Efficient Tools Must have In Order to Be Success in China Market
China has 1.44 billion population with the second largest economy as 15.12% of the world’s gross domestic product. Gaining just 1% of the market share can mean huge income from Chinese consumers, which currently has the highest purchasing power in many industries. There are many brands and businesses around the world that spend huge budgets in marketing to penetrate the Chinese market, but that is not easy as many of them had to make a mistake in penetrating into Chinese market, which is considered to be one of the highly exclusive subdued markets. Even if you have all your weapons, it is not a guarantee that it will be successful.
Today, V-Click Technology would like to recommend. What should be included in the marketing plan for brands or businesses that want to effectively penetrate the Chinese market With a higher chance of success.
E-commerce is an indispensable sales channel, nowadays, the trend of online shopping is growing in many countries, especially in China. A key factor, such as COVID-19, has increased the number of online shoppers to 783 million, making it the second largest online retail market after the United States with a value of approximately 1 trillion yuan or 4.8 Trillion Baht. The largest B2C retail platform is Tmall and in 2020,it has a transaction value of approximately RMB 6.6 trillion, or approximately 32 trillion Baht, allows public to open a shop for goods such as Taobao, valued at 3.4 trillion yuan, or about 16 trillion Baht, with both platforms are affiliated with Alibaba.
Besides Tmall and Taobao, there are other Chinese e-commerce platforms such as JD.com, Suning, Kaola, Xiaohongshu, and Pinduoduo. By 2021, the overall Chinese e-commerce market of all platforms is expected to be valued at 40 Trillion Baht or about 80% of all online trading. The largest industry Is fashion and is expected to be worth about 10 billion Baht, believing that Chinese netizens will have more shopping online, an average of 40,000 Baht per person.
For this reason, E-commerce is an essential tool in order to provide customers with access to various merchants and is something that can help increase the chances of selling the product.
For Chinese social media, it has become essential that every brand and business must have it in order to communicate under COVID-19. People are under quarantine so they have more free time to spend, which resulted in online usage. Most of the time is spent on social media such as WeChat, Weibo, Tencent QQ, Tencent VDO, Xiao Hong Shu, Douban, Zhihu, Meituan, Toutiao, Baidu, Youku and Douyin (TikTok).
With the increasing number of users on each platform, as a result, many platforms have added an e-commerce feature that could be seen as another way to increase revenue. In order to keep the customer journey in its own application, Social Commerce plays an increasingly important role in digital marketing in China, because in addition to the strength of Social Media that allows brands to communicate and interact with customers, buy products and run advertisements.
At the beginning of 2021, Chinese social media users reached 931 million accounts from 940 million of the country’s Internet users, with total sales of Retail Social Commerce reaching 6 trillion in 2019, or 10.3% of the Chinese eCommerce market. The popular platform WeChat, Super App platform, plays a very important role in the social commerce market with the convenience of ePayment such as WeChat Pay function and the current launch of WeChat Mini Programs of more than 2.3 million brands and businesses on the platform.
From these statistics and the growth rate of the economy, the population of China shows that social commerce could still grow in the future, which every second you are wasting, you are losing out on an enormous opportunity.
The tool is gaining popularity among marketers all over the world, including in China, and it is also an important factor for the growth of eCommerce and Social Commerce markets, that is, KOL or Influencer.
They may not have that much brand influence in many countries, but China is different. Since there is a survey to find behavior of the Chinese people who often put emphasis on the words of their favorite celebrity, or the words of someone who has real experience from using that product or service, also known as reviews, they have a greater influence on Chinese consumers’ purchasing decisions than advertising from brands themselves. Until the phenomenon of the Chinese KOL, which is called the buzz from marketers around the world, whether it is “Viya, a Chinese woman selling online, making 13,000 million Baht in 1 day” or “Xinba, a young Chinese Live sales for 12 hours, generating income as the top Sales of the department store all year “etc.
In addition to KOL and famous influencers who are quite famous in public, there are also many people classified as Micro KOL or Micro Influencer and KOC (Key Opinion Customer) that have a lower price which may be suitable for your brand and have the ability to reach the real target more effectively. Thus, it is a difficult challenge for brands and marketers to select the right KOL for their brands.
In addition to these channels to enter the Chinese market, there is also another equally important aspect of marketing technology, due to the large market size of 1,400 million people, and the information is hugely scattered, so it is difficult to assemble and analyze various factors in marketing, including keeping up with the trends in real time in all areas of China.
Technology is essential to penetrate into what kind of people the vast majority of people are in the Chinese market, what age, what they like and what they are interested in, or even allocation of areas to penetrate the Chinese market in different locations precisely. I can tell right away what is going to be the hottest topic in this country of within 9.6 million square kilometers. Nowadays, artificial intelligence marketing technology is available to help manage this massive amount of data, like iAudience or iAccess (Cross-Channel Targeting), the online marketing technology exclusive to V-Click Technology.
What is more important than technology is professionals with true understanding of the technology, and experience in doing Chinese Digital Marketing that you need to know and understand the behavior of Chinese people that are quite unique in depth, including being able to use the insights that technology has collected to analyze and penetrate Chinese market effectively and able to communicate the strengths of products and services to the right target group. Most importantly, there must be a one-stop service marketing service for a full range of work to keep up with all trends..
V-Click Technology is a Greater Chinese digital marketing services company under iClick Interactive Asia Group Limited with over a decade of marketing experience in China, facilitating global brands to penetrate into Chinese market. We are also a company that innovates and develops many marketing technologies to deal with the enormous availability of Big Data to benefit the best performance of the audience. You can discuss about Chinese market with us by sending your business information and questions to Sales@v-click.co.th.