contracted the virus and forced 82 colleagues to enter quarantine. This shows how easy it was to make a bad PR move during the pandemic; and one that was difficult to overcome in the increasingly online world.

The recovery phase

At this point, and as the economy began to rebound, brands switched to making a more traditional sales-driven approach. Prada took the opportunity to build its online stores, creating Tmall flagship stores for Prada and MiuMiu and garnering thousands of followers within a fortnight. Other brands such as BMW and IKEA also launched Tmall stores at this time, with a vast influx of Chinese customers keen to engage and buy online.

The increase in online advertising costs was offset against the extra time that target customers were spending online and the lower cost of user acquisition – allowing many savvy brands to use the recovery period as a time to grow their follower base. Smart brands directed their marketing budgets to online marketing and other digital activities, recognising the lower cost to acquire at a time when more customers were online than usual. Overall, the cost of online advertising decreased dramatically after the COVID-19 epidemic, allowing fast-thinking brands to do more, and better.

Rebound

Daily life is returning to a new kind of normal, and customers are spending again. Shopping festivals are on the horizon, including Christmas, and influencers are heavily booked for forthcoming promotions. Brands are working hard in China to:

– invest in the acquisition of followers (making use of the lower acquisition costs)
– book influencer campaigns as far ahead as possible
– work with micro-influencers and promote product gifting campaigns to boost reviews and mentions
– develop new content-driven campaigns that meet the changing attitudes and optimism of customers post-Covid
– continue their socially responsible, supportive and values-led messaging wherever possible
– further investing in their digital ecosystem, recognising that it really is the future for Chinese customers.

The net result

Chinese firms have been incredibly creative to keep their businesses afloat and their customer base happy during the Coronavirus epidemic and subsequent recovery.

Many have invested heavily in market research and taken a step back to really review their strategies and to try new things – viewing the challenges they faced as an opportunity to try new digital strategies (such as Prada moving online after having a largely offline and retail-based presence before the epidemic.)

Chinese brands have also been investing in their digital channels, working hard to produce quality content and ensuring that they continue to leverage the early gains they achieved when building their follower base more rapidly than usual during the pandemic, when more people were online, for longer, each day.

What this means for Western brands

We all hope that we have seen the back of Covid, but the fact remains that challenges will always be around the corner for businesses and the most resilient brands will always have an attitude of flexibility, resilience and creativity in order to survive. Perhaps this is the most important message of all – to combine an evolving digital marketing strategy during times of change, with a mindset that says you can adjust, you can learn from what customers want, and you can find creative new ways of meeting t these new needs – and showing your customers that you really are all in it together!

Find out more

To learn more about how Market Me China can help you to achieve your digital marketing goals in China, please contact our friendly and professional team today. From Chinese website and online marketing to digital content development and influencer engagement, we evidence our results at every turn and can help businesses across all industries to enjoy measurable success in the lucrative China market. Please call us today for a no-obligation chat about your needs.

The post What does China’s Covid bounceback teach Western brands? appeared first on Market Me China®.

Optimism and growth

In its deep-dive report into the post-Covid Chinese economy (source: China consumer report 2021 – Understanding Chinese Consumers: Growth Engine of the World), consulting giant, McKinsey reminds Western marketers that China is placed to remain the world’s economic engine. Firstly, its consumers are more optimistic than in other parts of the world (50% reporting optimism, compared to 22% in the USA), and they have reason to be, as China has managed to gain a tight degree of control over further Covid outbreaks, even as other governments battle their second and even third waves.

Digital is accelerating

Secondly, the Chinese middle classes were already affluent, sophisticated and actively buying Western products and services before the pandemic, and the growing shift to digital marketing and eCommerce has only heightened this trend. Yes, overseas travel is limited – but China’s travel fans are already researching their next international trip. Yes, Western universities have moved a large degree of their provision online – but again, Chinese customers have the technology, the appetite and the readiness to engage with high-quality digital learning. And when it comes to eCommerce, the nation already leads the way with its greatly advanced digital infrastructure, which was perfectly poised to handle the migration to socially distance online shopping on a mass scale.

