Social Commerce Report
Social Commerce Report
Checked
CONTENTS
2023 SOCIAL COMMERCE REPORT
INTRODUCTION 5
The Basics of Social Commerce 6
SOCIAL COMMERCE TRENDS IN CHINA 159
The Key Features of Social Commerce 17
Generative AI 160
The Bene ts of Embracing Social Commerce 26
Virtual In uencers 167
Chinese and Western Social Commerce 35
Data Ownership 174
Platforms Compared
Metaverse Shopping 181
CONSUMER INSIGHTS 46
SOCIAL COMMERCE STRATEGIES IN CHINA 189
Gen Z 52
Food and Beverage Social Commerce Strategies and Best Practices 192
Women 65
Mother and Baby Social Commerce Strategies and Best Practices 200
The New Middle Class 78
Apparel Social Commerce Strategies and Best Practices 208
Household Product Social Commerce Strategies and Best Practices 216
SOCIAL COMMERCE JOURNEYS AND TECH 91
3C Product Social Commerce Strategies and Best Practices 224
Customer Journey Elements Unique to Social Commerce 93
The Technologies That Power Social Commerce 106
KEY TAKEAWAYS 232
THE CURRENT SOCIAL COMMERCE SITUATION IN CHINA 129
CONTACT US 246
Marketing Data 130
WeChat 137
Douyin 147
Xiaohongshu (Red) 151
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CHATLABS SOLUTIONS
ChatLabs won the prestigious 2023 LVMH Innovation Award for Data & AI!
ChatLabs works with several leading global brands in the luxury, retail, nancial services, tourism industries
including Richemont, Chopard, Shiseido, LVMH, La Prairie, Shangri-La, United Airlines, HSBC, and more.
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INTRODUCTION
WHAT IS SOCIAL COMMERCE?
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1
1
THE BASICS OF
SOCIAL COMMERCE
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CREATOR’S BITE
Q: HOW HAS THE RISE OF SOCIAL COMMERCE IMPACTED MARKETS
WORLDWIDE, AND WHAT ROLE DOES CHINA PLAY IN THIS LANDSCAPE?
Social commerce has experienced rapid growth in both developing and
developed markets, with regions like Africa skipping the traditional PC and
smartphone-based e-commerce stages. China, as a key player in this
emerging landscape, bene ts from a well-established, advanced, and
reliable supply chain. Furthermore, the country's unique advantages, including
a skilled workforce and competitive business environment, set it apart from other
nations and make it an in uential force in the global social commerce sphere.
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Traditional
e-commerce Social commerce
DOUYIN KWAISHOU DIANTAO
Source: Wushuangyunying
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GET READY FOR THE CONDUCT MARKET RESEARCH TO TAILOR YOUR SOCIAL
POPULARITY OF IDENTIFY YOUR OPPORTUNITIES COMMERCE MARKETING
SOCIAL COMMERCE AND CHALLENGES STRATEGY
For businesses to remain To assess social commerce It’s essential that businesses tailor
competitive in China’s evolving opportunities and challenges, it's their social commerce marketing
market, they must embrace vital to do market research to get strategy to create content that
social commerce and invest in it insight into customer behaviour, resonates with their target
to capitalize on this growing assess market potential, test audience and encourages social
trend. product concepts and more. sharing.
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EXPERT BITES
Q: WHAT CAN FOREIGN FIRMS LEARN FROM CHINA'S SOCIAL
COMMERCE CUSTOMER SERVICE AND USER
EXPERIENCE APPROACHES?
Social commerce isn’t just gami ed online shopping, or buying recommendations
from your favourite in uencer on instagram here - it’s a full stack go-to-market
sales strategy for many brands, and brands who are doing it successfully
leverage highly localised, highly gami ed physical Brand Experiences - with
scannable integrations, that take shoppers straight back online - so they are able
to make regular, repeat contact through social platforms. It’s a very exciting
space.
RONEN SIMHI
Vice President Sales & Strategy
Of Outform
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EXPERT BITES
Q: WHAT SOCIAL COMMERCE TRENDS DO YOU SEE IN CHINA TODAY
THAT WILL BOOM IN 2023/24?
The recent 6.18 shopping festival highlighted the signi cance of content in China,
where short videos, in uencers, and livestreaming gained traction on Alibaba's
marketplaces. Generative AI tech is also being explored to reduce content
costs and drive further sales.
Apple product experts conducted their rst livestream during 618, offering
lmmaking tips and demonstrating the use of the Apple Watch for workouts. The
livestream garnered impressive engagement with 1.3 million viewers and
300,000 likes within just one hour. Content played a pivotal role for many MEI CHEN
retailers during the 6.18 event. General Manager Lifestyle &
Luxury of International Business,
Alibaba Group
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EXPERT BITES
Q: WHAT ARE THE KEY FEATURES OF SOCIAL COMMERCE IN CHINA?
ARE THEY DIFFERENT TO THE REST OF THE WORLD, IF SO, HOW?
China's social commerce features integration with social media, live-stream
sales, group buying, in uencer marketing, and a mobile- rst approach. Platforms
like WeChat enable product discussion, recommendations, and in-app
purchases. Live-streaming e-commerce on platforms like Taobao Live provides
interactive, engaging shopping experiences.
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2
1
THE KEY FEATURES OF
SOCIAL COMMERCE
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#沉浸式 #怀旧
Consumers on social media are often more 34.33 billion 86.88 billion
open to high-quality brand narratives and views* views*
content because the platforms are where
they connect with friends and family and
where they look for recommendations. They
can also see purchases made by KOLs and
friends so their purchase motivation is
higher.
*Douyin views were checked on March 27, 2023 Videos: Douyin @胡兵,@丫丫⼩卖铺
Images: Douyin@ Douyin, @王⻉宁Beira, Burberry’s of cial Douyin account, Burberry’s website
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Source: Pop Mart Images: Screenshots from a Pop Mart’s WeChat group, mini program and their of cial Douyin store
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EXPERT BITES
Q: HOW DOES CHINA'S SOCIAL COMMERCE COMPARE TO
TRADITIONAL COMMERCE, AND WHAT ARE THE REASONS FOR ITS
CURRENT STATE?
Traditional commerce is still the main sales channel, but social commerce is growing very fast.
It’s giving an opportunity to young brands in the Chinese market, which don’t have big
budgets for huge promo campaigns, but use creative approaches to reach their TA.
So if you know how to present your product and create demand you will win on Douyin and ARTEM ZHDANOV
RED, which also will increase your sales on traditional platforms such as Tmall or JD. Founder and CEO of EKD Group
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EXPERT BITES
Q: HOW HAS SOCIAL COMMERCE AFFECTED CHINA SALES, AND IS IT
A VIABLE OPTION FOR BRANDS TARGETING THE CHINESE MARKET?
Back in 2018, I’ve seen many sales staff in stores creating WeChat groups of customers and using
those groups to bring a more personal feel to sales. China is a country of huge numbers and so this
kind of quasi-personalisation was a way to gain loyalty and push sales. Live-streaming had
already started, but it wasn’t a must-have, but more of a way to gain a unique position as a foreign
brand. Since then the trend to livestreaming had accelerated. The “edutainment” aspect is a
completely different way to look at the consumer journey than the “functional” approach more
favoured in Europe & it’s hard for brands to adjust and train their staff accordingly. This aspect of
branding is always a dif cult line to walk for overseas brands: to keep the core messaging whilst
also being relevant for Chinese consumers.
KATHRYN READ
If brands want to work with KOLs or KOCs it’s actually quite hard to make the choice of who truly
ts to the brand values, when you are on the other side of the planet and don’t understand the
International Sales and Marketing
language well enough to pick up on nuances. I believe that social commerce is a good opportunity
Consultant
for brands looking to explore the Chinese market, however they have to be careful to choose the
right collaboration partners and channels as the market is so fragmented.
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EXPERT BITES
Q: WHAT ARE CHINA'S TOP SOCIAL COMMERCE BRANDS, AND WHAT
ARE THEIR SUCCESSFUL AND UNSUCCESSFUL STRATEGIES?
Florasis has a long term focus on leveraging Douyin's social commerce system. Initially, Li
Jiaqi played a signi cant role in establishing Florasis as a popular internet brand. However, in
recent years, the brand has shifted its focus to hosting live sessions on its own,
aiming to enhance its brand image.
It’s important to note that the brand is currently in the process of reducing its reliance on top-
tier in uencers like Li Jiaqi. This shift is driven partly by the high costs associated with
such in uencers and the uncertainty surrounding their long-term impact. To facilitate
ARNOLD MA
this transition and enhance the development of its private customer base, the brand should Founder and CEO of Qumin
consider leveraging other platforms such as the WeChat ecosystem.
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THE BENEFITS
1
3 OF EMBRACING
SOCIAL COMMERCE
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Source: Pepsi’s of cial Douyin account @百事可乐中国, March 24th, 2023 Images: Screenshots from Pepsi-Cola Douyin account for branding,Douyin account for selling, livestreaming
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Source: Kuaishou Magnetic Engine Images: Screenshots from Louis Vuitton’s mini programs and their WeChat customer service account
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4.84
Social commerce platforms let brands simplify the TRILLION RMB
checkout process, provide interactive engagement ESTIMATED SOCIAL COMMERCE TRANSACTION VALUE IN CHINA
and leverage social proof to drive sales and revenue. (2022)
Source: ASKCI
Large social media platforms can Use mini programs, direct links to
Build stronger customer
increase brand visibility and your brand’s store, easy online
relationships through interactive
enable brands to connect easily payment options, virtual try-ons,
social commerce features, such
with their target audience as well livestream sales, and exclusive
as livestreaming, shoppable
as new customers with the right offers for members to increase
posts, gami cation and more.
marketing strategy. sales and customer loyalty.
