​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.

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.

Chengdu, with its population of 21 million, is rapidly emerging as a pivotal hub for global fashion brands. This city is an attractive alternative to the oversaturated markets of Shanghai and Beijing, offering fresh opportunities in the fashion industry.

This analysis delves into the burgeoning fashion trends within the dynamic Sichuan-Chongqing region. Anchored by Chengdu’s rich historical heritage and its pulsating contemporary culture, our exploration reveals a unique style narrative that sets the city apart:

• Cultural Fusion in Fashion: Chengdu’s distinct historical and cultural landscape, influenced by Ba-shu culture, thriving hip-hop scenes, and active LGBTQ communities, significantly shapes its fashion trends.
• Current Fashion Leaders: The city’s style preferences are currently dominated by iconic brands such as Balenciaga, Stussy, Rick Owens, BAPE, Supreme, and EVISU.
• Emerging Labels to Watch: Rising stars like Andersson Bell and Mugler are gaining traction, signaling a shift towards more avant-garde and innovative fashion choices.
• Untapped Market Segments: There is a significant, yet underexplored, opportunity in targeting male luxury consumers in Chengdu.
• Expert Insights: We offer exclusive insights from local buyer stores, key opinion leaders (KOLs), and industry experts, providing a comprehensive understanding of Chengdu’s fashion landscape.

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

Chengdu, with its iconic pandas, renowned spicy hot-pot, and the breathtaking landscape of the Western Sichuan Plateau, epitomizes the quintessential charms of China.

Chengdu’s past as the birthplace of the Ba-Shu culture (巴蜀文化) showcases its rich history of embracing different ways of life. This area, influenced by the colorful and diverse Southwestern ethnic groups and blended with the mainstream Han culture, has shaped Chengdu into a city that values diversity.

This open-minded spirit is clearly reflected in the way its people express themselves through fashion. Chengdu’s style is a vibrant mix of its multicultural legacy with a modern twist, making it an attractive and dynamic market for global luxury brands that appreciate a blend of heritage and innovation.

In Chengdu, the embrace of diversity and inclusion within the LGBTQ community is not just a social movement but a powerful force in the fashion domain.

This progressive city is pioneering the redefinition of gender norms through fashion, leading to a cultural metamorphosis that influences local and global style narratives. As such, Chengdu’s LGBTQ community is not merely participating in fashion; they are actively reshaping it, inspiring broader trends, and inviting a dialog on the role of fashion in societal transformation.

Sichuan-Chongqing area’s dynamic cultural tapestry offers fertile soil for the fashion and luxury sectors, providing endless inspiration and opportunities for brands to connect with a deeply rooted and vibrantly evolving culture.

Numerous esteemed fashion labels, including Burberry, DIESEL, Adidas, and Vetements, have aligned with the values of the LGBTQ community—embracing inclusivity, diversity, and acceptance. By launching special collections featuring rainbow motifs and messages of LGBTQ solidarity during Pride Month, these brands strategically position themselves within a progressive and socially conscious marketplace.

Chengdu’s discerning audience demonstrates a strong preference for pivotal and edgy designs.

This trend is evidenced by the notable sales growth for sheer tops in the city, outpacing other regions. Lydia, the founder of a prominent buyer store, corroborates this data, indicating a unique market inclination towards daring and transparent aesthetics in fashion.

The prominence of hip-hop culture in Chengdu and Chongqing stands as a distinctive cultural pillar, with many of China’s leading rappers, such as GAI, Bridge, and PSY from this region.

Chinese hip-hop, while drawing from Western influences, is distinguished by its unique approach, emphasizing subtle social commentaries, youth culture, personal struggles, and traditional brotherhood. This distinct local flavor has a marked influence on China’s fashion scene, inspiring styles that echo these deeper cultural themes.

Chengdu’s rappers and artists transcend their musical renown, emerging as pioneers in fashion. Their edgy and pioneering attire challenges conventional norms, mirroring the region’s innovative ethos. Often, this takes the form of an eclectic fusion of classic hip-hop attire with local fashion sensibilities, including Chinese traditional elements, forging a unique cultural signature.

Chengdu’s hip-hop scene, with its signature street style, cultivates an open-minded consumer base conducive to brand growth.

Balenciaga reigns supreme in this arena, commanding nearly a quarter (22.73%) of social mentions. Together, Stussy, Rick Owens, BAPE, Supreme, and EVISU contribute to just over 21%, reflecting their strong foothold in the market.

