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Social Commerce Report

This document provides an overview of social commerce trends in China and strategies for businesses. It discusses key consumer groups for social commerce like Gen Z and women. It also explores technologies powering social commerce and platforms popular in China like WeChat, Douyin and Xiaohongshu. The document aims to help businesses understand social commerce in China and identify best practices for different industries to build their presence and strategies.

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0% found this document useful (0 votes)
479 views246 pages

Social Commerce Report

This document provides an overview of social commerce trends in China and strategies for businesses. It discusses key consumer groups for social commerce like Gen Z and women. It also explores technologies powering social commerce and platforms popular in China like WeChat, Douyin and Xiaohongshu. The document aims to help businesses understand social commerce in China and identify best practices for different industries to build their presence and strategies.

Uploaded by

Bim Bim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 246

2023 SOCIAL COMMERCE:

Checked

HOW TO BUILD THE


FUTURE OF RETAIL Ashley’s comment

how will this look?

LESSONS FOR AND FROM CHINA


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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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ALARICE & CHOZAN SOLUTIONS

MARKETING RESEARCH AND STRATEGY CORPORATE TRAINING CHINA TRENDWATCHING


Our China marketing research and strategy team gives you a We can increase your expertise about the Chinese We specialize in illuminating trends in China.
detailed framework that will allow you to start and grow your market, Chinese consumers and Chinese social We dig deep to see what’s happening, the
business in mainland China. media with tailor-made masterclasses that put your obvious and the subtle, and through training,
team at the forefront. We run courses around the consulting, reports and regular newsletter
world and we can also create custom corporate updates, help brands turn these trends into
SOCIAL MEDIA MARKETING training programs for your team. meaningful business opportunities
We help you to localize messages, strengthen your brand
image and reach out to target audiences through Chinese
social media. KEYNOTE SPEECHES CONSULTING CALLS
Our founder, Ashley, is a well-known speaker and The quickest way to get your speci c, urgent
INFLUENCER MARKETING AND CAMPAIGNS can deliver keynotes full of energy, insight and China marketing questions answered. Speak
inspiration that will transform your event, motivate with Ashley or her team if you’re under time
We help you to establish goal-speci c social marketing
you and help you achieve your goals. pressure and need to get on the right track fast.
campaigns and fruitful collaborations with Chinese KOLs and
in uencers.

HAVE QUESTIONS? CONTACT


ALARICE'S TEAM FOR
ASSISTANCE. SCAN HERE.
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CHATLABS SOLUTIONS

ChatLabs won the prestigious 2023 LVMH Innovation Award for Data & AI!

SOCIAL EXPERIENCES PLATFORM (SXP) SOCIAL MARKETING


ChatLabs’ generative journeys, takes in the context of Attract, engage, segment, target, convert, and build brand
Social Media and the behavior of the customer and then loyalty through 360° view of customer pro les that
uses the power of AI to allow brands to tell their stories powers automated hyper-personalized journeys on any major CHATLABS CHATLABS
and share their values in a hyper-personalized manner. social channel. WEBSITE WECHAT
Brands can now direct their traf c, to an elevated
contextual consumer experience, that engages them in a
creative and more meaningful manner and puts them on
a tailored path towards a particular brand goal.

SOCIAL SERVICE DATAFLOW


Real-time China 360° data across marketing, commerce, sales
Use your Salesforce data in combination with WeCom to
and service, captures user consent at every touch point and
provide ef cient and personalized customer service that fosters
ensures systems to adhere to the provided consent using CHATLABS CHATLABS
brand trust and loyalty. LINKEDIN NEWSLETTER
privacy-based access controller.

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.

LOOKING FOR AN INSIGHTFUL AND


ENERGETIC SPEAKER FOR YOUR NEXT
LEADERSHIP EVENT OR CONFERENCE?
CONTACT US TO BOOK ASHLEY AS A KEYNOTE
SPEAKER.
Follow my LinkedIn for daily China insights
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A DEFINITION OF SOCIAL COMMERCE


SOCIAL COMMERCE IS E-COMMERCE DONE THROUGH SOCIAL MEDIA PLATFORMS
CONCERTS SHORT DRAMAS

Social commerce integrates social interactions and


e-commerce, creating a seamless shopping and social
experience.

With personalized content recommendations, user-generated


content, and in uencer endorsements, social commerce
platforms facilitate purchases and emotional connections
between customers.

Jay Chou’s concert Crazy Xiǎo Yáng’s (@疯狂⼩杨哥)


on Kuaishou on
short comedy drama
Nov. 19th, 2022
99.99 million Douyin followers
Images: Kuaishou@周同学, Douyin @疯狂⼩杨哥 got 1.05 billion likes
with 870 million likes

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THE FUTURE OF SHOPPING IS ALREADY HAPPENING


TRADITIONAL AND SOCIAL COMMERCE INTEGRATE TO DRIVE CONVERSIONS

Traditional
e-commerce Social commerce
DOUYIN KWAISHOU DIANTAO

83% /Live commerce


Traditional e-commerce channels remain 2021 14% 14%
ANNUAL
dominant with 72% market share in H1 GMV TAOBAO New retail (DTC)
2022, but social commerce is rapidly 83% 2%
TMALL JD PDD
gaining popularity, growing from 14% in Community group buying
2021 to 21% in H1 2022. 1%

New sales channels are changing the way


businesses approach e-commerce, and Social commerce
DOUYIN KWAISHOU DIANTAO
they're adapting their strategies to stay /Live commerce
Traditional
competitive. 21%
e-commerce 21%
72%
H1 2022
GMV New retail (DTC)
TAOBAO 4%
PDD
72% TMALL JD Community group buying
3%
Source: Syntun

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COMPARING E-COMMERCE AND SOCIAL COMMERCE


DIFFERENT GROWTH LOGIC

E-COMMERCE AND SOCIAL COMMERCE:


KEY PLAYERS AND GROWTH LOGIC

Funnel growth logic is used by traditional e-


commerce platforms such as Taobao, Tmall, and JD Traditional e-commerce Social commerce
to attract new tra c and guide users through the
purchasing process.
TAOBAO TMALL JD DOUYIN KUAISHOU WECHAT RED

Social commerce platforms like Douyin, Kuaishou, Key players


Wechat, and Red rely on snowball growth logic,
where a product or service gains popularity through
social sharing and word-of-mouth recommendations.

Growth logic Funnel logic Snowball logic

Source: Wushuangyunying
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COMPARING E-COMMERCE AND SOCIAL COMMERCE


THE TRADITIONAL E-COMMERCE CUSTOMER JOURNEY
TAOBAO

The path for traditional TRADITIONAL E-COMMERCE:


e-commerce platforms like YOU KNOW WHAT YOU WANT
Taobao starts with consumers
searching for speci c products they
want to purchase. The journey
begins at the search stage. THE CONSUMER JOURNEY
STARTS AT THE SEARCH STAGE

Source: Wushuangyunying Images: Screenshots from Taobao


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COMPARING E-COMMERCE AND SOCIAL COMMERCE


THE SOCIAL COMMERCE CUSTOMER JOURNEY
DOUYIN

Consumers who use social SOCIAL COMMERCE:


commerce, like Douyin, receive
customized product recommendations
IT KNOWS WHAT YOU WANT
based on their interests and behaviour.
The journey starts from the content
recommendation stage.
THE CONSUMER JOURNEY
Engaging content is a key factor for STARTS WITH CONTENT
success in social commerce. RECOMMENDATIONS

1. RECOMMENDS 2. LINKS TO RELATED


CONTENT YOU’RE ITEMS BASED ON POST
INTERESTED IN HASHTAGS
Images: TAG Heuer's of cial Douyin account , Douyin @梦涵⼉
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REVAMPING YOUR CHINA

THE BASICS OF SOCIAL COMMERCE MARKETING STRATEGY? GET IN


TOUCH WITH ALARICE TO HELP
YOU SUCCEED. SCAN HERE.
INSIGHTS

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.

Group buying on platforms like Pinduoduo offers bulk discounts, creating a


community feel. In uencers signi cantly in uence consumer choices, and
activities are predominantly mobile-based. This model contrasts with Western RAND HAN
social commerce, more linked to platforms like Facebook and Instagram,
and less integrated with messaging and live-streaming. Founder of Resonance
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2
1
THE KEY FEATURES OF
SOCIAL COMMERCE
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SOCIAL MEDIA PROVIDES EXCELLENT CONTEXT


QUALITY CONTENT REACHES TARGET AUDIENCES WHEN THEY’RE READY TO BUY

#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.

Businesses need content that showcases


their unique selling points, encourages
social sharing, connects emotionally and
demonstrates scenarios that resonate with
consumers.
雅萌 Ya-Man facial device X @胡兵 晨光 M&G Marker pen X @丫丫⼩卖铺
3.5 million followers 1.08 million followers
This ad targets the senses and the Nostalgia and emotion are at the core
product’s user experience. of this ad.

*Douyin views were checked on March 27, 2023 Videos: Douyin @胡兵,@丫丫⼩卖铺

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INTERACTIVE FORMATS THRIVE ON SOCIAL MEDIA


INTERACTIVE, METAVERSE AND WEB3 MARKETING DO WELL ON SOCIAL COMMERCE SITES

DOUYIN X BURBERRY DOUYIN X BURBERRY BURBERRY’S BURBERRY’S


METAVERSE MARKETING AVATARS DOUYIN ACCOUNT OFFICIAL WEBSITE

Social media's interactive nature is a critical


driver for social commerce.

Brands that smartly leverage social media's


highly visual, participatory qualities and
create engaging content make their mark on
social commerce platforms.

For example, Douyin and Burberry’s #这是仔仔的


metaverse marketing campaign, which 时尚天花板吧
incorporated Douyin’s Zaizai feature that 150 million
views
allows users to create avatars, got
150 million views.
Burberry created 18 items of Users could create their A link to the of cial From Douyin, traf c
virtual clothing for own avatars. Burberry website is is directed to
Douyin’s Zaizai (仔仔) avatars attached to their Burberry's website.
in August 2022. Douyin account.

Images: Douyin@ Douyin, @王⻉宁Beira, Burberry’s of cial Douyin account, Burberry’s website
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SOCIAL COMMERCE FACILITATES COMMUNITIES


USE PRIVATE TRAFFIC TO CONNECT YOUR TARGET AUDIENCE 

POP MART’S OMNICHANNEL MEMBER STRATEGY

On WeChat, Pop Mart has more than 800 of cial groups


with over 100,000 users. On top of this, there are more
than 150,000 unof cial groups that have been created by
fans.

The brand does UGC campaigns through WeChat mini


programs to encourage consumers to post their purchases.

On Douyin, it has 22.34 million followers with 8


chat groups.

By building a sense of community and trust on social


media platforms, Pop Mart (泡泡玛特) expands their
network, fosters customer engagement, and increases
sales.
WECHAT GROUPS WECHAT DOUYIN
MINI PROGRAMS

Source: Pop Mart Images: Screenshots from a Pop Mart’s WeChat group, mini program and their of cial Douyin store

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ACTIVE COMMUNITIES IMPACT SALES


MARKETING DIRECTLY TO FANS AND FOLLOWERS AND GOOD SERVICE DRIVES SALES 

Brands that manage private tra c well to


market directly to their fans and provide good 2.359 BILLION RMB
customer service on social networks see
results in improved sales.
(+33.1% YoY)
Pop Mart’s revenue in H1 2022
On top of that, people are often in uenced in
their buying decisions by communities, friends
and family. This can also prompt them to make 23.05 MILLION
recommendations to others in their wider Pop Mart’s registered members
network as well. as of June 30, 2022

Chinese toy giant Pop Mart (泡泡玛特) has


grown rapidly as a result of the continuous 93.1% 47.9%
expansion of its member groups, customer Member sales made up Members’ repeat
service and IP portfolio enhancement. 93.1% of their gross sales purchase rate

Source: Pop Mart


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INTERESTED IN LEARNING FROM

INSIGHTS CHINA FOR YOUR GLOBAL


OPERATIONS? ALARICE CAN HELP.
SCAN HERE.
THE KEY FEATURES OF SOCIAL COMMERCE

HIGH-QUALITY CONTENT INTERACTIVE EXPERIENCES PRIVATE TRAFFIC IS


INFLUENCES PURCHASING ENHANCE ENGAGEMENT AND IMPORTANT TO CONNECT
DECISIONS SATISFACTION WITH YOUR AUDIENCE

After creating communities for


To deliver high-quality content, it’s
Provide unique interactive your private traf c and members,
important to understand your
experiences that enhance give them a reason to stay. Offer
audience’s needs, preferences,
consumer engagement. This members special access,
and pain points. Then create
includes highly visual, discounts and great customer
content featuring scenarios that
participatory, collectable and service. Make sure that your
resonate with them and show
gami ed experiences. communication is consistent with
your unique selling points.
your brand identity and values.
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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.

