Mailman X Business Weekly | June 28th
Here is China’s top tourism business news that you need to know from this week:
Cartier, Bulgari and other luxury brands are flocking to WeChat
According to a new report from market research firm Gartner L2, 60% of the fashion luxury brands it surveyed have at least one WeChat store, surging from just 36% in 2018. “I think WeChat is finally becoming what it’s supposed to be for luxury brands, which is not just a social media app,” Mauron told TechCrunch over a phone interview. “One [function] could be for customers to buy the product. Another could be for brands to build a loyalty program. Customers can pre-order a product or set up an appointment with the [offline] store.” Read more here.
Tencent’s WeChat seems to be updating its capabilities on a monthly basis, quickly transforming from a one-to-one messaging app to a way of life or “all-in-one” ecosystem. It is important for marketers to understand the vast options when building their WeChat strategy. We see far too many marketers and organizations jumping to have a WeChat channel without the proper strategy or understanding of the purpose it serves for the organization. In most cases, WeChat is replacing websites but it is much more than that: e-commerce platform, loyalty program, CRM database, social media platform, gaming app and much more. The key to WeChat is first understanding your goals and developing something that meets those goals. Don’t look at WeChat as simply a social media platform.
Also this week:
The State of Digital Transformation in China Vs. the rest of the world
In China’s distinct and fast evolving landscape, digital transformation is directly tied to agility and innovation. In China, digital transformation is increasingly led by the CEO. Forty-two percent of the companies in China said that their steering committee for digital transformation is led directly by the CEO, which is significantly higher than in other countries at 29%. Read more here.
How Can PR Breakdown Stereotypes & Change Behavior?
“Brand managers, primarily with Western backgrounds, believe they understand what China looks like based on the last 300 years of Chinese culture, not really what China was for thousands of years,” Dudarenok said. That and the relatively sudden rise of the Chinese consumer has given rise to a number of stereotypes — that Chinese either have no money or are drowning in it. Read more here
China’s Influencer Incubator
Ruhnn Holding, one of China’s largest key opinion leader (KOL) – or influencer – management companies. Ruhnn, which launched a $125m initial public offering in April, also invests a small amount to see whether a wider audience is interested: they’ll spend 2,000 yuan (£229, $290) on advertising to direct 10,000 people to each amateur’s accounts. If the new audience sticks around, Ruhnn feels more confident about backing the individual. Read more here.
Why is digital an indispensable medium for marketers and brands today?
The journey starts with online research and ends with sharing memories and experiences on social platforms. Due to this high level of involvement and engagement on digital platforms, internet advertising is the preferred choice for auto brands. The future of digital marketing is difficult to predict because of its continuous evolving character. However, the trend is towards meaningful content and influencer marketing. Read more here.
China’s Virtual Reality Market is set to expand driven by increased policy support and 5G network rollout.
The latest announcement comes as the country prepares for the roll-out of next-generation mobile networks, following the government’s recent award of commercial 5G licenses to China Mobile, China Unicom, China Telecom and the China Broadcasting Network. By 2020, China wants to initially establish a basic domestic VR supply chain. The country aims to have key VR patents, industry standards, and globally competitive VR companies by 2025. Read more here.
How Germany’s First Digital Soccer Club Scores in China
The trio decided that TC Freisenbruch should become the first digital club in Germany where the supporters make all the decisions – from transfers to line-up to budget. And not at general meetings, but online – at any time! Read more here.
Economic Watch: China’s FMCG market stays robust amid the evolving retail landscape
31-year-old financial professional in Beijing spent about one-fifth of her monthly salary on cosmetic products during the mid-year online shopping festival. “Brand names matter less to me now. Premium quality doesn’t necessarily come with expensive price tags,” Read more here.
Mailman X is a China digital consulting agency for the travel industry. Reach out here for more information.