Blog | WPIC Marketing + Technologies https://wpic.co/blog/ Asia Digital Marketing Solutions Thu, 03 Oct 2024 05:26:14 +0000 en-US hourly 1 https://wpic.co/wp-content/uploads/2019/06/cropped-wpic-logo-icon-150x150.png Blog | WPIC Marketing + Technologies https://wpic.co/blog/ 32 32 Jake’s Take: China’s Stock Market Soars as Stimulus Fuels Optimism https://wpic.co/blog/jakes-take-china-stock-surge-stimulus-golden-week/ Thu, 03 Oct 2024 05:20:36 +0000 https://wpic.co/?p=43566

Jake’s Take: China’s Stock Market Soars as Stimulus Fuels Optimism

Published on: October 2, 2024

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Jacob Cooke

Co-founder & CEO

Jake's Take: China’s Stock Market Soars as Stimulus Fuels Optimism

Last week was the best week for China’s stock market since 2008—and that rally was followed by an 8.5% jump in the CSI Monday, the single best day for Chinese stocks since 2008.

The announcement of aggressive stimulus measures last week is a game-changer that should give a boost to consumer sentiment. BABA, PDD, and JD are all trading higher since the news broke—as are LVMH and Kering.

As I’ve been writing about for the last two years, despite sluggish sentiment, there’s still been strong pockets of consumption growth in China (and overall consumption has continued to grow, albeit at lower rates than pre-pandemic). Tourism, health and fitness-related goods and services, pet, beauty, skincare, fashion, etc. have all been growing steadily—and creating growth opportunities for our brand partners across multiple segments. It’s primarily luxury, overseas automakers, and large durables that have taken a hit—and those sectors have outsized influence on the narrative.

That said, it’s encouraging to hear of an aggressive fiscal package targeting consumption. While the details haven’t been released, that should boost sentiment and increase consumption growth.

Really encouraged by this news as we head into the Golden Week—and with Singles’ Day around the corner. These holidays serve as barometers for sentiment and I’m expecting positive numbers out of both.

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Light Medical Beauty is Transforming China’s Skincare Market https://wpic.co/blog/light-medical-beauty-transforming-china-skincare-market/ Wed, 25 Sep 2024 07:44:24 +0000 https://wpic.co/?p=42996

Light Medical Beauty is Transforming China’s Skincare Market

Published on: September 25, 2024

Light Medical Beauty is Transforming China’s Skincare Market

In China, beauty is evolving at lightning speed. Remember when the trend was to pile on makeup thick enough to insulate a house or to have half your face reengineered? Well, those times are about as fashionable as Nokia flip phones.

Now it’s all about “light medical beauty.” Think of treatments so gentle and non-invasive, you could squeeze them into your lunch break. No knives. No bruises. No turning up at work looking like you’ve gone twelve rounds with a heavyweight champion in a plastic surgeon’s office.

And it’s everywhere. From the glitzy runways of Shanghai to the endless scrolls of Douyin, subtle is the new bold. A little tweak here, a tiny zap there, and suddenly you’re glowing like the sun, without looking like you’ve tried too hard.

For Western beauty brands, this isn’t just another passing phase. It’s a massive opportunity knocking louder than ever. Chinese consumers are hungry for more, and if you’re not tuning in, you might just miss the next big wave in the beauty world.

Overview:

What is Light Medical Beauty?

In China, “Light medical beauty” (輕醫美) is the hottest term in the private medical beauty world. If you’re a Western brand, you’d probably recognise it as “medical aesthetics,” though that doesn’t quite capture the buzz it’s generating across the country.

We’re not talking about slapping on a bit of moisturiser or going full Kardashian with surgical facelifts. This is the middle ground — the sweet spot — between your everyday skincare and a scalpel-wielding surgeon. Non-invasive treatments that have you looking younger, fresher, and positively radiant, all without needing to hide behind oversized sunglasses for a week.

Think of treatments like injectables, photo-rejuvenation, picosecond laser, Thermage, and HIFU (high-intensity focused ultrasound). These are the treatments promising quick recovery and minimal fuss, with results so striking you’ll be doing double takes every time you pass a mirror.

The real headliners here? Skin management and anti-ageing treatments. They’re the heavyweight champs in this arena, pulling in the crowds and keeping the tills ringing all across China.

And the market is skyrocketing. According to the China Medical Aesthetic Industry Insight Report 2023 by Deloitte and Allergan Aesthetics, this sector is set to soar to stratospheric heights. By 2030, the market is projected to reach a staggering 415.7 billion yuan (around US$57.38 billion). And let’s not overlook the fact that in 2023 alone, it was already worth 146.1 billion yuan (roughly US$21.16 billion), boasting a compound annual growth rate of 16.11%.

It’s a lucrative arena that’s only going to get bigger.

China Light Medical Beauty - Filorga Anti-aging Medical Center
Filorga Anti-ageing Medical Centre in Shanghai

Key Factors Driving the Light Medical Beauty Trend

What’s propelling this meteoric rise in medical aesthetics across China?

Let’s start with a fact that might make you do a double-take: the average consumer diving into this beauty boom is a youthful 24.5 years old. Over half of them haven’t even hit the ripe old age of 25.

It’s the Millennials and Gen Zers who are leading this charge, but they’re not chasing after some reality TV-style, over-the-top transformation. They prefer a little tweak here, a tiny adjustment there — just enough to make you wonder, “Did they do something different, or are they simply glowing with good health?”

These are the same folks glued to Douyin (China’s TikTok), driving demand for aesthetic adjustments that are flipping skincare and marketing strategies on their heads faster than you can say “no filter.”

But it’s not all just youthful enthusiasm that’s blowing this trend wide open. Technology is playing a starring role too. Thanks to the latest advancements, what used to be a risky and expensive game is now safer, quicker, and more affordable. Chinese consumers can pop in for a quick fix and stroll out looking fabulous, all without going under the knife.

Plus, the regulations are getting tighter. Not that anyone’s kicking up a fuss. In fact, it’s made the whole thing feel a lot more, well, legit. No more dodgy back-alley procedures with dubious instruments. Now it’s all about highly trained professionals your friends heard about from their friends. And in China, word of mouth is basically gospel. If your local KOL (Key Opinion Leader) isn’t raving about it, is it even worth a second thought?

Light medical beauty content by KOLs on Xiaohongshu (Little Red Book)

These digital pied pipers are leading the charge. In fact, over 68% of Chinese consumers are taking their beauty cues from KOLs). KOLs are like the ultimate gatekeepers, showcasing the latest treatments, sharing their own experiences, and making it all look so easy that you’d be tempted to book an appointment before your next coffee break.

Want proof? Look no further than this year’s Chinese New Year. Top KOLs turned medical aesthetic treatments into the season’s must-have, whipping up a frenzy of livestream shopping sessions where treatment deals were flying off the virtual shelves. And boy, did people buy in. Tmall reported that sales of aesthetic medicine services skyrocketed to nearly 40 times year-on-year. 

Opportunities for Western Beauty Brands in China’s Skincare Market

The rise of medical aethetics in China is shaking up the skincare landscape in China, and for Western beauty brands, it’s a prime opportunity.

For years, Chinese consumers have been laser-focused on anti-ageing and skin whitening. But now? The buzzword is “repair.” This shift comes from a growing trend of combining medical aesthetic treatments with everyday skincare. Today’s consumers are hunting for dermo-cosmetics that can soothe and restore their skin post-treatment, and they’re not shy about paying a premium for products that work.

Light Medical Beauty is Transforming China’s Skincare Market - Medical Cold Compress Mask
Cold compress face masks too soothe skin post-treatment

And what about those who aren’t quite ready for a clinic visit?

