Digital marketing trends for China in 2022
In this article (11)
Digital marketing trends are always evolving in China and without the set features of global platforms like Google and Facebook, Chinese digital companies are often leading the rollout of promotional and ecommerce features on their platforms. Therefore, it is very important to stay on top of these trends to leverage the most value out of every marketing dollar.
Live streaming shopping format
Livestreaming is one channel that has become extremely popular in China. In 2020 alone, $1.2T of sales were generated through livestreaming with $151B generated on Singles’ Day which is a big shopping day in China. Platforms from Alibaba and Tencent are pushing this medium and social media applications like Douyin have also added very successful livestreaming options with integrated online stores. KOL marketing in China has become part of the strategy for major brands and you will find celebrities and even diplomats using the medium to get information out and sell for brands, report Ashley Dudarenok from Alarice International, a digital marketing agency specialised on the Chinese market.
Rise of Bilibili
Another interesting development in the social media space has been the rise of Bilibili as a force to contend with. Originally started as a community for those interested in anime and videogame culture, the site has grown to 171 millions monthly users. Bilibili offers brands the chance to target younger demographics directly and keep track of the trends popular among the young in China. 70% of users on the platform are below the age of 24 and this allows brands to push out very relevant content. Collaborations with KOLs and content creators on this platform will also reap huge benefits.
WeChat mini programs
WeChat mini programs allow brands to create a customized interactive experience for their followers. The number of people using WeChat mini programs has risen by 11% to 829 millions monthly users from 2019 to 2020 and continues to grow. The huge variety of applications that can be created on the platform can range from the useful, like productivity apps to the inspirational, like stories told through games. Leveraging this open form tool will be integral to marketing strategies as we move forward.
“Originally started as a community for those interested in anime and videogame culture, the site has grown to 171 millions monthly users .”
Existing brands’ goals
Brands should also examine case studies of other companies that have made successful forays into China. Some of the trends that these brands are focused on include:
Brands want to create private traffic
Over the last few years of international brand penetration competing with domestic companies, advertising and therefore, acquisition costs in China have skyrocketed. On Tmall, the customer acquisition cost more than doubled from 207RMB to 536 RMB from 2018 to 2019. So, brands have started to work out strategies to reduce reliance on traffic from external platforms like WeChat and ecommerce platforms. This means creating owned properties like blogs and email lists where customers can be contacted directly instead of having to rely on traffic from external sources.
Brands want to reach lower-tier cities and young consumers
Another area of growth has been targeting demographics where there is still market share to be won. Lower-tier cities have increasing mobile network penetration and spending power which makes them very attractive. This is a strategy being used by Pinduoduo, an emerging ecommerce platform looking to compete with Alibaba and Tencent. Using a combination of low prices and social features, the company has seen the most growth year on year compared to Alibaba and Tencent. Targeting younger consumers has also been on the agenda for many brands and platforms like Bilibili allow for this.
Conclusion
Having an appreciation that consumer expectations and buying culture in China can be very different from other countries is very important to success.
Questions & Answers
Q.Which digital platforms are leading the rollout of promotional and e-commerce features in China?
Which digital platforms are leading the rollout of promotional and e-commerce features in China?
Platforms from Alibaba and Tencent are actively pushing livestreaming as a medium. Also, social media applications like Douyin have successfully integrated online stores with their livestreaming options.
Q.What is Bilibili and what opportunity does it present for brands?
What is Bilibili and what opportunity does it present for brands?
Bilibili began as a community for anime and videogame culture and now has 171 million monthly users. It allows brands to target younger consumers, as 70% of its users are under 24, enabling relevant content delivery.
Q.Why are brands in China focusing on creating 'private traffic'?
Why are brands in China focusing on creating 'private traffic'?
Brands are creating owned properties like blogs and email lists to reduce reliance on external platforms. This is because customer acquisition costs on platforms like Tmall have significantly increased, more than doubling from 2018 to 2019.
Reader pulse
Which trend offers the biggest opportunity?
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