Category: Topics

Categories
Topics

How to Adapt Global Social Media Marketing Strategies from Facebook, X, Instagram, and Others for Success in the Chinese Market

Introduction

As international companies venture into the Chinese market, one of the most significant challenges they face is navigating the stark differences between Western and Chinese social media landscapes. Global giants like Facebook, X (formerly Twitter), and Instagram are pillars of social media marketing strategies worldwide, yet they are inaccessible in China due to the country’s strict internet regulations. Instead, the Chinese digital ecosystem is dominated by platforms such as WeChat, Weibo, Douyin (TikTok’s Chinese counterpart), and Little Red Book (Xiaohongshu). These platforms operate within a vastly different cultural, social, and technological environment, necessitating a tailored approach for companies seeking to establish a strong presence in China.

In this article, we will explore the fundamental differences between international and Chinese social media platforms, examine the unique characteristics of Chinese social media marketing, and provide actionable strategies for adapting successful Western social media marketing practices to the Chinese market. Additionally, we will discuss how companies can blend these global experiences with the specific behaviors and preferences of Chinese consumers to create highly effective, locally optimized social media marketing strategies.

The Fundamental Differences Between Western and Chinese Social Media

Understanding the core differences between Western social media platforms and their Chinese counterparts is crucial for developing a successful marketing strategy in China. While platforms like Facebook, X, and Instagram emphasize global connectivity, self-expression, and user-generated content, Chinese platforms focus on community-building, e-commerce integration, and seamless user experiences within a closed ecosystem.

  1. Platform Ecosystem and Integration:
    • Western Platforms: Social media in the West is typically more fragmented, with different platforms serving distinct purposes—Facebook for social networking, X for microblogging, Instagram for visual content, etc. Users often switch between these platforms depending on their needs.
    • Chinese Platforms: Chinese social media platforms are designed to be all-encompassing ecosystems. For example, WeChat is not just a messaging app; it also functions as a payment platform, news portal, mini-program host, and social networking site all rolled into one. This integration offers a more holistic user experience, reducing the need for users to switch between apps.
  2. Content Consumption and Creation:
    • Western Platforms: Users on platforms like Instagram and X are primarily content consumers. They browse through feeds, engage with posts, and occasionally create content. The focus is often on individual self-expression and global trends.
    • Chinese Platforms: In contrast, Chinese platforms place a strong emphasis on content creation and community engagement. Douyin, for example, encourages users to participate in trends through short video challenges, fostering a highly interactive environment. The content is more localized, with a focus on trends that resonate specifically with Chinese culture and values.
  3. E-commerce Integration:
    • Western Platforms: While e-commerce features are present on platforms like Instagram (e.g., shoppable posts), they are not the primary focus. The social media experience is still largely about social interaction, with e-commerce as an additional feature.
    • Chinese Platforms: E-commerce is deeply integrated into the social media experience. Platforms like WeChat and Xiaohongshu seamlessly blend social interaction with shopping, allowing users to make purchases directly within the app. This integration is a key driver of consumer behavior in China, making social commerce a critical aspect of any marketing strategy.
  4. Government Regulation and Censorship:
    • Western Platforms: While content moderation exists, it is generally less stringent, and platforms operate with a higher degree of freedom. However, recent years have seen increased scrutiny and regulation, particularly around issues of misinformation and data privacy.
    • Chinese Platforms: In China, government regulations play a significant role in shaping social media platforms. Content is heavily monitored, and censorship is common. Brands need to be acutely aware of the regulations and cultural sensitivities when crafting their social media strategies to avoid potential pitfalls.

Adapting Global Social Media Strategies for the Chinese Market

Given the differences outlined above, it is clear that international companies cannot simply transplant their Western social media strategies into the Chinese market. Instead, they must develop a localized approach that accounts for the unique characteristics of Chinese platforms and the behaviors of Chinese consumers.

  1. Leveraging All-in-One Platforms like WeChat:
    • Strategy: WeChat’s versatility makes it an indispensable tool for marketing in China. Brands should create official WeChat accounts to engage with users through content, customer service, and direct sales. Utilizing WeChat mini-programs can enhance the user experience by offering interactive features, loyalty programs, and exclusive content, all within the app.
    • Example: Nike leveraged WeChat mini-programs to launch a personalized experience where users could customize their shoes, share designs with friends, and purchase directly within the app. This approach not only drove sales but also strengthened brand loyalty by creating a unique and engaging user experience.
  2. Creating Culturally Relevant Content on Douyin and Xiaohongshu:
    • Strategy: Content on Chinese platforms must resonate with local culture and trends. On Douyin, brands should focus on short, creative videos that tap into trending challenges or themes. Xiaohongshu, known for its user-generated content and community-driven recommendations, is ideal for product reviews, tutorials, and lifestyle content.
    • Example: Starbucks successfully utilized Douyin by creating a series of short videos that featured their seasonal drinks in a fun and playful manner, aligning with local trends. On Xiaohongshu, they encouraged users to share their coffee experiences, leading to organic growth in brand mentions and user engagement.
  3. Integrating E-commerce with Social Media:
    • Strategy: Given the deep integration of e-commerce in Chinese social media, brands should prioritize social commerce. This involves setting up storefronts on platforms like WeChat and Xiaohongshu, using live-streaming for product launches, and encouraging user-generated content that drives purchase intent.
    • Example: Estee Lauder used Xiaohongshu to launch a new product, combining influencer reviews with a direct purchase link. They also ran a WeChat campaign where users could unlock exclusive discounts by sharing the product with friends, effectively turning customers into brand advocates.
  4. Navigating Regulations and Cultural Sensitivities:
    • Strategy: Understanding and complying with local regulations is critical. Brands must ensure that their content aligns with Chinese laws and cultural norms. This includes avoiding politically sensitive topics and being mindful of the cultural context in which their content is consumed.
    • Example: Apple’s “Shot on iPhone” campaign in China featured visually stunning photos and videos shot by Chinese users. The content celebrated local culture and was carefully curated to resonate with Chinese audiences while adhering to regulatory requirements.
  5. Building and Engaging Communities:
    • Strategy: Community-building is a powerful tool in the Chinese market. Brands should focus on creating communities around their products or services on platforms like WeChat and Xiaohongshu. These communities can be nurtured through exclusive content, events, and personalized interactions.
    • Example: Lululemon successfully built a community of fitness enthusiasts on WeChat by offering exclusive content, organizing offline events, and creating mini-programs that allowed users to track their workouts. This community-driven approach helped Lululemon establish a strong brand presence in China.
  6. Utilizing Influencer Marketing (KOLs and KOCs):
    • Strategy: Influencer marketing, or Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs), plays a crucial role in Chinese social media marketing. Brands should collaborate with influencers who align with their brand values and have a strong connection with their target audience.
    • Example: Luxury brand Gucci partnered with popular Chinese fashion influencers on Weibo and Xiaohongshu to showcase their latest collection. These influencers created authentic content that resonated with their followers, driving significant engagement and sales.

Blending Global Experiences with Local Insights

While adapting to the Chinese social media landscape is essential, international companies can also draw from their global experiences to enhance their strategies in China. The key lies in finding common ground between global best practices and local consumer behaviors.

  1. Storytelling with a Local Twist:
    • Strategy: Storytelling is a powerful marketing tool globally, but in China, it must be done with a local twist. Brands should craft narratives that incorporate Chinese cultural elements, values, and current events, making their stories more relatable to Chinese consumers.
    • Example: Coca-Cola’s “Share a Coke” campaign was adapted for the Chinese market by featuring popular Chinese names and phrases on their bottles. This personalization resonated with Chinese consumers, leading to a surge in sales and brand engagement.
  2. Data-Driven Personalization:
    • Strategy: Personalization is crucial in both Western and Chinese markets. However, in China, the approach to data-driven personalization should account for the vast amount of data generated by all-in-one platforms like WeChat. Brands should use this data to deliver highly targeted and relevant content to different consumer segments.
    • Example: Adidas used data from WeChat to personalize content and offers for different customer segments based on their purchase history and engagement levels. This approach increased customer retention and drove higher conversion rates.
  3. Agility and Adaptability:
    • Strategy: The fast-paced nature of Chinese social media requires brands to be agile and adaptable. Marketing strategies should be continuously monitored and adjusted based on real-time data and feedback.
    • Example: During the 11.11 Shopping Festival, many international brands quickly adapted their strategies based on live data. For instance, they adjusted pricing, launched flash sales, and increased ad spend on platforms like Tmall and JD.com to maximize their visibility and sales during the event.

Conclusion

Successfully entering the Chinese market requiresa deep understanding of the local social media landscape and a willingness to adapt global strategies to meet the unique demands of Chinese consumers. While the platforms and user behaviors in China differ significantly from those in the West, the core principles of social media marketing—engagement, storytelling, community-building, and data-driven decision-making—remain relevant.

By leveraging the all-in-one capabilities of platforms like WeChat, creating culturally resonant content on Douyin and Xiaohongshu, integrating e-commerce with social interactions, and navigating regulatory landscapes carefully, international companies can build a robust social media presence in China. Additionally, blending these localized strategies with global best practices, such as storytelling, personalization, and agility, can lead to a more comprehensive and effective marketing approach.

To summarize, the key strategies for adapting Western social media marketing experiences to the Chinese market are:

  1. Leverage All-in-One Platforms: Utilize WeChat’s diverse functionalities to create a seamless user experience that integrates content, customer service, and e-commerce.
  2. Create Culturally Relevant Content: Tailor content to resonate with Chinese cultural values and trends, particularly on platforms like Douyin and Xiaohongshu.
  3. Integrate E-commerce and Social Media: Take advantage of the deep integration of e-commerce within Chinese social media platforms to drive sales directly from social interactions.
  4. Navigate Regulations with Care: Ensure compliance with Chinese regulations and cultural norms to avoid pitfalls and build trust with Chinese consumers.
  5. Build Engaged Communities: Foster communities around your brand on platforms like WeChat and Xiaohongshu through exclusive content, events, and personalized interactions.
  6. Utilize Influencer Marketing: Partner with KOLs and KOCs who have a strong connection with your target audience to drive engagement and credibility.
  7. Blend Global Best Practices with Local Insights: Adapt global strategies like storytelling and personalization to the Chinese context, while maintaining agility to respond to the fast-paced nature of the Chinese market.

Real-World Success Stories

To further illustrate these strategies, let’s look at some real-world examples of international companies that have successfully adapted their social media marketing strategies for the Chinese market:

  1. Nike’s WeChat Strategy:Nike has effectively leveraged WeChat’s mini-programs to create personalized experiences for Chinese consumers. Through these mini-programs, users can design their custom sneakers, share their creations with friends, and even purchase them directly within the app. Nike also uses WeChat to send personalized workout tips, event invitations, and product recommendations based on user data, creating a highly tailored and engaging customer journey.
  2. Starbucks on Xiaohongshu:Starbucks has used Xiaohongshu to tap into the platform’s community-driven content creation. By encouraging users to share their coffee experiences, recipes, and store visits, Starbucks has built a strong brand presence on the platform. The company also collaborates with influencers to create content that resonates with local trends, such as showcasing limited-edition drinks that cater to Chinese tastes.
  3. Apple’s Localized Campaigns:Apple’s “Shot on iPhone” campaign was adapted for the Chinese market by featuring photos and videos taken by Chinese users in locations across China. This localized content celebrated Chinese culture and landscapes, creating a strong emotional connection with local consumers. Apple also navigated Chinese regulations by ensuring that the content was culturally appropriate and aligned with local norms.
  4. Adidas and Data-Driven Personalization:Adidas has successfully used data-driven personalization on WeChat to engage different customer segments. By analyzing user data, Adidas tailors its content, offers, and communication to match the preferences and behaviors of various consumer groups. This personalized approach has led to higher engagement and conversion rates, demonstrating the power of data in driving social media success in China.
  5. Gucci’s KOL Strategy:Gucci has embraced influencer marketing in China by partnering with popular fashion influencers on platforms like Weibo and Xiaohongshu. These influencers create authentic content that showcases Gucci’s products in a way that resonates with their followers. By aligning with influencers who embody the brand’s values and aesthetics, Gucci has been able to drive significant engagement and sales among Chinese consumers.

Final Thoughts

The Chinese social media landscape presents both challenges and opportunities for international companies. While the platforms and consumer behaviors may differ from those in the West, the underlying principles of effective social media marketing remain consistent. By understanding the unique characteristics of Chinese social media, adapting global strategies to fit the local context, and leveraging the strengths of platforms like WeChat, Douyin, and Xiaohongshu, companies can build a strong social media presence in China.

Moreover, blending these localized strategies with global best practices allows companies to create a comprehensive and adaptable approach that not only meets the needs of Chinese consumers but also enhances their overall brand strength and market presence. As the Chinese digital ecosystem continues to evolve, staying agile, informed, and culturally attuned will be key to long-term success.

For decision-makers and marketing leaders of international companies, this means investing in local expertise, continuously monitoring the shifting social media landscape, and being open to experimenting with new strategies that blend global experiences with local insights. With the right approach, the Chinese market offers immense potential for growth and success in the digital age.

Categories
Topics

How to Adapt International Email Marketing Experience to the Chinese Market

Introduction

Email marketing is a cornerstone of digital marketing strategies worldwide, known for its ability to drive engagement, nurture leads, and generate significant returns on investment. However, when entering the Chinese market, international companies often encounter a distinct challenge: the cultural and technological landscape in China does not prioritize email usage in the same way as Western markets. With China’s unique digital ecosystem dominated by super apps like WeChat, Weibo, and the burgeoning influence of e-commerce giants like Alibaba and JD.com, traditional email marketing strategies must be rethought and adapted to resonate with Chinese consumers.

This article aims to bridge the gap between international email marketing practices and the unique requirements of the Chinese market. It will guide decision-makers and marketing professionals through the process of adapting their tried-and-tested email marketing techniques to China’s digital environment, drawing parallels between the core principles of email marketing and similar strategies that can be effectively employed in China.

Understanding the Chinese Digital Ecosystem

1. The Lack of Email Culture in China

Unlike in Western markets, where email is a primary mode of communication for both personal and professional interactions, email usage in China is relatively limited. Chinese consumers generally prefer instant messaging apps like WeChat for personal communication, and social media platforms such as Weibo for information and updates. This preference is deeply ingrained in the culture, where the rapid pace of communication offered by these platforms aligns more closely with the expectations of Chinese users.

Moreover, China’s digital landscape is shaped by a high degree of mobile internet penetration. With over 1 billion internet users, most of whom access the internet primarily through mobile devices, the emphasis is on apps that offer integrated services, including messaging, payments, social networking, and e-commerce. In this environment, traditional email marketing struggles to find its place, making it crucial for foreign companies to adapt their strategies to local preferences.

2. The Role of Super Apps and Social Media

Super apps like WeChat and Alipay are at the heart of China’s digital ecosystem. These platforms allow users to perform a wide range of activities—from chatting with friends and family, making payments, booking services, to even managing investments—all within a single app. WeChat, in particular, has become a dominant force in the Chinese market, with its ecosystem encompassing not just messaging, but also WeChat Official Accounts (akin to newsletters or blogs), WeChat Mini Programs (which function like apps within the app), and WeChat Pay.

Social media platforms like Weibo and Xiaohongshu (Little Red Book) also play a critical role in consumer engagement, serving as hubs for brand interaction, content consumption, and e-commerce. For marketers, these platforms offer rich opportunities to engage with consumers through content marketing, influencer partnerships, and social commerce.

Adapting Email Marketing Principles to China

Given the different landscape, how can international companies effectively apply the principles of email marketing within the Chinese market? The answer lies in understanding the core objectives of email marketing—engagement, nurturing leads, and conversion—and finding parallel strategies within China’s digital platforms that serve the same purpose.

1. Engagement: From Newsletters to WeChat Official Accounts

In Western markets, newsletters are a common tool for engaging with consumers. They offer a direct line to the consumer’s inbox, allowing brands to share updates, promotions, and personalized content. In China, WeChat Official Accounts serve a similar function. These accounts allow brands to push content directly to followers, much like a newsletter, but within the WeChat ecosystem where users are already highly active.

WeChat Official Accounts can be categorized into Subscription Accounts and Service Accounts. Subscription Accounts are akin to newsletters, where content is pushed daily to followers. Service Accounts, on the other hand, offer more functionality, including customer service, e-commerce integration, and more personalized communication, though they are limited to four messages per month.

Case Study: A global luxury brand looking to engage with Chinese consumers might leverage a WeChat Service Account to provide personalized content, updates on new collections, and exclusive offers. The account could also offer a seamless shopping experience by integrating with WeChat Pay and Mini Programs, allowing users to purchase directly from within WeChat.

2. Nurturing Leads: From Drip Campaigns to Mini Programs

Drip email campaigns are a staple in Western digital marketing, designed to nurture leads through a series of automated emails that deliver targeted content based on user behavior and preferences. In China, similar nurturing can be achieved through WeChat Mini Programs and interactive content on platforms like Weibo and Douyin (TikTok’s counterpart in China).

WeChat Mini Programs offer a lightweight, app-like experience within WeChat, where brands can engage users with interactive content, loyalty programs, and personalized experiences. These programs can be tailored to guide users through a customer journey, from awareness to conversion, much like a drip campaign.

Case Study: A global travel company could create a WeChat Mini Program that offers personalized travel itineraries based on user preferences. As users interact with the program, they receive tailored recommendations and special offers, nurturing them towards booking a trip through the platform.

3. Conversion: From Email Offers to Flash Sales on Social Commerce Platforms

In email marketing, conversion often involves sending targeted offers, discounts, or product recommendations that encourage the recipient to make a purchase. In China, conversion tactics are often centered around social commerce platforms like Xiaohongshu, Pinduoduo, and Taobao Live. These platforms combine social interaction with e-commerce, allowing users to discover products through influencers, live streaming, and user-generated content.

Flash sales, group buying deals, and limited-time offers are common tactics used on these platforms to drive conversions. By creating a sense of urgency and leveraging social proof, brands can encourage users to make purchases directly on the platform.

Case Study: An international beauty brand might collaborate with influencers on Xiaohongshu to promote a flash sale of a new product line. The sale could be supported by user reviews, tutorials, and live streaming events, all aimed at driving immediate conversions.

Lessons from Successful Adaptations

1. Spotify’s Integration with WeChat

When Spotify entered the Chinese market, it faced the challenge of adapting its email-based engagement strategy to a market where email is not the primary communication tool. To overcome this, Spotify integrated its user engagement efforts with WeChat. By creating a WeChat Official Account, Spotify was able to send personalized music recommendations, updates, and promotional offers directly to users within the app, effectively replacing traditional email newsletters.

Spotify also leveraged WeChat’s social sharing features, allowing users to share their favorite songs and playlists with friends, thereby enhancing brand visibility and engagement through word-of-mouth.

2. Airbnb’s Use of WeChat Mini Programs

Airbnb’s success in China can be attributed to its ability to localize its marketing strategies. Recognizing that traditional email marketing would not be as effective, Airbnb developed a WeChat Mini Program that offered a localized and user-friendly experience. The Mini Program allowed users to browse listings, book accommodations, and even access customer support, all within the WeChat ecosystem.

Airbnb also used WeChat to run targeted campaigns, offering exclusive discounts and promotions to users who engaged with the Mini Program, driving both engagement and conversions.

Strategic Recommendations for Adapting Email Marketing to China

1. Leverage Data and Personalization

Just as email marketing relies on data to segment audiences and deliver personalized content, so too should your Chinese marketing efforts. Leverage the vast amounts of data available through platforms like WeChat, Alibaba, and JD.com to understand your audience’s preferences, behaviors, and purchasing patterns. Use this data to deliver highly personalized content, whether through WeChat Official Accounts, Mini Programs, or social commerce platforms.

2. Embrace Social Commerce

Social commerce is a dominant force in China’s digital landscape, and integrating your marketing efforts with these platforms is crucial for success. Consider how you can replicate the personalized, targeted nature of email offers through social commerce. This could involve partnering with influencers, creating shoppable content, or running time-sensitive promotions that encourage immediate action.

3. Focus on Mobile-First Strategies

With the majority of Chinese consumers accessing the internet through mobile devices, your marketing strategies should be mobile-first. Ensure that all content, from WeChat messages to Mini Programs, is optimized for mobile. This not only enhances the user experience but also aligns with the way Chinese consumers interact with digital content.

4. Build a Strong Omnichannel Presence

While email may not be the primary channel in China, building an omnichannel presence is essential. Integrate your efforts across WeChat, social media, e-commerce platforms, and offline touchpoints to create a cohesive and seamless customer experience. This approach ensures that you can reach your audience wherever they are, with consistent messaging and branding.

Conclusion: Adapting Core Principles to New Contexts

While the tools and platforms may differ, the core principles of email marketing—engagement, nurturing leads, and driving conversions—remain relevant in the Chinese market. By understanding the unique digital landscape in China and strategically adapting your approach, you can effectively translate the success of your international email marketing efforts to this new context.

China’s digital ecosystem offers a wealth of opportunities for brands willing to embrace its nuances and innovate. By leveraging platforms like WeChat, integrating social commerce, and focusing on mobile-first strategies, international companies can create impactful and effective marketing campaigns that resonate with Chinese consumers.

As you navigate the complexities of the Chinese market, remember that localization is key. Success in China requires more than just translation—it demands a deep understanding of the cultural, technological, and consumer behavior differences that define this dynamic market. By building on the lessons of email marketing and adapting them to the unique context of China, your brand can achieve significant growth and success in this vibrant market.

Categories
Topics

The Ultimate Guide to Effective Content Marketing on Xiaohongshu for Foreign Companies in China

Introduction

Xiaohongshu (Little Red Book), one of China’s most influential social commerce platforms, has become a powerful tool for brands looking to penetrate the Chinese market. With over 300 million users, the platform seamlessly integrates social networking with e-commerce, allowing users to discover, review, and purchase products directly within the app. For foreign companies aiming to establish or expand their presence in China, Xiaohongshu offers a unique opportunity to engage with Chinese consumers, particularly the younger, more affluent demographic.

This guide aims to provide international companies with a comprehensive understanding of how to leverage Xiaohongshu’s platform and ecosystem to develop effective content marketing strategies. By exploring best practices, real-world examples, and actionable insights, this guide will help you achieve sustained growth, market share, and brand impact in China.

1. Understanding Xiaohongshu’s Unique Ecosystem

1.1 The Social Commerce Model

Xiaohongshu’s core value proposition lies in its ability to combine social interaction with e-commerce. Users on Xiaohongshu are not just browsing products; they are actively engaging in a community where they can share their experiences, seek advice, and make informed purchasing decisions based on peer recommendations. This blend of content-driven discovery and instant purchasing capability sets Xiaohongshu apart from other platforms and makes it a vital tool for brands looking to connect with consumers in an authentic, community-driven environment.

1.2 The Demographics of Xiaohongshu Users

The platform’s user base primarily consists of women aged 18-35, a group that is highly active, fashion-forward, and increasingly influential in China’s consumer market. These users are typically well-educated, middle to upper class, and highly responsive to trends and new products. Understanding this demographic is crucial for crafting content that resonates and drives engagement.

1.3 The Role of KOLs and Micro-Influencers

Key Opinion Leaders (KOLs) and micro-influencers play a pivotal role on Xiaohongshu. Their content is often seen as more relatable and trustworthy compared to traditional advertising. Collaborating with KOLs allows brands to tap into established audiences, lending credibility and amplifying reach. However, choosing the right KOLs—those whose followers align with your target demographic and brand values—is essential for success.

2. Developing a Xiaohongshu Content Marketing Strategy

2.1 Setting Clear Objectives

Before diving into content creation, it’s important to establish clear marketing objectives. Are you looking to increase brand awareness, drive traffic to your e-commerce site, or boost sales through Xiaohongshu’s platform? Each goal requires a different approach in terms of content type, frequency, and promotional tactics.

