Instagram is obstructed in China. It was hindered discontinuously beginning in 2014 and now it is totally controlled. Endeavoring to get to the application from inside territory China will bring about a blunder message saying the feed can’t be invigorated. Instagram is likewise missing from Chinese application stores.
Cross-line internet business (CBEC) has been utilized to supply Chinese shoppers for a long time. However, it has been genuinely unregulated from numerous angles. On the main January 2019, the Chinese government provided, refreshed, and forced new principles on cross-line exchange:
China’s food and refreshment utilization has developed drastically in the course of recent years, and progressively changed from an industry-headed to a utilization-driven market.
Taoabao active client o reached 711 million, an increase of 18 million from the 12-month period ended in 2019.
E-commerce in China and taobao
Mobile Taobao buyers on its China retail marketplaces reached 824 million end of 2019, an increase of 39 million in 2019.
The industry of online sales increased by 120% between 2003 and 2012, that is to say, from the year of creation of the most trusted online sales not only in China but also in the world Taobao ("find treasure" in Chinese).
Taobao
Taobao is owned by Alibaba Group, the undisputed giant of the Chinese e-commerce. The main objective is to promote Taobao system complete e-commerce to ensure a good experience for its users.
And to do that, Taobao meets the expectations and needs of Chinese consumers, unlike the giant eBay. The implementation of that strategy was to transpose the American system for the Chinese market, which cost him a dismal failure.
Expectations of Chinese consumers of e-commerce are very different from those of Westerners.
For the Chinese, for example, trust between buyer and seller is very important. That is why they can communicate via "Aliwangwang" chat Alibaba, Taobao and offers mostly fixed price (which can be traded via chat) and only a few auctions (unlike eBay). The auctions are an individualistic way to buy or sell, making it an inappropriate method in Chinese culture, collectivist basis.
Chinese online consumers !
In addition, customers have the option to pay on delivery, cash and after checking the quality of the goods, as they would have done in a traditional shop in China. This payment method is also suitable for Chinese culture, in which the payment by cash is the norm. For example, the Chinese population of Paris is the target of many flights snatching. It is indeed a cultural trait for the Chinese to carry a lot of cash on them.
The design of the interface'' Taobao is also suitable for Chinese consumers. Site colors are red and orange, colors that symbolize the festivities and prosperity in Chinese culture. This is a very positive message to consumers, and is important to consider in a marketing strategy in China.
In general, the symbolism is very important in the behavior of Chinese consumers, unlike the Western consumer, explain the founder of this Agency !
Finally, Taobao offers free registration and a very good customer service, operational 24 hours 24.
Its perfect adaptation to the Chinese market explains its huge success.
Today, Taobao is:
80% of C2C market online
500 million users
60 million regular visitors per day
800 million products
Almost $ 100 billion in sales
One of the 20 most visited sites in the world. The eleventh in April 2013, according to the ranking site Alexa Internet traffic.
Taobao !
Consumes on Taobao?
taobao's customers
The most important category of Taobao users is that of 25-35 years. They look more and more to buy high-tech products and spend a lot of time comparing prices on the internet.
Taobao: an opportunity.
Taobao is a very effective tool for small and medium-sized companies that want to enter the Chinese market
The investment is minimal: a company can create its online presence for free
Since it is the largest site for online sales in China, Taobao allows great visibility in the Chinese market for sale online
According to a study by the Institute Mckingsey, online sales will continue to grow in importance in China should represent $ 650 billion in 2020
Taobao can buy in small towns (a few million), which have neither good distribution networks, or a variety of products.
How to promote on Taobao
Brands use this opportunity to advertise products on this platform where about 80% Chinese buy their products Tmall provides opportunity for merchants to promote their products on Tmall official campaign platform Merchants through this platform have access to the transaction, sales management, tools, products release and shop decoration. Tmall rewards high satisfied stores with competitive sales from shopper based on the quality of product and delivery speed.
Tmall is an extension of Taobao. This site specializes in B2C online trade, and is also visible through the site Taobao.
Unlike Taobao has a reputation for everything that people want at the most attractive prices, Tmall offers branded products. The price is not the marketing argument Tmall. Rather consumer confidence in the products offered on the website and brand protection against counterfeiting.
Some consumers are not buying counterfeit items and are therefore trusted online stores on the site. So Tmall allows brands to control their image and reputation.
The opportunity on Tmall
Open a shop on Tmall is very interesting for several reasons:
Tmall represents 50% of B2C online today, then it was created in 2008
B2C e-commerce has increased by 130% between 2010 and 2012
Customers are protected from counterfeiting
Buyers will more easily on Tmall shops because they are confident
Chinese ecommerce shop 1
Chinese ecommerce shop 2
But opening a shop on Tmall remains a somewhat complicated investment for foreign companies. That is why opening a shop on this site is recommended for companies wishing to settle in the Chinese market over the long term.
In order to open an online store on Tmall must:
Solution !
Having its registered company in China
Having its registered brand in China
Pass an online exam organized by Tmall to check if the site rules are well understood
Submit official documents
Pay 160,000 RMB (about 3,000 USD) as security deposit.
Both sites online sales are intended for different budgets for companies that use their brand as a marketing argument and those that offer attractive prices for their products. Online sales in China is a growing market and a very interesting opportunity, it would be a shame not to take...
Discover top Tips of Chinese shopper, forget about Tmall Global, it is too expensieve and bet on this.
Problem of Tmall Global and SME
The creation of a Tmall Global store can be a problematic procedure to some extent for SME brands, without the agreement in itself to really obtain support for the use of a Tmall Global store. Before 2016, any brand that met a specific criteria was allowed to establish a store in Tmall and Tmall Global. However, since then it has become a "welcome in particular" store, and the obstruction to the section has increased fundamentally. In the event that your image is a level one brand in your home country, and so far it is prominent among Chinese tourists with many Taobao distributors who sell their items as "Daigou"U shopal , at that time the opportunity to obtain the back. is tall. Tmall Global will allow you to capture existing applications and develop in China. If not, it can be a long and unsafe procedure.
Domestic or Cross Border eCommerce?
For most brands, selling inside China through the domestic model is a definitive objective, yet it could be difficult to do so immediately as you would either need to locate a Chinese distributor or experience the entangled procedure of setting up a Chinese element, performing item testing, bringing into China, and so on.