The main di erence: Traditional Commerce - “Give me what I want” v. Social


Commerce “Tell me what to buy”.

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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SOCIAL COMMERCE PLATFORMS INCREASE VISIBILITY


USERS CAN SEE BRAND ACCOUNTS, ADS, KOL RECOMMENDATIONS AND FRIENDS SHARING

BRANDING AND SELLING PEPSI ON DOUYIN

Using social media platforms with


large user bases, active in uencer
marketing, and e-commerce
options increases brand visibility 1.35
and allows brands to connect
with new and existing customers BILLION
easily.
VIEWS
on Douyin for the topic
Pepsi, for example, showcased
its celebrity endorsements and #Pepsi-Cola
posts and gained 1.35 billion (百事可乐)
views on Douyin on March 24th,
2023.

PEPSI’S BRANDING PEPSI’S SALES LIVESTREAMING


ACCOUNT ACCOUNT

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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SOCIAL COMMERCE SITES INCREASE ENGAGEMENT


AND THAT ENGAGEMENT IS MORE PERSONAL AND ACTIVE

POPULAR MODES OF ENGAGEMENT ON


CHINESE SOCIAL MEDIA AND
Brands can interact with vast audiences on SOCIAL COMMERCE PLATFORMS
social platforms in more interactive and
personal ways than through traditional
KOL MARKETING CAMPAIGNS
e-commerce channels.
USER-GENERATED CONTENT
This can be through in uencer marketing, user-
generated content campaigns, celebrity LIVESTREAMING
endorsements, creative campaigns,
gami cation, giveaways, lucky draws and other QUIZZES, POLLS, GAMES, LUCKY DRAWS
effective engagement techniques.
GROUP BUYING DEALS

Source: Statista,Global social networks ranked by number of users 2023


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A BETTER CUSTOMER EXPERIENCE


SOCIAL COMMERCE PLATFORMS ALLOW A SEAMLESS CUSTOMER JOURNEY

LOUIS VUITTON’S CUSTOMER-FRIENDLY WECHAT MINI PROGRAM


Customer loyalty and satisfaction can
be improved on social commerce platforms
because they provide seamless,
personalized shopping experiences.

For example, to increase traf c and improve


customer communication, Louis Vuitton
uses its WeChat mini program as a
primary touchpoint.

Businesses can create a memorable


shopping experience by providing
interactive features and prompt customer
service, thereby encouraging loyalty and
repeat purchases.

FASHION SHOWS SHOP VIRTUAL TRY ONS 1 TO 1 CUSTOMER


SERVICE

Source: Kuaishou Magnetic Engine Images: Screenshots from Louis Vuitton’s mini programs and their WeChat customer service account

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SOCIAL COMMERCE INCREASES SALES AND REVENUE


SALES AND REPURCHASE RATES ARE HIGHER ON SOCIAL COMMERCE SITES

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)

To increase sales, brands should identify the


product's core selling points based on
understanding consumer needs, including pain
points, frustrations and pleasure points.

Source: ASKCI

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STAY AHEAD WITH ALARICE ON THE

INSIGHTS LATEST TRENDS IN CHINA AND THE


CHINESE MARKET. GET IN TOUCH TO
LEARN MORE.
THE BENEFITS OF EMBRACING SOCIAL COMMERCE

SOCIAL COMMERCE CREATE A SMOOTH


CUSTOMERS ENGAGE MORE
INCREASES YOUR CUSTOMER JOURNEY TO
ON SOCIAL PLATFORMS
BRAND’S VISIBILITY DRIVE CONVERSIONS 

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

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CHINESE AND WESTERN


1

4 SOCIAL COMMERCE
PLATFORMS COMPARED
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WECHAT AND FACEBOOK


ECOSYSTEMS THAT FOCUS ON SLIGHTLY DIFFERENT THINGS
WECHAT’S SOCIAL COMMERCE

WECHAT WORK

WeChat in China (Weixin) is different from the


international version of the app. It’s an integrated OFFICIAL
ACCOUNTS SEARCH
ecosystem with messaging, personal and brand
accounts, search, ads, video (WeChat Channels),
mini programs that brands can use as stores and an
in-app payment option that is widely trusted. WECHAT

CHANNELS MOMENTS
ADS

MINI PROGRAMS WECHAT PAY


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WECHAT AND FACEBOOK


ECOSYSTEMS THAT FOCUS ON SLIGHTLY DIFFERENT THINGS
FACEBOOK’S SOCIAL COMMERCE

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

GAMING ORDERS AND


GROUPS
VIDEO PAYMENTS
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DIFFERENT CONTENT STANDARDS ON DOUYIN AND TIKTOK


CONTENT CONTROL IS STRONGER ON THE DOMESTIC VERSION OF THE APP

Before prohibited content alert  After prohibited content alert

DOUYIN

There are strong restrictions on


what can be sold and promoted on
Chinese social commerce platforms
and how people can present
themselves. This is monitored on
Douyin by AI and algorithms.

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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DIFFERENT CONTENT STANDARDS ON DOUYIN AND TIKTOK


CONTENT CONTROL IS STRONGER ON THE DOMESTIC VERSION OF THE APP

TIKTOK

In the West, particularly in Europe, there are strong


concerns about inappropriate content and
advertising to young people on TikTok, the
international version of Douyin, where 25% of
A post featuring a UK
users are under 19 years old. in uencer dancing with cans
of alcohol claiming they were
In June, 2022, TikTok changed its policies around low calorie and “actually get
you drunk” was banned for
branded content to prohibit the promotion of contravening alcohol ad rules.
alcohol, cigarettes and get-rich-quick Post banned
schemes. Paid ads must also be identi ed with a for alcohol
label. In July, 2022, the app added options to help claims 
lter out topics, words and hashtags people don’t
want to see in their feeds.

Source: CNET, Social Media Today, Exploding Topics Images: Screenshots from Douyin @刘耕宏, TikTok @ rosiebreenx via The Independent
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GROUPON AND PINDUODUO


GROUP BUYING IS STILL THRIVING IN CHINA
GROUPON
Groupon was founded in the United GROUPON’S GLOBAL REVENUE 2008-2021
States in 2008 and It led for an IPO in (In Billions of US dollars)
4
2011. It was focussed on group discount
deals of 50-90% at local businesses. It
had a large user base and was extremely
3
popular from around 2010 to 2016 with 2.955 3.013
2.859 2.843
record-breaking sales in 2014, its most 2.637
successful year. Alibaba Group acquired 2.334 2.352
2 2.219
a 5.6% stake in 2016.
1.61
Although the company still exists today, its 1.417
group-buying user base is much smaller 1
0.967
and the company is a very different entity
after acquiring many of its competitors 0.313
and companies in other sectors. 0
0.015
20

20

20

20

20

20

20

20

20

20

20

20

20

20
08

09

10

11

12

13

14

15

16

17

18

19

20

21
The company cut 500 jobs in August,
2022 and another 500 in January, 2023.

Source: TechCrunch, Wikipedia, Statista


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GROUPON AND PINDUODUO


GROUP BUYING IS STILL THRIVING IN CHINA
PINDUODUO MONTHLY ACTIVE USERS ON PINDUODUO
(In millions)
Pinduoduo was founded in China in 2015
800
as an agricultural retailer and later 741.5 751.3
pivoted to connect customers with 600
merchants in additional categories 487.4
400
including clothing, electronics and
home appliances. It also has its own 200 289.7
logistics system.
0
Q1 2019 Q1 2020 Q1 2021 Q1 2022
The platform has 2 prices, one for solo
purchases and one for group purchases. ANNUAL SPENDING PER ACTIVE BUYER ON PINDUODUO
The bigger the group, the bigger the (In RMB)
discount and you can earn free shipping, 1600
1,467.5
free products and other rewards through 1200
games and competitions that incentivize
referrals and social sharing. 800
762.8
400
385
It began trading on the Nasdaq in 2018
0
and by 2020 it had its rst quarterly June 2017 June 2018 June 2019
net pro t as a publicly traded company.
Source: Medium, Statista, Motley Fool
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NEED HELP WITH YOUR CHINA

INSIGHTS SOCIAL MEDIA MARKETING?


ALARICE CAN HELP. SCAN
HERE TO TALK TO US.
SOCIAL COMMERCE PLATFORMS COMPARED

GROUP BUYING APP


CHINESE SOCIAL COMMERCE CONTENT CONTROL AND
PINDUODUO IS GROWING IN
PLATFORMS HAVE HIGHLY STANDARDS ARE DIFFERENT
CHINA BUT GROUPON HAS
INTEGRATED ECOSYSTEMS ON DOUYIN AND TIKTOK
FADED IN THE WEST

When comparing China’s WeChat Douyin has strict controls on


(Weixin) to Facebook, it has a more presentation on the app as well as The original group buying app
tightly integrated ecosystem that on the items that can be sold and Groupon reached its peak in 2014
enables smooth payment options proomoted. AI and algorithms play and has been shrinking ever since.
and in-app shops for brands. a big role in enforcing its standards. Meanwhile in China, Pinduoduo is
Facebook’s ecosystem is more TikTok has a very young user base still growing in terms of users and
centred on messaging and sharing so there are regulations to restrict pro t.
video and images. advertising to them.
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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

UNDERSTANDING CHINESE CONSUMERS


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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.

LOOKING FOR AN INSIGHTFUL AND


ENERGETIC SPEAKER FOR YOUR NEXT
LEADERSHIP EVENT OR CONFERENCE?
CONTACT US TO BOOK ASHLEY AS A KEYNOTE
SPEAKER.
Follow my LinkedIn for daily China insights

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THE KEY SOCIAL COMMERCE CONSUMER GROUPS


GEN Z, WOMEN AND THE NEW MIDDLE CLASS ARE PRIMARY USER GROUPS

The
Gen Z Women New Middle
Class
34% 58% 65%
by Age by Gender by Income Group

Source: iimedia , iimedia


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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?

Many foreign companies nd that there is already a conversation taking


place in China about their brand. The only question is, should they be part of
that conversation or not?

International brands typically engage in one-way communication in their home


market. The social media conversation is two-way marketing. The
consumer is empowered and has a voice in the process. So foreign companies
need to get their game up and engage the shopping public on their terms. 
FRANK LAVIN
Chairman & CEO of Export Now

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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

Gen Z, usually referring to those born from 1995-2009, is


spending more money online every month than they used to.
They're very dependent on the mobile Internet and their favorite
platforms are Kuaishou and Douyin.

New forms of entertainment, such as scripted role-plays and


problem solving games, capture their interest as much as
animation and video games, and Gen Z is most concerned
about product quality when shopping.