Sissy, representing Fig Fashion Showroom, notes that Chengdu has a strong preference for edgy designs. Brands that embody bold aesthetics and a street-fashion edge tend to outperform in Chengdu’s market compared to other cities.

Andersson Bell is a contemporary fashion brand that hails from Seoul, South Korea. Founded in the mid-2010s, the brand has quickly become known for its eclectic mix of Scandinavian minimalism and Korean urban streetwear aesthetics. Andersson Bell stands out for its gender-neutral designs, reflecting a modern take on fashion that defies traditional gender norms.

Andersson Bell is notably recognized by Chengdu consumers for its strong presence in buyer stores and as a distinguished designer brand, reflecting its impactful resonance within the local market.

Mugler, a French fashion brand renowned for its avant-garde and structural designs, is often characterized by sharp silhouettes, innovative materials, and a futuristic aesthetic. This brand also enjoys a strong demand in Chengdu, placing it as a leading market just behind Shanghai and Beijing.

Chengdu’s affinity for niche luxury brands such as Mugler showcases its refined taste and openness to avant-garde fashion.

Chengdu emerges as a pivotal market for gender-neutral fashion, with brands such as GUCCI seeing substantial Tmall traffic from the city, a leader in this category alongside Chongqing in the top five.

While traffic for established brands is well-distributed across major cities, niche labels like Yohji Yamamoto draw mainly from Beijing and Shanghai, with Chengdu as a frontrunner in the Tier 2 city segment.

Besides, Chengdu represents a significant untapped market for male luxury consumer engagement.

The niche luxury brand Berluti has seen noteworthy success in the Sichuan region, with Chengdu securing 5.32% of the search traffic on Tmall, remarkably outperforming traditional frontrunners such as Shanghai and Beijing.

Conclusion

Chengdu is a burgeoning hub for global fashion, distinct from the saturated markets of Shanghai and Beijing. Its 21 million residents are shaping a unique fashion scene, influenced by rich cultural heritage and contemporary movements like hip-hop and LGBTQ community.

With a penchant for both iconic and emerging labels, and a notable gap in the male luxury market, Chengdu presents a golden opportunity for international brands. Tapping into this diverse and dynamic market requires nuanced understanding and strategic engagement, where the insights of local experts and consumer trends can guide successful market entry and growth.

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 Regional Dressing in Chengdu: Emerging Fashion Epicenter in China appeared first on WalkTheChat.

As the world emerges from the shadows of the COVID-19 pandemic, it’s crucial to examine how various industries have been reshaped by this unprecedented event.

In particular, the handbag industry in China has witnessed significant transformations over the past two years. In today’s article, we will delve into:

• Key takeaways from the post-COVID handbag market overview
• Price range distribution
• Size analysis
• Booming trend: Gender Neutral Approach
• Vintage Luxury: how second-hand market affects purchasing decision
• Evolving consumer preferences and quotes from Chinese KOLs/influencers

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

The first noteworthy trend in the post-COVID handbag market is the divergent performance of affordable and luxury bags.

According to data from Tmall, sales of affordable handbags have declined by a staggering -33%, while luxury handbags have experienced a surprising upswing despite the challenging economic situation, with a +6% increase in sales over the past two years.

This shift underscores a changing consumer sentiment, where individuals are placing a greater emphasis on quality, prestige, and value-keeping purposes regarding their handbag choices.

In the end, affordable handbags are consumer goods and sunk cost, thus are ditched by their target audience during a challenging economic situation; meanwhile, luxury bags can be seen as an investment or asset, thanks to their value and liquidity in the second-hand market. 

Another intriguing observation is the shift in bag size preferences.

Small, compact handbags have gained immense popularity, reflecting a trend towards minimalism and practicality. Small handbags are more versatile for female Chinese consumers and easy to mix and match throughout the year.

Surprisingly, the 4,000-7,000 RMB price range has remained stagnant, representing only 5% of the top 20 handbags sold on Tmall.

Products in this price range find themselves in a dilemma: consumers would rather save money and purchase a more affordable premium handbag or add a bit more budget to get an entry-level luxury handbag.

Post-pandemic, Chinese consumers seek value for money more than ever, demanding quality craftsmanship even when opting for smaller bags or more affordable options.

The concept of gender-neutral fashion has gained momentum in recent years, and the handbag industry in China is no exception. 

