Western corporations often find it challenging to enter the Chinese market, due to less understanding of the consumption habits. The mistake most of them make is misinterpreting the market. China is not a single and large and unified market and many factors shall be considered, including the cultural differences, the city-tier classification, the marketing trends.

Here are some marketing strategies that will maximize the probability of success when entering the Chinese market.

The power of influencer marketing

In recent years, influencer marketing has been very popular and well implemented in the Chinese marketing strategies. Prevalence of social media platforms has allowed the Key Opinion Leaders (KOL) to connect with the general public, and brands to use them to sell.

For instance, Douyin 抖音 (TikTok in the West), a short-form video sharing platform, has witnessed an growth of users. As a consequence, influencers have emerged, and they massively have created content to share with followers in no time. Indeed, Statista reports that 600 millions users are daily connected to Douyin, in China, in August 2020.

If you want to run a successful KOL campaign in China, your focus shall not be on the number of followers the influencer has. Instead, it is important to understand its audience and to estimate the reach and the conversions one can bring to your brand.

Some brands will also consider to work with lower-tier and micro-KOLs, due to the more authentic voice and better targeted audience. Compared to KOLs, KOCs (Key Opinion Consumers) connect to smaller group of people and deliver more personalized messages.

Micro KOLs are also interesting in terms of budgets, as they are generally more affordable, with a high ROI. Instead of paying a fee, the brand can offer free products or samples as an alternative.

Livestreaming becomes more important

Gen Z and Millennials value connection with KOLs and are most influenced by people in real situations who are not trying to fake things and the livestream marketing has emerged in China.

For a live stream to be successful, it is important to make sure that the person on the camera is spontaneous, creative, and entertaining as followers will only engage with the brand if the KOL shows positive and entertaining energies. Indeed, the influencer can also share a deeper understanding of the products to its audience and lead the viewers to purchase the product.

For instance, Taobao Live is one of the live stream platforms that works well in China, where thousands of potential buyers watch influencers introducing products on daily basis.

Merchants can take advantage of livestream to sell their products and a hiring a China marketing agency would help your brand to understand your market and targets by developing tailored campaigns. China has a lot to offer but defining a strategy is necessary.

The city-tiers and generations in China

Understanding the city-tier system in China is crucial for your budget planning. If you are planning to hire, top tier cities will involve much higher wages and rent your brand exposure will grow in a faster way.

The country's tier system also dictates the consumer dynamics in terms of purchase behavior:
• The younger generations, Millennials, and Gen-Z, have different consumer behavior. They tend to buy online instead of typical, traditional bricks-and-mortar stores.
• Online influence is more persuasive on Gen-Z while the Millennials rely more on learning customer reviews rather than traditional advertisements. Every eight out of ten millennials never buy a product without checking the customer reviews.
• The baby boomers prefer to buy in a traditional store, however, the Xers are more inclined to price drops and discounts.

China's marketing evolves quickly and 2021 will not be an exception. Understanding your market and consumers is a key to succeed in China. KOL marketing and livestreaming will still be the crown-bearer. Any business targeting the Chinese market should focus on the norms of the country's marketing trend.

In 1998, legendary Chinese entrepreneur Liu Quingdong founded the company that he has become synonymous with. This company, known as JD.com, experienced tremendous growth over its evolution as a company. What began as a store in the traditional brick and mortar style has evolved into the leading e-commerce retailer in the Chinese market. Under the guidance of Liu Quingdong, JD.com has also become the leader in innovation in the Chinese retail sector and one of the foremost leaders in this area globally. The humble business that Richard Liu began in 1998 is now one of the members of the prestigious Fortune Global 500. Beyond being China's biggest retail operation, JD is also the company that brings in the largest amount of online revenue in the market as well. Commitment to innovation has been a huge factor in this massive growth and success as well as the JD commitment to impressive levels of customer service that Richard Liu demands.

Richard was born in the town of Suquian which is located in the Jiangsu Province. His family was hard-working but of modest means. Richard excelled in his education and desired to attend college. In the end, he was able to do so with some critical support from the members of his village that wanted to see he provided with the opportunity to attend college. Richard attended China's Renmin University where he undertook a course of study in the Sociology major. After completing this course, Richard Liu went on to earn his EMBA Degree at the Business School at China Europe International.

