JD Leads Social Engagement Growth with PDD Close Behind

•For the 618 event in 2024, total sales across all e-commerce platforms reached 742.8 billion RMB, marking a YOY decline of 7%.

•JD experienced the most significant year-on-year increase of 32%. This prominence is likely due to increased marketing investments and heightened enthusiasm for 3C products, combined with JD’s reputation for quality service.

•Pingduoduo(PDD) has emerged as a central figure in discussions around the 618 events, indicating a consumer shift toward more cost-efficient options.

3C

Apple Dominates 3C Discussions While Male Engagement Rises

•Similar to Double 11, engagement declines sharply after Apple, highlighting concentrated discussions on a few key players, with Apple leading.

•Six out of the top 10 3C brands are Chinese, showcasing strong local preference and a competitive edge over global brands.

•The spike in male audience engagement around 3C products discussions aligns with the heightened focus on JD, where many male customers from top-tier cities continue to prefer JD as their primary shopping platform for 3C products.

Beauty

Western Brands Lead Beauty Sector Conversations with Increased Competition Over Double 11

•L’Oréal Group continues to lead the sector, demonstrating robust performance in consumer engagement and marketing effectiveness.

•Only 2 Chinese brands ranked in the top 20, a decrease from 6 during the last Double 11. This change underscores the increasing market presence of Western brands, which capitalize on strong marketing strategies and high consumer trust.

•Company groups now represent 75% of the top 20 brands discussed during the 618 event, marking a 5% increase from Double 11 and indicating heightened competitiveness.

Apparel & Footwear

Outdoor & Sportswear Brands Lead While Chinese Brands Expand Influence

•Sportswear and outdoor labels continue to dominate apparel and footwear discussions.

•This year, four Chinese brands made the top 10, up from two in the last Double 11 event. Zara lost traction, while local brand Urban Revivomade a strong showing in the top 10, highlighting a notable shift toward local brands.

•Ubras and Bananain, emphasizing comfort and functionality in their product designs, have not only garnered significant social buzz but also outperformed major player Lululemon in the sector.

Household Appliance

Consumers Shifting Strongly Towards Chinese Brands Over Premium International Labels

•The consumer shift toward more cost-efficient options is especially evident in the household appliance sector. Among the top 10 most discussed brands, only the last two are foreign, while the remaining eight are Chinese brands.

•The engagement levels among the top 10 brands in the home decoration and appliance sector are relatively even, indicating a more balanced competitive landscapecompared to other sectors.

Consumer Behavior Shift

Consumer Feedback Reflects Shift Towards Pragmatism During 618 Sales

Consumer feedback around major sales events has traditionally centered on complaints about complex discount mechanisms. However, for this 618 event, the focus has noticeably shifted to low motivation and willingness to make purchases.

“There are promotions, live-streaming every day on every channel; to be honest, I’ve become almost immune to sales events.”   — Female user based in Guangzhou

Key Summary of 618 Social Discussion

•618 hits a historic low with a 7% revenue dip, while JD & PDD excel in social discussions.

•Male audiences are increasingly engaged in 3C discussions, with Apple leading the way. Tier 1 Bilibilibloggers in the technology and electronics industry are flocking to Red

•Western beauty brands dominate social discussions, but Chinese brands excel in eComrevenue, indicating fierce competition and a nuanced consumer landscape.

•Outdoor & sportswear brands lead the apparel and footwear sector, with more Chinese brands gaining attention.

•Consumers are shifting towards more cost-efficient options, especially in household appliance sectors.

•Consumption downgrade and frequent promotions leads to a lack of enthusiasm for major sales events.

Our Team of Expert

WalktheChat is a marketing agency specializing in AI-driven social media marketing for luxury and premium brands. Our clients, including Louis Vuitton, Chaumet, Marimekko, Le Creuset, DeLonghi, PDPAOLA, Missoma, and Polene, rely on us for advanced marketing intelligence and customized strategies.

The post [Social Report] Are consumers getting numb about sales events like 618? appeared first on WalkTheChat.

Spend over 5 minutes on social media anywhere in the world, and you’ll see a funny video involving a cat (a “meme”). But in China, you’ll also see brands using such videos to grab attention Gen Z’s attention.

Meanwhile, cat meme content has shared the trend, “内耗不如发疯” (roughly translated as “It’s better to go crazy than to burn out internally”), which young people now prefer to embrace a “psychopathic” mental state. This shift reflects a broader trend of authenticity and emotional expression becoming more valued among young Chinese consumers.

How it all started…

The “cat videos” trend started in China around February 2024. A Japanese blogger published a cat “meme” describing his experiences in China. The videos got over 1.6 million views and gained over 200,000 followers in a week on Bilibili. Little Red Book followed quickly.

This start a craze of cat memes that grew exponentially month over month:

Soon enough, a “cat meme ecosystem” started to grow. Creators on Bilibili published guides and instructions helping users to create their own cat memes, growing the trend further.

It wasn’t long until brands tried to leverage the “cat memes” craze.

How brands jumped on the trend

Brands took notice of the cat meme trend and tried to benefit from it. At first, it was mostly used by small brands using an informal and relatable tone to gather attention.

The pattern was the following:

• The creator mentions working for a specific brand
• The creator introduces a workplace challenge assigned by their boss
• Describes the task as difficult or impossible
• Ask the audience for help by engaging with the post and following the account

Larger brands soon started to follow the trend. Here is one created by China’s largest logistics company SF Express, that gathered over 200,000 engagements. SF Express uses cat meme in a funny video to depict the excitement of a new employee’s first day at their Fortune 500 company, showcasing office highlights and innovative features.

Brands like L’Oréal, Biotherm, and Estée Lauder are promoting affordable products, such as primers and cleansers, using cat memes. They create scenarios where couples are giving these products as gifts, making the brand and its affordable products more relatable to young users.

Nestlé launched a new ice cream flavor with a video featuring a popular cat meme, garnering 34,000 engagements.

Brands start to build up emotional connect with Gen Z

The discussion of mental state has become increasingly popular on social media. The economic downturn and rising unemployment rate since COVID-19 have significantly pressured Gen Z. This has led to more exaggerated expressions of “going crazy”, with a trend towards celebrating an “unconventional mental state.”

And on Xiaohongshu, the posts related to mental state (精神状态) continuously gained over 48 million engagements in April 2024. 

The viral game “Electronic Muyu” has captured the attention of young people. The game features a virtual version of the traditional “muyu,” a wooden percussion instrument used by monks during meditation and chanting. Each tap on the screen mimics the rhythmic knocking of the muyu, displaying a “-1 worry” message. This simple yet engaging activity has become a trend among office workers and students alike, providing a playful outlet for stress relief and anxiety management. 

Although it may seem like an absurd action, this phenomenon precisely highlights the mental state of young people today: overwhelmed by social pressure and striving to avoid trouble by all means.

More brands are striving to emotionally connect with the younger generation. IKEA exemplifies this approach by fostering a strong bond with the youth community through humor-infused branding. They strategically place iconic dolls in unexpected locations to spark social conversations and enhance the store experience. A notable example is a plush toy pig lying on a grill with eggs beside it, creating a whimsical and humorous display that resonates with young shoppers.

Additionally, IKEA’s slogan, “Choose ‘good night’ and forget night shifts and late marriage,” directly addresses the pressures young people face regarding work-life balance and societal expectations about marriage. This approach makes the audience feel supported by the brand. IKEA’s ability to combine humor with a deep understanding of young people’s challenges sets them apart in creating meaningful connections.

Speed is crucial

In the first 30 days, over 50 brands engaged with young people using cat memes on their official accounts. The first ones that followed got a lot more reaction from the market.

Nestlé first cat meme ice-cream launch video received over 34,000 engagements in April, but a second video using a similar theme garnered less than 200 engagements in May. This 30-days gap highlights the significant impact of timing.

While a well-crafted story that incorporates brand features is important, the speed at which audiences switch their attention is the make-or-break factor.

In Conclusion

Understanding and engaging with Gen Z in China requires brands to be authentic, culturally savvy, and emotionally resonant. The use of cat memes and mental health themes demonstrates how brands can effectively connect with young consumers by tapping into popular trends and creating relatable content. 

However, it’s not just about applying a trending meme template and following the hottest discussion; it’s about building deeper connections with users. By staying attuned to the evolving preferences and mental states of young consumers, and by incorporating their feedback, brands can create impactful and memorable campaigns.

The post Brands start leveraging cat “memes” in China appeared first on WalkTheChat.

Female-oriented games are the new collaboration trend

“Otome game”, also known as the female-oriented game, is a type of romance simulation game originating from Japan. It typically features a female protagonist who engages in romantic storylines with male characters, though some games also include female characters as potential love interests.

Heytea, one of China’s largest bubble tea chains, collaborated with “Light and Night,” a popular dating-themed game targeting female players. This collaboration has proven to be Heytea’s most successful campaign this year:

• On opening day, stores in tier-1 cities had 800 to 1,000 orders waiting by mid-morning with 4 to 9 hours of waiting time
• Fans gathered in large numbers, many dressing up in costumes
• Some fans dressed up in wedding attire and waited in line for hours to take photos with a life-sized cutout, complete with “marriage certificates“

Anime Goods help to revitalize offline shopping

The term “Guzi” (谷子) is derived from the English word “goods.” It refers to merchandise related to manga, anime, games, and idols. Specifically, it includes items like badges, standees, keychains, posters, dolls, and decorative items with anime or game character themes.

The Shanghai collaborative pop-up store between Chinese discount retailer Miniso and Japanese manga and anime series Chiikawa sold CNY2.7 million (USD370,000) of goods in 10 hours on opening day.  On Xiaohongshu, people said that it was common that they needed to wait in line for 1 hour to get into the shop.

Meanwhile, Xi’an Intime Mall successfully held promotional events with many cosplayers in Anya’s signature look. Anya Forger is from the popular anime series “Spy × Family”. The iconic look is matching pink wigs, black dresses adorned with gold trim, and black shoes.

The event attracted crowds who were actively taking photos and videos. User-generated content went viral online, bringing huge foot traffic to Xi’an Intime Mall. The Mall has become famous for catering to anime enthusiasts. Many people take Xi’an Intime Mall as a popular destination similar to Akihabara in Tokyo.

Brands that embrace anime culture can help to revitalize traditional retail spaces. Stores selling anime merchandise attract significant foot traffic, transforming struggling malls into bustling shopping destinations.

In Conclusion

Brands should put more effort into understanding and respect when collaborating with anime culture to succeed. Heytea exemplified this by introducing characters in order of their appearance and training staff to fully know each game’s characters’ backgrounds.

The key to successful collaborations lies in the brand’s attitude. Audiences value respectful and sincere engagement. When anime players perceive a brand’s genuine effort, they are more likely to support and purchase from it.

The post Brands are Embracing Anime Culture in China appeared first on WalkTheChat.

1. Xiaohongshu stores are booming: 6.9x YOY in GMV for Xiaohongshu stores and a 4.2x YOY increase in GMV from live-streaming sales in 2023.
2. Foreign brands are required to localize their content more extensively, driven by a surge in national pride post-COVID
3. Engagement rates are higher on Xiaohongshu than on Instagram; in Q2 of 2024, the average comment-to-like ratio was 8%, compared to Instagram’s 2%. Brands can utilize the rich feedback from comments for understanding niche and affluent groups, offering detailed consumer feedback and enabling effective crisis management.

Learn more about the complete Little Red Book marketing guide here.

Trend #1 Zoom: Xiaohongshu stores are booming as live-streaming picks up

Xiaohongshu has been rapidly expanding its live-streaming e-commerce capabilities as part of a significant pre-IPO effort. In April 2024 compared to the same period last year：

• A 5x increase in brands starting official account live-streaming
• A 12x increase in customers placing orders during these live sessions
• A 7.4x rise in the number of brand stores achieving over 1 million RMB in sales

For the upcoming 6.18 shopping festival, the platform is offering over 0.1 billion RMB in discounts and increased traffic for Red store brands, further emphasizing its commitment to growing its e-commerce segment.

