4 Trends Shaping Retail and Consumer Products In China
China’s leading global e-commerce market is perhaps one of the most dynamic retail markets in the world.
According to statistics, retail e-commerce sales in China were around 600 billion US dollars. This figure is expected to rise in the coming years reaching almost 956 billion US dollars in revenue.
As a foreign business looking to capture the Chinese market, follow these top trends in the retail and consumers products sector in China.
Online Meets Offline (O2O)
A PwC report shows that there are more online shoppers than consumers who buy in-store products from malls and shops.
Online-to-offline (O2O) marketing offers a digital experience of shopping online and then physically going to the stores to pick up the orders.
While it’s a popular tactic amongst 31% of the consumers, the sales, growth, profits, and costs are hard to track.
Businesses are now turning to Omni-channel marketing strategies that improve customer experiences while increasing overall operational efficiency and profitability.
Brands like IKEA and Uniqlo have launched their click-and-collect service in China which guarantees inventory management and execute peak sale seasons effectively.
Entertainment Driven E-Commerce
Most Chinese consumers don’t just use retail websites to purchase products. PwC survey has found that 61% of Chinese consumers use B2c e-commerce sites like Alibaba’s Tmall.
Customers search for the best deals and compare prices of different brands with the help of Tmall’s videos, games, virtual reality, and competitions and live streaming from key opinion leaders.
From providing virtual tours of stores to live streaming a fashion show, foreign brands like Macy’s and Zara are changing the e-commerce experience to more entertainment-driven.
Rise Of Chinese Influencers – Key Opinion Leaders (KOL)
Chinese influencers range from popular celebrities to social media personalities that have WeChat (Chinese Facebook) and Weibo (Chinese Twitter) accounts.
Publishing in-depth article, blog, and videos reviewing products and services attract attention and sways consumer choices.
Influencers also engage with customers through live streaming. A Deloitte report concluded that live streaming videos are set to boost the e-commerce market with 4.4 billion US dollars earned in direct revenue.
Community Driven Engagement–Sports and Wellness
Chinese companies have strategically used community engagement programs to further their global market share in the sportswear industry.
Foreign brands like Nike and Adidas gained momentum in the Chinese market in the year 2015. A test-and-learn strategy was created to increase demand through limited hour showrooms and assorted products reviewed and rated by key opinion leaders (KOL)
Alibaba’s launch of AliSports in 2015 increased online sales using custom content to leverage customer engagement through events and media campaigns.
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