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EXPERT BITES
Q: WHAT ARE KEY DIFFERENCES BETWEEN CHINESE SOCIAL
COMMERCE AND OTHER REGIONS, AND HOW CAN FOREIGN FIRMS
ADAPT THEIR STRATEGIES ACCORDINGLY?
China's social commerce differs from other regions due to mobile- rst consumers, deep
integration of social media and e-commerce, and the popularity of live-streaming sales.
In the west, shopping shares a 50-50 split with PC and usually one of the big social media
giants such as Facebook, Instagram, Pinterest or TikTok. Facebook had expanded from being
a social networking site to include Marketplace, where individuals can buy and sell items
locally.
Instagram introduced shopping features that allow businesses to tag products in their posts SHARON GAI
with links that lead directly to their online store. Pinterest has "Buyable Pins" that allow users Director of Global Key Accounts,
to make purchases without leaving the platform. Alibaba Group
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EXPERT BITES
Q: WHAT ARE THE MOST IMPORTANT TRENDS FOR CHINA IN 2023 IN
TERMS OF CONSUMPTION AND COMMERCE?
Consumers are de nitely more cautious this year than in past years and we are seeing this
re ected in much more careful purchasing behaviour. Consumers are still spending but they
are becoming much more intentional in their purchases, are doing more research, and
are trading down when possible.
We are also seeing an ongoing shift towards more searches for speci c brands rather than
searches tied to product function. This means that it is more important than ever for brands
to be leveraging social platforms in China to educate consumers about brand history BENJAMIN CAVENDER
and heritage, to build awareness, and to build engagement. Managing Director and Head of
Strategy of China Market
Research Group
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EXPERT BITES
Q: HOW DO CHINESE COMPANIES UTILISE SOCIAL MEDIA
PLATFORMS FOR SOCIAL COMMERCE, AND WHAT CAN FOREIGN
FIRMS LEARN FROM THEIR STRATEGIES?
Chinese brands, in general, exhibit a fearless willingness to explore new
formats and take unconventional approaches, unburdened by the need for a
proven methodology. They embrace a test-and-learn mindset, even if it means
deviating from their established brand image. This mindset is deeply rooted in a
fast-paced culture that embraces rapid change.
Foreign companies can learn from this by adopting a similar mindset of brand
exploration, avoiding excessive overthinking and reliance on data. ELISA HARCA
Co-Founder of Red Ant Asia
4 SOCIAL COMMERCE
PLATFORMS COMPARED
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WECHAT WORK
CHANNELS MOMENTS
ADS
FACEBOOK
LIVE
FACEBOOK
Facebook focuses on posts, messaging, short videos, FRIENDS MARKETPLACE
livestreams and groups. Businesses can create pages and
ads but not stores. Facebook’s marketplace is mostly for
sales between people locally. Meta Pay can be used within
the app after linking a debit card, credit card, Paypal or Shop STORIES PAGES
Pay account. On October 1st, 2022, Facebook shut down FACEBOOK
its livestreaming shopping feature to focus on short
video.
REELS AD CENTRE
DOUYIN
Fitness celebrity Will Liu@ 刘耕宏 was banned from livestreaming due to his muscular
chest. Doyen’s AI content detection determined that he was nursing.
Source: CNET, Social Media Today, Exploding Topics Images: Screenshots from Douyin @刘耕宏, TikTok @ rosiebreenx via The Independent
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TIKTOK
Source: CNET, Social Media Today, Exploding Topics Images: Screenshots from Douyin @刘耕宏, TikTok @ rosiebreenx via The Independent
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The company cut 500 jobs in August,
2022 and another 500 in January, 2023.
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EXPERT BITES
Q: WHAT ARE THE KEY FEATURES OF SOCIAL COMMERCE IN CHINA?
ARE THEY DIFFERENT TO THE REST OF THE WORLD, IF SO, HOW?
The Chinese model of social commerce boasts a unique set of characteristics,
such as group buying, livestreaming, mini-programs, private traf c, and
in uencers, which have not yet been fully incorporated into global social
commerce models.
However, there's one core feature that underlies China's remarkable success and
distinctiveness in social commerce: the blurring line between social media
and e-commerce platforms. In China today, the demarcation between the two
is extremely thin as social media applications have integrated e-commerce RAY VERAS
functionalities and vice versa, leading to the creation of synergistic social-
shopping ecosystems. Co-Founder & CEO of PJdaren
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EXPERT BITES
Q: WHICH TOP CHINESE AND INTERNATIONAL FMCG BRANDS EXCEL
AT SOCIAL COMMERCE?
My favourite example is probably HeyTea, who have succeeded in transforming that most
Chinese of products into an experience. I love the way they combine online and of ine touch-
points to enhance their brand awareness e.g. hiring experts to talk about their products,
creating a sense of scarcity and popularity by lots of new launches, collabs with popular
IP shows such as Meng Hua Lu a few months back, supporting their premium price
positioning with sustainable packaging and straws.
For global brands, Lays had a successful approach in 2021 when they jumped on the
“guochao” wagon and collaborated with 3 local brands to produce crisps with distinctly KATHRYN READ
Chinese avours. The products provoked a viral response from consumers who were
International Sales and Marketing
encouraged to share pictures and opinions online. This kind of co-branding has worked pretty
Consultant
well for many brands.
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EXPERT BITES
Q: IN YOUR VIEW, HOW'S SOCIAL COMMERCE IN CHINA DIFFERENT
FROM THE REST OF THE WORD?
Well, the needs in China are far different from other markets and it's mainly due to
its size. You can't easily go to do of ine shopping, too time consuming and needs
(variety) are far much more bigger than other countries. Therefore e-commerce
has been the solution to solve those issues. It made local players much more
innovative and stronger to reach the current digital level of China market.
Social commerce has been the latest step to catch Chinese consumers by
bringing the so-called social link to the purchase. Live-streamers or KOL have
been replacing the of ine Sales Assistant. They could bring a proximity that OLIVIER PICHON
you don't have in traditional e-commerce.
Founder of PRIVET
Rest of the world can, most of time, go downstairs their home to nd what they
need. In China, you can't.
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CONSUMER
INSIGHTS
CREATOR’S BITE
Q: HOW ARE SOCIAL COMMERCE PLATFORMS RESHAPING SHOPPING
EXPERIENCES IN CHINA?
As traditional e-commerce growth slows in China, social commerce platforms like Douyin, Kuaishou,
WeChat, and Pinduoduo have driven most of the country's online retail growth. Social
commerce sales increased from $352 billion in 2021 to $406 billion in 2022, driven by livestreaming.
Live commerce, which accounted for over a third of social commerce, has continued to grow, with
categories like fashion on Douyin outselling Tmall. This shift highlights Chinese consumers'
desire for entertaining shopping experiences, leading to higher conversion rates on
livestreams compared to traditional channels.
The
Gen Z Women New Middle
Class
34% 58% 65%
by Age by Gender by Income Group
EXPERT BITES
Q: WHAT IS THE 2023 STATUS OF CHINESE CONSUMERS? IS
CONSUMPTION RECOVERING OR SLOWING, AND WHAT CAN WE
EXPECT IN H2 2023 AND H1 2024?
Consumers are on a slow and cautious recovery, but the recovery is not as
quick and robust as people would like or expect. China's youth unemployment
rate hit a new high of 20.8% in May (those aged between 16 to 24).
These uncertain economic conditions are making people more cautious and
selective with their purchases and money. Of cial data also show slowing
sentiment.
QIN CHEN
I expect the recovery to continue for the second half of 2023, but still at a slower
pace. Geopolitical tensions and weak global demand will continue to depress Managing Editor of TechNode
China's recovery, but the country is likely to remain a key driver of global growth
this year.
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EXPERT BITES
Q: WHAT ARE SOME OF THE CHALLENGES THAT FOREIGN
COMPANIES MAY FACE WHEN ENTERING THE CHINESE SOCIAL
COMMERCE MARKET, AND HOW CAN THESE BE OVERCOME?
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EXPERT BITES
Q: WHAT IS THE STATE OF LUXURY TECH IN CHINA IN 2023, AND
WHAT ARE THE MAJOR AREAS OF GROWTH?
In 2023, China continues to be a key player in the luxury tech space and China has
witnessed signi cant development in various areas, including a comprehensive update in
Digital and EC experience, diversi ed digital experience & personalised online shopping
experience are always valued by big technology companies.
Luxury brands in China are leveraging AI and big data to analyse consumer
behaviour, personalise marketing campaigns, and improve customer experience. AI-powered
chatbots and virtual assistants are being used to provide personalised recommendations and
MELLISA LIM
assist customers. Omni channel Marketing Director
for Vacheron Constantin
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1 GEN Z
22% Gen Z
20.3%
19.1%
17.2%
Young people are a key internet user and 16.5%
consumer group in China. There are an 14.5%
13.5%
estimated 342 million of them active online.