Celebrity live-streaming

The platform’s live-streaming success is largely driven by celebrity influencers who, despite having limited shows, generate impressive sales figures.

For instance, Dong Jie and Zhang Xiaohui, both prominent figures on Little Red Book, achieved average gross merchandise value (GMV) per live-stream of 43 million RMB and 78 million RMB, respectively. These influencers focus on high-value products such as fashion items and skincare sets, which resonate well with the platform’s user base.

However, these Red superstar live-streamers are celebrities, not full-time live streamers, thus their livestreams are rare. For instance, Zhang Xiaohui only did one streaming in the past 3 months, while Douyin’s top celebrity Luo Yonghao’s account had 131 shows in one month. Despite the limited number of shows, these celebrities drive high engagement and sales due to their star power.

While top Red live-streaming influencers are achieving results comparable to those on Douyin, such influencers are rare. On a normal day, fewer than 20 live-streamers on Little Red Book manage to achieve over 100,000 RMB in sales. While on Douyin this number on any given day is way over 100 influencers.

The average order value on Little Red Book is potentially 2 times as high compared to Douyin, emphasizing the platform’s focus on premium products. This makes it an attractive channel for brands looking to market higher-end items.

Brand’s official live-streaming

Brands like Fabrique have started to leverage official live-streaming, beginning in March 2024.

Launched only two months ago, Fabrique’s Xiaohongshu live-streams have already achieved significant traction. In April alone, sales from Fabrique’s official live-streaming on Little Red Book reached 16% of their Tmall sales.

While Little Red Book’s official live-streaming sales currently represent only 9% of Douyin’s overall store sales, there is strong potential for growth.

Tmall typically performs well during traditional e-commerce holidays such as 3.8, 6.18, and Double 11. However, during “off-season” months like April, total sales from social media platforms Douyin and Little Red Book can account for up to 65% of total sales (49.8% for both months). This highlights the potential of social commerce for premium fashion brands, demonstrating that social media channels can significantly boost sales outside peak shopping periods.

Trend #2 Zoom: foreign brands need to localize content for Chinese audiences

In light of the rising wave of nationwide patriotism post-COVID, foreign brands now need to localize their assets more than ever to resonate with cultural norms and nuances.

Luxury brands such as LV and Lewoe are taking a more aggressive China-localization approach in 2024.

To celebrate the Chinese New Year of 2024, LOEWE collaborated with three jade carving masters to create three limited-edition jade pendants (Jade is highly in line with Chinese preferences). Drawing color inspiration from six ancient Chinese jade carvings, LOEWE launched 6 new colors for the Flamenco Mini handbag and invited the global ambassador Yang Mi to shoot branding assets.

The success of Arc’teryx’s localization in the 2024 IWD (International Women’s Day) campaign lies in its deep understanding of its audience. The brand integrates the concept of “softness” with strength in its marketing, resonating profoundly with outdoor enthusiasts who appreciate both the delicate and powerful aspects of nature. 

This approach not only highlights the product’s functionality but also connects emotionally with viewers by reflecting on their personal experiences and values. Compared to previous content, this campaign gained huge engagement and brought social buzz to the brand.

Fendi collaborates with Yi (ethnic minority) artisans: strengthening brand ties to local culture, they also selected a temple as the offline exhibition venue and inviting Yi ethnic craftsmen for live embroidery demonstrations enhances the cultural experience.

AI could play a pivotal role in tailoring global brand assets to resonate with local Chinese cultural nuances. A case study from WalktheChat demonstrates this strategy with Le Creuset’s marketing adaptations for the Chinese New Year and the Dragon Boat Festival. By deploying AI, brands can swiftly modify their global campaigns to appeal to Chinese aesthetic and cultural preferences, enhancing engagement and market relevance.

This is another of WalktheChat’s showcases of AI localization. We helped to put Polène’s Series Eight handbags in a Chinese-style setting, incorporating culturally resonant elements such as Chinese bonsai and motifs reminiscent of dim sum and dumplings. This demonstrates how brands can deeply engage with Chinese culture, blending traditional elements with contemporary design to resonate with local consumers.

Marimekko launched a 60th-anniversary celebration campaign in Shanghai, creating an engaging campaign with the famous Shanghai landmark.

Marimekko’s Unikko Foreveer Pop-up event in Shanghai. Video created by WalktheChat. This asset got over 1 million likes worldwide

Trend #3 Zoom: Leveraging Little Red Book’s Engagement for Deep Brand Insights

Little Red Book’s community engagement significantly outshines Instagram, with an 8% average comment-to-like ratio in Q2 of 2024, compared to Instagram’s 2%.

Comments on Little Red Book offer brands a goldmine of information, especially useful for understanding niche and affluent groups. For example, an analysis of 2,000 posts from Tesla drivers taking road trips during the national holiday provided detailed feedback on their experiences.

In contrast, BYD drivers frequently discuss issues related to maintenance and battery performance. This stark difference underscores Little Red Book’s potential as a crucial resource for brands seeking actionable and detailed consumer feedback.

Little Red Book also serves as a critical platform for crisis management. Brands can effectively monitor and analyze user sentiment, identifying emerging issues swiftly and accurately.

For example, by using WalktheChat sentiment analysis tool Doris, here is the Messi HK crisis visualization to understand the root causes of negative reactions. By analyzing 50k comments, we get a much clearer picture of the anger is coming more from lack of fan engagement than economic impact on fans.

Little Red Book comments are like a gold mine of authentic users’ feedback. It allows companies to proactively address concerns, manage public relations issues, and mitigate potential damage to their reputation. By visualizing user emotions and the underlying causes of dissatisfaction, companies can strategize more effectively, ensuring swift and appropriate responses to maintain consumer trust and loyalty.

Conclusion

Little Red Book’s evolving landscape presents a unique opportunity for brands to tap into China’s dynamic market by leveraging booming live-streaming sales, embracing extensive localization to align with cultural nuances, and utilizing high engagement rates to gather rich consumer insights. By strategically incorporating these trends, brands can significantly enhance their presence, drive growth, and maintain a competitive edge in 2024 and beyond.

The post 3 Trends of Little Red Book Marketing in 2024 appeared first on WalkTheChat.

It captivates a wealthy, young urbanite audience, making it a key destination for luxury and premium brands.

Little Red Book (Xiaohongshu) Overview

Little Red Book mainly targets a specific user group: young, female shoppers living in top-tier cities.

In 2024, Xiaohongshu’s Monthly Active Users(MAU) continuously increased, surpassing 300 million, with approximately 50% of Generation Z users and 50% from 1st and 2nd cities. The platform boasts over 80 million community sharers, with User-Generated Content (UGC) making up 90% of its content.

Little Red Book content has a strong focus on premium position brands, and content containing popular overseas brands usually can get stronger engagements.

Little Red Book’s design is very similar to Instagram: 3 to 6 pictures, with text descriptions usually between 20 to 200 characters. The content style on Little Red Book is usually persona, often with lots of emojis. The distribution of content is algorithm-driven. Users can engage with content via like, bookmark, share, private message, and comment.

Little Red Book’s brand marketing impact

Little Red Book plays an important role in the consumer purchasing process.

• Awareness: Little Red Book is a great channel to discover new brands.
• Interest & Desire: Little Red Book will continue to push relevant content based on users’ browsing habits. It’s a good channel to create multiple consumer touchpoints. Before users make a purchase, some users will open Little Red Book to read product reviews.
• Action: When making a purchase, usually users will go to e-commerce platforms such as Taobao, Tmall, JD.com, and Pinduoduo. Although Little Red Book has a native store system, the majority of brands choose to open stores on marketplaces where they could get more traffic.
• Loyalty: After converting a user into a customer, WeChat Official Account and WeChat groups are the best channels to create a closer relationship with customers. And when you have a loyal customer who would like to share product reviews and advocate for your brand, they could post comments on Little Red Book.

Little Red Book marketing limitations 

Compared to WeChat and Douyin, Little Red Book is a much smaller social media channel. The user demographic is also very skewed toward female and top-tier city users.

The top industries that are promoted in Little Red Book are skincare, baby care, and health and wellness. However, Little Red Book is not the perfect choice for industries like games and 3C (Computer, Communication, and Consumer Electronics).

Below is the amount of promotional posted on the platform in a month, it’s a good indicator to judge if Little Red Book is the right marketing channel for your brand.

Little Red Book Store

Little Red Book has a native e-commerce system. It has a few benefits:

• It enables users to make a purchase without leaving the App
• It supports cross-border payment and shipping, brand can operate a store with an overseas business license (with a Chinese entity as the guaranteed party, email info@walkthechat.com to learn more)
• Low cost: 5% platform commission & no technical fee
• Good user experience especially for Little Red Book live-streaming purchases

The commission on Little Red Book is much lower compared to major marketplaces. Comparatively, Tmall charges a 9,000 USD annual technical fee and a 6 % commission (1% for Alipay and around 5% industry-specific commission). Tmall still rules as it’s the largest e-commerce marketplace in China.

Should you open a Little Red Book store?

Little Red Book store is not for everyone.

Lots of large brands including Adidas, SK-II, and LANCOME, actually don’t have a brand store. Instead, these brands choose to sell on Little Red Book via distributors. You won’t need to have brand Red Store if:

• The brand already has a strong distribution network
• If the brand has less than 5k Little Red Book mentions

For other brands, the Little Red Book store is a cost-effective way to break into the Chinese market and expand the sales channel. You can consider opening a brand store on Little Red Book if:

• You have a strong Little Red Book performance
• Your brand does lots of Little Red Book live-streaming campaigns
• You sell mostly direct-to-consumer (D2C)
• You’d like to test the Chinese market with small investment and with a cross-border store

For example, Perfect Diary and apm MONACO are some of the best performing brands on Little Red Book. Both brands have a strong D2C channel.

On the other hand, a foreign brand can create a cross-border Little Red Book store to test the Chinese market. It doesn’t require a brand to have a Chinese business license, products could be shipped directly from overseas, and payment will be smoothly settled in foreign currencies.

Cosmetics, fashion and skincare brands are the best industries to launch stores in Little Red Book. These are often the high margin products that could easily afford a 20%-30% live-streaming commission.

Little Red Book Live-streaming

According to our source who worked at Little Red Book, 90% of Little Red Book sales come directly from live streaming.

Live-streaming is a very effective way to target sales conversion.

Xiaohongshu, commonly known as Little Red Book, is rapidly expanding its live-streaming e-commerce capabilities in preparation for its upcoming IPO. As of April 2024, compared to the same time last year:

• There has been a 5x increase in brands starting official account live-streaming.
• Customer orders during live sessions have surged by 12x.
• The number of brand stores achieving sales over 1 million RMB has risen by 7.4x.

For the 6.18 shopping festival, Xiaohongshu is offering discounts exceeding 0.1 billion RMB and increased traffic for Red store brands, reinforcing its dedication to growing its e-commerce sector.

The Role of Celebrity Live-Streaming

Celebrity influencers play a pivotal role in Xiaohongshu’s live-streaming success. Even with limited appearances, they generate significant sales.

Dong Jie and Zhang Xiaohui, for example, have achieved average gross merchandise value (GMV) per live-stream of 43 million RMB and 78 million RMB, respectively. These influencers primarily promote high-value products such as fashion and skincare, which align with the preferences of Xiaohongshu’s audience.

Despite their sporadic live-streaming schedules, these celebrity influencers drive high engagement and sales due to their star power. Zhang Xiaohui, for instance, has only streamed once in the past 3 months, compared to Douyin’s top celebrity Luo Yonghao, who hosted 131 shows in a month. Although fewer in number, these celebrity live-streams on Xiaohongshu produce impressive outcomes, contrasting with Douyin’s more frequent high-performing streams.