The youth of Richard Liu was a time where China was experiencing some major changes. These changes included a massive restructuring of the economy that led to a lot of new opportunities for entrepreneurship. Richard was impressed by these changes and he was also inspired to make his mark. He founded a brick and mortar store, that eventually became JD.com, in 1998. It was in 2003 that an event occurred that would cause Richard to shift to focus at JD in a manner that would set the future course for the firm. This event was the SARS epidemic that terrorized China. This event had the effect of shutting down storefronts across the entirety of the country and causing businesses to grind to a halt. The citizens of China also stay indoors which added to the effect of business slowing to a crawl. Richard saw an opportunity and started to shift his business model to the online sphere. This was a formative change that helped to push JD.com to the next level. Since that time, Richard has fully committed to operating in the online sphere and has guided JD to a status of being one of the world's preeminent innovators in online sales and supply chains.

This impressive innovation campaign that JD has embarked on under the leadership of Liu Quingdong has had to effect of giving the firm the biggest and most sophisticated infrastructure network for the fulfilment of orders that any e-commerce firm has globally. The system of infrastructure parks that are run by JD is some of the most technological and automated facilities in the world of order fulfilment. One of the biggest projects that Richard and his team of supply chain experts are working on now is to continue to expand so that the JD supply chain becomes fully connected to the entire world. The goal is to make it possible to provide any product and brand to any consumer that wants it on a global basis. This is consistent with the kind of innovative work that Richard has demonstrated throughout his career.

Internet- the most transforming invention in human history, the most dynamic fragment of technology, evolving ever so rapidly that it has come down to the irony that we humans are catching up with the internet rather than it catching up with us. The advent of technology has opened many doors for us in all spheres. Today even imagining a day without smartphones may crank up our routines. The internet has seeped into our lives to such an extent that now its impact is almost non-reversible.

One hardly can be a part of tech-dominated society without connectivity. Today, everything from grocery shopping to car cleaning has a dedicated online store. Therefore, it is imperative for the enterprises to reach out to millions by connecting with them through the internet.

Internet- The driving force behind E-commerce

The truth of the matter is, Internet sells fast. Selling through websites is the fastest growing method of trading worldwide. There are two main forms of e-commerce:

There are many different types of products and services that are traded on line including books, CDs, holidays, and insurance.

Nowadays, the consumers can purchase goods online too, basically a business to consumer transactions where a consumer can select the product online and order it, the company will deliver it at his/her residence. Everything is done and controlled by the internet.

Expansion of E-commerce through internet

Thanks to the mid-2000 internet boom for online shopping, online trading, businesses online, etc., e-commerce has flourished and spread like wildfire. Now the net has become an indispensable part of the structure of a business. Before the advent of internet, a business model was geographically constrained by the limits of the area of the business. Everything, from socializing to grocery stores and stock markets, has been e-zoned. Ever since the hit of internet, the business has turned into e-commerce, thus opening itself to millions of customers that it could previously not reach out to before.

Internet Generating Employment through E-commerce

The Internet accounts for a significant portion of global GDP. The consumption and expenditure related to internet alone can be comparable to that of agriculture or energy sector.

Being a vast mosaic of economic activity, the internet regularly hosts millions of daily online transactions and communications. Because of this, it generates direct and indirect employment on a daily basis. Millions of people are getting gainfully employed in skilled and semi- skilled jobs through the internet whether it is for programmers or website developers, or freelance writers. The advantage to internet is that it gives the comfort of switching your work space as well; one can work from home too if one wants. Which is a great benefit for new mothers, or disabled persons or people who prefer working in the comfort of their homes.

Results in Cheaper and Better Quality Products and Services

Internet is such a boon in our lives. Indeed, the world has become one tiny global village and this has also resulted in a massive customer base for e-commerce websites. With every website and online store competing against one another for monopolising over the sector, the competition just gets tougher for them. The customers are the real winners in this situation. In a bid to win, these stores work on different strategies like enhancing the quality of products and services, slashing prices, bringing out lucrative offers and schemes for long term investments, etc. At the end of the day, it’s a win-win for the customers as they get massive discounts of products and services. It is the time for customers to make the most of this and shop smartly. There are several websites like Zoutons which offer coupons for other e-commerce websites. One should make use of such coupons to get the best deal possible.