11.3%
They're often tech-savvy and highly 11%
connected, making them more likely to shop
online and use mobile payment methods.
5.5%
4.2%
0%
Under 10 Aged 10-19 Aged 20-29 Aged 30-39 Aged 40-49 Aged 50-59 60 and older
48% 47%
42%
Before the pandemic, Gen Z was the age group most 36%
36%
likely to buy products spontaneously. What's even
more interesting is that this was also true when
compared to their Gen Z counterparts in Australia
(29%), Japan (27%) and South Korea (21%). 24%
12%
0%
Gen Z Millennials Gen X
0
High-end products Health Affordable Necessities
and services and lifestyle entertainment
Source: BCG
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1.4
1.4
0.35
0
Gen Z Gen Y Gen X Baby Boomers
Source: BCG
Unit: RMB
}
>3,000 9.2%
Total: 30.8%
+2.7% YoY
30.8% of Gen Z consumers will sometimes spend more
than 2,000 RMB online, up 2.7% from last year. As 2,000-2,999 21.6%
members of this age group grow older and enter the
workforce, they will have more disposable income to
spend on products and services. 1,000-1,999 41.4%
300-999 22.1%
1-299 5.8%
Source: Questmobile
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1.88 1.85
1.9
1.53
Video, social networking, gaming and 1.37
1.425
entertainment apps are the most popular among
Gen Z. Kuaishou and Douyin are social
commerce apps with large Gen Z user bases. 0.95
0.475
0
Kuaishou Douyin Douyin Speed Version WeChat
Source: Questmobile Note: Douyin Speed Version is a compressed version of Douyin short videos.
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Source: BCG
Image: ⼗⼀酱, 女流, 漫展保安王⼤爷, ⼦康 from Douyin
@猪屁登 (Zhū Pì Dēng) @张⼤仙 (Zhāng Dà Xiān) @彭⼗六elf (Péng Shí Liù elf) @果冻是只可爱猫 @程⼗安an
Douyin followers: Douyin followers: Douyin followers: (Guǒ Dòng Shì Zhī Kě ài Māo) (Chéng Shí ān an)
23.7 million 42.2 million 33.4 million Douyin followers: 14.1 million Douyin followers: 29.4 million
Source: Questmobile Image: 猪屁登, 张⼤仙, 彭⼗六elf, 果冻是只可爱猫, 程⼗安an from Douyin
17.5%
0%
Quality Price Brand Fashion Experience
EXPERT BITES
Q: WHAT ARE THE PREVALENT TRENDS IN CHINA'S PRIVATE
DOMAINS FOR MARKETING, SALES, AND CUSTOMER SERVICE?
EXPERT BITES
Q: WHAT ARE SIGNIFICANT BARRIERS OR THREATS TO SOCIAL
COMMERCE DEVELOPMENT IN CHINA, THE USA, EUROPE, AND
BEYOND?
The foundations were laid for e-commerce between 2004 and 2014, the “New Retail
Model” evolved in the years that followed and social commerce was/is the perfect
evolution of digital commerce. Consumer demands will drive the new forms it takes
in China. The only threat is the view that the government takes towards
social commerce, in uencers, cross border and data.
In the rest of the world the only barriers to growth right now are lack of information
about what social commerce (that actually focuses on native commerce) is
and how it is a cornerstone of “Immersive Commerce”. e-commerce in the MICHAEL ZAKKOUR
West is agging and is in need of evolution and rejuvenation. Social commerce is an Founder of 5 New Digital and
important new cornerstone for digital. Consumers are fatigued with an e-commerce China BrightStar
model that hasn’t changed much in ten years. Interactive and immersive commerce
based on the China model is being employed well by some brands and retailers but
it must, and I believe will, see mass adoption in the next two years.
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EXPERT BITES
Q: WHAT TRENDS AND INNOVATIONS WILL SHAPE CHINA'S SOCIAL
COMMERCE FUTURE, AND HOW CAN FOREIGN COMPANIES ADAPT?
Trend 1: Content is key.
The surge in content-driven purchases on social media stems from engaging, compelling
content. For social commerce success, businesses need to create captivating content that
drives conversions.
Trend 2: It’s all about community building.
Community building is crucial in social commerce as it enables direct two-way
communication between brands and consumers.
MOONIE ZHU
Trend 3: Closed loop consumer journey from search to transaction.
Managing Director of eTOC
Social media platforms play a signi cant role beyond driving traf c to traditional e-
GmbH
commerce websites. Chinese consumers increasingly rely on social media for product
searches, bypassing search engines.
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2 WOMEN
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DECISION-MAKING
SPENDING POWER TRANSACTION RATIO
POWER
10 trillion yuan
70+%
60+%
Female social commerce users are most represented in <24 years old 24.1%
the under 24 and the over 50 age groups. Social
commerce is an effective way to reach these target 25-30 years old 12.1%
audiences with tailored strategies.
}
2,000-2,999 20.6%
30.7%
>3,000 10.1%
Source: CBNDATA
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276%
YoY increase in average GMV
Source Douyin
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Women in general are strongly interest in beauty and skincare content. This includes makeup tutorials, fashion tips, and beauty
routine videos on social commerce platforms.
THE TOP 4 CATEGORIES VIEWED ONLINE BY WOMEN 22.83 BILLION VIEWS 8.3 BILLION VIEWS
(JANUARY 2023) DOUYIN #SKINCARE SHARING DOUYIN #MAKEUP
40%
35%
20%
13.2%
10%
0%
Beauty and Food and Household Mother and Baby
Skincare Beverage appliances products
Source: Questmobile
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Douyin has the highest rate of female users and growth. Women are more likely to stick with Douyin, but the time they spend on
Red has increased signi cantly over time.
FEMALE MAU AND YEAR-ON-YEAR GROWTH RATE USAGE TIME AND FEMALE USER YOY GROWTH RATE
(JANUARY 2023) (JANUARY 2023)
Source: Questmobile
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Source: Observations of top-rated content on Douyin, Weibo, Xiaohongshu, Bilibili and Kuaishou Images: 摄影师李⼩龙, 毒⾆电影, 疯狂⼩杨哥, Winnie⽂, 李佳琦Austin
Active female followers Active female followers Active female followers Active female followers Active female followers
+ 164.7% YoY + 147.5% YoY + 122.7% YoY + 116.8 % YoY + 113.7 % YoY
@房琪kiki (Fáng Qí kiki) @崔磊-为思考点赞 (Cuī Lěi) @都靓读书 (Dōu Liàng Dú Shū) @神州摄影 @⾦⽑多多的成⻓
Douyin followers: Douyin followers: Douyin followers: (Shén Zhōu Shè Yǐng) (Jīn Máo Duō Duō De
22.8 million 14.3 million 5.3 million Douyin followers: Chéng Zhǎng)
8.9 million Douyin followers:
8.3 million
Source: Sealand Securities January 2023 Images: 房琪kiki, 崔磊-为思考点赞, 都靓读书, 神州摄影, ⾦⽑多多的成⻓
37.5
0
Health Price Brand Fashion Quality
Source: Questmobile
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EXPERT BITES
Q: WHAT ARE KEY TRENDS SHAPING CHINA'S SOCIAL COMMERCE
FUTURE, AND HOW CAN FOREIGN FIRMS PREPARE FOR THESE
CHANGES?
The overall cost of e-commerce is increasing, including expenses related to
channel advertising and working with MCN (KOLs). For mature and resourceful
leading brands, integrating Experiential marketing is crucial. This involves
connecting with the target audience through a combination of classical
social EC methods (e.g., live-streaming, platform algorithms (Tmall, Douyin),
and KOLs selections) and providing attractive real-life experiences.
Currently, many brands seem to overlook the importance of the latter (e.g., how YUWAN HU
to select & set up a right & creative pop-up store’s location? it’s a good concept,
but fewer succeed). People share their experiences on social media, create
VP at Daxue Consulting
social buzz, and good photos/vlogs matter for social.
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EXPERT BITES
Q: HOW HAVE CHINESE FIRMS LEVERAGED INFLUENCERS FOR
SOCIAL COMMERCE, AND WHAT CAN FOREIGN COMPANIES LEARN?
Chinese companies will use different types of KOLs to achieve three stages of
goals on different functional social platforms:
1. Use those KOLs with good looking or good in uence to establish brand
awareness on the Weibo platform.
2. Use those KOLs with high-quality lifestyle tastes to establish brand
perception and do seeding on the RED/BiliBili platform.
3. Use those KOLs who are good at sales to conduct live streaming on Taobao,
Tmall, and JD platforms to achieve sales conversion. FOLKE ENGHOLM
Different types of KOLs and social commerce platforms with other functions have Ceo Of Viral Access
different missions, and the best-validated execution step is from step one to step
three, which cannot be skipped. This is a valuable experience to learn and learn
from.
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EXPERT BITES
Q: WHAT ARE KEY DISTINCTIONS IN CHINA'S SOCIAL
COMMERCE, AND HOW CAN FOREIGN FIRMS ADAPT?
In China, there is no social without e-commerce and visa versa. They are so
intrinsically integrated that brands cannot afford to develop a strategy that
doesn't account for this unique, commerce-driven journey. And it's only growing.
China's social e-commerce market was projected to reach 2,854.28 billion yuan
in 2022, growing at a rate of 20%, far surpassing the 4% growth of national
online retail sales. As the integration of social traf c and e-commerce deepens,
the industry is expected to achieve a transaction scale of 3,416.58 billion OLIVIA PLOTNICK
yuan in 2023.