The option in contrast to this would sell through Cross Border – along these lines you can get orders from Chinese shoppers, get paid in your neighborhood money while clients pay in RMB, and you can send your merchandise from your nation of origin or reinforced stockrooms in China, without setting up an element in China.
New China eCommerce Law
beginning 2019
Cross border trade in China has been developing quickly in the recent years. In the good ‘ol days, there were relatively few guidelines and confinements.
In 2006, China began to set up more clear cross border tax collection governs, and has since refreshed its laws and confinements with the most recent update powerful on first January, 2019. While the most recent eCommerce law impacts everybody from the stage administrators to the individual dealers in Taobao and WeChat, it has likewise given a few reports on cross border:
The primary round set up guidelines for the different gatherings associated with cross border exchange, including the stages, (for example, Tmall), venders and purchasers. One key guideline is to prohibit reselling the merchandise domestically once it has been purchased through cross border. What’s more, so as to track such cross border exchanges, there is clear necessities on giving the “Three Documents” to the traditions electronically for each exchange: the request information, installment information, and calculated information.
The breaking point for single cross border exchange has additionally expanded from RMB 2,000 to RMB 5,000, and the yearly exchange limit from RMB 20,000 to RMB 26,000. This adequately enables a more extensive scope of merchandise to be acknowledged under the cross border custom channel. For merchandise sold between RMB 5,000 and RMB 26,000, while they are permitted to be sold through cross border channels, full custom tax assessment, esteem included expense and customer duty would should be applied.
An extended whitelist for what items can be took into consideration Cross Border eCommerce, including shimmering wine, brew, heath care and wellness types of gear, and so forth.
Select the Right Channels for Cross Border eCommerce
Because of the wide news inclusion of Alibaba, a great many people have just known about Taobao and Tmall, and its cross border offering Tmall Global. Without a doubt, numerous abroad brands and retailers have set up “Lead Stores” and “Forte Stores” at Tmall Global. Selling through set up stages, for example, Tmall Global has made a few pieces of activities significantly simpler – This incorporates the set up apparatuses and occasions that have been demonstrated to draw clients’ consideration, the accessible enormous pool of group of spectators that the stage as of now has, cross border installment (through Alipay Global) and strategic foundation (through Cainiao Logistic) that are promptly accessible.
China has about 400 million generations, five times the 80 million people born between 1982 and 1998 (20 to 36 years old). China has more millennials than the millennials of the United States and Canada.
Millennials: China's new economic force
Millennials are more educated than previous generations, 25% of them holding a bachelor's degree or higher.Two-thirds of Chinese passport holders are millennia.More than 90% of them own smartphones and more than half of the luxury goods bought in China are bought by millennia.They are changing all sectors of the economy, from travel to education.The millennial generation is the main catalyst encouraging Chinese tourists to spend $ 115 billion on international travel in 2017, while those born after 1990 have increased international travel spending by 80% in 2018. In terms of education, one-third of foreign students in the United States are Chinese.Many people have to pay the full amount.
However, when the world talks about China, we tend to focus on the past: old stereotypes, old policies, ancient traditions, and older generations. In China, the younger generation is maturing and has begun to lead the country’s strong economic and political future. They have influence and often define every market they enter, affecting the lives of Americans and their compatriots. Whether you want to find a job at a local manufacturing facility, let your child go to college, plan to travel around the world, or sell soft drinks, cell phones or solar panels. we started young China in the next 50 years. A generation will have an impact on your personal and professional.
After graduating from Columbia University and living in China where I lived for four years, I discovered the four characteristics of this young generation to learn about the emerging youth of this country.
The old Chinese generation grew up behind the cultural wall
First of all, they are open. The old Chinese generation grew up behind the cultural wall. My friend Xiao Huan was born in Sichuan Province in 1990 - the same year as me. Her parents remember that in their childhood, the community had gathered in their neighbor's house because their 12-month calendar was trapped on the mud wall of their home. These 12 images - "European fields" - are the only views of the residents on the outside world. In most cases, the West has been reduced to a series of drum slogans that have been completely wiped out by the Communist Party and marched for the Cultural Revolution. "Beyond the UK, catch up with the United States!" They asked them.
91% of Chinese online users have a social media account
Chinese users are likely to buy products purchased by other social network users. In China, there are about 634 million Internet users and 91% of Chinese online users have a social media account, compared to the United States where about 67% of the online population counts on social media. About 500 people use mobile devices to access the Internet. Every day, Chinese Internet users spend an average of 46 minutes on social networks.
Social media platforms
The user follows an average of eight brands and more than 38% of Chinese Internet users make their choice based on the recommendations they find and read on social media platforms Sina Weibo marketing, WeChat marketing, etc. You have forgotten to Facebook and Twitter as key plates worldwide to market your products or services, unfortunately, in China they are stuck. When it comes to Chinese social media marketing, you need to use different tones to communicate with your Chinese audience on its own social media platforms, such as Weibo (Facebook and Twitter equivalent in China), including Sina Weibo, Tencent Qzone (equivalent Facebook and Twitter in China), Tencent QQ (instant messaging tools), Tencent Wechat (mobile communication application and private private network), Renren (Facebook equivalent in China) and Youku & Tudou (YouTube equivalent in China).
Social media has become essential in the Chinese lifestyle
Through this plaque-shape, brands have the opportunity to create original experiences for their consumers. Social media has become essential in the Chinese lifestyle. Consumers use platforms to find and share information and opinions about products and services. For companies in China, forms of social media platforms in China is an effective way to interact with consumers. Social networks are also useful for developing consumer research, product launches and crisis management.
Brands are better at promoting products in China than when they operate from outside with their website. This advantage gives consumers fast online access to products in Mainland China. The reason is that search engines make the brand and visibility more accurate to see the products of the websites located in China, it is better than to host a server in another place. The key to promoting your brand is to host your website in China and use the search engines to make your products attractive to the target audience. In web marketing, infrastructure design, construction, hosting and operations, it must match the purpose of product marketing, especially in China. This is because the quality of content is an integral part of the evaluation of Chinese products.