2.2 Content Planning and Creation

2.2.1 Types of Content That Work

Successful content on Xiaohongshu typically falls into several categories:

  • Product Reviews and Tutorials: Authentic product reviews, unboxings, and how-to tutorials resonate well with Xiaohongshu users. These posts not only showcase the product but also provide practical value, helping potential customers make informed decisions.
  • User-Generated Content (UGC): Encouraging customers to share their own experiences with your products creates a sense of community and trust. UGC often drives higher engagement because it feels more organic and less like a traditional advertisement.
  • Lifestyle and Experience Posts: Posts that align your brand with a particular lifestyle or set of values can be particularly effective. For example, a beauty brand might share content related to wellness, self-care routines, or eco-friendly living, positioning itself as part of a broader, desirable lifestyle.

2.2.2 Visual and Written Content

Xiaohongshu is a highly visual platform, so high-quality images and videos are crucial. Your visual content should be aesthetically pleasing and consistent with your brand identity. Similarly, the written content should be engaging, concise, and in line with the tone that resonates with your target audience. Keep in mind that authenticity is key—overly polished or commercial content can sometimes be less effective than more genuine, user-generated-like posts.

2.3 Leveraging KOLs and Influencers

2.3.1 Selecting the Right Influencers

Choosing the right KOLs involves more than just looking at follower counts. Brands need to assess an influencer’s engagement rates, the authenticity of their interactions, and whether their audience aligns with the brand’s target demographic. For example, a luxury skincare brand would benefit from partnering with a beauty influencer known for premium product reviews rather than a general lifestyle blogger.

2.3.2 Structuring Collaborations

When structuring collaborations with KOLs, it’s essential to strike a balance between brand messaging and creative freedom. Influencers know their audience best, so allowing them some creative control can result in more genuine and effective content. Additionally, long-term partnerships tend to be more effective than one-off posts, as they build a deeper association between the influencer and your brand.

2.4 Utilizing Xiaohongshu’s Paid Promotion Tools

2.4.1 Sponsored Posts

Sponsored posts are a straightforward way to increase the visibility of your content on Xiaohongshu. These posts appear organically in users’ feeds but are labeled as sponsored, maintaining transparency. To maximize effectiveness, ensure that these posts are well-targeted and align with your organic content strategy.

2.4.2 In-App Advertising

Xiaohongshu offers various in-app advertising options, including banner ads, search ads, and product placement within user-generated content. These ads can be highly effective when integrated into a broader content marketing strategy. However, it’s important to monitor performance closely and optimize campaigns regularly to ensure a positive return on investment.

2.5 Analyzing and Optimizing Performance

Regular analysis is critical to understanding what works and what doesn’t on Xiaohongshu. Utilize the platform’s built-in analytics tools to track engagement metrics, follower growth, and conversion rates. Additionally, gathering qualitative feedback from user comments and direct messages can provide insights into how your brand is perceived and where improvements can be made.

3. Case Studies: Success Stories on Xiaohongshu

3.1 L’Oréal Paris: Building Trust Through Authentic Content

L’Oréal Paris has effectively utilized Xiaohongshu by focusing on authenticity and user engagement. By collaborating with local KOLs and encouraging UGC, L’Oréal has built a strong presence on the platform. Their content strategy involves a mix of product tutorials, skincare tips, and user testimonials, all of which resonate well with Xiaohongshu’s audience. The brand’s success on the platform is attributed to its commitment to authenticity, relevance, and consistency.

3.2 Starbucks: Localized Campaigns for Maximum Impact

Starbucks has leveraged Xiaohongshu’s platform to run localized campaigns that resonate with Chinese consumers. One notable campaign involved promoting a limited-edition range of products inspired by traditional Chinese culture. By collaborating with local influencers and using Xiaohongshu’s in-app advertising tools, Starbucks was able to generate significant buzz and drive sales both online and in-store.

3.3 Nike: Engaging Through Experience

Nike’s approach on Xiaohongshu focuses on creating immersive experiences for users. By sharing content related to sports, fitness challenges, and lifestyle, Nike has positioned itself as more than just a sports brand. The company regularly collaborates with fitness influencers who share their workout routines and personal stories, creating a community of engaged users who associate the brand with their active lifestyles.

4. Best Practices for Maximizing ROI on Xiaohongshu

4.1 Focus on Community Building

Xiaohongshu is not just a sales channel; it’s a community. Brands that invest in building a loyal community around their products are more likely to see long-term success. This involves not only creating engaging content but also actively participating in conversations, responding to comments, and showing appreciation for user-generated content.

4.2 Maintain Consistency and Authenticity

Consistency in posting and maintaining an authentic brand voice are crucial for building trust on Xiaohongshu. Users on the platform are highly discerning and can quickly spot inauthentic or overly commercial content. Brands that stay true to their values and consistently deliver content that resonates with their audience are more likely to build a loyal following.

4.3 Utilize Data-Driven Insights

Leverage data to inform your content strategy on Xiaohongshu. Analyzing user behavior, engagement patterns, and demographic data can provide valuable insights into what types of content perform best and what drives conversions. Regularly reviewing and adjusting your strategy based on these insights will help you stay ahead of the competition.

4.4 Experiment with Different Content Formats

While product reviews and tutorials are popular on Xiaohongshu, don’t be afraid to experiment with different content formats. Short videos, live streams, and interactive posts can offer fresh ways to engage your audience and showcase your products. Keeping your content diverse and dynamic will help maintain user interest and encourage ongoing engagement.

4.5 Collaborate with Xiaohongshu’s In-House Team

Xiaohongshu offers in-house support for brands looking to optimize their presence on the platform. Collaborating with Xiaohongshu’s team can provide you with tailored advice, access to exclusive features, and opportunities for enhanced visibility through platform-specific initiatives. This partnership can be particularly beneficial for foreign companies navigating the nuances of the Chinese market.

Conclusion

Xiaohongshu represents a unique opportunity for foreign companies to connect with Chinese consumers in a meaningful and impactful way. By understanding the platform’s ecosystem, developing a tailored content strategy, and leveraging the power of KOLs, brands can achieve significant growth and success in the Chinese market. However, success on Xiaohongshu requires more than just a

presence—it demands a deep understanding of the platform’s cultural nuances, user expectations, and the ever-evolving digital landscape in China.

4.6 Localize Your Content to Align with Chinese Culture

Localization is key when it comes to content marketing on Xiaohongshu. Chinese consumers value products and brands that resonate with their culture and traditions. This means that simply translating your content from another market won’t suffice. You need to adapt your messaging, visuals, and overall strategy to align with local tastes and preferences.

For example, incorporating elements of Chinese festivals, traditional symbols, or culturally relevant themes into your campaigns can significantly boost engagement. Understanding regional differences within China can also help tailor content to specific audiences, ensuring that your messaging feels personal and relevant.

4.7 Stay Agile and Adapt to Trends

The digital landscape in China is dynamic, with trends emerging and evolving rapidly. Brands that are agile and able to quickly adapt their content strategies to capitalize on these trends are more likely to succeed. On Xiaohongshu, this could mean jumping on trending hashtags, participating in popular challenges, or creating content that ties into current events or viral topics.

Monitoring the platform and staying attuned to what’s trending among your target audience will allow you to craft timely and relevant content that resonates with users. Being proactive rather than reactive can help your brand stand out in a crowded market.

4.8 Invest in Long-Term Relationship Building

While short-term campaigns can generate quick wins, long-term relationship building is crucial for sustained success on Xiaohongshu. This involves not only continuous engagement with your audience but also nurturing relationships with key influencers, loyal customers, and even Xiaohongshu itself.

Consider establishing an ongoing presence on the platform through regular content updates, community engagement, and consistent collaboration with KOLs. Over time, this will help solidify your brand’s reputation and foster a dedicated community of followers who advocate for your products.

4.9 Leverage Xiaohongshu’s E-Commerce Integration

One of Xiaohongshu’s unique advantages is its seamless integration of social content and e-commerce. Brands can directly link their products within posts, making it easy for users to make purchases without leaving the app. To maximize this feature, ensure that your product listings are optimized with clear images, detailed descriptions, and competitive pricing.

Additionally, consider utilizing Xiaohongshu’s e-commerce promotions and discounts to drive sales. Limited-time offers, exclusive deals, and product launches can create a sense of urgency and encourage users to make purchases.

4.10 Monitor and Respond to User Feedback

User feedback on Xiaohongshu is invaluable for refining your content strategy and improving your products. Actively monitor comments, reviews, and messages from users, and be responsive to their concerns and suggestions. Positive interactions can boost brand loyalty, while addressing negative feedback promptly and professionally can mitigate potential issues.

Consider incorporating user feedback into your content strategy by highlighting customer testimonials, addressing common questions in posts, or even featuring UGC in your official content. This not only enhances engagement but also shows that your brand values and listens to its customers.

Conclusion: Embrace Xiaohongshu as a Strategic Tool for Success in China

For foreign companies entering the Chinese market, Xiaohongshu offers a powerful platform to connect with consumers in an authentic and impactful way. By understanding the unique dynamics of the platform, localizing your content, and building strong relationships with influencers and users, you can harness the full potential of Xiaohongshu to drive brand awareness, customer engagement, and sales growth.

As you embark on your Xiaohongshu content marketing journey, remember that success on the platform requires a blend of creativity, cultural understanding, and data-driven strategy. By staying agile, investing in long-term relationships, and continuously refining your approach based on user feedback, your brand can thrive in China’s competitive digital landscape.

With the right strategy and execution, Xiaohongshu can become a cornerstone of your brand’s success in China, helping you achieve your business goals and secure a strong foothold in one of the world’s most lucrative markets.

Categories
Topics

Learning from Ctrip, Qunar, and Qyer: How to Leverage China’s Unique Marketing Characteristics for O2O Business Success

Introduction

The online travel industry in China is one of the most dynamic and competitive sectors, with companies like Ctrip, Qunar, and Qyer (Qiongyou) leading the charge. Their ability to innovate and adapt to China’s unique market characteristics has allowed them to secure significant market share and build lasting brand loyalty. International O2O (Online-to-Offline) businesses looking to enter the Chinese market can learn valuable lessons from these Chinese giants in terms of how to harness local marketing platforms, consumer behaviors, and digital ecosystems to achieve commercial success.

This article will explore the key strategies that have driven the success of Ctrip, Qunar, and Qyer in China, offering insights that international companies can apply to their own localization efforts. By understanding the marketing tactics and operational nuances that define the Chinese market, O2O companies can better position themselves for growth and profitability.

Understanding the Chinese Online Travel Market

Before diving into specific marketing strategies, it’s essential to understand the unique characteristics of the Chinese online travel landscape. Several key factors distinguish the Chinese market from its global counterparts:

  1. Mobile-First Behavior: China’s internet users are overwhelmingly mobile-centric. The majority of travel searches, bookings, and engagements occur on smartphones. This makes mobile-optimized strategies a necessity for any international company entering the Chinese market.
  2. Super Apps Dominate: Platforms like WeChat and Alipay are ubiquitous in China, and their integration into daily life goes beyond just messaging or payments. These apps offer travel bookings, reviews, and customer service, which means that having a presence on super apps is critical.
  3. High Consumer Expectations: Chinese travelers, especially younger generations, expect a high level of personalization, real-time customer support, and convenience. The competitive nature of the market has conditioned them to expect seamless service across all touchpoints.
  4. Digital Payments: Cashless payments dominate the travel sector, with QR codes, mobile wallets, and digital payment platforms being the standard. This ease of transaction plays a crucial role in the decision-making process.

With these foundational characteristics in mind, let’s explore the strategies of the major players in China’s online travel industry.

Ctrip: Dominating the Chinese Travel Market Through Localization and Partnerships

Ctrip (now part of Trip.com Group) is China’s largest online travel agency (OTA) and one of the biggest success stories in the industry. Since its inception, Ctrip has consistently tailored its services and marketing to align with local consumer preferences and behaviors.

1. Localization of Offerings

Ctrip’s success is rooted in its deep understanding of local travelers’ needs. From domestic flight bookings to hotel reservations, Ctrip offers a comprehensive range of travel products that cater to a wide spectrum of consumers, from budget travelers to luxury seekers.

For international businesses, this level of localization means going beyond offering mere translations of global services. Companies must tailor their product mix to reflect local preferences. For example, Ctrip offers a variety of travel insurance options and alternative travel methods like high-speed trains, both of which are hugely popular among Chinese travelers.

2. Strategic Partnerships

Ctrip has forged alliances with both global and domestic players, allowing it to offer a more comprehensive array of services. Their partnerships with hotels, airlines, and local travel agencies ensure they can meet the needs of travelers looking for both domestic and international travel solutions.

For international O2O companies, this approach highlights the importance of building partnerships with local suppliers and platforms to provide seamless services. Working with established companies in China can help you navigate regulatory challenges and establish a more credible presence in the market.

3. Leveraging Data for Personalization

Ctrip uses big data analytics to offer personalized travel recommendations based on user behavior, preferences, and past purchases. By providing personalized travel packages and services, they increase customer satisfaction and loyalty.

For international companies, investing in data analytics and understanding the nuances of consumer behavior in China can make a significant difference. Personalization is not just a nice-to-have; it is an expectation in China, where consumers are used to platforms understanding their needs before they articulate them.

4. Utilizing WeChat and Mini Programs

Ctrip has leveraged WeChat’s ecosystem to offer a comprehensive mobile experience. Through WeChat Mini Programs, users can book hotels, flights, and tours without leaving the app. This seamless integration allows Ctrip to stay connected with users throughout their travel journey.

For international companies, integrating services with super apps like WeChat or Alipay is crucial to staying relevant in the Chinese market. These platforms provide not only payment solutions but also customer service and marketing opportunities.

Qunar: A Focus on Price Sensitivity and User Engagement

Qunar is another leading OTA in China, known for its focus on price comparison and offering budget-friendly travel options. While Ctrip targets a broader range of travelers, Qunar has built a reputation for helping users find the best deals.

1. Price Transparency as a Marketing Tool

Qunar’s marketing strategy revolves around providing clear and transparent pricing information. This has built trust with consumers who are looking for the best possible deals on flights and hotels. The focus on price comparison has allowed Qunar to carve out a niche among cost-conscious travelers.

International companies can learn from this by adopting transparent pricing strategies and avoiding hidden fees. Chinese consumers, especially in the travel industry, are price-sensitive and appreciate platforms that offer clarity and value.

2. User-Generated Content and Reviews

Qunar encourages users to share their travel experiences and leave reviews, which in turn helps other users make informed decisions. This reliance on user-generated content has created a community of engaged travelers who trust Qunar’s platform.

For international companies, leveraging user-generated content and fostering a community around your brand can significantly improve customer engagement. Encouraging reviews and interactions on your platform or via social media can also boost credibility and trust among Chinese consumers.

3. Mobile-First Booking Experience

Like most Chinese OTAs, Qunar’s user experience is optimized for mobile devices. Their app offers real-time pricing updates, easy navigation, and swift booking processes, catering to China’s mobile-first audience.

International companies entering the Chinese market need to prioritize mobile optimization from the outset. A well-designed mobile app that simplifies the user journey, from browsing to booking, is essential in capturing the attention of Chinese travelers.

Qyer: Building a Community of Independent Travelers

Qyer (Qiongyou) is a niche player in China’s travel market, targeting younger, independent travelers who are interested in unique travel experiences and destinations. Their platform combines travel inspiration with booking services, creating an ecosystem where travelers can share their experiences and recommendations.

1. Content-Driven Marketing

Qyer’s marketing strategy centers around user-generated content, blogs, and travel diaries. Travelers on Qyer often share detailed itineraries, photos, and tips, creating a rich content repository that attracts like-minded travelers.

International companies can take inspiration from Qyer’s content marketing strategy by encouraging their users to create and share content. Whether it’s through blogs, videos, or social media, content-driven marketing helps build a sense of community and loyalty among users.

2. Targeting Younger Audiences

Qyer has focused on engaging with China’s younger travelers, who are more adventurous and eager to explore off-the-beaten-path destinations. The company’s social media presence is strong, with a focus on platforms like Douyin (TikTok) and Xiaohongshu (Little Red Book), which are popular among younger demographics.

For international companies, targeting younger audiences through the right social media channels is crucial. Douyin and Xiaohongshu are two platforms that offer opportunities to engage with consumers through creative, short-form video content and influencer partnerships.

3. Cross-Border Travel Focus

While Ctrip and Qunar focus primarily on domestic travel, Qyer emphasizes cross-border travel, offering guides and recommendations for international destinations. This focus has helped them tap into the growing segment of Chinese travelers interested in overseas experiences.

International companies in the travel sector can cater to this audience by offering unique cross-border travel solutions that align with the preferences of Chinese outbound tourists. Understanding the needs of Chinese travelers abroad can help international companies craft compelling offers.

1. Embrace the Mobile Ecosystem (Continued)

As China is a mobile-first market, international companies must prioritize mobile optimization. This includes developing apps that are compatible with Chinese platforms, such as WeChat, Alipay, and Baidu Maps, and ensuring that your mobile experience is smooth, intuitive, and efficient. The success of Ctrip, Qunar, and Qyer demonstrates that being present and fully functional on mobile is not just a competitive advantage—it’s a necessity. Offering features like QR code payments, mobile customer service, and in-app promotions can significantly enhance user engagement and conversion rates.

2. Localize Your Marketing Strategy

Localization goes beyond language translation; it involves adapting your products, services, and marketing messages to align with local cultural norms, consumer behaviors, and market expectations. For instance, Ctrip’s focus on local partnerships and Qyer’s emphasis on user-generated content reflect an understanding of what resonates with Chinese consumers. International companies should tailor their value propositions, pricing strategies, and marketing campaigns to reflect the unique characteristics of the Chinese market. This may involve creating exclusive offers for Chinese holidays, collaborating with local influencers, or customizing products to suit local tastes.

3. Leverage China’s Super Apps

The dominance of super apps like WeChat and Alipay in China cannot be overstated. These platforms serve as comprehensive ecosystems where users can engage in everything from messaging to shopping to booking travel. Ctrip’s successful integration with WeChat, for example, allows users to book flights and hotels without leaving the app, offering a seamless experience. International companies should explore opportunities to integrate their services within these super apps, either through mini programs or API integrations, to reach Chinese consumers where they are most active.

4. Invest in Data-Driven Personalization

Chinese consumers have come to expect a high level of personalization in their interactions with brands. Ctrip’s use of big data to offer tailored travel recommendations is a prime example of how personalization can drive customer loyalty and repeat business. For international companies, investing in data analytics to understand customer preferences and behaviors is crucial. This can inform personalized marketing campaigns, targeted promotions, and even product development, ensuring that your offerings are relevant and appealing to your Chinese audience.

5. Focus on Price Transparency and Value

Price sensitivity is a significant factor in the Chinese market, particularly in the travel sector. Qunar’s success in offering transparent pricing and focusing on budget-conscious travelers highlights the importance of clear and honest communication about costs. International companies should adopt a similar approach by avoiding hidden fees and offering clear value propositions. Competitive pricing strategies, bundled offers, and loyalty programs can also help attract and retain cost-conscious consumers.

6. Build a Strong Content Strategy

Content plays a crucial role in engaging Chinese consumers, particularly younger demographics who seek inspiration and information online. Qyer’s focus on travel diaries, itineraries, and user-generated content has helped it build a loyal community of independent travelers. International companies can benefit from developing a robust content strategy that includes blogs, videos, social media posts, and user-generated content. This content should not only inform and inspire but also drive conversions by linking directly to booking pages or promotional offers.

7. Engage with Younger Audiences Through Social Media

China’s younger consumers are highly active on social media platforms like Douyin (TikTok), Xiaohongshu (Little Red Book), and Weibo. These platforms offer unique opportunities to reach and engage with this demographic through creative content, influencer collaborations, and interactive campaigns. Qyer’s success in targeting younger travelers through social media demonstrates the importance of understanding where your audience spends their time online and tailoring your content accordingly. International companies should explore partnerships with local influencers, create viral content, and engage in social media challenges to build brand awareness and loyalty among younger Chinese consumers.

8. Offer Seamless Cross-Border Travel Solutions

As more Chinese travelers explore international destinations, there is a growing demand for seamless cross-border travel solutions. Qyer’s focus on international travel guides and recommendations has positioned it as a go-to resource for Chinese travelers seeking unique experiences abroad. International companies, particularly those in the travel sector, should consider offering services that cater specifically to Chinese outbound tourists. This could include localized travel guides, Chinese-language customer support, and partnerships with local businesses in popular destinations. Understanding the needs and preferences of Chinese travelers abroad can help you craft compelling offers and capture a share of this lucrative market.

9. Develop Strategic Partnerships

Strategic partnerships are key to navigating the complexities of the Chinese market. Ctrip’s alliances with hotels, airlines, and local travel agencies have allowed it to offer a comprehensive range of services that meet the needs of Chinese travelers. For international companies, forming partnerships with local businesses, technology platforms, and service providers can enhance your value proposition and help you overcome challenges related to logistics, regulations, and market entry. These partnerships can also provide access to local expertise and resources, making it easier to adapt your offerings to the Chinese market.

10. Ensure Regulatory Compliance

Finally, it’s essential to understand and comply with China’s regulatory environment. The Chinese government places strict regulations on data privacy, content censorship, and business practices, and failure to comply can result in significant penalties or even the loss of market access. International companies should work with legal experts and local partners to ensure that their operations, marketing strategies, and data practices adhere to Chinese laws and regulations. This will not only protect your business but also build trust with Chinese consumers who are increasingly concerned about data security and corporate responsibility.

Conclusion

The success of Ctrip, Qunar, and Qyer in the Chinese online travel market offers valuable lessons for international O2O companies looking to enter or expand their presence in China. By embracing mobile-first strategies, localizing your offerings, leveraging super apps, and investing in personalization, content, and strategic partnerships, you can effectively navigate the unique challenges of the Chinese market and achieve sustainable growth.

As you develop your market entry strategy, remember that China’s digital landscape is constantly evolving, and staying ahead of trends and consumer expectations is crucial. By learning from the strategies of China’s leading online travel companies, you can position your business for success in one of the world’s most dynamic and competitive markets.

In summary, success in China’s O2O space requires a deep understanding of local consumer behaviors, a willingness to adapt and innovate, and a commitment to providing value and convenience. With the right approach, your business can tap into the immense potential of the Chinese market and build a lasting presence in this fast-growing economy.

Categories
Topics

Understanding the Unique Characteristics of Chinese Consumer Internet Behavior: Optimizing Localized Advertising Strategies for International Companies

Introduction

The Chinese market represents a massive opportunity for international companies, but it also poses significant challenges. With over 1.4 billion people, China is home to the world’s largest online population, boasting more than 1 billion internet users as of 2024. However, the internet behavior of Chinese consumers differs markedly from their counterparts in other regions, necessitating tailored advertising strategies that cater specifically to the local market. This article will explore the unique characteristics of Chinese consumer internet behavior and provide strategic insights for international companies on how to optimize their localized advertising strategies accordingly.

The Unique Characteristics of Chinese Consumer Internet Behavior

1. Mobile-First Society

China is a mobile-first society, with mobile devices playing a central role in daily life. Unlike many Western markets where desktop usage still holds significant weight, Chinese consumers predominantly use mobile devices for their internet activities, including shopping, social networking, and content consumption. In fact, over 99% of Chinese internet users access the web via mobile devices.

Implications for Advertisers:

  • Mobile Optimization: Advertisers must prioritize mobile optimization in their campaigns. This includes mobile-friendly websites, apps, and advertisements that are optimized for various screen sizes and devices.
  • Responsive Design: Ensure that all digital content is designed to be responsive, providing a seamless experience across mobile, tablet, and desktop devices.
  • App-Centric Approach: Given the prominence of mobile apps in China, brands should consider developing apps or integrating with popular Chinese apps to reach their target audience effectively.

2. Integration of Social Media and E-Commerce

Social media and e-commerce are deeply intertwined in China, creating a unique ecosystem where consumers frequently discover, research, and purchase products directly through social platforms. Apps like WeChat, Douyin (TikTok’s Chinese counterpart), and Xiaohongshu (Little Red Book) are not only social networks but also powerful e-commerce platforms.