Founder Of Wai Social
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3 THE NEW
MIDDLE CLASS
There’s been a slight increase in the proportion and total number of middle-class people on the internet. Online spending and
consumption may increase as more middle-class people shop online.
13%
2021-07 2022-07
(High spending power = online spending power higher than 3,000 RMB per month)
Source: Djyanbao
Post-80s
Post-90s
As the Post-90s middle-class consumer
segment continues to grow from 41.8% in July
41.8%
2021 to 45.7% in July 2022, mid-range and
high-level brands should focus on developing 45.7%
newer, more innovative strategies to
effectively reach this audience online.
54.3%
58.2%
Source: Questmobile
90% 107.8%
30%
Douyin's high usage time and Red's 4,000% 2.8% 5.8%
-6.2%
increased usage time indicate that these Douyin Kuaishou Red Weibo
platforms are particularly attractive to this
37.2
3,000%
consumer group. Marketers should think about
increasing their marketing resources on these 25.4
two channels for products and services that 2,000%
are attractive to new middle class customers.
1,000% 14.4
11.7
0%
Douyin Kuaishou Red Weibo
Source: Wu Xiaobo July 2022 Image source: ⻓江说法, 京剧吴昊, ⽣活⼩妙招, 何⻘阳律师
17.5%
0%
Price Brand Quality Fashion Experience
EXPERT BITES
Q: HOW DO CHINESE COMPANIES MANAGE SOCIAL COMMERCE
PRIVACY AND SECURITY, AND WHAT CAN FOREIGN FIRMS LEARN?
Chinese companies in the social commerce space still implement some typical measures
(which foreign companies are also using) to address privacy and security concerns, including
transparent privacy policies, secure data storage, user consent and control, regular security
audits, secure payment systems and enhanced account security. It's challenging to
compare the ways and claim that foreign companies can learn from Chinese
platforms’ approaches.
Some new techs Chinese social commerce platforms are adopting include blockchain, zero-
SUNNY ZHENG
knowledge proofs, homomorphic encryption, multi-factor authentication and
privacy-preserving machine learning. Research Analyst at Coresight
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EXPERT BITES
Q: WHAT BENEFITS DOES SOCIAL COMMERCE OFFER IN CHINA, AND
WILL ALL COMMERCE BECOME SOCIAL? IF SO, WHEN AND HOW?
As a TP, we've focused on conversion for our brand partners. Years ago, this
meant mastering organic and paid traf c management on marketplaces. Social
commerce often lacks a strong buying intention, but private traf c
management makes a difference. Increased competition and unsustainable paid
traf c led to a surge in customer retention operations.
The key bene t in social commerce is a robust private traf c strategy, connecting
social media and e-commerce sales through a customer-centric CRM. MICHAEL SIMONET
Traditional search-based commerce won't disappear, especially during
Founder of Alea E-Commerce
economic uncertainty, affecting live-streaming and product-linked content
Co.Ltd.
performance.
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EXPERT BITES
Q: WHAT LEGAL AND REGULATORY FACTORS SHOULD FOREIGN
FIRMS CONSIDER IN CHINA'S SOCIAL COMMERCE MARKET, AND
HOW TO NAVIGATE THEM?
Foreign companies seeking to enter the Chinese social commerce market must
understand that the operational requirements of China's social e-
commerce are not set in stone. To successfully navigate this market, it is
crucial to set realistic expectations and evaluate whether and how they can meet
the differences in operational management.
Being agile and exible in operating China's social commerce is SARAH YAM
increasingly important in the future years. This will test foreign companies'
ability to detect new changes quickly and deploy different people with the relevant Co-Founder of Red Digital China
skill set to meet and manage new requirements.
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EXPERT BITES
Q: HOW DO CHINESE BUSINESSES UTILISE SOCIAL MEDIA FOR
SOCIAL COMMERCE, AND WHAT LESSONS CAN INTERNATIONAL
FIRMS LEARN?
Chinese companies focus on a di erentiated product mix, consumer user experience (UX),
integrated marketing, and pricing promotion. Brands are emphasising immersive experiences,
newness, and segmentation. They incorporate trends such as nature, space, wellness, hip hop,
and street culture, using digital technologies like virtual humans, digital collectibles, and
gami cation to make their communications stand out as new and fresh.
Foreign companies can learn from these strategies by adopting a customer-centric approach,
creating immersive experiences, staying updated on trends, incorporating in uencers, and THOMAS NIXON
strategically utilising di erent social media platforms to drive reach, validation,
Co-founder of Qumin
engagement, and conversions.
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SOCIAL COMMERCE
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At ChatLabs, we're always looking for innovative ways to help brands deliver
exceptional customer experiences. We have developed a new solution, SXP,
the winner of the LVMH Innovation Award for Data & AI, that uses AI to create
hyper-personalized journeys for each customer.
MICHEL TJOENG
SVP of Sales and Marketing at ChatLabs
LOOKING TO TAKE YOUR BRAND'S SOCIAL
Follow my LinkedIn for insights on EXPERIENCES TO THE NEXT LEVEL? CONTACT US
AI / Social Commerce / Luxury NOW AND LEARN HOW YOU CAN DO IT WITH AI →
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CUSTOMER JOURNEY
1
1 ELEMENTS UNIQUE TO
SOCIAL COMMERCE
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Instant messaging
1,038.07%
Livestream
750.65%
Music
684.2%
Source: Statista
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- Livestreams
- Shoppable content
Test a few Chinese social Identify the target Strategize where and Monitor and respond
commerce platforms and audience with the when to locate to customer feedback
prioritize those with high goal of forming a shoppable content with promptly and
growth potential and ROI. 360° customer view. incentivizing CTAs. professionally.
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- Product pages
- Membership registration
- Special o ers
Step 2 Step 4
• Send personalized promos
to users’ accounts
Check
stock in
150 pt o ine stores
Prada o ers live customer support
Product recommendations
through its WeChat Mini Program
based on current
for personalized advice and product of interest
recommendations.
Step 2 Step 4
EXPERT BITES
Q: WHAT DO YOU FORESEE FOR THE FUTURE OF SOCIAL
COMMERCE IN CHINA?
Most live-streaming sessions currently adopt a "sell at all cost" way, with little
focus on proximity.
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EXPERT BITES
Q: DOES BEAUTY FIT SOCIAL COMMERCE? WHAT'S CHINA'S 2023
BEAUTY TECH STATUS AND MAIN GROWTH AREAS?
The state of the Chinese beauty industry when it comes to social commerce is
that it has high potential. The Chinese beauty market is projected to reach
USD96 billion by 2027, with 38.7% of 2021 sales online. In 2022, Tmall/
Taobao, Douyin, and Jingdong held 68.8%, 21%, and 11% of GMV.
We can see that Douyin's beauty sales are rising (+491% in 2022) while Tmall/
TaoBao declines (-8.6%). Livestreaming drives sales, and categories like
medical beauty apparel, sunscreen, body care, hair care, and fragrances grow. DAO NGUYEN
The He-economy and silver economy have also expanded.
Founder of Essenzia By Dao
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EXPERT BITES
Q: HOW DOES SOCIAL COMMERCE IN CHINA CONTRAST WITH
CONVENTIONAL E-COMMERCE, AND WHICH PLAYERS DOMINATE
PARTICULAR CATEGORIES AND FOR WHAT REASONS?
All commerce in China is social. Traditional marketplaces like Taobao / Tmall already
transformed into community-driven entertainment and engagement platforms many years
ago. The rise of interactive livestream as a mega channel, for example, was pioneered by
Alibaba with Taobao Live.
But the biggest single shift we see post-Covid is a genuine preference for brand and product
discovery through pure play short video and livestream platforms Douyin and Kuaishou and JOSH GARDNER
China’s community review engine Little Red Book.
CEO of Kung Fu Data
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EXPERT BITES
Q: WHAT DO YOU ANTICIPATE FOR THE FUTURE OF SOCIAL
COMMERCE IN CHINA?
Social new retail, combining social media, e-commerce, and of ine retail, is
predicted to be a major trend in China. It provides seamless consumer
experiences and growth opportunities for retailers. AI's role in social new retail will
grow, enabling personalized recommendations and others. As AI progresses, it
will further improve the social new retail experience in China.
2
1
THE TECHNOLOGIES THAT
POWER SOCIAL COMMERCE
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2. Unify social follower data from China channels, .cn website, and Salesforce for
comprehensive customer pro les.
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Data uni cation and activation: Linking Break down silos between marketing,
customer pro les with a single personal sales, and service: Collect, unify, segment,
information identi er allows for effective and activate data from all touch-points for a
personalization and targeted marketing. 360° customer view.
Provide a personalized 1-on-1 livestream Customers can join without opening their own
product showcase service upon request, camera but with audio open to ask questions or
where customers can book an appointment request other product showcases.
with a product expert to showcase speci c
products and answer any questions. Allow customers to view the product page without
leaving the livestream session. The livestream window
can be oating at the bottom right corner while the
Send a template message reminder customer is browsing the product page.
before the appointment to ensure
customers remember and arrive on time. Archive all the products that the customer is
interested in, regardless of whether they were showcased
or not. Send the list to the customer for further reference.