Web Agency in China
The purpose of a brand hosting a website in China must be defined in terms of brand name, logo, content and marketing campaign choice. Most of the online shops in China are on small Taobao shops, stand alone and other variants of online shops. These online shops work with quality branding because their SEO keyword rankings are provided by Chinese search engines like Tmall and Taobao, Baidu, Google China, Sogou, Soso and more. These brands have quality product promotions because Chinese internet users do most of their browsing on these search engines when selecting products. Brand activity in China will be encouraged if the website is designed, built and hosted to use these Chinese search engines for visibility.
The websites hosted in China
Chinese Internet users are looking for quality and well-organized content to attract brands. The frequency of their daily online browsing is about 8 hours on average, they browse for good content and a great user experience. The websites hosted in China have the advantage of promoting products with good content from bloggers, quality Chinese language translators and content writers. Most of the data used in website marketing in China is translated into their creative languages in line with marketing strategies that can help promote the image.
Chinese individuals do not eat a lot of meat, but they have used poultry and poultry in their delicacies. The Chinese follows the viewpoint of yin and, which means that they like to have balance in the foodstuffs that they eat. It is for this reason that their foods have different designs and colors.
For the first time this year, we are studying the consumption of food and drinks. source: Cooklover
Chinese Consuming Trends
Chinese consumers in Tier 1 and 2 cities to track their food and beverage purchases for their homes using smartphones.
Combining with other data sources, we conducted a thorough analysis of the overall dynamics of food and drink channels.
The results obtained helped to understand the dimensions of a significant difference: more and more Chinese substitutes for out-of-home consumption (consumption and meals in restaurants) for home consumption. This change was made in 2014, with the treatment of home care and care.
When we presented the two-speed preview to our readers last year, we showed, for example, comment growing as we struggle. Merchandise and online purchases were made by potential buyers. National brands thrived on average, while many multinational brands dropped out.
This two-tiered vision has hit businesses and many have begun to use a new approach to their strategy by revisiting their portfolios. They are growing rapidly, but they are growing rapidly in fast-paced arenas.
This year, we found that two-speed growth continues, and that growth in FMCG value is slowed in 2016 by all sectors surveyed, reaching its lowest level in five years. This is a combination of near-zero growth and decelerating price growth, which is being slowed by growth in the value of consumer goods.
the Vodka case study
FMCG in China
Let's look at the product categories first. The growth in FMCG sales value for domestic consumption was 3.0% in 2016; However, growth rates for food and beverage categories are very different for home care and personal care. To the point where food has increased by 0.5% and drinks by 2.0%, while personal care and home care have increased by 10.5% and 3.5%, which represents an improvement by report to 2015. source
Penetration rates in categories are declining or declining2. The average household penetration in the 26 categories is 81%, down from 83% last year. Among the reasons:
Distribution in China, Challenges for International Brand
Most categories have reached the distribution they need in urban China. The expansion of the mass is almost on and face the challenge of increasing repeat sales and premium to grow.
Categories of personal care products and high quality storage units (SKUs) in many categories continue to experience strong value growth as Chinese buyers who can afford it demonstrate that they are willing to pay for high quality products.
In the coming years, companies that will do the best job simultaneously at two speeds will be able to outperform their competitors. This is already becoming evident in areas such as instant noodles, a category that seemed to have an unattractive future. But major brands such as Master Kong and Uni-President can turn the tide: they are now targeting white-collar workers with new high-end product lines, while offsetting declining volumes in their traditional blue-collar businesses by raising the prices of mass products. . We expect to see more moves like these - this will be the way to grow and flourish for brands in China.
This year, we observed a continuous geographic trend. The provinces of south-west and central China have maintained their status as the main driver of growth in consumer goods sales. This is the result of an increase in the number of households, fueled in part by the urbanization of the inland provinces as many industries leave the coastal regions.
We also noted a continuation of the two-speed model in channel growth. The most dramatic situation:
hypermarkets fell by 2%
and supermarkets or mini-markets decelerated to 2%.
In comparison, convenience stores grew by more than 7%.
The e-commerce chain continues to skyrocket, recording growth of more than 52% in value.
Online now accounts for 7% of all consumer goods sales - it has doubled its share of the consumer goods market over the past two years.
Online is even more popular in tier 1 cities, but lower-tier cities are catching up quickly.
And the three category categories we identified last year, based on their digital penetration trajectory since 2012,
Health Care in China
Skin care, shampoos, diapers and cookies have high online penetration and a strong upward trend.
Beverages, fabric softener and chewing gum have low online penetration, reflecting features that limit their online potential.
An intermediate group of categories, covering most personal care, home care and packaged foods, is actively encouraged for online growth by major brands and e-commerce retailers.
Finally, we still see the two-speed effect in the ongoing battle between foreign and local brands. In 2016, local businesses maintained their ability to gain share from foreign competitors, measured globally. In fact, foreign brands have captured shares in only 4 of the 26 categories we studied and lost in 18 (while 4 categories have not changed, or have barely changed). Local businesses grew by 8.4%, while foreign brands grew by only 1.5%.
How to Enter to the Chinese Market ?
In general, domestic players earn personal care; When foreign companies gain shares, it is often in the food and beverage categories.
A host of well-known reasons suggest why Chinese companies do so well at home. These include: the entrepreneurial governance of local players and Founder's French Spirit, their knowledge of local taste and their ability to make quick decisions and execute decisions quickly, including those that help them innovate or seize digital opportunities.
Branding is the Key
Products with STRONG BRANDING perceived as healthy or hygienic have achieved high and increasing penetration. They make yogurt, shampoo, handkerchief, packaged water and sofas. On the other hand, categories perceived as less healthy, such as confectionery (chocolate, sweets, chewing gum) and instant noodles, all lost ground.
Healthcare product categories and high quality storage categories (SKUs) in many categories can register strong value growth as Chinese buyers who may be allowed to pay higher quality products.
In the coming years, companies that do the best two-speed job will be at the center for their competitors. This becomes evident in noodles, a category that will have an unattractive future. Major brands such as Master Kong and Uni-President can reverse the trend: they are interesting with white-collar workers with news of high-end products, while offsetting the decline in volumes among their traditional products. . We will see more movements like these - it will be the way to grow and prosper for China.
This year, we observed a continuous geographic trend. The southwestern provinces and central China have their status as the main engine of growth for consumer goods sales. This is the result of an increase in the number of households, fueled by the urbanization of the inner provinces.