Implications for Advertisers:

  • Social Commerce: Brands should leverage social commerce by creating shoppable content on platforms like WeChat and Douyin. This can include live-streaming events, influencer partnerships, and interactive ads that link directly to product pages.
  • Content-Driven Commerce: Develop content that drives engagement and sales, such as product reviews, tutorials, and user-generated content. Integrating these into social media campaigns can boost visibility and conversions.
  • Influencer Collaborations: Partnering with local influencers (KOLs) who have a strong presence on social media platforms can amplify brand messages and drive sales directly through social channels.

3. Preference for Localized Content

Chinese consumers show a strong preference for localized content that resonates with their cultural norms, values, and language. Unlike Western consumers who might engage with global brands in English, Chinese consumers expect content to be tailored to their local context.

Implications for Advertisers:

  • Cultural Relevance: Ensure that advertising content is culturally relevant and aligns with local customs, traditions, and values. This can involve adapting global campaigns to reflect Chinese holidays, festivals, and societal trends.
  • Language Localization: All content, including ads, websites, and social media posts, should be in Mandarin (or other relevant Chinese dialects) and should reflect local idioms and expressions to connect with the audience.
  • Local Stories: Leverage local stories, references, and case studies in your campaigns to build trust and credibility among Chinese consumers.

4. Trust in User-Generated Content (UGC)

User-generated content (UGC) holds significant sway over Chinese consumers’ purchasing decisions. Reviews, ratings, and testimonials shared on platforms like Dianping (China’s Yelp) or in WeChat groups are often more influential than brand-generated content.

Implications for Advertisers:

  • Encourage UGC: Actively encourage customers to share their experiences with your brand on social media and review sites. This can be incentivized through contests, rewards, or recognition programs.
  • Leverage Reviews: Highlight positive customer reviews in your advertising campaigns and on product pages to build trust and credibility.
  • Community Engagement: Foster online communities where customers can share their experiences and connect with others. This not only generates UGC but also strengthens brand loyalty.

5. High Engagement with Video Content

Video content, especially short-form video, dominates the Chinese digital landscape. Platforms like Douyin, Kuaishou, and Bilibili have seen explosive growth, with consumers spending a significant amount of time watching and interacting with video content.

Implications for Advertisers:

  • Short-Form Video Ads: Develop short-form video ads that are engaging, entertaining, and optimized for platforms like Douyin and Kuaishou. These should capture the audience’s attention within the first few seconds to be effective.
  • Live Streaming: Consider incorporating live streaming into your marketing strategy. Live commerce, where products are sold during live streams, has become a popular way for brands to engage with consumers and drive sales.
  • Interactive Video Content: Experiment with interactive video content that allows viewers to engage directly with the brand, such as clickable links, polls, and shoppable features.

6. Reliance on Super Apps

In China, super apps like WeChat and Alipay serve as one-stop platforms for a wide range of activities, including messaging, shopping, payment processing, and even accessing government services. This integration of services within a single platform is unparalleled in Western markets.

Implications for Advertisers:

  • WeChat Ecosystem: Brands should fully leverage the WeChat ecosystem, including Official Accounts, Mini Programs, and WeChat Pay, to create a seamless and integrated experience for users.
  • Super App Presence: Consider developing Mini Programs or integrating with existing ones to offer services, products, or information within super apps, thereby increasing your brand’s visibility and accessibility.
  • Targeted Ads: Utilize the targeting capabilities of super apps to reach specific segments of your audience based on their behaviors and preferences.

7. Sophisticated Use of Data and AI

Chinese companies are at the forefront of utilizing big data and artificial intelligence (AI) to enhance their marketing efforts. These technologies enable hyper-targeted advertising, personalized content, and real-time adjustments to campaigns.

Implications for Advertisers:

  • Data-Driven Marketing: Invest in data analytics tools that can provide insights into consumer behavior, preferences, and trends. Use this data to inform your advertising strategies and optimize campaigns in real-time.
  • Personalization: Leverage AI to deliver personalized ads that resonate with individual consumers. This can include personalized product recommendations, dynamic pricing, and tailored messaging.
  • A/B Testing: Continuously test and optimize your ads using A/B testing methods. This allows you to refine your strategies based on real-time data and achieve better results.

Case Studies: Success Stories in Localized Advertising

1. Nike’s “Run for the Future” Campaign

Nike has successfully localized its marketing strategies in China by tapping into the cultural significance of health and wellness. Their “Run for the Future” campaign, which encouraged young people to take up running as a way to improve their lives, resonated deeply with Chinese consumers. By partnering with local influencers and leveraging platforms like WeChat and Douyin, Nike was able to create a campaign that not only promoted their products but also aligned with the aspirations of their target audience.

2. Coca-Cola’s WeChat Mini Program

Coca-Cola launched a WeChat Mini Program that allowed users to send virtual Coca-Cola cans with personalized messages to their friends. This campaign capitalized on the social nature of WeChat and the importance of gift-giving in Chinese culture. The result was a highly engaging and viral campaign that strengthened Coca-Cola’s brand presence in China.

3. L’Oréal’s Live Streaming Success

L’Oréal leveraged the popularity of live streaming in China to launch a series of live commerce events where influencers showcased and sold L’Oréal products in real-time. This approach not only drove immediate sales but also built brand loyalty by providing consumers with an interactive and personalized shopping experience.

Strategic Recommendations for International Companies

1. Adopt a Mobile-First Strategy

Given the dominance of mobile internet usage in China, it is imperative that international companies adopt a mobile-first strategy. This includes optimizing websites, apps, and ads for mobile devices and ensuring that content is accessible and engaging on smaller screens.

2. Leverage Local Platforms

International companies should focus on the platforms that are most popular in China, such as WeChat, Douyin, and Xiaohongshu. These platforms offer unique opportunities for social commerce, influencer marketing, and content-driven advertising.

3. Invest in Localized Content

Creating content that resonates with Chinese consumers is crucial for success. This means not only translating existing content into Mandarin but also adapting it to reflect local cultural references, values, and trends. Working with local content creators and influencers can help ensure that your content is relevant and engaging.

4. Prioritize Trust and Transparency

Building trust with Chinese consumers is essential. This can be achieved by encouraging and showcasing user-generated content, being transparent in your communications, and delivering on your brand promises. Positive reviews, testimonials, and community engagement can significantly enhance your brand’s credibility.

5. Utilize Data and AI for Personalization

Data-driven marketing and AI-powered personalization can help international companies deliver more relevant and effective ads. By analyzing consumer data, brands can create personalized experiences that cater to the preferences and behaviors of their target audience.

6. Embrace Innovation

The Chinese digital landscape is constantly evolving, with new technologies and trends emerging regularly. International companies should stay agile and be willing to experiment with new formats, platforms, and technologies to stay ahead of the competition.

Conclusion

The unique characteristics of Chinese consumer internet behavior require international companies to rethink their advertising strategies when enteringthe Chinese market. Simply replicating strategies that have worked in other regions is unlikely to yield the desired results. Instead, success in China demands a deep understanding of local consumer behavior, a commitment to localization, and the flexibility to adapt to a rapidly changing digital landscape.

7. Focus on Super App Integration

Given the ubiquity and influence of super apps like WeChat and Alipay, integrating your brand into these platforms is not just beneficial but essential. These super apps allow for a seamless user experience, combining social interaction, shopping, and payment into one interface. Brands that successfully embed themselves into these ecosystems can engage consumers more effectively and drive higher conversion rates.

8. Engage with the Power of Influencers

In China, influencers, also known as Key Opinion Leaders (KOLs), play a pivotal role in shaping consumer opinions and driving purchasing decisions. Unlike in Western markets, where influencer marketing may still be considered supplementary, in China, it is a primary channel. The authenticity and trust that KOLs bring to a brand can significantly enhance consumer engagement and brand credibility.

9. Utilize Short-Form Video and Live Streaming

Short-form video and live streaming have become dominant forms of content consumption in China. Platforms like Douyin and Kuaishou are leaders in this space, and brands that leverage these formats can capture the attention of a broad audience. The immediacy and interactive nature of live streaming, in particular, can create a sense of urgency and exclusivity, driving sales during the event itself.

10. Implement a Holistic Data Strategy

Data is a critical asset in understanding and responding to consumer behavior. In China, where consumers expect a high degree of personalization, a robust data strategy is indispensable. Brands must collect and analyze data from various touchpoints, including social media interactions, app usage, and purchase history, to create personalized marketing campaigns that resonate with individual consumers.

Realizing the Full Potential of the Chinese Market

To fully realize the potential of the Chinese market, international companies must approach their advertising strategies with a focus on localization, consumer-centricity, and innovation. By understanding the unique characteristics of Chinese internet behavior, companies can tailor their strategies to meet the specific needs and preferences of Chinese consumers.

This approach not only enhances the effectiveness of advertising campaigns but also builds long-term brand loyalty and trust. Companies that succeed in China do so by blending their global brand strengths with a deep respect for local culture and consumer behavior. This requires continuous learning, adaptation, and a willingness to experiment with new formats and platforms.

Case Study Recap: Success Through Localization

  1. Nike’s “Run for the Future” Campaign: By aligning their brand message with the local cultural emphasis on health and wellness, Nike was able to create a campaign that resonated deeply with Chinese youth, driving both engagement and sales.
  2. Coca-Cola’s WeChat Mini Program: Coca-Cola’s innovative use of WeChat’s Mini Program feature to allow personalized virtual gifts demonstrated how brands can use local platforms to create highly engaging and culturally relevant experiences.
  3. L’Oréal’s Live Streaming Strategy: L’Oréal’s embrace of live streaming as a sales channel showed the power of interactive, real-time engagement in driving conversions and building brand affinity.

Strategic Roadmap for International Companies

1. Deepen Your Understanding of Local Consumers

Invest in market research to gain insights into the preferences, behaviors, and expectations of Chinese consumers. This knowledge is crucial for developing campaigns that resonate with the target audience.

2. Build Local Partnerships

Collaborate with local agencies, influencers, and platforms to ensure your campaigns are culturally relevant and optimized for the Chinese market. Local partners can provide invaluable insights and help navigate the complexities of the Chinese digital landscape.

3. Customize Your Content and Messaging

Adapt your global brand message to align with local cultural values and trends. This may involve creating entirely new content for the Chinese market or localizing existing content in a way that feels authentic to Chinese consumers.

4. Leverage Advanced Technologies

Invest in data analytics, AI, and other advanced technologies to create personalized marketing experiences. These technologies can help you understand consumer behavior in real-time and adjust your strategies accordingly.

5. Monitor and Adapt

The Chinese market is dynamic and constantly evolving. Keep a close watch on emerging trends, consumer behavior shifts, and platform innovations. Be ready to adapt your strategies quickly to stay ahead of the competition.

6. Prioritize Long-Term Engagement

Rather than focusing solely on short-term sales, build strategies that foster long-term engagement and brand loyalty. This involves creating meaningful connections with consumers through continuous interaction, personalized experiences, and community building.

Conclusion

The Chinese digital landscape presents both immense opportunities and challenges for international companies. By understanding the unique characteristics of Chinese consumer internet behavior and adapting advertising strategies accordingly, companies can unlock significant growth in this vibrant market. Success in China requires a commitment to localization, innovation, and a deep respect for the local culture and consumer preferences. With the right approach, international companies can not only achieve success in the Chinese market but also set the stage for sustainable growth and long-term brand loyalty.

In summary, while the global market offers a wealth of experience, when entering China, it’s crucial to start with a fresh perspective. The strategies that work in Western markets need to be re-evaluated and re-tailored to meet the distinct needs of Chinese consumers. With thoughtful adaptation and a keen understanding of the local digital ecosystem, international brands can thrive in China’s unique and rapidly evolving marketplace.

Categories
Topics

Overview of China’s Programmatic Advertising Ecosystem

As globalization continues to deepen, international brands are increasingly turning their attention to the vast Chinese market. With the largest number of internet users in the world and a digital advertising market size that ranks at the forefront globally, programmatic advertising, as an essential means of digital marketing, is gaining increasing attention. This article will delve into the development history of China’s programmatic advertising ecosystem, analyze its main players and functions, compare it with the foreign ecosystem, and finally provide strategic recommendations for foreign advertisers entering the Chinese market.

Development History of China’s Programmatic Advertising

Since being hailed as the “Year of Programmatic” in 2012, China’s programmatic advertising has experienced a period of enthusiastic capital pursuit, an outbreak period, and an adjustment period that has attracted industry-wide attention. With advertisers focusing on issues such as traffic fraud and advertising transparency, the industry has gone through a period of calm reflection during the adjustment period to the current refined transformation. The Chinese programmatic advertising market has undergone rapid development and transformation.

Embryonic Stage (2008-2011)

During this period, programmatic advertising began to sprout in China, with many companies starting to try this emerging marketing method. In 2011, Alimama launched the advertising trading platform Tanx, marking the preliminary exploration of China’s programmatic advertising.

Rapid Development Period (2012-2013)

The year 2012 is regarded as the inaugural year for programmatic advertising in China, with a plethora of companies launching DSP products. Google’s advertising trading platform also officially went live in China that year. In the following year, giants such as Tencent, Sina, and Baidu joined the programmatic advertising market, propelling the industry’s rapid development.

Eruption Period (2014-2016)

Driven by capital, the programmatic buying market entered an explosive period. Statistics show that during this time, more than a hundred programmatic buying platforms emerged. However, the market also faced issues like fake traffic, brand safety, and opacity, which gradually attracted industry introspection.

Shuffling Adjustment Period (2017 to Present)

As the market matures and advertisers demand higher transparency, the programmatic advertising market has entered a period of shuffling and adjustment. Companies with outstanding technology, resources, and reputation have begun to stand out, while other platforms face the pressure of being eliminated. Advertisers have started to focus more on the quality of advertising delivery rather than the quantity, with a preference for precise delivery that brings verifiable value.

Main Changes and Trends in China’s Programmatic Advertising Ecosystem

As market demands evolve, advertisers increasingly prefer precise delivery and performance measurement, driving the development of programmatic buying technologies, such as Real-Time Bidding (RTB) and Direct Programmatic Buying. In addition, China’s unique market environment and policy orientation are also shaping the unique development path of the programmatic advertising ecosystem, with the following trends emerging:

  • Increased demand for vertical platform advertising delivery: Advertisers are paying more and more attention to the quality of advertising delivery, with a preference for precise delivery that brings verifiable value.

  • The rise of Connected TV (CTV): With the increase of CTV users, programmatic TV advertising has become a new growth driver in the industry.

  • Improvement of KOL programmatic advertising delivery: Programmatic technology helps advertisers more accurately select KOLs for promotion, achieving systematic and programmatic KOL management.

  • Cross-platform and cross-device advertising delivery: With the advent of the all-screen era, brands have higher requirements for the scenario of digital marketing, and cross-device programmatic advertising delivery will receive more attention.

  • Enhancement of transparency and industry standards: Advertisers are increasingly concerned about industry transparency, and industry norms and standards are being strengthened, with third-party monitoring agencies and high-standard industry norms playing an important role.

  • Focus on brand safety and advertising effectiveness: Advertisers’ focus has shifted from  extensive “quantity” to refined “quality,” with brand safety and advertising effectiveness becoming key topics.

  • Integration of advertising transaction data: To improve the conversion rate of advertising and consumer experience, the integration of data generated in advertising transactions, more efficiently positioning the right target audience and the right delivery opportunity, has become the focus of the next wave of digital transformation.

Main Players in China’s Programmatic Advertising and Brief Introduction

China’s programmatic advertising ecosystem is a diversified and highly integrated system, including Demand-Side Platforms (DSPs), Supply-Side Platforms (SSPs), Advertising Exchanges, Data Management Platforms (DMPs), Programmatic Creative Platforms, Monitoring and Analytics Tools, Programmatic TV, and Programmatic Digital Out-of-Home (pDOOH), among other roles. These platforms and tools, through efficient technical means, have achieved automated purchasing, precise delivery, and data recovery of advertising resources, providing advertisers with one-stop services from strategy formulation to performance evaluation, promoting the digital transformation of the entire advertising industry.

  • DSP (Demand-Side Platform): A platform that helps advertisers or ad agencies to automatically lock in target traffic, purchase advertising space, control budgets, and optimize strategies. YOYI Tech’s Plus platform, covering high-quality advertising resources from mainstream Chinese media, can help advertisers achieve their advertising goals efficiently and economically.

  • Ad Exchange & SSP: Advertising trading platforms and supply-side platforms are responsible for the buying and selling of advertising inventory. For example, HUAWEI Ads, as a newly included platform, covers more than 730 million monthly active users.

  • Trading Desk: A procurement trading platform and technology, providing one-stop automated advertising platform services. YOYI Tech’s OneDesk is a representative TD that integrates various high-quality media and advertising resources.

  • Data Supplier & Data Management: Data provision and management platforms support advertisers in more accurately targeting their audience.

  • Programmatic TV: Programmatic television advertising provides opportunities for the programmatic purchase of television and outdoor advertising.

  • Measurement & Analytics: Monitoring and analytical tools help advertisers evaluate the effectiveness of their advertising.

  • pDOOH: Programmatic outdoor advertising, which leverages technology to automate the placement of outdoor advertising. For example, Asiaray (Ya Shi Wei) and DiDi are newly included platforms.

Differences and Similarities between China’s and Foreign Programmatic Advertising Ecosystems

Compared to foreign ecosystems, China’s programmatic advertising ecosystem also faces challenges in data privacy protection and user choice rights. With the implementation of “privacy protection” mechanisms, the space freely available for the audience identification mechanisms that programmatic advertising relies on to operate is increasingly narrowing. There are some significant differences between China’s programmatic advertising ecosystem and that of foreign countries, as follows:

  • Market Size and Maturity: Although China’s programmatic advertising market is large, it is still in a stage of continuous development and adjustment compared to the more mature markets of Europe and the United States.

  • Technology and Platform Development: China’s programmatic advertising technology ecosystem map shows that the market is adapting to changes in privacy protection mechanisms and audience identification mechanisms, such as OAID replacing IMEI, and IDFA facing more refined authorization for use.

  • Influence of Super Platforms: In China’s programmatic advertising ecosystem, large technology companies like HUAWEI Ads occupy an important position through their closed-loop ecosystem products, which is different from the situation abroad where giants like Facebook and Google dominate and work with many small and medium-sized platforms.

  • Advertising Forms and Innovation: China’s programmatic advertising is exploring new forms such as Programmatic TV and pDOOH, while the development of these fields in foreign markets may be more mature.

Considerations for Foreign Advertisers Entering the Chinese Advertising Market

  • Understand the Market Environment: China’s advertising market has a unique cultural and regulatory environment. Foreign advertisers need to deeply understand these characteristics. An in-depth understanding of Chinese market characteristics and consumer behavior is key to success. For example, Chinese consumers’ dependence on mobile devices is much higher than in other countries, which has an important impact on advertising delivery strategies.

  • Data Compliance: With the strengthening of data privacy protection, advertisers must ensure that their data collection and use comply with Chinese laws and regulations. Strictly comply with Chinese laws and regulations, especially in terms of data protection and privacy. For example, understand and comply with the relevant requirements of the “Cybersecurity Law” and the “Personal Information Protection Law.”

  • Choice of Partners: Choosing experienced and resourceful local partners can help foreign advertisers adapt to the market environment more quickly and achieve effective market penetration.

  • Technical Adaptability: Utilize local Chinese technology platforms and services, such as DSPs and Ad Exchanges, to achieve more precise advertising delivery.

  • Cultural Sensitivity and Localization Strategy: Advertising content needs to consider the sensitivity of Chinese culture to avoid cultural conflicts or misunderstandings. Develop advertising content and marketing strategies that conform to Chinese cultural and social values. For example, respecting Chinese traditional festivals and customs can improve the acceptance and effectiveness of advertising.

The development of China’s programmatic advertising has been diverse and dynamically changing, from initial exploration to current refined operations, with the market continuously maturing and improving. The Chinese programmatic advertising market offers great opportunities for foreign advertisers but also comes with challenges. By deeply understanding the market environment, complying with laws and regulations, formulating localization strategies, and choosing the right partners and technology platforms, foreign advertisers can succeed in this vibrant market.

返回列表

Categories
Topics

Prohibited Products for Promotion under Chinese Laws and Regulations：A Guide to Navigating the Regulatory Landscape

Prohibited Products for Promotion under Chinese Laws and Regulations：A Guide to Navigating the Regulatory Landscape

Blog

发布时间：2024-07-15   作者：

Each country has its own social environment and standards for different industries vary accordingly. In China, there are clear restrictions on the industries involved in advertising and promotion. Especially for the following 55 industries listed, Chinese laws and regulations have explicit prohibitions against promoting these industries through advertising.

01 Drug-Related Items

This category encompasses all types of illicit drugs, chemicals that can be synthesized into drugs, raw materials for drug production, and literature on drug manufacturing.

02 Gambling Prohibitions

We’re putting all bets off on gambling. It’s forbidden to use money or property as stakes in gambling, as well as providing venues, funds, tools, or facilitating gambling activities through products and services.Gambling Tools: Think slot machines and dice games—no luck here.

  • Gambling Information and Software: This includes illegal gambling information, communities, software, and betting apps.

  • Gambling Products: Unlawful gambling products such as Mark Six lotteries and other lottery types not approved for sale in Mainland China.

  • Gambling Techniques: Ads that teach gambling tactics like card sharking and cheating methods are off the table.

  • Cheating Devices: Devices like see-through glasses, card changers, and other cheating tools are strictly prohibited.

  • Gambling Products: Products suspected of being gambling-related, such as “one-yuan purchase” schemes.

  • Gambling on Raw Stones: The act of gambling by selling rough stones is banned.

  • Others: Hotels or scenic spots that offer casino gambling services are not allowed.

03 Religious Matters

  • Spreading the word about religious activities and content is a no-go zone.

  • Selling religious items under the guise of religion is also prohibited.

04 Pyramid Schemes

Theallure of quick riches through recruitment or by charging fees for membership is an illegal path we advise against.

05 Superstition and Fortune-Telling

Products or services for fortune-telling, divination, Feng Shui, and other superstitious practices, along with claims of improving luck or human capabilities, are banned.

06 Fraudulent Websites

  • Imitating financial institutions like banks, funds, securities, and trusts is a scam that won’t stand.

  • Posting job ads for fake reputation farming on online stores is also prohibited.

  • Illegal sales of items like Sinopec fuel cards, Q coins, and other virtual cards, along with providing illegal phone top-up services, are forbidden.

07 Special Diseases

  • No advertising is allowed for diseases that the state has paused medical advertising for: genital warts, syphilis, gonorrhea, chancroid, psoriasis, AIDS, cancer, epilepsy, hepatitis B, vitiligo, lupus.

  • Professional jargon related to these diseases, such as HBV, “big three yang,” “small three yang turning negative,” and “two pairs and a half,” is also banned in advertisements.

08 Special Medications and Medical Devices

  • A strict ban on narcotics, psychotropic substances, toxic medical drugs, radioactive drugs, drug-like precursor chemicals, prescription drugs, specific total nutrition formula foods for special medical purposes, infant formulas for special medical use, and drugs and medical devices for drug addiction treatment.

  • Military-specific drugs and preparations made by military medical institutions.

  • Medicinal preparations made by medical institutions.

  • Any drugs, medical devices, health foods, and special medical formula foods that are legally stopped or banned from production, sale, or use.

09 Medical Intermediary Services

Offering domestic registration services or overseas medical intermediary services for a fee is prohibited.

10 Cultural Relics and Literary Works

● Counterfeit commemorative coins and replicas of famous artworks are not to be advertised.

● Exempted are antique stores and auction companies with the appropriate legal qualifications.

11 Illegal Stamp Trading

Legal stamps (including common and commemorative stamps) can be exchanged and traded.The following activities are banned as per Article 25 of the “Philatelic Market Management Measures”: Trading in counterfeit or altered postage vouchers.