So let’s look at some of the main trends emerging in China as a result of Covid:

– 55% of Chinese customers say that they expect to keep buying groceries online.
– Beauty brands have also done exceptionally well online, leveraging their existing digital presence and ramping up their social engagement on platforms such as WeChat to better reach customers.
– 25% of customers tried remote learning and tutoring for their children in lockdown – something that Western education brands will do well to capitalise on in the longer term, as McKinsey’s research suggests that online learning is a trend set to stay.
– Similarly, Chinese customers began to heavily engage in other digital services such as online fitness programming and video chat, offering interesting opportunities to Western brands. The Chinese fitness app, KEEP, used Q&A fitness tools to achieve 56 million Chinese customer views in just one week!
– Naturally, food and beverage sales migrated heavily online during the crisis, but – again – McKinsey expects to see the ‘at home’ entertaining trend to remain strong into the future, in line with Western consumer trends post-Covid. Tsingtao used the pandemic lockdown to launch a no-contact delivery service across 300 cities with a huge level of success.

Customer behaviour trends

Other shifts in Chinese buying behaviour are being noted too. For example, Chinese shopping and consumption habits after Covid are more influenced by trust and product safety. Chinese customers are more concerned about their health and wellbeing than before the virus and are keen to continue to invest in positive lifestyles. 45% of Chinese customers are also doing more research before they buy products (in a nation already renowned for doing its post-product research carefully!) Western marketers can use this insight to provide rich, meaningful product descriptions and quality assurances that give Chinese customers trust and reassurance that they are buying authentic, high-quality products from reputable brands.

It’s also interesting to note that brand trust is becoming more important, along with the propensity to switch. A third of Chinese customers switched to a fresh brand during the pandemic, and 82% began buying from a brand because of the way that it carried out social, ethical and compassionate business practices during the pandemic. Again, these are interesting new directions that mirror growing trends in the West for ethical, sustainable business.

Takeaways for Western brands

Whatever your sector, now is certainly the time to invest in market research to understand how Covid has impacted on your business, your competitor landscape and your target customer audience. This is valuable to do before making any adjustments to your marketing strategy, to inform your next steps.

Certainly, digital marketing and e-commerce channels will continue to grow rapidly in China, and it looks as though Covid has accelerated this shift even more! Brands should be viewing their online strategy in China as a core part of their delivery model and look at omnichannel marketing strategies with clear digital key performance indicators to measure success.

Brands that operate in China must assess how they blend online and offline channels, including the use of e-commerce market places, direct-to-consumer channels, physical channels and social commerce, ascertaining whether each channel is being used to drive sales, to build brand awareness or to engage customers. This will assist with budget allocation.

Now is also a good time to review supply chains and check that existing supply networks are robust and ready to move ahead after the challenging year.

More broadly, this is also the time to begin thinking as broadly and creatively as possible as we approach a changing world and one where people have been greatly affected by Covid-19. Brands that spend time blue-sky thinking at this stage, carrying out targeted research and looking at case studies of what other innovative companies are doing well will find themselves well equipped to build a successful presence in China.

The help that you need

Market Me China is here to help you to succeed with your Chinese digital marketing – whatever your industry, experience or current position in the Chinese market. Our digital marketing professionals blend native language skills with rich digital experience in fields that span Chinese website build and optimisation, Baidu PPC advertising, Baidu SEO, social media development and advertising, KOL engagement, ePR, digital content management, market research and more.

We work remotely with our clients as required and evidence our results at every stage to demonstrate the value that we add to your brand. Please contact us in the first instance for a no obligation chat about your needs and we will be delighted to assist.

The post How has Covid reshaped Chinese shopping and consumption habits? appeared first on Market Me China®.

The opportunities for Western marketers are also excellent – for those who are prepared to understand their changing target markets and to invest in the right digital marketing strategies.

So with that in mind, what should Western brands know about Chinese customers in the post-Covid world? Here are five things to take on board:

1. Chinese customers are resilient – and optimistic

Chinese customers are hugely optimistic and resilient, particularly compared to their global trends. Research shows that they believe normality will resume in the world far quicker than counterparts from other parts of the world. This confidence has already helped China’s retail markets to rebound, and many analysts believe that Chinese customers could help drive the global recovery, not just their own domestic market recovery. This is great news for Western brands considering either a move into the Chinese market or a further investment to grow their position. China’s customers are open for business and ready to buy – so now really is the time to invest in your digital marketing strategy!

2. Younger Chinese customers are changing the way they shop

Younger Chinese customers are showing a strong desire to look after themselves after the effect of the pandemic. Health and wellness products are on the rise, and Gen Z customers in particular are watching how they spend their cash. This doesn’t mean that they intend to stop spending – many young middle-class Chinese customers enjoy subsidies from their parents as well as their own income – but they will be considering their purchases more carefully and dialling in impulse spending. This means that Western brands will need to build their brand awareness and digital engagement strategies for the longer term, focusing on values and brand credentials that really matter to their target audiences.