We also noted a continuation of the two-speed model in channel growth. The more dramatic situation: hypermarkets fell by 2% and supermarkets or mini-markets decelerated to 2%. In comparison, convenience stores are increased by more than 7%. The e-commerce chain continues to grow, growing by more than 52% in value.
Social media and e-commerce have converged on smartphones in China, thanks to an innovative application. Since its launch in 2011, WeChat has grown from a messaging client to WhatsApp true style in a single window for managing lifestyle. Without leaving the application, loyal users of WeChat - whose number is fast approaching one billion - you can book an appointment with your doctor, ask for a taxi, and buy products directly from manufacturers. At least one of every five users WeChat has linked to your debit or credit, a potential bonanza of cash of which Mark Zuckerberg, can only dream of.
Wechat a Content Social Networks !
Like most professionals in the continent, his mother used instead WeChat email to conduct much of their business. The application offers everything from video calls and group chats instant news updates and easy sharing of large multimedia files. It has a service oriented similar to slack US business chat. Yu Hui's mother also uses your smartphone camera to scan QR codes WeChat people (Quick Response) who knows much more often these days than swapping business cards. Yu Hui's father uses the application to do online shopping, to pay for goods in physical stores, settle utility bills and tabs dinner with friends split, with only a few taps. He can easily book and pay for taxis, ball mass deliveries, theater tickets, hospital appointments and holidays abroad, all without having to leave the WeChat universe.
source http://seoagencychina.com/wechat-social-media-agency-in-china-shanghai/
As an equity investor puts US venture, WeChat is there "at each point of their daily contact with the world, from morning till night." This state is the center of all Internet activity, and as a platform through which users find their way to other services, which inspires Silicon Valley companies, including Facebook, to closely monitor WeChat. They are entitled to cast an envious eye. People who divide their time between China and the West complain that WeChat leaving behind is like stepping back in time.
Among its services, is perhaps their promise of a cashless economy, a recurring dream of the Internet age, which impresses viewers more. Thanks to WeChat, Chinese consumers can navigate their day without spending once banknotes or pulling plastic. It is the best example of how China is shaping the future of mobile Internet to consumers around the world.
source : http://www.economist.com/news/business/21703428-chinas-wechat-shows-way-social-medias-future-wechats-world
This is logical, for China manufactures and put to good use more smartphones than any other country. More Chinese access the Internet through their mobile phones than they do in the United States, Brazil and Indonesia combined. Many jumped from the pre-web era directly to the mobile Internet, bypassing the entire personal computer. About half of all sales over the Internet in China takes place through mobile phones, compared to about one third of total sales in America. In other words, conditions were all there for WeChat to take flight: new technologies, business models built around mobile phones, and above all, customers eager to experience.
It's just a matter of time before this functionality, or something, is the norm worldwide. Now it's time for brands to begin to prepare for a future in which social media will not only be a place in the market, but also an important market in itself. Our recent work, "The use and value of information on the social network in the selective sale" describes how, unlike the current paradigm of e-commerce, selling social media will prosper no transparency and accessibility, but in strategic exclusivity.
selective sale : it works on Wechat
the media, most avid users include those who get pleasure from the envy of their peers. Facebook, Instagram and others offer a myriad of ways to show off, flaunting the latest designer handbag social concern advertising through a charitable donation announced publicly.
That's why luxury companies like LVMH have seen a huge increase in the use of social media among buyers of exclusive products, limited edition, especially in the key growth markets of India and China. Naturally, LVMH has begun using social media to identify and market to customers who likes one changing her friends. Theoretically, this select group of customers - if they could be identified - would jump at the opportunity to buy a product designed just for them. So far, however, efforts by LVMH in what we call "selective sale" have been hampered by the disordered information gathering and the huge volume of data available.
The seamless integration of electronic media and social commerce represented by WeChat could be the solution. Some companies are already beginning to exploit the possibilities - for example, Tiffany & Co. uses his official account WeChat to refine customer segmentation. Hitting the bull's-eye will depend on the ability of a brand to identify which customers, for all of your social media, are the objectives of greater value to the selective sale. That is where our research.
read also Why Chinese prefer to buy online
Knowing your customers
In our study, we used mathematical models to reproduce the typical behavior of social media followers who like to show off. We also take into account the fact that companies differ in how much they know about their customers on social networks. Some know nothing or almost nothing. But there are two types of information that are useful: the degree of connection (ie, how many friends have each client) and the degree to which each client participates in a consumerist superiority (researchers call this "visibility"). totally uninformed companies obviously can not participate in any segmentation; Companies that have one or both types of information clients can use all available data to target customer cure.
Try different combinations produced a couple of interesting general principles. First, the most popular guests were not the high value of the majority. Fully informed companies did better when targeting customers with a high level of visibility and an intermediate number of followers: high enough for purchasing touch off the effect desired envy, but not so high as to reduce the novelty of product - and, by extension, its value in the game of competitive consumption - too.
Second, not all customer information is the same. It was found that knowing how many friends have every customer is much more valuable than knowing his propensity to show social media. Both types of information are better than no information, but information visibility add any value to companies who already knew the extent of social networking connections of its customers. In addition, information visibility value added amounted to between two and six percent gains in profits, while connection information presented increased profits ranging from five to 30 percent.
What Chinese customers want
The difference in value between the two types of information highlights another general principle of social means of collecting information. Information is always less valuable when describing aspects of customer behavior that align directly with business goals. In this case, the customers' own actions can compensate for lack of knowledge - the most prolific conceited are not shy about showing you what they are. They happily eligible for a program of selective sales, assuming the marketing campaign were strong in most other respects. In fact, the company can design appropriate systems that have self-selection in the relevant segments of customers.
Privacy concerns
The use of a collection process more demanding information, rather than a data dump, helps companies avoid conflict with the privacy issues that are likely to continue increasing as e-commerce and social networks They are become more intertwined. The advent of WeChat announces the transformation of social networks in digital main streets, where products can be found and displayed in an uninterrupted sequence of clicks. Looking ahead, brands will have to cultivate a neighborhood intimacy and trust with your customer base. That means that e-commerce will become more dependent on tactics adapted as selective selling, and less on off-the-rack approach.
Wal-Mart Stores Inc. is changing strategies in China, to reach an agreement to forge an alliance with one of the biggest e-commerce players in the country rather than continue trying to enter the fast-growing market, but competition itself same.