  • Trading in stamps prohibited from circulation by the state.

  • Trading in stamps issued by the Taiwan region after October 1, 1949.

  • Trading in stamps without indicated issuing entity information.

  • Trading in stamps with counterfeit or imitation stamp patterns not in accordance with national regulations.

  • Trading in stamps with obviously false information.

  • Trading in stamps imported without authorization.

  • Producing or selling stamps under someone else’s name without permission.

  • Any other business activities that violate relevant national regulations.

12 Circulating RMB

Without the approval of the People’s Bank of China, no unit or individual may bind or operate bound circulating RMB, including RMB of special years and misprinted RMB.

13 Bills

  • Including various types of invoices, financial bills, etc.

  • Including issuing and selling real and fake invoices on behalf of others.

  • Except for the case of transfer for the purpose of collection without validity and circulation.

14 Fake certificate and seal services

Providing illegal services such as processing false certificates and privately engraved official seals.

15 Illegal network public relations

Illegal network water army, network promoters, flooding companies, post deletion companies, soft article marketing, e-commerce order brushing, etc.

16 Illegal network technology and equipment

  • Using illegal network technology to break through network restrictions, infringe on the privacy and property of others, or disrupt the normal operation order of Internet platforms, including: “over the wall” service, “over the wall” software, game plug-ins, dual-opening software, jailbreak software, etc.

  • Equipment for inserting phone cards in batches.

  • Equipment and software with functions such as changing the caller number, virtual dialing, and illegal access of Internet phones to the public telecommunications network.

  • Automatic switching systems for batch accounts and network addresses, platforms for batch receiving SMS verification and voice verification.

  • Other equipment and software used to commit crimes such as telecommunications network fraud.

17 Illegal debt collection

Illegal provision of services or consulting content related to debt repayment, debt arrears, and debt collection.

18 Vehicle formalities agency

  • Violation of traffic rules and points, agency service or content for car purchase quotas.

  • Providing transaction services or information such as leasing, selling, and transferring of vehicle license plates and lottery quotas.

  • Providing illegal vehicle-related services or information such as scrapping without a car, transferring ownership without a car, annual inspection without a car, and collecting points for driver’s licenses.

19 Personal business agency

  • Agency for personal certificates, agency for social security payment, agency for housing provident fund payment, agency/consultation for points-based settlement, etc.

  • Scalper proxy photography and proxy photography business.

20 Certificate affiliation/leasing

“Certificate affiliation”, “certificate affiliation” and any qualification certificate, administrative license, identity document leasing, lending, and transfer services, etc.

21 Foreign Recruitment

Provide jobs for foreign personnel, recruit foreign personnel, recruit foreign volunteers, etc.

22 Firearms, Ammunition and Other Weapons

  • Includes various types of firearms, ammunition and related equipment, such as firearms, firearm imitations (such as imitation guns), bullets (cannons), silencers, gunpowder, instructions, packaging boxes, etc.

  • Other weapons: crossbows, slingshots, steel balls, lead balls, real machines, real bullets, etc.

23 Security, police and military equipment

  • Security equipment refers to security and defense equipment including but not limited to electric shocks, strong lights, tear gas, etc.

  • Police and military equipment refers to police and military equipment including but not limited to police uniforms, police badges, handcuffs, police lights, sirens, stun guns, etc.

24 Cult Organizations

Illegal organizations that endanger society, such as Falun Gong, the Church of Almighty God, Voodoo, etc.

25 Government Documents

Various certificates and documents issued by the government, such as identity cards, files, various licenses, etc.

26 Illegal Publications and Film and Television Works

Illegal books, film and television works include, but are not limited to:

  • Obscene and Pornographic Materials : This includes any publications or films that are vulgar or sexually explicit, such as adult magazines, videos, and adult videos (AV).

  • Materials Harmful to Social Stability : Publications or films that undermine social stability, damage national unity, or disrupt ethnic solidarity.

  • Publications with Discriminatory Content : Any materials containing racial or religious discrimination or other content that violates laws and regulations.

27 Protection of Wild Flora and Fauna

  • Wildlife : Under national regulations, no trade or publication is allowed for wild animals, world/national protected species, endangered animals, their organs, any body parts, fur, specimens, or any products made from them, such as ivory and tortoiseshell products.

  • Wild Plants : Any plants listed in the world/national protected species list and prohibited from sale by law, or plant products.

28 Illegal Sexual Products

Such as illegal aphrodisiacs and similar products.

29 Dangerous Goods

  • Flammable and Explosive Materials : Including raw materials for their production.

  • Toxic and Corrosive Chemicals : Along with their raw materials.

  • Fireworks and Firecrackers : And devices for setting off fireworks and firecrackers.

  • Publications and Videos on Explosives : Materials that instruct on making explosives.

30 Regulated Knives

Knives that violate national controlled knife standards, such as daggers, three-edged knives (including those used for mechanical processing), switchblades with self-locking mechanisms, and other similar single-edged, double-edged, or three-edged sharp knives.

31 Illegally Obtained Goods

Goods obtained through smuggling, theft, or robbery.

32 Tobacco Products

Cigarettes, cigarette packs, cigarette labels, electronic cigarettes, and smoking cessation products.

33 Prohibited Food Items

  • Betel nut and its products.

  • Infant formula dairy products for babies aged 0-12 months (ie, stage 1 and stage 2).

34 Illegal Cash Advances

  • Services such as agent extraction of housing provident funds, social security, and credit card cash advances.

  • Cash advances using POS machines, card swiping rebates.

  • Credit card cash advances and credit card repayments on behalf of others.

35 Banned Advertising and Promotion

  • Crude oil and crude oil derivatives.

  • POS machine sales.

  • Private equity funds; private financial products.

  • IoT (Internet of Things) cards.

36 Non-compliant Loan Services

Such as campus loans, student loans, down payment loans, cosmetic loans, etc.

37 Non-compliant Securities Services

  • Stock recommendations, stock financing, stock leverage.

  • Trading of Hong Kong and US stocks.

38 Illegal Fundraising Activities

Illegally absorbing public deposits or disguised forms of public deposits, and illegal fundraising activities with the purpose of illegal possession using fraudulent methods.

39 Non-compliant Bank Card and Account Services

Copying/cracking or recycling of bank cards, handling of bank cards through non-bank official websites, handling of bank statements, buying and selling of bank accounts (bank cards), etc.

40 Products Infringing on Intellectual Property Rights

  • Trademark and Patent Infringements : Counterfeit and copycat products.

  • Copyright Infringements : Unauthorized films, television shows, software programs, websites, etc.

  • Private Servers and Cheats : Private servers refer to the unauthorized establishment of network servers after illegally obtaining server installation programs. Cheats refer to programs that use computer technology to alter parts of one or several online games to create cheating software.

  • Other Violations:Unlawful sales of gaming equipment from other manufacturers, impersonation of official game websites, and establishment of phishing websites.

41 Tax Evasion Products

Goods that have not gone through proper import procedures, such as “grey market” products, “European water”, “Hong Kong water”, and similar items.

42 Illegal Signal Interception Products

Devices like TV sticks and signal receivers that illegally intercept television signals.

43 Products Infringing on Property Rights

  • Products for electricity theft or illegal electricity saving, such as power-saving devices.

  • Wi-Fi moochers, dialers, and similar devices.

  • Products with unclear charges, malicious billing, hidden billing programs, or any situation that harms consumer rights, or containing malicious programs for account theft or password theft.

44 Privacy Invasion Equipment:

  • Eaves dropping devices, hidden cameras, pinhole cameras, information interception (fax, SMS, phone interception), and other equipment that may violate privacy.

  • Products that infringe on personal information, including but not limited to directly providing personal phone numbers, email addresses, and software or products used for collecting or stealing personal information (such as phishing websites).

  • Products with tracking capabilities, such as GPS trackers.

45 Non-compliant Motor Vehicles and Services

  • Cloned vehicles, smuggled vehicles, confiscated vehicles, illegal vehicles, unregistered vehicles, mortgaged vehicles, etc.

  • “Assembled motor vehicles”, “built motor vehicles”, or related service information.

46 Products Disrupting Traffic Safety

Products like radar detectors, electronic dogs, car concealment sprays, roll-up license plate frames, radar jammers, license plate covering devices, traffic signal changers, and similar items.

47 Prohibited Education and Training

  • Online advertisements for off-campus training for primary and secondary schools, kindergartens.

  • Franchise services for off-campus training for primary and secondary schools, kindergartens.

48 Exam and Thesis Fraud

Impersonating test takers, ghostwriting theses, etc.

49 Non-compliant Software Tools

  • Software advertised as making free calls (Note: Not instant communication tools, products that can directly make free calls without phone charges using certain means).

  • Military software.

  • Overseas marriage service software.

50 Political News

Political: Domestic and foreign military and political news, reactionary remarks, etc.

51 Illegal Game Agents

Merchants and regional privileged agents for special permissions in games (such as selling room cards).

52 Military Aircraft

Aircraft that directly participate in combat, support combat operations, and military training, such as fighter jets, bombers, special operations aircraft, etc.

53 Non-compliant Real Estate Business

  • Types of real estate transactions: Real estate and land not normally sold or not qualified for listing, such as small property rights, account-settlement houses, land transactions, property exchange for old, mortgaged houses, etc.

  • Real estate peripheral business: Beyond the normal living and use functions of real estate, emphasizing financing, investment, medical services, including real estate investment or investment lectures, financing or disguised financing content, medical services, housing for the elderly, real estate investment immigration, etc.

54 Illegal Fishing Products

Electric fishing devices, sail nets, ground cages, beach seines, net cages, dense mesh screens, towed pump suction rakes, and other fishing gear.

55 Other Illegal and Non-compliant Products and Services

  • Surrogacy, drug testing, fetal gender determination services.

  • Human organs, remains, animal carcasses, etc.

  • Advertisements for car decoders, master keys, and other technologies that can be used for criminal activities.

  • Private detectives.

  • Medicated cosmetics.

  • Medical waste.

  • Products for reducing or limiting the speed of bicycles.

  • Online part-time fraud (such as typists, data entry clerks), personal manual processing fraud (such as wormwood processing, manual beading), etc.

  • Others.

Measure

Measure

Categories
Topics

Programmatic Advertising in China 101

China’s programmatic advertising market has seen unprecedented prosperity since 2012, a year that is also dubbed as the “Year One” of programmatic advertising in China. With the flourishing development of the internet traffic market, China’s programmatic advertising ecosystem has become increasingly mature, gradually meeting advertisers’ needs for fine-group screening of quality customers, comprehensive control and constant adjustment of the advertising process, following customer trends to lock media platforms, and recalling high-potential customers for repeated exposure. This article will provide a complete practical guide based on China’s programmatic advertising market.

01 Planning Phase

Step 1: Define Objectives

Before clarifying the objectives, brands often complete the analysis of the consumer portrait for the promoted product, competitive advertising analysis, and summary of product selling points. With the support of the above information, the brand needs to define the goals of programmatic advertising, whether it is to enhance brand exposure, improve customer awareness, or enhance purchase conversion.

Domestic traffic vendors and media types are diverse and numerous, with a vast array of conversion models and indicators. Advertisers and their agencies need to set targets that are specifically tailored to their advertising needs and platform indicators. Taking the AIPL model indicators of Alibaba, a top-tier e-commerce platform in China, as an example:

Aware: Within the last 15 days, passively interacted with the brand, including behaviors such as exposure & clicks, browsing (limited to one day), watching, etc.

Interest: Within the last 15 days, actively engaged with the brand, including behaviors like membership, followership, interactions, browsing, favorites/add to cart, claiming trial products/samples, etc.

Purchase: All consumers who have purchased brand products in the last two and a half years (2*365 days + 180 days), including those who made pre-sale deposits, scanned codes for Taobao eggs after purchase, used offline cloud POS payment consumers, made purchases via iStore mini-program, scanned codes for Taobao eggs after purchase, included consumers who purchased on Taoxian, including those who bought Tmall u-first samples) minus “Loyalty” consumers.

Loyalty: Consumers who have had positive comments/positive follow-up reviews or have purchased the brand’s products at least twice within the past 365 days.

Step 2: Refine Audience Strategies

Audience strategies are often rooted in product features, brand tone, and combined with past advertising experiences. It is even possible to seek recommendations from local media, third-party advertising agencies, and traffic platforms. The premise of programmatic advertising effectiveness is the brand’s reasonable segmentation of user groups, so that in the process of traffic purchase and expansion, it can better hit the brand’s target audience. Specific classification methods can refer to the “4W1H” model.

Who: Refers to user attributes, judging what type of user it is based on attributes (gender, age, region, income, interests, etc.), such as student groups who love affordable makeup, white-collar workers who like to watch fashion bloggers’ videos, users with a high-level VIP status, etc.

When: Refers to the time corresponding to user behavior, from which the user’s visit duration, frequency, interval, etc., can be calculated. For example, first-time visits to the official website, not logged in for 30 days, purchased within 15 days, etc.

Where: Refers to the user’s source, such as entering through an ad click, through a friend’s share, or through a search engine, etc. Users from different sources represent different groups. For example, those who enter through search keywords belong to an active group of users, which is more in line with the advertiser’s needs; while those who enter by clicking on ads may be interested because of the attraction of the ad content, etc.

What: Refers to the user’s behavior, such as what type of ads they have clicked on, what content they have visited, what products they have purchased, etc.

How: Refers to the user’s quality, which can be measured by visit depth, number of behaviors, order amount, etc. For example, a user who has browsed 50 different product pages, a user who has made a total of 20 orders within a year, a user with an order amount of more than 100,000 yuan in 30 days, etc.

Step 3: Develop Media Strategy

In the face of numerous media resources, it is particularly important to formulate an appropriate media strategy before advertising, which depends on the objectives. The principle of formulating a media strategy is “positive, high coverage, and strong exposure,” and to design the media around advertising forms, page environments, media quality, advertising area, screen position, to meet the KPI requirements.

Advertising Forms: The form of advertising to some extent determines the user experience and interaction form. Common forms in programmatic advertising include banner image ads, video ads, native ads, etc.

Page Environment: Refers to the state of the page where the advertisement is placed, including page content, the number of page advertisements, etc. Especially when placing brand advertisements, advertisers usually require that the page content must be positive, in line with the brand image, and must not contain pornographic and vulgar, politically sensitive information, etc.. Moreover, the number of page advertisements should not be too many. An environment full of advertisements on the entire page will cause trouble for users and seriously affect the user experience, causing users to have a negative impression of the page and the advertisements within the page.

Media Quality: When formulating a media strategy, attention should be paid to the quality and quantity of the media. Quality refers to whether the media’s traffic scale and user groups are of high quality and in line with the advertiser’s needs. In addition, it is necessary to consider the category of these media (such as entertainment), channels (such as TV series), historical data of advertising positions (such as click-through rate), etc. Quantity refers to the media traffic being large enough to ensure sufficient user coverage and meet the advertiser’s budget.

Advertising Area: The ratio of advertising size and the proportion of advertising area on the page are also very important. If the advertising size is too small or the proportion of the entire page is too low, it is difficult to be discovered by users; non-standard size ratios will increase the cost of material production.

Screen Position: The screen position where the advertising position is located determines the probability of the advertisement being seen. The first screen is generally better than the non-first screen, and the effect of the last screen advertisement may be the worst. However, for some pages with high-quality content, the exposure probability of the second screen or even the third screen will also be high.

Step 4: Develop Creative Solutions

The first step in creating creativity is to grasp the form of creativity and the way users interact. The form of creativity refers to what file form the material is presented in, such as images, text, graphics and text, Flash, video, forms, or others. At present, video creativity and post creativity (such as information streams) have the best effects, which are related to the characteristics of the advertising space. The price of such advertising spaces is also a bit higher than that of ordinary advertising spaces.

User interaction refers to the specific operations of users on the material, such as clicking to switch dynamic creativity, filling in registration information on the creativity, expanding the material after clicking on the advertisement, and even submitting information by voice.

In the process of advertising, both the created creativity and the landing page need to undergo A/B testing or multi-version testing, using data to determine which version to adopt in the end. The premise of the test is to keep the test environment and the test volume of multiple versions as consistent as possible.

02 Execution Phase

Step 1: Advertising Preparation

The preparatory work before advertising mainly includes uploading qualifications for review, creating creativity for review, and deploying advertising monitoring, etc.

Qualifications are the necessary proof documents for advertisers to carry out advertising activities (such as business licenses, ICP filing screenshots, organization codes, etc.).

In terms of creativity, traffic parties will also have certain requirements for the effectiveness and legality of the content, so the media needs to review the creativity. Common review scopes include size, sound, etc.

In addition, advertisers generally use third-party monitoring during the advertising process, so there is also the deployment work of monitoring codes, etc. Optimization strategies need to add code in the advertiser’s game promotion page or SDK (or S2S docking), so that the DSP platform can adjust strategies according to different user behavior trajectories.

A good job in the early preparation work does not mean that the ads can be directly placed without manual intervention. Advertising activities should also be gradually increased in multiple stages to ensure the final effect. Programmatic advertising in China can be generally divided into four stages: technical docking test, strategy test, strategy optimization, and stable extension, each with a corresponding time period, and should be flexibly adjusted according to the actual situation of the project.

Technical Docking Test Phase: This phase usually lasts for 1 to 3 days, mainly to check whether the work in the preparation phase runs well, such as whether the statistical monitoring code is deployed correctly, whether S2S docking can correctly return data, etc.

Strategy Test Phase: This phase usually takes 3-7 days to verify whether the media strategy formulated in the advertising strategy is reasonable and whether the media effect has reached the expected level. Based on the test data, corresponding grade divisions are made for different AdX/SSP, different media, different advertising spaces, etc., so as to better allocate the budget in the later stage.

Strategy Optimization Phase: This phase usually lasts for about 1 week to 1 month. On the basis of optimization and adjustment in the early test phase, further optimization of the media is carried out, and the crowd strategy and creative strategy formulated in the advertising strategy are continuously optimized. During the strategy optimization phase, the fluctuation of advertising effects is generally large, which is a normal phenomenon. During this phase, various strategy combinations are usually tried, and the effects of different combinations may vary greatly. The goal of this phase is to quickly screen out the optimal combination of “media + audience group + creativity”, so that the advertising effect reaches a stable change and regular fluctuation trend, such as the effect of the weekend is better than working days, the effect of the evening peak period is better than the daytime, etc.

Stable Extension Phase: This phase is usually more than 1 month according to the brand’s needs. After the stable effect is achieved in the strategy optimization phase, the volume of traffic can be increased according to the budget. Especially in the RTB bidding model, the volume and price of traffic will fluctuate due to the different degrees of market competition, hence the operator needs to be able to find problems in time and take actions.

Step 2: Official Launch

After the qualification and material review are passed, the executor needs to add various advertising campaigns according to the planning plan of the advertising proposal and set up corresponding campaign.

Basic Settings

Bid Setting: Set the upper limit of the price that can be borne, generally in the form of CPM, to control the cost within an acceptable range. Some DSP can support bidding according to CPC or CPA (the algorithm replaces manual dynamic control of CPM bidding).

Budget Control: Set the budget according to the media budget plan provided by the advertiser/advertising agent to avoid excessive consumption. The budget is divided into daily budget, weekly budget, monthly budget, and total budget. Some DSP can also control the level of exposure and the number of clicks, corresponding to daily exposure, total exposure, or daily clicks, total clicks, etc. In addition, there are also settings for budget allocation, such as setting differentiated budgets for different regions, different creatives, etc.

Date and Time: Set the date or time period according to the advertising schedule, or there is no limit. Date and time can be set according to the online habits of the target audience. The date or the daily advertising time period will have an impact on the effect, such as weekends, evening peak periods.

Advertising Speed: The Advertising speed is divided into uniform speed and rapid speed. Some advertisers hope that the advertising budget can be as distributed as possible in each time period or every day, and the activity can be set to “uniform speed”.

Frequency Control: Set the total number of times a specific advertisement is seen by the same user within a set time, or the total number of times a certain advertising material is seen within a set time.

Media Settings

Transaction Model: Select the transaction model, including RTB open bidding, PDB direct purchase, etc.

Ad Exchange: Choose the channel for advertising, such as Baidu Bes, Alibaba Tanx, Tencent AdX, etc.

Media Category/Channel: Select the category of media or a specific channel under a single medium, such as financial, entertainment, sports, and other media categories, or TV drama, movie, technology, sports, and other channels under Youku media.

Media URL: Set specific media root domain names (e.g., qq.com), second-level domains (e.g., news.qq.com), or specific URL addresses.

Placement Size: Choose the placement size and arrange corresponding size materials. Generally, popular ad spaces or commonly used high-quality ad spaces are selected.

Ad Position: Choose the specific ad position, such as WeChat Search Super Brand Zone.

Ad Position Type: Choose the type of ad placement, such as banner, information game, OTV, etc.

Ad Viewability: According to the advertiser’s requirements for viewability, the operators can only target media resources with a viewability higher than a certain value, or conversely, they can exclude media resources with a viewability lower than a certain value and not place ads on this part of the media resources.

Page Ad Slot Quantity: Since the number of ad slots on the page will affect the user experience, it may indirectly cause the user to have a negative impression of the page’s ads. Therefore, when placing ads, you can control the number of ad slots on the page, such as only targeting pages with up to 3 ad slots.

Screen Order: Choose the screen order where the ad space is located, such as the first screen, the second screen, etc. Generally, it is necessary to exclude the bottom of the page such as the tail screen and other positions where users generally cannot see this ad space.

Page Content: Choose to place ads based on designated page keywords, video content direction, such as only placing pages containing baby-related keywords, or only placing workplace drama video ads, and brand can also directly specify TV drama names for directional advertising.

Target Audience Settings

Advertisers can collect people who have seen, clicked on, and visited the official website during the advertising process, and retarget them or use them as the seed segment for look-alike extensions. The target audience may include people with needs, potential needs, and even those who have made purchases, as well as those who are using the product/service or the lost audience.

Creative Settings

Creative and landing page settings: Set up the creative and corresponding landing pages for different advertising campaigns. It should be noted that some AdX will require the landing page to support HTTPS.

Display rules: Set the rules for the order in which the creative is displayed to the same person multiple times. The general rules for the order in which users see the creative are loop rotation, sequential display, etc. For example, if you need to display creative A, B, C to the same user, with a frequency limit of 6 times a week, the order in which a user sees the creative can be AABBCC, ABCABC, etc.

Other Settings

Third-party monitoring: Set the exposure monitoring code and click monitoring code of the third-party monitoring platform.

Brand protection: Select the brand safety supplier that the DSP platform has connected and fill in the corresponding information.

Anti-fraud: Set up to filter fraudulent traffic. Some DSP platforms have anti-fraud mechanisms themselves, but some advertisers will also find third-party anti-fraud suppliers for traffic filtering in order to ensure the effectiveness and reduce waste.

03 Review Phase

Based on the actual feedback data during the advertising period, the brand can summarize the experience and guide subsequent campaigns through comparison, attribution, segmentation, and intersection.

Media optimization: Make the optimal media combination according to the media crowd matching degree, media overlap degree, and media saturation degree. Media matching degree refers to the ratio of the advertiser’s target audience that can be covered in the media; Media overlap degree refers to the ratio of the target audience that overlaps between multiple media; Media saturation degree refers to the ratio of the target audience that has been covered in the media to the total target audience of the media.

Creative Optimization: The match between the ad’s creative and its intended message plays a significant role in determining the effectiveness of an ad campaign. Ad matching refers to how well the creative aligns with the ad’s appeal.

Frequency Adjustment: Identify the optimal frequency by analyzing data from groups exposed to different levels of ad impressions, and establish reasonable frequency capping.

Audience Adjustment: Depending on the scale of the target audience and their conversion outcomes, you can correspondingly increase or decrease the targeting of audience segments.