Photo by freepik on Freepik


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GEN Z USER PROFILE


342 MILLION GEN Z USERS ARE ACTIVE ONLINE

CHINESE INTERNET USERS BY AGE GROUP (2022)

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

Source: CNNIC, Chinanews


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GEN Z USER PROFILE


GEN Z IS MORE LIKELY TO BUY ON IMPULSE
RATIO OF RESPONDENTS IN CHINA
WHO STRONGLY AGREE THAT THEY 

"BUY PRODUCTS ON THE GO"

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

Source: McKinsey & Co.


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GEN Z USER PROFILE


GEN Z IS LESS SURE ABOUT THEIR FUTURE CONSUMPTION

FUTURE EXPECTATIONS OF DIFFERENT TYPES OF


CONSUMPTION BY AGE GROUP (OCTOBER 2022)
(100 is the mean across age groups)

Gen Z (Born in 1995-2009) Gen Y (Born in 1980-1994)


Gen X (Born in 1965-1979) Baby Boomers (Born in 1950-1964)
Because Gen Z consumers tend to live in the moment and 140 134
buy on impulse, when asked about their future expectations 128
117 117
for purchases, they scored lower than all other age groups. 112 113
106
They’re also at an age where they are only starting to 105 102 101
understand what kinds of purchases are necessary and what 93
84
categories they will select from in the future. Given this, and 78
82
76
82
the fact that many still rely on their parents for money, it 70
69
makes sense that the category of items they seem to
understand best is necessities.
35

0
High-end products Health Affordable Necessities
and services and lifestyle entertainment
Source: BCG



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GEN Z USER PROFILE


GEN Z CONSUMERS ARE MORE LIKELY TO HAVE PETS
INTEREST IN PETS BY GENERATION
Proportion of this group who see having pets as important
Index =
Proportion of the general population who see having pets as important

1.4
1.4

The pandemic and environmental concerns have


increased consumers' desires to stay home and
decompress, especially Gen Z. 1.05
0.9 0.9
Compared with other age groups, Gen Z’s preference
for pets is higher and their attitude toward pets is that 0.7
they generally see them as companions or family
members. 0.5

0.35

0
Gen Z Gen Y Gen X Baby Boomers

Source: BCG

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GEN Z'S SPENDING POWER


THEIR CONSUMPTION POWER IS INCREASING
GEN Z ONLINE SPENDING POWER (JUNE 2022)

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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GEN Z PLATFORM PREFERENCES


MOST GEN Z USERS PREFER KUAISHOU
AVERAGE DAILY TIME SPENT ON SOCIAL COMMERCE
APPS USED BY GEN Z (JUNE 2022)
Unit: hours/ per day

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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GEN Z TOPIC PREFERENCES


4 BIG AREAS OF INTEREST FOR GEN Z

OTAKU DANCING CONSOLE GAMES MANGA NICHE SPORTS

@⼗⼀酱 @女流 @漫展保安王⼤爷 @⼦康


(Shí Yī Jiàng) (Nǚ Liú) (Màn Zhǎn Bǎo'ān Wáng Dà Yé) (Zi Kāng)
Douyin followers: Douyin followers: Douyin followers: Douyin followers:
3.05 million 1.46 million 438,000 825,000

Source: BCG
Image: ⼗⼀酱, 女流, 漫展保安王⼤爷, ⼦康 from Douyin







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GEN Z KOL PREFERENCES


GEN Z’S FAVORITE KOL CATEGORIES
BEAUTY AND
ANIMATION GAME MODELS CUTE PETS
SKINCARE

@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




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GEN Z PURCHASE PREFERENCES


THE TOP 5 FACTORS AFFECTING GEN Z'S ONLINE PURCHASES 

THE TOP 5 ONLINE CONSUMPTION CONCERNS


FOR GEN Z (JUNE 2022)
70%
65.4% 64.4% 63.1%
57.3%
Gen Z is interested in cost effective 52.5%
purchases. They want the best quality
they can get for the price. They’re also
very interested in brands and fashion
trends but are more forgiving when it 35% 31%
comes to the shopping experience.

17.5%

0%
Quality Price Brand Fashion Experience

Source: Questmobile, Anta


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EXPERT BITES
Q: WHAT ARE THE PREVALENT TRENDS IN CHINA'S PRIVATE
DOMAINS FOR MARKETING, SALES, AND CUSTOMER SERVICE?

A lot of customer service and CRM is happening on social media,


especially through private communications like WeChat chats. This delivers
the communication where customers are, i.e.WeChat. Brands used to have
private group chats for their (potential) customers which creates a sense of
community. I see more brands and companies have 1-on-1 chats with their
customers with tailored messaging and personalised vouchers. It's great
for engaging with customers and driving sales.  
TISHA WANG
Co-founder of Half A World
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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.

fi

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2 WOMEN

Female consumers, particularly those in third-tier cities, are


major social commerce consumers. In terms of age, the
biggest groups are under 24 or over 50.

Women are most interested in photography, variety shows, and


short videos. For short videos, they love to watch beauty and
skin care content. Douyin is still their most used platform, but
their time spent on Red is increasing signi cantly.

Source: Questmobile Photo by tirachardz on Freepik


fi
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FEMALE INTERNET USER PROFILE


WOMEN ARE CONTRIBUTING MORE TO CONSUMPTION

DECISION-MAKING
SPENDING POWER TRANSACTION RATIO
POWER

10 trillion yuan
70+%
60+%

of consumer spending is of female consumers help their of transactions on Taobao-related


contributed by 400 million female families make consumption platforms (Taobao, Tmall, etc.) are
consumers aged 20 to 60 decisions and choose brands and done by female consumers
products to buy

Source: Ali data


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FEMALE INTERNET USER DEMOGRAPHICS


KEY FEMALE USERS ARE IN GEN Z AND THE SILVER-HAIRED GENERATION

AGE DISTRIBUTION OF FEMALE USERS (JANUARY 2023)

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.

31-40 years old 17.7%

41-50 years old 15.0%

>50 years old 31.1%

0% 8% 16% 24% 32%


Source: Securities Daily

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FEMALE USER SPENDING POWER


WOMEN’S ONLINE CONSUMPTION POWER IS STRONG

ONLINE SPENDING POWER OF FEMALE USERS


(JANUARY 2023)
Unit: RMB

Given that 30.7% of female consumers have 1-999 29.0%


online spending power of more than 2,000
RMB, brands should invest in high-quality,
value-driven products and services and 1,000-1,999 40.3%
marketing campaigns that address the needs
and preferences of this demographic.

}
2,000-2,999 20.6%

30.7%
>3,000 10.1%

Source: CBNDATA
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FEMALE USER SPENDING POWER


WOMEN’S ONLINE CONSUMPTION POWER IS STRONG

DOUYIN'S PERFORMANCE AT THE 2023 WOMEN'S DAY FESTIVAL


(MARCH 1 - 8, 2023)

The GMV of the 2023 Women's Day Festival on


Douyin increased by 276% over last year. This 45.5 BILLION
signi cant increase in GMV highlights the growing Total exposures for goods in Douyin Mall
purchasing power of women in China.
16.1 BILLION
Views for videos with purchase links

276%
YoY increase in average GMV

Source Douyin
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FEMALE USER PRODUCT PREFERENCES


 WOMEN CONSUME THE MOST BEAUTY PRODUCTS

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%

30% 27.1% 26.9%

20%
13.2%
10%

0%
Beauty and Food and Household Mother and Baby
Skincare Beverage appliances products

Data from April 4th, 2023

Source: Questmobile




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FEMALE USER PLATFORM PREFERENCES


MOST PREFER DOUYIN

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)

Unit: millions Growth rate MAU


Unit: hours Growth rate Monthly usage time

6.0% 370 400 33.5


5.4% 40.0% 39.8% 34
26.8
4.5% 265 258 300 30.0% 25.5
3.9% 21.8%
20.0% 17.2
3.0% 200 13.6 17
2.1% 118 10.0%
1.5% 100 2.3% 8.5
0.0% -2.4%
0.0% 0.2% 0 -10.0% 0
Douyin Weibo Kuaishou Red Douyin Weibo Kuaishou Red

Source: Questmobile
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FEMALE USER CONTENT PREFERENCES


THESE CATEGORIES ARE POPULAR WITH FEMALE USERS ON DOUYIN AND RED
TV SERIES AND INFO ABOUT
PHOTOGRAPHY SHORT VIDEOS KOL CONTENT
VARIETY SHOWS USEFUL PRODUCTS

@摄影讲师李⼩龙 @毒⾆电影 @疯狂⼩杨哥 @Winnie⽂ @李佳琦Austin


(Shè Yǐng Jiǎng Shī (Dú Shé Diàn Yǐng) (Fēng Kuáng Xiǎo Yáng Gē) (Winnie Wén) (Lǐ Jiā Qí Austin)
Zhāng Xiǎo Lóng) Douyin followers: Douyin followers: 99.9+ million Red followers: Douyin followers:
Red followers: 1.3 million 62.8 million 5.7 million 45.1 million

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



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FEMALE USER KOL PREFERENCES


FEMALE USERS' TOP 5 KOL CATEGORIES ON DOUYIN
1 TRAVEL 2 THE WORK WORLD 3 LITERATURE 4 PHOTOGRAPHY 5 CUTE PETS

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








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FEMALE USER PURCHASE PREFERENCES


THE TOP 5 FACTORS AFFECTING WOMEN’S ONLINE PURCHASING DECISIONS 

FACTORS AFFECTING WOMEN’S ONLINE SHOPPING DECISIONS


BY TGI(TARGET GROUP INDEX)
(JANUARY 2023)
150
148.1

Health is the most important aspect for women when


shopping online. Low-price promotions are attractive 112.5
and they also pay attention to fashion, design and 103.2 102.4 102.4 100.8
product quality.
75

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

Young residents in third-tier cities and above with high


online consumption abilitiy and the willingness to consume
are the new middle class. The proportion of Post-90s in this
group is increasing.

They love watching KOL content, listening to music and


they're particularly interested in smart home products and
automobiles. Apart from price, they're also looking for
excellent shopping experiences.

Photo by pressfoto on Freepik



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USER PROFILE OF THE NEW MIDDLE CLASS


THIS GROUP CONTINUES TO GROW

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.

PROPORTION OF NEW MIDDLE-CLASS ACTIVE ONLINE USERS


DEFINING THE NEW MIDDLE CLASS
(JULY 2022)
New middle class
25-40 years old All active online users

1,000 RMB or more per month in 13.7% (163 million)


online spending power
87.8%
12.2% (140 million)
Live in Tier 1 - Tier 3 cities
86.3%
Inner ring: 2021
Medium to high willingness to spend Outer ring: 2022

Source: Zheshang Securities


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USER PROFILE OF THE NEW MIDDLE CLASS


MORE POST-90S REACH MIDDLE-CLASS LIVING STANDARDS

PROPORTION OF ONLINE USERS WITH HIGH


SPENDING POWER AMONG THE NEW MIDDLE CLASS
17%
Online users with high spending power have 16.4%
increased from 14.5% in July 2021 to 16.4%
16%
in July 2022.