Wal-Mart in China
Wal-Mart said Monday it will sell its website Yihaodian to JD.com Inc., the second largest online retailer in China, after the US Alibaba Group Holding Ltd. Wal-Mart will receive a 5% stake in JD.com , valued at approximately $ 1.5 billion at recent prices, and access to the network and delivering JD.com buyers.
JD.com American Depository shares rose 4.6% to $ 21.06 on the Nasdaq Stock Market amid the news, which was previously reported by The Wall Street Journal. Shares of Wal-Mart rose slightly to $ 71.10 on the New York Stock Exchange.
Chinese retail landscape has become fierce as the economy slows and consumer buying behavior moves online and for purchases of mobile phones much faster than in the United States and Alibaba JD.com are fighting for customers , promising delivery in less than an hour in some cities and pushing in rural villages.
Wal-Mart has struggled to expand in the country, although it receives about a third of its US $ 482.1 million in annual sales outside the US The chain opened its first store in China in 1996, but only has about 430 there today, or one tenth more than in the US traffic Chinese foot Wal-Mart has fallen for nine consecutive quarters, although spending per trip is increasing.
Yihaodian
The retailer first invested in Yihaodian in 2012 and took full control of the company last year. The website has built a niche in grocery sales, but represents only 1.5% of the market of electronic commerce retail China, according to consultancy iResearch. JD.com and Alibaba together command about 80% of the market.
"We have seen that high quality US retailers are going to China and not be so successful," said Charlie O'Shea, retail analyst at Moody lead. Union with JD.com "gives Wal-Mart a recess in China, it will be difficult to do it on your own," he said.
The sale allows Wal-Mart to increase rapidly to online sales nationwide in China, said Dan Toporek, a spokesman. Yihaodian is strong in southern and eastern China, he said, but JD.com "greatly expands our reach to a much broader set of customers in China and also provides a physical network for delivery."
As part of the agreement, Wal-Mart is giving up its right to initiate a new Chinese website, but can still run your applications and local websites Club of Wal-Mart and SAM'S, according to financial documents. The company expects the transaction will increase the benefit by a range of 16 cents to 19 cents per share in the current quarter.
Wal-Mart said in July last year that it had taken full control of Yihaodian of its minority partner, paying $ 760 million for the 49% stake it did not own. Wal-Mart executives have said they want to move faster to grab a market of online shopping and growing Chinese mobile larger piece, slowing the growth of its store expansion in the country.
JD in China
JD.com, such as Wal-Mart, has focused on direct sales to consumers. It has sought to expand its offerings as it competes with the largest Alibaba, which operates the consumer website Taobao consumer and merchant-consumer market-Tmall. Unlike Alibaba, JD.com built largely out of their own logistics network, including dozens of stores and tens of thousands of workers delivery.
JD.com has been eroding the market share of Alibaba, and revenue growth has exceeded Alibaba over the past seven quarters. Still, its market share in selling products online to consumers is about 23%, compared with 58% of TMALL, according to consultancy iResearch.
Competition has intensified in the niche grocery Yihaodian as local retailers in China have gone online and many new companies have entered the field of selling things as diverse as imported avocados and dishwashing detergent. JD.com The agreement will help expand its selection of products imported using the supply chain Wal-Mart, Toporek, spokesman for Wal-Mart said.
JD.com has strengthened its food supply, for example, through its investment in FruitDay, a retail Chinese products online, and is expanding imports, including signing agreements with Australian companies milk and meat producers and US vegetables.
Morgan Stanley advised Wal-Mart in the last agreement, while JD.com did not have a financial advisor.
We found that consumers are generally more selective in their spending. They allocate more of their income on services and lifestyle of the half-plane more experiments to spend more on leisure and entertainment (50 percent increase in revenue at the box office last year is just an indicator of this tendency). Meanwhile, spending on food and beverages for domestic consumption is stagnant or even in decline.
Chinese consumers are increasingly trading from mass products to high-end products: we found that 50 percent are now seeking the best and most expensive offering, a significant increase over previous years
High End consumption in China !
. It is therefore not surprising that the growth of high-end segment is faster than the mass segment and value, and foreign brands still hold a leading position in this high-end market. Moreover, an increasing proportion of Chinese consumers focus on a few brands, and some are more faithful to the simple marks. The number of consumers willing to switch to a brand outside of their "short list" fell sharply. In clothing, for example, the number of consumers willing to consider a brand they had not before fallen about 40 percent in 2012 to just under 30 percent in 2015.
Be part of the closed set of the few brands that consumers consider or even a brand that consumers prefer, is increasingly difficult. Fewer consumers are open to new brands and promotions become less effective to encourage consumers to consider.
A few notable exceptions, such as the increasing share of premium-smartphone market Huawei, Chinese brands have not gained much traction in many high-end segments, such as skin care, cars, sports and fashion. This contrasts sharply with the mass market segment, where local brands are gaining market share among foreign owners by offering a much stronger proposition of the product.
Chinese users often have ecommerce platforms related to their social networks and share their regular shopping, online word of mouth is probably the most powerful tool available to those in China.
634 million internet users in China, over twice the population of the US
Keep in mind that the Chinese are particularly influenced by those of their immediate social circle, they are wary of more traditional media of the State and are turning to social networks as their primary source of information. What users post and share about including the influence of Chinese users. The management and coordination of effective digital campaign on these platforms is vital. If a brand is not seen here, it is virtually invisible in China. source
Top Tips for Western brands looking to market themselves on social networks in China.
Content is king. Create interesting, shareable content in Mandarin that will appeal to Chinese consumers. Often the content that goes viral is humorous and silly in China.
Be active on social media. Really engage with consumers directly, people enjoy direct communication.
Use the 'Key Opinion Leader "or KOL. These are famous people in China who have already gathered a large following around them, they often have thousands or even millions of followers and recruit them to post a favorable content about a brand can be incredibly effective.
Find specialized partners in China.
They will in-
Chinese social media landscape is perhaps the most unique and fascinating in the world. Social media in China is now a huge phenomenon particularly with the rise of "Weibo" (China's answer to Twitter) and Tencent 'WeChat'. The rise of social media as the dominant form of online communication is due to an Internet penetration rate of more, a little less than 50% of the Chinese population are now online. There is an astonishing 634 million Internet users in China, more than twice the population of the United States! It therefore comes as no surprise that social media has become a key target for marketers and businesses worldwide.