That’s where things get even more interesting. The market for at-home devices and clinical-grade treatments is booming. It’s the best of both worlds — professional-like results without leaving the house. You get the convenience of not having to leave home with the added bonus of high-tech results. It’s a lucrative niche for brands that can deliver this magic.

The savvy brands are already on it. They’ve cottoned on to the fact that Chinese consumers know their stuff. We’re talking about people who’ve studied the ingredients list on their skincare bottles like it’s a university thesis.

Take The Ordinary, for example. They waltzed into the market with a face mask with 30% AHA and 2% salicylic acid — a chemical peel in a bottle. And it’s flying off the shelves because it speaks the language of customers who expect professional results, minus the clinic visit.

Light Medical Beauty is Transforming China’s Skincare Market - Western brands

How WPIC Can Help Your Brand Succeed in China

China’s medical aesthetics boom isn’t just a fleeting trend — it’s a whole new approach to skincare. Today’s Chinese consumers are after solutions that blend innovation, convenience, and real results.

For Western beauty brands, this is the perfect moment to rethink how they engage with Chinese consumers. It’s no longer just about selling skincare — it’s about fitting into a lifestyle that combines clinical precision with everyday routines. Whether it’s offering post-treatment skincare or cutting-edge at-home devices, brands that cater to this demand are set to win big. And the opportunities don’t stop there. Collaborating with local clinics, influencers, and platforms can embed your brand even deeper into China’s beauty scene.

That’s where WPIC comes in. We’ve got the insights, the strategies, and the expertise to help Western brands tap into China’s booming market. From e-commerce to digital marketing, we tailor solutions that make your brand resonate with Chinese consumers. Whether you’re just entering the market or looking to scale up, we’ve got you covered.

As light medical beauty gains momentum, the brands that innovate and adapt will lead the future of beauty. Let WPIC guide you on that path to success. Contact us today to explore how we can help you thrive in China’s dynamic beauty market.

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South Korea’s Health & Wellness Revolution https://wpic.co/blog/south-korea-health-wellness-revolution/ Wed, 04 Sep 2024 07:21:26 +0000 https://wpic.co/?p=43179

South Korea’s Health & Wellness Revolution

Published on: September 4, 2024

When you think of South Korea, your mind probably wanders to K-Pop idols who dance with robotic precision, beauty products that promise to transform you into something out of a CGI fantasy, and barbecues so heavenly they make you question the need for leafy greens. No doubt, South Korea’s cultural exports have the world firmly in their grasp.

But there’s another Korean wave quietly making its way to shore, and this one’s less about catchy tunes and more about keeping your insides in top form.

The South Korean health and wellness market is quietly experiencing a boom, presenting an unmissable opportunity for Western brands, particularly in the nutraceutical sector. While everyone’s still mesmerised by the glitz and glamour, there’s a wealth of untapped potential simmering beneath the surface.

If you’re in the business of keeping people’s insides in tip-top shape, this is the market you’ve been missing.

Overview:

Overview of South Korea Health & Wellness Market

South Korea, now the 9th largest wellness market globally, is flexing its muscles with an impressive KRW 4.582 trillion (about US$3.36 billion) in sales to its name.

But how did we get here? What’s behind this astronomical rise?

It’s a potent mix of shifting demographics, a tech-savvy population, and a cultural shift that’s seen South Koreans investing in their health and well-being like never before. The figures speak for themselves: 84.4% of South Korea’s 51.8 million residents are taking health supplements, according to the Korean Health Functional Food Association (KHFF).

Leading the charge is the rapidly ageing population. South Koreans are living longer, but they’re not content with the stereotype of old age spent knitting scarves and sipping on herbal teas. They’re determined to stay sharp, lean, and lively, and they’re willing to splash out on products that promise to keep them in fighting form — whether it’s trimming waistlines or boosting brainpower.

But it’s not just the silver-haired crowd driving this trend. According to a report by Dong-A Ilbo, Gen Z and millennials are emerging as a core customer base. 

These digital natives are hyper-aware of their health, always on the lookout for the next big thing in wellness. They want products as cutting-edge as the latest tech and are more than willing to invest in anything that keeps them in peak condition.

The Global Wellness Institute (GWI) backs this up, highlighting that South Korea isn’t just playing catch-up in the wellness economy — it’s setting the pace in several key areas. The country ranks #6 globally in physical activity and traditional & complementary medicine. It’s also #8 in public health, prevention & personalised medicine, and workplace wellness.

South Korea’s Health & Wellness Revolution - Orthomol Centrum

Top Trends Shaping Health & Wellness in South Korea

So, what’s the latest buzz in South Korea’s health and wellness market?

Let’s dive into the trends that are setting the pace and making headlines.

1. Body Fat Reduction & Beyond

First on the list is the trend that just won’t quit: body fat reduction. It’s been the top consumer demand in South Korea’s nutraceutical scene for years, and it’s not going anywhere. Joint care takes a solid 2nd place, and this pecking order isn’t likely to change anytime soon.

But that’s just scratching the surface. Alongside joint and bone health, eye care, cognitive function, skin health, liver support, and blood sugar regulation are all gaining traction.

Then there’s red ginseng — the undisputed heavyweight champion of South Korea’s nutraceutical sector. Sales of red ginseng products accounted for almost 32% of the market share in 2022.

South Korea’s Health & Wellness Revolution - Red Ginseng
Red ginseng is the undisputed champion of South Korea's health supplement sector.

Even though the COVID-19 pandemic has receded, its aftershocks have sparked a surge in consumer interest in immune health, which has fueled a boom in the gut health market. Probiotics, in particular, have climbed the ranks, becoming the 3rd-largest category in South Korea’s nutraceutical market, just behind red ginseng and the vitamins and minerals.

But if you’re after the real growth story, keep your eye on functional probiotics. These aren’t just your standard gut-friendly bacteria — these are proprietary strains making bold claims about everything from weight management to cognitive and immune health.

While the market for generic probiotics —those aimed at general gut health — grew at a modest 0.4% in 2022, functional probiotics surged ahead with a 26.4% growth rate.

In South Korea, gut health isn’t just a passing trend — it’s the engine driving the whole industry forward. And the market for complex gut health products — those with added functionalities and ingredients — is gathering serious momentum among Korean consumers.

South Korea’s Health & Wellness Revolution - probiotics
Lacto-Fit is Korea's best-selling probiotic brand and it has a wide range of added benefits from weight loss to boosting immunity.

2. Growth of Functional Foods & Beverages

Next is functional foods and beverages.

These aren’t your run-of-the-mill snacks. These are products with a mission, designed to do more than just satisfy your hunger. Picture your morning drink giving your immune system a swift kick into gear or your afternoon snack sharpening your cognitive edge.

In 2022, this market alone racked up a staggering US$9.1 billion in retail sales, and it’s showing no signs of slowing down, with a healthy 4.3% CAGR projected from 2022 to 2026.

The reason?

Korean consumers are on a health crusade. They’re not just after something tasty — they want their food and drinks to come with a hefty side of health benefits. Whether it’s aiding digestion, boosting energy, or giving their brain a jolt, if it’s functional, it’s flying off the shelves.

South Korea’s Health & Wellness Revolution - Korean Kombucha
Sunmanc's Kombucha powdered drink mix contains prebiotics and probiotics support digestion and immune system.

And here’s where the growth story gets really interesting. According to Euromonitor International 2023, within the functional foods category, snack bars are expected to see a massive 56.5% growth from 2022 to 2026. Not far behind, confectionery is set to grow by 25.5%.

This is where Western brands have a golden opportunity to make their mark.

There’s a strong appetite for imported functional products, especially those that blend convenience with health benefits. Think portable drink mix fortified with probiotics or protein bars that actually taste like a treat. Nail that, and you’re already halfway to winning over the Korean market.

