WPIC Marketing + Technologies

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

Grace — Thu, 03 Oct 2024 05:20:36 +0000

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

Published on: October 2, 2024

Jacob Cooke

Co-founder & CEO

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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Mike Todd’s Blueprint for Australian Brands Going Global

Grace — Tue, 01 Oct 2024 06:21:44 +0000

Mike Todd’s Blueprint for Australian Brands Going Global

In this episode of The Negotiation podcast, host Todd Embley is joined by Mike Todd, a seasoned expert in international business development with a rich history of helping consumer brands expand into APAC markets. Mike shares invaluable insights from his experiences with major brands like Hunter, Swims, Uggs, and Mizuno and discusses the strategies that led to their success in these competitive regions.

Starting with exploring his strategic approach for each brand, Mike delves into the APAC region’s unique market dynamics and consumer behaviors that influenced his tactics. He also talks about the inception and growth of his proprietary brand, providing a firsthand look at the challenges and rewards of building a brand from the ground up.

As a Senior Advisor at Dearin & Associates, Mike outlines his role in assisting companies to navigate the complexities of international expansion. He highlights common pitfalls to avoid and offers tailored advice for Australian brands considering entering or expanding within the Chinese market and other international arenas.

The conversation wraps up with Mike’s forecast for the future, pinpointing sectors and markets that present lucrative opportunities for Australian brands aiming to go global. His advice is a must-listen for anyone looking to understand the intricacies of international brand expansion.

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Light Medical Beauty is Transforming China’s Skincare Market

Grace — Wed, 25 Sep 2024 07:44:24 +0000

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Light Medical Beauty is Transforming China’s Skincare Market

Published on: September 25, 2024

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.

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?

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.

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.

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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Marlene Sharp on the Rising Popularity of East Asian Entertainment Franchises

Grace — Fri, 20 Sep 2024 21:15:15 +0000

Marlene Sharp on the Rising Popularity of East Asian Entertainment Franchises

In this episode of The Negotiation podcast, Todd Embley hosts Marlene Sharp, an entertainment executive known for her role in globalizing Japanese game franchises like Sonic the Hedgehog. Throughout her career with LEVEL-5 abby and Sega of America, Marlene tackled the unique challenges of adapting Japanese franchises for global audiences. Now leading Pink Poodle Productions, she utilizes her extensive experience to provide specialized services for IP franchises that span the Asian and North American entertainment markets.

During the discussion, Marlene addresses the evolving landscape of international entertainment, emphasizing the rising influence of Japanese, Korean, and Chinese franchises in the West.

Topics discussed in this interview:

Marlene’s transition from working in traditional entertainment roles to specializing in Asian media properties.
Challenges of adapting Japanese game franchises for global markets.
The role of cultural considerations in international entertainment.
Services offered by Pink Poodle Productions and their relevance to Asian markets.
Differences in collaboration styles between Japanese and Korean partners.
The evolving influence of Asian content in Western entertainment.
Advice for navigating cross-cultural boundaries in the entertainment industry.
Future projects and new markets of interest in Asia.

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IDC Recognized as Fast-Growing New Niche Brand by Tmall Global

Grace — Thu, 19 Sep 2024 07:31:17 +0000

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IDC Recognized as Fast-Growing New Niche Brand by Tmall Global

Published on: September 19, 2024

Beijing, China – September 19, 2024 – WPIC Marketing + Technologies is thrilled to announce that its brand partner IDC, a skincare brand renowned for its science-driven anti-aging solutions, has been named a Fast-Growing New Niche Brand by Tmall Global. This prestigious recognition is awarded to just ten brands each quarter and highlights IDC’s rapid success in the highly competitive Chinese skincare market since launching on Tmall Global in May 2024.

IDC, based in Quebec, Canada, is rooted in over 25 years of scientific research, dermatology, and product development. The brand’s mission is to empower consumers by offering skincare products with potent active ingredients, free from the marketing-driven dilutions commonly seen in the industry. IDC’s commitment to quality and efficacy has quickly resonated with Chinese consumers, particularly within the rapidly expanding anti-aging subcategory.

“Being named a ‘Fast-Growing New Niche Brand’ by Tmall is an incredible honor that underscores the strength of our doctor-founded, science-driven products. Our thanks go to WPIC, whose deep knowledge of the Asia market has been essential to our expansion. This partnership ensures the ongoing success of our global growth plans as we bring the best of IDC Dermo to new consumers worldwide,” said Serge Yelle, General Manager of IDC.