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• purchase history
• wish lists
• app activity
• click data
1st Party Sources
• data from private tra c, such as
conversational data
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Consolidate customer data from multiple Collaborate with local brands to gain a
platforms using CDP to get a uni ed view of better understanding of the Chinese
the customer and deepen understanding of their market and create more effective marketing
behaviour and preferences. strategies.
AI-powered
chatbots,
recommendation 84% of CAGR of
US$ 22.6 billion engines, Chinese 48.4% from
by 2023 personalized
marketing
consumers 2018 to 2023
campaigns
Growth of
AI’s market share Are willing to share
Key drivers of China’s E-commerce AI
in China’s their data for
AI market growth in China
social commerce market personalized experiences
(eMarketer) (PwC)
(eMarketer) (PwC)
BOOK
They employ generative AI to create SOCIAL AD
APPOINTMENT
CREATIVE GOALS
customized customer journeys with tailored CONTEXT
content and dynamic CTAs, leading to
increased conversion rates.
SPEAK TO ADVISOR
QR CODE
conversion experience.
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• Machine learning
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Create customer pro les that include Streamline social commerce sales chats and
purchase history, preferences, and contact answer common customer queries using chatbots
information. and automation, allowing sales agents to focus on
more complex inquiries.
Use messaging and communication
tools to start personalized social
commerce sales chats with customers.
Monitor engagement metrics such as open rates,
click-through rates, and conversion rates. Re ne social
O er real-time assistance commerce sales chat strategies over time based on
and recommendations. the data collected.
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EXPERT BITES
Q: WHAT ARE YOUR PREDICTIONS FOR THE FUTURE OF SOCIAL
COMMERCE IN CHINA?
I predict that social commerce will continue to thrive, especially for smaller niche
brands where they often get lost among the masses of large traditional e-
commerce platforms. Brands need to understand the connection between
interest, content and sales in order to best understand how to convert consumers
into loyal customers. Due to lower repeat purchase rates, social commerce will
not replace the likes of Tmall and JD, but will become the rst point of
discovery for consumers.
RYAN MOLLOY
EXPERT BITES
Q: WHAT'S CHINA'S SOCIAL COMMERCE LANDSCAPE, AND
WHICH CHANNELS EXCEL AND WHY?
In uencer marketing, livestream commerce, social sharing, user-generated
content, and integrated payments contribute to the success of Chinese social
commerce.
For example, WeChat, facilitates content sharing, product sales, and advanced
customer service. WeChat Pay ensures seamless payments. Douyin, which
emphasises social interaction and live-streaming, has become a major player in
social commerce. Kuaishou relies on domestic e-commerce platforms like OLIVIA PLOTNICK
Taobao and JD.com, while Xiaohongshu is famous for in uencer cooperation,
especially in disseminating ideas and creating trends. Founder Of Wai Social
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EXPERT BITES
Q: WHAT ESSENTIAL TECHNOLOGIES DRIVE SOCIAL COMMERCE
SUCCESS, AND WHERE IS FURTHER DEVELOPMENT NEEDED?
All commerce in China is social. Traditional marketplaces like Taobao / Tmall already
transformed into community-driven entertainment and engagement platforms many years
ago. The rise of interactive livestream as a mega channel, for example, was pioneered by
Alibaba with Taobao Live.
But the biggest single shift we see post-Covid is a genuine preference for brand and product
discovery through pure play short video and livestream platforms Douyin and Kuaishou and
China’s community review engine Little Red Book. JOSH GARDNER
THE CURRENT
SOCIAL COMMERCE
SITUATION IN CHINA
WHAT’S
WHAT’S HAPPENING
HAPPENING NOW?
NOW?
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1 MARKETING DATA
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12 25 47 17 34 60 99 140 182
Source: Deloitte Note: Estimates do not include community commerce. For social media commerce, purchases made within apps as well as redirected purchases are included. In
China, social e-commerce encompasses livestreaming and group buying. Additionally, virtual stores include socially-driven gaming platforms like Roblox.
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for its local services
GMV (eMarketer) (eMarketer) (eMarketer) (eMarketer) (eMarketer)
(36Kr)
User Tra c Value
(Sept. 2022),
RMB 78 billion - RMB 24 billion RMB 55 billion RMB 24 billion RMB 27 billion
MoonFox
Monthly Active
751.3 million 586.7 million
1.67 billion (2023) 730 million (2023) 200 million (2022) 573 million (2023)
Users (2022) (2023)
articles, games,
articles, pictures
articles, pictures
product
short videos,
short videos with livestreams
guidance, reviews, topic discussion
Methods livestreams
pictures with links links, livestream with links recommendations
• brand mini programs
games,
content (by engagement)
Popular Content
• brand livestreams
beauty,
entertainment, professional
hot topics/in uencer
• healthcare, skin care and
EXPERT BITES
Q: IS THE LUXURY INDUSTRY SUITED FOR SOCIAL COMMERCE?
WHAT IS CHINA'S 2023 LUXURY TECH LANDSCAPE, AND WHERE ARE
THE PRIMARY GROWTH AREAS?
It is no surprise that in the largest market in the world for Social Commerce (China), we’ve
seen such extensive and transformational changes in the last 5 years. From a tool
primarily suited to lower price point items, lower tier cities and group buying, social commerce
has evolved into an attractive format also for brands operating in the luxury space.
Rather than seeing social commerce exclusively as a sales generator and promotional tool,
treating it as a hybrid between community-building, engagement driver and an
additional sales medium is often the best way for luxury brands to reap the bene ts without JOHN DANZI
damaging brand status & positioning. Head of Brand Partnerships at
APAC Farfetch
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EXPERT BITES
Q: HOW HAS CHINA'S SOCIAL COMMERCE EVOLVED RECENTLY AND
WHAT KEY TRENDS AND INNOVATIONS HAVE SURFACED?
One noteworthy trend is the shift in KOLS who were primarily regarded as
"branding KOLs." Some are now recognising their commercial in uence
and o ering brands a comprehensive social commerce package.
EXPERT BITES
Q: WHAT ARE THE FUTURE PREDICTIONS FOR CHINA'S SOCIAL
COMMERCE, INCLUDING TRENDS, TECHNOLOGIES, AND BRAND
PREPARATION?
WeCom is undoubtedly the primary disruptor in China’s social commerce.
In today's increasingly competitive landscape, capturing users' attention has
become exorbitantly expensive, especially from Public Traf c platforms. WeCom
presents a unique opportunity for brands to not only capture attention but also to
provide users with an exceptional 5-star level concierge service.
The true power of WeCom lies in its remarkable ability to seamlessly connect AURELIEN RIGART
all touchpoints, online and o ine. Looking ahead, the next two years will be
Co-Founder and VP of IT
pivotal in leveraging these advancements.
Consultis
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1.The usage time for mini programs had doubled compared to the
previous year, becoming one of China's leading transaction
platforms with trillions of yuan in transaction volume.
More than
More than 1 million
1.133 billion
40 million transactions
in 2023
stores daily
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EXPERT BITES
Q: WHAT STRATEGIES DO CHINESE COMPANIES EMPLOY ON SOCIAL
MEDIA PLATFORMS FOR SOCIAL COMMERCE, AND WHAT INSIGHTS
CAN FOREIGN BUSINESSES GAIN FROM THEM?
The Chinese fragrance market has seen remarkable growth, with homegrown
brand To Summer making a signi cant impact since its inception in 2018. Unique
for its success in a domain dominated by foreign luxury brands, To Summer's
strategy hinged on three factors. It positioned itself as an upscale,
thoroughly Chinese brand, incorporating oriental elements into its
branding and product design.
VLADIMIR DJUROVIC
Finally, the brand boldly adopted an online-only sales strategy, using its DTC
platform to drive consumer engagement and sales rather than just product CEO of Labbrand Group
promotion. By 2019, To Summer added retail experience stores as a
supplementary part of its DTC approach.
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EXPERT BITES
Q: HOW IS SOCIAL COMMERCE IN CHINA (WECHAT, DOUYIN, RED)
FARING COMPARED TO TRADITIONAL COMMERCE, AND WHY?
Content and social commerce apps are diversifying China's online retail
landscape. I think these platforms are offering different shopping moods
compared to traditional shopping apps, making the process more entertaining
and impulsive, suitable for certain types of products and one-off purchases.
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EXPERT BITES
Q: HOW CAN AI AND DATA ENHANCE SOCIAL COMMERCE, SUCH AS
DECISION-MAKING AND TASK AUTOMATION FOR EFFICIENCY?
For brands to run their own livestreaming channels it takes a vast amount of time
and energy, placing a lot of power in the hands of the employees running the
stream. With the advancement of AI livestreaming, this new technology will allow RYAN MOLLOY
for brands to run 24/7 character streams where they own the IP.
CEO of RedFern Digital
3 DOUYIN
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Projected to
have 835 60% of users
million in China
users
by 2025
Popular short video platform
Douyin has become a go-to
Douyin in China Access Douyin
platform for brands looking to (Statista) via the mobile Internet
drive direct sales through (Statista)
livestream feature, which,
according to Douyin, have 25 brand
conversion rates of 10-20%. livestreams Douyin prices
made are 10-20%
a combined lower than
total of US$ 15.5 Tmall agship
million in sales stores
Douyin Livestreaming
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4 XIAOHONGSHU (RED)
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200 43
50% 72%
million million
Monthly active users Content creators Of users are from Tier 1 Of users are in the
and Tier 2 cities Post-90s age group
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37.47%
Food
Gen Z
Workers Seekers
Fashion
9.11%
Maternity and
4.80%
Infant Supplies
Trend-setters
Singletons Moms
Accessories
2.93%
• Xiaohongshu's user base is mostly young, a uent women in urban areas, with
increasing usage in low-tier cities.