3. Rising Demand for Healthy Ageing Solutions

Finally, let’s talk about South Korea’s rapidly greying population. As one of the fastest-aging societies in the world, second only to Japan, there’s an exploding demand for products aimed at healthy ageing. The Korea Health Industry Development Institute predicts that the senior-friendly market will more than double, from KRW 72 trillion (about US$53.7 billion) in 2020 to a whopping KRW 168 trillion by 2030.

Whether it’s anti-ageing supplements, collagen-infused goodies, or functional foods that promise to keep you spry well into your later years, the market is practically begging for more Western options.

Older Korean consumers are particularly brand-conscious and willing to spend on products that promise to help them age with style and vigour. This presents a prime opportunity for Western brands known for their quality and efficacy to make a splash.

But it doesn’t stop at the basics. There’s a growing demand for products that address specific ageing concerns — think cognitive health, joint mobility, and skin elasticity.

As the focus shifts from merely living longer to living better, Korean consumers are on the lookout for comprehensive solutions that support overall wellness in their later years. This trend creates a wide-open door for Western brands to introduce science-backed, multifunctional products that cater to the unique needs of an ageing population, helping them maintain vitality and quality of life well into their golden years.

South Korea’s Health & Wellness Revolution - Jamieson Korea

Unlocking South Korea’s Untapped Market Potential

While many Western brands are laser-focused on the US, Europe, or China, South Korea is the wild card they’ve been missing.

South Korea isn’t just another market — it’s a launchpad. A consumer base that not only embraces innovation but sets trends that reverberate across East Asia and eventually the world. Crack the South Korean market, and you’re not just another brand — you’re a trendsetter with serious influence in the broader APAC landscape.

This country is fast becoming the epicentre of the global health and wellness revolution. Succeed here, and you’re not just opening the door to one market — you’re positioning yourself to ride a wave of influence across the entire Asian continent.

But to thrive in this space, you need more than just a great product. Offering unique functionality is a must. Equally important is communicating effectively with consumers. You need to create a virtuous cycle where savvy consumers keep coming back, new customers join the fold, and repeat purchases skyrocket.

And that’s where WPIC Marketing + Technologies comes in.

We’re not just another marketing agency. We’re your gateway to cracking this complex, dynamic market. We understand the nuances of South Korea, and with our tailored solutions, your brand won’t just enter the market — it’ll dominate.

So, let’s have a chat and explore how can turn your brand into the next big success story in one of the world’s most exciting and influential health and wellness markets.

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Black Myth: Wukong Redefines China’s Cultural & Economic Landscape https://wpic.co/blog/jakes-take-black-myth-wukong-china-cultural-economic-impact/ Wed, 28 Aug 2024 07:17:26 +0000 https://wpic.co/?p=43407

Black Myth: Wukong Redefines China’s Cultural & Economic Landscape

Published on: August 28, 2024

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Jacob Cooke

Co-founder & CEO

Jake's Take - Black Myth: Wukong Redefines China's Cultural & Economic Landscape

Fascinating to see the massive economic and cultural impact of Black Myth: Wukong, the new Chinese-made hit video game inspired by Journey to the West.

Here are some of my key takeaways from the game’s enormously successful launch last week:

E-Commerce trends: The launch of Black Myth: Wukong drove a 130% increase in video game sales on Alibaba’s Taobao compared to the previous week. Searches for the game itself jumped nearly 14-fold. Notably, sales of PS5 consoles doubled year-on-year in the lead-up to the game’s release, making it the top-selling gaming device on Tmall for several consecutive days.

Black Myth- Wukong Redefines China's Cultural & Economic Landscape - game still-2
Screenshot from Black Myth: Wukong

Tourism boost: The game’s rich depiction of historical and cultural landmarks has directly influenced travel behavior. Tourism bookings to Shanxi Province, which features heavily in the game, saw a significant spike.

For example, ticket sales at the Minor Western Heaven Scenic Spot in Shanxi increased by 300% year-on-year on the day the game launched. Alibaba’s Fliggy reported that Shanxi-related bookings are up 70% overall. This surge highlights the potential of cultural content to drive real-world tourism, turning virtual experiences into physical journeys.

Black Myth- Wukong Redefines China's Cultural & Economic Landscape - Shanxi
Hanging sculptures in Xiaoxitian ("Minor Western Heaven") Temple in Shanxi Province, China.

Cultural export and economic impact: Black Myth: Wukong has positioned itself as a major cultural export, attracting global attention and driving substantial economic activity within China. This includes not only direct sales of the game and related hardware but also partnerships with a variety of brands, such as Luckin Coffee and JD, which are leveraging the game’s popularity to boost their own product offerings.

Consumer shifts: The game’s success reflects broader trends in consumer behavior, with Chinese gamers increasingly investing in high-quality gaming experiences. This is driving demand for advanced gaming hardware and peripherals, with brands like Sony, Razer, and Logitech experiencing notable sales growth. The enthusiasm around Black Myth: Wukong also points to a growing appetite for domestically developed AAA games, which could further shift the landscape of China’s tech and entertainment sectors.

Overall, Black Myth: Wukong’s impact highlights the power of cultural content in shaping consumer behavior and driving market trends, both within China and globally.

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Mid-Autumn Festival Marketing Opportunities Across Asia https://wpic.co/blog/mid-autumn-festival-marketing-opportunities-across-asia/ Wed, 21 Aug 2024 07:06:00 +0000 https://wpic.co/?p=42949

Mid-Autumn Festival Marketing Opportunities Across Asia

Published on: August 21, 2024

When autumn rolls around in Asia, it’s not pumpkin spice lattes and Halloween that’s got everyone buzzing. It’s something far more enchanting: the Mid-Autumn Festival — a time when the moon, family gatherings, and food take centre stage.

Held around the autumn equinox on the 15th day of the 8th lunisolar month, the Mid-Autumn Festival is a colossal celebration across Asia, much like Thanksgiving or Christmas in the West. With its roots deeply entrenched in various cultural and historical traditions, this festival is known by different names and celebrated in unique ways in Korea, China, Japan, and Southeast Asia.

This diversity is a treasure trove of opportunities for Western brands looking to make their mark in the APAC markets. Think of it as a golden ticket — a chance to connect with consumers who are in the mood to celebrate, spend, and share.

So let’s explore how this festival is celebrated and the marketing potential that comes with it.

Overview:

Chuseok, Korea's Three-Day Festival

Now, if you think Christmas family gatherings are a big deal, you’ve clearly never experienced Chuseok (추석) in Korea.

Imagine rolling Thanksgiving, Christmas, and a raucous family reunion into one colossal three-day bash. Chuseok is one of Korea’s biggest holidays, where families come together to feast, pay homage to their ancestors, and celebrate the bountiful harvest. 

At the heart of Chuseok is charye (차례), an ancestral rite that sees families offering freshly harvested crops and delicately prepared dishes to their forebears. It’s a gesture of gratitude that’s both heartfelt and somehow manages to escape the clutches of time.

Mid-Autumn Festival Marketing Opportunities Across Asia - korea Chuseok
Chuseok 2024 promotions

The highlight of the festivities? Songpyeon (송편) — half-moon-shaped rice cakes filled with sweet fillings like sesame seeds, red beans, or chestnut paste. Making songpyeon is a family affair, and there’s a charming belief that crafting the most beautiful songpyeon brings good fortune. So if your creation looks like they’ve been through the wars, well, better luck next year.

But Chuseok isn’t just about preserving ancient traditions. It’s also a time to blend the old with the new. Many Koreans use the holiday as an excuse for a little escape, whether visiting their hometowns or jetting off somewhere sunny.

Mid-Autumn Festival Marketing Opportunities in Korea & Across Asia - Korea
Chusoek gift sets

For brands, this fusion offering endless marketing opportunities. The run-up to Chuseok sees a spike in online shopping as people frantically search for the perfect gifts and festive foods. Brands can ride this wave with special promotions and themed products that tap into the festive spirit.