Social networking has evolved differently in the Middle Kingdom than in Western societies. Forget sites such as Facebook, Twitter or Youtube. In China, the market is dominated by local Chinese social media. Established networks that we have come to know in the West has not been able to successfully grow here because of the strict state censorship. The result is a unique ecosystem, Chinese specific social networks.
The Chinese are very active on social media and will often subscribe to a number of different networks. It goes without saying that all communication on these platforms must be translated into Mandarin, the standard of English spoken and written in China is still relatively low.
According to the China Post, Chinese Internet '' 'spend about 40% of their 25 hours / week on social networks. " More time on social networks results in greater exposure to content and produces a higher number of interactions. The result is a social networking landscape evolves and changes even faster.
WeChat - platformWeChat Chinese Social Media is currently the largest social networking player to consider. It started as a simple app for the smartphone whose main attraction was to send short voice messages and written before morphing into a social network platform and fully integrated part. It has over 500 million registered users and is increasingly popular in China and the rest of Asia. WeChat is more than a social network, it can be used as purse (when linked with the Chinese payment service alipay), has a QR code scanning function and an application used to order a taxi even private.
QR codes are much more popular in China than in the West, promotional content can be shared and disseminated via the QR codes with brands encouraging consumers to track their subscription accounts. Unique content and promotional offers can be provided as an incentive to follow a brand on WeChat. WeChat is typically a network more "closed" that users can see the interactions and messages from those they have connected with.
Weibo - Chinese NetworkWeibo Social Media also has over 500 million users, the site is closer to Twitter in that users can view individual messages, so it is a more open network for marketers and brands capitalize on.
Scotch whiskey brand 'Famous Grouse' is an example of an international brand operating on Weibo in China, there is a wealthier middle class here with more Chinese consumers are looking for reputable products abroad. Here is the account Weibo 'Famous Grouse', whiskey is considered a luxury brand with the choice of the image that reflects the upscale image.
President (parent company) of Edrington and Chief Executive Ian Good discussed how; "The consumer response has been excellent. We are now in an excellent position to increase sales and improve market share," according Just Drinks. The Chinese have traditionally not been drinking whiskey but engage in social networking campaigns expanded the consumer base brands on this platform. They have over 30,000 followers on Weibo. tastes and consumer expectations are changing.
A report last year from Alibaba said there are now 211 villages Taobao, against only 20 the previous year.
They are about 70,000 merchants on Taobao
and Alibaba is actively investing in the growth of these figures.
Alibaba, which estimates that the rural market will be worth 460 billion yuan (74 billion dollars) in 2016, is one of many companies trying to cash in. JD.com, another major e-commerce player in China, sent a team on a six -month tour of the country, showing how people buy products on its site.
Rural population of China is so large that increasing the number of e-commerce on a global scale as it comes online. According to a new report by the research firm eMarketer, the country already has more mainstream buyers of digital world: 407 600 000 inhabitants, followed by the USA with 171.8 million. In 2019, it is expected to add another 139 million, primarily less urbanized areas as internet access expands.
"In rural areas, where the income starts to catch up, it is they who are going online to buy everything, because they have no access," Haixia Wang, forecasting vice president for the firm Research eMarketer says Quartz. "There are no shopping malls, and if you want access to brands online could be the first choice."
All three are known as "Taobao villages," rural communities where at least 10% of the population makes a living by selling products online, mainly on Taobao.com, Alibaba market consumer to consumer opportunity. They part of a radical change happens in the Asia-Pacific region, driven by China in particular, where millions of new buyers and sellers in rural communities not linked in advance are brought online, which helps fuel a surge in e-commerce.
Wal-Mart, the largest retailer in the world, said the acquisition of the participation would help accelerate its e-commerce business in China and to stimulate coordination between physical stores and online. He did not disclose the price paid for the game, which was purchased from former executives Ping An and financial services group.
Asia head of Wal-Mart Scott Price told Reuters earlier this year that the online retail was important to help exploit the younger generations of China and that the firm would increasingly turn to weave his presence online and offline in the market.
Walmart enter into Chinese ecommerce Market
Wal-Mart, Carrefour SA of France and Tesco PLC of Britain have all seen sales growth slip in the last five years in China, losing market share to local rivals, according to the firm consumption analysis Kantar Worldpanel.
The US retailer also announced Thursday that company insider Wang Lu will take the reins of Yihaodian. CEO and president of the company e-commerce had ceased earlier this month "to pursue their next adventure."
Although they do not have the same level of wealth as their urban counterparts, buyers in the less developed areas of China spend almost as much on online purchases, and also spend a larger share of their disposable income, according to a 2013 report by the McKinsey research firm. Their main categories for online purchases include apparel, tea, cosmetics, and food, according to Wang, and online shopping is particularly popular when local products have no quality standards or highest security, as is often the case for makeup and baby products.
E-commerce in rural China still faces some major challenges, namely the infrastructure. In less developed areas, roads and bad conditions, it can be difficult for retailers to distribute and deliver packets, for example. And while rural Chinese are willing to spend online, they are still relatively poor, which limits their purchasing power and the resources they can invest to create businesses.
Although e-commerce itself can be part of the solution. Alibaba believes e-commerce has created 280,000 job opportunities in rural China in 2014, and last July, the government took 55 poor counties for 20 million yuan each. The money was to help them develop their e-commerce industries in order to reduce poverty. source
Chinese consumers mainly use the Internet to compare different offers including prices. They are constantly looking for bargains, reductions, bargains; the price is the most important criterion in their purchase decision. That is why online stores that allow quick and easy comparison of prices - such as Taobao platform - have become enormously popular in China. We must therefore accept to reduce prices and margins, less to propose a single supply over local competition.
Making the website visible on Chinese search engines
Having a site tailored to the customer and hosted in China or Hong Kong is not enough: we must also make the site visible on Chinese search engines, especially Baidu, the market leader. To display the site in the top search results of Baidu, to perform a website as visible - of Baiducampagne (SEO), which begins with the study of keywords on which position the site. Google SEO techniques are different from those used on Baidu; So we must first learn about the Chinese search engine algorithm.
