Consumers in China are very different from those elsewhere. Take jewelry, says consumption guru Ashley Dudarenok: they used to be gifts for women, but nowadays they purchase themselves, as a reward, she says at her vlog.
Ashley Dudarenok is a speaker at the China Speaker Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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China’s consumption is growing again and sales growth is recovering on a solid post-COVID10 track, says marketing expert Ashley Dudarenok on her vlog. Government, tech companies, and consumers have their noses in the same direction.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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Foreign brands used to be an asset on the China market, but those days are over, says marketing guru Ashley Dudarenok on her weblog. You need to bring a firm budget and take time to convince consumers your products is worth their money, she adds.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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As the internet becomes a dominant sales channel in China, virtual key opinion leaders (KOLs) are becoming key for brands, says marketing expert Arnold Ma to the Jing Daily. As patriotism becomes an issue for global brands in China, they have to be careful in picking those virtual KOLs, adds Ma.
Jing Daily:
Using virtual KOLs has been an emerging marketing experiment for brands in China, said Arnold Ma, founder & CEO of the Chinese digital agency Qumin. “Ling, Luo Tianyi, KFC’s Colonel Sanders, Tmall’s Aimee, PokaPoka, and L’Oréal’s Mr. Ou are all famous to Chinese Gen Zers,” he explained. “And although virtual Chinese KOLs have yet to reach their peak, brands could get on board because this industry has huge potential.”…
Young Chinese consumer trust exists when the appetite for fashion and beauty meets fervent patriotism. To earn that, brands must have the conscience to cultivate practical political wisdom to avoid controversy. “Brands can either have a clear standpoint that supports China or avoid talking about politics on social media,” warned Qumin’s founder Arnold Ma. “Once Western brands get involved in political controversy, KOLs and celebrities will 100-percent stop work with the brands because they need to save their reputation in the Chinese market, and they are patriotic and socially progressive.”
Arnold Ma is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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The economy of fans, of idols, celebrities, and influencers, works in China very different from elsewhere in the world, explains marketing guru Ashley Dudarenok on her Vlog. Very big in China among Gen-Z, she says.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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European sanctions against China triggered off a backlash against fashion brand H&M and business analyst Shaun Rein explains at the BBC why China’s consumers are starting boycotts against European companies like H&M.
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Marketing expert Ashley Dudarenok dives on her vlog into third-tier cities and explains why youngsters here are interesting as consumers, despite their relatively lower incomes.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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Spring festival is the time when China’s consumers spend more than any other period during the year. How will their spending behavior in 2021 look like, after the Covid-19 disruptions of 2020. Marketing expert Ashley Dudarenok looks ahead for Technode.
Ashley Dudarenok:
While this Spring Festival may not look much like the pre-Covid glory days, the holidays this year will at least be more optimistic as China has accumulated a year of experience fighting against the pandemic. The Ministry of Transport predicted there would be about 1.7 billion trips made nationwide, which was 40% lower than in 2019 but still 10% higher than last year.
Domestic tourism will look different this year: Consumers are also showing different travelling patterns compared to previous years. As of Jan. 25, the average cost (in Chinese) of plane tickets on local online travel agency Qunar during the Spring Festival was RMB 651.36, about RMB 200 cheaper than in 2019. Ticket prices for traditionally popular routes are even lower. Usually sold out, holiday plane tickets from Beijing to Sanya, Hainan, are as low as RMB 610 on some platforms. While the demand for plane tickets has cooled off, staycations at local B&Bs and hotels are picking up. Hotel bookings for New Year’s eve grew 30%. Shanghai, Guangzhou, Chengdu, Shenzhen, and Chongqing were among the top cities with the most hotel bookings.
Spending intent is still high: Consumer sentiment is also looking promising. While some may choose not to return home this year, they are still purchasing products on e-commerce channels both for personal use and as gifts. Experts predict that the food and beverage category will soar in Q1 2021. Data from the first day of Tmall’s pre-Spring Festival sales campaign shows that edible items such as dried fruits, confectioneries, and Chinese pastries are still the best-selling items, although sales of single person instant meals (in Chinese) grew 15-fold to become the category with the most growth on the platform. Ada Yang, Head of Social Community at Pinduoduo, told ChoZan that she sees great potential for the sales performance of quality agricultural products, local brands, and imported products during the holiday season as Chinese citizens visit and present gifts to each other during the Chinese New Year holidays.