“The Chinese skincare market is both sophisticated and discerning, especially when it comes to ingredients and efficacy,” said Joseph Cooke, President of WPIC Marketing + Technologies, which manages IDC’s Tmall Global store and oversees its marketing activities in China. “IDC’s strong scientific foundation and dedication to high-quality formulations have positioned it as a trusted brand among Chinese consumers, and we are thrilled to see this recognition from Tmall Global.”

The skincare category in China continues to grow at a remarkable pace, driven by an increasingly knowledgeable consumer base that prioritizes effective, science-backed products. The anti-aging segment, in particular, is experiencing significant demand, making it an opportune market for overseas brands like IDC to establish a strong presence.

“We’re thrilled to be recognized by Tmall as a ‘Fast-Growing New Niche Brand’! This award highlights IDC Dermo’s commitment to excellence, driven by our patented scientific innovations and diversified product portfolio. A special thank you to our invaluable partner, WPIC, whose expertise in the Asia market has been crucial to our success. With strong partnerships like this, we’re excited to continue expanding internationally and delivering the highest quality skincare solutions to new markets,” said Derek Pickford, Vice President of Sales and Marketing of IDC.

With its strong foundation and growing popularity, IDC is poised for continued success in China, leveraging its scientific expertise to meet the evolving needs of the Chinese skincare market.

For more information about WPIC Marketing + Technologies and its solutions, please visit wpic.co or contact us at info@wpic.co.

About WPIC Marketing + Technologies:
WPIC Marketing + Technologies drives market expansion for global brands in China, Japan, South Korea, and Southeast Asia through strategic brand development, data analytics, e-commerce solutions, marketing, logistics, compliance, essential support services, and more. With over 400 full time professionals, WPIC has successfully deployed and grown over 650+ brands across APAC over the last 19 years.

Media contact:
Liam Mather
liam.mather@wpic.co

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Darren Touch on the Future of Canada-China Relations

Grace — Thu, 12 Sep 2024 10:16:36 +0000

Darren Touch on the Future of Canada-China Relations

In this episode of The Negotiation, Darren Touch, founder and CEO of the Canada China Forum, discusses his interest in international relations with China and his experience as a Schwarzman Scholar at Tsinghua University. He shares his insights on the current state of Canada-China relations and the necessary steps to strengthen the relationship. Touch emphasizes the importance of people-to-people exchanges, educational programs, and language proficiency in building a new generation of leaders well-versed in China affairs. He also highlights the challenges of binary thinking and the opportunities for Canadians to gain hands-on experience in China and other parts of the world. Enjoy!

Topics discussed in this interview:

Developing a nuanced understanding of China is crucial for building a balanced and informed approach to Canada’s strategy towards China.
People-to-people exchanges and educational programs are key to strengthening the Canada-China relationship.
Language proficiency and hands-on experience in China are valuable competencies for future leaders in international policy and diplomacy.
Challenges include binary thinking and the need to overcome biases and stereotypes about China.
Opportunities lie in expanding educational programs and encouraging Canadians to gain international experience.
Leaving one’s comfort zone and experiencing different cultures and perspectives is essential for personal and professional growth.

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Olympic Recap: Team China’s Performance in Paris with Mark Dreyer

Grace — Fri, 06 Sep 2024 05:48:52 +0000

Olympic Recap: Team China’s Performance in Paris with Mark Dreyer

In this episode of The Negotiation podcast, we take a look back at the Paris 2024 Olympics with Mark Dreyer, the preeminent analyst of China’s sports scene. Mark, a seasoned China sports reporter, delves deep into China’s performance at the 2024 Games and the cultural phenomena surrounding Chinese athletes.

The discussion kicks off with a review of China’s overall performance at the Paris 2024 Olympics, looking at how China fared in the medal tally and significant victories and storylines.

One topic explored in depth is Zheng Qinwen’s gold medal victory in women’s tennis. Mark also addresses the controversies that clouded China’s swimming successes, including Pan Zhanle’s world record in the 100-metre freestyle.

The conversation shifts to the societal impact of sports, examining the treatment of athletes as celebrities in China and the governmental steps taken to manage public obsession with star athletes.

Moreover, Mark touches upon other intriguing sports developments within China, including the influence and challenges faced by North American sports leagues operating in the Chinese market.

This episode is tailored for listeners eager to understand the nuances of China’s evolving sports landscape and the broader implications for international sports dynamics.

Topics discussed in this interview:

China’s Olympic Performance: Evaluating the significance of the Paris 2024 Olympics for China and the emphasis on gold medals.
Highlight on Zheng Qinwen: Discussing the impact of her gold medal win on China’s sports scene.
Controversies in Swimming: Analyzing the issues surrounding high-profile Chinese swimmers and their implications.
Celebrity Culture in Sports: Exploring the phenomenon of athletes as celebrities and the social dynamics it creates.
Broader Sports Developments: Delving into the presence and challenges of North American sports leagues in China.