Viewable Exposure Optimization: Optimize based on data from ad viewability, analyzing visibility metrics across various ad placements, regions, times, and browsers (for instance, visibility might be lower in certain areas or browsers due to differences in audience characteristics or internet connectivity issues). Filter out those with low viewability and fine-tune the advertksk g with various campaign settings to form the best combination.

Measure

Measure

Categories
Topics

China’s Media Platforms’ Regulatory Guidelines for Advertising Content

China’s Media Platforms’ Regulatory Guidelines for Advertising Content

Blog

发布时间：2024-07-15   作者：

For advertisers, after navigating through the initial strategy formulation, plan refinement, and qualification review, only to be thwarted by media platforms repeatedly returning advertising materials and even facing penalties and restrictions from the platforms due to non-compliant materials, it’s a loss that no one wants. The following guidelines from China’s top traffic platforms can help brands avoid pitfalls in advance, thus smoothly advancing their deployment plans.对于广告主来说，经过最初的策略制定、方案细化、资质审核后，却被媒体平台屡屡退回广告材料所阻，甚至因材料不合规而面临平台的处罚和限制，这是一种无可挽回的损失。一个想要。以下来自中国顶级流量平台的指引，可以帮助品牌提前规避陷阱，从而顺利推进布局计划。

01 Advertising Must Not Have the Following Circumstances

  • Use or indirectly use the national flag, national anthem, national emblem, military flag, military anthem, or military emblem of the People’s Republic of China.

  • Use or indirectly use the name or image of state organs or their staff.

  • Must not exploit the images of party and state leaders (including various cartoon virtual images), including current, former, or deceased party and state leaders for commercial promotion.

  • Impair the dignity or interests of the state, or disclose state secrets.

  • Disrupt social stability or harm the public interest of society.

  • Endanger personal or property safety, or disclose personal privacy.

  • Disrupt public order or violate social ethics.

  • Contain obscene, pornographic, gambling, superstitious, terrorist, or violent content.

  • Contain content discriminating against ethnicity, race, religion, or gender.

  • Impede environmental, natural resource, or cultural heritage protection.

  • Other circumstances prohibited by laws or administrative regulations.

02 Advertising Must Not Contain False or Misleading Content, Must Not Deceive or Mislead Consumers

  • Advertising should be recognizable, allowing consumers to identify it as such.

  • Must not disguise advertising in the form of news reports. Advertisements published through mass media should prominently display “Advertisement” to distinguish from other non-advertising information, preventing consumer misunderstanding.

  • Must not deceive or mislead consumers with non-existent goods or services.

  • Must not present information about the product’s performance, function, origin, purpose, quality, specifications, ingredients, price, manufacturer, shelf life, sales status, honors received, or promises related to goods or services that do not match the actual situation.

  • Must not use fabricated, forged, or unverifiable scientific research results, statistical data, survey results, excerpts, quotes, or other information as proof.

  • Must not fabricate the effects of using products or receiving services.

  • Apart from the above, must not deceive or mislead consumers with false or misleading content.

03 Prohibition of Using Absolute Phrases Such as “National Level,” “Highest Grade,” “Best,” etc.

Advertising is prohibited from using absolute phrases such as “national level,” “highest grade,” “best,” “top level,” “number one brand,” “elite,” “supreme,” “most popular,” etc. Expressions in the form of “one of the most…” are considered to represent the highest degree of an adjective and are also prohibited in advertising. However, objective statements that meet the following specific conditions can be used:

Objective factual statements, but legal evidence should be provided.

“XX Competition First Place” falls into this category. For example, if an advertiser participates in an authoritative competition or an analysis report issued by an authoritative institution shows their winning rank, such as a design company winning first place in an international competition. If the “national level” title is obtained through legal or administrative authorization (non-authoritative awards without legal or regulatory authorization do not qualify), the standardized name should be allowed for use. Advertisers should provide award certificates, selection results, and other relevant proof documents.

Temporal or spatial order statements, but legal evidence should be provided.

Expressions such as “first model, debut, first release, earliest, exclusive, only” belong to this category. For example, if game company A launches mobile game B for the first time, it can be described as “A’s first mobile game” or “A’s first mobile game.” If advertiser A obtains exclusive authorization for a game, they may use “A’s exclusive release” or “A platform’s first launch” in advertising. Advertisers should provide authorization letters, copyright registration certificates, and other relevant proof documents.

Explicit self-comparison of degree grading.

This refers to the objective existence of different grading quality products in one’s own products, and the use of words to distinguish these grades.

For example: The largest housing model of Company X, the smallest size of Product X, the top configuration model of the X series of cars, the mobile game with the most users of Company X, etc.

Grading recognized by relevant standards in a certain industry field, or grading widely accepted by the public.

For example: In the national standard of Anji white tea, the product is divided into four quality grades: “boutique, special grade, first grade, second grade”. For specific “boutique grade” Anji white tea advertisements called “the highest grade” or “the highest level” usually do not belong to the absolute words prohibited from use. Advertisers need to provide relevant grading basis and grade inspection certificates, and must not promote multiple grades as the highest level at the same time.

Explicitly indicate the business philosophy and pursuit goals of the merchant, and objectively there is no possibility of misleading.

“Customer first, strive for perfect quality” and so on belong to this category. Such expressions must not lead consumers to think that the advertiser’s products and services are “first” or “perfect”, that is, they must not lead consumers to link the advertiser’s business philosophy or pursuit goals with the quality of products and services.

04 Standards for Data and Material Citation

Any content cited in advertising is considered part of the advertising content itself. Therefore, the expression of cited content must also comply with the relevant regulations of the Advertising Law, and the review standards for the expression of cited content are consistent with the general advertising content review standards. When using data, statistical materials, survey results, excerpts, quotes, and other cited content in advertising, it must be true, accurate, and indicate the source. If the cited content has an applicable scope and a validity period, it should be clearly stated. The following are prohibited for cited materials:

  • Cited materials must not involve the highest level of expression, national level expression, and other content that violates the relevant provisions of the Advertising Law.

  • Cited materials must not involve obviously false propaganda content.

  • Cited materials should be consistent with the original content and must not be fabricated, switched, or exaggerated. They must not engage in taking things out of context, concealing facts, distorting the original meaning, or causing misunderstandings among the audience.

  • It is forbidden to use consumer evaluations, beneficiary images, and other related comments from individual natural persons or users as cited materials.

05 Standards for Patent Expression in Advertising

  • When using patented products or patent methods in advertising, the patent number and type should be indicated.

  • Those who have not obtained patent rights must not falsely claim to have obtained patent rights in advertising.

  • It is forbidden to use patent applications that have not been granted and patents that have been terminated, revoked, or invalidated for advertising.

06 Regarding the Use of Names, Images, Copyright, and Trademarks

  • Utilizing the name or image of another party (including individuals, enterprises, and other organizations) in advertising requires prior written consent; for those without or limited civil conduct capacity, consent must be obtained from their guardians. Proof of authorization must be provided for such use.

  • Unauthorized use of others’ works and trademarks is prohibited; consent and proof of authorization are mandatory when needed.

  • According to the “Trademark Law of the People’s Republic of China,” producers and operators are prohibited from using the term “well-known trademark” on products, packaging, containers, or in advertising, exhibitions, and other commercial activities; the term must not appear in advertisements.

07 Compliance with Advertising Endorsement Rules

An advertising endorser is a natural person, legal entity, or other organization that recommends or certifies goods or services in their own name or image, apart from the advertiser. The following rules must be observed when using an endorser in advertising:

  • Endorsements must be based on facts, comply with relevant laws and regulations, and must not endorse goods or services that the endorser has not used or received.

  • Minors under ten years of age may not be used as advertising endorsers. When using minors, verify their age (under ten is prohibited) and obtain authorization from the minor and their legal guardians.

  • The names or images of medical institutions or doctors must not be used in food advertising. Expert or consumer names or images must not be used to certify specific effects in food advertising.

  • Investment-expected goods or services, education, and training advertisements must not use the names or images of research institutions, academic bodies, educational institutions, industry associations, professionals, or beneficiaries for recommendations or certifications.

  • Medical, pharmaceutical, medical device, and health food advertisements must not utilize endorsers for recommendations or certifications.

  • Advertisements for pesticides, veterinary drugs, feed, feed additives, crop seeds, forest seeds, grass seeds, breeding livestock, and aquaculture must not use the names or images of research institutions, academic bodies, technology promotion organizations, industry associations, or professionals, or users for recommendations or certifications.

  • Natural persons, legal entities, or other organizations that have received administrative penalties for endorsements in false advertisements within the past three years must not be used as endorsers.

08 Protection Regulations for Minors

Advertisements for goods or services targeting minors under fourteen years of age must not contain the following: 

  • Encouraging them to demand that their parents purchase the advertised goods or services. 

  • Content that may prompt imitation of unsafe behaviors.

  • Mass media targeting minors must not publish advertisements for medical treatment, drugs, health foods, medical devices, cosmetics, alcohol, beauty products, or online games detrimental to the physical and mental health of minors.

09 Prohibition of Disparaging Other Producers’ Goods or Services

  • Advertisements must not fabricate or invent facts to defame or belittle others’ products or services.

  • Advertisements must not indirectly belittle others’ products or services by claiming superiority in quality, price, etc.

10 Standardization and Regulation of Advertising Language

  • Pinyin must not be used in isolation in advertisements; when used, it should be correct, standardized, and appear alongside standardized Chinese characters.

  • The use of numbers, punctuation, measurement units, etc., in advertisements must comply with national standards and regulations.

  • Foreign languages must not be used in isolation in advertisements; when necessary, they should complement Mandarin and standardized Chinese characters.

  • The use of idioms in advertisements must adhere to national regulations and must not mislead or negatively impact society.

  • Handwritten fonts, artistic fonts, variant characters, and ancient scripts used in advertisements for creative purposes must be recognizable and must not mislead.

The following are prohibited in advertising language and script:

  • The use of incorrect characters.

  • The use of traditional characters in violation of national laws and regulations.

  • The use of obsolete variant and simplified characters.

  • The use of obsolete print character forms.

  • Other non-standard uses of language and script.

11 Respect for Heroes and Martyrs

  • Commercial advertisements must not use or indirectly use the names or portraits of heroes and martyrs.

  • Commercial advertisements must not feature the Monument to the People’s Heroes in Tiananmen Square, Beijing, or any related names, inscriptions, texts, reliefs, graphics, or logos.

  • Images or videos depicting activities that harm the environment or atmosphere of memorial facilities for heroes and martyrs are prohibited.

  • No promotion or glorification of aggressive wars or acts of aggression is allowed.

12 Miscellaneous

  • The maximum value of the top prize in lottery-style promotional sales must not exceed 50,000 yuan.

  • The depiction of the RMB is prohibited in advertisements.

  • Content implying “national inspection-exempt products” or similar regarding quality exemption is prohibited.

  • Advertisements are banned from featuring tobacco, smoking images, including real and cartoon characters, and the promotion of cigarettes and e-cigarettes is forbidden.

  • Advertisements must not be disguised as news reports.

  • Advertisements must not contain content such as “special supply” or “exclusive supply” to state organs, with specific requirements as follows:

  • Content containing “special supply” or “exclusive supply” to state organs or similar.

  • Using names of specific locations or landmark buildings closely associated with state organs, and using state banquets, state guests, etc., to promote “special supply” or “exclusive supply.”

  • Falsely using “special supply,” “exclusive supply,” or similar names to sell goods or services, engaging in misleading false propaganda.

  • Other content containing “special supply,” “exclusive supply” to state organs, and similar, which may cause adverse social impact.

  • Except for the above, if a product is specially made by the manufacturer for a specific region or event (such as special packaging, models), it can be used, such as “exclusively supplied to Hangzhou area.”

Measure

Measure

Categories
Topics

Interpretation of Advertising Monitoring Indicators in China

Interpretation of Advertising Monitoring Indicators in China

Blog

发布时间：2024-07-29   作者：

Advertising effectiveness monitoring indicators are crucial for advertisers to determine the effectiveness of advertisements and how to optimize them. The commonly used advertising monitoring indicators by Chinese advertisers mainly include four major categories: traffic indicators, interaction indicators, conversion indicators, and cost indicators.

Traffic Indicators

Ad Impressions

The total number of times an advertisement is displayed on a specific website within a designated time period. High exposure means the advertisement has a wide reach, but it is also important to avoid ineffective exposures. This indicator cannot measure whether users have actually seen the advertisement, as it can be affected by factors such as page scroll speed, which affects the visibility of the advertisement.

Unique Impressions

Unique impressions refer to the number of exposures after excluding multiple exposures by the same user, which is mainly achieved by excluding duplicate cookies.

Calculating the ratio of ad impressions to unique impressions (Impression/Unique Impression) is one of the simple ways to identify ad fraud. A high ratio indicates that some users are repeatedly visiting in large numbers, suggesting that the website may have abnormal traffic and is suspected of having machine-generated traffic.

Viewable Impressions

Viewable impressions are based on the visibility of the advertisement. The IAB (Interactive Advertising Bureau) stipulates: For PC-side image advertisements, 50% of the pixels are displayed for more than 1 second, and for PC-side video advertisements, 50% of the pixels are displayed for more than 2 seconds, which can be considered viewable impressions. Additionally, for larger ad formats, 30% of the pixels displayed for more than 1 second can be considered 1 viewable impression.

The internet advertising pricing model related to this indicator is CPMv (cost per mille viewable impression), which is the cost for a thousand viewable impressions. The new CPM selling method used by Tencent mentioned earlier is CPMv. This selling method excludes data for advertisements that have not been actually watched, which can ensure the fairness, authenticity, and effectiveness of advertising transactions to a certain extent, help advertisers improve advertising effectiveness, save advertising budgets wasted on poor media resources or content, and improve ROI, thus being welcomed by advertisers.

Clicks

Clicks are the metrics used to measure user behavior after ad exposure. Clicks are the key actions that link front-end advertisements with back-end landing pages, reflecting the audience’s interest in the advertisement. Factors affecting clicks include two aspects: first, the accuracy of ad placement, and second, the quality of ad creativity.

Click-Through Rate (CTR)

The ratio of clicks to impressions (Click/Impression), the click-through rate allows for a horizontal comparison of the effectiveness of different advertisements and is the most direct and persuasive quantitative indicator reflecting the effectiveness of online advertising. Factors affecting the click-through rate include: the number of impressions, which only becomes relatively stable after reaching a certain quantity, objectively reflecting the effectiveness of the advertisement; the accuracy of ad placement, the higher the proportion of the target consumer group reached, the higher the click-through rate; the attractiveness of ad creativity, the stronger the visual impact and the more attractive the content, the higher the click-through rate.

Page Views (PV)

Page views are a commonly used indicator for website traffic statistics. A request from the user’s end to open a page is considered one page view. Page views are one of the commonly used traffic indicators for monitoring ad landing pages. To a certain extent, they can reflect the degree to which the interests and desires of the ad audience are stimulated and can reflect a certain advertising effect.

Visits

Visits are commonly used in website traffic analysis to describe a series of user behaviors within a certain period of time or in the process of achieving a certain goal. The mainstream view is that visits refer to the number of times users visit a website.

Visits can be used for the calculation of CPV (Cost Per Visit), which is the cost per visit. In practical applications, it is rarely used as a billing method in settlements between media and advertisers, but rather as an indicator for advertisers to measure the ROI of marketing activities.

Unique Visitors (UV)

Unique visitors are used to measure the number of website visitors. According to the “China Mobile Internet Advertising Standards,” a device visiting a website within a specified time period is counted as one visitor, and the same device will only be counted once within the specified time period.

Compared with other traffic indicators, unique visitors are centered on a user as a measure, which can help advertisers more accurately identify the audience affected by advertising activities, and can also be used to identify simple traffic fraud. Unique visitors can be used for CPUV (Cost Per Unique Visitor), which is the cost per unique visitor. However, like CPV, it is often not used as a billing method in advertising transactions between advertisers and media, but rather as an ROI indicator set by advertisers according to the goals of the advertising campaign.

Interaction Indicators

Traffic indicators describe the arrival of users for advertisements and landing pages, while interaction indicators describe the depth of user participation. Compared with traffic indicators, the standardization of interaction indicators is relatively low.

Bounce Rate

Bounce rate refers to the ratio of users who, after clicking on an advertisement and entering the advertiser’s promoted page, do not generate further clicks and choose to leave directly. In internet marketing, the bounce rate can be used to measure the quality of external traffic and the attractiveness of website content to the audience. The higher the quality of external traffic and the more accurate the front-end advertising, the more target users can be attracted, and the lower the bounce rate of users after entering the website.

2nd-Click Rate

When a first-level website page is clicked and opened, any additional clicks generated by the user on the page are called “2nd-clicks,” and the number of 2nd-clicks is referred to as “2nd-click volume.” The ratio of “2nd-click volume” to page views is called the page’s “2nd-click rate.”

Visit Depth (PV/V)

Visit depth (PV/V) is an average number, referring to the number of times a specific web page is exposed to a visitor during a single visit, calculated as page views divided by visits. The higher the visit depth, the more pages a visitor browses in one visit, the more information they get, and the greater the value of these visits to advertisers.

Visit Duration

Visit duration (Time on Site) is also an average number, a measure of the length of visits, specifically the average time spent per visit, calculated as total visit time divided by visits. Theoretically, the longer the visit duration, the better the interactive effect of the advertisement.

Conversion Indicators

Conversion indicators are the most valuable category of indicators for businesses as they directly reflect the benefits that advertising activities bring to the enterprise, and thus are increasingly valued by advertisers.

Photo by Oliur on Unsplash

Conversion rate refers to the ratio of the number of times users complete specific actions (such as purchases, registrations, etc.) to the number of clicks, and is a key indicator for evaluating the effectiveness of advertisements. Specific actions for conversion include:

Sales-related conversion indicators

Offline: The number of store visits

Online: The number of orders placed and purchases completed

App-related conversion indicators

Downloads

Active users

Registrations Users

Retention

In-app purchases

Cost Indicators

Cost Per Thousand Impressions (CPM)

Refers to the cost per thousand impressions when advertising is placed, reflecting the cost of advertising placement.

Cost Per Click (CPC)

Refers to the cost per click when advertising is placed, reflecting the cost of advertising placement.

Cost Per Conversion (CPA)

Refers to the cost per conversion action when advertising is placed, reflecting the cost of advertising placement.

Advertising Monitoring Fields

The following are fields involved in the advertising monitoring process in China, covering data from multiple aspects such as users, devices, advertising activities, geographic locations, and network environments. Through the analysis of these data, advertisers can comprehensively understand the display, click-through, and conversion effects of advertisements, optimize advertising placement strategies, and improve the ROI (Return on Investment) of advertisements.

Field Name

Data Format

Meaning

Value

user_id

string

Unique identifier for the user

Used to distinguish different users

user_id_type

string

Type of user identifier, such as device ID, email

Helps to understand the source of user_id

req_time

bigint

Request time, records the timestamp of the user’s ad request

Used to analyze user behavior and ad display timeliness

ip

string

User’s IP address

Used for geographical analysis and user identity verification

cookie

string

Cookie data from the user’s browser

Used to track user’s online activities and ad effectiveness

source

string

Traffic source

Identifies the channel or platform the ad traffic comes from

campaign_id

string

Unique identifier for the ad campaign

Used to distinguish and analyze different ad campaigns

order_id

string

Order ID

Used to track transactions and conversions related to the ad

url

string

Target URL of the ad display or click

Used to analyze ad effectiveness and user behavior

os

string

Operating system information of the user’s device

Used for device and platform compatibility analysis

ad_ip

string

IP address of the ad server

Used to track the source of ad requests

idfa

string

Advertising identifier for iOS devices

Used for mobile ad tracking

idfa_md5

string

MD5 encrypted form of IDFA

Used for privacy protection and data matching

idfa_sha1

string

SHA1 encrypted form of IDFA

Used for privacy protection and data matching

imei

string

International Mobile Equipment Identity for Android devices

Used for device identification

imei_md5

string

MD5 encrypted form of IMEI

Used for privacy protection and data matching

imei_sha1

string

SHA1 encrypted form of IMEI

Used for privacy protection and data matching

android_id

string

Unique identifier for Android devices

Used for device identification

android_id_md5

string

MD5 encrypted form of Android ID

Used for privacy protection and data matching

android_id_sha1

string

SHA1 encrypted form of Android ID

Used for privacy protection and data matching

mac_md5

string

MD5 encrypted form of device MAC address

Used for device identification and privacy protection

android_advertising_id

string

Advertising identifier for Android devices

Used for ad tracking

ad_timestamp

bigint

Timestamp of the ad event

Used to accurately record the time of ad display and click

oaid

string

Open Advertising Identifier

Used to replace traditional device identifiers and enhance privacy protection

callback_url

string

Callback URL

Used for server-to-server notifications and data transmission after ad click

user_agent

string

User agent string of the user’s browser

Used to identify device and browser information

brand

string

Device brand information

Used for market analysis and device performance evaluation

network_type

string

Network type, such as WiFi, 4G

Used to analyze the network environment of the ad display

csite

string

Content site

Identifies the specific site or app location where the ad is displayed

stype

string

Ad type, such as display ad, video ad, etc.

Used for categorization and effectiveness analysis

extend

string

Extension field

Used for storing other custom data

open_udid

string

Open Unique Device Identifier

Used for device identification and ad tracking

plan_id

string

Ad plan ID

Used to distinguish and manage different ad plans

platform

string

Ad serving platform, such as mobile, PC, etc.

Used to distinguish the platform where the ad is served

publisher_id

string

Publisher ID

Used to distinguish different ad publishers

adzone_type

string

Type of ad placement, e.g., banner ads, interstitial ads

Used for classification and performance analysis

adzone_id

string

Ad placement ID to distinguish different ad display positions

Used to distinguish different ad display positions

province_id

string

Province ID for geographical analysis

Used for geographical analysis

city_id

string

City ID for geographical analysis

Used for geographical analysis

county_id

string

County ID for more detailed geographical analysis

Used for more detailed geographical analysis

traffic_type

string

Type of traffic, e.g., organic traffic, paid traffic

Used for traffic quality analysis

adx_id

string

Ad Exchange Platform ID

Used to distinguish and manage different ad exchange platforms.

app_package

string

App Package Name

Used for identifying and analyzing different mobile applications

main_domain

string

Main Domain

Used for analyzing the domain source of ad display

num

int

Number of Ad Requests

Used for statistics and analysis of ad request volume

log_type

string

Log Type, such as display log, click log, etc.

Used for classification and analysis

sub_customer_id

string

Sub-Customer ID

Used for multi-level customer management and analysis

session_id

string

Session ID

Used for tracking a user’s single visit behavior

order_type

string

Order Type, such as purchase, registration, etc.

Used for conversion analysis.

creative_id

string

Creative ID

Used to distinguish and manage different ad creatives

app_id

string

App ID

Used for identifying and analyzing different mobile applications

app_name

string

App Name

Used for identifying and analyzing different mobile applications

ref_url

string

Reference URL

Used for analyzing traffic sources

creative_type

string

Creative Type, such as images, videos, etc.