Brands need to be aware of the


15%
changing behaviour and preferences of
middle class online consumers to stay
relevant and competitive in the market. 14%
14%

13%
2021-07 2022-07

(High spending power = online spending power higher than 3,000 RMB per month)

Source: Djyanbao

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USER PROFILE OF THE NEW MIDDLE CLASS


MORE POST-90S ARE ACHIEVING MIDDLE CLASS LIVING STANDARDS

GENERATIONAL DISTRIBUTION OF THE NEW MIDDLE CLASS

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%

Inner ring: 2021


Outer ring: 2022

Source: Questmobile

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PLATFORM PREFERENCES OF THE NEW MIDDLE CLASS


MOST USERS PREFER DOUYIN
THE USAGE TIME AND YOY GROWTH IN MIDDLE CLASS USERS
(JULY 2022)

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

YoY growth rate Average usage time per month


Source: Questmobile
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CONTENT PREFERENCES OF THE NEW MIDDLE CLASS


THE TOP 4 OFFLINE DRAWS FOR THE NEW MIDDLE CLASS
CAMPING (73.6%) FITNESS (39.5%) COMEDY (38.6%) MASSAGE (30.9%)

@⼩绿洲 @Norah脱⼝秀 @南瓜花花


@ssserena hu
(Xiǎo Lǜ Zhōu) Red followers: (Norah Tuō Kǒu Xiù) (Nán Guā Huā Huā)
Red followers: 717,000 Red followers: Red followers:
285,000 890,000 170,000
Source: Wu Xiaobo Image source: ⼩绿洲, ssserena hu, Norah脱⼝秀, 南瓜花花





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KOL PREFERENCES OF THE NEW MIDDLE CLASS


MIDDLE CLASS USERS’ FAVORITE KOL CATEGORIES

CURRENT AFFAIRS TRADITIONAL CULTURE DAILY LIFE TIPS LEGAL KNOWLEDGE

@⻓江说法 @京剧吴昊 @⽣活⼩妙招 @何⻘阳律师


(Cháng Jiāng Shuō Fǎ) (Jīng Jù Wú Hào) (Shēn Ghuó Xiǎo Miào Zhāo) (Hé Qīng Yáng Lǜ Shī)
Douyin followers: 10.14 million Douyin followers: 0.87 million Douyin followers:1.14 million Douyin followers: 2.09 million

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



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PURCHASE PREFERENCES OF THE NEW MIDDLE CLASS


THE TOP 5 FACTORS AFFECTING ONLINE PURCHASES BY THE NEW MIDDLE CLASS

FACTORS AFFECTING THE ONLINE SHOPPING DECISIONS


OF THE NEW MIDDLE CLASS BY TGI
(JULY 2023)

Active TGI Proportion of active buyers


112
111
Price, brand awareness, quality and fashion are 110
fundamental and growing in importance to new
middle class online shoppers. Consumption 70% 106
105
trends among the middle class are shifting from
62% 61.4% 60.7%
owning something to owning something 52.5% 54.3%
excellent. The shopping experience is not top of
mind now but it’s becoming more in uential.
35%
35.1%

17.5%

0%
Price Brand Quality Fashion Experience

Source: Woshipm Note: TGI (Target group index)


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REVAMPING YOUR CHINA

INSIGHTS MARKETING STRATEGY? GET IN


TOUCH WITH ALARICE TO HELP
YOU SUCCEED. SCAN HERE.
THE KEY SOCIAL COMMERCE CONSUMER GROUPS

WOMEN ARE OFTEN


GEN Z’S ONLINE THE NEW MIDDLE CLASS IS
HOUSEHOLD PURCHASE
CONSUMPTION IS GROWING GROWING 
DECISION MAKERS

For family and household People with increasing amounts


For brands with a Gen Z target
purchases, women have a lot of of disposable income in Tier 1 to
audience, marketing and social
the decision-making power. Tier 3 cities are becoming a
commerce, especially on
Household and beauty brands social commerce force. Brands
Kuaishou and Douyin, that
are wise to connect with this need to offer affordable, quality
addresses their needs and
group, especially those under 24 goods that serve their needs for
interests is essential.
and those over 50, online. services and products.
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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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CHATLABS SXP WON THE


2023 LVMH INNOVATION
AWARD FOR DATA & AI.
SCAN TO LEARN MORE

SOCIAL COMMERCE

JOURNEYS AND TECH


WHAT’S BEHIND SOCIAL COMMERCE?

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Q: HOW DOES DATA & AI SOLUTION HELP BRANDS


EXPERT BITES
CREATOR’S BITE DELIVER EXCEPTIONAL CUSTOMER EXPERIENCES AND
ELEVATE SOCIAL COMMERCE STANDARDS?

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.

SXP raises the standards of social commerce and take personalized


experiences to the next level. It allows brands to combine social media
and e-commerce, and e ectively communicate their stories and values.

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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SOCIAL COMMERCE CONSUMER JOURNEYS

NUMBER OF INTERNET USERS IN CHINA AS OF DECEMBER 2022,


BY ACTIVITY (IN MILLIONS)

Instant messaging
1,038.07%

The National Bureau of Statistics of


Videos (including short-form)
1,030.57%

China has reported that these are the


most popular internet interests and
Short videos
1,011.85%

engagement modes in China as of June


2022.
Online payments
911.44%

This highlights the importance of content Online shopping


845.29%

in driving sales on social commerce


platforms. News
783.25%

Livestream
750.65%

Music
684.2%

Online gaming 521.68%

Source: Statista
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SOCIAL COMMERCE CONSUMER JOURNEYS


SHOPPABLE CONTENT ON DOUYIN

Guerlain's Douyin storefront places


shoppable content strategically throughout
the user experience.

From the entry point of the storefront,


Guerlain highlights:

- Livestreams

- Shoppable content

- Membership registration with special deals

- Following the o cial account with short


videos and embedded product links

Images: Guerlain on Douyin


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SOCIAL COMMERCE CONSUMER JOURNEYS


SHOPPABLE CONTENT CHATLABS SXP WON THE 2023 LVMH
INNOVATION AWARD FOR DATA & AI.
SCAN TO LEARN MORE

A Shoppable Content Guide for Brands on Chinese Social Commerce

Aggregate, analyze Create engaging O er special


and understand and informative deals and
user data. content. memberships.

Step 2 Step 4 Step 6

Step 1 Step 3 Step 5 Step 7

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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SOCIAL COMMERCE CONSUMER JOURNEYS


LIVESTREAM SHOPPING ON DOUYIN

Livestreaming commerce in China is


expected to continue its rapid expansion,
with the market size projected to reach
4.9 trillion yuan (US$ 753 billion) by 2023,
according to Statista. Creatively
interacting with customers during
livestreams is key to driving engagement
and sales. 

Dior embedded livestreaming at the start


of their brand zone on Douyin.

During a livestream, these features are all


1 to 2 clicks away.

- Product pages

- A list of all showcased products

- Membership registration

- Special o ers

Photo: Dior on Douyin


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SOCIAL COMMERCE CONSUMER JOURNEYS


LIVESTREAM SHOPPING CHATLABS SXP WON THE 2023 LVMH
INNOVATION AWARD FOR DATA & AI.
SCAN TO LEARN MORE

A Livestream Shopping Guide for Brands on Chinese Social Commerce

Follow up with leads after Lead the livestream with

the livestreams to o er product promotions, limited-time


support and information. discounts and recommendations.
• Floating windows

Step 2 Step 4
• Send personalized promos
to users’ accounts

Step 1 Step 3 Step 5


• Make membership
registration and product
Acknowledge and engage with Respond to Leverage
feature highlights visible
users to interact during livestreams. questions promptly. livestream features.
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SOCIAL COMMERCE CONSUMER JOURNEYS


SHOPPABLE CHATS IN WECHAT

Gra ’s O cial WeChat Account (OA)

WeCom Clienteling, WeChat, Weibo,


and Douyin are vital for businesses in
China to engage with customers,
increase sales, and o er personalized
services based on a 360° customer
view.

Gra uses WeChat questionnaires for


customers to book appointments and
gather preferences for tailored
experiences.

Connects users with a sales agent Receive product recommendations in chat


based on users’ location. from the assigned sales agent.

Photo: Gra on WeChat


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SOCIAL COMMERCE CONSUMER JOURNEYS


SHOPPABLE CHATS IN WECHAT

Prada’s O cial WeChat Account


The live chat window in the mini
program product page is the
sales agent’s WeCom account

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.

Purchase the product


through the WeChat
Mini Program card

Connect users with a sales agent Receive product recommendations in chats


in customer support live chat with the assigned sales agent

Photos: Prada on WeChat


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SOCIAL COMMERCE CONSUMER JOURNEYS


SHOPPABLE CHAT

Shoppable Chat Guide for Brands on Chinese Social Commerce

Connect users with sales agents based Support users


on the user’s location. with live chat.

Step 2 Step 4

Step 1 Step 3 Step 5

Reduce reliance on 3rd-party Send users personalized Consolidate customer


e-commerce platforms and product recommendations. pro les with the
prioritize platforms that enable Users can pay within the conversational data.
data ownership, including WeChat message and app.
and WeCom.
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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.

However, a new trend in social e-commerce, called "quiet selling" live-


streaming, offers a more re ned way to showcase goods, resembling an of ine
experience and promoting premium products.

Brands should consider presenting their products within a lifestyle context.


Advanced technology, such as AR, could be the next step to enhance proximity OLIVIER PICHON
further.
Founder of PRIVET

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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.

Ensuring seamless integration between online and of ine channels, cultivating


collaborations and partnerships, and staying agile and adaptive to emerging
trends, consumer preferences, and technological advancements will help brands SANDRINE ZERBIB
remain competitive and relevant in the rapidly evolving social new retail Founder & Chairwoman of Full
landscape. Jet & President of Baozun Brand
Management
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2
1
THE TECHNOLOGIES THAT
POWER SOCIAL COMMERCE
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Q: HOW CAN BRANDS EFFECTIVELY FUTURE-PROOF THEIR


EXPERT BITES
CREATOR’S BITE PRESENCE IN CHINA'S SOCIAL COMMERCE CHANNELS?

1. Ensure compliance with China's Personal Information Protection Law (PIPL) to


avoid penalties while conducting personalized marketing.

2. Unify social follower data from China channels, .cn website, and Salesforce for
comprehensive customer pro les.

3. Track customer behaviors, segment users, and automate hyper-personalized


experiences across China channels.

4. Establish loyalty programs to reward brand-user interactions, building trust


and nurturing loyalty while shortening conversion time.

5. Boost organic reach among similar shoppers by leveraging customers' social


MICHEL TJOENG networks with engaging social campaigns.
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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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


SOCIAL CHANNEL INTEGRATION

To deliver a seamless and personalized customer


experience and inform e ective business strategies,
international brands must use the integral, compliant
data from China's social commerce channels, including
MARKETING COMMERCE
WeChat, WeCom, Weibo, Douyin, Xiaohongshu, and
Tmall. 

Capturing real-time, 360°, compliant data while SERVICE


obtaining user consent with privacy-based access
controllers is crucial. 
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


SOCIAL CHANNEL INTEGRATION

Social Channel Integration Strategies

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.

Integrate Chinese social data with owned


Consent management: Chinese privacy systems and CRM.
regulations require transparent data gathering,
ethical data use, and consumer consent.
Consent management is crucial for cross-border
Orchestrate data for personalized content
data transfer and sensitive data storage.
and generative customer journeys.
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


CONTENT CURATION

Content curation is critical for social


commerce in China. Your brand must
curate real-time, personalized content
based on consumer intent vectors to
resonate with the target audience. 
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


CONTENT CURATION CHATLABS SXP WON THE 2023 LVMH
INNOVATION AWARD FOR DATA & AI.
SCAN TO LEARN MORE

Curating Content Based on Consumer Intent Vectors

Identify key user preferences using keyword Create user-speci c CTAs


research, social listening, analyzing search for different leads to enhance the
queries, online behavior tracking, and user personalized experience.
segmentation across social commerce channels.

Consider format and distribution


Curate dynamic and real-time content using
channels, such as WeChat, to ensure
generative journeys, product reviews, user-
content that resonates with the target
generated content, and in uencer collaborations.
audience.
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


LIVESTREAMING ON WECHAT

1-on-1 livestreams in China o er engaging,


personalized experiences. Brands can showcase
products, answer questions, build trust, and foster
community, ultimately increasing the likelihood of a
purchase.

Cartier o ers personal 1-on-1 livestream product


showcase service. Users can book a livestream
showcase session on the product page.

• Before the showcase starts, a reminder is sent


to the users’ WeChat.

• During the meeting, users can browse product


pages without leaving the livestream.

• After the meeting, the sales agent sends a list of


products the user is interested to their personal
account.