The average order value on Xiaohongshu is nearly double that on Douyin, emphasizing its premium product focus and attracting brands looking to market high-end items. The best-selling products on Red live-streaming are usually premium fashion and skincare products. While Douyin live-streaming is best for cheap skincare, cosmetics, F&B and electronics.

Brand Official Live-Streaming: Case Study of Fabrique

Brands are increasingly leveraging Xiaohongshu’s live-streaming platform. Fabrique, a retailer of affordable designer clothing, began its official live-streaming in March 2024.

In April, Fabrique’s live-streaming sales on Xiaohongshu reached 16% of their Tmall sales, with an average order value of 1100 CNY.

While Xiaohongshu’s official live-streaming sales are currently only 9% of Douyin’s overall store sales, there is significant growth potential. In off-season months like April, sales from social media platforms such as Douyin and Xiaohongshu can account for up to 65% of total sales, illustrating the power of social commerce, particularly for premium fashion brands.

Little Red Book live-streaming could also effectively promote a brand.

We launched Rouje in the Little Red Book, the content was pushed to the top of the Red page, and the brand is able to grow to 41k followers in just 2 months. Comparatively, a large brand like Pandora which operates in Red for years only has 50k followers.

Live-streaming with one of the top fashion influencers Lu plays an important role in pushing Rouje viral. Lu did a live-streaming for Rouje after the brand launched. It’s also a continuous mention of the brand. Lu posted 2 live-streaming previews, and 5 follow-up videos after 2 weeks for continuous exposure.

Sales conversion on Little Red Book store

The major drawback of the Little Red Book store is it has little organic traffic.

Most users still use Little Red Book as a social media and product review platform. Most users will switch to a marketplace to make an order. According to Quest Mobile, after uses close Little Red Book, 77.1% of the e-commerce purchase goes to Taobao. Thus brands with Tmall flagship store don’t have strong need to open a Little Red Book store.

Little Red Book influencer strategy

A typical Little Red Book influencer spending schedule looks like this:

Display ads: used to promote the most popular influencer post, expand the reach. 10-15% budget allocation.

Gifting/seeding: lots of micro-influencers accept product seeding, it’s a very effective way to work with a large number of influencers with a small budget. 20-30% budget allocation targeting tier 4 influencers with average post view below 10k. Agency and MCN companies provide gifting and seeding services, price ranges between 50 to 150 USD per micro-influencer depending on quality and size. Contact info@walkthechat.com to learn more on product seeding services.

Influencer campaign: larger influencer and more promotional content will require payment. A pyramid style is the most typical model, often working with top tier influencers (10k USD per influencer), then more influencers in tier 2 and tier 3. with 50%-60% budget allocation.

This allocation structure enables brands to work with the most amount of influencers during campaigns. It’s common to work with 50-200 influencers during a couple of weeks for a campaign. Some of the most popular content is created with micro-influencers, thus playing numbers games increase the chance of producing the best content.

Brands could targe a few product/brand-specific keywords during the promotional campaign, thus create a trendy keyword to further attracts traffic.

Recently, Little Red Book launched a new feature: “guaranteed” exposure for sponsored content to help brands and advertisers reach their expectations while working with influencers.

How to find Little Red Book influencer?

Pugongying

Little Red Book provides an official Key Opinion Leader (KOL) platform called Pugongying.

Pro:

• It’s actuatly displays the influncer’s cost
• You can use the platform to find influencers by industry, tags, follower demographic, and price
• It’s the official channel to place an order with KOL

Cons:

• Pugongying charges 10% service fee.
  Little Red Book encourages all KOL collaboration to go through Pugongying, otherwise the post could risk being blocked or limit in traffic distribution. Although brands often take the risk by working with influencers directly to save the 10% platform fee. If the content looks native and personal, it could often fly under the radar. Around 90% of campaign in cosmetics industry goes through Pugongying, and only around 50% of campaign in fashion industry goes through Pugoingying since the content could look more native.
• Some influencers and celebrities are not listed on Pugongying if they do not have an official agreement with Little Red Book.
• Limited level of search query compared to Qiangua

Qiangua

Qiangua is a 3rd party social monitoring platform for Little Red Book.

Pro:

• More search options. For example, it could filter influencers by more specific tags
• More influencers are listed on Qiangua
• Easy to tell amount of active followers, judging by the engagement rate of the content
• Able to give a reasonable estimate cost of an influencer. This could be used as the benchmark against the real price.

Con:

• It cannot display the actuarte price of an influencer.
• Some of the features requires a paid account, cost start from 250USD per month

Influencer seeding process

Seeding means gifting products to influencers in exchange for free posting. It’s an important Little Red Book marketing method. Here is why brands should do product seeding on Little Red Book:

• It is the most cost-effective way to work with influencers and celebrities
• It’s a good way to build a strong relationship with influencers, we suggest brands gift high-quality influencers during every new product launch
• Seeding is a good way to measure the impact of an influencer before official collaboration
• Seeding could increase consumer touchpoint, especially if an influencer is willing to share your brand multiple times
• Influencer seeding is a market survey to define your hero product. The most popular picked product by influencers could be the hero product of the season
• Does not limit to the size of the influencer

This is our seeding process:

For many seeding products, the influencers and celebrities will not include a sales link in the post. Thus using the brand’s social media account to engage with the post as soon as the post is released is the key to bring tangible sales/marketing impact to the brand.

Another key is to reuse the pictures and videos created through seeding. Not directly because seeding photos usually don’t have commercial use copyright. Using other personal accounts to comment under a product or posting on social media is a great way to repurpose the content.

We usually mostly focusing on the quality of the photoshoot during seeding, instead of designing the user conversion path like what we will do in a paid influencer campaign.

Depending on the goal of the brand, we will have different seeding strategies.

Market entry seeding survey

During the first month of brand/product launch, we often seed high-quality and median-size KOL. The goal is to ask the KOL to choose their favorite products, thus giving feedback to the brand which is the most potent product in their Lookbook.

Monthly seeding to product content and create branding

Vitaly is creating great localized content with musicians and rock bands via product seeding on Little Red Book.

Hunter Boots gifts out at least 4k USD worth of products per month, and in exchange KOLs is able to create over 20k USD worth of marketing posts. A sweet deal to create amazing content while minimizing the marketing cost. Especially the product cost is usually a small percentage of the retail price.

Micro-influencer seeding

For skincare brands, cosmetics, health supplements, F&B, or electronics, we will target the micro-influencers, often with around 1000 followers. It’s a lot more difficult to get free product seeding with brands in these industries because if it’s not a product that could fit in with the KOL’s outfit, it will appear a lot more promotional to post this content. Instead, brands can pay a small amount (usually between $30 to $100) to individuals on Little Red Book in exchange for guaranteed posting. The goal will be to focus on the quality of photos and videos. Since if the content quality is high, it’s still possible for a post to go viral even if it’s a small account.

Celebrities seeding

Working with showrooms and stylists is also a great way to work with celebrities. Celebrities often borrow products to style in a photo shoot or going on a TV shoot. Usually, the stylist or showrooms will borrow a lot of products from brands. If we are lucky, brands could get free exposure.

Below are celebrities that wear products seeded by WalktheChat.

These celebrities usually charge between 80k USD to 140k USD for posting just one promotional content. Although they will not post-seeding brands, the fans will usually post on Weibo. In this case, it’s crucial for the brand to use its own official account to engage with the fans.

Note all the collaboration photos and videos are Copywrite protected. The brand is able to use these photos to post on social media channels. However, these photos could not be used in the e-commerce store, or as display ads material.

A smart way to use these copyright-protected photos is to post under product review using a personal or KOL account. This way brand is not directly using these photos, but the content gets to be distributed widely.

Jewelry, shoes, and clothes are easier to be picked for celebrity’s stage styling. Bags, cosmetics, and sunglasses are usually a bit harder. Some other categories such as skin care products are almost impossible for seeding. Consult info@walkthechat.com to learn more about if celebrity seeding is the right service for your brand.

Little Red Book Influencer campaign

Little Red Book influencer campaigns often target building brand awareness and creating engagement. It’s difficult to track the sales conversion from the Little Red Book platform, however, a good campaign can create strong purchase intention, and directly impacting sales.

Unlike seeding which we mostly focus on the quality of the content, when it comes to paid influencer campaigns on Little Red Book, we have much stricter selection criteria.

1. Strong engagement ratio

The engagement ratio is an important indicator demonstrating how active is the KOL account. The influencer profile page shows the total follower amount and total engagement amount. The higher ratio the more engaging are the followers, thus more likely to respond to promotional content. We usually only work with influencers that have a ratio higher than 2.

Engagement ratio = Engagement amount / Followers

2. Identify the real KOL

Little Red Book has quite a lot of fake account and zombie followers.

A real KOL usually receive comments from real users. A real comment usually contains specific product information. The user name and profile picture should also look like a real person.

Another way to check if the influencer has fake followers is by using Qiangua, a 3rd party App. It can provide an estimated % of the active follower of an influencer and % of zombie followers.

We usually choose influencers with over 50% of active followers.

Zombie followers are defined as followers who started to follow the influencer in the last 90 days, and who do not have any activity on Little Red Book. Usually, we choose accounts with less than 20% of zombie followers.

3. Average post engagement should be over 200

For mid-tier and top-tier influencers, it’s important to choose influencers that have strong daily engagement. Internally we prefer influencers with over 200 post engagement, these are often the influencers with strong follower loyalty.

Note for smaller influencers, it’s common to have a very uneven engagement performance across content. Smaller influencers are also more likely to agree to work on seeding basis.

4. Strong follower growth in the last 3 months

In the Pugongying backend, you can monitor the follower growth curve. Make sure the influencer you choose is active in the last 3 months. If the influencer is trending, it will boost campaign performance.

5. Follower demographics

Pugongying also shares the follower demographic. You can compare it with the brand’s own follower demographic to find a good match.

6. Influencer campaign social monitoring

An effective way to choose influencers is to monitor the competitor’s influencer campaign performance. Qiangua enables you to export brand keywords, this way it’s easy to sort through the best performing influencer campaigns of your competitor. You can choose only to work with the influencer with the strongest engagement.

This is export file could contain information such as engagement performance, follower amount, influencer location.

We also suggest brands monitor their own influencer mention. Especially if your brand has a large amount of organic user-generated content. This could help you to identify the most influential customers, and brands could reach out to these fans. Either to gift new season products or to make them the brand ambassador.

Things to do during an influencer campaign

Once you’ve identified the right influencer, it’s important to apply the same checklist that creates great Little Red Book content:

1. Choose the right cover picture
2. Match the content with the influencer’s personal style
3. Make sure throughout the campaign, target 1 or 2 keywords that’s both memorable and specific
4. Monitor the campaign for any viral content, make sure to use display ads to amplify the best performing posts
5. Make sure to communicate with the influencer on posting time, use the brand’s official account to engage with the influencer as soon as the content is posted to attract traffic to the brand’s account
6. If performance is not as expected, communicate with the influencer to try to get more resources. Usually brand can ask for a repost or some soft-exposure

Little Red Book Advertising

In some ways, Little Red Book ads work just like Instagram.

We suggest promoting the best performing content, ads can further enhance the reach to achieve the best result.

However, when it comes to targeting and retargeting, Little Red Book’s advertising system is nowhere as sophisticated as Instagram:

• Little Red Book offers only limited level of targeting category (less than 20 interest groups!)
• No way to retarget or track followers
• No integration with an other platforms, data is limited
• Only 3 types of ads format
• Traffic is also limited since Red only has 100 million monthly active users (WeChat has 1.2 billion)

Due to the limitation, ads are only a supporting feature for brand marketing. Thus we recommend spending no more than 15% of the budget on Little Red Book ads.

3 types of Little Red Book Ads

Newsfeed ads for personal account

These are the only ads available for personal accounts. It’s called Shutiao (薯条). Personal ads are more expensive compared to brand ads. For example, CPM could be 11 USD, almost 5 times more expensive compared to brand ads. Personal ads also only enable leading traffic to a personal account. The upside is Shutiao will not display as “promotional” content, so the content could appear more native.