At the same time, Chinese customers across all consumer segments have begun to embrace ‘at home products‘ in a new way that has been driven by Covid restrictions. Many have indicated a desire to continue with these flexible digital services, such as at-home fitness streaming, remote learning and education, telemedicine and remote consultations and video chat. Again, this offers interesting opportunities to forward-thinking Western brands looking to build their business in China.

3. Chinese customers want luxury!

China’s customers still want the luxury, high-quality brands that symbolise status and taste; spelling good news for Western brands which can trade on values such as craftsmanship, heritage branding, authenticity, taste and superior quality. McKinsey estimates that China’s customers will represent 40% of the world market for luxury goods by 2025. Furthermore, 36% of Chinese customers have indicated that they will be willing to pay more money for quality goods that last the test of time in the post-Covid world. [1] For Western brands keen to capture a slice of the luxury goods market, an agency such as Market Me China can help greatly with everything from KOL partnering to branded content creation and online marketing campaigns.

4. Digital engagement is more important than ever

During the pandemic, B2C brands were able to take advantage of digital channels to great effect. Nike used its mobile apps to host home workouts to Chinese customers on lockdown, driving their engagement by 80% and their first-quarter online sales by over 30%. Similarly, Lululemon leveraged WeChat to boost its customer acquisition, and car brands used the live streaming features on Tmall and TikTok to market models to consumers, answer questions, promote key features and ultimately, to sell new cars – which were then dropped off at customer’s homes. It’s worth noting too that Taobao registered 30,000 new branded live-streaming accounts, growing its account volumes by 700%. [1] If you’re a Western brand looking to market in China, now is certainly the time to ramp-up your digital strategy!

5. Poor service is no longer tolerated

Research shows that Chinese customers are becoming tired of low-quality, sub-standard products. For example, customer complaints in Guangdong hit 98,000 in Q1 of 2020; a rise of 40%. [1] Customers in China are no longer willing to put up with bad products – or bad service. Again, this offers excellent opportunities for quality Western brands which are prepared to invest in their entire marketing offer; from product development through to post-purchase customer service. For example, look at beauty brands such as Estée Lauder and L’Oréal. who already use Chinese social channels such as WeChat to enable their Beauty Consultants to reach out and engage with potential customers to offer personalised advice, service, and content. Digital channels offer fantastic opportunities for Western brands who are prepared to invest in a great customer experience, with native Chinese language customer service agents, chatbots, apps, carefully-optimised websites and other digital approaches.

The help that you need

The digital marketing landscape in China can be complex and bewildering! The Chinese digital ecosystem is far bigger and arguably more complex than in the West, with existing competitive players already using sophisticated omnichannel marketing strategies to engage and convert their target audiences. But the good news is that now is the time to launch or grow your brand in China – with huge rewards and opportunities available for those who take the leap – and the team at Market Me China is here to help you succeed.

Our team of digital marketing professionals blend native Chinese language skills with in-depth digital marketing expertise – leveraging significant experience in the field to help our clients in education, eCommerce, B2B, travel and other sectors. We work on a flexible – and socially distanced – basis according to each client’s needs and evidence our value at every turn. Ready to build your brand sustainably and successfully in China? Please contact us for a no-obligation discussion about your needs.

Source
[1] China consumer report 2021 – Understanding Chinese Consumers: Growth Engine of the World, McKinsey

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After all, as McKinsey titled its China consumer report 2021 – Understanding Chinese Consumers: Growth Engine of the World, China is the world’s growth engine, and savvy Western brands are determined to be part of its success story!

1. Digitisation is bigger than ever

Covid has accelerated digital adoption in China, not only in B2C markets but also B2B processes and markets. Before the pandemic, China led the way in digital B2C with 45% of the world’s total e-commerce transactions and a mobile payments penetration rate 300% greater than the US. However, this looks set to grow further. For example, McKinsey found that 55% of Chinese customers will continue to buy groceries online and Nike experienced a 30% year on year digital sales growth after it launched its app-based home workouts.

2. Greater domestic trade

China’s global exposure has been declining over the past couple of years, particularly as Chinese-US tensions grew under President Trump, and as its domestic markets became incredibly strong and perfectly able to meet consumer demand. However, this isn’t to say that global brands will find themselves made irrelevant by home-grown Chinese competition. The burgeoning Chinese middle classes are still clamouring for luxury, heritage and desirable Western brands and with the Chinese economy set to grow in 2021, sales are expected to strengthen in this already powerful market.