Think curated gift boxes, top-notch food items, and travel accessories, all designed to make Chuseok celebrations as unforgettable as they are joyous.

Zhongqiu Jie, China's Mid-Autumn Festival

Now, let’s hop over to China, where the Mid-Autumn Festival, or Zhongqiu Jie (中秋節), transforms the nation into a dazzling display of family gatherings, harvest celebrations, and moon-gazing.

The mooncake takes centre stage at Zhongqiu Jie. These rich, calorie-packed pastries, traditionally filled with lotus seed paste and salted egg yolk, symbolise unity and are shared among family and friends. In recent years, mooncakes have evolved with new fillings like ice cream and salted pork to tickle modern taste buds.

Mid-Autumn Festival Marketing Opportunities in Korea & Across Asia - Haagen-Dazs Mooncake
Haagen-Dazs Mooncakes

Lanterns are another festival staple, lighting up the night with glowing wishes and prayers. Cities across China transform into stunning displays of flickering lights.

For Western brands, Zhongqiu Jie is a goldmine of opportunities. Picture this: food and beverage companies whipping up special mooncake editions with a Western twist. Or brands crafting limited-edition products that capture the festival’s spirit of reunion and harmony.

To seize these opportunities, look no further than social media and e-commerce giants like WeChat, Tmall, and JD.com. They’re the beating heart of promotional campaigns, customer engagement, and sales during the festival. Brands can harness these platforms to reach vast audiences with targeted ads, festive content, and interactive online events. 

Mid-Autumn Festival Marketing Opportunities Across Asia - China
China's Mid-Autumn Festival promotions

The Moonlit Mosaic of Japan & Southeast Asia

In Japan, the Mid-Autumn Festival is called Otsukimi (お月見), which translates to “moon viewing.”

This tradition dates back to the Heian period (794-1185) and is all about appreciating the stunning beauty of a full moon. People gather for moon-viewing parties, indulging in dango (round rice dumplings) and seasonal goodies like chestnuts and sweet potatoes.

While it doesn’t quite have the commercial frenzy of Korea or China, Tsukimi is a hidden gem for niche marketing, especially for food and beverage brands looking to make a subtle splash.

Tsukimi "moon-viewing" food items at McDonald's and 7-Eleven in Japan

Moving down to Southeast Asia, the Mid-Autumn Festival is a kaleidoscope of celebrations, each country adding its unique spin.

Take Vietnam, for instance. Their Mid-Autumn Festival, Tết Trung Thu, is a joyous affair dedicated to children. Imagine lantern parades lighting up the night, lion dances roaring through the streets, and mooncakes crafted with kids in mind.

Mid-Autumn Festival (Tết Trung Thu) in Vietnam

Meanwhile, in Malaysia and Singapore, where Chinese communities are bustling, the festival means mooncakes and lanterns aplenty, each with its own local twist.

For Western brands, these diverse celebrations in Japan and Southeast Asia present opportunities to cater to local preferences.

Seize the Moonlit Moment

While the festivities might vary across South Korea, China, Japan, and Southeast Asia, there’s one thing they all share: a spirit of togetherness and celebration that could warm even the chilliest of hearts. This is your chance to align your brand with the values of family, tradition, and a dash of modern innovation.

WPIC’s expertise in navigating the complex APAC markets is your ticket to success.

We understand the nuances and can help tailor your marketing strategies to resonate with local audiences. Whether it’s crafting the perfect mooncake variant, launching a festive campaign in Korea, or engaging consumers through local e-commerce giants, we’ve got you covered.

Don’t miss out on this golden opportunity.

Partner with WPIC and make your brand a part of the Mid-Autumn celebrations. Let’s turn this festival into a springboard that catapults your success across Asia. Get in touch with us today and watch your brand shine under the full moon.

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Jake’s Take: Douyin’s Shift from Discounts to Quality & Experience https://wpic.co/blog/jakes-take-douyin-shift-from-discounts/ Wed, 07 Aug 2024 19:00:32 +0000 https://wpic.co/?p=42967

Jake’s Take: Douyin’s Shift from Discounts to Quality & Experience

Published on: August 7, 2024

Picture of Jacob Cooke

Jacob Cooke

Co-founder & CEO

Douyin moving away from discounting?

I think there’s been this misconception that consumers are only motivated by low prices in the current environment, when in fact different demographics of consumers have different priorities—and those priorities shift depending on the product category + platform.

Don’t get me wrong, price is important. But product quality and shopping experience also influence conversions and user stickiness.

Douyin’s low-price strategy has consisted of giving traffic to merchants with low prices, labelling product listings with price categorizations, as well as providing price adjustment suggestions to merchants. And now we’re seeing a shift in strategy away from this emphasis on low prices.

I think Douyin executives have recognized that there is a potential conflict between aggressively promoting low prices and maintaining a positive user experience. Douyin is fundamentally an entertainment platform, but creators offering low prices alongside bad content might be rewarded with traffic, worsening the user experience. Douyin’s magic is connecting products to potential buyers through its robust interest graph algorithm, but that’s hampered if users aren’t enjoying the content in the first place.

Moreover, the price comparison mechanism doesn’t always account for product quality, so you’re getting lower quality products pushed to consumers, which might also lower conversions or push users to make purchases of certain goods elsewhere.

To be clear: I don’t think either of these problems has become rampant on Douyin and we’re still seeing impressive GMV on the platform, it’s more of a pro-active shift.

The other problem with the low-price push in the market is that it squeezes merchants, who might then allocate their inventory or ad spend to other platforms where they can find the best margins. So Douyin is likely trying to make the platform more attractive for merchants, which is ultimately good for revenue.

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Harness Data & Analytics for Winning E-commerce in China https://wpic.co/blog/harness-data-analytics-for-winning-ecommerce-china/ Wed, 31 Jul 2024 07:10:03 +0000 https://wpic.co/?p=42686

Harness Data & Analytics for Winning E-commerce in China

Published on: July 31, 2024

Harness Data & Analytics for Winning E-commerce in China

In today’s digital age, data analytics in China e-commerce is the new gold rush.  No longer are we panning for nuggets in riverbeds — we’re mining terabytes in server farms. And for businesses that want to not just survive, but thrive, in China’s cutthroat market, getting a grip on data is a necessity.

China’s consumer market is one of the most sophisticated and well-informed in the world. With social media reigning supreme and influencer marketing adding layers of complexity to consumer behaviour, navigating this landscape is like trying to herd cats. As WPIC’s VP of Strategy and Insights, Xiang Chen, so aptly puts it, “To be successful in China, brands need to make data-informed decisions.”

So let’s dive into why data and analytics are the beating heart of e-commerce in China and how WPIC helps brands conquer this vast market.

Overview:

Data is the Lifeblood of Success in China

China is a market like no other. It’s fiercely competitive, with brands from all over the world vying for the attention of over a billion consumers. So, how do you make your mark in such a crowded arena? It’s simple: data-informed decisions. Xiang Chen, our VP of Strategy and Insights, nails it: “You cannot expect the market to meet you; you must meet the market.”

At WPIC, we live and breathe it. Our not-so-secret weapon? Discripto®. 

Discripto® is WPIC’s proprietary data collection and analysis tool. It marries top-tier data collection systems with real consumer and platform data, all meticulously dissected by our sharp team.

The outcome?

Insights that steer brands through everything from market entry strategies to fine-tuning their e-commerce operations. As Xiang describes it, “It’s a beautiful combination of technology, process, and people.”

The Power of WPIC's Discripto®

Discripto® isn’t just another data tool. It’s a finely tuned system, constantly evolving to keep pace with China’s ever-shifting digital landscape.