Newsfeed ads for brand account

Brands can place newsfeed ads on Little Red Book.

Here is the average price for different industries (CPM/USD) as of June 2021:

• Beauty 2.5  
• Cosmetics 2.8
• Mother & baby 2.5
• Fashion 1.9
• F&B 2.2

This is cheaper compared to other channels, Douyin’s CPM is around 3 USD while WeChat Moments Ads could be over 15 USD.

The average click-through rate on Red is strong, between 2% to 5% depending on the industry.

Newsfeed ads have relatively larger traffic compared to other types of ads on Little Red Book. Thus we recommend allocating 70% of your ads budget to this.

The biggest issue with newsfeed ads is the lack of specific targeting options. Brands can only choose from less than 20 interest groups, and the groups are very general. For example, under fashion outfits, users are only separated into 3 categories: All, clothing, shoes & hats.

It’s just embarrassing how amateur the Little Red Book ads backend looks.

Since targeting is broad, ads optimization on Little Red Book is all about optimizing the asset. Make sure to have an attractive title with trendy keywords, and make sure the cover picture is right.

Keyword Search Ads

This is the only type of ad on Red that enables brands to be more specific in targeting since you can bid on keywords.

It’s generally more expensive compared to newsfeed ads. Here are some cost benchmarks in different industries as of June 2021 (CPM/USD):

• Beauty 13
• Cosmetics 17
• Mother & baby 8.7
• Fashion 2.3
• F&B 3

However, due to traffic limitations, it’s not easy to spend with specific keywords. For example, we are only able to spend around 100 USD on the keyword “rain boots” per day.

How to Create Little Red Book Content

Little Red Book is a great channel for medium to long-term marketing plans. Content has a longer lifespan compared to WeChat.

Many Little Red Book post still gets traffic after 1 month. The amount of exposure a post gets is determined by algorithm, which has to do with keywords and the post engagement score.

Comparatively, WeChat’s content lifespan is shorter: usually under 7 days. Content is only pushed to WeChat official account followers, so it’s hard to get organic traffic.

6 ways to increase content performance on Little Red Book

Follow the hot topics and AI trends

The integration of AI in advertising has revolutionized the industry, allowing brands to expand the boundaries of creative planning with AI’s involvement. 

Brands on Xiaohongshu are using AI-generated CGI to create eye-catching ads that blend virtual and real elements. 

This approach sparks discussions, increases brand visibility, and enhances the user experience. By integrating AI into advertising, brands are pushing creative boundaries, making CGI a popular choice for engaging and innovative campaigns.

WalktheChat continuously invests in the latest AI technology and explores emerging trends to ensure brand content remains at the forefront of digital innovation. WalktheChat helped Marimekko to launch its first CGI content on social media. The creative perfectly aligns with the brand’s identity, goals, and audience needs, ensuring content is not only engaging but also deeply resonant.

Choose the right cover picture

Cover picture will strongly impact the click rate of your Little Red Book content.

A clear product picture usually works better compared to a blurry product picture. A picture that looks like it was taken by a real customer can also attract more clicks.

Localized content usually performs better on Little Red Book. It’s a community, thus people prefer genuine content to professional commercial content, such as a professional-looking caucasian model shoot.

A good method to create localized content is by gifting products (instead of paying) to influencers and letting them post content. In general, we find a lifestyle photo will often perform better than a professional model shoot.

Sometimes it’s a bit random, don’t worry, keep testing

You can post an unlimited amount of content in a day, so brands can test out different types of content. In general, a brand account would post 1 or 2 posts per day.

Below are 3 pieces of very similar content, all about matching tips for shoes. We optimized the keyword in the 2nd post, including adding the word “business casual”. The 2nd post performed 20 times better than the first one. We also took a similar approach for another account, and the post went viral.

It’s hard to tell what exactly makes a viral post on Little Red Book, but brands should also keep testing out different content styles. Copying the best-performing content in your industry is not a bad start.

Tip: content sometimes becomes viral due to promotional events. It’s much likely to create viral content when the brand is simultaneously running an influencer campaign.

It’s like a search engine, make sure to optimize the keyword, and avoid censored keywords

Little Red Book content is algorithm-driven, the performance is strongly connected to search volume and post engagement. Thus optimizing the keywords in your post title is a shortcut to success.

First, do research on the best-performing content in your industry. Below is a research we did before working on a French shoe brand. We use keywords like “French style”, “shoes for men”, and “leather shoes”. You can record the top-performing post titles in the last 3 months.

These titles give the best examples of types of content that work best in your industry. You can reuse some of the keywords, and try to create similar content. Examples of good Little Red Book titles are:

• How can short people choose outfit to look skinny and elegant?
• 8 beige colors for French sandals recommendation this summer

Just like a search engine, Little Red Book’s trendy keywords change all the time, impacted by the number of search queries and the popularity of top-performing posts.

Keyword ranking = Number of search queries X Engagement of top posts containing the keyword

You can use 3rd party keyword monitoring tool to find the top ranking keyword in your industry, and use these keywords in your Little Red Book content. The tool we use is called Qiangua. It’s a paid service costing around 500USD per month. For example, the top trendy keywords in the fashion of the day are: OOTD, work outfit, whiten skin, skinny outfit.

Copywriters also need to avoid censored words and forbidden words. These words will impact the traffic.

Words could be sensitive due to many reasons. For example, the Chinese advertising law forbade the use of “best”, “No. 1”, “most” to avoid misleading content. Any political words could cause your content and even the account to be blocked. Any indication of trying to redirect traffic to other platforms, such as WeChat or Taobao is sensitive enough to block the spreading of your traffic.

Here is a free tool to check which are the sensitive or forbidden words in your content: http://ci.lingke.pro/

Lucky draw could bring traffic fast

Little Red Book has an official system for brands to launch lucky draws. Users could participate by following, bookmark, and like the content in order to win a gift. It’s a very good way to quickly push a new account to a larger audience.

The first participating users are usually low-quality users who are only in for the gift. But as more users engage with the lucky draw post, it could easily go viral and eventually reach your target consumers.

For Vitaly, a Canadian jewelry brand, a lucky draw was able to bring over 600 new followers. And since the lucky draw prize is a 500 RMB gift card for its cross-border WeChat Mini Program, the brand also draws attention to another sales channel.

DeMellier is a niche bag brand that just entered the Chinese market. The lucky draw attracted over 2,000 new followers. For a new account, this is quite significant. Over 500 users who were attracted by the luck draw asked how to buy the product.

Since WeChat and Tmall are sensitive words on Red, we used private messages to share the sales channel with the users. The prize was a newly launched bag: a free product is usually more attractive compared to a gift card.

Conclusion

Little Red Book is a great platform for brand marketing and creating multiple consumer touchpoints. Red content can be manipulated via specific tactics just like SEO. An influencer campaign is the most effective way to drive traffic and convert sales. We suggested only a moderate amount of ad investing. E-commerce conversion happens via live-streaming and directing traffic to other marketplaces.

Mastering Little Red Book marketing could be the key to quick raise in the Chinese market.

Other information on Little Red Book 

What is Little Red Book (Xiaohongshu)?

Xiaohongshu, encourages a “safe space” for like-minded consumers to write reviews and share their shopping experiences good or bad.

The App contains an “Explore” section enabling to explore user’s content on topics such as fashion, food and travel. However, the most popular category on the App remains beauty & cosmetics.

The App is often used when a user is investigating a new cosmetic product they would like to try, and are curious about the experience of other customers.

The App also as a “Nearby” section that users can use while traveling. While on business trip to Hong Kong, Little Red Book would point me to food, experiences or shopping opportunities around me.

When reading a post, users usually add “hyperlinks” to the page of the brand which can contain an e-commerce section. There can therefore be a smooth transition between content consumption and e-commerce.

Xiaohongshu change from a social platform to an e-commerce platform

Before becoming today’s social and e-commerce hybrid, Xiaohongshu started out as a drafting tool for Chinese users to make fashion and beauty shopping lists before traveling overseas, with an interface similar to Pinterest. Essentially, it was just a content sharing platform, targeting Chinese shoppers’ unmet desire of discovering and sharing shopping experiences.

Having accumulated a huge amount of social and consumption data from a largely urban female user base, Xiaohongshu has since developed a closed shopping cycle on the cross-border sale of luxury items.

Instead of choosing a marketplace model like most Chinese e-commerce sites, Xiaohongshu maintains partnerships with foreign brands and keep their own inventory for added quality assurance, shipping directly to users from their warehouse.

Xiaohongshu may be the best platform for shoppers to reach a large group of like-minded individuals, who are most likely to engage with their posts (known in the app as Shopping Notes).

Users don’t have to make their personal experience completely public (like on Weibo, China’s Twitter), or visible only to a closed circle like on WeChat. On Xiaohongshu, Shopping Notes are written by and shared with a relevant crowd that also enjoys and are eager to get informed about shopping and lifestyle.

How little is Little Red Book (Xiaohongshu)?

Little Red Book is one of the largest and fastest growing social e-commerce apps in China. The women-focused shopping platform, co-founded in 2013 by Charlwin Mao and Miranda Qu. Xiaohongshu is now:

• Valued at USD 3 billion in its Series D round June 2018
• Supported by the most prestigious investors including Alibaba, Tencent, Genesis Capital, ZhenFund and GGV Capital
• Over 100 million registered users
• 30 million monthly active users, a 40% increase in end of 2017

Xiaohongshu was ranked as the #1 App in the cross-border e-commerce App category with 15.4 million MAUs during Black Friday 2017  according to Analysys. The #2 App Kaola only had 5.3 million MAUs during the same period.

According to a different source, iiMedia, Xiaohongshu makes up for 5.6% of the total cross-border e-commerce market. Notice it’s one of the only platforms that’s gaining more market share in Q1 2018.

Xiaohongshu’s user demographics

In a nutshell, most Little Red Book users are post-90s urban females who value quality, with relatively high consuming power, and premium taste.

It’s one of the fastest growing e-commerce platform.

According to Qianfan, Xiaohongshu has a predominantly female audience (88%). It also has a rather young population: more than 60% of its users are 30 years old or younger.

57% of the users live in top-tier cities, the traditional centers of wealth. In fact, a closer look at their spending behavior reveals a large proportion of the users have relatively high consuming power.

This makes the platform the ideal channel to target young, affluent female shoppers that have the intent and ability to consume branded products.

User content that informs purchase decisions

High-quality shoppers demand high-quality pre-purchase information. Driven by candid product reviews (aka Shopping Notes), authenticity is at the core of Xiaohongshu’s user posts.

It is like an illustrated textbook that teaches you to shop (covering such topics as which up-and-coming brands you need to know, how to spot fakes and the best time of the year to shop for the best deals etc.)

Users can make purchases through a shopping note, ensuring a smooth and efficient shopping process that takes place entirely within the platform.

To maintain quality and effective communication, Xiaohongshu’s recommendation algorithm encourages users to interact with topics they are interested in. Profanity, explicit self-advertisement and verbal abuse are all effectively censored.

Also, it is worth noting that there is no forwarding or sharing features on Xiaohongshu. Users can like, comment on, and add Shopping Notes to their own collection.

This in a way prevents users from getting spammed, and to let Little Red Book organically push to users the content they believe will be most relevant and useful to them.

Celebrities’ favorite sharing platform

Xiaohongshu is one of celebrities’ favorite social media platforms in China, and there are plenty of stars sharing their latest shopping picks and lifestyle hacks there every day, mixing snaps of their not-so-glamorous side of life.

Consumers feel like they share an intimate bond with celebrities through their personal, light-hearted Shopping Notes. This has created a unique UGC (user-generated content) circle made up of well-known influencers with a massive following.

On a platform like Xiaohongshu, celebrity endorsements come with a special authenticity. Fan BingBing is a classic case of quality over quantity. Dubbed “queen of sales” on Chinese social media, she once brought down the server of Xiaohongshu after endorsing a beauty product on the platform.

