HOSTED on Zoom, on June 24, 2021
DURATION: 35 minutes
Who are your next clients ? What are the upcoming key sectors ?
Covid-19 have brought a lot of uncertainty, businesses do not know how to recover and on which segment should they focus.
Oversea Chinese Power
Nowadays, typical mainland Chinese tourists are not coming to western countries any time soon, so how businesses can reach Chinese customers, especially if they do not have the mean to invest directly in mainland Chinese clients ?
Brands really have to take into consideration oversea Chinese. They are more than a million living in France, and even more if we add the ones from others western countries. This big community have undergone the Covid-19 and they cannot wait to go back to "normal" consumption habits. 71% of oversea Chinese in France came for "the life style", and among them 35% like to buy beauty & cosmetics products and 34% others ones, luxury products. During Covid, Chinese consumers have kept being connected on social networks, livestream increased their purchases by 32% and KOLs by 70%.
It is mandatory to understand that oversea Chinese cannot be compared to Mainland Chinese. Once they arrive to western countries, they start using typical western app, and their purchasing pattern became a routine. On the opposite, Mainland Chinese tourist, usually came for a "one-shot" products, they only use Chinese application, and once they are done with tourism they go back home. Only few social networks such as, Red, WeChat, Weibo, Ecentime, Alipay ... remain use by both Chinese consumers, and keep that bridge between both community into one.
Upcoming tendencies for European brands
Luxury
During ECENTIME Q1 2021, Beauty sectors was the top first selling category on our application, followed by luxury category. Therefore, by being the world biggest luxury goods consumers, Chinese people are definitely the top 1 client for big brands. Gucci, and Richemont have recently started partnership with Alibaba in order facilitate their sales among Chinese community. Furthermore, according to True-Luxury survey, more than 35% of their users said that they have an increased interest for luxury brands which they associate to social identity.
Beauty & Cosmetics
During Covid-19 cosmetics popularity have intensify and new segments have appeared. Before, make-up used to be top segment for Beauty & Cosmetics products. Now, skincare products, lotions, creams are taking over and their consumption keep increasing among the Chinese community. Estée Lauder understood it, the brand increased its sales by 31% during Q1 2021 just by focusing on skincare products among the Chinese community.
Home
By spending time at home Chinese consumers have developed new habits. They start paying more attention to their health, they life hygiene and their environment. 21% of Chinese consumers on our platform say that they are planning to spend more money on eco-friendly products. Products such as, home scent, comfortable clothes, gym clothes and accessories are currently recording a high sale volume among the Chinese community.
Travel
40% of our oversea users said that they cannot wait to go travel to western countries. The Economist, also confirmed that during Q3 2021, Chinese consumers are planning to mainly visit European countries. Especially France and Italy which are the top place for luxury tourism.
Culture
Finally, 29% of our users are looking forwards to go to entertainment places, such as museum, parcs, etc. Cultural tourism represent a good part of oversea Chinese activity while abroad. Also, accordingly to True-Luxury data, 39% of its users have increased its downloads of e-learning. Chinese want to learn new knowledge, culture and languages.
Rethink your strategies
If you want to reach Chinese customers you need to start with the ones who are the closer to you. Oversea Chinese consumers represent a really big market, and they are willing to spend a good amount of money to experience typical and high-quality products. In 2020, 80% of Chinese luxury consumption were stimulated by brands ambassadors, KOLs/KOCs. Chinese oversea adopt a "routine" purchasing method, they buy, they share and they will buy again if they like it. Finally, understand that not every online platforms will be successful for your business. Social networks (Red, WeChat, DouYin, Ecentime App, Weibon, etc) are made to spread brand awareness. Smaller to medium businesses, as well as niches, are highly recommended to start with "online recognition" before going to market place. On the opposite, market place are made for already well-known brand, which are welling to promote a products without bringing brand awareness. Yet, social networks and market place are virtuous circles among Chinese consumers. The more they hear from you, the more they will want to get your products.