Building Trust surfers
Chinese consumers are naturally wary because of the number of scams on which they can fall in the country: there indeed have frequent cases of stores that do not deliver good merchandise or cashing money without delivering. It is therefore important to treat the image as the site refers to control his reputation on the net and conceal any comments and negative ratings left by visitors about your company and its offer.
A little quote Guru ecommerce Chinese, Mr Jack Ma.
A payment method suitable for Chinese consumers
In China, online shoppers primarily uses three methods of payment: direct payment via credit card or payment by a third party, in particular via Alipay or 10Pay (Chinese do not use Paypal). Cash on delivery is also very common, especially for many home delivery sites for small amounts.
Chinese Promotion website
Once your site is Internet ready, you will make it known and to promote it on the web. For this you can use a paid search campaign (PPC), consisting of the purchase of paid links offered by Baidu. A Pay Per Click campaign will help attract visitors to the site. A communication and marketing campaign on Chinese social media can also be interesting. Among the most influential social networks in China include Sina Weibo, a microblogging platform similar to Twitter and WeChat, a mobile instant messaging application is all the rage in the country.
In 2014, the potential of the Chinese e-commerce is:
632 million Chinese Internet users with 527 million use their phones to stay connected almost all the time.
271 million Chinese e-shoppers
271 million e-shoppers in 2013
RMB 47.6 billion or 400 billion RMB spent online expected 1 trillion yuan (115 billion euros) in 2015.
The buying habits of Chinese online shoppers are e-increasingly stable demonstrating that this market is coming soon at maturity (iResearch).
Habits are more stable, more predictable. The forecasts are more reliable, digital marketing strategies are becoming more effective ... and consumers increasingly demanding. With an area such as this one, you definitely need to implement the right methods.
Payment Methods are different
We will initially address what is directly related to then move the website content delivery to your customers and finally the payment methods used in China.
Above all your website needs to be localized in China to enjoy a .cn domain name
To do this you must make a request to the CNNIC is an industry body Ministry and the Chinese government:
Once your request obtained and validated your site must always follow the rules below to have the ability to attract Chinese e-shoppers
With SEO on Baidu
At first glance arriving on the page, we see a clear design very pleasing to the eye, but with little information on prices. It is necessary to lower the drop-down menu to find the deals, series products.
Another important parameter, must be quality content that is to say:
Content with high added value giving information which the customer pays the most value, the price from the top of the list as we have just mentioned.
This content must be stated clearly and concisely. Indeed, as mentioned above Chinese e-shopper has a choice. So it will not waste his time include a description he deems unclear. So you need to Mandarin Chinese descriptions, going straight to the point, very concise.
To finish with the site itself a slogan prevails for your site E-commerce in China: "speed". Loading speed and comprehension speed to the customer.
Baidu SEO
Once your site complies with the criteria mentioned above, you need to get your site to be found by a user who seek products that are in your range of offers. To do this a single solution, the owner which is mainly in accordance with the criteria of Baidu in this field. Indeed, this giant of search engines is the first search engine market in China with about 80% market share.
Good Website , I say GOOD WEBSITE for Chinese
A good site allows you to capture the customer but has little visibility because your brand is primarily known in the eyes of the Chinese public. So you have to be found.
The goal here is to be well positioned on the right keywords, ideally be the first result displayed so that clients can fail to find you every time they make a search.
At a minimum, the goal is to be included on the first result page for that is that stops 85% of customers. In other words, someone whose site is on the second page loses 85% of potential visitors.
Practice good SEO campaign (or SEO, Search Engine Optimisation) increases traffic to your site by about 70%
L’objectif ici, est d’être bien positionné sur les bons mots-clés, dans l’idéal être le premier résultat affiché, pour que les clients ne puissent manquer de vous trouver à chaque fois qu’ils font une recherche. Au minimum, l’objectif est d’être inclus sur la première page de résultat car c’est là que s’arrêtent 85% des clients. En d’autres termes, quelqu’un dont le site est en seconde page perd 85% de visiteurs potentiels. En pratique une bonne campagne de référencement (ou SEO, Search Engine Optimisation) augmente le trafic vers votre site d’environ 70%
Ecommerce in China, to success you need to target femal shoppers
According to China in 2014 online shoppers Behavior Report issued by iResearch, over 30% of online shoppers made online shopping for more than 40 times in 2013, and over 60% of online shoppers spent more than $ 3000 yuan this year. Shoppers gradually form the habit of online shopping. Compared with male buyers, buyers spent more money shopping online more frequently, and they have become the main force in the Chinese market for online sales.
Female customers in China
Female customers are shopping online more often than male users.
According to iResearch, buyers with the frequency of online shopping 3-30 in 2013 accounted for over 50% and over 30% have purchased online for more than 40 times. The average frequency of purchase Taobao users reached 49 in 2013, according to statistics provided in the prospectus Alibaba SEC May 7, 2014. Overall, the frequency of online shopping was higher for women than men . In addition, among the buyers whose purchase frequency line exceeds 40 times, women held about 60%, and have become major users of China's online shopping.
Over 60% of online shoppers in China spent more than 3,000 yuan in total online purchases in 2013. Among them, buyers with a quantity of more than 20,000 Yuan for the accumulated consumption accounted for more than 10%. Among the buyers purchase amount in cumulative line of more than 3,000 Yuan, women take a relatively larger share. As women spend more than men overall. In addition, women with a cumulative trade amount of more than 10,000 Yuan represent 60% of all consumers.
Women Buyers
women Buyers prefer clothes online much more frequently than male online shoppers.
According to iResearch survey, except mobile phone recharge, the first three types of goods most frequently purchased by China women online buyers were 'clothing, shoes, hats, bags, and external goods "" Beauty and care personal goods "and" household "in 2013.Thereinto, the share of clothing, most popular female buyers online equipment was 13.3%, higher than the proportion of male consumers online .
beauty and personal care products in China
Moreover, beauty and personal care products are becoming one of the most popular among woman shopper in need of dress and care products. Comparatively, online shoppers are demanding more male in mobile telephony , lottery, computer and communication products that online shoppers female.
iReaserch analyzed the Chinese market of online shopping is gradually mature with the development of more than 10 years. Like all ambitious companies to promote the expansion of product categories, the concept of consumption online shopper is mature and online shopping habits are more stable, more buyers will purchase via the Internet. Buyers especially women, as the main force in online shopping, give a new impetus to the rapid development of China's online shopping market.