Photo: Cartier on WeChat


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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


LIVESTREAMING

Strategies For 1-on-1 Product Showcase Livestreams

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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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


CUSTOMER DATA PLATFORM (CDP)
Social 360°

LOCAL DATA DATA GENERATIVE


A CDP for social commerce is a technological SOURCES ACTIVATION AI EXPERIENCES
solution that collects, uni es, and analyzes
customer data from various sources for Social Channels
marketing, sales, and service purposes.

International brands can orchestrate the data


that’s important for the Chinese market, such
as: 

• user location information

• conversion path data

• purchase history

• wish lists

• app activity

• click data
1st Party Sources
• data from private tra c, such as
conversational data
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


CUSTOMER DATA PLATFORM (CDP)

Strategies for Using CDP For Social Commerce

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.

Leverage insights gained from CDP to


Break down silos between channels by
personalize marketing campaigns and stand
using CDP to enable more personalized or
out from the competition in the growing social
AI-powered generative customer journeys.
commerce space.
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


AI PERSONALIZATION ENGINES

Strategies for Using CDP for Social Commerce in China

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)

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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


AI PERSONALIZATION ENGINES

A UNIQUE EXPERIENCE FOR EVERY SINGLE CUSTOMER

Social commerce platforms use arti cial


intelligence and machine learning to enhance
the customer experience. Sophisticated SOCIAL POST PURCHASE ONLINE
algorithms examine user behaviour, including
browsing history and social media activity.

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

The goal is to transform the social commerce


landscape through innovative AI technology,
delivering a personalized, engaging, high GENERATIVE JOURNEYS

conversion experience.
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


AI PERSONALIZATION ENGINES

Social experience platforms with AI


personalisation engines can automate a
personalised experience for every customer
with minimal setup and operational e ort.
Here are some advanced features:

• Hyper-personal content feeds

• Generative customer journeys

• Real-time behavioural data collection 

• Machine learning

These features allow your brand to tailor their


marketing e orts, optimise engagement and
conversion rates, continually learn and
provide the most relevant and engaging
content possible.
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


AI PERSONALIZATION ENGINES CHATLABS SXP WON THE 2023 LVMH
INNOVATION AWARD FOR DATA & AI.
SCAN TO LEARN MORE

Consumers can explore a brand-owned and


controlled experience that resembles social
media, complete with a personalized content
feed and tailored interactions based on their
preferences.

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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


PERSONALIZED DECISION JOURNEYS

International brands in China use


personalized journey decision
processes to recommend products
based on customer interests and
target ads and messages to cart
abandoners.

The journey decision process is


driven by:

• Data analysis using real-time


customer data to identify
patterns and trends.

• Business rules dictating what


content or action to present to
customers at each stage of the
journey.
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


CHAT ORCHESTRATION GOT A QUESTION?
SCAN THE QR CODE AND
LEAVE US A MESSAGE!

WeCom Clienteling is a WeChat-


based CRM tool for businesses in
China, o ering personalized
recommendations, customer
interaction tracking, and enhanced
engagement with messaging, voice
and video call integration.

It also provides customer pro ling,


purchase history tracking, and
inventory management for
personalized recommendations and
o ers.

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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


CHAT ORCHESTRATION
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


CHAT ORCHESTRATION

Ways to Use WeCom Clienteling


to Orchestrate Personalized Social Commerce Sales

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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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


REAL-TIME TRACKING

Real-time tracking is critical on Chinese social


commerce platforms. These are key features:

• Event tracking monitors speci c customer


actions in real-time, recording data such as
time, location, device, adding it to a
basket, making a purchase, or sharing a
product on social media.

• Trackable QR codes track customer


interactions and behaviour, providing data
for re ning marketing strategies and
o ering personalized recommendations. 

• Customizable menus o er personalized


product recommendations, adjusted in
real-time based on customer data. 
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THE TECHNOLOGIES THAT POWER SOCIAL COMMERCE


REAL-TIME TRACKING GOT A QUESTION?
SCAN THE QR CODE AND
LEAVE US A MESSAGE!
Events That Businesses May Record With
Event Tracking on Chinese Social Commerce

Product views: Tracking the number of times


a product is viewed by customers on the
Wishlist: Tracking when customers add a product
platform.
to their wish list for later purchase.

Add-to-cart: Tracking when customers


add a product to their cart.

Social sharing: Tracking when customers share a


Checkout: Tracking when customers go product or promotion on social media.
through the checkout process to make a
purchase.

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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

CEO of RedFern Digital


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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

CEO of Kung Fu Data


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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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THE SOCIAL COMMERCE SITUATION WORLDWIDE


MARKET STATS Social Commerce Market Size
Total retail social commerce sales in 2021, 2023 and 2025 (in billions of USD)

+X% Expected annual growth rate 2021-2025

China North America Western Europe


+17% +27% +34%

892 1,251 1,651 47 78 121 24 47 78

2021 2023 2025 2021 2023 2025 2021 2023 2025

Latin America Central/Eastern Europe & MEA Asia Paci c


+41% +36% +16%

12 25 47 17 34 60 99 140 182

2021 2023 2025 2021 2023 2025 2021 2023 2025

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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THE SOCIAL COMMERCE SITUATION IN CHINA


MARKET STATS GOT A QUESTION?
SCAN THE QR CODE AND
LEAVE US A MESSAGE!

The Current State of Social Commerce in China by Journey Type

Livestreaming e-commerce: In uencer e-commerce: Short video e-commerce:


Statista predicts that in China the market eMarketer predicts that the GMV of Goldman Sachs predicts that the global
for livestreaming commerce will continue social commerce in uencers in short video sector will be valued at nearly
to experience signi cant growth, with a China will reach US$ 23.96 billion US$ 180 billion by 2026. Chinese online
projected market size of 4.9 trillion yuan by 2023. users spent more time watching short
(equivalent to US$753 billion) by 2023. videos than any other form of
entertainment, comprising 31% of their
online time on average, according to reports
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THE SOCIAL COMMERCE SITUATION IN CHINA


MARKET STATS
Performance Metrics For China's Most Popular Social Commerce Platforms
WECHAT PINDUODUO KUAISHOU DOUYIN XIAOHONGSHU (RED) WEIBO
US$ 22.2 billion
Estimated 2023 US$ 2.02 trillion US$ 309.43 billion
US$ 137.11 billion
US$ 17.16 billion
US$ 13.14 billion

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

Marketing short videos, 

short videos,
short videos with livestreams
guidance, reviews, topic discussion
Methods livestreams
pictures with links links, livestream with links  recommendations

• food, household and clothing

•  brand mini programs
games, 

content (by engagement)

Popular Content
•  brand livestreams
beauty,
entertainment, professional
hot topics/in uencer
• healthcare, skin care and

 Types •  o cial brand accounts


baby care e-commerce  knowledge videos topics
cosmetics (by increasing

for marketing campaigns campaigns


short video content)
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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.

For example, we collaborated with lu.meng, a prominent RED KOL, to host a


livestream on RED for Réalisation Par. During the livestream, she expertly styled
35 looks and provided valuable insights on design and styling, resulting in sales
surpassing the target by 400%.
ELISA HARCA
Co-Founder and CEO Asia of
Red Ant Asia
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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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2 WECHAT
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THE SOCIAL COMMERCE SITUATION IN CHINA


WECHAT MINI PROGRAMS

WeChat mini programs (MPs) are e-commerce outlets within


WeChat’s ecosystem. 

On the 28th of March, 2023, Tencent announced important


information about MPs at its WeChat Master Class:

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. 

2.MPs had continuous growth in transaction volume, accounting


for more than 10% of all WeChat commercial payments by Q4
2022. 

3.The MP team plans to improve the user experience, support


service providers, and help developers provide more valuable
products in 2023.

Images: Screenshots from Dior's mini programs


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THE SOCIAL COMMERCE SITUATION IN CHINA


WECHAT MINI PROGRAMS GOT A QUESTION?
SCAN THE QR CODE AND
LEAVE US A MESSAGE!

What Can WeChat Mini Programs (MP) Do?


For Brands For Users

Can be linked Can be linked in Previously used Scan a QR code to


in of cial WeChat accounts template messages MPs and the MPs of nearby a MP store
businesses are stored in a list

MP cards with links can be Can use Share a MP


Search MPs
shared in WeChat groups location-based search with friends
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THE SOCIAL COMMERCE SITUATION IN CHINA


WECHAT MINI SHOPS

WeChat's new feature, mini shops, simpli es


the process of setting up an online store for
businesses and aims to expand its online
shopping division.

WeChat users can earn commissions by


partnering with third-party e-commerce sites
to sell products, with Tencent receiving a small
payment for transaction processing.

Images: Screenshots from WeChat Minishop,Westore


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THE SOCIAL COMMERCE SITUATION IN CHINA


WECHAT PAY

WeChat Pay Performance

More than
More than 1 million
1.133 billion
40 million transactions
in 2023
stores daily

WeChat Pay Where WeChat Pay is How often WeChat Pay


active users accepted in China is used in China
(Business of Apps) (PYMNTS.com) (PYMNTS.com)

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THE SOCIAL COMMERCE SITUATION IN CHINA


WECHAT CHANNELS: A SHORT VIDEO PLATFORM

WeChat Channels (Short Video Feed)


Performance I, 2022

In 2022, WeChat Channels Over 100% 185%


experienced rapid growth, with its 308% 186%
compared to increase
total user engagement reaching increase increase
2021 YoY
80% of that of its Moments feed
(which is similar to Facebook’s
newsfeed). Video views based on Growth in daily Growth in the number Growth in popular Growth in plays of
recommendation algorithms active creators and of creators with over content with over entertainment
daily video uploads 10,000 followers 100,000 likes content
increased by 400% YoY, according
to Tencent’s WeChat Master Class
2023 report.

291% 109% 273%


increase increase increase

Growth in Growth in Growth in


lifestyle content knowledge content news content
Source: 运营研究社 on WeChat

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THE SOCIAL COMMERCE SITUATION IN CHINA


WECHAT CHANNELS: A SHORT VIDEO PLATFORM

WeChat Channels (Short Video Feed)


Performance II, 2022
Private domain transactions and alliance
distribution on WeChat Channels
Over 15%
800% YoY of total Over 200
Private domain transactions on WeChat increase payment RMB
Channels refers to sales transactions between GMV
creators and their followers, without the
involvement of third-party retailers or Growth in Private domain and alliance The average order
marketplaces.
WeChat Channels distribution transactions value of products sold
payment GMV (Top 3 categories: clothing, through livestreaming
Alliance distribution on WeChat Channels food and beauty)
refers to creators partnering with brands or
retailers to promote their products to their
followers and receive a commission for any
Over 60% 80% of
resulting sales.
of consumers consumers

Are from Are female


Tier 1- 3 cities
Source: 运营研究社 on WeChat

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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.

Douyin is more experienced in converting short video watchers to consumers on


their platforms, reaping rewards from their e-commerce investment in the recent
few years. WeChat Channels and Xiaohongshu are expanding their e-commerce
offerings this year. 
QIN CHEN

Managing Editor of TechNode


This year is the rst year that WeChat is seriously pushing for
commercialisation on its video section WeChat channels.
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EXPERT BITES
Q: HOW CAN AI AND DATA ENHANCE SOCIAL COMMERCE, SUCH AS
DECISION-MAKING AND TASK AUTOMATION FOR EFFICIENCY?

As AI becomes more sophisticated new tools are being developed to automate


social listening and social commerce, wherein the AI tool can parse through
the latest comments or reviews left by customers and provide insights on
preferences, trends, and directions for new product development.