Used for classification and performance analysis

id

string

General ID

Used to identify the uniqueness of the record

ad_id

string

Ad ID

Used to distinguish and manage different ads

customer_id

string

Customer ID

Used to distinguish and manage different ad customers

device_name

string

Device Name

Used for device identification and analysis

browser_name

string

Browser Name

Used for identifying the browser used by the user

bizdate

string

Business Date

Used for statistics and analysis by date

bizhour

string

Business Hour

Used for statistics and analysis by hour

data_source

string

Data Source

Used to distinguish and analyze different data collection channels

In the area of advertising monitoring, some fields may be more commonly seen in the Chinese internet environment, mainly due to China’s unique advertising technology standards, device identifiers, and certain characteristics of some application markets:

oaid: Open Advertising Identifier, a device identifier introduced by Chinese device manufacturers to replace traditional identifiers and enhance privacy protection.

android_id: In China, many devices and advertising networks rely on this identifier.

open_udid: Open Unique Device Identifier, which is quite common on some Chinese advertising platforms and applications.

mac_md5: Although used globally, in the Chinese market, this field is often used for device identification.

imei, imei_md5, imei_sha1: IMEI is globally universal, but in China, especially in early advertising monitoring, it is common to see the use of IMEI and its encrypted forms.

idfa, idfa_md5, idfa_sha1: Although IDFA is a global standard for Apple devices, it is also frequently used in iOS advertising tracking in China.

ad_timestamp: The timestamp of the advertising event, universally used globally, but the format and specific implementation may vary by region.

app_package: The application package name, used to identify applications in China’s unique app markets.

app_name: The application name, which often appears in Chinese advertising monitoring to identify specific applications.

province_id, city_id, county_id: These geographical location identifiers are especially common in Chinese advertising monitoring, used for fine-grained regional analysis.

bizdate, bizhour: Fields used for statistics by date and hour, frequently used in Chinese advertising reports and analysis.

adzone_id, adzone_type: The type and ID of the advertising space, these fields are very common on Chinese advertising platforms for ad space management and analysis.

How to Read Advertising Monitoring Reports

Compare Data

Compare data from different time periods, platforms, and ad formats to identify areas of excellent performance and areas that need improvement.

Pay Attention to Trends

Observe the trends in data changes to predict future development trends, providing a basis for adjusting advertising strategies.

Deep Dive

For data that performs poorly, delve deeper into the underlying reasons, such as whether the advertising content, target audience, and placement platform are appropriate.

How to Use Advertising Monitoring Data to Optimize Advertising Strategies

Adjust Advertising Content

Based on user feedback and data analysis, optimize advertising copy, images, videos, and other elements to improve the attractiveness and conversion rate of advertisements.

Precisely Target the Audience

Understand the interests, needs, and behavioral habits of the target audience through data analysis to formulate more precise advertising placement strategies.

Optimize Placement Platforms and Timing

Choose more suitable advertisingplatforms and time slots based on data performance to increase the exposure and click-through rate of advertisements.

Control Advertising Budget

Allocate the advertising budget reasonably according to ROI and advertising effects to ensure the maximization of the input-output ratio.

Advertising monitoring reports are not only a set of data reports but also a valuable marketing guide. By deeply analyzing advertising monitoring data, we can better understand the performance of advertising activities, identify optimization space, and enhance advertising effectiveness.

Measure

Measure

Categories
Topics

Leveraging China’s Mobile-First Advantage: Strategies for Foreign Companies to Succeed in Localized Marketing

In the rapidly evolving digital landscape of China, a mobile-first approach is not just an option but a necessity for foreign companies aiming to capture the market’s immense potential. With over 900 million internet users, of which a vast majority access the web through mobile devices, understanding and leveraging China’s mobile-first environment is crucial for effective localized marketing. This article explores the strategies foreign companies can adopt to navigate the Chinese market successfully by harnessing the power of mobile technology.

Understanding the Mobile-First Ecosystem in China

  1. Mobile Usage Statistics and Trends

China is one of the most mobile-centric countries in the world. The statistics speak volumes about the importance of mobile in China:

  • High Mobile Penetration: Over 99% of internet users in China access the web via mobile devices.

  • Mobile Payments Dominance: Mobile payment platforms like Alipay and WeChat Pay dominate the market, making cashless transactions a norm.

  • App Usage: Chinese users spend a significant amount of time on mobile apps, especially super-apps like WeChat, which combine multiple services into one platform.

  1. Key Mobile Platforms

Several key mobile platforms dominate the Chinese digital ecosystem:

  • WeChat: A super-app that combines messaging, social media, mobile payment, e-commerce, and more. It’s essential for both personal and business use.

  • Alipay: Initially a mobile payment platform, Alipay has evolved into a lifestyle app offering a wide range of services.

  • Douyin (TikTok): The Chinese version of TikTok, popular for short-form video content and live streaming.

  • Weibo: A microblogging platform similar to Twitter, used widely for sharing updates, news, and marketing.

  • Xiaohongshu (Little Red Book): A social commerce platform known for user-generated content, reviews, and e-commerce, especially in the beauty and fashion sectors.

Strategies for Leveraging the Mobile-First Advantage

  1. Mobile-Optimized Website and App Development

To succeed in China, foreign companies must ensure their websites and apps are optimized for mobile use:

  • Responsive Design: Ensure websites are mobile-responsive, providing a seamless experience across all devices.

  • Localization: Adapt the website and app content to Chinese language and culture. This includes translation and cultural customization.

  • Speed and Performance: Optimize website and app loading speeds. Chinese users expect fast and efficient digital experiences.

  • Integration with Local Services: Integrate with local mobile payment options like Alipay and WeChat Pay to facilitate smooth transactions.

  1. Leveraging Super-Apps

Super-apps like WeChat and Alipay offer a one-stop solution for a wide range of services. Foreign companies can leverage these platforms to enhance their reach and engagement:

  • WeChat Official Accounts: Create an official WeChat account to interact with users, share content, and offer customer service.

  • Mini Programs: Develop WeChat mini programs – lightweight apps within WeChat – to provide additional services without requiring users to download a separate app.

  • WeChat Pay and Alipay Integration: Facilitate transactions by integrating WeChat Pay and Alipay, making it easy for users to make purchases directly within the app.

  1. Social Media and Content Marketing

Social media platforms are pivotal for reaching and engaging Chinese consumers. Tailoring content to the preferences and behaviors of Chinese users is crucial:

  • Localized Content: Create content that resonates with local culture and trends. Utilize Chinese festivals, pop culture references, and local events to engage users.

  • KOL Collaborations: Partner with Key Opinion Leaders (KOLs) to leverage their influence and reach. KOL endorsements can significantly boost brand credibility and visibility.

  • User-Generated Content: Encourage users to create and share content related to your brand. Platforms like Xiaohongshu thrive on authentic user reviews and recommendations.

  • Interactive Campaigns: Use interactive content such as live streaming, polls, and challenges to engage users. Douyin and Weibo are excellent platforms for such campaigns.

  1. Mobile Advertising

Mobile advertising is a powerful tool to reach a broad audience in China. Adapting your advertising strategy to fit the mobile-first landscape can enhance effectiveness:

  • In-App Advertising: Utilize in-app advertisements on popular platforms like WeChat, Douyin, and Weibo. These ads can be highly targeted based on user data.

  • Programmatic Advertising: Leverage programmatic advertising to reach specific audiences through automated, real-time bidding processes.

  • Video Ads: Short video ads are particularly effective on platforms like Douyin. Create engaging and visually appealing video content to capture attention.

  1. E-commerce Integration

E-commerce is a significant part of the Chinese digital ecosystem, with platforms like Tmall, JD.com, and Pinduoduo leading the market. Integrating your mobile strategy with these e-commerce platforms is essential:

  • Tmall and JD.com Stores: Set up official stores on major e-commerce platforms to reach a large audience. These platforms offer robust infrastructure and logistics support.

  • Social Commerce: Utilize social commerce features on platforms like Xiaohongshu, where users can directly purchase products recommended by influencers.

  • Live Streaming Commerce: Engage in live streaming commerce on platforms like Taobao Live, where influencers demonstrate and sell products in real-time.

  1. Data-Driven Decision Making

Leveraging data analytics is crucial for optimizing mobile marketing strategies. Utilize data to understand user behavior, preferences, and trends:

  • User Insights: Analyze data from mobile interactions to gain insights into user preferences and behavior. This can inform content creation, product development, and marketing strategies.

  • Personalization: Use data to personalize marketing messages and offers. Tailored content and promotions can significantly enhance user engagement and conversion rates.

  • Performance Metrics: Track key performance metrics such as engagement rates, conversion rates, and return on investment (ROI) to assess the effectiveness of your mobile marketing efforts.

Challenges and Considerations

While the opportunities are immense, foreign companies must also navigate several challenges in the Chinese market:

  1. Regulatory Environment

China has strict regulations regarding internet content and data privacy. Companies must ensure compliance with local laws, including content censorship and data protection regulations.

  1. Competition

The Chinese market is highly competitive, with numerous local and international players vying for consumer attention. Differentiating your brand and offering unique value propositions is essential.

  1. Cultural Differences

Understanding and respecting cultural differences is crucial for success. This includes adapting marketing messages to local customs, preferences, and sensitivities.

  1. Technology and Infrastructure

Investing in the right technology and infrastructure is essential for delivering a seamless mobile experience. This includes mobile app development, payment integration, and customer support.

Case Studies: Success Stories

  1. Starbucks

Starbucks has successfully localized its mobile strategy in China by leveraging WeChat. The company launched a social gifting feature on WeChat, allowing users to send digital gift cards to friends. This initiative capitalized on the social nature of WeChat and integrated seamlessly with the platform’s mobile payment system. Additionally, Starbucks uses WeChat mini programs to offer personalized promotions and enhance customer engagement.

  1. Nike

Nike has effectively utilized Douyin for its mobile marketing strategy. The brand launched interactive challenges and campaigns on the platform, encouraging users to create and share content related to fitness and sports. This approach not only increased brand visibility but also fostered a sense of community among users. Nike’s use of short-form video content and influencer partnerships on Douyin has been particularly successful in engaging younger audiences.

  1. Burberry

Burberry has embraced WeChat’s full potential by creating an immersive brand experience. The luxury brand uses WeChat mini programs to offer personalized shopping experiences, virtual try-ons, and exclusive content. Burberry’s integration with WeChat Pay ensures a seamless shopping process, while its use of interactive content and social features on WeChat enhances customer engagement and loyalty.

Conclusion

The mobile-first landscape in China offers foreign companies unparalleled opportunities to connect with a vast and digitally savvy consumer base. By adopting a mobile-optimized approach, leveraging key platforms, creating localized and engaging content, and utilizing data-driven strategies, foreign companies can effectively navigate the Chinese market and achieve marketing success.

Understanding the unique dynamics of China’s mobile ecosystem, investing in the right technology and infrastructure, and staying attuned to local regulations and cultural nuances are crucial for sustained success. As the digital landscape continues to evolve, foreign companies that adapt and innovate in their mobile marketing strategies will be well-positioned to thrive in the competitive and lucrative Chinese market.

Categories
Topics

Leveraging Local Demand-Side Platform (DSP) Providers for Business Expansion in China

Expanding a business into China, one of the world’s largest and most dynamic markets, presents a multitude of opportunities and challenges. To succeed in this competitive landscape, it is crucial to understand the digital advertising ecosystem, particularly the role of local Demand-Side Platform (DSP) providers. This article delves into the strategies and best practices for leveraging Chinese DSP providers to effectively penetrate and thrive in the Chinese market.

Selecting the Right DSP Provider

Choosing the right DSP provider is a critical step in your digital marketing strategy in China. Here are key factors to consider:

1. Integration with Local Platforms

Ensure the DSP provider has strong integration capabilities with major Chinese platforms such as WeChat, Weibo, Douyin (TikTok), and popular e-commerce sites. This will enable comprehensive reach and effective targeting across various consumer touchpoints.

2. Data and Analytics

Access to high-quality data is essential for effective ad targeting and campaign optimization. Evaluate the DSP provider’s data sources, analytics capabilities, and the depth of consumer insights they can offer.

3. Compliance and Regulation

Navigating the regulatory landscape in China can be complex. Partnering with a DSP provider that is well-versed in local regulations and has a good relationship with regulatory bodies can help ensure compliance and mitigate risks.

4. Customization and Flexibility

Each business has unique advertising needs. Look for DSP providers that offer customizable solutions and flexible campaign management options to meet your specific requirements.

Best Practices for Leveraging Chinese DSP Providers

Once you have selected a suitable DSP provider, implementing best practices will maximize the effectiveness of your digital advertising campaigns.

1. Localized Content

Chinese consumers respond better to content that resonates with their cultural values and preferences. Ensure that your ad creatives, messaging, and overall campaign strategy are localized to reflect the tastes and behaviors of the Chinese audience.

2. Mobile-First Approach

China is a mobile-centric market, with the majority of internet users accessing content via mobile devices. Design your campaigns with a mobile-first approach, optimizing ad formats and user experiences for mobile consumption.

3. Utilize Advanced Targeting

Leverage the advanced targeting capabilities offered by local DSP providers. These can include geographic targeting, demographic targeting, interest-based targeting, and retargeting to reach the most relevant audiences.

4. Optimize for E-Commerce Platforms

Given the dominance of e-commerce in China, integrating your advertising efforts with major e-commerce platforms like Alibaba’s Tmall and JD.com can drive better conversion rates. Utilize DSP features that allow you to target users based on their shopping behavior and preferences.

5. Monitor and Adapt in Real-Time

The Chinese market is highly dynamic, with consumer trends and behaviors changing rapidly. Use the real-time analytics and reporting features provided by your DSP to monitor campaign performance and make data-driven adjustments on the fly.

6. Engage with Influencers and KOLs

Key Opinion Leaders (KOLs) and influencers play a significant role in shaping consumer opinions in China. Collaborate with relevant KOLs to amplify your brand message and increase campaign reach and engagement.

Case Study: Successful DSP Utilization in China

To illustrate the effectiveness of leveraging local DSP providers, let’s consider the case of a global fashion brand entering the Chinese market.

Objective: Establish a strong brand presence and drive sales through digital channels.

Strategy:

  1. DSP Selection: The brand partnered with YOYI, known for its robust data analytics and strong integration with major social and e-commerce platforms.

  2. Localized Campaign: Created ad creatives tailored to Chinese cultural themes and local fashion trends.

  3. Mobile-First: Designed mobile-friendly ad formats to ensure a seamless user experience on smartphones.

  4. Advanced Targeting: Utilized iPinYou’s targeting capabilities to reach fashion-conscious consumers based on demographics, interests, and past purchase behavior.

  5. E-Commerce Integration: Integrated ads with Tmall and JD.com, directing traffic to their flagship stores on these platforms.

  6. Influencer Collaboration: Partnered with popular fashion influencers to promote the brand through social media campaigns and live-streaming events.

Results:

  • Increased Brand Awareness: The campaign achieved a significant increase in brand visibility and recognition among the target audience.

  • Higher Engagement: Mobile-optimized ads and influencer partnerships drove high levels of engagement and interaction.

  • Improved Sales: Integration with e-commerce platforms resulted in a substantial boost in online sales, with a notable increase in conversion rates.

Conclusion

Expanding into the Chinese market requires a nuanced approach to digital advertising. By leveraging local DSP providers, businesses can effectively navigate the unique landscape, capitalize on advanced targeting capabilities, and ensure compliance with local regulations. Through strategic selection and implementation of DSP services, coupled with best practices such as localized content, a mobile-first approach, and influencer collaborations, businesses can successfully establish and grow their presence in China’s vibrant digital ecosystem.

Categories
Topics

The Role of Key Opinion Leaders in Chinese Marketing

In the ever-evolving landscape of digital marketing, China presents a unique environment where traditional advertising methods often take a backseat to the influence of Key Opinion Leaders (KOLs). KOLs, who are highly influential individuals with significant followings on social media platforms, play a crucial role in shaping consumer behavior and driving marketing success in China. This article delves into the significance of KOLs in Chinese marketing, their influence on consumer behavior, strategies for effective KOL collaborations, and the future of KOL marketing.

Understanding Key Opinion Leaders (KOLs)

Key Opinion Leaders, commonly known as KOLs, are individuals who have established credibility in a specific industry or field and possess a substantial online following. They can be celebrities, bloggers, industry experts, or even ordinary people who have gained influence through their expertise, charisma, or engaging content. In China, KOLs are particularly powerful due to the high trust and loyalty that followers place in them.

  1. Platforms for KOLs

Several social media platforms in China serve as the primary channels for KOLs to engage with their followers:

  • Weibo: Often compared to Twitter, Weibo is a microblogging platform where KOLs share updates, opinions, and promotional content. It’s a popular platform for celebrities and public figures.

  • WeChat: As a super-app that combines messaging, social media, and payment services, WeChat is a versatile platform for KOLs. They use WeChat Official Accounts and mini-programs to engage with their audience.

  • Douyin (TikTok): Known for short-form videos, Douyin is an ideal platform for KOLs to create engaging and viral content. It’s particularly popular among younger audiences.

  • Xiaohongshu (Little Red Book): Combining social media and e-commerce, Xiaohongshu is popular among young consumers, especially for beauty, fashion, and lifestyle products. KOLs on Xiaohongshu often influence purchasing decisions through detailed product reviews and recommendations.

  • Bilibili: Known for its focus on anime, comics, and gaming, Bilibili is a video-sharing platform where KOLs share content related to entertainment and pop culture.

The Influence of KOLs on Consumer Behavior

KOLs wield significant influence over consumer behavior in China. Their ability to shape opinions, drive trends, and inspire purchases stems from several key factors:

  1. Trust and Credibility

Chinese consumers place a high level of trust in KOLs, often viewing them as more credible and relatable than traditional celebrities or brand advertisements. This trust is built on the perceived authenticity and expertise of the KOLs, who provide honest reviews and recommendations.

  1. Personal Connection

KOLs often establish a personal connection with their followers through regular interactions and engaging content. This relationship creates a sense of community and loyalty, making followers more receptive to the KOLs’ recommendations.

  1. Trendsetting

KOLs are trendsetters who influence fashion, beauty, technology, and lifestyle trends. Their endorsements can propel products to instant popularity and drive significant sales. For example, a beauty product recommended by a popular beauty influencer on Xiaohongshu can quickly sell out due to the influencer’s authority in the beauty community.

  1. Social Proof

The concept of social proof plays a crucial role in KOL marketing. When followers see their trusted KOL using or endorsing a product, they are more likely to believe in its quality and effectiveness, leading to increased interest and purchases.

Strategies for Effective KOL Collaborations

To harness the power of KOLs effectively, brands must adopt strategic approaches to collaboration. Here are key strategies for successful KOL partnerships:

  1. Identifying the Right KOLs

Choosing the right KOLs is critical for the success of any campaign. Brands should consider several factors when selecting KOLs:

  • Relevance: The KOL’s niche and audience should align with the brand’s target market and product category. For instance, a skincare brand should collaborate with beauty influencers rather than gaming influencers.

  • Engagement: A KOL’s engagement rate is more important than their follower count. High engagement indicates an active and interested audience, which is more likely to respond positively to promotions.

  • Authenticity: Authenticity is key to building trust. Brands should look for KOLs who genuinely use and endorse products, rather than those who promote products indiscriminately for money.

  1. Building Long-Term Relationships

Long-term collaborations are more effective than one-off promotions. Building a long-term relationship with a KOL allows for deeper integration of the brand into the KOL’s content, creating more authentic and convincing endorsements.

  • Consistency: Regular mentions and features of the brand in the KOL’s content help build familiarity and trust among followers.

  • Exclusive Partnerships: Consider exclusive partnerships where the KOL becomes a brand ambassador. This exclusivity can enhance credibility and brand loyalty.

  1. Co-Creating Content

Co-creating content with KOLs ensures that the promotional material is authentic and aligns with the KOL’s style. This approach can include:

  • Product Reviews: Detailed reviews and demonstrations of the product by the KOL.

  • Behind-the-Scenes Content: Sharing the process of product creation or the KOL’s experience with the brand.

  • Interactive Campaigns: Engaging followers through challenges, live streams, or Q&A sessions with the KOL.

  1. Leveraging Multiple Platforms

Using multiple platforms maximizes reach and engagement. Each platform has its strengths, and a multi-platform strategy ensures comprehensive coverage:

  • Weibo for Wide Reach: Use Weibo for broad exposure and trendsetting.

  • WeChat for Deep Engagement: Use WeChat for more personalized and in-depth interactions.

  • Douyin for Viral Content: Use Douyin for creating engaging and viral short-form videos.

  • Xiaohongshu for Detailed Reviews: Use Xiaohongshu for detailed product reviews and recommendations.

  1. Measuring and Optimizing Performance

Measuring the performance of KOL campaigns is crucial for understanding their effectiveness and optimizing future strategies. Key metrics to track include:

  • Engagement Rates: Likes, comments, shares, and overall interaction with the content.

  • Conversion Rates: The number of followers who make a purchase or take a desired action after seeing the KOL’s content.

  • Brand Sentiment: The overall perception and sentiment towards the brand in the comments and discussions.

  • ROI: The return on investment from the KOL campaign, considering both direct sales and long-term brand equity.

The Future of KOL Marketing in China

As digital marketing continues to evolve, the role of KOLs in Chinese marketing is expected to grow and transform. Here are some emerging trends and future directions:

  1. Micro-KOLs and Nano-KOLs

While mega-KOLs with millions of followers are still influential, there is a growing trend towards micro-KOLs and nano-KOLs. These smaller influencers, with more niche and engaged followings, offer higher engagement rates and more targeted reach. Brands are increasingly collaborating with multiple micro-KOLs to tap into specific communities and build authenticity.

  1. Live Streaming E-Commerce

Live streaming has become a significant trend in Chinese e-commerce, with KOLs hosting live sales events where they showcase and sell products in real-time. Platforms like Taobao Live and Douyin Live have popularized this format, which combines entertainment and shopping. Live streaming allows for real-time interaction, instant feedback, and impulse purchases, making it a powerful tool for driving sales.

  1. AI and Data Analytics

Advancements in AI and data analytics are enabling more precise identification of suitable KOLs and more effective campaign optimization. Brands can leverage AI tools to analyze vast amounts of data, predict trends, and measure the impact of KOL campaigns more accurately. This data-driven approach enhances the efficiency and effectiveness of KOL marketing.

  1. Cross-Border Collaborations

With the globalization of e-commerce, cross-border collaborations are becoming more common. International brands are partnering with Chinese KOLs to enter the Chinese market, while Chinese brands are leveraging foreign influencers to expand globally. These cross-border partnerships require careful cultural and market understanding but offer significant growth opportunities.

  1. Authenticity and Transparency

As consumers become more discerning, authenticity and transparency will continue to be paramount. Brands and KOLs must maintain genuine and honest communication to build and retain trust. This includes clear disclosure of sponsored content and a focus on long-term relationships over short-term gains.

Conclusion

Key Opinion Leaders are an integral part of the marketing ecosystem in China. Their ability to influence consumer behavior, drive trends, and create authentic connections makes them invaluable for brands looking to succeed in the Chinese market. By understanding the dynamics of KOL influence, adopting strategic collaboration approaches, and staying attuned to emerging trends, brands can harness the power of KOLs to achieve marketing success in China. As the digital landscape continues to evolve, the role of KOLs will only grow, offering new opportunities for brands to connect with consumers in meaningful and impactful ways.

Categories
Topics

How to Sell Online in China

How to Sell Online in China: A Comprehensive Guide如何在中国进行网上销售：综合指南

Selling online in China presents a vast opportunity for businesses around the globe, given the country’s massive and digitally savvy consumer base. With over 900 million internet users and a rapidly growing e-commerce market, China has become a powerhouse for online retail. However, navigating this complex market requires a deep understanding of local platforms, consumer behavior, regulatory environment, and marketing strategies. This guide will provide a comprehensive overview of how to successfully sell online in China.

Understanding the Chinese E-commerce Landscape

Before diving into the strategies for selling online, it’s crucial to understand the Chinese e-commerce landscape, which is dominated by several major platforms and characterized by unique consumer behaviors and expectations.

1. Major E-commerce Platforms

China’s e-commerce market is dominated by a few key players, each offering distinct advantages and catering to different segments of the market:

  • Alibaba’s Tmall: Tmall is the largest B2C platform in China, known for its wide range of products from international and local brands. It offers businesses a trusted platform with a large user base but requires rigorous approval processes and significant investment.

  • JD.com: JD.com is a major B2C e-commerce platform known for its robust logistics network and focus on authentic, high-quality products. JD.com also offers a marketplace for third-party sellers.

  • Pinduoduo: Known for its group-buying model, Pinduoduo focuses on lower-tier cities and price-sensitive consumers. It’s a rapidly growing platform that offers unique opportunities for brands willing to engage in price competition and social commerce.