Currently, with 9.9 million followers on the platform, every face mask she ever endorsed on the platform is reported as sold out. Even the actress joked about quitting the platform, so she can find her favorite products in the store.

Marketing on Xiaohongshu

For products that are listed on its e-commerce platform, Xiaohongshu has different sales campaigns to generate sales, stores and brands can sign up. It also runs a 4-hour count down sales events 3 times per day platform-wide. These discount events are focused on cosmetic product, health product, food, household items, formula. It also runs a “Stylish girl” event which hosts cosmetic product only.

Smaller brands can benefit from Xiaohongshu’s growing network of celebrity users to drive brand recognition through KOL campaigns. A simple way to begin partnerships is to send products to influencers that are within the brand’s niche, and have them authentically post their thoughts.

Is Xiaohongshu a good investment?

So is Xiaohongshu worth the money? It is, but not only as a sales platform: as an information platform.

Chinese Luxury customers make exhaustive research before purchase. They have the largest number of touch points before making a purchase decision, and especially if you’re in the beauty space, Little Red Book will be one of them.

Even niche cosmetics brands can have thousands of mentions on Little Red Book, and customers who see your products on Xiaohongshu might very well end up buying it on Tmall or WeChat a few hours or days later.

In short: Little Red Book is worth it. But with its huge engagement rates and significant organic traffic, you should see it as a marketing channel rather than as a sales platform.

Conclusion

As part of the e-commerce revolution for purchasing better products, Xiaohongshu’s unique positioning as a trustworthy, celebrity-approved distributor of overseas products is a great channel for brands that look to capitalize on the social commerce trend.

The nature of Shopping Notes makes it not only authentic, but also useful to potential consumers. Driving brand recognition and sales aside, a well-established presence on Xiaohongshu allows a business to track customer sentiment over a test period, which can then be used to inform future marketing strategy.

Want to learn more about Xiaohongshu KOL marketing, content trends, and successful cases? You will find the below articles very helpful:

• How fashion brands leverage Red (Xiaohongshu): Content, KOLs, and Strategy
• Red (Xiaohongshu) trends in 2022: emerging trends in fitness, fashion, and beauty
• Red (Xiaohongshu) pushes “Account-Store Integration” to drive in-app conversion
• Little Red Book new feature: “guaranteed exposure” for sponsored content

Have some unanswered questions about your Red/Xiaohongshu strategy? Simply fill out this one-minute chart and we will be in touch with you!

We have also created a webinar on Little Red Book, here is the webinar recording, and webinar slides.

The post 2024 Little Red Book (Xiaohongshu) Marketing – A Complete Guide appeared first on WalkTheChat.

​Allgrey fashion trend, or 格雷系 in Chinese, which involves the layering of items in different shades of grey, was the major fashion fad in the last months of 2023 going into 2024. Originating amidst the winter season, this trend has seen an extraordinary rise in popularity, growing MoM 29.53X on average from November to January and captivating over 300 million views in relevant topics on Red/Xiaohongshu.

In this edition of our micro trend report, we provide a thorough overview of:

• Introduction of the Allgrey Fashion Trend: assessing key characteristics and data of this China fashion trend.
• Demographics: understanding the key regions and age groups engaging with this style.
• Origin and Promotion: how it became a trend.
• Sentiment Analysis: what consumers praise about Allgrey and why it has been widely adopted by the average consumer.
• Social Marketing: the role of influencers and brands in promoting this trend.
• E-Commerce Impact: how brands are leveraging the hype on Tmall.
• Future Prospects: how is Allgrey faring as we enter spring season, and what’s next in China’s ever-evolving fashion?

The analysis is empowered by Doris, WalktheChat In-house A.I. Social Listening Tool.

Remember the red-brown tones of Maillard style that “sizzled” Chinese fashionistas in fall of 2023? As Maillard’s popularity faded and winter’s chills sniffed in, the calm and neutral shades of grey became the new “it color” on Chinese social media such as Red and Douyin.

Using grey tones as the primary base color of an outfit, Allgrey refers to layering of items in grey shades to create a simple yet elegant ensemble.

The Allgrey China fashion trend primarily appeals to the younger audience, especially those between 18-24 years old, who form the largest demographic group, closely followed by the 25-34 age bracket.

Interestingly, despite its association with elegance, only 3% of the Allgrey enthusiasts belong to the 35-44 year age group. This could potentially be attributed to the novelty of the Allgrey style, which might not have yet resonated with the more mature demographic.

Additionally, it’s notable that audiences from Guangdong are leading this trend, surpassing those from traditionally fashion-forward provinces like Shanghai. This shift highlights Guangdong’s emerging significance in shaping contemporary fashion trends.

Allgrey was initially known by generic terms such as “grey color scheme fashion” (灰色系) and “classy grey fashion” (高级灰) before Red platform launched an official #Allgrey campaign, catapulting the Allgrey concept into the limelight.

In addition, Red invited influencers and celebrities to host themed livestreams, further popularizing the trend. This strategic social media push demonstrates the power of digital platforms in shaping fashion trends in China.

The pursuit of an affluent and refined appearance has been a long-standing and growing desire among Chinese consumers. This trend has spurred the popularity of search terms such as “sophisticated fashion” (高级感穿搭) and “Old Money style” (老钱风).

Enter the Allgrey trend, the latest embodiment of quiet luxury in China’s fashion domain. This trend captivates with its minimalist charm and understated luxury, appealing to those who favor sophistication without ostentation. Influencers and fashion enthusiasts laud its intellectual and old-money aesthetic, highlighting its slimming effect and effortless style. This monochromatic movement represents a growing preference towards simplicity and quality in fashion.

Since Allgrey is a color-centric style, it is formulaic and relatively simple to replicate for the average consumer. An “Allgrey look” can be achieved either by donning entirely grey items, or mixing grey essentials with an accent color such as blue or red.

With this layering technique, consumers yearning to look fashionable in the winter can stay warm, and the style is also versatile for commute and casual scenarios.

The ease of implementation, combined with its warmth, versatility, and inherent elegance and minimalism, serves as the cornerstone of the Allgrey style’s widespread adoption among fashion enthusiasts.

The concept of Allgrey, while not widely popular by its specific name in Western circles, has seen the color grey take center stage in the Fall/Winter 2023 fashion scene. Prestigious luxury labels like Miu Miu, Prada, Max Mara, along with designer brands such as The Garment, frequently emerge in conversations about Allgrey on Chinese social platforms.

Influencers are leveraging the prevalence of grey pieces in these runway shows to reinforce the legitimacy and influence of the Allgrey trend within the global fashion landscape.

Miu Miu stands out as one of the most frequently mentioned brands in discussions about the Allgrey trend, thanks to its compatibility with the trend and the burgeoning popularity of #MiuMiuStyle. However, not all outfits categorized under Miu style are from brand Miu Miu. Consumers are also turning to mass market alternatives from COS and Zara to achieve the look.

In the lead-up to the Chinese New Year, the Allgrey trend took a festive turn, with influencers showcasing their stylish Allgrey ensembles paired with vibrant red accessories like socks, bags, and gloves, symbolizing auspiciousness and fashion-forward thinking.

This thematic adaptation stirred considerable buzz, generating 106,300 engagements on Red and amassing views exceeding 41 million on Douyin.

Apparel brand GANNI tapped into the trend by promoting their CNY festive collection in Allgrey styling through a blend of branded content and influencer collaborations. This positioned their Chinese New Year drops as both trendy and culturally relevant.

The hashtag #KoreanVibeAllgreyBoys emerged as the leading topic within the Allgrey trend on Douyin, ,accumulating over 95 million views in total.

The popularity of Allgrey on social media has been equally relevant in e-commerce, with searches for the keyword “allgrey” experiencing a remarkable 274% increase on Tmall during January.

Recognizing this trend, brands like Nike, Mardi Mercredi, and Arket have promptly incorporated the keyword into their product listing titles to harness the search traffic.

What’s the outlook for Allgrey? What will be the next big trend in 2024?

As we transition into spring, the Allgrey fashion trend’s stronghold on China’s fashion scene is showing signs of retreat, with mentions on the social media platform Red plummeting by 66% in February. This suggests that Allgrey may have been a temporary craze, likely to be dethroned by the next emerging fashion style.

Social media platforms like Red and Douyin are at the forefront of inventing new trends, turning viral moments into commercial triumphs through savvy live streaming strategies that drive sales.

Looking ahead, 2024 is expected to bring about fresh, color-based themes, following the success of Dopamine, Maillard and Allgrey in 2023. The secret sauce for any social media-inspired fashion trend to achieve virality seems to rest on its ease of adoption and replication, with straightforward, easily emulated styles gaining traction most swiftly.

WalktheChat is an AI-powered China Marketing Agency supercharged with an industry-leading AIGC and tech team.

: selina.wang@walkthechat.com

Follow us on LinkedIn for more news and insight about China’s digital marketing and luxury landscape.

More reports available upon request.

The post China’s Top Winter Fad: Allgrey Fashion Trend Captivates over 300 Million Views on Red appeared first on WalkTheChat.

Chinese New Year marketing engagements include both brand and organic content.

Luxury Sector Chinese New Year Marketing Summary Insights 

1. The presence of offline artistic installations have increased significantly compared to last year during this Chinese New Year marketing season, indicating a more substantial investment in physical presence and engagement.
2. Online interactions, especially through WeChat H5 games, have become more prevalent, with innovative red envelope (red packet) mechanisms being introduced to engage consumers.
3. Marketing efforts have become more localized, as evidenced by the use of Chinese New Year-themed short films, which resonate more deeply with the local culture and traditions.
4. There’s a noticeable reduction in collaborations with IP characters, particularly compared to those related to the Year of the Rabbit, likely due to the significant differences between Chinese and Western interpretations of dragons, which often spark discussions.
5. Some brands have opted not to use dragon imagery in their campaigns, a departure from the previous year where rabbit motifs took dominance in Chinese New Year marketing campaigns and products.
6. A deeper exploration of traditional Chinese culture beyond the obvious symbols like dragons and the color red

Offline artistic installations

The recent Chinese New Year marketing campaigns by luxury brands have showcased a significant uptick in the deployment of offline artistic installations, a testament to the brands’ heightened commitment to immersive customer experiences. This year, the venerable Louis Vuitton orchestrated an ephemeral pop-up space for its Spring/Summer 2024 Menswear collection in Shanghai and Beijing, drawing inspiration from the sun element—a central motif of Pharrell’s debut series as the brand’s Men’s Creative Director. This thematic choice reflected in the collection’s warm hues and ornamental luminosity was brought to life through these physical spaces, reinforcing the connection between the brand’s aesthetic narrative and its architectural manifestations.

Simultaneously, Louis Vuitton’s home in Chengdu’s Taikoo Li presented an even more eye-catching installation for the Year of the Dragon. Set against the backdrop of the millennial Daci Temple with its two standalone buildings and an open courtyard, the installation featured a commanding dragon that encapsulated the charm of the “Land of Abundance,” resonating with both cultural significance and contemporary relevance.

Moreover, Italian luxury brand Fendi seized the festive period as an opportunity to launch a collaboration featuring the iconic Pokémon franchise and Japanese streetwear designer Hiroshi Fujiwara’s Fragment. The Fendi x Fragment x Pokémon collection integrated beloved dragon-themed characters from Pokémon with Fendi’s highly recognizable Peekaboo and Baguette bag designs, merging them with the classic FF motif. This creative synergy was celebrated with a unique flash store in the East Square of Chengdu’s Taikoo Li, showcasing the innovative interplay between iconic brand symbols and pop culture elements.

These installations exemplify how luxury brands are increasingly investing in elaborate, tangible art pieces to elevate their in-person engagement, crafting an intertwined narrative of tradition and modernity that not only captures the imagination but also creates distinctive, memorable experiences for consumers.

