China continues to be an attractive market for businesses worldwide, driven by significant innovations and initiatives from major companies. For foreign companies aiming to establish a strong presence in China, understanding Chinese marketing trends is crucial.
Brands must develop a tailored marketing strategy for China to succeed in this competitive landscape. This requires a thorough understanding of consumer habits and profiles, as well as knowledge of local marketing tools.
Throughout this article, we will explore the key aspects of marketing in China for foreign businesses interested in entering this profitable market. But first, let’s delve into why marketing in China is so important.
If you’re interested in learning more and implementing effective marketing strategies in China, consider reaching out to Influchina, a marketing agency in China specializing in enhancing the presence of foreign businesses in the Chinese market.
According to the Chinese Ministry of Commerce, consumer goods sales in China are projected to reach $6 trillion by 2024. China has held the title of the world’s largest online retail economy for the past 11 years. The country’s mature online retail economy, high mobile penetration, and extensive e-commerce infrastructure have created the ideal environment for a variety of innovative marketing trends to emerge in recent years.
According to the Chinese Ministry of Commerce, consumer goods sales in China are projected to reach $6 trillion by 2024.
These Chinese marketing trends have not only transformed the marketing landscape within China but have also significantly impacted consumer markets worldwide.
Continue reading to understand these new Chinese marketing trends in 2024 and develop effective strategies for your business.
1. Chinese marketing trends: from KOL marketing to KOC
Chinese marketing trends have evolved significantly, with KOL (Key Opinion Leader) marketing, also known as influencer marketing, once being a dominant force during China’s social media boom. However, as Chinese online consumers have become more discerning and media reports have highlighted some “misconduct” among KOLs, their influence has waned.
A few years ago, KOL marketing was the primary method for brands to collaborate with influencers. Recently, however, there has been a noticeable shift towards KOC (Key Opinion Consumer) collaborations. KOCs, who are often everyday consumers sharing authentic experiences, have gained popularity because they are perceived as more relatable and trustworthy than KOLs.
KOCs, who are often everyday consumers sharing authentic experiences, have gained popularity because they are perceived as more relatable and trustworthy than KOLs.
This shift reflects a growing preference among Chinese consumers for genuine, peer-to-peer recommendations over endorsements from high-profile influencers. KOC marketing is particularly effective in niche markets and among younger demographics, who value authenticity and transparency. This trend also highlights the increasing importance of building trust and community engagement in Chinese marketing strategies.
KOC marketing is particularly effective in niche markets and among younger demographics, who value authenticity and transparency.
2. Livestreaming
Livestreaming marketing in China emerged in 2016 with the introduction of Taobao Live. Since then, its popularity has soared, especially during the COVID-19 pandemic, becoming a key Chinese marketing trend in 2024.
The integration of e-commerce features into platforms like Douyin, Xiahongshu, and Kuaishou, along with livestream capabilities on Taobao and JD.com, has made livestreaming an essential part of modern marketing strategies in China.
During last year’s Singles’ Day shopping festival on Taobao, livestreams generated $6 billion in sales. This success is attributed to the combination of easy one-click purchasing, interactive live product presentations, real-time Q&A sessions, and engaging product demonstrations.
During last year's Singles' Day shopping festival on Taobao, livestreams generated $6 billion in sales.
The trend of livestream marketing has also spread internationally, with companies like Amazon and Walmart adopting this strategy, reflecting its growing global appeal.
3. Social e-commerce
Chinese marketing trends have increasingly highlighted the rise of social e-commerce, driven by platforms like Xiaohongshu and the evolution of e-commerce capabilities on various Chinese social media platforms. This shift has ushered in the era of social e-commerce in China.
According to a report by Paycomet, 77% of total sales in China are conducted online, surpassing South Korea’s 44%, which ranks second globally. A key innovation in this space has been the social community promotion model used by the successful platform Pinduoduo.
Social media platforms like Douyin and Xiaohongshu have leveraged their vast user bases to integrate e-commerce functionality directly into their platforms. This development has significantly contributed to the rise of social e-commerce, a feature now prevalent and increasingly important in Chinese marketing strategies.
Social media platforms like Douyin and Xiaohongshu have leveraged their vast user bases to integrate e-commerce functionality directly into their platforms.
