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Digital Marketing in China: our top stories for November 2019

December 13, 2019 |   Christine Lee

This month we highlight articles on why Chinese students still choose to study in the US despite hostilities, the potential acquisition of Tiffany & Co by LVMH,  the extravagant sales figures seen on Alibaba’s Singles’ day, shifts in Chinese luxury consumption and why China loves Dyson.

1. Chinese still choosing to study in US despite hostilities - but growth of the trend slows sharply

As reported by South China Morning Post.

Chinese international students are the largest group of foreign students in the US and have been for the previous 10 years. Chinese students are selecting to attend universities in the US due to their prestigious institutions as well as increased job opportunities.  With recent talks regarding the tightening of visas making it harder for Chinese students to enter the US to undertake a degree, students still see the US as a great place to study.

As reported by South China Morning Post, foreign students contributed $44.7 billion to the US economy in 2018 and most of these students choose science, technology, engineering and maths (STEM) subjects.  Due to hostilities with the U.S. and China talk about blocking Chinese nationals from “sensitive” research projects.

Read more at South China Morning Post.

Learn more about the Chinese Education Market

2. Acquiring Tiffany Could be a China Masterstroke for LVMH

As reported by Jing Daily.

The potential acquisition of Tiffany & Co by French luxury giant LVMH has accentuated a great prospect for the critical China market especially in the fast growing bridal and wedding jewelry segment.

According to a report in Jing Daily, snapping up Tiffany would open the door even wider for LVMH to capitalise on Chinese consumer spending both in mainland China and North America, building its hard luxury revenue from Chinese tourists, students, and recent immigrants who look to buy brands “at the source.”

Read more on Jing Daily.

Learn more about Chinese luxury consumers.

3. China spends $22b in first 9 hours of Alibaba’s Singles Day

As reported by Tech In Asia.

Singles’ Day has rapidly grown momentum since its conception by Alibaba in 2009 as a promotional campaign. The popularity of this elaborate event has seen immense growth with figures from the last Single’s Day being 400x higher than sales figures from the 2009 event.

According to a report by Tech In Asia, Chinese consumers collectively spent 158.31 billion yuan (US $22.63 billion) in the first nine hours of Alibaba’s Singles’ Day shopping extravaganza. With opening sales hitting US $10 billion in just under 30 minutes, half the time from the previous year.

Read more on Tech In Asia.

Learn more about product promotion in China.

4. Takeaways from Morgan Stanley’s Report on shifts in Chinese Luxury Consumption

As reported by Jing Daily

The takeaways from this article reveal that Chinese outbound travel has seen Europe as the top destination of choice, outperforming other western destinations such as the U.S. and Australia. The purpose for travel has also shifted away from the main purpose of shopping to more leisure and cultural experiences as well as food tourism. This shift away from travel for shopping may also be due to luxury brands creating global harmonization of “pricing” and “product offerings”.

The increasing accessibility of brands within China also allows shoppers the option to purchase the goods they desire without travelling overseas.  And Lastly, China’s luxury malls and duty-free have performed well whilst Hong Kong, known as a “shopping paradise” that is heavily reliant on tourism, has lost market share.

Read more at Jing Daily.

Learn more about the Chinese traveller .

5. Why does China Love Dyson so much?

As reported by Abacus News.

Dyson has utilised online influencers within China to market their product to their target audience. An online campaign for their Airwrap product saw seven influencers on WeChat and Weibo use their platform to present the new product to their audiences and create hype about the innovative hair curler.

According to a report in Abacus News, the innovative vacuum cleaner manufacturer Dyson has been extremely popular in China with their cord-free vacuums which was reported to have surged 343% in sales in 2016. Last year’s Singles Day saw the newly released Airwrap hair curler sell out on Alibaba’s T-Mall in three minutes and just 15 seconds on Figures from this year’s Singles Day event saw Dyson reportedly one of 84 brands that reached 100 million yuan.

Read more at Abacus news.

Learn more about positioning your brand in China.

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