• Choosing the right KOL based on their content and audience is crucial for
e ective collaboration.
EXPERT BITES
Q: HOW HAVE CHINESE COMPANIES APPROACHED CUSTOMER
SERVICE AND USER EXPERIENCE IN SOCIAL COMMERCE?
Chinese companies are continually closing the gap with consumers through
social e-commerce, making C2M (Customer-to-Manufacturer) exible
production increasingly a reality. This will give Chinese companies a
competitive advantage over foreign counterparts in the digital economy
era.
YUANPU HUANG
Founder of EqualOcean
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EXPERT BITES
Q: WHAT CAN FOREIGN FIRMS LEARN FROM CHINESE COMPANIES'
APPROACH TO CUSTOMER SERVICE AND USER EXPERIENCE IN
SOCIAL COMMERCE?
Douyin has recently announced a new system that will evaluate customer service
speed and ef ciency, product quality, and delivery ef ciency factors, with different
weights assigned to each sector. Moreover, customers' complaints and
dispute resolution response e ciency will also play a key factor in
determining a brand's customer service score.
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EXPERT BITES
One thing to be looking at right now would be the adoption of AI into the marketing and sales
process. In a bid to lower costs and improve speed to market we are seeing more and more
brands and retailers leveraging AI for different parts of the retail experience including
modelling of products/clothing, livestreaming, and customer service. China will likely
be the global trend setter in developing this technology so this will be an interesting space to
watch.
BENJAMIN CAVENDER
Managing Director and Head of
Strategy of China Market
Research Group
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SOCIAL COMMERCE
TRENDS IN CHINA
WHAT’S INFLUENCING SOCIAL COMMERCE NOW?
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1 GENERATIVE AI
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• Human-machine dialogue
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EXPERT BITES
Q: WHAT DISTINGUISHES CHINA'S SOCIAL COMMERCE FEATURES
FROM THE REST OF THE WORLD?
It's funny if you think that we spent the last 10 years building and optimising our
marketplace presence [Tmall], compared to private domains, newsletters, and
SEO in the West, but suddenly realise that if you haven’t engaged in the Chinese
social commerce ecosystem in the past years, where private traf c/domain is an
important part, you are missing out.
In the past years, private traf c got much attention from brands, which focuses
on customer retention and customer lifetime value CLV. WeChat and WeCom MICHAEL SIMONET
are leading the way and bound with a strong CRM a really interesting tool
Founder of Alea E-Commerce
to deliver a service as a competitive advantage.
Co.Ltd.
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EXPERT BITES
Q: WHICH PATTERNS ARE EMERGING WITHIN CHINA'S PRIVATE
MARKETING, SALES, AND SERVICE DOMAINS?
I think there are four trends happening. First, in the eld of livestreaming (a form of online
marketing and sales), an increasing number of brand owners/ambassadors are
engaging in live selling by themselves (instead of using KOLs) due to issues like KOLs’
inappropriate brand marketing. Second, brands that possess attributes related to health
and outdoor have strong sales opportunities. Third, livestreaming will not only focus
on recommending purchases but also provide content, such as a down jacket brand live
streaming from Mount Everest or an English teacher from New Oriental Education telling SUNNY ZHENG
history or travel stories. Fourth, personalisation matters.
EXPERT BITES
Q: HOW IS CHINA'S 2023 CONSUMERISM? ARE EXPECTATIONS FOR
H2 2023 AND H1 2024 POSITIVE OR NEGATIVE?
Shopping malls and restaurants are full of people, everyone is buying something. But
don’t be distracted by this visual illusion. If we check the numbers of the latest 618
shopping festival, which is typically a barometer of consumption in China, we can see
that Chinese consumer con dence still remains weak. This happening despite the
biggest discounts ever and billions of subsidies offered by Alibaba, JD, and Pinduoduo.
So as we see consumption is still recovering after the pandemic, and it probably will
take another 6 months. But the positive trend is here, sales are growing month by
ARTEM ZHDANOV
month and I’m very optimistic about 2024. Founder and CEO of EKD Group
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2 VIRTUAL INFLUENCERS
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According to Statista:
Source: Angelababy’s Digital Twin Angela 3.0, Viktor&Rolf. Virtual Avatar Ling & Angie, Lancôme
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Interactive animation featuring digital Virtual try-ons and virtual images of the
What can international brands in uencers is a powerful way to give nal results in uence purchase decisions
learn from Lancôme's virtual recommendations to younger audiences by helping the audience understand the
celebrity campaign? effects of Lancôme's products
EXPERT BITES
Q: WHAT CHALLENGES MIGHT FOREIGN FIRMS ENCOUNTER IN
CHINA'S SOCIAL COMMERCE MARKET, AND HOW CAN THEY BE
ADDRESSED?
Foreign companies entering the Chinese social commerce market face
challenges including cultural di erences, a complex regulatory
environment, sti competition, and a unique digital landscape. Cultural
differences may lead to ineffective marketing, regulatory changes can introduce
risk, established local competition is tough to beat, and technological adaptations
are necessary due to platforms like WeChat.
To overcome these, companies should invest in understanding local culture and RAND HAN
consumer behaviour, potentially hiring local experts. Adapting digital strategies to
Founder of Resonance
t within China's unique online environment, building relationships with
government bodies to navigate regulations, and partnering with local companies
can help.
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EXPERT BITES
Q: WHAT SOCIAL COMMERCE TRENDS DO YOU SEE IN CHINA TODAY
THAT WILL BOOM IN 2023/24?
The recent 6.18 shopping festival highlighted the signi cance of content in China,
where short videos, in uencers, and livestreaming gained traction on Alibaba's
marketplaces. Generative AI tech is also being explored to reduce content
costs and drive further sales.
Apple product experts conducted their rst livestream during 618, offering
lmmaking tips and demonstrating the use of the Apple Watch for workouts. The
livestream garnered impressive engagement with 1.3 million viewers and
300,000 likes within just one hour. Content played a pivotal role for many MEI CHEN
retailers during the 6.18 event. General Manager Lifestyle &
Luxury of International Business,
Alibaba Group
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EXPERT BITES
Q: WHAT KEY TRENDS WILL SHAPE CHINA'S SOCIAL COMMERCE
FUTURE, AND HOW CAN FOREIGN COMPANIES ADAPT?
One key trend clearly continues to be video live streaming as a part of a wider social
commerce expansion and Douyin has established itself as they dominant stand-alone
player in this vertical. It is therefore a must for almost any brand from every conceivable
category to be present on the platform, be it purely for branding and content marketing or
actually using Douyin as a sales channel.
The biggest challenge for the latter is that the platform is highly discount driven and secondly
customer loyalty and repurchase rate is comparatively low. This is why it is important to use GEORGE GODULA
Douyin as a customer acquisition channel, but at the same time implement a wider strategy of
Chairman of Web2Asia
a brand-owned CRM & loyalty platform.
3 DATA OWNERSHIP
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EXPERT BITES
Q: HOW CAN AI AND DATA ENHANCE SOCIAL COMMERCE,
INCLUDING DECISION-MAKING, PERSONALISATION, AND TASK
AUTOMATION FOR EFFICIENCY?
EXPERT BITES
Q: WHICH TOP CHINESE SOCIAL COMMERCE BRANDS EXCEL, AND
WHAT ARE THEIR STRENGTHS AND WEAKNESSES?
Perfect Diary effectively utilise WeChat groups and mini-programs, which
contribute to approximately 25% of their sales. Perfect Diary has successfully
employed social media campaigns, collaborating with KOLs and being an early
adopter of RED to enhance brand awareness.
Social commerce alone is insu cient for long-term success. Brands need MOONIE ZHU
to focus on developing a captivating brand story and continuously innovating their
Managing Director of eTOC
products to keep customers engaged and loyal. Social commerce should
GmbH
complement these core elements rather than being relied upon as a standalone
solution.
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EXPERT BITES
Q: WHAT SOCIAL COMMERCE TRENDS IN CHINA DO YOU FORESEE
GAINING SIGNIFICANT TRACTION IN 2023?
Social media is really a utility. Messenger and newsfeeds don’t change that much.
It’s why we see 1-2 dominant players per region. E-commerce is the area
that changes more and gives greater opportunity for differentiation.
We see lots of creativity here and I expect that to continue. More and more we
should see a shift from offering everything in one giant store (Amazon, Taobao), to
curated and differentiated news feeds (Pinduoduo and TikTok Shop).
JEFFREY TOWSON
Founder of TechMoat Consulting
4 METAVERSE SHOPPING
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EXPERT BITES
Q: WHAT CAN FOREIGN FIRMS LEARN FROM CHINESE COMPANIES'
CROSS-BORDER SOCIAL COMMERCE APPROACHES FOR GLOBAL
EXPANSION?
“Everything towards overseas” is MINISO’s new global strategy in 2023, the brand is rapidly
expanding its presence outside China.