WeChat’s comprehensive ecosystem, which includes mobile payments, instant messaging, mini-programs, and official accounts, provides an ideal environment for social e-commerce to thrive.
Currently, Western platforms are catching up, with Facebook and Instagram enhancing their e-commerce features, spurred by the massive shifts in shopping habits brought about by the COVID-19 pandemic.
4. Optimizing your website
One key strategy to tap into the Chinese market is to adapt your website to meet the specific linguistic and aesthetic preferences of Chinese consumers, aligning with crucial Chinese marketing trends.
Here are the essential points to consider when optimizing your website for China:
- .cn Domain: Using a .cn domain helps local search engines recognize that your website is optimized for the Chinese audience, enhancing its indexing and visibility.
- ICP License: Hosting a website in China requires obtaining an ICP (Internet Content Provider) license, a government-issued permit.
- CDN (Content Delivery Network): A CDN improves your website’s loading speed in China, enhancing the user experience.
- Language: Given the complexity of the Chinese language, automatic translations are often inadequate. To effectively reach Chinese consumers, your website should be written in Mandarin.
- Visual Aspects: Some current trends for Chinese websites include the use of gradients, homepage videos, H5 pages, voice search, and dark mode. Chinese users prioritize features, usability, and user experience over design aesthetics. Additionally, navigation menus should be arranged horizontally rather than vertically, as horizontal structures are easier to scan in Chinese.
- Mobile Optimization: Ensure your website is optimized for mobile resolution, as a significant portion of Chinese internet users access websites via mobile devices.
By addressing these factors, you can enhance your website’s appeal and functionality for the Chinese market, making it a more effective tool in your overall marketing strategy.
5. Chinese social media
Chinese social media has become the most popular and effective marketing strategy for businesses in China, playing a central role in the lives of consumers in this vast country.
According to a survey conducted by McKinsey with nearly 6,000 Chinese internet users, 95% of residents in major Chinese cities have at least one social media account, highlighting the critical importance of these platforms in any Chinese marketing strategy. Essentially, if your brand isn’t present on Chinese social media, you are largely invisible to consumers, making it challenging to reach them through traditional methods.
The most important Chinese social media platforms to establish a presence on include:
- WeChat: This platform is indispensable for building customer loyalty. It offers a range of features, from messaging and payments to mini-programs, enabling deep engagement and seamless transactions.
- Xiaohongshu (Little Red Book): Known for its strong focus on lifestyle and beauty content, it’s a powerful platform for user-generated content, where consumers share reviews and recommendations about products and brands.
- Douyin: The Chinese counterpart to TikTok, Douyin is ideal for creating viral content, particularly through short videos that can significantly increase brand visibility and engagement.
- Kuaishou: Another leading short-video platform, Kuaishou is particularly popular in lower-tier cities and rural areas, making it crucial for reaching a broader audience in China’s diverse market landscape.
6. Targeting lower-tier cities
As part of evolving Chinese marketing trends, brands are increasingly focusing on lower-tier cities as major Chinese cities become saturated with luxury and lifestyle products. Once primarily targeted by domestic brands, these lower-tier cities are now integral to the marketing strategies of foreign companies in China.
As major Chinese cities become saturated with luxury and lifestyle products, brands are increasingly focusing on lower-tier cities.
Lower-tier cities, while not as culturally prominent as top-tier cities like Beijing or Shanghai, make up a significant portion of China. These cities have seen a rise in disposable income, partly due to a lower cost of living and a slower pace of life, which allows residents to spend more on consumer goods.
Lower-tier cities are now major drivers of growth in China’s consumer market. The popularity of platforms like Kuaishou in these areas, combined with the saturation of luxury goods in higher-tier cities, has led brands to increasingly target these less recognized yet populous regions. This area is becoming increasingly attractive due to its untapped potential and the growing purchasing power of its residents.
Lower-tier cities are now major drivers of growth in China's consumer market.
The trend toward targeting lower-tier cities is a significant aspect of evolving Chinese marketing trends, reflecting a broader understanding of China’s diverse market landscape. Brands are tailoring their products and marketing strategies to meet the specific needs of consumers in these areas, recognizing that they represent a substantial and growing market segment. As China’s urbanization continues, these cities are expected to play an even more significant role in the country’s economic future.
