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Digital Marketing in China: our top stories for August 2020

September 8, 2020 |   Christine Lee

This month, we cover a broad range of topics, starting with Douyin’s announcement to gradually cut ties with third party platforms to increase their own e-commerce market share. We also take a look at what affluent consumers want post COVID-19 and what’s behind the ‘escaped Disney princess’ craze. Finally, we take a look at new developments in the WeChat ban announcement by the Trump administration and a research study about the credibility of labels on Australian beef.

1. To win e-commerce, Douyin cuts off third-party sellers

Douyin has announced it would gradually cut ties with third-party platforms such as JD.com and Taobao. Consumers will be unable to purchase products on third party sites through Douyin’s livestreaming channel. As of September 9th, live streamers must place an order with a Douyin-owned service platform to be able to use a third-platform purchase link, and a service fee will be applied.

By cutting off third-party platforms, Douyin can stop its reliance on these platforms in order to create a larger selling space for its own shop. When Douyin first launched its e-commerce sector, Taobao was its primary partner. But now with growing popularity, and 500 million monthly active users, Douyin is leveraging its traffic and raising the stakes for e-commerce.

Read more at Jing Daily

Learn more about 5 ways marketers can take advantage of the Douyin app

2. Trump adminstration signals U.S. firms can use WeChat in China 

The Trump administration is privately seeking to reassure large U.S. companies that they will still be able to continue running their business on WeChat after President Donald Trump ordered a U.S. ban on the Chinese owned service. Senior administration officials realised that the impact of an all out ban on the popular app, could be devastating for U.S. technology, retail, gaming, telecommunications, and other industries. For example, companies like Apple relies heavily on China for a large chunk of its manufacturing and sales, which could be impacted by the hypothetical WeChat ban.

The Administration is still working through the technical implications of how to possibly enforce a partial ban on the app.

Read more at Bloomberg

Learn more about How to use WeChat for business

3. Labelling beef: 'Australian Made' label no longer enough to convince Chinese consumers

A study published by the Queensland University of Technology (QUT) explored the attitudes and preferences about blockchain-credentialed beef exports to China. In this study, an online survey was conducted in four Chinese cities, Shanghai, Shenzhen, Beijing, and Guangzhou, collecting a total of 113 responses. Research results found that most Chinese consumers did not have full trust in the labelling of the beef. Because China is notorious for food frauds, steak labelled “Australian cut and packaged beef” are not fully trusted by Chinese consumers. Research data also shows that Chinese consumers prefer Australian beef that is portion cut and packed in Australia as opposed to portion cut and packed in China due to past counterfeiting concerns and substitution in Chinese processing plants.

The findings also revealed that consumers in China were willing to pay more for blockchain credentialed Australian beef. On average, consumers were willing to pay between US $4.40 and US $8.10 more than the reference price. When asked for recommendations, consumers suggested additional information on packing expiry date, cold chain integrity, cooking instructions and information about the cattle.

Read more at Food Navigator Asia

Learn more about things B2B companies must do when entering the Chinese market

4. Here's why 'Princess style' is all the rage with China's Gen Z

For decades, Disney princesses have been an inspiration to young girls around the world. Now, young adults in China have become obsessed with the feminine archetypes due to recent internet trends. China’s Gen-Z netizens are proclaiming themselves to be “escaped Disney princesses” and are showing off their princess style fashions.

On Little Red Book, there are over 10,000 posts tagged with the newly invented phrase. Brands such as Miu Miu and JW Anderson have created dreamy princess like designs in recent seasons to capture the attention of China’s Gen Z. Many female Gen Zers in China have caught on to the trend of having filters, clothing and makeup influenced by “kawaii” style, Japan’s culture of cuteness. So, its not surprising that this trend is taking off with a digitally native generation.

Read more at Campaign

Learn more about Social media advertising in China

5. What China's affluent consumer want post COVID-19

Research conducted by consulting firm Agility Research & strategy just released its second Wave Of The Trend Lens consumer study, a follow up to the initial series of interviews conducted in January/early February, at the beginning of the COVID-19 pandemic. The results of the study shows that post pandemic, China has emerged as a resilient market and one that seems to be a bright spot for luxury brands this year. Along with China, affluent consumers from Indonesia and India are also an optimistic target, while Malaysians, Japanese and Singaporeans seemed more cautious about their economic status and are looking to cut back on their spending.

Read more at Jing Daily

Learn more about Marketing to Chinese Woman: what challenges they face and how brands can address this

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