As revenue from men’s bags on Tmall declines as a percentage of the platform’s overall bag revenue, brands increasingly embrace gender-neutral styles to appeal to a broader audience, irrespective of gender. 

Notably, six of the top ten men’s bags on Tmall are strategically designed to attract female consumers, reflecting a deliberate effort to expand their market reach.

The success of gender-neutral trend also indicates that consumers are increasingly open to exploring various styles and designs, regardless of gender-specific marketing.

Amid the changing dynamics of the handbag market, vintage luxury bags have staged a remarkable comeback.

Customers now prioritize investing in vintage luxury bags over premium bags from niche brands, leading to an impressive 855% YOY revenue growth for vintage luxury bags on Douyin. 

Quite similar to what happened in Japan after the asset price bubble burst in the 1990s right? 

Consumers are showing an increasing interest in classic, timeless pieces that not only exude elegance and social status, but also hold their value over time.

The final takeaway from the post-COVID handbag market is the changing nature of vintage luxury consumption.

It is no longer solely driven by consumerism; instead, pragmatism is taking center stage. Consumers are looking at vintage luxury bags as investments, recognizing their potential to appreciate in value.

Luxury brands like Hermès and Chanel have sought to reassure their target audience—the affluent class—by significantly increasing prices in recent years, creating a clearer distinction from more affordable luxury brands.

Conclusion

In conclusion, the post-COVID handbag market in China is characterized by intriguing shifts in consumer preferences and behaviors.

Affordable bags are facing headwinds, while luxury bags are on the rise. Smaller sizes and gender-neutral designs are reshaping the industry landscape. Vintage luxury bags return triumphantly, driven by a shift from consumerism to pragmatism.

These trends offer valuable insights for consumers and industry stakeholders, guiding them in navigating the evolving world of handbag fashion in China.

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 Navigating the Post-COVID Handbag Market in China: Trends and Insights appeared first on WalkTheChat.

In this report, our central focus revolves around the burgeoning Ita-Bag style, which has witnessed a consistent surge in mentions (+95% per quarter) on Xiaohongshu over the past year.

We delve into the essence of Ita Bags and explore the factors contributing to their popularity, particularly among the Gen-Z and Gen-Alpha demographics.

This analysis encompasses an in-depth examination of various facets, such as the current geographical distribution of consumers, age-specific trends, and the influential elements that mold luxury brand offerings.

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

Itabag is literally translated as “painful bag” in Japanese. It refers to bags that are adorned with an extensive array of anime or manga merchandise.

In Japanese, the word “painful” (itai) can describe an extreme devotion or obsession. Thus, these specially decorated bags, which showcase an individual’s intense passion, have come to be known by this name.

There are several ways to create your own Ita-Bag.

You can either seek the expertise of a professional Ita Bag craftsman or take the DIY route by purchasing a bag and decorating it yourself.

Chinese consumers will usually buy a bag that is easy to customize, for example, with spaces to put plush toys and badge placement. 

Although most Ita Bags are made with affordable bags, we observe some affluent young consumers embracing the practice of adorning their Chanel,  Louis Vuitton, or Dior handbags with beloved characters, proudly expressing their intense passion and distinctive personalities.

Ita Bags have found their strongest following among females from the Gen Alpha and Gen Z demographics, with a particular stronghold in affluent Southern Coastal regions, including Guangdong, Zhejiang, Shanghai, and more.

How can brands capitalize on the burgeoning trend among young and passionate consumers? Incorporating a PVC layer or transparent design provides ample room for creativity and customization, offering an enticing opportunity for brand engagement.

When it comes to materials and colors, Ita Bags in lighter shades, crafted from PVC or canvas, reign supreme among ACG enthusiasts. Denim, known for its versatility and durability, also stands out as a savvy choice for these passionate fans.

While the majority of Ita Bags are fashioned from affordable handbags, there are intriguing instances of enthusiasts transforming designer brands or luxury handbags into these unique creations.

Especially in Asian countries with a vibrant ACGN culture, incorporating Ita Bags into daily attire is far from taboo; rather, it’s embraced with enthusiasm. Young girls adore using Ita Bags as a colorful accessory to complement their cute outfits.

Besides, another common occasion for Ita Bags is Theme Parks, which resonate with people’s delightful childhoods.

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 Handbag Micro Trend: How Ita-Bag is Winning Chinese Female Gen Alpha appeared first on WalkTheChat.