Making Shopping Easier for the Customer

Consumers of today have more places and ways to shop than ever. They are not just limited to their local markets. Today, they can shop, sitting in India, from any store around the world. The e-commerce websites have made things as easy as they can be. Door to Door delivery, customer reviews and added information about the products, multiple payment options, reliable customer services to name a few. E-commerce websites are actually investing in providing comfort to their buyers and giving them the most convenient and relaxed experience, as when the prices cut down on products everywhere, this is many a times, what it comes down to- giving customers a satisfactory experience.

Mobility Emerged as a New Driver of E-commerce

With the increase in numbers it is clearly evident that mobile phones lead the E-commerce market it is crucial for the enterprises to up their game and be a part of the mobile phones to reach bigger numbers in terms of their sales. In this era of smartphone technology and growth in mobile internet traffic, a significant impact can be witnessed in e-commerce sector too. Mobile phone users are slowly moving from desktop version to mobile app usage and this is evident with the changing traffic to few top e-commerce stores in India. 44% of the Amazon traffic is coming through mobile devices as per 2016 Recode statistics. At this time, one can only switch up their game and join the app frenzy.

E-commerce has made huge impact on business culture. Customer can shop online in privacy of their own houses. This has also strengthened small businesses to be completely online or modify their marketing strategies. With the advent of the internet technology, E-commerce has been affected in all spheres, be it retailer picture, or products and services quality or promotions and schemes. Costumer’s approach to spending money and purchasing has also been permanently altered. It is undeniable that this is all to stay and that the dynamic trends on internet will continue to pressure companies to change their marketing strategies.

Photo by Daniel von Appen on Unsplash

In this modern world, it is vital that you are constantly on the lookout for new ways to save money, time, and effort. Otherwise, you will end up being left behind and lose your competitive edge. Most young businesses fail due to cashflow challenges, and so forward thinking is especially important when it comes to financial transactions. Giving and receiving funds is a huge part of daily life, so it is important that you understand the process. Long gone are the days of writing a check and waiting days for it to be cashed. Even tangible capital and pin machines are beginning to look dated. That is why you should embrace innovative payment methods.

Innovative payment methods can keep you organized

If you really struggle to keep on top of your budget and cashflow, you really must get your affairs in order. Take advantage of direct debits and standing orders to pay bills so that you never miss a pay date. By understanding your income and regular outgoings, you will be able to set yourself financial goals and regain control of your accounts. Using technology and innovative payment methods allows your accounting systems to record transactions accurately, which is essential for your business’s success – and your accountant’s happiness!

Innovative payment methods can save you effort

Innovative payment methods have transformed how we consume. They enable you to save considerable time and effort having to buy either goods or services. For instance, when you buy items online, you can avoid lengthy queues and the inconvenience of having to physically attend a brick and mortar store. Think about when you want to attend a sporting fixture or concert, and you find out when the tickets are being released; you no longer have to queue at a ticket office, but can easily access them online from companies such as Ticket Sales at a time that is convenient to you. This is a quick and easy way method for you to obtain exactly the tickets you want and at the best price available.

Innovative payment methods can save you time

You should also embrace innovative payment methods in an effort to save valuable time. Making use of contactless alternatives, such as fit-pay, will help you to deal with your transactions at lightning speed. When you are struggling to manage a busy schedule, every second counts. If you are going to secure success in life, you need to ensure you are making the most of your time.

Innovative payment methods can send a message

Making use of these payment methods will also help you to send a message that you are forward-thinking and up to date with technology. This is especially important if you are a business professional who is looking to impress your industry peers or your valuable clients – you want your business to be streamlined for efficiency, and that itself is attractive to current and potential customers, and will convey the message that you are a slick operating business.

There is no doubt that platforms such as the Nintendo Entertainment System and Sega Genesis are the pillars of the modern gaming industry. However, such humble roots are now being overshadowed by the role of the interactive platform. No longer are we subject to the confines of a console or a hard-wired controller. On the contrary, our everyday experiences are being reshaped thanks to a synergy of personal preferences and modern technology. How are interactive gaming techniques causing this industry to evolve and what advancements are set to take centre stage in the not-so-distant future?

Ground-Up Interaction

Developers are keen to obtain the input of their dedicated fans. Not only will this serve to streamline the creation of a game, but catering to the needs of constituents guarantees loyalty into the future. This is why a number of Kickstarter campaigns have attempted to provide investors with an active role during the creative process. So, it is now possible to interact with a game before it is ever released.