3. Competitiveness is set to grow

China is already heavily competitive, but this degree of competitiveness is expected to grow. Smaller brands who have not invested in the right digital infrastructure – or who are not prepared to invest in a way that allows them to compete in the increasingly online world are likely to find that their sales erode. Large parts of the Western economy are expected to rocket back into action in 2021 – in Britain, for example, the Chancellor has described the economy as a coiled-up spring, waiting for lockdown restrictions to end to begin full and open trade once again. This means that businesses operating in China are likely to be strategising hard and preparing to invest in their e-commerce and digital channels to grab and secure a slice of their target Chinese market. Be prepared to move fast, and move hard in the fight for Chinese consumer spend!

4. Chinese consumers are maturing

The young and affluent generation in China has grown up without experiencing a domestic economic downturn of any kind. Now, the experience of Covid is encouraging them to spend more wisely, to save more and to choose better quality products that support their health and wellbeing. Again, this offers an excellent opportunity to Western brands which can exemplify these attributes and quality in their product offerings. For example, McKinsey found that 70% of younger Chinese customers are expecting to actively seek out eco-friendly, safe and healthy products – and to spend where these quality attributes are evident.

5. Private and social sectors are considering their impact

A number of big Chinese brands, such as WeChat and AliPay, played a crucial role in supporting the government’s efforts to control Covid by supporting a QR code health app rollout. The Bill & Melinda Gates Foundation notably donated millions in aid to support efforts to tackle the virus and its effects on poor communities across the world. Savvy brands in China are waking up to the fact that social marketing is big business and that educated customers want to patronise brands which are sustainable and which make a positive impact in the world. From supporting charities and eco-friendly initiatives to developing products which tackle carbon emissions, Western brands should consider how they integrate these social benefits into their marketing and their overall business plans, to make a difference – as well as a profit.

6. Chinese customers are ready to spend!

Research by McKinsey has also found that Chinese customers are feeling buoyed by the way that the country handled the pandemic, and are now feeling confident, optimistic and, above all else, ready to spend! After living through lifestyle restrictions and often onerous lockdowns, these consumers are ready to enjoy and appreciate life once again. This means that they want to treat themselves, to pursue interests and passions, to upgrade their lifestyles and to enjoy the best of things.

Western brands in sectors such as beauty, homecare, wellness, interior decor, fitness, lifestyle and – hopefully as the year progresses – travel, will find themselves extremely well placed to benefit from this surge forwards to a restored marketplace. Those in education are also likely to find a fresh spike in enquiries from prospective students looking to pursue their ambitions once again. Importantly, too, Chinese customers look ready to engage with new brands once again, especially as supply chains begin to operate freely again, and as delays and supply projects begin to resolve.

Marketing your brand in the post-Covid world

At Market Me China, we can feel the optimism of the Chinese markets, and we see how Chinese customers are spending freely once again. Our clients are launching back into strategy planning and delivery mode in response, with fresh campaigns, improved digital assets and a determination to capture lucrative segments of their target Chinese markets. The time to act is now, with Western brands already working hard to capture Chinese customers and to build brand recognition and loyalty using highly-effective, omnichannel digital strategies with the power to convert leads to sales.

Contact us

The digital marketing team at Market Me China is here to help you achieve success in the Chinese market, with a highly experienced and skilled digital marketing team that blends together native Chinese and Western marketers into a highly impactful, results-focused team. We work according to each client’s needs and evidence our value at every turn. To find out more about how we might assist you, please contact our friendly and helpful team today for a no-obligation chat.

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Check your brand

Before launching your digital marketing campaign, check that your HE and MBA brand is designed to appeal to your Chinese audience. This may mean adjusting your brand assets slightly – considering the logo, colour usage and any graphical elements that encapsulate your offer. Remember that what works in the West will not automatically work in China!

Define your offer

Yes, you deliver an online MBA – but so do many institutions. How does yours stand out? Do you have better employment progressions? Do you offer the chance for digital students to come together to network at physical events periodically? Do you offer enhanced services or career-focused content that takes the course further? Do you incorporate the opportunity for work placements and facilitate these? Research what Chinese MBA students really want and seek to deliver it.

Define your USPs

Quality is a key attribute here – Chinese students (and their parents) want to know that they are obtaining an MBA from a well-known institution with an excellent reputation in the field. To support your USPs focus on quality marks, results, alumni, onward employment destinations and other quality indicators which prove your standing in the field.