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

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3 DOUYIN
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THE SOCIAL COMMERCE SITUATION IN CHINA


DOUYIN LIVESTREAMING
Douyin Performance (2022)

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

6.18 (2022) Due to different user behaviour


(Feigua Data) Douyin prioritizes entertainment.
Tmall prioritizes purchasing.
(meritco-group.com)
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THE SOCIAL COMMERCE SITUATION IN CHINA


DOUYIN LIVESTREAMING

Douyin Livestreaming

Douyin also o ers these features to


Brands can use Douyin livestreaming for:
enhance the livestream experience:

• Product launches • Multiple Douyin accounts under one


• In uencer collaborations brand for livestream purposes for
• Showcasing products different targeted audiences
• Real-time product • Product links
recommendations  • Virtual gifts/Red packets
• Limited-time special offers • Brand membership bene ts
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THE SOCIAL COMMERCE SITUATION IN CHINA


DOUYIN LIVESTREAMING

Strategies to Optimize Douyin Livestreaming

Focus on the top-selling items, Highlight content quantity to drive


Use livestreaming as the nal step
which account for over 20% of sales tra c towards your livestream
in the Douyin conversion funnel
(June 2022, meritco-group.com) account (<500k Douyin followers)

Create a separate account Set lower prices and


Create display adverts
for livestreaming
creative promotions
(premium brands)
(>500k Douyin followers) speci cally for Douyin

O er limited-time Douyin Encourage user engagement


O er Douyin-speci c
livestream o ers, discounts, with incentives such as lucky
products
and easy membership entry draws for commenters
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4 XIAOHONGSHU (RED)
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THE SOCIAL COMMERCE SITUATION IN CHINA


XIAOHONGSHU

Little Red Book Active Users

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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THE SOCIAL COMMERCE SITUATION IN CHINA


XIAOHONGSHU

6 Key Consumer Groups Engagement by Content Category, 2022

37.47%

Food

White-collar Pleasure Home Furnishings


18.72%

Gen Z
Workers Seekers
Fashion
9.11%

Games, Hobbies, Financial Entertainment, Digital Home Appliances


7.14%

Trends, Studying, Independence, Hobbies,


Workouts Careers New Experiences Cosmetics
6.27%

Maternity and

4.80%

Infant Supplies

Elite Sophiscated Skincare


3.40%

Trend-setters
Singletons Moms
Accessories
2.93%

Fashion, Opinions, Quality Items, Fitness 1.82%


Lifestyle Content,
Hot Topics Independence Skincare

Stats: Qiangua Data

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THE SOCIAL COMMERCE SITUATION IN CHINA


XIAOHONGSHU

Xiaohongshu is particularly popular among young


urban women and has become an important
platform for cross-border e-commerce, enabling
Chinese consumers to purchase foreign products.

The value of Xiaohongshu:

Xiaohongshu's social commerce platform is highly


valued by Chinese consumers. It combines features
of social media and e-commerce, enabling users to
discover and purchase products while sharing
experiences and recommendations.

Its user-generated content has created a trusted


community, especially among young urban
females, who rely on it for product reviews and
purchasing decisions.

Images: Screenshots of Xiaohongshu’s feed


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THE SOCIAL COMMERCE SITUATION IN CHINA


XIAOHONGSHU

Is Xiaohongshu suitable for promoting your brand in China? 

• Xiaohongshu's user base is mostly young, a uent women in urban areas, with
increasing usage in low-tier cities.

• User-generated content is highly trusted, making Xiaohongshu valuable for


smaller or lesser-known brands to increase brand awareness and word of
mouth.

• Xiaohongshu is ideal for niche and lesser-known brands as users actively


search for content on unknown brands and products there.

• Choosing the right KOL based on their content and audience is crucial for
e ective collaboration.

• Brands should exercise caution with celebrity endorsements as Chinese


consumers are more skeptical of overly commercial recommendations.

Images: Screenshots from Olay's of cal Xiaohongshu account


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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.

Western companies interested in the China market must understand the


increasing emphasis on Chinese customers' interest protection, such as SARAH YAM
customer service and operational management ef ciency. These factors can
make or break the marketing traf c and impact their long-term success in Co-Founder of Red Digital China
operating social commerce in China.
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EXPERT BITES

Q: WHAT KEY TRENDS WILL SHAPE CHINA'S SOCIAL COMMERCE


FUTURE, AND HOW CAN FOREIGN COMPANIES ADAPT?

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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SOCIAL COMMERCE TRENDS IN CHINA


THE IMPACT OF GENERATIVE AI

JD Cloud will launch an


Baidu launched Ernie Tencent's Hunyuan AI chatbot Alibaba released the Tongyi
industry chatbot called
Bot (Wenxin Yiyan), the will be integrated into QQ and (Universal) large model in
ChatJD with a focus on retail
rst domestic generative WeChat, serving users through September 2022. Based on the
and nance. The ChatJD
AI product, in March, Tencent Cloud. It broke three Tongyi large model system. It can
platform will include ve
2023. It supports various records in May 2022, topping handle various cross-modal tasks,
applications: 

functions such as literary CLUE (Chinese Language including

creation, copywriting, Understanding Evaluation) for • Content generation

mathematical calculation, reading comprehension and a - Image captioning

• Human-machine dialogue

and multimodal large-scale knowledge graph, - Answering visual questions

• User intent understanding

generation. which organizes and represents - Audio-visual scene


• Information extraction

knowledge using a graph understanding

• Emotion classi cation


structure for a domain or - Cross-lingual image-text retrieval

subject. It's currently used in - Emotion and gesture recognition

WeChat search and Tencent - Sentiment analysis

advertising to enhance the - Cross-modal recommendations

search experience and ad - Multimodal dialogue


recommendations.
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SOCIAL COMMERCE TRENDS IN CHINA


THE IMPACT OF GENERATIVE AI
AI is being used in Chinese social commerce to analyze
customer data and generate personalized product
recommendations, content, and marketing campaigns.

Brands are using AI-powered chatbots, virtual try-ons,


and content to enhance the customer experience and
increase sales.

How do Chinese retailers leverage Chatbot AI?

Sales Advisor: AI is used by chatbots to answer common


questions about Hermès bags from Chinese users:

1. Which Hermès bag is best for a rst-time buyer?

2. Which Hermès bag colour retains the most value?

3. Which colour is the most popular for Hermès bags?

4. Which Hermès bag has the highest potential for value


appreciation?

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SOCIAL COMMERCE TRENDS IN CHINA


THE IMPACT OF GENERATIVE AI

Users often ask AI chatbots to recommend gifts

How do Chinese users Q: What brand of


leverage AI Chat? woody oral
fragrance perfume
do you recommend
as a gift for my
wife?

Source: @包你喜欢夫妇, Little Red Book


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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.

Research Analyst at Coresight


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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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SOCIAL COMMERCE TRENDS IN CHINA


VIRTUAL INFLUENCERS

Tencent, Alibaba, iFLYTEK, SenseTime, and


new entrants like XMOV, Cocohub, Virtro,
UneeQ, FaceUnity, and Xiaoice (Microsoft)
are the companies leading the Virtual Human
market. They enhance technology and
collaborate in di erent industries, such as
advertising, education, and entertainment,
leading to higher demand and
commercialization.

According to Statista:

- The size of China's virtual human sector is


estimated to reach US$ 5.56b in 2023

- In February 2023, the virtual human Little


Monk had the highest number of active
users and followers. He has 46,164,000 fans
on Douyin.
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SOCIAL COMMERCE TRENDS IN CHINA


VIRTUAL INFLUENCERS

Virtual Celebrity Avatars Revolutionize


Lancôme's Beauty Experience

L'Oréal Travel Retail Asia Paci c used virtual


celebrity avatars to engage with travellers
and showcase products. Successful
campaigns for Viktor&Rolf and Lancôme
featured avatars of Angelababy and Ling.

Virtual KOLs helped L'Oréal establish


emotional connections with customers and
di erentiate them from their competitors.
Brands must embrace digital innovation and
the metaverse to stay competitive.

Source: Angelababy’s Digital Twin Angela 3.0, Viktor&Rolf. Virtual Avatar Ling & Angie, Lancôme
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SOCIAL COMMERCE TRENDS IN CHINA


VIRTUAL INFLUENCERS
Learning from Lancôme’s virtual celebrity campaign

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

Lancôme's innovative marketing approach


Locations, virtual KOLs, and interactive
blends physical and digital practices
animation power Lancôme's marketing,
shows their understanding of their target
amplifying reach and providing an
audience and market trends and improves
unforgettable customer experience
conversion rates
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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.

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3 DATA OWNERSHIP
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SOCIAL COMMERCE TRENDS IN CHINA


DATA OWNERSHIP GOT A QUESTION?
SCAN THE QR CODE AND
LEAVE US A MESSAGE!

To improve personalized experiences


on social commerce channels and
increase conversions, international What is rst-party
brands in China should rely less on
data in China? User location Conversion Purchase
major e-commerce marketplaces information path data history
First-party data in China
like Tmall and JD and instead collect can be obtained and
more rst-party data through WeChat consolidated from WeChat
and WeCom.
mini programs and o cial
brand accounts.
Third-party data can cause issues with
inconsistency, transparency, and
incomplete performance metrics.
Wish lists App activity Click data
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SOCIAL COMMERCE TRENDS IN CHINA


DATA OWNERSHIP

How can brands collect rst-party data?

1.Get user consent through 1-on-1 online


customer support

Gra 's o cial WeChat account enables


customers to book appointments and
provide location and preference information.

Gra also provides a WeCom contact for a


1:1 relationship, an industry standard in
China.

Chat archiving and WeCom data integration


into CRM systems helps track opportunities
and improve performance.

Screenshot: GRAFF o cial Wechat account


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SOCIAL COMMERCE TRENDS IN CHINA


DATA OWNERSHIP

How can brands collect rst-party data?

2.  Get consent with the right incentives at


the right time

Brands must handle user information


carefully under China's tightened PIPL
(Personal Information Privacy Law) with
varying consent levels.

Montblanc requests consent via pop-up


windows at key user journey stages, o ering
member or visitor browsing options.

Incentives o ered at checkout and wish list


additions encourage users to give consent
and log in to their accounts.

Screenshot: Montblanc o cial Wechat miniprogam


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EXPERT BITES
Q: HOW CAN AI AND DATA ENHANCE SOCIAL COMMERCE,
INCLUDING DECISION-MAKING, PERSONALISATION, AND TASK
AUTOMATION FOR EFFICIENCY?

With the increasing maturity and affordability of technologies, AI can play an


increasingly vital role in boosting brand conversion rates by enhancing
personalisation. 

Imagine Sales Associates receiving real-time guidance empowered by AI insights


when leveraging WeCom for clienteling. This would streamline tailored
message pushes to the right audience in a more automated and e cient AURELIEN RIGART
manner.  Co-Founder and VP of IT
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Consultis
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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.

However, their heavy focus on marketing, allocating 60% of total investment to


social media marketing, has led to a decline in attraction over time.

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

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4 METAVERSE SHOPPING
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SOCIAL COMMERCE TRENDS IN CHINA


METAVERSE SHOPPING
Be ing, Guangdong, Shanghai, and Zhejiang excel in
different areas of metaverse technology and services
Hurun Research Institute released a
report called China Metaverse
Companies with the Greatest
Potential 2022 in Guangzhou. It lists
top companies in the metaverse
space.

BEIJING - Platform technology GUANGDONG - Smart hardware


The report also features "Hurun Baidu, Egova, and Glodon Huawei, OPPO, and Ubtech
Metaverse Future Stars 2022" with a
current value of less than US$ 1
billion.

