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Digital Marketing in China: our top stories for April 2020

May 6, 2020 |   Christine Lee

This month, we highlight articles about China’s recovery in the luxury and e-commerce market and how China is stabilising trade amid COVID-19. We then go through the six emotional stages of recovery the Chinese population is experiencing. We then discuss the importance of continuing student recruitment for 2021 and finally, we take a look at how China is revolutionising e-commerce with entertainment.

1. China's six emotional stages of recovery

The outbreak of COVID-19 has caused immense change in Chinese consumers. Similar to the five stages of grief identified by psychiatrists, Chinese consumers are going through six emotional stages in in response to the pandemic. These includes disbelief, preparation, adjustment, acclimatisation, endurance, and anticipation. For example, if consumers have insecurities about their financial situation, they are more likely to switch between brands to find a low-cost alternative to their usual choice. This article describes how the pandemic has caused an emotional strain on the Chinese population and shares the psychological science behind the population’s actions at each stage.

Read more at WARC

Learn more about the Chinese market

2. Early signs of recovery in China's luxury market

As China emerges from its COVID-19 crisis, recent data has shown optimistic signs for luxury retailers. Although sales in the first quarter has heavily plummeted, it has been reported that during this recovery period sales have risen on its year on year sales. But CFO of Kering, a company who owns Gucci, Saint Laurent and Balenciaga, Jean-Marc Duplaix has warned that this trend is only temporary. He states that in order to keep up with the digitally evolving market, businesses will require a long-term commitment and a precise acquisition strategy. 

Read more at WARC

Learn more about why a growth mindset is necessary for digital marketing

3. International student recruitment for 2021 and beyond

Higher education institutions have been heavily affected by the travel restrictions and social distancing regulations designed to stop the spread of COVID-19. Although institutions have made significant effort in moving classes online for current students, there is still great uncertainty for prospective students. Chris Strodes, market research and data manger at QS said their research showed two-thirds of prospective students are unsure what this pandemic will mean for their international study plans. Although data has shown much uncertainty, Strodes says it is vital for institutions to not neglect their pipeline of international student and recruitment for 2021.

Strodes also talks about the three principles institutions should follow in response to the pandemic. It is suggested that higher education institutions should expect to do more with less in the coming months in order to maintain a strong pipeline of international students. Secondly, having the flexibility and ability to adapt to change. For example, giving the flexibility for entry requirements for prospective students. The third principle touches on giving certainty to students and families in a time of uncertainty. To be able to give students options such as a refund policy or flexible scheduling will be highly advantageous in attracting prospective students. It is clear right now that we are operating in uncharted territory, but by giving validation and certainty in our new normal, it can definitely help with international student recruitment for the coming years.

Read more at The Pie News

Learn more about Chinese International students and recruitment

4. How China is revolutionising e-commerce with entertainment

With most of the population confined to their homes, many have become reliant on e-commerce. The e-commerce sector has seen a great surge in business, and this will most likely continue into the future. Even before the pandemic, there has been a development of two key trends in China that is radically changing the e-commerce scene, this includes social buying and live commerce.

Social buying

Founded in 2015, PinDuoDuo is the second largest e-commerce company following Alibaba. Through PinDuoDuo, consumers can buy a product immediately at market price, or can enjoy lower prices by referring others. By collaborating with others to purchase in bulk, it allows consumers to purchase products at lower price. The more people sign up, the larger the discount. This way of buying also provides benefits for manufacturers and factories as “Pin factories” have popped up to produce large quantities for PinDuoDuo. Due to the scale of operations, they are able to offer bulk discount to consumers.

Live commerce

Live commerce is the convergence of live streaming and e-commerce usually driven by celebrities. This has become very popular with Chinese consumers due to the personable interactions between the brand and audience. Live commerce drives higher conversion rates than traditional content-driven platforms. Due to the recent obligations for social isolation, the live commerce industry has been popular as it creates an option of entertainment and shopping for those at home.

Chinas e-commerce industry is constantly evolving and adapting to consumers need. At a time where businesses are struggling, e-commerce platforms have seen great growth. By combining e-commerce and entertainment, it captures the attention of consumers and fills the need of shopping for consumers.

Read more at The Conversation

Learn more about Chinese e-commerce sites

5. Stabilising trade amid COVID-19

Amid the outbreak of COVID-19, China has decided to trial 46 new CBEC zones to further encourage imported goods in hopes to stabilise the economy. CBEC zones allow foreign companies to import their products into China without going through the customs and related inspection procedures. They will also implement preferential policies like exemption of value-added tax, consumption tax, and income tax for retail export goods within the zone.

The Chinese government wants to encourage international companies in considering CBEC business. By intensifying the market competition, it will push domestic companies in creating more quality products to compete with foreign brands. For example, China’s dietary supplement industry has improved, but still has a long way to go. And with creating more CBEC pilot zones, this will push local companies to push their product to achieve excellence. In the end by speeding up competition, it will benefit the entire industry.

Read more at Nutra-ingredients Asia

Learn more about trends in Australian exports to China

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