Specifically for an online MBA, talk about the quality of your technology and digital infrastructure, the experience that students receive, the ways that you create a sense of student community online, and the value of this type of online learning in order to achieve an MBA in a flexible way. A defined set of USPs will also enhance your content and communications plan.

Win over parents!

In the West, many students may choose their preferred course or university independently, but in China, a student’s parents are likely to be involved in the decision-making process. With this in mind, focus on dual messaging which appeals to parental interests as well as student needs. An example of this would include content which demonstrates the ROI of an online MBA (particularly to parents who may be funding the qualification), and which describes the key benefits of studying online (perhaps the ability to study whilst working and likely employment outcomes.) It is also important to show that customer service professionals, student support services, work placement facilitators and other university staff are on hand digitally to help provide that all-important experience – and post-study employment progressions.

Don’t skimp on information

The choice of online MBA isn’t one that Chinese students will take lightly, so provide plenty of information about the course, noting that Chinese consumers appreciate in-depth information and carry out significant research before undertaking a purchase decision. Anticipate questions that your Chinese target audience are likely to have, and provide answers in written and video format – always ensuring that content is optimised for mobile. Provide contact routes too and consider adding features such as chatbots or online agent pop-ups throughout your website to further guide prospects along the funnel.

Work your content!

Use your key messages to create cross-platform and multi-media content – from press releases and static website content, through to videos, online adverts, sharable influencer content and so forth. Repurpose your content where possible for economies of scale and to extend the reach and impact of what you produce.

Focus on your digital hub

Whether your existing website has been localised for China or made bespoke for your audience, now is the time to check that everything works as it should. From local hosting to smartphone optimisation, your website must operate quickly, be SEO optimised, and have the right user journeys for Chinese readers – with clear CTAs and full integration with your social channels. A Chinese digital marketing agency can help you with this, starting with an assessment of your digital assets and helping you to create an impactful, effective digital hub that meets your goals.

Invest in your social media

Most Western HE institutions will want to have WeChat, Weibo and DouYin accounts, but other emerging platforms may also be appropriate, and your research will help to reveal where your target audience are – and how you should reach them. Bespoke customer research can identify factors that go beyond basic age and status demographics and which include city tiers, income and other key criteria that help to define your target audience. With this insight in place, you can engage with the right Key Opinion Leaders (KOLs) who can present your MBA offer to their own followers, via sponsorship, placement or direct promotion. Again, the key to success on social media is to create inspiring, meaningful and engaging content which will position the prestige, value and convenience of your online MBA to your target audience and create that all-important feeling of desire and action to find out more.

Leverage your online advertising

Baidu PPC is the key route to rapidly gaining qualified traffic in a short amount of time. Remember that Chinese consumers find online advertising useful and a sign of quality and reputation. To keep a handle on your budget, especially when competing against other Western online MBA providers, work carefully to really pin down targeted keywords and to ensure your offer is highly visible for relevant searches. Equally, ensure that your adverts are converting relevant traffic by measuring their performance throughout the campaign, and check that they are pointing to the correct landing page. As Baidu is a Chinese website, it’s easy to make an error if you don’t have native language skills!

Use ePR

Your online MBA gives Chinese students the chance to enjoy the same quality course, student experience and tutor access as they would studying in-person – but without the time, cost and travel commitments of a physical course. An eMBA is likely to appeal even more in the post-Covid world where travel restrictions may well continue and interrupt physical learning. Online MBAs also represent a modern, digitally-enabled way of learning for a new generation. The right ePR strategy can help you to promote your course in a highly engaging, pre-qualified way through reputable media channels, portals and websites that Chinese audience value. You can build brand recognition, trust and word-of-mouth marketing with this channel.

Provide a taster

Think creatively to provide appealing incentives to your prospective audience. For example, you could offer free trial access to an MBA course module, deliver an interactive lecture with a tutor to a group of prospective sign-ups, follow an alumni member from graduation to that all-important career outcome and so forth.

Get the help that you need

Market Me China has rich experience in the education field and can help Western institutions to effectively market their online MBAs in the Post-Covid, ‘new normal’ world. Our professionals deliver effective, integrated digital marketing strategies that deliver clear results for our clients. Please contact us in the first instance for a no-obligation chat about your needs.

The post How to target Chinese students for your online MBA in the new normal world? appeared first on Market Me China®.

The Chinese luxury market after Covid

The good news is that China’s market is strong and buoyant and its luxury retail markets are already picking up once again, with Chinese customers keen to purchase quality, authentic Western brands to show their taste and affluence. Studies show that Chinese customers are feeling optimistic about their economic prospects, with most expecting to enjoy higher levels of disposable income and wealth in the coming months, compared to the start of the year.