Bringing the Spectator into the Equation

It is not only the players who wish to enjoy superior levels of interaction. The prevalence of platforms such as Twine clearly indicates that spectators are enjoying an increasingly interactive presence. This will have two notable impacts upon the entire industry. First, the role of social media will become much more prominent. Secondly, word of mouth is likely to spread much faster. Should a game prove to be popular, the creators can expect to enjoy a wealth of success.

The Physical Side of Interactive Gaming

Traditional board games such as Monopoly and Chess will always appeal to players. However, technology is playing an equally important role in the ultimate user experience. This observation has not been missed by developers, as there are many firms which are seeking to create an amalgamation of digital tech and physical gameplay. Some of these unique platforms will soon be released to the market. Casingdom have a prototype "Shock to the System" board game which should be quite popular with poker players. Through the use of wireless technology and wearable wristbands, participants are given mild electric shocks when they annoy others or make a mistake. Not only can this "level the playing field", but gamers will undoubtedly enjoy a much more engaging overall experience.

Virtual Reality to Become a Commercial Reality?

Although the concept of virtual reality has been popular with science fiction writers for decades, it remained out of touch until recently. AI has already had an immense impact within the world of interactive gaming and many industry leaders feel that we are only scratching the surface. This is primarily a result of the fact that such devices are now becoming affordable to the average consumer. No longer will only a few name brands dominate the marketplace. As competition grows, the prices of this hardware will likewise fall. This should ultimately result in AI becoming a mainstay within the world of digital gaming. When we take into account that wireless technology enables players to interact with one another, it may not be long before we witness the birth of entirely digital AI social media platforms.

These are some of the techniques which are serving to redefine the role of interactive gaming within the 21st century. The majority of developers now realise the impact that such approaches will have upon the experience of the player and therefore, it is perfectly reasonable to expect even more unique systems to be unveiled in the years to come.

There has been some heated controversy going on amid the successful start of Amazon in India. The marketplace giant launched with better than expected numbers coming in, but Flipkart, Amazon’s major rival in India, has made an amazing turnaround and so the race is on. For the past several years the economy in India has been staggering a bit, and so these two marketplaces just might rekindle hope for India’s future in e-commerce.

India’s Continued Growth Overall

The race may be on, but will it really matter who comes out the winner if their efforts can bring about the changes needed to put India back on the map again as a key player? Thought to be the most promising of all emerging nations, this nation with 1.25 billion inhabitants is quickly gaining momentum because of the entrepreneurial spirit of the largest portion of the population – India’s young adults.

While there have been some setbacks, they pale in comparison to those which many of the world’s superpowers are experiencing. Uncertainty still looms over Brexit in the UK and it is unclear what the highly controversial US president will do for the economy of the United States, so India is in a prime position for massive growth. Amazon and Flipkart are just two of the reasons why there is hope for the future.

India’s Youth Answering the Call

Since such a large portion of the population is young and with a high priority placed on education, India is in a prime position to literally explode in the technology sector. As e-commerce expands, India just might set the pace for the advancement of a digital economy in the region, according to US marketing agency Single Grain. With China also making a move towards expansion in the free-market, these two nations may soon enjoy a place of global dominance in the technology sector once dominated by Japan.

The reason why India is looking towards the younger generation isn’t only because of their sheer numbers but because of their thirst for knowledge and a will to succeed. Saying India’s youth have a pervading entrepreneurial spirit is an understatement at very best. It is more of a passion for working towards a better future for their impoverished country and Amazon and Flipkart might just set the stage for this generation to elevate the GDP far above where it now stands at less than a quarter of China’s per capita.

E-commerce Offers a Better Future

As one of the world’s poorest nations and sadly one of the four most populous, India lacks the infrastructure that many other emerging nations now enjoy. Pumping money into the system will enable the Indian government to update that very same infrastructure that is holding the nation back.

With travel and communications often hindered by this very lack of updated infrastructure, e-commerce takes on greater significance. Startups can work from home with just a computer and an Internet connection, and that is likely the one factor that will bring India up to the ranks of finally being a ‘developed’ nation and a global presence to contend with.

China has always been a lucrative market for the e-commerce business with its 770 million+ working population and their love for shopping online. The real situation, on the other hand, is a little different than what someone inexperienced with the Chinese market might presume. Although it is the biggest e-commerce market in not only Asia but globally as well, it is nothing like any other market in the world. As many big brands batten down the hatches in realisation of this fact, let us take a close look at some of those shutdowns.