Big part of the success come from a focus on partnership with global IPs. Through its
partnerships with over 80 popular global IPs, MINISO has successfully developed
numerous licensed products, established an emotional connection with its
international consumers, and engaged with young people all over the world.
ARNOLD MA
The power of collaboration and focus on Social Media virality is still king in
marketing. And these are the fundamental strategies that will work whether it’s Western Founder and CEO of Qumin
brands going into China, or Chinese brands expanding into western markets.
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EXPERT BITES
Q: IS CHINA'S SOCIAL COMMERCE BUZZ JUSTIFIED? HOW DO
SOCIAL PLATFORMS COMPARE TO E-COMMERCE, AND WHAT ARE
THE TRENDS?
Widespread mobile internet usage, dominant social media platforms like WeChat
and Douyin, a mature e-commerce market, in uencer marketing, KOL culture,
and a willingness to adopt new technologies have all contributed to the rise of
social commerce in China. This enables consumers to discover and purchase
products while being entertained on-the-go.
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EXPERT BITES
Q: HOW DO CHINESE FIRMS TACKLE PRIVACY AND SECURITY IN
SOCIAL COMMERCE, AND WHAT CAN FOREIGN COMPANIES LEARN?
China has the world's most successful, largest and safest two payment
intermediary platforms - WeChat Pay and AliPay. These two largest and most
successful payment platforms have successfully managed nearly 200 million
daily order transactions and information security. After more than 10 years
of development and veri cation, they are extremely secure and reliable, and so far
there have been no privacy breaches or payment security issues.
Therefore, 99.99% of Chinese people use these two payment platforms for FOLKE ENGHOLM
transactions, while other international transaction payment platforms, such as
credit card payment, PayPal payment, etc., are not widely accepted payment Ceo Of Viral Access
methods in the Chinese market.
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SOCIAL COMMERCE
STRATEGIES IN CHINA
CHECKLISTS AND BEST PRACTICES
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CREATOR’S BITE
CREATOR’S BITE
Q: HOW ARE CHINESE SOCIAL COMMERCE FIRMS ADAPTING TO GLOBAL
MARKETS AND CAPITALISING ON THE GROWING LIVE COMMERCE
TREND?
Some foreign social commerce companies are trying to get China's live commerce trend to gain
traction overseas. As a result, Chinese rms like SuperOrdinary and Kuaishou are expanding their
reach. SuperOrdinary, a social commerce company, links brands and in uencers, targeting the
US market with its creator-focused platforms. Kuaishou, in competition with market leader TikTok,
is extending its presence to Brazil, adopting localization strategies for its video-sharing app. As the
demand for innovative social commerce experiences grows, many startups are emerging
worldwide and seeking funding to boost their growth and scale their operations in this
dynamic, expanding market.
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Choose the right Optimize your Use social Monitor and analyze
social media content commerce features your performance
platforms
China has lots of social Chinese consumers Social commerce features Keep track of your
media platforms, each prefer engaging, visually like KOL marketing, group performance metrics and
with its own unique appealing content. buying, and livestreaming adjust your strategy
features and audience. Ensure your content is are popular in China. accordingly. Use data
It's essential to choose optimized for the platform Utilize these features to analytics to optimize your
the platform(s) that align you're using and drive sales and campaigns and improve
with your brand, your resonates with your engagement. your ROI.
target audience and target audience.
your marketing goals.
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F&B PLATFORMS
1.1 DOUYIN IS THE BEST CHOICE FOR F&B BRANDS
Source: Digitaling
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Healthy
Good Packaging Cost E ective
Philosophy
Product
Features 300 Billion Views 8.47 Million Views 36.45%
Sugar-free, low sugar and low
fat F&B products are highly In March, 2023, Holiland and 36.45% of consumers said
The three most important popular. On Douyin, topics with Barbie co-branded desserts. they would increase their
things consumers are After 3 days, related topics on spending during shopping
the hashtag #Fat loss snacks (减
Douyin got more than
festivals on social
looking for are healthy 脂零食) were viewed more than 8.47 million plays. commerce platforms.
products, good-looking 300 billion times.
packaging and good
value for money.
Content Features
Platforms:
Product + Content:
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EXPERT BITES
Q: WHAT ARE CHINA'S TOP SOCIAL COMMERCE CONSUMER
JOURNEYS AND TRENDS IN 2023/24?
Fuelled by the increasing trust and democratisation of KOLs and KOCs, the
'Shop from Content' and 'Shop from Livestream' pathways continue to be
the most prominent consumer journeys in China's social commerce
landscape.
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EXPERT BITES
Q: WHAT CAN FOREIGN FIRMS LEARN FROM CHINESE COMPANIES'
APPROACH TO SOCIAL COMMERCE CUSTOMER SERVICE AND USER
EXPERIENCE?
The introduction of private groups a few years ago was a signi cant move to
leverage and push O2O sales. But as the practice tends to become mainstream,
consumers now tend to enter these groups mostly/only lured by
immediate bene ts (samples, lottery) and then mute or stay low in these
groups.
Some Chinese brands -like To Summer- are now operating in a more subtle way,
inviting 体验官 “product experience of cers” to add the brand by themselves, DAO NGUYEN
rather than massively and in-distinctively trying to pull in consumers. I believe it
Founder of Essenzia By Dao
creates stronger and more durable kind of connections, going much beyond
the mere promotional sales push. This could inspire Western brands willing to
build communities rather than groups.
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EXPERT BITES
Q: WHAT ARE KEY DIFFERENCES IN CHINA'S SOCIAL COMMERCE,
AND HOW CAN FOREIGN FIRMS ADAPT?
2. Guanxi culture still permeates Chinese shopper behaviour - “it’s not what you
know, but who”, which is why in uencers, and micro in uencers are RONEN SIMHI
exceptionally effective in social commerce spaces at building the feeling of a
Vice President Sales & Strategy
personal connection, and upping valuable trust points, when building a brand Of Outform
here.
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Content Features
Platforms:
Product + Content:
Source: Weiboyi
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EXPERT BITES
Q: IS LUXURY SUITABLE FOR SOCIAL COMMERCE, AND ARE THERE
NOTABLE EXAMPLES IN THE PAST YEAR?
Keep in mind that a uent consumers are also on social commerce. The key is to
strike a balance between maintaining the brand's exclusivity and desirability while adapting
MELLISA LIM
to the digital landscape and consumer preferences.
Omni channel Marketing Director
for Vacheron Constantin
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EXPERT BITES
Q: WHAT CHALLENGES MIGHT FOREIGN COMPANIES FACE IN
CHINA'S SOCIAL COMMERCE MARKET, AND HOW CAN THEY
OVERCOME THEM?
Pressured by brand launch timeline, often times new brand might work with a TP
(Tmall partner) to get launched rst before fully de ning the brand platform or
brand identity (including localised messaging, story, tagline, communication
guidelines etc), and TP is mostly sales driven in brand objectives. This might
damage brand image in the long term with un-localised brand elements not
resonating with local consumers, or messy assets that's not true to the brand
essence. VLADIMIR DJUROVIC
CEO of Labbrand Group
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EXPERT BITES
Q: WHAT TRENDS DO YOU SEE IN PRIVATE DOMAINS FOR
MARKETING, SALES, AND SERVICE IN CHINA?
I believe the emergence of value-based community & experiential marketing
is reshaping the concept of "private domains". Driven by the growing
personal interests and awareness of different values & lifestyle (instead of
discounting).
Value-based communities are mentally connected and highly engaged, but not
yet centralised at mass scale. This shift goes beyond traditional platform groups,
and traf c-driven approaches.
YUWAN HU
Experiential marketing has to be immersive, localised and up-to-date, to
let users feel comfortable, easier and happier to connect and engage VP at Daxue Consulting
with. This trend is evident through various activities and topics such as IP
collaborations, interests-based groups & activities.
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APPAREL
1
APPAREL PLATFORMS
3.1 RED IS THE MOST POPULAR OPTION FOR APPAREL BRANDS
Source: Feigua
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Source: TOPKLOUT
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Content Features
Learn About
Brand Trends
Source: Red
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Platforms:
Product + Content:
Source: Newrank
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EXPERT BITES
Q: WHAT KEY TRENDS AND INNOVATIONS WILL SHAPE CHINA'S
SOCIAL COMMERCE FUTURE, AND HOW CAN FOREIGN COMPANIES
ADAPT?
Overall, we are seeing a merger of commerce, content, and social media.
These worlds are colliding and creating a better consumer experience.
So the e-commerce leaders are all adding entertainment and content. That’s
Taobao Live. The entertainment and attention leaders are all moving into
commerce. That’s TikTok and Kuaishou. And the social media companies are
moving into both commerce and content from a position of strength.
That’s Tencent Mini Programs. JEFFREY TOWSON
Founder of TechMoat Consulting
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EXPERT BITES
Q: HOW DO CHINESE COMPANIES EMPLOY BIG DATA AND AI IN
SOCIAL COMMERCE, AND WHAT BEST PRACTICES CAN FOREIGN
FIRMS LEARN TO UTILISE THESE TECHNOLOGIES?
Chinese companies like Alibaba and JD.com have pioneered the integration of big
data and AI to fuel social commerce. They've personalised shopping
experiences by analysing user behaviour and preferences, resulting in
targeted product recommendations. AI-driven chatbots provide ef cient
customer service, while platforms like Pinduoduo have initiated social shopping
experiences by offering group buying options.