What are Chinese luxury customers buying?

As international travel is currently curtailed, Chinese customers are keen to indulge themselves with luxury shopping sprees – particularly in clothing, makeup and skincare lines, along with jewellery and high-end technology. And, with Covid still very much present, these affluent customers are keen to shop online and to enjoy products from their favourite Western brands, favouring fewer – but higher-quality – purchases that show their taste and awareness of key social trends, such as sustainability. Let’s look at how this translates into a series of key emerging trends that Western marketers should know:

1. Options for greater flexibility

Georgio Armani recently announced that he planned to move away from the twice-yearly fashion shows of old and embrace digital showcasing options according to his own schedule. This may well set a trend for luxury fashion and aligned industries. Customers may be less inclined to travel to fashion shows for both health, environmental and image reasons. This could mean an end to seasonal collections (a strategy already successfully employed by Moncler Genius.) At the same time, digital marketing channels mean that brands can use social media and their own digital eco-system to showcase products to customers whenever they want.

2. A desire for longevity and meaning

Millennials in China have long loved to purchase luxury goods, but early trends suggest that they are shifting their focus towards more durable, environmentally-friendly products, driven by a growing awareness of sustainability and a desire to be seen as ‘green’. At the same time, these younger generations will be reshaping their world-views after their first taste of privation. Their assumptions that economic growth and success will continue in an upward trajectory will have been challenged and their views of the world are likely to be adjusting. As a result, luxury brands should focus on purpose, values, meaningful experiences and storytelling with a focus on authenticity and heritage.

One immediate expected shift in the luxury goods markets? Prominent logos are expected to become a thing of the past, as conspicuous consumption takes a backburner for more discreet luxury appreciation. The good news for Western luxury brands? It’s far harder for counterfeiters to make convincing replicas without resorting to overt logos, which should help to protect the integrity of your brand in China.

3. Potential new business models

Wasteful fashion has become a hot topic and luxury brands are keen to distance themselves from images of landfill and poorly-paid workers in sweatshop environments. This means that the circular economy is a hot new trend and firms such as Panoply and Rent the Runway are becoming desirable. In the UK, luxury retail brand, Selfridges, has shared its intention to create a circular retail economy at the highest level with resell, repair, rental and refill options for customers – partnering with a peer-to-peer rental brand, Hurr, to create its luxury circular retail model. Expect Chinese luxury brands to also begin releasing their own worldviews of circularity – with lucrative partnerships and interesting new revenue models both all to play for.

4. Greater agility

Covid-19 demonstrated how unprepared the business world was to systematic uncertainty and risk. This means that luxury brands will be working hard to embrace creative thinking, agility and flexibility at their very hearts. Expect to see a movement towards more diverse, agile business models which can make rapid shifts as market conditions require. Western brands which can adopt similar leadership strategies are far more likely to survive and thrive in this new post-pandemic world.

5. A willingness to ‘buy Chinese’

The ‘Made in China’ campaign was powerful during Covid, and Chinese luxury brands have been heavily favoured during the pandemic – particularly as the country’s trade war continues with America. This could offer interesting opportunities to Western luxury brands who are keen to create fresh retail models and to work in China with complementary partnerships.

6. A passion for ‘Wellness’

The wellness market has been strong in the West for some time, and now it’s a huge trend in China too, especially amongst younger buyers. Chinese consumption is driven by myriad factors, such as identity, emotion and social connection – but the old desire to show wealth and economic success is now slowly being replaced by a desire to be fit, well and happy. This will be visible in greater sales of athleisure clothing, loungewear and home leisure luxury goods.

The takeaway for Western brands

Luxury Western brands cannot move past these uncertain times with old strategies and tired tactics. The world has been fundamentally adjusted by Covid-19, so those firms that can be flexible, agile and – above all else – ready to embrace meaningful, evidence-based change – can enjoy real success in China. To find out how Market Me China can help your luxury brand to thrive in China’s post-Covid market, contact our team for a no-obligation chat about your needs. Our team of digital marketing experts are ready to help and able to work using virtual tools to maintain social-distancing whilst delivering evidence-based results at every turn.

The post What will Chinese luxury consumers want in the post-Covid world? appeared first on Market Me China®.

One way that Higher Education institutions are responding to this change is to offer a greater range of online courses. HE institutions across the West are still extremely keen to attract Chinese students, and can now offer many of their programmes online, including eMBA courses.