Lotte

Lotte Group Retail has been in China for the last two decades and currently has five shopping malls and 115 supermarkets in the country. However, the group’s first attempt at opening an online mall (Tmall) came to an end this January when sales fell well below expectations during the last quarter of 2016 as compared to Q4 2015. The South Korean MNC had not been seeing too much growth in China recently and as was made evident by the closing of the Tmall, e-commerce wasn’t working for them either.

ASOS

The prospects of e-commerce are bright in the UK and reliable VPS hosting UK makes sure that even emerging online businesses never have a bad server day. This positive experience at home led ASOS to believe that the company could make it in China as well, and the biggest online fashion retailer in the UK entered China with a bang in 2013. They poured in over a hundred million RMB into the market and developed a sales team, opened its own website as well as a Tmall, and imported the best of the British contemporary style it had to offer. All that effort and optimism came to an end in April 2016, when they decided to close shop and leave China for good, with a loss of 4 million GBP! It was a mix of import taxes, complex Chinese clothing trade regulations, ineffective marketing, and stiff competition from local Chinese competitors that ultimately pushed the huge brand out of China.

Coach

Coach, the US luxury brand in handbags launched its first official Tmall in 2015 and closed it down in September 2016! They did give a vague explanation along the lines of “shifting operational strategy,” but it wasn’t really a secret. Just like many other foreign established brands venturing into China, Coach just wasn’t making a profit that justified its Tmall. Coach, however, has not yet left the Chinese online market completely. The company has realised that WeChat is probably the best platform for online businesses in China right now and continues to remain quite active there.

As one can see from the examples above, in spite of China being the largest online retail market in the world, it isn’t a place where a business can enter with pre-conceived notions and zero market research, irrespective of their stature in the outside world. Understanding government regulations, logistics, and the unique Chinese market are some of the aspects of e-commerce that should be thoroughly researched and assessed before entering the nation and its fiercely competitive online market.

While Baidu is about one-sixth the size of Amazon, it is growing very quickly. This is why Baidu was one of Motley Fool's major buy recommendations in 2016. Baidu is just the tip of the iceberg when it comes to Chinese e-commerce but it reflects many changes the region is facing in this area.

Beijing is no Longer the Epicenter

There have long been jokes that the capital or largest city of a nation is the entire nation and that everything of importance happens there. This is how e-commerce rolled out in the United States, primarily in San Francisco or in New York City. This isn't true in the case of China. In fact, e-commerce growth in China is driven by demand in third-tier and lower cities. A similar trend is seen in India, too, as middle-class consumers with less access to physical retailers order goods online.

Online Selling through Social Media Platforms is becoming the Norm

The Facebook Marketplace that rolled out in 2016 can be seen as copying WeChat's e-commerce model. A third of WeChat users were buying items online through WeChat in 2016, a percentage guaranteed to rise as the WeChat ecosystem of service providers continues to grow. Other messenger platforms in China are adding bots, online marketplaces, and information appliances capable of voice recognition to facilitate e-commerce like Amazon's Alexa.

Social Commerce now the Soul of China's e-commerce

In Asia, half of all e-commerce is driven by social media. This is facilitated in part by the online selling that popped up on social media sites like WeChat. It is also driven by Baidu hosting two-thirds of all web searches in China and offering many items for sale online. Tools like The Email Finder remain critical for B2B sales, but reaching consumers requires going onto the platforms where they shop.

Chinese Preferences are Fueling Innovation

Alibaba pioneered the 'pay with your face' feature to let you authenticate payments by taking a picture of yourself. This builds on the technology of the billion-dollar Chinese startup Face++ used by Alipay, a Chinese equivalent to PayPal. It even protects against fraudsters using a photo by requiring people to move during verification. Alipay itself is starting to rival PayPal and other payment options. Not only is it accepted by half a billion businesses in China, but it is being used by Chinese as they travel overseas. Alipay launched in Europe in 2016 and 60% of its users are already outside of mainland China.

Chinese e-commerce is growing the fastest in the third and fourth tier cities that lack the shopping opportunities of big cities like Beijing. Selling through social media sites is the norm in China and the Chinese prefer to use one, large site than shop with smaller sites. The preference is so ingrained that Amazon chose to partner with Baidu rather than try to move into China under its own name. China is far ahead of the United States in using facial recognition for payments and integrated ecosystems built into sites like WeChat to support e-commerce. China's large population at home and abroad is likely to make IT companies like Alipay a global brand.

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