In this article, we will go through the highlight of Double 11 this year on Tmall and JD, and explain the new consumption trends in China.

Tmall Double 11 Performance

Tmall announced that the GMV performance was “in line with the previous year despite Covid,” which means around 540.3 billion CNY (~84.5 billion USD at that time) in 2021.

The highlights are:

• 290,000 brands took part in 11.11 over Alibaba’s platforms, the same number as last year. 
• 1,009 Tmall Global brands’ GMV more than doubled.
• Some 70,000 brands participated for the first time, including luxury houses Bulgari, Moncler, and Brunello Cucinelli. 
• Judging from the number, some brands decided to skip Double 11 this year, or retrieved from the Chinese market facing uncertainty.
• 102 brands achieved 100 million CNY in revenue within one hour, half of which were Chinese brands.
• Mid-tier live streamers’ sales revenue grew by 250%, which is good news for brands looking for cost-effective live-streaming campaigns. 

TOP live streamers like Austin Li, Luo Yonghao, and Yu Minhong joined Taobao Livestream, boosting the overall viewership by 600% in the first hour.

Compared to last year, categories like beauty&skincare, underwear&homewear, home electronic appliances, and sports shoes perform better than last year, as consumers adjust their needs and purchases to the “dynamic zero” covid policy, which has no clear end in sight.  

JD Double 11 Performance

JD declared that they achieved a higher-than-industry growth rate and set a new record, without further details. They also revealed that high-quality products and big brands have become consumers’ favored choices across product categories.

During the first day of the official sales, we saw some initial results in JD’s efforts penetrating into the premium market: luxury category’s transactions recorded a 113% in the first 10 minutes: LVMH Group’s BVLGARI, CELINE, FENDI, and LOEWE achieved eight times last year’s sales revenue; Apple saw transaction volume jump over RMB 1 billion yuan in the first minute.

Douyin Double 11 Performance

According to Douyin, the number of merchants participating in the Douyin eCommerce Double 11 event increased by 86% year-on-year.

On the first day of the official event, Douyin eCommerce’s one-day GMV (Gross Merchandising Value) increased by 630% compared to the same period last year; ATV (Average Transaction Value) grew 217% in the first hour. The increase in consumer average spending on Douyin eCommerce aligns with our conclusion analyzing Douyin’s TOP 500 best sellers.

According to eCommerce data platform ebrun, In the 38.21 million hours of live broadcast, 7,667 live streaming rooms paid GMV exceeding one million CNY (~140k USD), and the viewership of short videos with shopping cart reached 2,937 billion.

On Douyin eCommerce, 531 products have surpassed one million CNY sales renueve. Here are some categories that did better than Douyin eCommerce’s Double 11 last year:

• makeup: +132% in daily average sales revenue
• fashion apparel, shoes and bags: +21.4% in daily average GMV
• alcohol: +174% in sales revenue
• health & nutrition: +127% in sales revenue
• parenthood & daily necessities: +100% in sales revenue
• consumer electronics & home appliances: +133% in daily average GMV

Although, the industry-level growth could be a higher number of merchants taking part in Douyin eCommerce Double 11. Each brand could tell a different story. However, we can still see the changes in consumer preference from the increase in consumer electronics & home appliances and health & nutrition. We will explain better in the next section what these changes are.

New Consumer Trends in 2023

Value-driven consumption

Chinese consumers have cooled down on impulsive purchases. Instead, they are buying products that can bring physical or emotional value and long-term returns, such as products related to health, sports & outdoors, education, and pet care, as well as services that help save their own time.

JD Health’s SDGP data showed that more than 1,600 nutrition brands doubled their YoY transaction volume, and online consultations with JD Pet Health increased 3.3 times. Over the past five years, service consumption has been expanding from family needs, to sports, health, pet care and more scenarios. Sales of life-related services increased 30 times, that of car maintenance grew 20 times, and bookings for health services were up by 7 times.

source: JD Corporate Blog

Tmall has made a similar announcement:

“Categories such as pets, haircare and outdoor recreational activities are seeing high growth on our platforms,” said Evans, who is responsible for leading and executing Alibaba’s international strategy for globalizing the company and expanding its businesses outside China.

source: Alizila

Responsible consumption

There has been a rising consciousness of responsible consumption and sustainability.

Chinese people are willing to incorporate the concept of sustainability into fashion. For example, whether a fashion item can mix and match multiple items, whether the fabric is natural and reduceable, etc. As more consumers adopt the concept of responsible purchase, minimalistic and reusable fashion items could be the next growing trend.