How how can those colleges and universities promote their online courses, including the prestigious MBA as an eMBA, to Chinese students?

Think about your offer

The delivery may be online – but the quality is still 100% in place. This matters greatly to the Chinese market, which views Western brands as being high-quality. Now is the time to really reinforce the message of prestige and value, and demonstrate that the online qualification is worth just the same to a graduate’s CV.

Remember your dual audience

When you market a university to a Chinese audience, it isn’t just the students you need to get on board; it’s their parents too! With this in mind, choose channels and messages which parents will respond to. For example, a Chinese student may want to know about the course content and how they can enjoy the social experience of being at university without being physically present. A parent may want to know about the likely employment outcomes and the prestige of the institution.

Plan content

With this in mind, create a plan of regular and cross-channel Chinese content which resonates with each audience. For parents, present plenty of high-quality content in Chinese. For students, there will be more flexibility over language presentation as courses will be delivered in English. But it’s still important to present some information in Chinese to show that you are welcoming and culturally sensitive.

Consider other local factors too. Chinese customers love to do their research and value recommendations from their peers. They are also naturally risk-averse. So respond to this with the use of visible trust marks and accreditations, case studies, partner information, alumni stories and recommendations, employment prospects and so forth. Consider being present and active in online forums so that students and parents can ask questions, and allow your trusted alumni to act as ambassadors on your institution’s behalf.

Optimise your digital hub

If you don’t yet have a Chinese localised – or bespoke Chinese – website, then now is the time to take this forward. Ensure your website is smartphone optimised and locally hosted. Check that it is responsive and operates quickly, with correct meta descriptions, tags and keyword-rich language so that Baidu can rank your new online courses correctly for your target audience. Check that the user journeys work for your Chinese users.

Think about social media

Check that you have the right social media accounts in place for your target audience. The obvious ones may be WeChat, Weibo and DouYin, but there are multiple other growing social platforms which are more appropriate to your HE institution and offer. Do your research to see where your potential customers are, and what they are using. Consider not just age, but factors such as regional demographics and city tiers. Look at Key Opinion Leaders (KOLs) who might have relevance for your offer, and who may be able to offer an appropriate form of sponsorship and promotion of your e-courses to their own followers. Create engaging, beautiful content which displays the calibre and prestige of your institution, the campus itself, the students, the employment outcomes and so forth. Use beautiful imagery, engaging stories, inspiring facts and a blend of content that brings the university to life. Display the high-tech nature of your courses, the excellent online experience and the value of e-learning to achieve that all-important qualification.

Set up your Baidu PPC campaign

The right online advertising campaign will rapidly give you qualified leads – especially when you remember that online advertising in China is viewed as useful and positive, rather than a distracting irritation, as it is in the West! A Chinese digital marketing agency can help you to create your campaigns on Baidu using the right keywords and parameters, to maximise the return on your budget.

Check your Chinese SEO

Search will take longer to build for your online courses, but work on the existing SEO gains you have made in China for your institution and add in rich keywords for your online courses. This will build over time, as your relevant keywords are incorporated into your content and advertising.

Use ePR

Now is a great time to really promote the benefits of your online courses. For example, when students take your eMBA or other higher institution qualifications, they can access the same high-quality course, tutors, lectures and student experience – without needing to travel to the West. This can be a safer option in the post-Covid world, and a less expensive one too, without the need to move away from home. Promote benefits such as flexibility of learning and the ability to still be part of a vibrant social and educational network via the university’s digital platforms, and promote the level of support and help that students will receive via digital means. This is a fantastic opportunity to really sell the benefits of digital learning to a new generation.

Test the offer

Allow potential students to really get a sense of your online offer. Give demos of the e-course learning experience, allow students to dial into example lectures and 121s with tutors. Display the technologies and platforms on offer. Provide a superb online customer experience at every turn, with online chat, email and phone options to reassure students and parents alike that the online course will offer the same ability to succeed and to gain a valuable qualification, as the physical alternative.

Get help

A Chinese digital marketing agency can greatly help you with your online marketing strategy for Chinese students and parents. At Market Me China, we work with HE institutions across the West to effectively reach the Chinese market and to win new customers. Our team of experts works flexibly with your brand to provide digital marketing services, evidenced at every turn to demonstrate ROI. Now is the perfect time to plan your campaign, before the main summer period. Please contact us to find out more, and to see how we can help you.

The post How to target Chinese students for your online courses in the post Covid-19 world appeared first on Market Me China®.

