Mark Tanner
17 November 2021 0 Comments

This week’s news and trends in China:

Consumers,  Chinese Consumers

Your Roadmap to Cracking the China Market: The right logistics solution is paramount to any brand’s success in the ecommerce business in China. The 7-day return policy for non-perishable food goods bought online that was implemented in 2016 sees an estimated 20% of orders returned. This makes the logistics effort even more complex.

Free Trade Zones Made Up Nearly 17% of China’s Nine-Month Foreign Trade: The FTZs account for 0.4% of China’s land area and made up almost 17% of foreign trade and more than 18% of the country’s use of foreign capital between January and September.

Only 13% of Young Consumers in China Are Not in Debt: By the end of 2021, consumers under the age of 35 are expected to contribute 65% to the overall consumption growth in China. Buying now and paying later has become a way of life for young consumers. Nearly half of all young consumers who are in debt were born in the 1990s, while 31.5% of young consumers in debt were born in the 1980s. Reportedly, only 13.4% of the 175 million people born in the 1990s are not currently in debt. Health & beauty products and entertainment are popular ways of spending this borrowed money, with fast-growing categories including time-saving and labour-saving products and services such as shoe washing machines, breakfast makers, and egg boilers. Pets are also popular, with 1990s-born accounting for half of all pet owners in China.

Foreign Firms to Expand in China Despite Challenges, HSBC Says: 97% of 2,174 foreign companies surveyed by HSBC said they intend to keep investing in China, mainly due to the country’s sizeable market, expectations of continued economic growth and well-developed supply chains. Six in 10 of the firms are either currently expanding their supply chains in China or plan to do so over the next year.

Online: Digital China

Alibaba, JD Smash Singles Day Record with $139 billion of Sales and Focus on ‘Social Responsibility’: The record sales came despite worries about the strength of the Chinese consumer and the impact of Beijing’s crackdown on technology companies.

Top Selling Brands for Singles’ Day 2021: Foreign brands topped many categories on Alibaba and JD for Singles’ Day.

Alibaba, Meituan Units Summoned by Chinese Regulator for ‘Unfair Competition’ During Singles’ Day Festival: A local market watchdog summoned 16 ecommerce platform operators – including a branch under Alibaba Group Holding, Meituan’s group-buying business, and Vipshop – to warn them against “unfair competition” activities and other business malpractice including selling fake products, false advertising and poor after-sales services.

What can Europe Learn from China’s Live Ecommerce Boom? Virtually all big European brands with a strong Chinese presence have run at least one livestreaming show. Italian pharmaceutical skincare brand Rilastil gets 35% of its total China sales from livestreaming. A survey this year found 70% of 14,460 consumers in the UK, Spain, France, and Poland were interested in livestreaming, but livestreamers in Europe needs to take cultural differences with China into account.

Premium Food & Beverage

Chinese Consumers are Among World’s Fastest Changing Consumers: Mondelez China has adapted to the big trend of more health-conscious consumers, particularly post-covid. The vast majority of their China portfolio is available in single serve packs, meaning they are more hygienic, but also control calorie intake. They recently introduced Oreo zero-sugar in China as the first market around the world. It is also adapting to increasing numbers of consumers attracted to high quality branded products, including in lower tier cities.

US, Japan Join Nations Urging Delay to China Food Import Rules: Diplomats from Australia, Canada, the European Union, Switzerland, the UK, US and Japan are urging Chinese customs officials to pause the rollout of regulations on food imports, arguing the measures risk further disrupting global supply chains. Producers of goods that belong to 18 specific categories would require recommendations by authorities in their home countries, while others must self-register via an online platform that launched this month. Foreign food manufacturers and governments remain unsure of how to meet the requirements.

Overall Beauty

The High-Tech Cosmetics Set to Tempt Chinese Consumers: Global beauty firms are turning to high-tech offerings — from lipstick printers to lab-made human enzymes — to gain an edge in the increasingly competitive Chinese market.

Making Waves: Challenger Beauty Brands Disrupt China’s $9 Billion Haircare Market: Brands are trying to revitalize the mature haircare segment globally by introducing skincare rituals to haircare, such as masks and oils, a trend that experts call “skinification”. Beauty brands are also producing higher-grade shampoos and conditioners, as well as specially designed at-home hair regimens. More research dollars have poured into heightening the sensory experience of haircare, amping up aromas and creamy textures. Scalp care-related search terms in the marketplace spiked 12 times this year versus 2020 on Tmall. Sales of imported scalp care products jumped by 340% year-on-year and haircare essential oil ampoule sales increased by 170%.

Schooling and Education

China to Issue Licenses for Education Companies to Resume After-School Tutoring: China’s government plans to issue more than a dozen licenses that would allow companies to offer after-school tutoring. Under the new licensing arrangement, tutoring companies will be required to operate after-school tutoring on a nonprofit basis while being allowed to make a profit on other businesses, such as tutoring adults for professional exams. Most of the new restrictions apply to compulsory education, which in China extends through grade nine, leaving tutoring for older high-school students in a gray area.

Video & Entertainment

Inside the Jaw-Clenching World of Cricket Fighting in China: Autumn marks cricket fighting season in China, a sport believed to date back more than a millennium. In recent years, it’s gained popularity with new generations. Some of the games go on covertly in small backrooms. Others, such as annual face-offs held in the southern metropolis of Hangzhou or the port city of Tianjin, are splashy, televised affairs.

Chinese sport Sport

NBA Woos Chinese Sports Fans With Immersive ‘DreamCourts’ Project: The NBA is scheduled to open one of its first multipurpose “experience centres” in Suzhou in 2022. It will be the first of six centres across China featuring themed dining, retail services, and interactive games.