Evolving digital engagement and WeChat mini-programs

This Chinese New Year marketing season, luxury brands significantly leveraged WeChat mini-programs for heightened user interaction, offering exclusive red packet covers, wallpapers, and emoticons. Unlike the direct claim methods of previous years, more brands now require entry and registration via mini-programs, capturing valuable consumer data for future marketing endeavors (e.g., targeted SMS campaigns). The engagement strategies have evolved, incorporating keyword searches, link sharing, and interactive games to unlock exclusive content, enriching the user experience. WeChat’s latest module template enabled brands to integrate ads, lucky draws, and product promotions seamlessly, maximizing engagement.

Van Cleef & Arpels introduced a Chinese New Year marketing interaction that included dragon-themed emoticon packs, the collection of lucky wallpapers (with a chance to win a hidden red packet cover upon gathering all four designs), and a new year avatar update feature (where users could upload their portrait to generate a themed avatar).

In terms of private domain marketing, after retaining user information, luxury brands like Balenciaga are sending text messages to users, increasing consumer touchpoints.

Other brands, such as Hermès, utilized the limited edition red packet covers as a tool for sales associates (SAs) to connect with clients, with SAs sending them directly to customers via private messages.

This approach not only enhanced direct engagement but also leveraged personalized communication to strengthen brand loyalty and consumer relationships.

Localized storytelling in New Year campaigns

This year, luxury brands have continued the tradition of crafting New Year campaign films, focusing on themes of “hope and expectations,” “prospects and the future,” and “identity,” particularly addressing the existential concerns of contemporary youth. Post-pandemic, these narratives extend beyond the timeless New Year themes of “homecoming” and “reunion dinners,” aiming to resonate emotionally through localized storytelling that simplifies complexity, showcasing respect and sincerity towards cultural nuances.

Bottega Veneta’s “The First Sunrise with You” captures the essence of new beginnings and the relentless pursuit of life’s journeys through the lens of traditional reunion themes, interwoven with the anticipation of dawn’s first light. This narrative not only aligns with the cultural significance of greeting the New Year but also addresses the aspirations and anxieties of modern Chinese society, showcasing a deep respect and understanding of local sentiments.

Though not a luxury fashion brand, Ganni’s campaign, inspired by the traditional “dragon boating,” is a noteworthy one. It connects with Chinese cultural heritage while highlighting themes of female empowerment and collective strength. By depicting athletes overcoming limitations through unity and determination, the campaign resonates with the contemporary Chinese values of resilience and community, reflecting the brand’s commitment to embracing and honoring Chinese traditions and the evolving identity of its people.

Declining IP collaborations and cultural interpretation challenges

In the Year of the Rabbit, fashion brand marketing frequently featured collaborations with designers and iconic cartoon characters, such as Coach x White Rabbit, Chloé x My Melody, Givenchy x Lucky Rabbit Ozwald, and Moncler x Roger Rabbit. This year, however, there’s been a noticeable decrease in such IP collaborations. Even those that have launched face scrutiny, particularly regarding their relevance to the “Chinese Dragon.”

Dior’s partnership with Japanese contemporary artist Otani Workshop produced a green monster TANILLA. Upon release, many criticized it for not representing the “Chinese Dragon,” with feedback ranging from its appearance being “ugly” and “abstract” to outright “ghastly.”

Products featuring this design, including jackets with a burnt color effect, prints that obscure the face, and dragon scarves with an unclear motif, have been particularly disparaged. Some netizens dubbed the design as a “zombie dragon,” neither festive nor auspicious, predicting it to quickly become discounted stock.

This backlash underscores the unique emotional connection Chinese people have with zodiac symbols, expecting the Chinese dragon to embody power and protection, not the characteristics of a “dinosaur” or a “European-style evil dragon.” This mismatch in cultural expectations likely contributed to the reduced number of IP collaborations this year, as brands aim to avoid controversy and more deeply respect traditional Chinese sentiments.

Creative approaches beyond literal dragon imagery

This year, in contrast to the rabbit-themed marketing saturating last year’s campaigns, several brands have strategically refrained from directly incorporating dragon imagery into their Chinese New Year products. Seeking a more creative and thematic approach to zodiac marketing for the Year of the Dragon, these brands have found innovative ways to honor the dragon theme without resorting to explicit depictions.

Bottega Veneta utilized its sophisticated weaving techniques to mimic dragon spines and scales, subtly celebrating dragon culture through craftsmanship rather than literal representation.

Givenchy, in collaboration with Juanzong Bookstore, released the 2024 Dragon Scale Scroll, drawing upon the classical Chinese bookbinding method known as dragon scale binding, named for its pages that fan out resembling dragon scales.

Loewe tapped into the Chinese appreciation for jade and its symbolic meanings. The brand commissioned jade carving masters to create three limited-edition jade pendants. Additionally, each jade-color-inspired Flamenco Mini clutch bag comes with a special pouch containing a jade piece in a matching color, symbolizing good fortune for the new year.

Cosmetics Industry Chinese New Year Marketing Ranking

Compared to 2023 Chinese New Year marketing, most international brand rankings for Chinese New Year do not show big changes. Young cosmetic brands have exhibited remarkable growth, including brands like TIMAGE, First Impression, and JUDYDOLL. The rankings for established brands such as Chanel, Dior, and Giorgio Armani show relatively stable positions with minimal changes.

There is a dynamic and rapidly growing market for brands that are relatively young in the market, which are becoming increasingly competitive and are resonating more with local consumers.

Douyin’s cosmetics sales are growing at a strong rate, with a 111% GMV growth in Jan 2024. Comparatively, Tmall’s cosmetics category has a 12% decrease during the same time, showing that it is losing traction to Douyin.

Shu Uemura plays with Nostalgia Marketing and cultural alignment

In the Chinese New Year marketing campaign by Shu Uemura, contrasting outcomes from collaborations with two distinct celebrities highlight an important strategic consideration. The brand’s engagement with Wang Yibo, a prominent figure with substantial influence among younger audiences, indeed generated significant short-term traffic. However, this approach, often characterized by hefty endorsement costs, may not ensure a sustained interest in the brand itself, as the followers are typically more celebrity-driven rather than brand-loyal.

Conversely, the partnership with Carman Lee (李若彤) tapped into a more profound cultural and nostalgic vein. She is an actress revered for her portrayal of Xiaolongnü, the ethereal ‘Dragon Girl’ from the famed ’90s TV series “The Return of the Condor Heroes”.

Her association with the character Dragon Girl deeply rooted in the cultural fabric, presented an authentic alignment with the brand’s campaign theme, resulting in higher engagement and bookmarking figures. The Little Red Book post featuring her got over 7000 engagements with a much higher comment rate and bookmark rate compared to that of Wang Yibo. This suggests a more enduring connection with consumers. Carman Lee’s influence comes at a likely lower cost, yet it appears to resonate on a more substantial level, potentially leading to a lasting affinity with the brand beyond the campaign’s run.

With a 12% annual decline in China’s cosmetics sales in 2023, the reliance on tier 1 celebrities for quick traffic surges might not be the most prudent financial commitment. Brands should consider a balanced approach that combines the widespread reach of popular figures with influencers who have a more resonant cultural or niche appeal. This dual strategy could optimize marketing budgets while fostering a deeper and more sustainable relationship with consumers, steering clear of transient trends and instead building a loyal customer base rooted in shared values and cultural relevance.

Conclusion

Luxury brands have adeptly navigated the festive Chinese New Year marketing period, unveiling a blend of innovative physical and digital marketing strategies. By emphasizing offline artistic installations, alongside the smart use of WeChat mini-programs for interactive digital engagement, brands have created immersive experiences that establish multi-touchpoints with consumers. Coupled with a shift towards localized storytelling and creative interpretations of zodiac themes, luxury brands show commitment to marrying tradition with modernity, ensuring cultural relevance and fostering deeper consumer connections without leaning on explicit or potentially culturally insensitive imagery.

In the cosmetics industry’s Chinese New Year marketing, a notable shift favoring Douyin’s digital platform. The remarkable growth of brands like TIMAGE and Douyin’s 111% sales increase underscore the changing consumer dynamics. Additionally, Shu Uemura’s nostalgia-driven campaign with Carman Lee highlights the power of culturally resonant marketing.

Overall, Chinese New Year marketing reveals a sophisticated interplay between tradition and innovation across the luxury and cosmetics industries. By integrating artistic installations and digital interactivity, embracing localized and culturally nuanced content, and strategically leveraging nostalgia and celebrity influence, brands have demonstrated a nuanced understanding of the Chinese market, setting a precedent for future marketing strategies that prioritize cultural sensitivity, creativity, and authentic connections, ensuring the continued relevance and appeal of luxury brands in a rapidly evolving consumer landscape.

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WalktheChat is an AI-powered China Marketing Agency supercharged with an industry-leading AIGC and tech team.

Follow us on LinkedIn for more news and insight about China’s digital marketing and luxury landscape.

More reports available upon request.

Contact us at: info@walkthechat.com

The post Chinese New Year Marketing: Luxury and Cosmetic Brands Are Redefining Strategies for the Modern Chinese Consumer appeared first on WalkTheChat.

Summary Insights 

• 60% of Douyin transactions in the fashion sector potentially take place off the Douyin platform. Making an omnichannel strategy for Douyin crucial for 2024

• Douyin’s “Omnichannel Measurement” tool allows for real-time tracking of the potential transaction out of the platform, enhancing both online and offline sales.

• Brand Douyin livestreaming is growing in popularity, driving a larger share of total sales with high-value brands seeing substantial success.

• Advertising and supportive platform policies have led to increased traffic and higher conversion rates for brand Douyin livestreaming.

Fashion Marketing Campaign on Douyin may drive 60% of potential transactions out of the platform 

Douyin launched “Omnichannel Measurement” to monitor the contribution of Douyin marketing to all channel e-commerce conversions and offline business.

The Omnichannel Measurement solution from Ocean Engine( Douyin Ads platform) employs two sophisticated algorithm models: MTA (Multiple Touchpoint Attribution) and MMM (Marketing Mix Model). It enables brands to view results on daily basis, facilitating real-time adjustments to budget allocation and campaign strategies.

Among the 500 reports generated by brands, current data indicates that, on average, 39% of transactions occur outside the Douyin platform,  though this rate varies widely by industry. The clothes and accessories sector leads with the highest rate at 60%, followed by the healthcare industry at 46%.

From QuestMobile, during the Double 11 Festival, Douyin contributed 7.4% of traffic to Taobao and 5.6% to JD, more than RED, Weibo and Kuaishou.

Zara initiated a quite luxury style Douyin livestraming

Zara leads the charge among high-end retailers in embracing a ‘quiet luxury’ style of livestreaming on Douyin, breaking away from the traditional, bustling online sales chatter. Their approach is refreshingly direct and understated, showcasing collections in a manner that mirrors the exclusivity of a private fashion show.

This strategic pivot positions Zara not just as a trendsetter in fashion, but also in digital marketing, offering a refined blueprint for other premium brands to engage with audiences without diluting their brand’s cachet. Zara’s initiative is a significant stride forward, signaling a shift towards a more sophisticated, brand-centric livestream experience that could redefine the future of luxury brand engagement on social platforms.

The 1st show attracted 1.2 million views and 267 thousand interactions, 10 times more engagement than before. The average views of  Zara Brand Livesteams reached 560,000 after the update,  marking a 180% growth from the previous.

Up until 2024 Jan, Zara had:

• 181 Official live-streamings in total
• Accumulated 460 thousand followers
• The estimated annual GMV from Official live-streaming exceeded 40 million RMB

Zara’s success shows that a tailored approach, focusing on engaging content over direct sales, is essential to generate buzz and build brand presence on Douyin.

Other brands such as Ralph Lauren also hosted their Spring Summer 2024 show on Douyin. However, this show didn’t quite capture the same level of engagement as Zara’s meticulously Douyin-tailored presentation, they only got 488k views.