Xiang explains, “Discripto® is a complex system where we deploy proprietary data collection systems combined with industry-leading data sources, including firsthand consumer research and platform data.” This real-time data, meticulously dissected, helps brands decode their competitive landscape, spot golden opportunities, and tailor their strategies.

Take Douyin and Pinduoduo, for instance. These platforms have completely rewritten the e-commerce playbook in China, sparking new consumer behaviours and marketing trends.

Traditional tools couldn’t keep up, but Discripto® adapts. It incorporates new data sources and and tweaks its algorithms to stay ahead of the game. As Xiang notes, “We need to adapt as the economy and the Chinese market changes.”

Adaptability is the name of the game.

China’s market never stands still, and neither does Discripto®. Whether it’s integrating new platforms or adjusting to shifts in consumer habits, Discripto® keeps WPIC’s clients perpetually one step ahead.

Harness Data & Analytics for Winning E-commerce in China - Nike data deal

Helping Brands Thrive Through Data

Discripto®’s value shines through at every stage of a brand’s journey in China.

For brands looking to enter the Chinese market, we offer opportunity assessments and size-of-prize analyses. These reports provide a clear picture of market conditions, competitive landscape, and potential success factors. As Xiang puts it, “We tell them where the market is, where their competitors are, and whether they have a chance for success based on their product, price, and target demographic.”

For brands already in the thick of it, we don’t just sit back and watch. Discripto® plays a crucial role in optimising store strategies. By continuously refining ad placements and consumer targeting, we help brands maximise their return on ad spend and drive healthy revenue growth.

But what if you’re already in China and suddenly feel like you’ve hit a brick wall? Growth plateauing? Profit margins looking a bit thin?

Our data insights can diagnose problems and outline a roadmap for renewed success. As Xiang points out, “We’re seeing quite a number of clients coming to us for our data capabilities, as their existing partners often lack what we offer.”

Take Lululemon, for instance. This Canadian athletic apparel brand wanted to leap into the Chinese market but were groping around in the dark. They were clueless about the main online e-commerce platforms and what their competitors were up to in China. We stepped in with the crucial information they needed to allocate resources to the right platforms, stock the correct inventory, rank highly with precise SEO, and pick the perfect KOLs. With this data in hand, Lululemon sprinted to the top of China’s athleisure industry.

Lululemon's community events on Xiaonhongshu (Little Red Book)

Staying Ahead in China's Ever-Evolving Market

Navigating China’s e-commerce scene is like playing chess against a grandmaster. The rules change constantly, and if you’re not 3 steps ahead, you’re toast.

That’s why data is your best ally. It’s about knowing where the market is now and where it’ll be tomorrow. Successful brands are the ones that anticipate and adapt.

China’s market moves at lightning speed. Without real-time insights, you’ll be left behind. Look at livestreaming commerce — once a novelty, now a massive sales driver. Brands that jumped on early are thriving. Those that didn’t are scrambling to catch up. Discripto® keeps our clients ahead, offering real-time insights that traditional methods can’t match.

It’s the same story with consumer behaviour.

What worked yesterday might not work tomorrow. Consumer preferences in China can shift faster than you can say “WeChat.” Discripto® not only keeps up with these shifts but predicts them, ensuring our clients stay ahead with the right strategy at the right time.

So, if you’re serious about thriving in China’s fast-paced market, you need more than just data. You need Discripto®, the ultimate tool for predictive analytics in China.

Get in touch with WPIC today and let our data-driven insights lead you to success in the Chinese market.

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China Opens Doors for Cruelty-Free Beauty Brands https://wpic.co/blog/china-opens-doors-cruelty-free-beauty-brands/ Wed, 24 Jul 2024 07:20:55 +0000 https://wpic.co/?p=42489

China Opens Doors for Cruelty-Free Beauty Brands

Published on: July 24, 2024

China Opens Doors for Cruelty-Free Beauty Brands

For years, China’s US$70.36 billion beauty market was the ultimate forbidden fruit for cruelty-free brands. With some rather strict animal testing requirements, any brand with a conscience was left standing outside, noses pressed against the glass, watching the others make a killing.

But now, the tide has turned. A significant shift in regulations has opened the door for global beauty brands to enter China without sacrificing their commitment to being cruelty-free.

So, what’s the deal with these new regulations? And what fresh opportunities are there for those cruelty-free beauty brands now eyeing this massive market with renewed hope?

In this article, we’ll explore the changes in China’s animal testing laws and the promising new opportunities these present for cruelty-free beauty brands in this vast market. 

Overview:

China’s New Animal Testing Regulations for Cosmetics

China regulates its cosmetics market through the National Medical Product Administration (NMPA)

For decades, they were adamant that every cosmetic product on Chinese (physical) shelves had to undergo animal testing. This was, understandably, a deal-breaker for cruelty-free brands, which adhere to ethical standards that vehemently oppose such practices.

But, times have changed.

As of 2021, China has lifted the mandatory animal testing requirement for most cosmetics — think skincare, makeup, hair care, and perfume. The new rules have cleared away the bureaucratic cobwebs that once ensnared businesses in this sector.

This is a game-changer for brands committed to cruelty-free practices. Instead of animal tests, manufacturers can now employ alternative methods to prove product safety, provided they meet a few specific criteria.

Let’s break it down a bit further:

Crossborder E-commerce Exemption for Cosmetics

Since November 2018, a little-known exception has allowed cosmetics sold in mainland China via crossborder e-commerce (CBEC) channels to sidestep Chinese cosmetic regulations and avoid the dreaded mandatory toxicology tests.

China Opens Doors for Cruelty-Free Beauty Brands - Where you sell matters in mainland china

This exemption for CBEC imports has allowed international cruelty-free brands to test the waters in the Chinese market through online platforms like Tmall Global, sidestepping the usual regulatory minefield for years already.

Understanding China's General vs. Special Cosmetics Regulations

China’s cosmetics regulations draw a line between ‘special’ and ‘general’ cosmetics.

Special cosmetics cover the likes of hair dyes, perming products, hyperpigmentation treatments, sunscreens, anti-hair loss products, and anything flaunting new efficacy. The 2021 Cosmetic Supervision and Administration Regulation (CSAR) has trimmed this list to just 5 categories. Unfortunately, special cosmetics still have to endure the rigours of animal testings.

Products aimed at babies, expectant mothers, and those using new ingredients within their 3-year monitoring period also remain tethered to animal testing requirements.

However, ‘general’ cosmetics — making up the lion’s share of the market — can skip these toxicology tests if they present 2 key documents:

China Opens Doors for Cruelty-Free Beauty Brands - GMP

Post-Market Animal Testing

It’s worth noting that the exemption mentioned above applies to pre-market testing. When it comes to the post-market phase, animal testing hasn’t been completely ruled out by regulatory authorities.

That said, the likelihood of encountering post-market animal testing is quite slim. It’s generally reserved for products posing serious safety risks, and even then, companies can opt to pull products from the shelves rather than let them be subjected to animal testing.

Opportunities for Cruelty-Free Beauty Brands in China

So, what does all this mean for cruelty-free beauty brands? In a word: opportunity.

The Chinese beauty market, a vast playground worth billions, has just thrown its doors wide open. This regulatory shake-up has dismantled what was once an insurmountable barrier, handing ethical brands a golden ticket to a massive, eager consumer base.

Chinese consumers are becoming increasingly savvy and selective about their beauty products. There’s a growing demand for cruelty-free, ethical, and environmentally friendly options.

A younger, more informed demographic is spearheading this shift, placing a premium on product ethics and sustainability. This trend aligns seamlessly with the values championed by cruelty-free brands, positioning them perfectly to meet this burgeoning demand.