SHARON GAI
Foreign companies can adopt these strategies by investing in big data and AI
capabilities, promoting social interactions around shopping, and enhancing Director of Global Key Accounts,
customer service with AI. Alibaba Group
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EXPERT BITES
Before we cover the social and technology driven factors that make social
commerce massive in China, we have to start with the primary economic driver.
Consumer acquisition costs have skyrocketed. The amount of expected GMV
that brand and retailers have to spend on marketplace, social media and digital
marketing to drive traf c and conversions has become unsustainable and
unpro table for many merchants. Social commerce has emerged not only as
an entertaining, personal, and frictionless set of channels, but a cost MICHAEL ZAKKOUR
e ective one as well. Founder of 5 New Digital and
China BrightStar
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HOUSEHOLD PRODUCT
1
Source: Feigua
Source: Guoji
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Content Features
Scenario-based
Marketing
Source: Guoji
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EXPERT BITES
Q: HOW DOES CHINA'S SOCIAL COMMERCE COMPARE TO
TRADITIONAL E-COMMERCE, AND WHO EXCELS IN SPECIFIC
CATEGORIES AND WHY?
In a strict de nition the consensus is that currently approx. 20% of all e-commerce sales are
generated through social live commerce channels, meaning via video streaming. This matches
data for this year’s 2023 618 campaign, for which third-party monitoring providers reported
that 184.4 billion RMB, or 23%, out of a total volume of 798.7 billion RMB GMV were
generated by livestreaming e-commerce platforms, with Douyin being by far the largest
channel. Likewise, Alibaba reported that the daily average number of people watching short
videos on the consumer-to-consumer marketplace Taobao during the 6.18 festival surged GEORGE GODULA
113% from last year.
Chairman of Web2Asia
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EXPERT BITES
Q: WHAT ARE THE MAJOR OPPORTUNITIES AND THREATS IN SOCIAL
COMMERCE SPACE FOR FMCG BRANDS IN 2023/24 IN CHINA?
In the post-traf c era, brands that are unable to cater to the extreme price-
sensitive audience or create and convey great values tapping into the new
middle-class generations will vanish in the next ve to ten years.
The post-traf c era refers to the time when tra c is no longer the primary
source of revenue for businesses. Brands that are unable to cater to the
extreme price-sensitive audience may lose out on potential customers who are
looking for cheaper alternatives. Similarly, brands that are unable to create and RICCA HUANG
convey great values tapping into the new middle-class generations may lose out
China E-commerce Specialist
on potential customers who are looking for brands that align with their values and
and Observer
beliefs.
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EXPERT BITES
Q: WHAT ARE KEY SUCCESS FACTORS FOR CHINESE SOCIAL
COMMERCE, AND HOW CAN FOREIGN FIRMS APPLY THEM IN THEIR
MARKETS?
Chinese consumers typically want a relationship with a brand that is deeper than
that sought by Western customers. Many Western consumers are only
seeking a transaction; they want the product. Chinese consumers are seeking
a conversation.
They want to engage with the brand, to understand the nuances of the
product, and to explore questions in a controlled setting. Social media
facilitates this journey and also allows brands to blend in examples of success,
FRANK LAVIN
celebrity endorsements, and other brand strengths into the conversation. Chairman & CEO of Export Now
3C PRODUCT
1
3C PLATFORMS
5.1 INVESTMENT IN WEIBO AND WECHAT IS SLOWING WHILE RED AND DOUYIN SPEED UP
Source: Weiboyi
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3C PRODUCT FEATURE
5.2 DOMESTIC 3C BRANDS ARE NOW MORE ADVANCED WITH ADDITIONAL FUNCTIONS
Source: iResearch
3C CONTENT FEATURES
5.3 CONVENTIONAL MARKETING MIXED WITH SOFT PROMOTION AND PRODUCT PLACEMENT
Content Features
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EXPERT BITES
Q: WHAT CAN FOREIGN FIRMS LEARN FROM CHINESE COMPANIES'
CROSS-BORDER SOCIAL COMMERCE STRATEGIES FOR GLOBAL
EXPANSION?
China has been open to cross-border platforms and social commerce for some time
now, and brands of all shapes and sizes have taken this chance to approach
the Chinese market without the strict need for a physical presence - or
stockpoint - in the country.
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EXPERT BITES
Q: WHAT CAN FOREIGN TECH LEARN FROM CHINA'S CUSTOMER-
CENTRIC DIGITAL JOURNEY AND SOCIAL COMMERCE, AND WHAT
CAN CHINA LEARN FROM THE GLOBAL LANDSCAPE?
Tech/digital products in China focus on customer needs but also dare to lead the
customers to a vision that the companies believe in. They solve people's
problems and also deliver more. There is a belief that customers can and are
willing to learn and adapt to new ideas, which leads to innovations in the tech
industry. Foreign rms could adopt this attitude - having more faith in
customers' ability to adapt while helping them adjust.
Digital journeys in China could use better UX design. This is something I think TISHA WANG
companies in China should learn from others. Tech rms in China need to be Co-founder & Director of Half A
better at ne-tuning their UX to better deliver products and services. World
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EXPERT BITES
Q: WHICH CHALLENGES DO FOREIGN FIRMS FACE IN CHINA'S
SOCIAL COMMERCE MARKET, AND HOW CAN THEY OVERCOME
THEM?
Firstly, foreign companies need to understand the numerous and diverse social
commerce platforms that incorporate social video, livestreaming, and
community purchasing.
Secondly, social commerce relies on being social to drive sales. Foreign brands
must create compelling content that attracts consumer interest.
Thirdly, social commerce requires strategic content planning and tactics to deliver THOMAS NIXON
on the brand's story while satisfying consumers' desire for newness. It's
Co-founder of Qumin
important to adapt to the high frequency of Chinese shopping festivals.
KEY TAKEAWAYS
WHAT CAN WE LEARN FROM
SOCIAL COMMERCE IN CHINA?
1
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TO ENGAGE WITH
CUSTOMERS AND
DRIVE SALES,
MERGING BRANDS CAN
MARKETING LEVERAGE SOCIAL
MEDIA PLATFORMS
AND TO SELL PRODUCTS
TRANSACTIONS DIRECTLY.
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2
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TRACK CUSTOMER
BEHAVIORS ACROSS
OFFER ALL CHANNELS AND
SEGMENT USERS
PERSONALIZATION BASED ON THEIR
PREFERENCES.
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2. OFFER PERSONALIZATION
ACTIONABLE TIPS
STARBUCKS X MBIT
CUSTOMIZED LABEL
GAME
For crafting highly personalized experiences, it is advised to monitor
customer actions across all touchpoints and categorize users
according to their preferences. This facilitates the development
of customized pathways and the automation of bespoke experiences.
3
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TO BUILD
COMPREHENSIVE
PROFILES OF YOUR
CUSTOMERS, IT’S
UNIFY YOUR
BEST TO UNIFY THE
DATA DATA OF YOUR SOCIAL
FOLLOWERS AND
YOUR SALES
CHANNEL
CUSTOMERS.
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REPORT
CONTRIBUTORS
CONNECT FOR MORE INSIGHTS
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MELLISA LIM
JEFFREY TOWSON RICCA HUANG
VLADIMIR DJUROVIC YUWAN HU JOSH GARDNER GEORGE GODULA OMNI-CHANNEL MARKETING
FOUNDER OF
CHINA E-COMMERCE
CEO OF LABBRAND GROUP VP OF DAXUE CONSULTING CEO OF KUNG FU DATA CHAIRMAN OF WEB2ASIA DIRECTOR FOR VACHERON
RAY VERAS QIN CHEN AURELIEN RIGART SANDRINE ZERBIB RYAN MOLLOY YUANPU HUANC KATHRYN READ
CO-FOUNDER & CEO OF
MANAGING EDITOR OF
CO-FOUNDER AND VP
FOUNDER & CHAIRWOMAN OF
CEO OF REDFERN DIGITAL
FOUNDER OF EQUALOCEAN INTERNATIONAL SALES AND
P3DAREN
TECHNODE
OF IT CONSULTIS
FULL JET & PRESIDENT OF
MARKETING CONSULTANT
BAOZUN BRAND
MANAGEMENT
ARTEM ZHDANOV SHARON GAI RONEN SIMHI MEI CHEN FOLKE ENCHOLM SARAH YAM RAND HAN
FOUNDER AND CEO OF EKD DIRECTOR OF GLOBAL KEY
VICE PRESIDENT
FOUNDER OF GENERAL
CEO OF VIRAL ACCESS CO-FOUNDER OF RED FOUNDER OF RESONANCE
CROUP ACCOUNTS OF ALIBABA
SALES & STRATEGY
MANAGER LIFESTYLE &
DIGITAL CHINA
ARNOLD MA OLIVIA PLOTNICK FRANK LAVIN MOONIE ZHU MICHAEL ZAKKOUR ELISA HARCA MICHAEL SIMONET
FOUNDER AND CEO OF
FOUNDER OF WAI SOCIAL
CHAIRMAN & CEO OF EXPORT
MANAGING DIRECTOR OF
FOUNDER OF 5 NEW DIGITAL
CO-FOUNDER AND CEO ASIA
FOUNDER OF AIEA E-
QUMIN
NOW
ETOC GMBH
AND CHINA BRIGHTSTAR
OF RED ANT ASIA
COMMERCE CO.LTD.
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