Ralph Lauren’s fashion show livestreaming show on Douyin didn’t spark the same excitement as Zara’s, highlighting a crucial point for luxury branding on the platform: it’s not the replication of a fashion show that draws the Douyin crowd, but the creative and platform-specific entertainment value. The key for luxury brands is to design experiences that marry their brand story with the interactive and visually rich format that Douyin users love.

Brand Douyin Livestreaming increased stably 

Brand official Douyin live streaming continued to gain momentum. The proportion of GMV attributed to brand-official Douyin livestreaming saw a continuous increase, from 25% to 33% in 2023.

High-value brands, in particular, found substantial success with this approach. More affordable luxury brands joined  Douyin’s e-commerce last year. Their brand livestream-generated GMV makes up more than 50% of their total Douyin sales, and the average value per order exceeds 1,000 RMB.

Lululemon focused on using Douyin as a new product launch platform 

Since 2024, Lululemon has adopted a strategy of featuring new and limited-edition products in their Douyin livestreams. In contrast to their Tmall store, which mainly promotes classic items, three of the top-selling products in the Douyin store are new releases for 2024 Spring Festival. 

Lululemon also enhances new product promotion by inviting professional sports influencers to their livestreams, using expert fitness advice to attract consumer attention, enrich livestream content, and increase the efficiency of new product launches.

Brand Douyin livestreaming can get extra traffic from Douyin easily by completing certain tasks. Douyin’s supportive policies for brand-led livestreaming have proven effective.

Compared 2023H1 with 2022H1, sales per thousand views in influencer-led Douyin livestreaming saw a 15% year-on-year decline, with average conversion rates dropping by 30.5%, and only a marginal 0.6% increase in the average value per order.

In contrast, official Douyin live-streaming experienced a 17.6% rise in sales per thousand views, with a significant 39.9% increase in the average value per order. This indicates that official Douyin live streaming tends to secure higher average order value.​​

Top affordable luxury brands like Lululemon can capitalize on brand Douyin livestreams to initially boost sales. Smaller or medium-sized brands may benefit from utilizing KOL livestreams to enhance brand image and sales at the beginning. 

Annually, Fabrique partners with over 70 KOL livestreams, yielding a GMV of 40 million RMB. Initially, these KOL collaborations accounted for 60% of total Douyin sales. In their second year, through ongoing refinement of their official livestreams, more frequent live-streaming, a growing follower base, and increased advertising spending, their official livestream GMV soared from 15 million to about 80 million RMB, comprising 56% of their Douyin sales.

Brand Douyin Livestreaming highly relies on ads to boost traffic

For brands venturing into Douyin’s e-commerce platform, advertising plays a key role in driving traffic during the initial stages. For instance, an outdoor sports brand reported that around 30% of its live-streaming traffic came from paid ads.

By analyzing a typical week of advertising data, it’s clear that by significantly boosting paid traffic to their brand Douyin live-streaming, the brand achieved a 262% rise in GMV. The substantial influence of paid traffic on the brand’s official Douyin livestream performance is apparent.

Meanwhile, the impact of paid traffic from Douyin on organic traffic is quite pronounced. After increasing paid traffic, organic traffic has more than doubled, significantly boosting the potential for more in-store visits and conversions during Douyin livestreamings.

While advertising-driven traffic to brand Douyin livestreams can notably increase sales in the short term, the long-term acquisition costs for new customers may rise. Brands should also prioritize converting public traffic into their own channels. To foster brand loyalty and improve repeat purchase rates, brands can utilize options like followers’ groups, Official Apps, and membership systems.

Conclusion

To succeed on Douyin, brands are leveraging official livestreaming for rapid sales growth, as seen with affordable luxury brands. While ads can boost short-term sales, converting public traffic to owned channels is key. Following Zara’s example, more brands recognize livestreaming’s power in boosting brand image. Tools like “Omnichannel Measurement” help track off-platform transactions, enabling smarter marketing budget allocation for top brands.

Douyin Live-Streaming and case studies: a brand marketing guide

Douyin Zibo (自播), AKA Douyin live-streaming hosted by the brand, is a trending marketing method in China.

In Feb 2022, 50% of the total Douyin sales of the top 500 brands came from the brand’s own official live-streaming.

During the 618 e-commerce holiday in 2022, a total of 25 brands’ official Douyin live-streaming reached over 100 million RMB in sales. The top brands include Xiaomi, Adidas, Estee Lauder, Apple, and Nike. 

Also, brands’ official live-streaming represented 57.7% of the total Douyin e-commerce live-streaming time on June 18th, 2021 (the rest was live-streaming by influencers), according to East Money.

To break down the Douyin live-stream strategy, we will cover:

• What’s brand Douyin live-streaming
• How to optimize Douyin Live-streaming 
• Should brands invest in Douyin live-streaming?
• Case study

What’s brand live-streaming?

Brand live-streaming is a live-streaming session hosted by the brand’s official account (and not by a 3rd party influencer).

Dedicated account just for live-streaming 

Many brands choose to set up different Douyin accounts specifically for live streaming. For example, Adidas has over 4 live-streaming accounts for different audience groups: the flagship store, women, kids, and distributor stores. 

The content on those live-streaming accounts is simple and short clips from live-streaming. Most editing is just to add background music and Douyin effects. 

Such content positioning is very different from Adidas’ main official account, which only shares high-budget creative content.

Hours-long

Lots of these live-streaming accounts run on insane live-streaming hours of over 15 hours per day. Usually, the live-streaming has one host, often a female, selling over 50 discounted products. 

Despite this time commitment, the viewer count (the number of viewers watching the live video at one time) is extremely low. Even for the top 500 Douyin brands, the average viewer count is often below 100. This would accumulate over 100k daily viewers in total.

Compared to the viewer amount, the sales result is impressive. For example, Under Armour’s max viewer count could be 100, with a total of 100k daily views, and the daily sales could reach over 300k RMB. Douyin users tend to make quick and impulse purchases during live streams.

Pricing is lower than Tmall

Below brands are from the top 100 best-performing Douyin stores. Comparing the average product price in Douyin and Tmall flagship stores, the pricing on Douyin is around 10-20% lower.

Higher pricing on Tmall could be a result of Tmall users’ stronger purchasing power. Usually, Tmall users have a stronger purchasing intent, while Douyin users have a stronger need for entertainment.

Adidas is one of the top 5 Douyin stores. Its price on Tmall is 17% higher than Douyin throughout the year. The difference reaches over 100 RMB from January to April.

A stronger focus on Douyin during the non-event period

The focus of Douyin marketing and live-streaming should be during the non-event period. Douyin sales tend to remain relatively stable or even drop during large Tmall events such as Double 11 and 618. The sales gap usually closes before and after the event period.

Brands can focus on driving traffic to Tmall and setting relatively competitive prices during the event periods.

According to the above stats, Douyin already reached 39% of Tmall’s net sales. But the Tmall net sale might be underestimated. Tmall officially claim to have 8,100 million RMB in GMV in 2022, and Douyin officially claimed only 730 million RMB GMV in 2021, less than 10% of Tmall’s. But it’s clear that Douyin’s e-commerce continues growing and the gap between Tmall and Douyin is closing.

How to optimize Douyin Live-streaming 

Focus on the hero product 

Just like the hero product strategy on Tmall, Douyin also emphasizes the top-selling products. Over 20% of sales are from the 3 top-selling items. Many brands even have over 50% of total sales from the top items. This is significant since many brands have over 100 products listed. For example, Erke (a Chinese sports brand) has 890 products, and Under Armour has over 300 products.

Think of live-streaming as the last step of Douyin conversion funnel 

Live streaming does not work alone, it’s the end of the conversion funnel. 

The top of the funnel is the source of the traffic. Traffic comes from display ads, content, and organic live-streaming traffic from Douyin.

According to Newrank, the source traffic from a brand’s own live-streaming when first starting live-streaming could be broken down according to categories: 

The more a brand relies on brand awareness, the more it needs to run advertising to kick-start the traffic.

Use content to generate traffic to your live-streaming account 

Quantity over quality when it comes to driving traffic to the brand’s own live-streaming. The Douyin algorithm made content performance unpredictable, thus posting more is a safer bet to generate more traffic. 

Brands with over 500k Douyin followers, tend to create a separate account just for live streaming. These accounts’ has very promotional content, very different from the usual concept video a brand would produce with a bigger budget. These are just short clips from the live streaming. Often using the same editing template, music, and special effects to make it simple to produce. Most brands post over 10 videos per day to drive traffic to live streamings.

For most brands with less than 500k followers, a brand can simply use the same account to set up Douyin live-streaming. In this case, the content still needs to be creative, and on-brand. The brand could post less frequently.

Below is the type of content Lola Rose, a 1,000-2,000 RMB jewelry brand, generates on Douyin. It’s just 2 pictures with simple background music. Easy to produce in bulk. This video got around 100 engagements on Douyin. The same video asset could also be used on the brand’s Tmall store.

Another type of content strategy is to post less frequently but rely on display ads to generate traffic. Premium brands with large budgets and restricted content requirements usually do so.

Discounts and user engagement

Engagements and purchase actions will boost the organic traffic to a live-streams.

Charlotte Tibury’s team set up 1-2 lucky draws for a 200 RMB product during every live-streaming. To participate, viewers will need to pay 0.1 RMB to join the Fan club and add a comment. These are small but effective actions that will trick the Douyin algorithm to bring even more traffic. The host will decide when to release the lucky draw result, thus encouraging viewers to stay longer to wait for the result.

Douyin has many other features to encourage users to spend time on live streamings, such as limited products, time-sensitive coupons, small giveaways, and comment-lucky draws.

Participate in Douyin events to gain traffic

Same to Tmall, Douyin also has its own event schedule for the e-commerce holidays. Participating in the official events will gain traffic to the store.

Set the price lower than Tmall

Brands can use tactics such as different hero products, gift-with-purchase, or even develop Douyin-specific SKUs to set up a lower pricing strategy for Douyin. In general, many brands would price 10-20% cheaper on Douyin than Tmall.

Gift-with-purchase

Some brands use gift-with-purchase to set different pricing while avoiding users directly comparing prices across Douyin and Tmall.

Perfect Diary promotes the lip gloss set during flagship store live-streaming and sets the price 31% lower than Tmall. Gift-with-purchase is able to justify the pricing differently and avoid a direct price comparison.

Douyin-specific product

Some brands also develop Douyin-specific SKUs to offer a cheaper pricing product in Douyin, while avoiding direct competition with Tmall.

Should brands invest in Douyin live-streaming?

Despite the impressive aggregated sales result, most brands still struggle to manage their own Douyin live streaming.

High upfront cost

The upfront investment is huge:

• Over 10 hours of daily live-streaming
• An operation team to assist with content posting, promotion, ads, and technical support through daily operation
• A great salesperson as the live-streaming host who also needs to match the brand’s style
• Supply chain system to support the surge of demand during peak periods
• Deal with excess inventory when performance is below forecast

Traffic concentrates on top brands

Another barrier to entry is the current live-streaming sales are extremely concentrated on top-tier brands. Xiaomi, Florias (Chinese cosmetics startup), and Adidas are among the best-performing brands on Douyin. These brands already have over 9 million Douyin followers and the monthly sales from brand live-streaming are over 50 million RMB.

The 2nd tier of brands with strong distribution channels and high brand awareness in all tier cities in China. These brands usually have over 1 million followers on Douyin and have 10-30 million monthly Douyin live-streaming sales. For example, brands such as Lancôme, COACH, Erke (Chinese sports brand), and Fila.

Most good-performing brands fall under the 3rd tier, with 100-500k Douyin followers and live-streaming sales of 1-2.5 million RMB per month. The majority are Chinese brands with average pricing under 300 RMB. Some premium brands in this category that stands out are Charlotte Tilbury and Amazing Song (Chinese startup bag brand), both with average live-streaming price above 500 RMB.