Brands are tailoring their products and marketing strategies to meet the specific needs of consumers in these areas, recognizing that they represent a substantial and growing market segment.
7. Artificial Intelligence (AI)
Artificial Intelligence (AI) is revolutionizing various aspects of marketing in China, providing new tools and strategies for businesses to reach consumers more efficiently. AI is being utilized in several key areas:
- AI-Powered Customer Service: Enhances customer interactions with chatbots and automated service solutions.
- Real-Time Translation/Subtitling: Facilitates communication across language barriers, making content more accessible.
- Logistics Optimization: Improves supply chain efficiency and delivery times.
- Product Recommendation Algorithms: Personalizes shopping experiences by suggesting products based on consumer behavior and preferences.
- AI-Driven Virtual Influencers: These digital influencers engage with audiences, offering new ways to promote products and interact with consumers.
These advancements in AI are not only improving current marketing practices but are also paving the way for more innovative Chinese marketing strategies. Companies like Alibaba, Douyin (Tiktok), and Baidu are at the forefront of integrating AI into their operations, investing heavily in these technologies to enhance their market presence and consumer engagement.
8. Personalization and customization
Personalization and customization have become increasingly important trends in the Chinese market, particularly among millennials. According to a 2018 study by Luxue, personalization is the most sought-after service among Chinese millennials.
Personalization and customization have become increasingly important trends in the Chinese market, particularly among millennials.
While personalization is not a new concept, its prominence in the fashion industry has grown steadily in China. What was once a costly option reserved for high-end clients is now widely accessible thanks to the rapid development of e-commerce. This evolution has enabled brands to communicate more directly with customers, tailoring products to meet individual preferences.
Today, major fashion brands in China extensively offer personalization and customization options. Many of these brands utilize WeChat’s mini-program features to provide personalized shopping experiences, allowing consumers to customize products to their tastes.
This trend highlights a broader shift towards more individualized consumer experiences, as Chinese shoppers increasingly seek products that reflect their unique identities and preferences. For brands, this means investing in technologies and strategies that enable customization at scale, making it a key component of modern Chinese marketing strategies.
9. B2B marketing in China
B2B marketing in China is supported by several specialized platforms that cater to businesses and professionals. Notably, platforms like Baidu Zhihu and Baidu Tieba are crucial for reaching and engaging with a business-oriented audience.
Platforms like Baidu Zhihu and Baidu Tieba are crucial for reaching and engaging with a business-oriented audience.
Baidu Zhihu boasts over 100 million monthly active users and serves as a hub for sharing knowledge and expertise across various topics. Key Opinion Leaders (KOLs) actively participate in discussions, making it a valuable platform for B2B marketing. Engagement is crucial on Baidu Zhihu; businesses need to respond promptly to comments and interactions, much like on LinkedIn. High-quality content and active participation can help build authority and trust within the community.
Engagement is crucial on Baidu Zhihu; businesses need to respond promptly to comments and interactions, much like on LinkedIn.
Baidu Tieba, with over 50 million monthly active users, offers a unique space where users can create their forums on any topic, within China’s regulatory guidelines. This platform stands out for two main reasons:
- Targeted and Highly Interactive Content: Posts on Baidu Tieba vary widely in format and style, and the platform emphasizes interaction. To maintain visibility, it is crucial to engage with readers actively.
- Vertical Structure: Baidu Tieba consists of numerous self-managed communities, each with its own host and guidelines. This structure allows for a more niche-focused approach, making it possible for businesses to engage with specific interest groups effectively.
10. Contacting a Chinese marketing agency
Navigating the intricacies of Chinese marketing trends can be challenging, given the diversity and complexity of the market. It’s crucial to understand various cultural and market-specific factors before launching any strategy.
For businesses looking to establish a foothold in China, partnering with experts can make a significant difference. Consider reaching out to Influchina, a marketing agency that specializes in guiding foreign companies through the unique landscape of the Chinese market. With deep insights into both Asian and Western markets, Influchina helps businesses create effective marketing strategies tailored to succeed in China. Their expertise can provide the support needed to bridge cultural gaps and maximize market potential.