Douyin eCommerce data shows that 29.9% of users on Douyin pay continuous attention to environmental protection. Among these environmentalists, 83.8% agree with rational consumption, only buying products they really need and good quality; 58.0% prefer items that are more environmentally friendly during the production phase; 43.3% will purchase clothes and bags with a good design using sustainable or reducible fabrics. Therefore, growing public awareness of environmental protection makes sustainable fashion a new trend in apparel consumption.

During this year’s Double 11, Alibaba and JD promised to reduce carbon emissions by 200,000 tons and 60,000 tons, respectively.

JD Logistics estimated that during this SDGP (Single Day Grand Promotion), its green supply chain operations reduced a total of 200,000 tons of carbon, which involves 9 million uses of recyclable packages – avoiding approximately 80,000 tons of one-off packaging waste. One hundred million product packages were delivered with their original packaging boxes from the factories in collaboration with more than 20,000 brand partners.

source: JD Corporate Blog

Cultural confidence: the rise of “proudly made in China”

Proudly made in China, or China-chic (in Chinese: “国潮,” Guochao), has been a booming trend in recent years, especially among Gen-Z. Chinese consumers have stopped the blind belief that western products should be of better quality than “made-in-China.”

According to JD’s data, over the past four years, merchants featuring “China-chic“ increased 240 percent, the amount of products increased 99 percent and new brands under this category grew by 68 percent. On the consumer’s side, shoppers of these products increased 90 percent, and sales were up by 284 percent. SDGP (Single’s Day Grand Promotion) data shows that sales of products with “China-chic” elements increased 124 percent YoY.  

source: JD Corporate Blog

The same happens on Douyin: domestic brands have occupied over 90% of the Top 100 best-selling products. Domestic products have clear dominance among categories such as home appliances, makeup, women’s apparel, and food & beverages. In beauty & skincare, international brands like the History of (后), Estee Lauder, and L’Oreal are still at the TOP3. As for the sports shoe category, Nike and Adidas still rank at the TOP2 despite Chinese consumers’ and celebrities’ boycotts due to the brand’s action against Xinjiang cotton.

Conclusion

Chinese consumers are really changing, and international brands need to lean into that change. As a result, people have switched to a more rational, qualitative, and self-fulfilling consumption.

For brands operating in China for a few years, it’s high time we focus more on quality and customer loyalty than pure quantity. As China’s population and economic growth slow down, the demographic dividend is desappearing.

In the new consumption era, brands need to stay solid in their niche positioning while strengthening the emotional connection with their clients or followers. When we talk about the target audience, we need to see the actual person behind the data or number.

Feel free to reach out to us for a tailored consultation for your brand in China.

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Chinese Consumer Confidence vs. Global Level

Chinese consumer confidence continues its decline

According to data from Ipsos, Chinese consumer confidence has reported a 69.8 in October 2022, a further decrease of -0.8 compared to last month. The score dropped to the same level as in January 2020 when COVID first hit hard in Wuhan.

But still rank as No.1 in global consumer sentiment

Global consumer sentiment has continuously weakened over the past eight months, with an average pessimistic overview scoring at 45.6. China, although not at its best time, still holds the No.1 position (69.8), followed by Saudi Arabia (69.5) and India (64.3). These are the only three countries scoring above 60.

Australia (53.0), the U.S. (50.9), and Brazil (50.4) are also above the 50-point mark, showing a somehow neutral economic outlook; while European countries look more pessimistic in general. The energy crisis, increased production costs, inflation, war in Ukraine, and serious concerns about the global stability have been rising.

Consumption Trends

Consumption is also not optimistic. During the “Golden Week” Holiday this year, 422 million people traveled, a further decrease of 18% from last year. Touristic revenue also dropped by 26%, which means less than half (44%) of the pre-covid level in 2019.

Many Chinese families chose “staycation” or “traveling” without leaving the city (going to parks or nearby camping) to avoid the risk of being held in random lockdowns that could disrupt the holidays. The strict restriction is not a huge surprise considering the upcoming Party Congress this month. Although, with the ongoing “zero covid” policy, it’s unlikely to have a “revenge consumption” like two years ago. Chinese people have turned to a more rational lifestyle, trying to save more money to face future uncertainty.