Citibank predicts the metaverse will


have up to 5 billion users by 2030
and a potential market size of up to
SHANGHAI - Essential technology ZHEJIANG - Application companies
US$ 10 trillion.
Will Semiconductor, SenseTime, and Huayi Brothers, Songcheng
Semiconductor Manufacturing International Performance, and Jinke Culture.
ij

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SOCIAL COMMERCE TRENDS IN CHINA


METAVERSE SHOPPING
Industry Distribution
% of Top
Main Business Representative Companies
200
1 Software and Data 17% Bluefocus Intelligent Communications, Aofei  Data, Shunwang Technology
2 Semiconductors 16% MediaTek, Wi ll Semiconductor , Rockchip Electronics
3 Media and Entertainment 15% Tencent Holdings, ByteDance, NetEase
4 Electronic Components 14% BOE, Sunny Optical, Luxshare Precision Industry
5 Consumer Electronics 10% Huawei, Xiaomi, Haier
6 Al 8% Baidu, SenseTime, iFlytek
7 Telecommunications 6% China Mobile, China Telecom, China Unicom
8 Retail 5% Alibaba , JD Group, Vipshop
9 Financial Service 3% Ant Group, East Money Information, Hithink Royal ush Information Network
10 Hospitality 3% Trip.com Group, Songcheng Performance, Shanghai Oriental Pearl
11 Healthcare 1.4% WeDoctor, Medlinker, Ping An Healthcare And Technology
12 Education 0.9% O en Education Technology, Century Tai Education
13 Professional Services 0.9% Baton Technology, Jetsen Technology
14 Real Estate 0.5% Ke Holdings
15 Robot 0.5% Ubtech

Source:Hurun China Metaverse Companies with the Greatest Potential 2022


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SOCIAL COMMERCE TRENDS IN CHINA


METAVERSE SHOPPING

Alibaba leads in creating metaverse experiences in


China's Web 3.0 luxury marketing landscape, as
exempli ed in their Taolive City app for the Double 11
Shopping Festival. What do Alibaba’s metaverse
experience look like?

• The app allows users to explore a commercial


street and enter digital stores owned by luxury
brands

• There are advertising billboards, integrated


displays, and rotating ad screens

Major brands such as Estée Lauder, La Mer, and


Tissot have their own stores. The app integrates video
content, socializing, and custom avatars for an
immersive experience. Virtual shopping districts
showcase local specialties and promote cultural
understanding.

Screenshot from Tmall Pavillion


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SOCIAL COMMERCE TRENDS IN CHINA


METAVERSE SHOPPING

What can brands learn from Alibaba’s Taolive


metaverse?

• Mission-based games and lucky draws increase


online interaction and customer engagement.

• Interactive features, cultural elements, and


entertainment o er immersive shopping experiences,
setting a new luxury marketing standard.

• Video content, socializing, and immersive features in


a metaverse-like space take online shopping to the
next level.

• Digital avatars, virtual storefronts, and interactive


games personalize the experience and connect
customers with brands, promoting community and
cultural exchange.

Screenshost: 弥知科技 WeChat O cial Account


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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.

Social commerce platforms are competing with traditional e-commerce.


Douyin e-commerce announced expansion plans for Douyin Supermarket and SANDRINE ZERBIB
Douyin Takeaway in early 2023 to increase supply, develop the shelf mall,
Founder & Chairwoman of Full
cultivate user habits, and boost repurchase rates.
Jet & President of Baozun Brand
Management

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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.

LOOKING FOR AN INSIGHTFUL AND


ENERGETIC SPEAKER FOR YOUR NEXT
LEADERSHIP EVENT OR CONFERENCE?
CONTACT US TO BOOK ASHLEY AS A KEYNOTE
SPEAKER.
Follow my LinkedIn for daily China insights

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SOCIAL COMMERCE STRATEGIES


CHECKLIST

Step 1 Step 2 Step 3 Step 4

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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FOOD & BEVERAGE


1

1 SOCIAL COMMERCE STRATEGIES


AND BEST PRACTICES
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F&B PLATFORMS
1.1 DOUYIN IS THE BEST CHOICE FOR F&B BRANDS

The Proportion of F&B Consumers Who Got


Recommendations on Di erent Platforms
Platform Features (As of Dec. 2022)

54.1% of consumers got


recommendations through social
media (Douyin, Weibo, Red), and
44.3% of consumers would like to buy
products on livestreaming. DOUYIN WEIBO RED

66.01% 44.84% 36.45%

Source: Digitaling

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F&B PRODUCT FEATURES


1.2 HEALTHY, ATTRACTIVE, REASONABLY PRICED PRODUCTS ARE POPULAR

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.

Source: Douyin, Red, Digitaling


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F&B CONTENT FEATURES


1.3 SHOWCASING IS THE EASIEST WAY FOR BRANDS TO DO CONTENT MARKETING

Content Features

Social media discussions in the food


and beverage sector are dominated
by showcases, tutorials, and Showcases Tutorials
culinary adventures.
28% 19%

Culinary Adventures Testing and Tasting


17% 9%
Source: Digitaling

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F&B BEST PRACTICE ANALYSIS


1.4 YILI: INVITING CONSUMERS TO CO-CREATE INCREASED ENGAGEMENT AND SALES

Platforms:
Product + Content:

• Healthy Philosophy - 0 Carbon, Organic


Yili milk comes from organic farms with high nutritional value. The
company is promoting a "0 Carbon" transition to reduce carbon
emissions.

Soccer stars on Yili milk cartons


• Attractive Packaging - Fan Designs On Weibo, the brand garnered more than
Consumers were invited to design packaging that would be
attractive to football fans 27.24 billion reads
• Additional Highlight - User Engagement
Customers who spent a certain amount in purchases were entered During the World Cup, sales increased
into a lottery
The lottery was run through
a WeChat mini program
12.1%
Source: 36kr

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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.

The widespread popularity of short video content on platforms such as Douyin


and Kuaishou signi cantly bolsters the 'Shop from Content' model. With recent
enhancements rolled out by Xiaohongshu, including the ability for brands to
embed direct product page links within sponsored content, the 'Shop from RAY VERAS
Content' approach is anticipated to retain its status as one of the preferred social
commerce pathways in China. Co-Founder & CEO of PJdaren

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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?

1. Chinese consumers skipped desktop social and shopping platforms almost


entirely - so a far wider demographic of Chinese consumers access social
platforms, on their mobiles, for a much larger proportion of their day. This means
they are accustomed to heavily gami ed, or social shopping experiences - and it’s
easier to push for conversation, from tech-savvy gen-z-ers, all the way to Chinese
baby boomers. 

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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MOTHER AND BABY


1

2 SOCIAL COMMERCE STRATEGIES


AND BEST PRACTICES
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MOTHER AND BABY PLATFORMS


2.1 WEIBO AND WECHAT HAVE ALWAYS BEEN KEY, RED AND DOUYIN ARE A NEW FOCUS

Major Platforms for Brand Investment


(As of Dec. 2022)
Platform Features Category
Active Mother and Baby Shoppers KOLs
Weibo, WeChat, Red and Douyin
are the main channels for mother
and baby brands. Brands change
their focus from one platform to
another depending on the timing of WEIBO WECHAT RED DOUYIN
platform shopping festivals.

210 Million 90 Million 22 Million 90k

Source: Guoji PRO


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MOTHER AND BABY PRODUCT FEATURES


2.2 PARENTING TECHNIQUES AND SELF-CARE ARE THE BIGGEST CATEGORY TRENDS

Positive Parenting Self-Care for Mothers

Product Features Search term increases in the


Search Growth
mother and baby category (2022)
87%-122%
Mother and baby online Travel / Tools Bedding / Household
In Red, as of August 2022, #maternity photos
shoppers are upgrading their Products
(孕妇照) searches grew 87% and #postpartum
consumption and prefer
care centre (⽉⼦中⼼) searches grew 122%.
high-quality products. Mothers +440% +370%
are also dealing with their
pregnancy and postpartum
needs and feelings of self-
Mother and Daily Use Items /
consciousness. They have Baby Care Feeding
multiple consumption needs for
health, beauty and fashion
+2,052
items. +294%
%

Source: Douyin, Red, Digitaling


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MOTHER AND BABY CONTENT FEATURES


2.3 PARENTS ARE MOST CONCERNED ABOUT BABY FOOD AND SUPPLIES ON SOCIAL MEDIA

Content Features

Consumers share their warm family


moments on social platforms. They
also want to learn about parenting Baby Food Guide for
experiences, get evidence-based And Supplies New Moms
knowledge about pregnancy and
get information about popular 58% 17%
brands and products.

Pregnancy And Early Learning


Childbirth Experiences
10%
15%
Source: Weiboyi

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MOTHER AND BABY BEST PRACTICE ANALYSIS


2.4 BIOSTIME: DRIVE CONSUMER REPURCHASES THROUGH PROFESSIONAL SERVICES

Platforms:
Product + Content:

• Positive Parenting - Premium Products and


Professional Services
Ingredients added for sensitive and delicate babies to prevent
allergies.
Participants in the brand challenge
1-on-1 customer service and consultations to recommend campaign on Douyin
products.
Over 800,000
• Self-Care For Mothers - Mental Health
Hershey's holds a "Mom Class" to provide emotional support
and focus on the mental health of new mothers. Monthly sales
The brand campaign on
Douyin emphasizes Over 4 Billion RMB
ingredient safety

Source: Weiboyi

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EXPERT BITES
Q: IS LUXURY SUITABLE FOR SOCIAL COMMERCE, AND ARE THERE
NOTABLE EXAMPLES IN THE PAST YEAR? 

Social commerce is evolving to a consumer centred, experience oriented and


innovation engineered ecosystem and would be the future of e-commerce. Social
commerce focus on speci c communities, with all the events/campaigns launched in the
market, contents/ads released are precisely targeting the interests, needs and experience
of certain audiences, deepen their connection with the community as well as the brand.

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

3 SOCIAL COMMERCE STRATEGIES


AND BEST PRACTICES
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APPAREL PLATFORMS
3.1 RED IS THE MOST POPULAR OPTION FOR APPAREL BRANDS

The Proportion of Brand Investment


Platform Features in Di erent Platforms
(As of Dec. 2022)

Clothing and shoe brands often market


across three platforms, such as Red,
Douyin and Weibo.

Red has 3.5 times more af liated


RED DOUYIN WEIBO
clothing brands than other platforms.

48.6% 22.3% 12.8%

Source: Feigua
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APPAREL PRODUCT FEATURES


3.2 CONSUMERS WANT BOTH SOCIAL AND SUSTAINABLE FASHION

Social Situations Sustainable Fashion

63.96% 75% of consumers are increasingly


looking for versatile, classic items.

Product of consumers say they value dressing well,


Second-hand markets for retailored
Features with varying degrees of importance in
di erent social situations. clothes where hipsters gather have
become trendy. On Red, in 2022, user
searches for the hashtag #Remake (旧衣
Consumers are looking for 改造) #DIY increased 36%
apparel that can be used in
different social situations and Travel Business
love trendy items. At the same 62% 49%
time, sustainable fashion is a
strong trend. +36%

Dating Daily Work


41% 36%

Source: TOPKLOUT
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APPAREL CONTENT FEATURES


3.3 SOCIAL PLATFORMS PLAY A GUIDING ROLE FOR APPAREL CONSUMERS

Content Features

Consumers see social platforms as a


dressing guide, especially on Red.

81% of users have a desire to buy


after browsing products on social Find Out t
media. Help Making
Inspiration
Decisions

Learn About
Brand Trends

Source: Red
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APPAREL BEST PRACTICE ANALYSIS


3.4 FILA: USE A PLATFORM'S POWER TO HOLD EVENTS AND INCREASE SALES

Platforms:
Product + Content:

• Social Attributes - Solidifying A Young,


Energetic Image
Positioned as a premium Italian sports fashion brand, it has a
trendy attitude as represented by a spokesman with a sunny On Douyin, content with
disposition, famous idol Cai Xukun. the hashtag # lafashion
was viewed over
• Sustainable Fashion - Versatile And
Eco-friendly 92.03 Million Times
FILA emphasizes versatility, and their clothing suits a variety of
occasions. The newly launched Originale series is also
manufactured using environmentally friendly technology. Sports Apparel Brand Sales Ranking
FILA invited skateboarders to
participate in a brand event to warm #1
up for its new product promotion

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

Q: IN YOUR OPINION, WHAT FACTORS CONTRIBUTE TO SOCIAL


COMMERCE'S SUCCESS IN CHINA, AND WHAT SETS IT APART?

