Here are three reasons your brand should be excited about China this year!
1. China is opening up!
8th Jan 2023 will be a date that 1.4bn people will remember forever. It is the day that after almost 3 years, China has removed all Covid-19 restrictions. This should give western brands plenty to celebrate as they look for growth outside of stagnant home markets.
The Chinese consumer space has already responded positively to the changes in the country’s covid policies. Shopping malls are booming, international travel is resuming, and shoppers are feeling more and more confident.
This translates into more spending on luxury items (LVMH share price jumped on the opening up announcement) and more spending on foreign goods in general.
2. The shopping power of Gen Z (post 90s generation) is increasing.
They account for around 15% of China’s population but have an oversized influence on consumption trends. They already account for close to two-thirds of consumers on Tmall Global in 2022 and over 17% on Tmall Luxury Pavilion.
In fact, last year was the first time that luxury purchases by consumers born after 1995 surpassed those born after 1985. They’re looking for niche, emerging brands with strong values and experiential storytelling to help them stand out from the crowd.
3. China’s ecommerce space continues to evolve.
Traditional advertising or even influencer-based online retail is already proving out of date, social commerce is continuing to rise!
The last two years have seen the dominance of older players like Tmall or JD challenged by newer platforms and strategies that emphasise content and authenticity. Social commerce has become the standard way of selling in China and it is the only way to cut through and make noise as a new brand.
This year, brands that never thought China was possible to enter, now have the opportunity to build profitable businesses in a market whose growth continues to be the fastest in the world, thanks to social commerce solutions like ours.
Click here to see if your brand is right for China.