China Opens Doors for Cruelty-Free Beauty Brands - Cruelty-Free Brands Selling in China
Cruelty-free beauty brands selling in China

Cruelty-free brands like Charlotte Tilbury, Tarte, and The Ordinary are already making significant strides in China. They’re mastering digital engagement and partnering with China’s most influential Key Opinion Leaders (KOLs). By weaving compelling narratives around sustainability and ethical practices, these brands are striking a chord with eco-conscious Chinese shoppers.

These cruelty-free brands serve as a blueprint for other brands eyeing the market, showing that it’s not only possible to thrive in China but to do so while staying true to cruelty-free principles.

Navigating the Chinese Cosmetics Market with WPIC

The end of mandatory animal testing in China is a game-changer for cruelty-free beauty brands. This opens a door to a massive market eager for ethical products, but let’s be real — breaking into a new market isn’t easy.

That’s where WPIC Marketing + Technologies comes in.

With nearly two decades of APAC experience, WPIC makes your China market entry seamless. From regulatory compliance to strategic market entry, our full-service solutions are tailored to your brand’s needs.

Our team of experts will guide you through the Chinese market’s complexities, ensuring your products tick all the regulatory boxes and captivate local consumers.

So why wait? 

Contact us today to learn how WPIC can help your brand succeed. Don’t miss this opportunity to expand and thrive in one of the world’s most profitable beauty markets.

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WPIC’s Charles Lavoie on Douyin’s E-commerce Success https://wpic.co/blog/charles-lavoie-douyin-ecommerce-success/ Wed, 17 Jul 2024 07:41:36 +0000 https://wpic.co/?p=42091

WPIC’s Charles Lavoie on Douyin’s E-commerce Success

Published on: July 17, 2024

In China’s e-commerce scene, there’s been a seismic shift that’s got everyone talking: the meteoric rise of Douyin e-commerce. Internationally known as TikTok, this platform has evolved from a social media app into a major player in online shopping, setting trends and reshaping how people buy things. In 2023, Douyin’s GMV hit an eye-watering ¥2.2 trillion (that’s US$340.6 billion), with a whopping 88% of that coming from livestreaming and short videos.

Douyin’s ascent has sent shivers down the spines of established e-commerce behemoths like Tmall. Take the cosmetics sector, for instance. Douyin has grabbed about 30% of the market share, putting a serious dent in Tmall’s once unchallenged reign.

We recently caught up with Charles Lavoie, the VP of Marketing and Head of Creative Labs here at WPIC Marketing + Technologies, to chat about Douyin’s surging influence and how savvy brands can use it to connect with Chinese consumers.

Overview:

Douyin Shopping Trends & Explosive Growth

Douyin’s surge in the Chinese market has been nothing short of a phenomenon. It’s like watching a fireworks display where every explosion is bigger than the last.

Lavoie highlighted how the platform has masterfully blended entertainment and commerce, creating an engaging space where users can hop from watching funny videos to buying the latest must-have gadget without skipping a beat.

“Douyin has been able to quickly determine the mood of its users — whether they’re in the mood to be entertained, to shop, or to learn something new — and tailor content accordingly,” Lavoie explained. Imagine a mind reader who also happens to be an excellent salesperson. That’s Douyin e-commerce.

One of the keys to Douyin’s runaway success is its sophisticated algorithm that personalises the user experience. “They can push content that is tailored to the immediate mood of the user within a fraction of seconds,” Lavoie noted. This keeps users glued to their screens and, more importantly for Douyin, makes them more likely to indulge in spontaneous retail therapy.

But Douyin didn’t morph into a shopping juggernaut overnight.

At first, it wooed Chinese brands with lower prices and enticing media incentives. It was a clever ploy to build consumer trust and get folks comfortable with the idea of shopping on Douyin. Gradually, as people started buying more, Douyin expanded its marketplace to include bigger brands and pricier products, turning itself into a retail behemoth.

For a deeper dive into how Douyin is shaping the future of social commerce, explore our detailed analysis on social commerce trends on Douyin.

WPIC’s Charles Lavoie on Douyin’s E-commerce Success - Brand owned Douyin content
Official brand content on Douyin

Douyin Marketing Strategy: How Brands Can Thrive

For brands eyeing a slice of Douyin’s booming pie, it’s not just about showing up. It’s about understanding the platform’s unique quirks and perks.

First things first, brands need to establish both a Douyin official account and a Douyin store. These two should work in harmony to create a seamless shopping experience.

And if you really want to make a splash, teaming up with livestreamers is the way to go. “Livestreamers will have their own store as well, which will present the top-selling products that specific live streamer has sold,” Lavoie explained. This clever integration means brands can engage with consumers at multiple touchpoints, like a retail hydra with many heads, all snapping up potential buyers.

Certain product categories have seen meteoric growth on Douyin.

Fast-moving consumer goods like cosmetics, skincare, nutraceuticals, and food are flying off the virtual shelves. Even pet food and consumer electronics are getting in on the action. “As the livestreamer economy has expanded on Douyin, we’ve seen livestreamers that focus on specific niches like consumer electronics becoming very successful,” Lavoie said.

It’s like having your very own personal QVC channel, catering to every niche and whim. This diversification underscores Douyin’s prowess in meeting a broad spectrum of consumer interests and needs.

WPIC's Charles Lavoie on Douyin's E-commerce Success - Nuface's Douyin E-commerce
NuFACE's Douyin store

The Future of Douyin E-commerce

While Douyin’s model has been smashing it in China, trying to replicate this success in the Western world is like trying to teach a cat to swim. It’s not impossible, but it’s not happening overnight either.

“I’m not that bullish on TikTok Shop in the short term,” Lavoie admitted. Western consumers and brands are rather possessive about their data and direct relationships, which makes them about as keen on marketplace models like TikTok Shop as they are on root canals. However, as TikTok starts peddling lower-ticket items directly from factories, we might see a slow and steady shift, akin to the gradual adoption seen in China.

Looking ahead, it’s clear that platforms like Douyin will continue to play a pivotal role in China’s e-commerce landscape. The trick for brands is to stay nimble, keeping a keen eye on the shifting sands of Chinese consumer preferences. Whether it’s harnessing AI to tailor the shopping experience or teaming up with influencers to bolster brand trust, the possibilities are as vast as the Great Wall itself.

At WPIC, we specialise in helping brands navigate this dynamic environment. From setting up your Douyin store to optimising your presence with data-driven strategies, we’ve got the tools and expertise to make sure your brand isn’t just surviving but thriving in the crowded digital marketplace. 

Ready to harness the power of Douyin?

Contact WPIC today and let’s get started.

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Trends that Shaped China’s E-commerce Scene in H1 2024 https://wpic.co/blog/trends-shaped-chinas-ecommerce-scene-h1-2024/ Mon, 08 Jul 2024 20:58:16 +0000 https://wpic.co/?p=41929

Trends that Shaped China’s E-commerce Scene in H1 2024

Published on: July 8, 2024

Picture of Jacob Cooke

Jacob Cooke

Co-founder & CEO

Trends that Shaped China’s E-commerce Scene in H1 2024

It can be difficult to parse through reporting on China’s consumer and e-commerce landscape, which has changed dramatically across the last six months. Ultimately, the Chinese consumer market presents significant opportunities for merchants across various channels and product categories. In particular, the rise of content-driven commerce and the evolving preferences of Chinese consumers all point to a dynamic market with significant growth potential for merchants. The challenge is to cut through the noise and identify those opportunities.

Encouraging Consumption Data

In H1 of 2024, we’ve started to see exciting consumption data across goods and services sectors.

We’ve just wrapped up 6.18, China’s second-largest shopping festival, which showcased encouraging trends despite mixed reports. WPIC’s assessment is that overall gross merchandise value (GMV), a barometer for sales, was up from last year and set a record high, contrary to some reports suggesting a decline.

