Mailman X Business Weekly | April 5, 2019
Here is China’s top tourism business news that you need to know from this week:
The Chinese Economy is Stabilizing
I was surprised by how cheerful people I met were, especially in Shanghai, China’s financial capital. This greater optimism seems to be in line with the evidence for early 2019. Fulcrum “nowcasts” show recent growth rates in line with the government’s target of 6-6.5 percent for the year. Similarly, Goldman Sachs has economic growth up to 5.8 percent in February. One reason for renewed optimism is the belief that a trade deal with the US is imminent. Read more here.
The renewed enthusiasm in the Chinese economy is coming from three main factors. First, there is a belief that the agreement between the US and China will be signed and tariffs will be under control again. Second, there is a credit reform coming to China, where the government is putting a lot of attention on providing equal opportunities on enterprises and lowering the cost of money borrowing. Third, Xi Jinping is publicly becoming more supportive of the private sector and entrepreneurship. Although the outlook of the Chinese economy looks very positive there are always some concerns as stated in the opinion piece. It is important to understand the underlying factors as the world economy shifts and we begin to see positive energy coming out of the Chinese economy.
Also this week:
Digital agency Mailman launches SE Asia operations with Singapore office
Sports-focused digital marketing agency Mailman has started its South East Asia operations with an office in Singapore. The office will be headed by Bima Said as vice president of Asia. Said was formerly head of Asia at Goal.com. Dedicated country managers have been hired for key markets like India, Thailand, Vietnam, and Indonesia. Read more here.
Taobao Doubles Down on Livestreaming with Taobao Live Plan
Taobao Live, the live-streaming unit of its consumer-to-consumer (C2C) platform, is aiming to expand its business in 2019 to 10 product categories with annual sales volume of more than RMB 100 million (around $15 million) each and 200 Taobao live-stream virtual shopping rooms with an annual transaction value of RMB 100 million each, Wen Zhong, director of Taobao’s content e-commerce department, announced at the Taobao Live Gala held on Saturday in Hangzhou. Read more here.
The Cost of Ignoring China’s ad Dragons
“There is a tendency for American companies to perceive the U.S. as being at the forefront of technological innovation due to the success of the likes of Amazon, Facebook and Google,” Miranda Dimopoulos, regional CEO, IAB Southeast Asia and India Limited, tells me. “However, in terms of super app development, the U.S. is now behind Asia, and China in particular…” Read more here.
Increasing the effectiveness of PR Agency Partnerships in China
The increasingly fluid boundaries between PR and marketing have extended responsibility on the client side and made it more complex. PR agencies need to prove their ability to deliver diversified services that go beyond traditional communications, and though this trend is occurring worldwide, in a market like China, which is at the heart of digital transformation, digital-first strategies and switched-on local talent is essential. Read more here.
As Facebook Looks to Wechat, China’s Digital World is Wowing the West
This is not only a new direction for an internet giant that influences social media and the wider culture, but it’s also the first time that a Silicon Valley tech tycoon is indicating that a Chinese digital ecosystem is worth learning from and emulating. Read more here.
Big in China: Tom Hiddlelston’s Ad Becomes a Hit on Asian Social Media
The video, filmed from the audience’s point of view to make it look as if Hiddelston was addressing them directly, shows the actor cooking breakfast for the mystery woman before reminding her to take her Centrum in Mandarin. Read more and watch the ad here
Traditional Marketing no longer works in China
When we work with luxury brands that try to launch or accelerate their business in China, we first assess brand positioning by looking for gaps and building a compelling brand story that resonates with Chinese consumers. This is used to validate and strengthen the brand equity so we have a base for all subsequent marketing measures. Only after that, we can implement real-time data monitoring, so that we can see immediately if a brand moves in the right direction or not. When needed, corrective measures are deployed. Read more here.
Ruhnn, a Chinese startup that makes influencers, raises $125M in U.S. IPO
Ruhnn, a company that enables influencers to sell through e-commerce and is plotting to change the face of China’s fashion industry, has raised $125 million after it listed on the Nasdaq on Wednesday. Read more here.
‘Sneaker Culture’ steps into cross-cultural role between U.S., China
“It may sound crazy, but we see ourselves as kind of cultural ambassadors creating bridges between the U.S. and China,” Jiahuan Xia, a partner and co-founder of SoleStage, a leading limited edition sneaker reseller, told Xinhua Sunday. “Nothing communicates better across cultures than a shared passion.” Read more here.
Mailman X is a China digital consulting agency for the travel industry. Reach out here for more information.