Like 2020, live streaming remains key to pre-Spring Festival promotions: Douyin ran pre-Spring Festival promotions from Jan 4. to Jan. 20. Celebrities, influencers, and brand livestreams, as well as billions of RMB in free traffic and platform subsidies, supported the promotions. Chinese entrepreneur and live-streamer Luo Yonghao has already started six Spring Festival live streams since the beginning of the campaign. Luo’s livestreaming on Jan. 10 achieved over RMB 200 million in GMV and over 347,000 orders. Douyin is also actively catering to young consumers this year by selecting trendy products from categories such as the apparel, shoes, bags, beauty, and home products. The platform is also launching Spring Festival themed gift sets by collaborating with brands such as Haidilao and the Summer Palace.
Spring Festival 2021 is poised to continue China’s economic resurgence and recovery. China marketing experts expect robust growth in consumer confidence leading into Q1 2021. More details, including Chinese consumers’ growing preferences for local tastes, Chinese culture, domestic brands, and health-conscious options, are described in our full report, over 600 pages, available for download on our website.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
Are you looking for more consumer experts at the China Speakers Bureau? Do check out this list.
Foreign companies all too often had a simplistic view of China’s consumers. Marketing expert Ashley Dudarenok looks at how she can now differentiate between consumers in different clusters, although she still has to keep it simple, she tells at an interview in Dao Insights.
Dao Insights:
What is the best way to split up the “China market” into consumer groups?
The most important distinction is between north and south China, which have completely different ecosystems when it comes to spending power, culture, and behaviours. This is especially true post-COVID-19, as its economic recovery has been extremely uneven throughout China. Southerners are engaging in “revenge consumption” (a strong desire to buy due to pent up demand); whereas people in the north, especially those residing in tier 2, 3, or 4 cities, are saving due to concerns about job security and commonly have two or three jobs on the side of full-time employment. As such, there is a completely different mental state between the two.
What about the impact of the tier-system on consumer groups?
I use city tiers out of ease, but the term over-simplifies China and its different consumer groups. City tiers were created a long time ago for government planning purposes, not for defining consumer behaviours. Take the example of Changsha: it is building a night economy from scratch by extending work hours, boosting night consumption, and developing cultural streets in order to become China’s number one 24-hour city. So, how do you classify it in the tier system?
Many China-watchers are moving away from these generalisations and focussing on “clusters”. These are groups of 3-5 cities which have similar economies and are a much more accurate way to define consumption patterns.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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Marketing veteran Ashley Dudarenok looks at three major changes in China after the pandemic in 2021. Speed, digitalization, and consumer behavior went through an amazing rollercoaster, she says on the vlog.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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China’s consumers are the most spoiled in the world and instant consumption, instant delivery after purchase, is standard, not only for food but for all consumption articles, says marketing specialist Ashley Dudarenok at her weblog.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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Plant-based meat producers, including US-based Beyond Meat, are entering the competitive China market. Their success depends on whether their products can convince the China consumers, says Shanghai-based business analyst Ben Cavender at Reuters.
Reuters:
Beijing-based startup Zhenmeat, whose products include plant-based meatballs, beef patty, steak, pork loin, crayfish and dumplings, is one of many small Chinese companies entering the market. Its “meatballs” are now available on a trial basis at a Beijing store of Chinese hot-pot chain Hope Tree.
“Now after COVID-19 consumers are more concerned about health and restaurant brands are responding to this,” Zhenmeat founder and CEO Vince Lu told Reuters in an interview, adding that sales were “up considerably” since June.
Many curious customers at the Beijing Hope Tree restaurant said the meatballs – made from a base of pea and soy protein – tasted like tofu.
“Actually you can tell that it isn’t meat but the feel of it in your mouth is very similar to beef. And I guess that plant-based meat is a little healthier than beef,” said Audrey Jiang, 30.
China Market Research Group Director Ben Cavender said the key to the future of the plant-based meat market was the taste.
“When we interview consumers the vast majority say they’re open to trying these products once,” he said.