  • Xiaohongshu (Little Red Book): Combining social media and e-commerce, Xiaohongshu is popular among younger consumers, particularly for beauty, fashion, and lifestyle products. It’s an ideal platform for influencer marketing and content-driven sales.

  • WeChat: As a super-app integrating social networking, messaging, and e-commerce, WeChat allows businesses to create mini-programs and stores within the app, offering a seamless shopping experience.

2. Consumer Behavior

Understanding Chinese consumer behavior is crucial for success in the market. Key characteristics include:

  • Mobile Dominance: The majority of online shopping in China is conducted via mobile devices. Ensuring a mobile-friendly experience is essential.

  • Social Commerce: Social media and e-commerce are closely integrated, with platforms like WeChat and Xiaohongshu driving sales through social interactions and content sharing.

  • Preference for Local Brands: While international brands are popular, there’s a strong preference for local brands, especially in lower-tier cities.

  • Trust and Authenticity: Chinese consumers highly value trust and authenticity. Ensuring product quality and authenticity is vital for building brand loyalty.

Steps to Successfully Sell Online in China

  1. Market Research and Entry Strategy

Before entering the Chinese market, conduct thorough market research to understand consumer preferences, competitive landscape, and potential demand for your products.

  • Consumer Insights: Analyze consumer preferences, trends, and purchasing behavior in your product category. Identify key demographics and target segments.

  • Competitive Analysis: Study your competitors, both local and international. Understand their strengths, weaknesses, pricing strategies, and marketing tactics.

  • Market Entry Strategy: Decide on the most suitable market entry strategy. Options include setting up a Wholly Foreign-Owned Enterprise (WFOE), partnering with local distributors, or leveraging cross-border e-commerce platforms.

  1. Choosing the Right E-commerce Platform

Selecting the right e-commerce platform is critical for reaching your target audience and achieving your sales goals. Consider the following factors when choosing a platform:

  • Target Audience: Match your target audience with the platform’s user demographics. For instance, Tmall and JD.com are ideal for reaching urban, high-income consumers, while Pinduoduo is suitable for price-sensitive, lower-tier city residents.

  • Platform Requirements: Understand the platform’s entry requirements, fees, and operational processes. Some platforms have strict vetting processes and require significant upfront investment.

  • Logistics and Fulfillment: Consider the platform’s logistics capabilities. JD.com, for example, offers robust logistics support, which can be a significant advantage.

  1. Setting Up Your Online Store

Setting up your online store involves several key steps, from registering your business to designing your store and listing products.

  • Business Registration: Ensure your business is properly registered in China or through a cross-border e-commerce solution. This includes obtaining necessary licenses and permits.

  • Store Design: Invest in professional store design that reflects your brand identity and appeals to Chinese consumers. A visually appealing and user-friendly store can significantly impact your sales.

  • Product Listings: Create detailed and compelling product listings. Include high-quality images, accurate descriptions, and specifications. Highlight key features, benefits, and use cases.

  • Pricing Strategy: Develop a competitive pricing strategy that considers local market conditions, competitor pricing, and consumer purchasing power.

  1. Marketing and Promotion

Effective marketing and promotion are crucial for driving traffic and sales to your online store. Leverage a mix of digital marketing strategies to reach and engage your target audience.

  • Search Engine Optimization (SEO): Optimize your store and product listings for Chinese search engines like Baidu. Use relevant keywords, meta tags, and high-quality content to improve your search ranking.

  • Pay-Per-Click (PPC) Advertising: Invest in PPC advertising on platforms like Baidu, Alibaba, and WeChat. Targeted ads can drive immediate traffic and conversions.

  • Social Media Marketing: Engage with consumers on popular social media platforms like WeChat, Weibo, and Xiaohongshu. Create engaging content, run contests, and collaborate with influencers to build brand awareness.

  • Influencer Marketing: Partner with Key Opinion Leaders (KOLs) who have a strong following in your target market. KOL endorsements can significantly boost your credibility and reach.

  • Content Marketing: Create valuable content that educates, entertains, and informs your audience. This can include blog posts, videos, tutorials, and user-generated content.

  1. Customer Experience and Service

Providing an exceptional customer experience is crucial for building trust and loyalty among Chinese consumers. Focus on delivering top-notch service at every touchpoint.

  • Localization: Localize your website, product descriptions, and customer support to cater to Chinese consumers. This includes offering support in Mandarin and adapting your messaging to local cultural norms.

  • Customer Support: Offer prompt and efficient customer support through multiple channels, including live chat, email, and phone. Address customer inquiries and issues promptly to build trust and satisfaction.

  • After-Sales Service: Implement a robust after-sales service strategy, including easy returns, refunds, and warranty services. A positive after-sales experience can enhance customer loyalty and encourage repeat purchases.

  1. Logistics and Fulfillment

Efficient logistics and fulfillment are critical for ensuring timely delivery and customer satisfaction. Consider partnering with reliable logistics providers to streamline your supply chain.

  • Inventory Management: Implement effective inventory management practices to ensure product availability and avoid stockouts. Use data analytics to forecast demand and manage inventory levels.

  • Warehousing: Choose strategic warehouse locations to minimize delivery times and costs. Some e-commerce platforms offer warehousing and fulfillment services, which can simplify logistics.

  • Delivery Options: Offer multiple delivery options, including standard and express shipping. Provide tracking information to keep customers informed about their order status.

  1. Regulatory Compliance

Ensuring compliance with Chinese regulations is essential for operating legally and avoiding potential penalties. Stay informed about the latest regulatory changes and requirements.

  • Product Certification: Ensure your products meet Chinese safety and quality standards. Obtain necessary certifications and approvals for regulated products.

  • Data Privacy: Comply with China’s data privacy laws, including the Personal Information Protection Law (PIPL). Implement robust data protection measures to safeguard customer information.

  • Advertising Regulations: Adhere to advertising regulations and guidelines. Avoid false advertising, exaggerated claims, and misleading information.

  1. Performance Monitoring and Optimization

Continuously monitor your store’s performance and optimize your strategies based on data insights. Use analytics tools to track key metrics and identify areas for improvement.

  • Sales and Traffic Analytics: Track sales, traffic, conversion rates, and customer behavior using analytics tools. Identify top-performing products, traffic sources, and customer segments.

  • Customer Feedback: Collect and analyze customer feedback to understand their satisfaction and identify improvement areas. Use surveys, reviews, and direct feedback to gather insights.

  • A/B Testing: Conduct A/B testing on various elements of your store, such as product listings, pricing, and marketing campaigns. Use the results to optimize your strategies and improve performance.

Conclusion

Selling online in China offers immense opportunities, but it requires a deep understanding of the local market, consumer behavior, and regulatory environment. By conducting thorough market research, choosing the right e-commerce platform, setting up a well-designed store, implementing effective marketing and promotion strategies, providing exceptional customer service, ensuring efficient logistics, complying with regulations, and continuously monitoring and optimizing performance, businesses can successfully tap into the lucrative Chinese e-commerce market.

Navigating the complexities of the Chinese market may seem daunting, but with the right approach and strategies, businesses can unlock significant growth and achieve long-term success. By leveraging the insights and best practices outlined in this guide, you can position your business for success in China’s dynamic and rapidly evolving e-commerce landscape.

Categories
Topics

Three ways to harness behavioral data

In the digital age, the vast amount of data generated by consumers offers unprecedented opportunities for businesses to understand their audience better and tailor their strategies accordingly. Behavioral data, which refers to the information generated by users’ interactions with a business’s digital properties, such as websites, apps, and social media platforms, is particularly valuable. By analyzing this data, businesses can gain deep insights into consumer behavior, preferences, and trends. This article explores three effective strategies for harnessing behavioral data to enhance business outcomes: personalized marketing, product development, and customer journey optimization.

1. Personalized Marketing

Personalized marketing involves tailoring marketing efforts to individual consumers based on their behavior, preferences, and interactions with a brand. By leveraging behavioral data, businesses can create more relevant and engaging marketing campaigns that resonate with their target audience.

a. Understanding Consumer Preferences

Behavioral data provides detailed insights into what consumers like, dislike, and are interested in. By analyzing data such as browsing history, past purchases, and interaction patterns, businesses can create detailed customer profiles. These profiles help marketers understand individual preferences and predict future behavior.

For example, an e-commerce platform can analyze a user’s browsing and purchase history to recommend products that align with their interests. If a user frequently browses outdoor gear and has purchased camping equipment in the past, the platform can personalize marketing content to showcase new arrivals in outdoor gear, exclusive deals on camping equipment, and related accessories. This level of personalization increases the likelihood of conversion by presenting products that the user is genuinely interested in.

b. Segmentation and Targeting

Segmentation involves dividing a broader audience into smaller, more homogenous groups based on specific criteria. Behavioral data enables more precise segmentation by considering factors such as purchase frequency, average order value, and engagement level.

With these segments, businesses can tailor their marketing messages to address the unique needs and preferences of each group. For instance, a fashion retailer can segment its audience into categories like frequent buyers, occasional shoppers, and inactive users. For frequent buyers, the retailer can send personalized emails with early access to sales and exclusive offers. Occasional shoppers might receive reminders about items left in their cart or personalized discount codes to encourage purchases. Inactive users could be targeted with re-engagement campaigns highlighting new arrivals or special promotions.

c. Dynamic Content and Real-Time Personalization

Dynamic content refers to web or email content that changes based on user behavior and preferences. Real-time personalization takes this a step further by adjusting content instantaneously based on the user’s current interactions.

For instance, a news website can use behavioral data to show personalized article recommendations on its homepage. If a user frequently reads articles about technology and sports, the website can prioritize showing the latest tech and sports news when the user visits. Similarly, an online streaming service like Netflix uses real-time personalization to recommend shows and movies based on the user’s viewing history and ratings. This approach keeps users engaged and encourages them to spend more time on the platform.

2. Product Development

Behavioral data can significantly impact product development by providing insights into how consumers interact with existing products and what features they value the most. By analyzing this data, businesses can make informed decisions about product improvements, new features, and entirely new product lines.

a. Identifying Popular Features and Pain Points

Understanding which features are most popular and which cause frustration can guide product development efforts. Behavioral data such as feature usage frequency, time spent on specific features, and user feedback can reveal what customers find valuable and what needs improvement.

For example, a software company can track how users interact with different features of their application. If data shows that a significant portion of users frequently use a particular feature but also encounter issues with it, the company can prioritize fixing these issues in the next update. Conversely, if a feature is rarely used, the company might consider removing it or replacing it with something more valuable to users.

b. Testing and Iteration

Behavioral data allows businesses to adopt a data-driven approach to testing and iteration. By analyzing how users respond to new features or changes, businesses can make informed decisions about product development.

A/B testing is a common method where two versions of a product feature are tested against each other to see which performs better. For example, an e-commerce site might test two different checkout processes to see which one leads to higher conversion rates. Behavioral data such as completion rates, time spent on each step, and user drop-off points can provide clear insights into which version is more effective.

c. Anticipating Market Trends

Behavioral data can help businesses stay ahead of market trends by identifying emerging consumer preferences and behaviors. By monitoring how users interact with products and what they search for, businesses can anticipate shifts in demand and adapt their product offerings accordingly.

For instance, if a fitness app notices an increase in searches and engagement related to home workout routines, it can respond by developing new content, features, or partnerships focused on home fitness. This proactive approach allows businesses to capitalize on trends and meet consumer needs before competitors do.

3. Customer Journey Optimization

Optimizing the customer journey involves enhancing every touchpoint a customer has with a business to create a seamless and satisfying experience. Behavioral data plays a crucial role in understanding and improving the customer journey.

a. Mapping the Customer Journey

Behavioral data provides a detailed view of how customers move through the various stages of the buying process. By mapping the customer journey, businesses can identify key touchpoints, pain points, and opportunities for improvement.

For example, an online retailer can track a user’s journey from the initial visit to the website, through product browsing, adding items to the cart, and completing the purchase. By analyzing this data, the retailer can identify where users are dropping off and why. If a significant number of users abandon their cart at the payment stage, the retailer might investigate potential issues with the payment process, such as technical glitches or a lack of preferred payment options.

b. Enhancing User Experience

Improving the user experience (UX) is essential for retaining customers and encouraging repeat business. Behavioral data can reveal areas where the UX can be enhanced to make the journey more enjoyable and efficient.

For instance, a travel booking website can use behavioral data to streamline the booking process. If data shows that users frequently get stuck or abandon the process when selecting flight options, the website can simplify this step by offering clearer options, filters, and assistance. Improving UX based on actual user behavior ensures that changes directly address user needs and pain points.

c. Personalized Customer Support

Behavioral data can also enhance customer support by enabling personalized assistance. By understanding a customer’s history and interactions with the brand, support teams can provide more relevant and efficient help.

For example, if a customer contacts support with an issue, the support agent can access the customer’s previous interactions, purchase history, and behavior on the website. This information allows the agent to offer tailored solutions and recommendations, improving the overall support experience. Additionally, proactive support measures, such as sending reminders for upcoming subscription renewals or offering assistance with frequently encountered issues, can be implemented based on behavioral data.

Conclusion

Harnessing behavioral data is crucial for businesses looking to thrive in the digital age. By leveraging this data for personalized marketing, product development, and customer journey optimization, businesses can create more engaging, relevant, and satisfying experiences for their customers. Personalized marketing enhances relevance and engagement, product development driven by behavioral insights ensures that offerings meet consumer needs, and optimizing the customer journey creates a seamless and enjoyable experience. As technology continues to evolve, the ability to effectively harness and analyze behavioral data will remain a key competitive advantage for businesses across all industries.

Categories
Topics

Top 10 Rules to Launching a Successful Business in China

Expanding a business into China, the world’s second-largest economy, presents immense opportunities and unique challenges. With its vast consumer base, rapid technological advancements, and dynamic market conditions, successfully launching a business in China requires strategic planning, cultural understanding, and adaptability. This article outlines the top 10 rules for launching a successful business in China.

1. Conduct Thorough Market Research

Before entering the Chinese market, it is crucial to conduct comprehensive market research to understand the local landscape, consumer preferences, and competitive environment.

  • Consumer Behavior: Study the purchasing habits, preferences, and pain points of Chinese consumers. China’s consumer base is diverse, with varying needs and expectations across different regions and demographics.

  • Competitive Analysis: Identify key competitors and analyze their strategies, strengths, and weaknesses. Understanding the competitive landscape can help you position your business effectively.

  • Market Trends: Stay updated with the latest market trends and emerging opportunities. China’s market is rapidly evolving, and staying ahead of trends can provide a competitive edge.

2. Understand and Comply with Local Regulations

Navigating China’s regulatory environment can be complex. Ensuring compliance with local laws and regulations is critical to avoid legal issues and establish a reputable business presence.

  • Business Registration: Understand the process and requirements for registering a business in China. This includes choosing the right business structure, such as a Wholly Foreign-Owned Enterprise (WFOE), Joint Venture (JV), or Representative Office.

  • Licensing and Permits: Identify and obtain the necessary licenses and permits for your industry. Different sectors have specific regulatory requirements that must be met.

  • Intellectual Property Protection: Register your trademarks, patents, and copyrights to protect your intellectual property. China has made significant strides in IP protection, but proactive measures are essential.

3. Form Strategic Partnerships

Building strong relationships with local partners can facilitate market entry and growth. Strategic partnerships can provide valuable insights, resources, and networks.

  • Local Distributors and Suppliers: Collaborate with reliable local distributors and suppliers to ensure smooth operations and supply chain management.

  • Industry Associations: Join industry associations and chambers of commerce to connect with key stakeholders and stay informed about industry developments.

  • Government and Regulatory Bodies: Establish positive relationships with government and regulatory bodies. Local authorities can provide support and guidance, especially in navigating regulatory processes.

4. Localize Your Product and Marketing Strategy

Localization is essential to resonate with Chinese consumers and meet their specific needs. This involves adapting your product offerings, marketing strategies, and communication style.

  • Product Adaptation: Modify your products to align with local tastes, preferences, and cultural nuances. This could include adjusting flavors, packaging, or features to suit Chinese consumers.

  • Marketing and Branding: Develop a localized marketing strategy that reflects the cultural values and trends of your target audience. Use local influencers, celebrities, and social media platforms to enhance brand visibility.

  • Language: Ensure all marketing materials, product descriptions, and customer support are available in Mandarin Chinese. Clear and effective communication is vital for building trust and engagement.

5. Leverage Digital Platforms and E-commerce

China is a digital-first market with a high penetration of internet and mobile usage. Leveraging digital platforms and e-commerce can significantly boost your business growth.

  • E-commerce Platforms: Utilize popular e-commerce platforms like Alibaba’s Tmall, JD.com, and Pinduoduo to reach a wide audience and drive sales.

  • Social Media: Engage with consumers on major social media platforms such as WeChat, Weibo, Douyin (TikTok), and Little Red Book (Xiaohongshu). Develop a strong social media presence to build brand awareness and interact with your audience.

  • Digital Marketing: Invest in digital marketing strategies, including search engine optimization (SEO), pay-per-click (PPC) advertising, and influencer collaborations to enhance online visibility and attract potential customers.

6. Focus on Customer Experience and Service

Providing exceptional customer experience and service is crucial for building a loyal customer base in China. Chinese consumers have high expectations for quality and service.

  • Customer Support: Offer prompt and effective customer support through various channels, including phone, email, and social media. Providing assistance in Mandarin Chinese is essential.

  • After-Sales Service: Implement a robust after-sales service strategy, including warranty, returns, and repairs. Positive after-sales experiences can enhance customer satisfaction and loyalty.

  • Feedback and Reviews: Encourage and monitor customer feedback and reviews. Addressing customer concerns and continuously improving your products and services based on feedback can strengthen your brand reputation.

7. Build a Strong Local Team

Hiring and retaining a skilled local team is essential for navigating the Chinese market and understanding local consumer behavior.

  • Talent Acquisition: Recruit talented professionals with local market knowledge and expertise. Consider hiring local managers who understand the cultural and business landscape.

  • Training and Development: Invest in training and development programs to enhance the skills and capabilities of your team. Providing opportunities for career growth can improve employee retention and performance.

  • Company Culture: Foster a positive company culture that values diversity, collaboration, and innovation. Building a strong organizational culture can attract and retain top talent.

8. Adapt to Cultural Differences

Understanding and respecting cultural differences is vital for successful business operations in China. Cultural sensitivity can help build trust and rapport with local stakeholders.

  • Business Etiquette: Familiarize yourself with Chinese business etiquette, including greetings, gift-giving, and meeting protocols. Showing respect for local customs can enhance business relationships.

  • Communication Style: Adapt your communication style to align with local norms. In China, indirect communication and maintaining harmony are valued, so being tactful and considerate is important.

  • Festivals and Holidays: Acknowledge and celebrate major Chinese festivals and holidays, such as Chinese New Year and Mid-Autumn Festival. This can foster goodwill and strengthen relationships with employees, partners, and customers.

9. Implement Effective Risk Management

Managing risks effectively is crucial for sustaining business operations and growth in China. Identify potential risks and develop strategies to mitigate them.

  • Regulatory Compliance: Stay updated with changes in regulations and ensure compliance to avoid legal issues and penalties.

  • Economic and Political Risks: Monitor economic and political developments that could impact your business. Develop contingency plans to address potential disruptions.

  • Supply Chain Management: Implement robust supply chain management practices to minimize risks related to logistics, inventory, and supplier reliability.

10. Invest in Innovation and Technology

China is at the forefront of technological innovation, and investing in technology can drive business growth and competitiveness.

  • Research and Development: Invest in research and development (R&D) to innovate and improve your products and services. Collaborate with local research institutions and universities for R&D initiatives.

  • Digital Transformation: Embrace digital transformation by adopting advanced technologies such as artificial intelligence (AI), big data, and the Internet of Things (IoT). These technologies can enhance operational efficiency and customer experience.

  • Sustainability and Corporate Social Responsibility (CSR): Focus on sustainability and CSR initiatives to align with China’s environmental goals and social values. Implementing sustainable practices can enhance your brand image and appeal to socially conscious consumers.

Conclusion

Launching a successful business in China requires strategic planning, cultural understanding, and adaptability. By conducting thorough market research, complying with local regulations, forming strategic partnerships, localizing your product and marketing strategy, leveraging digital platforms, focusing on customer experience, building a strong local team, adapting to cultural differences, implementing effective risk management, and investing in innovation and technology, businesses can navigate the complexities of the Chinese market and achieve long-term success. Embracing these rules and continuously learning and adapting to the dynamic market conditions will pave the way for a prosperous business venture in China.

Categories
Topics

17 Small Business Ideas & Investment Opportunities in China

Key Takeaways

1. Even in the wake of Covid-19 lockdowns years after the start of the pandemic, China represents a massive investment opportunity for international investors looking to diversify their portfolios.

2. Whether you are looking to start your own business or seek investment opportunities in China, there is no shortage of innovation in China.

3. While some sectors in China have taken a battering in recent years, that doesn’t make China “uninvestable”; it means that those without experience on the Chinese market should seek professional help before committing to long-term business decision.

4. These insights come from many years spent in Mainland China, as Horizons has unmatched business and employment expertise in the country. If you are interested in expanding in China, contact us today.

China is an attractive market for some of the world’s largest conglomerates. In the last few years, China has established a niche for itself regarding national and economic issues, making many entrepreneurs and established companies race to the country.

There are over one billion people in China. It has a fast-growing economy that is also rated as the second largest in the world. It is also the largest exporter and importer of goods in the world. Furthermore, the company offers affordable and reliable technology, as well as a highly productive workforce. All of these factors make China a powerful country to do business in. This is why most Fortune 500 companies have a presence in the country.

China has many thriving sectors, including agriculture, manufacturing, oil and gas, automobile, pharmaceutical, and tourism. China is currently promoting certain small business opportunities.

If you are considering opening a business or expanding your business to China, these opportunities may help you generate impressive income while allowing you to enjoy a low profile. Here are some of the most promising business ideas and investment opportunities in China currently.

Please note: This article does not contain investment advice. Horizons is sharing anecdotal insights based on what we have seen generate success in China. If you seek genuine investment advice, please speak to a certified investment professional.

Best Small Business Ideas in China

Rounding out the list of the best small business ideas in China for 2024 are:

1. Automation Control Products

The number one small business in China is a technology company that sells industrial automation control products. Marketing similar products may yield the results that you want. Consider this option if you are looking for a new business opportunity.

2. Supplemental and International Education

Previously, the supplemental education market in China was huge. After-school private tutoring services were one viable option. Another was providing online classes to students and workers. These classes are important in China, which prides itself on having a strong educational system.

It is customary for many students to continue their studies after the end of the traditional school day to gain a competitive edge. Because online classes were convenient and accessible to more people, it was a viable option for many and was an in-demand opportunity for businesses.

However, due to regulation, the supplemental education market has been reduced. While supplemental (“after-school”) education was a popular and lucrative industry, new regulations passed in August 2021 made so-called “edtech”, or online teaching platforms, comply with a specific and strict set of regulations; it also banned any supplemental education targeting pre-school aged children, and set limits on supplemental education for children aged 6-15. Finally, existing “subject training institutions” (teaching English, Math, and other subjects) must also comply with a strict set of regulations, and no new subject training institutions are permitted to form. Naturally, this wiped out many companies large and small by more than 83% nationwide and has made the supplemental education space less attractive as the barrier to entry is much higher.

However, not all hope is lost– a different category of supplemental education called “quality education training courses” are less regulated and (for now) is permitted to form. This category covers subjects like music, art, sports, and other non-core subjects; and these courses are permitted to be taught in English. For those looking to start a supplemental education business and become a private GCSE maths tutor, talk to a professional about “quality education training schools”; but for foreign individuals interested in opening an English training center or something similar, this is no longer possible.

Similarly, international education is an increasingly lucrative market in China. Just as Chinese students are increasingly studying abroad, so too are international students increasingly interested in studying in China, with China now having the third highest number of inbound international students in the world. This provides opportunities for small businesses both in offering educational services, but also associated services such as accommodation. 