While there may have been less buzz around the shopping festival, that indicates a maturing market with consumers spreading their spending more evenly throughout the year, influenced by the rise of livestreaming (where popular hosts routinely offer discounts) and secondary shopping festivals. The big festivals are less remarkable with discounts available year-round, so consumers don’t mark their calendars to stock up on goods and make big purchases at a discount. But despite this sense of a lack of buzz, consumers still spent a record high on this year’s 6.18—because they are spending more, period. 

A strong 6.18 built on a strong first half of 2024. China’s e-commerce logistics index, which tracks e-commerce shipping volume, gained for the fourth straight month in June, indicating healthy growth in domestic demand.

Travel numbers also offer a positive indicator for consumer confidence. Data from June’s Dragon Boat Festival showed a significant increase in travel: 17 million rail rides, up from 16.2 million the previous year, and a 20% increase in local bookings with a 50% rise in outbound hotel bookings, according to Trip.com. Qunar reported that outbound flight bookings for the summer surged by 1.6 times compared to last year, with ticket prices decreasing by about 20%.

Popular international destinations include Malaysia, Japan, Thailand, the US, South Korea, Singapore, Australia, the UK, Indonesia, and Canada. This trend builds on momentum from May Day, where international flight bookings hit record highs, and domestic travel bookings doubled those of 2019.

Chinese travelers are increasingly favoring small group and solo trips, particularly road trips, seeking authentic experiences and adventures over traditional tourist sites. Overall, Chinese outbound travel has risen by 392% in 2024, indicating renewed consumer confidence and a strong willingness to spend, which is beneficial for brand partners.

As Alibaba chairman Joe Tsai noted during the firm’s last earnings call, Chinese consumers currently hold record-high household cash savings, approximately $19 trillion, indicating a strong capacity to spend. The property market’s impact makes consumers cautious, yet several indicators point to growing consumer confidence.

The growth in the services sector during recent holidays, a strong 6.18, increased spending on discretionary items like apparel and electronics, and strong performances in personal care, pet, and nutraceuticals segments support this view. Additionally, travel bookings set records, reflecting robust consumer confidence for the rest of 2024.

Top Categories

The 6.18 Shopping Festival provides insights into the evolving preferences of Chinese consumers. On Tmall, several categories experienced over 50% year-over-year growth, including:

  • home appliances like washing machine and dryer sets
  • outdoor activity-related goods such as hiking boots and road bikes
  • interest-based equipment like mirrorless interchangeable-lens cameras and e-sport equipment
  • sun-protection apparel
  • and more.

The growth in outdoor activity-related goods and sun-protection apparel highlights a shift towards health, wellness, and work-life balance. Young Chinese consumers are increasingly participating in sports and fitness activities and are highly knowledgeable about skincare, investing in functional apparel and sun-protective products to maintain their health as they spend more leisure time outdoors. Nutraceuticals continue to shine as consumers have a clear preference for consumable, health-promoting products.

How Customers Are Shopping: The Competitive Landscape

Content-driven commerce has surged in 2024, with platforms like Douyin and Xiaohongshu seeing significant growth. Xiaohongshu reported an 8.2-fold increase in livestreaming orders compared to last year, with GMV up six times and purchasing users increasing by 7.4 times. Douyin also posted triple-digit growth in several categories. McKinsey forecasts the social commerce market to expand to $145 billion by 2027, up from $67 billion today, while livestreaming commerce in China already generates roughly $700 billion in annual sales.

Despite this trend pivoting towards more social commerce over traditional e-commerce, Alibaba had a strong March quarter and a successful 618. Alibaba’s investments in improving the user experience on Taobao and Tmall, including enhancing the content ecosystem, merchandise assortment, and price competitiveness, have begun to yield solid results. In the March quarter, GMV and order volume achieved double-digit growth, driven by increases in buyers and purchase frequency. The high-value membership program, 88VIP, also grew by double digits. With Tmall growing on 618, that points to a strong growth trend on Tmall.

For merchants, it’s key to have a strategy that reaches consumers across Douyin and Tmall.

End of Walled Gardens

One of the other notable trends coming out of 6.18 is that Tmall partnered with Douyin on traffic sharing. This partnership allowed merchants to post advertisements on Douyin and seamlessly track user journeys from discovery to purchase on Taobao and Tmall. By integrating marketing efforts on Douyin with transaction capabilities on Taobao and Tmall, merchants can harness the power of “zhong cao”—or “planting grass”—working with key opinion leaders (KOLs) to build brand desirability. This collaboration helps merchants boost conversion rates and optimize ad spend by identifying which KOLs drive store traffic and conversions.

This partnership reflects the evolving nature of e-commerce in China, where content and commerce are increasingly intertwined. It also signals the decline of the “walled gardens” era in China’s internet ecosystem, with Alibaba working not only with Douyin but also with Tencent, Zhihu, and Bilibili. These cross-platform integrations enrich the consumer experience and expand market reach, benefiting all parties involved. As the 618 sales continue, it will be interesting to observe how these strategic partnerships influence consumer engagement and merchant success.

Conclusion

In summary, the Chinese consumer and e-commerce landscape in 2024 has been marked by dynamic shifts and robust opportunities. The 618 Shopping Festival has demonstrated that overall spending is on the rise, with platforms like Tmall and JD.com seeing record high GMV. The landscape is evolving with consumers spreading their spending more evenly throughout the year, influenced by the rise of livestreaming and secondary shopping festivals, which may be reducing a sense of “excitement” around the major festival but not reducing spending.

Travel data from recent holidays indicates a resurgence in consumer confidence and a strong willingness to spend, further bolstered by record-high household cash savings. This renewed confidence is reflected in various sectors, including home appliances, outdoor activity-related goods, and sun-protection apparel, all of which saw significant growth during the 618 festival.

The competitive landscape is being reshaped by the surge in content-driven commerce. Platforms like Douyin and Xiaohongshu are experiencing explosive growth, emphasizing the importance of a multi-channel strategy for merchants. Alibaba’s strategic investments in improving the user experience on Taobao and Tmall are yielding positive results, demonstrating the resilience and adaptability of traditional e-commerce giants.

The partnership between Alibaba’s Taobao and Tmall platforms with Douyin signals the end of the “walled gardens” era, highlighting a more integrated and collaborative approach to e-commerce. These cross-platform collaborations enrich the consumer experience and expand market reach, setting the stage for continued growth and innovation in the Chinese e-commerce sector.

As we move through the rest of 2024, merchants and brands should focus on leveraging these trends and partnerships to maximize their reach and capitalize on the growing consumer confidence in China. The landscape is ripe with opportunities for those who can adapt and innovate in this dynamic market.

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Mastering Japan’s Recycling Practices for Global Brands https://wpic.co/blog/mastering-japan-recycling-practices-global-brands/ Wed, 03 Jul 2024 19:06:17 +0000 https://wpic.co/?p=41225

Mastering Japan’s Recycling Practices for Global Brands

Published on: July 3, 2024

Mastering Japan's Recycling Practices for Global Brands

Imagine a place where recycling isn’t just an annoying tick box on your daily to-do list but a national obsession. Yes, we’re talking about Japan, where every bit of garbage is sorted with the precision of a Swiss watch. Waste management isn’t some dreary bureaucratic hassle but a point of national pride.

Welcome to Japan, where sustainability isn’t just a buzzword tossed around at dinner parties — it’s ingrained in everyday life.

Now, if you’re a Western brand eager to break into the Japanese market, it’s time to take notes. Japan’s dedication to sustainability is more than admirable — it’s a blueprint for commercial triumph. With a jaw-dropping 87% of plastic collected being recycled in 2021 and 81.6% of waste paper recovered in 2023, Japan boasts one of the highest recycling rates in the world

But don’t think this is about hugging trees and saving polar bears, even though they do deserve a shout-out. This is about grasping these green practices as your secret weapon in Japan’s cutthroat marketplace.