“But the big question is how do they like it? Do they see how they can fit it into their diet on daily basis, whether that’s cooking at home or at restaurants? But if they do like it they’ll keep buying.”
Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
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Mark Schaub:
Long before Beyond Meat was found in 2009 and Impossible was launched in 2015, China already had Gong Delin (功德林) a brand born in 1922 and producing noodles with mock meats. Aimed at Buddhists, or the curious, Gong Delin and others of its ilk have been passing off tofu as meat for almost 100 years. The writer recalls visiting in early 1990s and being harangued whether one could tell the difference between mock duck and real duck. Spoiler alert – a valiant effort but no duck.
In 2020 however, alternative meat is not just for Buddhists and the curious. These groups have been joined by a far bigger group: health conscious Chinese consumers. China is the world’s biggest meat market but is also a market where consumers are increasingly making purchase and lifestyle decisions based on health. Accordingly, alternative meat companies are all looking how best to penetrate the world’s biggest market. China consumes approximately 28% of the world’s meat and even more impressively 50% of the world’s pork. Meat consumption has followed GDP per capita growth. As China became richer it consumed more meat.
However, the Chinese authorities do not see increasing meat consumption as a public good. Indeed when the ‘Food-based Dietary Guidelines’ <中国居民膳食指南> were last revised in 2016 one of the aims was to cut meat consumption by 50% as a way to promote a healthier lifestyle.
Accordingly, 1.4 billion consumers being weaned off meat is a target too large to ignore for international players but what are the main challenges?
The National Health Commission of the PRC is the body that usually approves new food ingredients. The National Health Commission has been actively holding meetings with associations such as the China Meat Association on the topic of artificial and plant based meats. These meetings have emphasized the ingredients and the over-all health goals stemming from the dietary guidelines. There are already several Chinese alternative meat companies that have set standards on ingredients and general practices.
International alternative meat companies will need to ensure their ingredients conform to Chinese requirements. Certain ingredients may not have been formally accepted in China.
Which Standards Apply? It is crucial to distinguish between ‘plant-based’ and ‘artificial’ meat products. There are several Chinese institutes and associations seeking to lead the way to set more standardized classifications and practices. On June 24, the Chinese Institute of Food Science and Technology (CIFST) published its first draft on plant-based meat aimed to create standard and guidance for the industry. The draft specifically focuses on plant-based meat products and provides details as to definitions, classifications, technical specifications and other requirements.
The National Health Commission holds technical exchanges with domestic companies in respect of meat alternatives. However, the National Health Commission has recognized that a fair policy and market supervision are important issues confronting this young industry. Wang Shouwei, director of the China Meat and Food Comprehensive Research Center has advised that national standards for artificial meat are currently being prepared. It is expected that national standard for vegetable protein meat which started in 2019 will come out by the end of 2020. This will be an important step on the way to formal legislation. However, international companies should bear in mind that guidance and drafts do illustrate the current thinking of the Chinese authorities. Accordingly, even though such policies are not mandatory it is important to be aware of them.
Intellectual Property – Alternative meats such as plant-based and artificial meats are quite a topic with respect to IP. The production methods for producing plant-based meats, for example, can be patented. Additionally, the feel, smell, and taste for those products can be a trade secret (similar to Coca Cola’s recipe). The name of the company and product line can be protected by trademarks, and the appearance of the food may be protected by design patent and/or copyright. Indeed it seems the entire gamut of IP protections are available. There was a successful case for protecting smell as a trademark in the US. However, protecting the smell, taste or feel so far is seldom (if at all) tested under Chinese trademark law.
Food Safety – To sum up, there are Chinese associations and institutions formulating industry standards that in the near future might be included when regulations regarding plant-based and artificial foods are formalized. As of right now, any plant-based or artificial foods company must comply with the Food Safety Law of the People’s Republic of China. This includes for example a conducting a “food safety risk assessment” for new food products.
Saying China has a long history of consuming meat alternatives would be an understatement. It is a staple of Chinese diets and widely available along the entire food value chain from production to distribution, restaurants to consumers. Because of this, China’s regulatory purview is in a strong position to further cover alternative meats compared to other countries. However, the opportunity is not without its challenges. IP will be a necessary legal hurdle and the competition for the minds (and stomachs) of Chinese consumers is fierce.