The brands above are all from the top 200 best-performing Douyin store brands in their category. Over 95% of these 200 brands are Chinese brands. Many sell commodity products with little brand awareness. The majority of brands still do not run their own live-streaming or generate any sales from it.

For most SME and mid-tier brands, live-streaming will bring low ROI during the first year. Instead, working with influencers who already have strong followers is a much cheaper way to gain short-term sales and build initial traffic on their own accounts.

Case studies

Under Armour

Under Armour has 24 Douyin accounts, 6 of which run daily live streamings: 3 are official accounts (the flagship account, Under Armour Women, Under Armour Kids), and the other 3 belong to distributors.

Lots of similar content

The Under Armour flagship store posts 20 videos per day. These videos are just video clips from the live-streaming events. All the content uses the same editing template, some don’t have any editing at all. These videos usually got less than 10 engagements, and the purpose of repetitive posting in large quantity is to show up on the user’s feed and drive traffic to the brand’s live-streaming event.

Under Amour’s Douyin live-streaming is on 16 hours per day. It has a 237 average viewer count (the number of viewers watching your live video at one time), and 105k total viewers per live streaming. In February, the top performance show brought 1.3 million RMB sales, and a total of 19.9 million RMB monthly GMV, according to New Rank.

The live-streaming script is similar to Tmall

The live-streaming script is very similar between Douyin and Tmall. Both hosts encourage users to join the member club, claim additional coupons and encourage impulse purchases. Douyin’s host spoke a bit faster and is more enthusiastic about sharing the product. Tmall’s host tends to engage with user comments a bit more.

The hero product is cheaper than Tmall

The 3 top-selling products in the Tmall flagship store and the Douyin flagship store are different, but the price range is similar.

Hero product also gets brand would put a lot of emphasis during the live-streaming. For example, the top-selling men’s jacket was appears 30 times during every Douyin live-streamings in January 2023.

Douyin has a slightly higher pricing hero product in the men’s jacket category, 60 RMB more expensive than the hero product on Tmall. However, if we compare the same product, the Douyin flagship store’s pricing is significantly lower than Tmall.

Brands that want to better control pricing in multiple channels, could consider develop up platform-specific SKUs. Under Amour’s hero product, the ColdGear React jacket is only sold on Douyin. This way even when users find out a similar jacket on Tmall is sold for 300 more, they won’t be too angry due to the slight design difference.

Most Douyin sales are from the official account, and Douyin sales are strong during non-Tmall-event periods Douyin sales

Unter Armour sold 19.9 million RMB during Jan 2023 via the brand Douyin live-stream according to New Ranks. This is the majority revenue source for Douyin sales. And KOL live-streaming and sales only take 29% of total Douyin sales.

In comparison to Tmall, Douyin’s sales are very strong during the non-even period, especially before the event. In October, Douyin sales even exceeds Tmall’s.

Having Tmall and Douyin sales compared side by side definitely shows the strong sales position of the Douyin channel. Overall, Douyin’s sales take 21.6% of total Douyin and Tmall sales.

Conclusion

Douyin brand live-streaming is growing very strong with a strong concentration on the top tier brands. Douyin’s product pricing strategy should be lower than Tmall, and investment could focus on non-Tmall event periods. The up-front investment is high for most brands. Brands need to focus on content creation and ads to kick-start. Premium brands with less than 100k Douyin followers could hold off on launching their own live-streaming and focus on working with KOL to build initial momentum.

The post 3 Douyin Livestreaming Trends in 2024 appeared first on WalkTheChat.

The term Yabi (亚比) refers to hardcore subculture advocates who incorporate its aesthetics into their daily lifestyle, especially in fashion. Inspired by subcultures like punk, goth, hippie, grunge, and cyberpunk. 78.6% of Yabi audience is from Gen Z.

Yabi’s rise in the fashion domain marks a transformative phase with a remarkable 436% increase from Q4 2022 to Q4 2023. It’s redefining the concept of daily wear, merging the distinctiveness of niche subcultures with the accessibility of mainstream fashion in an innovative blend that’s fresh and familiar.

Summary insights

• Yabi represents a significant cultural shift in China’s urban youth, moving from fringe to mainstream, as demonstrated by a 436% increase in its popularity from Q4 2022 to Q4 2023.
• Gen Z is the driving force behind Yabi, with 78.6% of its audience belonging to this demographic.
• The community is seeing a maturation, with a shift towards a more refined elegance within the Yabi style, suggesting an evolution in its aesthetic direction.
• The style is deeply rooted in subcultures like punk and goth, reflecting a blend of rebellion and individuality in fashion choices.
• Brands like New Rock and Balenciaga are effectively tapping into the Yabi trend, showcasing the commercial potential of aligning with subculture-driven fashion.
• Yabi’s adaptability has enabled it to bridge the gap between niche and mainstream, making it attractive for both premium and luxury brands.

The analysis is empowered by Doris, WalktheChat In-house A.I. Social Listening Tool

Yabi is crafting a new narrative in China’s fashion scene via an intense, cutting-edge style, imbued with a spirit of rebellion and individuality.

Yabi’s rise in China encapsulates a transformative journey from being a contentious label to an accepted symbol of youth rebellion and lifestyle liberty. 

Initially perceived negatively, Yabi has undergone a perceptual revolution, led by the Gen Z demographic, to emerge as a beacon of individualistic fashion and self-expression. This evolution of Yabi reflects a broader societal shift towards embracing diverse identities and personal freedoms through style.

We’re not just creating clothes; we’re crafting a rebellion. It’s for the Yabiout there – the bold, the brave, the ones who don’t just step over lines but redraw them entirely. Gender-neutral isn’t a trend for us; it’s a manifesto. This brand is our shout into the void, echoing back as the voice of a new generation.

– Zikon, Founder of Yabi brand ZIKONCHEN

For young Chinese indie designer brands that emerged from the heart of this vibrant youth culture, many of them naturally resonate with the Yabi aesthetic: edgy and forward.

Diving into the heart of Yabi’s influence, we encounter ZIKONCHEN, a brand challenging norms and advocating for a bold, gender-neutral future in fashion. Through ZIKONCHEN’s lens, we see a canvas where each piece is a statement, a call to the brave and the audacious to redraw the lines of fashion and identity.

Yabi is gradually reshaping urban China’s fashion scene, with 78.6% of its audience from Gen Z, and women representing 83.2% of this group. Predominantly present in major urban centers like Guangzhou, Chengdu+Chongqing, Hangzhou, Shanghai, and Beijing, Yabi is also synonymous with an expressive rave culture that blends music with distinct fashion sensibilities.

Yabi aesthetics also invigorates niche retail, as boutique stores specializing in unique, edgy fashion finds thrive, catering to the distinct tastes of the Yabi community.

The essence of Yabi lies in its diversity, drawing from a spectrum of subcultural styles—from Y2K’s nostalgic touches to Punk’s defiance, Goth’s mystique, and the avant-garde edge of Futuristic designs. These influences interlace to form a dynamic mosaic, reflecting the eclectic nature of its adherents. More than just fashion, Yabi is a manifestation of artistic expression, capturing the bold creativity and spirit of a generation poised to redefine the boundaries of style.

Our dialogue with Kira, a Gen Z fashion influencer, reveals that the Yabi aesthetics is much more than just clothing—it’s a personal narrative, a visual language of self-exploration and expression. Each outfit is a testament to the wearer’s unique journey, a tangible illustration of their evolving identity crafted with deliberate intention and artistry.

My journey with Yabi is evolving, from loud and proud to subtle and refined.It’s not just fashion; it’s the art of personal evolution, where every accessory I choose tells the tale of who I am becoming.

– Kira, influencer

Furthermore, there might also be an internal discernible shift in its aesthetic direction among the Yabi audience. The community, once known for its bold and outspoken sartorial choices, is now also embracing a more refined elegance. This subtle yet significant change signals a maturation within the Yabi style, as its audience seeks to harmonize the vibrancy of their youth with a polished sophistication that still retains the essence of their original defiance.

Top featured brands that resonate with the Yabi style include New Rock, celebrated for its gender-neutral and cutting-edge designs; Balenciaga, which dominates the handbag realm with its standout creations; Vivienne Westwood, a name synonymous with avant-garde jewelry; Rick Owens, commanding attention from the male Yabi demographic with its bold designs; and Jean Paul Gaultier, whose artistic and iconic print designs have become a hallmark of the Yabi aesthetic. 

Each brand plays a pivotal role in the Yabi narrative, offering more than mere fashion statements; they provide distinctive pieces that echo the individualistic ethos and creative spirit.

Yabi style stands as a testament to a well-rounded and holistic approach to fashion, deeply interwoven with the culture’s core values and identity. 

The essence of Yabi is most evident in its apparel, which captures 46% of conversation within the community, serving as the backbone of this distinctive aesthetic. Beyond clothing, it extends to accessories and jewelry, which are more than mere embellishments; they are integral for personal expression, allowing wearers to inject their narrative into their look. Complementary elements such as handbags, and shoes are not afterthoughts but are carefully selected to enhance and complete the Yabi ensemble, ensuring a coherent narrative from head to toe. 

Each piece selected is a building block of a larger story, one that is told with every curated outfit that embodies the unique spirit of the Yabi aesthetic.

Balenciaga and Vivienne Westwood are at the forefront of the Yabi style, each brand infusing its unique design elements that speak directly to the Yabi community. 

Vivienne Westwood’s jewelry collection is a treasure trove of rebellion, with motifs and punk-inspired elements that resonate with those seeking to express their individuality and connection to the Yabi ethos. Balenciaga’s handbags merge utility with statement-making aesthetics, featuring bold metal hardware and leather whipstitching that harmonize with the Yabi style’s edgy and distinct look.

New Rock, the Spanish footwear brand, is making waves in the Yabi community with its signature metal designs that are as bold as they are unique.

Embracing a genderless ethos, New Rock’s boots are known for their chunky silhouettes and versatile style, offering a unisex appeal that transcends traditional fashion boundaries. Their distinctive metal details, from metallic buckles to bullet accents and blade-like embellishments, are visually striking and emblematic of the bold and adventurous spirit which fits well with Yabi style.

Conclusion

Yabi’s rise from subculture niche to mainstream reflects a bold shift in China’s fashion scene, driven by the daring Gen Z. This movement is more than just style; it’s a declaration of individuality and rebellion. As Yabi blends with luxury and premium brands, it challenges fashion norms, showing how subcultures can redefine what’s trendy. This evolution proves fashion’s dynamic nature and the significant role youth play in shaping its future, making Yabi a symbol of change and innovation in the global fashion landscape.

WalktheChat is an AI-powered China Marketing Agency supercharged with an industry-leading AIGC and tech team.

Follow us on LinkedIn for more news and insight about China’s digital marketing and luxury landscape.

More reports available upon request.

The post The surprising way Yabi merges subculture with mainstream fashion for China’s Gen Z – bridging the gap between niche and mainstream appeared first on WalkTheChat.

The Double 11 Shopping Festival in China has just wrapped up. Although the eCommerce platforms didn’t reveal staggering sales figures as they used to, we observe quite lively social discussions before and after the event.

By analyzing the social discussions around Double 11, we can get a sense of who the winning brands are in driving engagement and traffic to eCommerce; we can also discover new shopping trends and consumer habits in China.

In this article, we’ll dive into the heart of Double 11 social discussion, by looking at these industry leaders:

• Social discussion overview
• Skincare & cosmetics
• Apparel & footwear
• Luxury
• 3C (consumer electronics)
• Home decoration & appliances
• Others

The analysis is empowered by Doris, WalktheChat In-house A.I. Social Listening Tool.

Get ready to uncover the story behind the numbers and the evolving world of retail.

WalktheChat is an AI-powered China Marketing Agency supercharged with an industry-leading AIGC and tech team.

Follow us on LinkedIn for more news and insight about China’s digital marketing and luxury landscape.

More reports available upon request.

The post China Double 11 Insight: Unpacking Social Discussion on Industry Leaders appeared first on WalkTheChat.