So buckle up, because the lessons here are as vital as they are eye-opening.

Overview:

PET Bottle Collection & Recycled Rates in the US, Europe & Japan - Collection & Recycling Rates

Edo Period, the Original Zero Waste Society

Now, let’s take a trip back in time, shall we? Imagine a place where the idea of waste was so offensive it could cause a national scandal.

Welcome to Japan’s Edo period (1603-1868), where the concept of mottainai (もったいない) was born. While it loosely translates to “what a waste,” it’s much more profound than simply bemoaning about a forgotten slice of pizza or that shirt you never wore. It’s a deeply embedded belief that any form of waste is a tragedy, encouraging respect for our possessions and a sense of duty to future generations.

During the Edo period, resources were scarce, and every item was treasured for its utility. The people of that era practised what we now call “zero waste” long before it became the darling of global environmental movements. Broken pottery? Not chucked in the bin, but meticulously repaired with lacquer mixed with gold in a practice called kintsugi (金継ぎ). They turned flaws into features, finding beauty in imperfection and reuse.

This historical nugget serves up a hearty helping of wisdom for today’s brands. Sustainability is a time-tested, battle-hardened approach to living in Japan.

Recycling Rules & Regulations that Set Japan Apart

Fast forward to today, and Japan’s waste management system operates like a finely tuned orchestra — one of the most advanced in the world.

Sure, many European countries aren’t exactly amateurs when it comes to recycling. The Netherlands, for instance, has separate bins for paper, plastic, glass, and general waste. Canada’s not too shabby either, with its multi-bin approach.

But Japan takes this to a whole new level.

Waste management here is a local affair, varying significantly depending on where you live. In most cities and towns, waste is sorted with the kind of precision that would make a Swiss watchmaker blush. 

We’re talking combustible, incombustible, recyclable, and bulky waste, just to name a few. Residents must follow strict guidelines for waste disposal, including using designated garbage bags and sticking to specific collection days. Miss a beat, and you’ll be the talk of the neighbourhood — for all the wrong reasons.

Mastering Japan's Recycling Practices for Global Brands - Minato Waste disposal Guidline (household)
Household waste disposal standards in Minato, Tokyo

But it’s not just the citizens who are pulling their weight. The Japanese government has been instrumental in promoting recycling and waste management.

Policies and regulations ensure compliance and encourage innovation, like the Waste Management and Public Cleansing Law, established way back in 1970. This legislation provides a framework for waste management practices across the country, mandating proper waste disposal and recycling, with strict penalties including imprisonment for non-compliance.

Mastering Japan's Recycling Practices for Global Brands - Minato Waste disposal Guidline (household) 2
Household waste disposal standards in Minato, Tokyo

And the country is also embracing technology to give its recycling efforts a high-tech edge. Smart recycling bins equipped with sensors that detect and sort waste are becoming more common, making the process as slick as a Formula 1 pit stop. These innovations not only make recycling more efficient but also educate the public on proper waste management.

The success of these policies is evident in the numbers. While Japan has one of the highest per-capita plastic consumption in the world, it also boasts one of the highest recycling rates in the world. With 87% of plastic collected being recycled, and in 2022, a whopping 94% of PET bottles collected were recycled in Japan, compared to just 57% in Europe and a paltry 27% in the US.

So, Western brands, take note: if you want to make a splash in Japan, understanding and integrating these rigorous recycling practices isn’t just a smart move — it’s a necessity.

Key Messages for Western Brands Entering Japan

In Japan, if your packaging isn’t sustainable and lacks clear recycling instructions, you’re already on the back foot.

Take Suntory, one of Japan’s beverage giants. In 2011, they started using recycled PET resin for new bottles and aim for 100% recycled and plant-derived materials by 2030. Shiseido, the cosmetics behemoth, uses up to 95% recycled plastic, targeting 100% sustainable packaging by 2025. Kao, another heavyweight, offers more than 80% of their products in refill packs that are made of recycled plastic.

Mastering Japan's Recycling Practices for Global Brands - Kao Refills
Kao provides refill packs for most of their products, including shampoos, body washes, bleach, and laundry detergents.

The twist? They don’t boast about it. Japanese consumers expect companies to be green without the big fanfare — just make recycling easier for them.

With Japan’s intricate recycling rules, companies aim to simplify consumers’ lives by reducing bulky packaging waste and marking products with icons and labels to guide disposal. It’s about making a complex system as painless as possible.

So, what’s the play for Western brands?

Start by revisiting your packaging. It needs to meet Japan’s recycling standards and consumer preferences. This means designing products with recyclability and refillability in mind and understanding Japan’s recycling intricacies. Engage with your customers to understand their concerns and address them proactively.

Mastering Japan's Recycling Practices for Global Brands - Common symbols in Japan
Recycling symbols commonly seen on products in Japan

Consider the example of IKEA Japan, which has introduced furniture rental services to promote reuse and reduce waste.

Moreover, incorporating clear symbols and labels to signal recyclability can go a long way in gaining the trust of Japanese consumers. By tailoring their approach to meet the specific expectations of the Japanese market, businesses can carve out a competitive edge and bolster their reputation as environmentally responsible entities.

Transform Your Brand's Future with WPIC

Japan’s sustainability approach offers Western brands invaluable lessons. Embracing these practices isn’t just about cracking a new market or compliance. It’s about making a positive impact on the environment and society while building a brand that Japanese consumers trust and admire.

At WPIC, we understand the challenges of breaking into the Japanese market.

Our tailored solutions are designed to guide your brand through these hurdles. From market entry and data analytics to e-commerce optimisation, WPIC provides strategies that ensure your brand not only meets but exceeds Japanese consumer expectations.

With WPIC by your side, you’ll not only comply with regulations but also set new standards, making a lasting positive impact on the environment and enhancing your brand’s reputation.

Contact us today and let’s make your brand a household name in Japan.

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Jake’s Take: Debunking the 618 Sales Slump Myth https://wpic.co/blog/jakes-take-debunking-618-sales-slump-myth/ Wed, 26 Jun 2024 19:05:27 +0000 https://wpic.co/?p=41605

Jake’s Take: Debunking the 618 Sales Slump Myth

Published on: June 26, 2024

Picture of Jacob Cooke

Jacob Cooke

Co-founder & CEO

A report from Syntun is going around showing that 618 sales were down 7% from last year—and it’s flawed.

Indeed, there has been diminished buzz around this year’s festival, but let’s be clear: GMV was up from 2023.

We didn’t crunch the numbers for every platform this year but our assessment is that Tmall GMV was a record high—and Tmall has the largest market share.

JD stated it also had a record high GMV. We know Douyin has been rapidly growing. Xiaohongshu also released early data showing big growth in GMV.

Yiguan and NBS reported mid-teen growth in the first phase of 618.

So a drop in GMV, as reported by Syntun, does not align with the broader consumption trend, the longer sale window this year, and other data sources. HSBC and Citi analysts have also come out questioning the data.

However—Syntun’s data does align with a narrative that 6.18 has diminished buzz and the consumer lacks confidence. So what’s the deal?

Discounts are now available throughout year due to the rise of livestreaming and the proliferation of secondary shopping festivals.

Previously, consumers marked their calendars with 6.18 and 11.11 when they would stock up on goods at a discount. And brands would use these times to shed inventory.

That’s no longer happening—the landscape has matured.

Still, 618 generated a GMV bump from baseline and overall GMV was up from last year.

But consumers are simply shopping more throughout the year.

Consumption for the festival is solid, and combined with recent travel and service spending numbers, I think the festival reflects positively on sentiment.

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