More at the China Law Insight.
Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers' request form.
Are you looking for more consumption experts at the China Speakers Bureau? Do check out this list.
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| Kaiser Kuo |
Kaiser Kuo, a Chinese American tech journalist and podcaster, and former spokesperson for the Chinese search engine Baidu, agrees that TikTok’s data collection has been aggressive but feels surveillance fears are overblown. “We have not seen any evidence so far that they’ve done anything nefarious. This is about our deeply emotional response to China. It’s straight-up Sinophobia,” he said in an interview prior to Trump’s ban threat. “If TikTok, which is just pure greasy kids’ stuff, is drawing so much fire, it’s hard to believe that anything wouldn’t.”
It’s also not clear that China really wants to develop globally successful consumer tech products. Kuo notes that TikTok’s success is something of an anomaly, since “the really successful apps in China, the very things that made them successful would hinder them from success in other markets.” Baidu, for instance, may be an excellent search engine but its compliance with Chinese censorship laws makes it difficult to export.
The messaging service WeChat is an all-in-one swiss army knife app for its Chinese users, facilitating everything from payment to ridesharing to food ordering. Given its ubiquity, it’s also a powerful tool for surveillance and censorship, which is why the international edition is so pared down that it’s essentially a WhatsApp knock-off.
TikTok’s domestic Chinese counterpart, Douyin, also boasts some micropayment and search features—in addition to censorship compliance—that are absent from the global version.
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| Shaun Rein |
Retail analysts praised Burberry for the hybrid store which combines online shopping with traditional bricks-and-mortar retailing.
"Burberry has been savvy and ahead of the curve in understanding the importance of social media and e-commerce in targeting Chinese consumers," said Shaun Rein, founder of the China Market Research Group. "Too many luxury brands focus on bricks and mortar and the in-store experience only while Chinese want to shop online."
Luxury brands have been selling strongly in China as residents can't travel overseas on expensive foreign shopping sprees due to coronavirus travel restrictions.
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| William Bao Bean |
“There are two things to take note of. First, that people need to understand we’re heading into an economic downturn. The second thing is that this type of shock is quite special because it’s driving an equally massive change in habits,” Bean says in an interview with e27.More at E27.
“Stay at home is driving the adoption of digital [platforms] extremely quickly. So on the one side, it’s an economic apocalypse, but on the other side, people are focussed on the change of habits,” he continues.
While balancing these two directions can be tough, there is plenty of good news on the ground...
Winners of the future will be very different from the winners of the past which, according to Bean, will mostly be driven by newly formed habits.
E-sports is expected to be “fricking huge,” he says.
“With an audience larger than the NBA, tennis and American football, it’s over half a billion people who watch these sports. Plus, you know, some people [prefer to] watching it, instead of playing it. Right now, a lot of sports are not airing and who is the beneficiary of [having] no sports on TV?” the investor points out.
Gaming has become one of the most common past times of entertainment and experts predict that the trend is here to stay.
Twitch, a leading live streaming platform for gamers, noted a viewership increase of 56 per cent this quarter compared to Q1 2020 while growing 60 per cent year over year. Facebook Gaming also saw a boost from the lockdown growing 75 per cent throughout Q1 until now.
Aside from gaming, Bean also expects online education and online media to have a longevity period of growth. This is mostly driven by the needs of parents and students who were forced to study from home during the circuit breaker measures implemented in Singapore, and similar approaches taken in other countries.
As with the case of e-sports, online media are also experiencing a surge in popularity as customers see their offline entertainment sources becoming limited.
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| Ashley Dudarenok |
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| Shaun Rein |
Shaun Rein, managing director of the China Market Research Group in Shanghai, says the market is still small but there is potential, given the open-minded nature of Chinese cookery and a willingness of shoppers to experiment.
"Chinese consumers are indeed always looking for alternative sources of protein. We think the market for plant-based meat is about $910m (£730m) and will grow about 20-25% annually. There's a lot of excitement about these 'fake' meats, but the market is fairly small."More on the BBC.
But price is a big driver when it comes to long-term change, he adds. "When we interviewed blue-collar workers one of their main concerns was the price. The big winner could be 'fake' meat, or it could be seafood."
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| Arthur Kroeber |