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

4 SOCIAL COMMERCE STRATEGIES


AND BEST PRACTICES
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HOUSEHOLD PRODUCT PLATFORMS


4.1 THE POPULARITY OF CONTENT MARKETING ON RED AND DOUYIN REMAINS HIGH

Major Platforms for Brand Investment


Platform Features (As of Dec. 2022)

Post Engagement Video Plays


Household product posts on Red are
increasing and ordinary consumers and In 2022
KOCs regularly share them.

Both livestreams and videos about


household products on Douyin grew by
nearly 90%. RED DOUYIN

12 Million 610 Million

Source: Feigua

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HOUSEHOLD PRODUCT FEATURES


4.2 CONSUMERS HAVE MULTIPLE DEMANDS FOR PRODUCT QUALITY AND QUANTITY

Multiple Winning With


E ects In Quantity
One Product
Product Features
35% of 90% of
Household product marketing describes
multiple e ects with a focus on new top top
technology and ingredients.
products products
Due to erce competition, there are often
promote are sold
price wars.
multiple in larger
e ects sizes

Source: Guoji
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HOUSEHOLD PRODUCT CONTENT FEATURES


4.3 BRANDS ARE EXPANDING THEIR REACH WITH CONTENT MARKETING STRATEGIES

Content Features

By injecting marketing with


emotional value, brands are
creating resonance with larger groups
of current and potential consumers.

Brands also use formats such as


holiday marketing and co-branding to Co-Branding and
Holiday Event
enhance their messaging reach. IP Cooperations
Marketing

Scenario-based
Marketing
Source: Guoji

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HOUSEHOLD PRODUCT BEST PRACTICE ANALYSIS


4.4 HOMEAEGIS: HIGHLIGHT EFFECTS AND VARIOUS CONSUMPTION SCENARIOS

Product + Content: Platforms:


• Multiple Safe Product Uses
The brand claims its soap is so safe that it can be used to clean dishes
as well as fruit and vegetables. It also claims that it’s mild enough that it
doesn’t make the your hands dry after using it.
Post that highlights the
product’s effects
• Winning with Quantity - Bonus Packs
On Red, it got
• Showed a Variety of Real Scenarios and Uses for
Di erent Customer Groups 36 Million
KOLs shared product placement posts with a chill vibe that featured exposures
them using the soap during their daily routines to attract the attention of
Gen Z. The brand focussed on white collar workers with fast, easy
food prep tutorials that focussed on the soap’s safety claims and its ease Product GMV growth YoY
of use and showed people using the soap to wash fruit and vegetables. The soap was
The product’s safe and mild ingredients were also emphasized to win
the attention of busy mothers.
featured in a food
preparation scenario.
+350%
Source: Red
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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

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3C PRODUCT
1

5 SOCIAL COMMERCE STRATEGIES


AND BEST PRACTICES
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3C PLATFORMS
5.1 INVESTMENT IN WEIBO AND WECHAT IS SLOWING WHILE RED AND DOUYIN SPEED UP

The Proportion of 3C Brand


Platform Features Investment in Di erent Platforms
(As of Dec. 2022)
There are big differences in the types
of KOLs used by 3C brands on
different social platforms.

They work with rst-tier KOLs on


Weibo and WeChat, mid-level
and small KOLs on Douyin, and
they work with KOCs on RED. WEIBO WECHAT DOUYIN RED

45.1% 33.2% 36.7% 12.8%

Source: Weiboyi
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3C PRODUCT FEATURE
5.2 DOMESTIC 3C BRANDS ARE NOW MORE ADVANCED WITH ADDITIONAL FUNCTIONS

The Rise of High Tech With A Focus


Domestic Products On Consumer Experience
Product Features
1.8 Million Views 50.2%
More and more consumers are choosing
50.2% of consumers said they prefer 3C
3C products made in China. On Douyin,
Domestic 3C brands have mastered digital products with a sense of
the hashtag #Support domestic cell
core technologies and gained technology and novel functions that
phones (⽀持国产⼿机) has been viewed
consumer recognition. enhance convenience.
more than 1.8 million times.

With this digital tech development, the


degree of sophistication of 3C products
is rapidly increasing.

Source: iResearch

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3C CONTENT FEATURES
5.3 CONVENTIONAL MARKETING MIXED WITH SOFT PROMOTION AND PRODUCT PLACEMENT

Content Features

3C brands' marketing formats


include demos for smart home
products, fashion and
photography content, unboxings,
reviews, and soft advertising in
educational videos.
Unboxings and Sharing Digital Tips
Product Reviews

Home Demos and


Recommendations
Source: Weiboyi
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3C PRODUCT BEST PRACTICE ANALYSIS


5.4 XIAOMI: DEEP COLLABORATION WITH RETAILERS TO ATTRACT TARGET AUDIENCES

Product + Content: Platforms:

• Additional Highlights: Cross-promotion With


King’s Glory
The video game King's Glory had a new map test that was limited
to machines at Xiaomi stores.
Store tra c during the campaign
• The Rise of Domestic Products and Brands
Xiaomi is ranked among the top 5 national brands liked by Chinese
people.
+14%
• High Tech With a Focus on the Consumer Xiaomi's game community and
Experience App Store exposure
Advanced hardware and processors makes game play very
smooth on Xiaomi products. Xiaomi phone unboxing
and evaluation video
2 Million
Source: Xiaomi

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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.

Navigating cross-border social commerce in China requires companies to be


predictive & responsive to constantly evolving market and consumer trends, and agile
enough to pivot, shift, or transition to respond to said trends.
JOHN DANZI
Head of Brand Partnerships at
APAC Farfetch

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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.

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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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1. MERGING MARKETING AND TRANSACTIONS


ACTIONABLE TIPS

TVB X TAOBAO LIVE-


In China, social media platforms such as WeChat, Weibo, and Douyin STREAMING
are not just used for socializing, but also for shopping.
100 MILLION RMB
Utilizing social media platforms, Western brands have the opportunity TVB’s live-streaming on Taboo
to interact with their customers and boost sales by directly selling revenue on 31 May, 2023
products through these channels.
10 MILLION + VIEW
This can be done through shoppable posts or by integrating buy on 31 May, 2023
buttons or links to online stores into social media ads.
+47.63% STOCK PRICE
By making it easy for customers to make a purchase directly from
June 2, Hong Kong Television
social media, businesses can increase conversion rates and drive
Broadcasting Co., Ltd. TVB X TAOBAO LIVE-
sales.
(00511.HK) ’s stock price rose STREAMING
by 47.63%, with a total market Miss Hong Kong
value of 3.136 billion Hong Special Show
Kong dollars.

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.

For example, use consumer-preferred platforms and relevant content to


attract and engage with customers. By meeting customers where they
are and providing content that resonates with their interests,
businesses can build stronger relationships with their audience and
create a more positive brand image.

By segmenting our target audience and developing personalized


marketing strategies, we can create more meaningful connections with
our customers, improve customer engagement, and ultimately increase
sales and revenue.

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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3. UNIFY YOUR DATA


ACTIONABLE TIPS

For the creation of all-encompassing 360-degree ONLINE TOUCHPOINTS OFFLINE TOUCHPOINTS


customer pro les, it is best to merge the information
from both your social media followers and your sales
channel clientele.

This provides a complete view of your customers'


interactions and behaviors across various channels,
enabling you to personalize the customer experience
and improve engagement.

Uni ed membership code (ID) integration has been


achieved for of ine channels, Tmall platform, and WeChat
mini program, enabling seamless integration of
membership levels and loyalty points, and achieving
omnichannel management.

1900 robot stores 360+ Physical stores


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MEET THE CREATORS AT ALARICE & CHATLABS

ASHLEY DUDARENOK SABBA IRFAN LENA LIN


Founder of Alarice and ChoZan Head of Marketing at Alarice Product Manager at Alarice

MICHEL TJOENG XIANA CHIN JOYPHIE YU


SVP Sales & Marketing at ChatLabs Sr. Marketing Manager at ChatLabs Content Manager at ChatLabs
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REPORT

CONTRIBUTORS
CONNECT FOR MORE INSIGHTS
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ABOUT THE CONTRIBUTORS

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

TECHMOAT CONSULTING SPECIALIST AND OBSERVER


CONSTANTIN

JOHN DANZI BENJAMIN



DAO NGUYEN TISHA WANG SUNNY ZHENG
THOMAS NIXON HEAD OF BRAND
CAVENDER OLIVER PICHON
FOUNDER OF ESSENZIA
CO-FOUNDER & DIRECTOR
RESEARCH ANALYST AT
CO-FOUNDER OF QUMIN PARTNERSHIPS AT APAC
MANAGING DIRECTOR OF
FOUNDER OF PRIVET
BY DAO OF HALF A WORLD CORESIGNT
FARFETCH CHINA MARKET RESEARCH GROUP

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

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ABOUT THE CONTRIBUTORS

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

GROUP OF OUTFORM LUXURY OF INTERNATIONAL BUSINESS,


ALIBABA CROUP

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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COPYRIGHT AND DISCLAIMER

Copyright © 2023 Alarice International Limited in collaboration with ChatLabs.

All rights reserved. This report or any portion thereof may not be reproduced or used in any manner whatsoever without the
express written permission of the publisher [Alarice International Limited] except for the use of brief quotations for reference
purposes.

Although the authors and publisher have made every effort to ensure that the information in this paper was correct at press time, they
do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether
such errors or omissions result from negligence, accident or any other cause.

The publisher has made every effort to ensure that URLs for external websites referred to in this paper are correct and active at the time
of publishing. However, the publisher has no responsibility for the websites and can make no guarantee that a site will remain live or
that the content is or will remain appropriate.

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ALARICE & CHOZAN SOLUTIONS

MARKETING RESEARCH AND STRATEGY CORPORATE TRAINING CHINA TRENDWATCHING


Our China marketing research and strategy team gives you a We can increase your expertise about the Chinese We specialize in illuminating trends in China.
detailed framework that will allow you to start and grow your market, Chinese consumers and Chinese social We dig deep to see what’s happening, the
business in mainland China. media with tailor-made masterclasses that put your obvious and the subtle, and through training,
team at the forefront. We run courses around the consulting, reports and regular newsletter
world and we can also create custom corporate updates, help brands turn these trends into
SOCIAL MEDIA MARKETING training programs for your team. meaningful business opportunities
We help you to localize messages, strengthen your brand
image and reach out to target audiences through Chinese
social media. KEYNOTE SPEECHES CONSULTING CALLS
Our founder, Ashley, is a well-known speaker and The quickest way to get your speci c, urgent
INFLUENCER MARKETING AND CAMPAIGNS can deliver keynotes full of energy, insight and China marketing questions answered. Speak
inspiration that will transform your event, motivate with Ashley or her team if you’re under time
We help you to establish goal-speci c social marketing
you and help you achieve your goals. pressure and need to get on the right track fast.
campaigns and fruitful collaborations with Chinese KOLs and
in uencers.

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CHATLABS SOLUTIONS

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SOCIAL EXPERIENCES PLATFORM (SXP) SOCIAL MARKETING


ChatLabs’ generative journeys, takes in the context of Attract, engage, segment, target, convert, and build brand
Social Media and the behavior of the customer and then loyalty through 360° view of customer pro les that
uses the power of AI to allow brands to tell their stories powers automated hyper-personalised journeys on any major CHATLABS CHATLABS
and share their values in a hyper-personalized manner. social channel.
Brands can now direct their traf c, to an elevated
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a tailored path towards a particular brand goal.

SOCIAL SERVICE DATAFLOW


Real-time China 360° data across marketing, commerce, sales
Use your Salesforce data in combination with WeCom to
and service, captures user consent at every touch point and
provide ef cient and personalised customer service that fosters
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ChatLabs works with several leading global brands in the luxury, retail, nancial services, tourism industries
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