 3. Import and Export

Small businesses that involve trading are often successful because they help create additional business opportunities across the globe. Because China is the largest exporter and importer of goods in the world, it is easier to create a profitable importing and exporting business in the country. This has been doubly true since the border situation became more complicated in 2019. Companies in need of goods are seeking trustworthy partners based locally to receive and qualify samples of desired goods, make factory visits, etc.

If you have not yet launched a business and are looking for ideas, this is one to consider.

4. Pharmaceuticals

The pharmaceutical industry in China is massive and highly profitable. Furthermore, in China, businesses often have access to cheap labor and raw materials. However, selling pharmaceuticals in China requires businesses to acquire the proper license.

Forbes China has previously listed a pharmaceutical company in its list of top 10 small businesses in the country, so it might be an industry worth considering if you are willing to go through the regulatory red tape.

5. Health Products

Environmental concerns, more access to health information, and the presence of new diseases and illnesses have made current generations more concerned about their health than previous generations.

Health product businesses may include herbal goods, supplements, and skincare products. In China, there are many small health products businesses. Some successful businesses focus on women and the beauty industry while others appeal to both genders.

6. Ecological Environment Construction

The world has taken notice of more environmental concerns and China has followed suit. It is encouraging businesses that are taking an eco-friendly approach and constructing ecological environments, such as afforestation projects, seeding plants, and garden landscape engineering. More businesses in Shanghai have been focusing on waste in recent years. With Shanghai city’s push for proper garbage sorting and waste disposal, some businesses see an opportunity in the city’s move to be more green.

Companies that provide technological research on ecology are also in demand. 

7. Direct Marketing

Direct marketing is one of the best opportunities for small businesses because it is reliable and has relatively little overhead.

It requires that businesses be able to communicate well and develop key connections with customers to be successful. Some businesses focus on helping international businesses communicate effectively to the Chinese market, while other businesses focus on helping Chinese businesses communicate effectively to international markets. Both business focuses can be lucrative.

8. Internet Access

Not all consumers in China have or can afford to have internet access in their homes or businesses. However, many people still need this access. Operating a small-scale internet business is a simple way to participate in the Chinese economy while not having to invest substantially into it.

9. Food

Food production: When deciding on which business initiative to pursue, it is important to consider needs so that you can opt for a safer option when available. Everyone needs food, but with a population exceeding 1.35 billion, China is in particular need of this resource.

Food (restaurant): Alternatively, many people come to Shanghai to live their dream of opening a restaurant or bar, both local Chinese and foreigners. Shanghai for example has the most coffee shops in the world. The locally-owned F&B sector in China is a powerhouse, and in most cities, the owners form a tight-knit community.

Best Investment Opportunities in China

There are also certain sectors that are prime for investment in China including:

1. Manufacturing of Household Commodities

China is one of the largest producers of household commodities. They are often cheaper than the products produced in other countries, allowing them to be more competitive. Consider starting your own household commodities manufacturing company.

2. Online Stores

China’s access to advanced technologies allows it to be a source of thriving online shops. There are several advantages to investing in this type of business in China, including that you do not have to keep all of the products that are offered in your shop in China.

You do not have to invest in inventory. Instead, you can make agreements with manufacturers in which you list their products on your shop and sell them to your customers for a markup.

3. English-Language Schools

Since English is often the language spoken by business leaders around the world, many Chinese professionals are trying to increase their English-language skills. You can open a school that teaches professionals how to speak English, especially in business settings.

This type of business requires minimal capital investment and you may already have the skills necessary to run a successful business of this nature.

Again, the English-language teaching sector has taken massive hits over the last few years; while we may not see the optimism in English-language schools anymore, someone with a high risk tolerance might make a tactical choice to invest in schools offering “quality education training courses”. 

4. Domestic Shipping Companies

Another investment opportunity is to invest in a haulage business, which transports goods by road or rail. It includes transporting ore, coal, and supplies. Since China is a country with some of the highest volume of goods in the world. In such a massive, diverse country, populated by avid consumers, goods need to move constantly across the country. There is little that is more important in a country of this size than a greased supply chain. This ensures that your investment might continue to pay off even in traditionally uncertain times.

5. Mobile Phones and Accessories Businesses

With its ready access to technology, a productive workforce, and cheap raw materials, China has revolutionized the mobile phone industry. China offers cheaper mobile phone and accessory options in comparison to some of the overpriced goods of this nature elsewhere in the world.

Having this type of business can be a highly profitable business venture when done correctly. The key to success with this type of business is partnering up with businesses outside of China to whom you can supply mobile phones and accessories. Cheap accessories that you may be able to sell include batteries, chargers, battery banks, cases, memory cards, and USB cords.

6. Electronics and Gadgets

China also produces other electronics and gadgets.

Investing in an electronics manufacturing company or factory can allow you to get or make the products more cheaply, which can then be sold abroad at more affordable prices.

7. Jewelry or Diamonds

Gold and silver plated jewelry are popular in China and other parts of the world. China has a vibrant jewelry ecosystem, not just for gold and silver, but also for pearls, jade, and other precious stones.

Connecting with industry insiders and experts in the jewelry industry in China is not so difficult, and could lead to interesting business opportunities.

8. Fashion Accessories

Bags and shoes are some of the most important accessories around the world and the production cost in China is not high.

If someone invested in a fashion accessories business in China, it is reasonable that those goods could be sold in developed and developing countries alike.

Conclusion

China has ample opportunities for small business and investment. Regardless of which investment vehicle you choose, it is important that you launch your business in an efficient and compliant manner.

Horizons can advise you of the regulatory schemes in place and inform you of the guidelines you must meet, whether that means a minimum capital investment or a necessary license to conduct the type of business you are considering in China.

We can also get you a local workforce without the need for you to open a local entity through our China Employer of Record services so that you can have people working on the ground as soon as you are ready to launch your business. Contact us today for a free consultation on your hiring project.

Measure

Measure

Categories
Topics

Guide to Marketing in China: Advice, Strategies, Rules

As the world’s leading trading nation and a GDP of more than $10 trillion, China is an attractive option for business expansion. However, companies cannot simply rely on the marketing strategies that they have implemented in western cultures when launching their brand in China. These marketing campaigns may not resonate with the local Chinese market.

Everything in China is different, including how consumers find the business, the social media channels that are used and rules on how to do business in the country. It is important to understand these differences. Having a strategic partner like Horizons can help you successfully market your product or service to the local Chinese community.

Marketing in China

While you might have a great product, this is not enough to secure success in marketing it to the Chinese market. There are so many products and businesses in China, so it is critical that you are able to make yours stand out.

It is critical that you have a customized China marketing plan and strategy. Having Horizons as part of your team allows you to access our significant resources, including market research and strategic consulting. We can analyze your business and products and develop a customized marketing plan for you.

China E-Commerce Rules

Many companies want to target the expansive Chinese market that has more than 1.3 billion consumers. China represents the largest group of ecommerce shoppers in the world with 30% of the cross-border ecommerce market. The Chinese ecommerce market exceeds 8.8 trillion RMB.

In one encouraged shopping day, more than $25 billion in ecommerce merchandise. Given these attractive figures, many businesses want to join the ranks of others who have successfully launched their product in China.

China requires that any business that advertises in China obtain a license.

While a business may not necessarily need to obtain a license to sell a product in China, it will need a license to legally advertise in the country. Some businesses choose to get around this requirement by working with a trade partner who can distribute their product through their TMall or JD store.

Digital Advertising Rules in China

China has strict rules related to online access. Consumers cannot access many of the websites that are popular in the rest of the world. In China, popular websites like YouTube, Instagram, Facebook and Google are not accessible to the general public.

To form an effective digital marketing strategy, you will need to advertise on channels that are accessible and popular in China, with the key channels being:

  1. WeChat

  2. Baidu

  3. Sina Weibo

  4. Toutiao

  5. Tencent Channels

However, the process is not simply to use these channels like you might be used to in western cultures.

China Digital Marketing Platforms and Channels

List of the most popular digital marketing channels

These channels have their own rules and requirements. For example, advertising on Baidu requires that you make a minimum deposit of 30,000 RMB before you can get started and to create an account.

Before you can legally take part in any digital advertising, you must obtain a valid industry license. Additionally, many industries have strict rules regarding what type of advertisements you can run.

For example, if you are selling health and supplement products in the country, you will need a specific license for this purpose. Some platforms will not allow foreigners to create an account so you might need to go through a partnered agency who will manage your account and act as your media buyer.

Many businesses choose to work through an agency instead of managing their own advertisement account. Some channels require that you spend a certain amount of money each month on the account to obtain superior support.

Horizons can discuss your advertising and marketing needs and help you develop a strategic marketing plan.

Social Media Advertising in China

Like in other parts of the world, social media advertising is an important aspect of advertising products in China. The most popular platforms in China for this purpose are WeChat and Weibo.

As the largest channels in the country, many businesses use these two major sites to advertise their products. Most digital marketing agencies in China promote these channels.

However, there is a cost and time factor involved with using social media advertising that you should be aware of before implementing your digital marketing strategy. Additionally, other channels may better resonate with particular demographics or industries.

As part of your digital marketing strategy, you may wish to consider other social media channels, such as:

Sine Weibo – This is a popular microblogging network in China

Tik Tok or Douyin – A popular video social media platform similar to Snapchat

Toudou and Youku – These are popular video sites similar to YouTube

Tencent QQ – This is China’s ICQ

Toutiao – This is a popular Ai news platform

It is important to consider which digital channels will help you grow your business in the Asian market. This is where market research really comes in. By researching and studying your target market in China, you can determine the channels that will best position you to market your product.

Through a dedicated digital marketing strategy, you can increase brand awareness and develop a loyal customer base.

Role of Key Opinion Leaders in Chinese Marketing

In China, influencers are referred to as “key opinion leaders” or KOLs. KOL marketing is influencer marketing in which a respected person in the field advertises the product on popular social media platforms in China. These key opinion leaders are able to influence their audience, often due to their own position in the field and credibility.

While fashion and beauty blogs often feature young social media models, these key opinion leaders may have more robust backgrounds, such as tech backgrounds or healthcare providers. Because these people have credibility in their field, they are often able to influence consumers to follow their advice and purchase certain products.

However, a KOL China marketing strategy is often very expensive because these influencers usually only work for large sums of money. It is not uncommon for a large brand in China to pay hundreds of thousands of dollars to establish one KOL campaign on a platform like WeChat. KOL marketing is a key component of many large businesses’ marketing plan.

When considering a KOL marketing campaign, it is important to ensure that the influencer you choose is suited to promote your business. There may be major celebrities that have widespread recognition, but there may also be famous influencers who are particularly relevant in certain fields who may charge less to be part of your KOL marketing strategy.

Measure

Measure

Categories
Topics

Leveraging Social Media Platforms for Business Expansion in China

Expanding a business into China presents unique opportunities and challenges, particularly in the realm of digital marketing. China boasts one of the world’s most vibrant and sophisticated social media ecosystems, with platforms like WeChat, Weibo, Douyin (TikTok), and Little Red Book (Xiaohongshu) playing pivotal roles in daily life. This article explores strategies and best practices for effectively utilizing these social media platforms to establish and grow a business in China.

Understanding the Chinese Social Media Landscape

China’s social media landscape is dominated by several key platforms, each with its own distinct user base, features, and marketing potential:

  1. WeChat: Often described as a super app, WeChat integrates messaging, social networking, e-commerce, and payment services. With over 1.2 billion monthly active users, it is a crucial platform for any business looking to engage with Chinese consumers.

  2. Weibo: Known as the “Chinese Twitter,” Weibo is a microblogging platform with over 500 million monthly active users. It is particularly effective for brand awareness campaigns and real-time engagement.

  3. Douyin (TikTok): The Chinese counterpart of TikTok, Douyin is a short-video platform with over 600 million daily active users. It is highly influential among younger audiences and is known for its viral content and powerful algorithms.

  4. Little Red Book (Xiaohongshu): This platform combines social media with e-commerce, allowing users to share and discover product recommendations. It has around 200 million monthly active users and is popular among young, urban women.

  5. Kuaishou: Another leading short-video platform, Kuaishou has a strong presence in lower-tier cities and rural areas. It offers a more grassroots approach compared to Douyin.

Best Practices for Leveraging Social Media in China

Successfully leveraging Chinese social media platforms requires a deep understanding of local consumer behavior, cultural nuances, and platform-specific features. Here are some best practices to consider:

1. Establish a Strong Local Presence

Localizing your brand is the first step to effectively engage with Chinese consumers. This involves not just translating content but also adapting it to align with local tastes, cultural references, and trends.

  • Language: Ensure all content is in Mandarin Chinese, using simplified characters.

  • Cultural Sensitivity: Be mindful of Chinese customs, holidays, and cultural symbols.

  • Local Influences: Collaborate with local designers, artists, or influencers to create culturally relevant content.

2. Utilize WeChat for Comprehensive Engagement

WeChat is indispensable for businesses in China due to its multifunctionality. Here’s how to leverage it effectively:

  • Official Account: Create a WeChat Official Account to engage with followers, push out content, and provide customer service.

  • WeChat Mini Programs: These are sub-applications within WeChat that offer advanced features such as e-commerce, task management, and games without leaving the WeChat ecosystem.

  • WeChat Pay: Integrate WeChat Pay to facilitate seamless transactions directly within the app.

  • Content Strategy: Share a mix of informative, promotional, and interactive content. Utilize WeChat’s Moments (similar to Facebook’s news feed) for ads that blend seamlessly into users’ social streams.

3. Leverage Weibo for Brand Awareness and Real-Time Engagement

Weibo is a powerful tool for increasing brand visibility and engaging with users in real-time.

  • Influencer Partnerships: Collaborate with Key Opinion Leaders (KOLs) who resonate with your target audience to amplify your reach.

  • Trending Hashtags: Participate in trending hashtags to increase visibility and engagement.

  • Live Streaming: Utilize Weibo’s live-streaming feature to interact with followers, launch new products, or host events.

4. Create Engaging Short-Video Content on Douyin

Douyin’s short-video format is ideal for creating viral content and engaging younger audiences.

  • Creative Content: Focus on entertaining, visually appealing, and shareable content. Challenges, user-generated content, and behind-the-scenes videos are particularly popular.

  • Hashtag Campaigns: Launch hashtag challenges to encourage user participation and increase content virality.

  • Influencer Marketing: Partner with popular Douyin influencers to tap into their follower base and leverage their creativity.

5. Harness the Power of Little Red Book for Social Commerce

Little Red Book is a hybrid platform that combines social sharing with e-commerce, making it ideal for product discovery and purchase.

  • User-Generated Content: Encourage users to share reviews and experiences with your products. Authentic user-generated content drives trust and credibility.

  • KOL Collaborations: Work with influencers to create content that highlights your products and their benefits.

  • Interactive Campaigns: Run interactive campaigns such as giveaways, contests, and live-stream shopping events to engage users and drive sales.

6. Adapt to Kuaishou’s Grassroots Appeal

Kuaishou’s user base is more diverse, with strong representation from lower-tier cities and rural areas.

  • Authenticity: Focus on authentic, relatable content that resonates with everyday life.

  • Engagement: Engage with users through comments, live streams, and interactive content to build a loyal community.

  • Local Influencers: Collaborate with local influencers who have a strong connection with their followers.

Strategic Implementation for Business Success

To maximize the effectiveness of your social media strategy, consider the following strategic steps:

1. Comprehensive Market Research

Conduct thorough market research to understand the preferences, behaviors, and pain points of your target audience in China. This will inform your content strategy and platform selection.

2. Integrated Marketing Approach

Adopt an integrated marketing approach that leverages multiple social media platforms in synergy. Cross-promote content and campaigns to create a cohesive brand presence.

3. Data-Driven Decision Making

Utilize the analytics tools provided by each platform to monitor campaign performance, track user engagement, and gain insights into consumer behavior. Use this data to refine your strategies and optimize ROI.

4. Compliance and Legal Considerations

Ensure compliance with China’s regulatory requirements for social media and digital marketing. This includes adhering to content guidelines, data privacy laws, and advertising standards.

5. Continuous Adaptation and Innovation

The digital landscape in China is fast-evolving. Stay updated with the latest trends, platform features, and consumer behaviors. Continuously adapt your strategies to stay relevant and competitive.

Case Study: A Global Beauty Brand’s Success in China

To illustrate the effective use of social media in China, let’s consider the case of a global beauty brand entering the Chinese market.

Objective: Build brand awareness and drive sales among young Chinese consumers.

Strategy:

  1. WeChat Engagement:

  • Launched a WeChat Official Account to share beauty tips, product information, and exclusive offers.

  • Developed a WeChat Mini Program for seamless shopping and loyalty rewards.

  • Weibo Campaign:

    • Partnered with top beauty KOLs to promote new product launches and create buzz.

    • Utilized trending hashtags and live streaming for real-time engagement and product demonstrations.

  • Douyin Content:

    • Created short, engaging videos showcasing makeup tutorials and beauty hacks.

    • Ran hashtag challenges to encourage user-generated content and increase brand visibility.

  • Little Red Book Strategy:

    • Collaborated with influencers to share authentic product reviews and usage experiences.

    • Hosted live-stream shopping events to drive immediate purchases and interact with consumers.

  • Kuaishou Outreach:

    • Focused on relatable, everyday beauty content to appeal to Kuaishou’s diverse user base.

    • Engaged local influencers to build trust and community around the brand.

    Results:

    • Increased Brand Awareness: Achieved widespread brand recognition across multiple social media platforms.

    • High Engagement: Interactive campaigns and influencer partnerships drove significant user engagement and content sharing.

    • Boosted Sales: Integrated e-commerce strategies on WeChat and Little Red Book led to a substantial increase in online sales.

    Conclusion

    Expanding a business into China requires a well-rounded, culturally nuanced approach to social media marketing. By understanding the unique characteristics of platforms like WeChat, Weibo, Douyin, Little Red Book, and Kuaishou, businesses can effectively engage with Chinese consumers, build brand awareness, and drive sales. Through strategic planning, localized content, influencer collaborations, and data-driven decision-making, businesses can successfully navigate the dynamic Chinese social media landscape and achieve long-term success.

    Categories
    Topics

    7 Important Things to Consider Before Launching Your Business in China

    #1 Localization of a Product

    Foreign businesses cannot make the mistake of assuming that because they have experienced success in other countries that the same approach will automatically work in China. Creating a local version of a product often involves many distinct steps, such as translating the language on the product’s labeling and considering the various markets within China.

    It is important to start closer to a beginner mindset when emerging into the Chinese market and not make assumptions about previous use by consumers in other regions.

    You may have to consider how the local Chinese market may respond to your product or service and what objections they might have to it. Additionally, you may need to consider the different geographic regions in China and whether there are certain areas that will be more responsive to your product or service than others.

    You may also need to consider if the timing of your entry into the Chinese market is optimal. You might be too early or too late into the market. Consider using effective market research offered by Horizons to test your product early and affordably.

    You must learn about problems consumers in China are having and develop solutions to address them. Creating customized protypes will show that you value the experience of the Chinese user. Talking to potential customers and learning from their experience can give you great insight into the market.

    #2 Marketing Strategy for China

    Once you have conducted some market research and determined that your product might fit the local market, you should then begin adapting your market strategy to the Chinese. You will need to consider the significant cultural differences in China in comparison to the other cultures where you have previously launched your business. Avoid having a minimal return on investment by not staying loyal to a proven marketing strategy that worked in the west.

    You will need to adapt your social media strategy to local channels and make key changes in your marketing plan so that you bring in the Chinese market and do not alienate potential customers. For example, since Facebook doesn’t work in China, you may need to spend more time on WeChat, a social media platform and corporate marketing base.

    Companies may garner more success when they publish product catalogues, share interesting content and promote events on this platform. Having a strong social presence and being actively engaged is expected in the Chinese market.

    You may need to learn about how to use the Weibo wholesale platform to connect with local customers.Another effective strategy is to observe your competitors’ marketing strategies and see how they are successful. You can also test different marketing strategies by focusing on certain channels and then measure their return.

    It is also important to market your product in a way that demonstrates cultural awareness. Collectivism is usually more important in China and eastern cultures than individualism. Some activities may be more socially inherent to these consumers, such as shopping online.

    Your marketing strategy should be adapted to resonate with the local market in China. We can provide strategic consulting that is based on our intimate knowledge of the Chinese market and culture to help you better match your product or service to your eastern companies.

    #3 Technical Issues

    Western cultures that are accustomed to Googling everything and having easy access to information may be surprised to know that China’s Great Firewall actively blocks a number of important websites. This site provides a list of blocked websites in China, including the following:

    Google

    Gmail

    Facebook

    Twitter

    Dropbox

    Slideshare

    Google Drive

    iStockPhoto

    New York Times

    Bloomberg

    YouTube

    WordPress.com

    Google Wallet

    Google Chrome

    Microsoft OneDrive

    Google Translate

    Therefore, if you come to China and plan on doing work here, you should be prepared to use different programs and not to have access to some of the tools you might take for granted.

    Additionally, you may experience problems when attempting to use APIs, SDKs or other plug-in services from abroad. Push messaging services, map services and other standard tools might also create problems.

    It is not uncommon in China for businesses who have went through the process of hosting their site on a whitelisted IP to experience unexpected slow down, finding their site is inaccessible or their system becoming unreliable.Additionally, it may be difficult to obtain the type of license you need.

    Foreign businesses can avoid some of these problems by hosting their server in China and building global and local solutions into their technological infrastructure.

    #4 Local Platforms

    Many businesses have apps or platforms that they are used to using to sell their product or service. However, operating in China may require you to adapt to local platforms instead, even if you are not familiar with them. You will want to connect with customers on their level and on the platforms that they are used to using.

    For this reason, online sellers might want to sell off popular channels like Taobao, TMall or Alibaba stores. These are the channels that locals are most familiar with, so it will be much easier and cheaper to try to appeal to them on these channels rather than luring them to your individual website.

    Similarly, businesses that use mobile apps may need to create a WeChat application to reach their customer base and use this as their primary way to engage with potential customers. Many international mobile applications are not widely used by the Chinese market and many of these are quickly abandoned.

    Chinese customers often prefer using WeChat for many of their service purchases and using payment solutions through this platform.

    #5 Local Partners

    Many foreign businesses decide to work with a local partner to have better access to local networks and connections, as well as a better understanding of the language and culture. They may create full joint ventures with these domestic companies. This arrangement can help you have more success and have a trusted partner who can assist you with the common challenges associated with launching a business in this massive market. It could also allow you to have access to more equitable options.

    Working with a local partner can also help you use an ICP license, which is very restricted. This allows you greater access where you need it most.

    #6 Local Employees

    Not all business entities in China are allowed to hire local employees. Working with a local partner can give you access to hiring from the local talent pool.

    However, if you do not want to have a formal arrangement with a domestic corporation in China, another option is to use the PEO services of a recognized employer-of-record like Horizons.

    We have access to the greatest talent throughout the world and can help you find the perfect members to add to your team, including operational employees, management and others. We can also help you navigate the immigration system and assist with visa processing so that you can complete this process seamlessly.

    Once your employees are in place, we serve as the employer-of-record and are responsible for all compliance measures and reporting to local and national government.

    #7 Business Cycles

    It is also important to learn how to measure the success of your business in shorter cycles.

    China is a vast country that prides itself on its ability to quickly innovate and be successful. Therefore, many businesses must enter the market at lightning speed. It is also important to gain the first-to-market advantage since knockoffs are quite common and competition will quickly emerge.

    These factors will require you to continuously evaluate your product or service to determine if it is still a good fit for the market. If it is not, you will need to be able to quickly pivot and make necessary changes to remain relevant.

    Contact Horizons

    Horizons can assist you with every aspect of launching your business in China, from conducting market research, providing strategic consulting, helping with business formation, visa assistance, legal assistance and handling all HR and payroll responsibilities.

    Contact us today to find out more about how we can be your strategic partner in your expansion.

    Measure

    Measure

    Exit mobile version