The same trend is happening in consumer’s online purchases. Take the Bag category, for example; the sales revenue and growth rate continued to shrink during September. Almost half of the sales (44.23%) come from the Women’s Bag sub-category, but the revenue has dropped by -39% compared to last month. 

The same is happening with suitcase category for understandable reasons.

On the contrary, the sub-category Bags for Travel has shown an encouraging growth of +3.9%. As people chose nearby destinations for trips, demands for bags that could fit a lot of utilities but were not as big as suitcases increased. However, this niche category only represents less than 1% of the total sales in the bag category. It could be a growth opportunity to add to your brand’s collection, but it won’t change the whole picture.

Learn more about trends in bag industry:

• Red(Xiaohongshu) Marketing: Opportunities and Suggestions for Niche Bag Brands

It’s not an easy time for big international names neither. Premium and luxury brands have also suffered descending sales: GUCCI (-30.9%), COACH outlet (-22.38%), Charles Keith (-18.41%), Saint Laurent (-30.32%). MICHAEL KORS was the only brand that achieved growth in the Top10 ranking.

Conclusion

It’s high time that brands carefully review their investment and overall strategy in China. As consumers and investors turn towards a more rational and risk-averse direction, international brands need to spend every coin with more caution and focus on marketing efforts that can bring value.

Thank you for your attention reading till here. If you want a customized consultation for your brand, feel free to leave us a message below, and we will be in touch with you soon.

The post Chinese Consumer Confidence & Consumption Drops: How should brand react? appeared first on WalkTheChat.

In this article, we will look at:

• Chinese New Middle-Class definition, size, and growth rate
• Audience insight: distribution, consumption capacity, and characteristics
• How to reach the Chinese New Middle-Class online?

Who are the New Middle-Class in China?

The new middle-class population in China has the following characteristics:

• Age: individuals between 25 and 40 years old
• City: living in third-tier cities and above
• Consumption willingness: medium & high willingness to spend online
• Consumption capacity: online spending power exceeding 1,000 CNY or more
• Tech savvy: in average, they use 33.3 different APPs per person per month, far exceeding the 26.9 APPs of the Internet average

As of July 2022, the “new middle-class” has grown to represent 13.7% of the total netizen population. It’s growing at 15.6% year-on-year and reached 163 million this year.

If we look into the details, things are getting more interesting:

Among Millennials, the Post-90s (people born between 1990 and 1999) are growing faster than the Post-80s (people born between 1980 and 1989). However, the post-90s generation is gaining more consumption capacity. Among them, 16.4% are considered users with high online consumption capacity (spend more than 3,000 CNY online).

Why does the Post-90s look more promising? That’s because they have been in the labor market for some years, so their income has risen. But, in contrast to the Post-80s, they have not yet shouldered the burden of caring for the whole family, mortgages of apartments or cars, etc, so they have more freedom and willingness to spend online.

Where is the New Middle-Class located in China?

Without a doubt, Tier-1 cities like Beijing, Shanghai, Guangzhou, etc, have the highest percentage of new middle-class. Surprising, Chongqing and Suzhou are also on the TOP5 list, leaving Shenzhen and Chengdu at TOP 6 and TOP 7.

More than one quarter (26.7%) of the New Middle-Class in China are living in the ten cities in below chart:

How to reach the Chinese New Middle-Class online?

The new middle-class are tech-savvy, so content-oriented social media such as Douyin and Red (Xiaohongshu) has become one of their primary source of information and entertainment.

For example, China’s new middle-class spends more than double the time (+107.8%) on Red (Xiaohongshu) than last year. The rapid growth is because Red, as a pan-lifestyle platform, has become the source of inspiration and research for people who pursue a better quality of life. The typical exquisite content and influencers on Red are the benchmark for many new middle-class people in China. Working with Red influencers is an intelligent way to gather market feedback and improve brand awareness. 

Learn more about Red marketing: Little Red Book (Xiaohongshu) Marketing – A Complete Guide

In terms of pure usage time, Douyin is still the platform on which people spend most of their time. Because of the entertainment feature of Douyin content and the short-video format, people tend to spend more time on Douyin without noticing. The prolonged usage time and entertaining atmosphere on Douyin make it a perfect platform for advertising: while being entertained, people are more likely to accept a piece of advertisement. 

Learn more about social media advertising in China: China Social Ads: how to run effective ads on WeChat, Douyin, and Red

Wondering how to reach your potential customers in China? Just fill in the 1-minute form below, and we will be in touch with you!

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