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South Korea’s Health & Wellness Revolution

Grace — Wed, 04 Sep 2024 07:21:26 +0000

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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 9^th 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.

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 2^nd 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.

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.

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.

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.

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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A Deep-Dive Into Alibaba, JD, Douyin & Little Red Book Ed Sander (Part 2)

Grace — Thu, 29 Aug 2024 20:29:19 +0000

A Deep-Dive Into Alibaba, JD, Douyin & Little Red Book Ed Sander (Part 2)

In this second installment of our engaging dialogue with Ed Sander on The Negotiation podcast, host Todd Embley continues to explore the dynamic and rapidly evolving landscape of China’s digital technology scene. Ed, known for his deep insights into the intricacies of Chinese e-commerce, shares his expertise on the roles of major players like Alibaba and JD.com and dives into emerging platforms like Douyin and Little Red Book.

The episode begins with a discussion on Alibaba and JD.com, traditional giants in the Chinese e-commerce space. Ed analyzes how these companies are adapting to changes in consumer behavior and technological advancements. He specifically touches on Alibaba’s “user-first” strategy and its implications for Taobao and Tmall’s performance this year. Shifting focus to Alibaba’s grocery arm, Hema, Ed explains why this segment of Alibaba fascinates him due to its innovative integration of online and offline retail, which significantly enhances the consumer shopping experience.

The conversation then pivots to Douyin, the Chinese counterpart of TikTok, which has successfully morphed into a robust e-commerce platform. Ed discusses the reasons behind Douyin’s e-commerce success and offers strategic advice for brands considering launching a store on the platform. Additionally, Ed assesses the potential of Little Red Book (Xiaohongshu) as an e-commerce platform built on top of its social media roots, exploring its unique position in the market.

The episode also delves into the intense competition in local services in China, identifying key players and analyzing who is leading and why.

Finally, Ed highlights other exciting trends in China’s digital space that are shaping the future of e-commerce and digital interaction in one of the world’s most vibrant markets.

Topics discussed in this interview:

The adaptation of Alibaba and JD.com in the evolving e-commerce landscape.
Analysis of Alibaba’s “user-first” strategy and its impact.
Insights into Hema’s role within Alibaba’s ecosystem.
Douyin’s rise as a formidable e-commerce platform.
The potential of Little Red Book as an e-commerce site.
Overview of the competitive local services market in China.
Emerging trends in China’s digital space that are reshaping the industry.

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

Grace — Wed, 28 Aug 2024 07:17:26 +0000

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

Published on: August 28, 2024

Jacob Cooke

Co-founder & CEO

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.

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.

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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The Meteoric Rise of Pinduoduo & Temu with Ed Sander (Part 1)

Grace — Wed, 21 Aug 2024 20:24:37 +0000

The Meteoric Rise of Pinduoduo & Temu with Ed Sander (Part 1)

In this episode of The Negotiation podcast, host Todd Embley is joined by Ed Sander, a renowned analyst specializing in China’s digital technology landscape. In the first part of this two-part conversation, Ed shares his expert insights into Pinduoduo and the meteoric rise of its international marketplace, Temu.

The episode kicks off with Ed discussing the innovative business strategies, such as group buying and aggressive discounting, that have propelled Pinduoduo to immense success within China. He then shifts focus to Temu, PDD Holdings’ ambitious cross-border platform, explaining its business model and why it has rapidly emerged as a formidable contender in the global e-commerce arena, potentially rivaling giants like Amazon.

Ed addresses common misconceptions about Temu, providing clarity on its operational strategies and market positioning. He also explains the “semi-managed” model, highlighting its significance in Temu’s operational framework and its impact on international e-commerce dynamics.

Additionally, Ed discusses his upcoming study trip to China with Kaiser Kuo, inviting listeners to gain first-hand experience and deeper understanding of China’s tech landscape.

Topics discussed in this interview:

The rise of Pinduoduo in China: strategies and business model.
Introduction to Temu and its success factors.
Misconceptions about Temu and its comparison with Amazon.
Explanation of the “semi-managed” model and its importance.

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Mid-Autumn Festival Marketing Opportunities Across Asia

Grace — Wed, 21 Aug 2024 07:06:00 +0000

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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 15^th day of the 8^th 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.

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.

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.

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.

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.

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.

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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Mid-Autumn Festival Marketing Opportunities Across Asia

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Overview:

Chuseok, Korea's Three-Day Festival

Zhongqiu Jie, China's Mid-Autumn Festival

The Moonlit Mosaic of Japan & Southeast Asia

Seize the Moonlit Moment

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