Timing-wise, it’s also interesting to note that China is already starting to come out of its quarantine period, and early economic indicators suggest that it is experiencing a rapid market rebound, with pent up demand and supply both being released at speed. Just look at the flagship Hermès boutique in Guangzhou, which raked in a whopping $2.7 billion in one day of re-opening, as VIPs flocked to the designer store for bags, shoes and other high-end fashion items.

With this in mind, let’s take a look at how Western brands can position themselves for success in a world adapting to Covid-19.

Which sectors can benefit?

A sizeable number of sectors can migrate from offline to online delivery. For example:

– Retail businesses can grow their e-commerce provision
– Education establishments can offer online courses, such as MBAs which are always popular when delivered flexibly online.
– Brands can create profitable new revenue streams by selling digital assets such as images.
– Travel brands can encourage Chinese customers to start thinking about their post-lockdown travel and holiday plans.

Case study: JD.Com

Already, around 20 Western luxury brands have taken steps to open e-commerce stores on JD.com, the Chinese e-commerce platform, since concerns about Coronavirus began to take hold across the world. For example, by far, the Italian designer fashion brand, sold 65% of its stock in just four days, and around 90% within a month of creating its online store at JD.com.

Practical steps to take

Do your research

The lucrative Chinese market is growing and changing all of the time, with demographics that evolve as the economy becomes more globalised. The impact of the Coronavirus is likely to change these factors again; particularly when it comes to factors such as disposable buying power and attitudes towards media content. Now is the time to carry out research to better understand the unique needs, wants and desires of your target Chinese customers.

Choose the right platforms for e-commerce

Chinese e-commerce marketplaces such as Tmall,  JD.Com offer various advantages to Western brands wishing to develop their e-commerce capabilities fast, from ready template stores through to flexible fulfilment options and bespoke Covid-19 support programmes for their business customers. Chinese social media platforms also offer ecommerce integration; whether that’s through an in-app prompt within Little Red Book, or linked via advertising on a platform such as WeChat. Assess which platforms are right for your brand and set up your store for a ready route into Chinese e-commerce.

Think social

Every Western brand needs a strong presence on Chinese social media. Chinese customers will spend hours on their favourite platforms, whether that’s to consume, create and share content, network, post reviews, contribute to forums or engage with brands. There are dozens of Chinese social media platforms, from the giants such as WeChat, Weibo and YouKu through to Little Red Book and DouYin (TikTok). It’s important for Western brands to create official accounts on the platforms that their Chinese target audience and to create fresh, relevant and meaningful content. Remember, content is arguably even more important in China than it is in the West, so it’s a time investment well worth making.

Pick your KOLs

Use this time to think ahead and assess whether you are getting the most from Key Opinion Leaders. Whatever your industry and budget, there will be a KOL for you. These powerful online influencers work with brands on a partnership basis to carry out a variety of promotional activities, such as product placement, reviews, recommendations, competition launches and so forth. A Chinese marketing agency can help you to find the right KOL and broker a sponsorship arrangement that will give your brand the right exposure and return.

Get your website in shape

Do you have a Chinese language website that has been built for your Chinese audience? Are you creating bespoke content or translating your Western brand content? Do you have an app for your Chinese audience? Are your landing pages working, and are your user journeys optimised for Chinese user needs and online behaviours? Now is the time to develop your digital assets so that they are primed and ready to go once the Chinese economy is fully open for business again.

Look at Baidu PPC and SEO

Now is also a good time to ramp up your PPC advertising and SEO activities with Baidu. Once your website is optimised, set up targeted online PPC campaigns and begin to invest in long-term white-hat SEO that will build your brand’s rankings against relevant search terms. Again, a Chinese marketing agency can help you to do this in the right way, to set goals and to measure the effectiveness of your campaigns with performance analytics.

Consider your ePR

Chinese customers tend to distrust official media outlets but they are keen to consume quality content that adds value to their lives, and they enjoy excellent branded content that is fun, relevant and meaningful. A good Chinese ePR strategy can place your brand and its messaging in the right print and online media publications and ensure that it is seen by your target audience. This is essential to build your brand sustainably and to gain credibility and a strong reputation.

The Chinese marketing help that you need

Market Me China works with Western brands who are keen to build their presence profitably and successfully in China. Whether you operate in education, travel, retail or another sector, our team of digital experts can help you to craft and deliver a Chinese digital marketing strategy that provides measurable returns. Please contact us to find out more.

The post How to market to Chinese online users in the Post Covid-19 world appeared first on Market Me China®.