United States, China, Japan and South Korea are the four countries with the highest potential in terms of e-commerce market , according to Forrester Research.
China : the highest potential in terms of e-commerce market !
13.6 % of spending online world are in China, against 19.4 % in the United States. But the Middle Kingdom continues to grow : only one in five consumers buys online against more than half of Americans. And it is in the Chinese population, nearly four times larger than the U.S. population, lies the first potential growth in e-commerce market .
China Highest Potentiel
This leads Forrester Research to designate China as the country with the second potential e -commerce highest in the world after the United States , in his " Readiness Index : 2013 eCommerce Global Study" which analyzes a number of factors such that payment habits , logistics infrastructure , purchasing power , Internet penetration and the size of the e-commerce market. " Along with the growth of the Chinese population and its purchasing power , the demand for goods will grow and compete with the United States," the report says Forrester .
Japan Market
For its part, Japan weighs 7 % of total global online sales , making it the third largest market for e -commerce potential of the world , despite a population of 127.6 million inhabitants only. Forrester describes the Japanese consumers as relatively affluent and more fond of durable goods. While in the world , 53% of online sales are for non-food products, this proportion rises to 71 % in Japan. Another feature that enhances its potential e -commerce : consumers will hold an average of 6.2 credit cards each. A world record.
See most popular website in China here
USA ?
Behind the United States, China and Japan, South Korea ranks fourth e-commerce market with the greatest potential . The purchasing power there is certainly lower than in Japan , but the high number of credit cards and debit per capita suggests there also strong purchase intentions , says Forrester. UK wins for its part the fifth position.
Singles sales on Monday broke records of e -commerce and pushed China back in the spotlight .
When it comes to e -commerce , to set a date to focus on promotions is very fashionable . It was first Cyber- Monday , where traders have discovered that consumers who return to work from a weekend of Thanksgiving shopping held to actually lead to spend online . This figure rose to a larger purchase dates on the calendar. This year, the Adobe Digital Index expects Cyber Monday sales to reach U.S. $ 2.27 billion , compared to U.S. $ 1.5 billion last year.
1.5 billions sales in China!
Given the global reach of American giants of electronic commerce, it is not surprising that Cyber Monday has become a global event. Despite not celebrate Thanksgiving, online bargains and near Christmas Cyber Monday urged European and Latin American newspapers also . Some countries have tried to go it alone. " Mega Monday " in the UK is a week later than Cyber Monday , while Australia has launched days " Click- Frenzy" with varying success . But the last two years have seen China pork limelight thanks to the spectacular growth of "Singles -Day " on November 11 .
humble beginnings
Single day began among students in Nanjing looking for a date to celebrate celibacy and the regulation on those represented by four 11/11. In fact, it is difficult to see the initial appeal to buyers. Large commercial periods fall around China 's National Day on October 1st and the Chinese New Year in January and February . Accordingly represents a lull in November , unlike the pre-Christmas frenzy melee begins in Europe and the United States .
However, this also explains the eagerness with which retailers have sought to appropriate the date as their own. Alibaba , the largest online retailer of China began to market the day of Singles in 2009. Sales were initially modest , less than 10m dollars, but have grown rapidly . Last year , transactions of U.S. $ 3 billion was the largest single day of online shopping day of the year. This year, he has cemented this position with estimated Rmb35bn (U.S. $ 5.75bn ) sales.
A difficult market
E -commerce in China is growing rapidly. Earlier this year McKinsey reported that online sales grew at an annual compound growth rate (CAGR) of 120% in a decade. According to the Internet Network Information Center in China (CNNIC ) online sales last year rose 66 % to RmB1.3trn ( almost 200 billion U.S. $) . Growth slowed in 2013, but reached 35 % in the first nine months of the year, compared to the overall sales growth of less than 9% .
Online sales now accounts for 6-7 % of retail sales in China , highlighting the speed of convergence with Western markets. Even more striking is the role that smartphones and social media play . According to the CNNIC about 40% of online shoppers with a mobile navigation device while s -commerce is also receiving more attention in China than elsewhere.
Chinese e -commerce market is a tempting but difficult for foreign players to enter . Alibaba has a B2C market share of nearly 40 %. He is joined by 360buy and host of smaller operators who participate heavily on prices. eBay has learned this painful lesson , entering the market in 2004 and released two years later. Amazon showed stamina but just cut a 2% share . Majority stake in Yihaodian Walmart gave the company a relatively small building footprint , while eBay 's second attempt to enter the market is quiet , with the acquisition of Xiu.com as a springboard .
Despite ominous start foreign retailers are unlikely to give up easily on a market that shows little sign of slowing, despite greater caution in the retail market at large. Based on the levels of growth in the first nine months of 35% of Chinese online sales will reach $ 280 billion this year , passing the United States as the largest market for e -commerce in the world in the process . Beyond that the sky is the limit with McKinsey forecast that Chinese online sales could reach $ 650 billion by 2020
As China gears up to the Mid -Autumn Festival on the 19th Celebrate September , President Xi Jinping recent raid on the official spending on extravagant mooncakes makes international headlines .
The crackdown on the boxes of these traditional treats that can run from a few hundred dollars per box in the thousands, is part of the newly minted president overall strategy to curb corruption in the ranks to command government .
Although mooncakes as a harmless gift seems to be in China, they are largely seen as instruments of graft , part of a gift culture that lines the pockets of officials in return for favors . Boxes of mooncakes are often re - gifted, or returned to a business in exchange for cash, while high-end mooncake boxes , the magnificent approach . Last year , the state-run Xinhua news agency on buying a house in the popular Wangfujing shopping area selling crates of solid gold mooncakes for 42.900 yen each , a price that translates to 429 grams per yen.
What does the raid for the mooncake market mean?
That depends on which end of the market is under review. " The average person is not buying China World Hotel , they buy in the supermarket ," says Beijing -based Sienna parulis - cook, her dissertation for the University of London School of Oriental and African Studies wrote on mooncakes and the culture of gift giving in China . Manufacturers mooncake as Daoxiangcun , a popular , time-honored mooncake brand in supermarkets across the country in retail for ¥ 48-260 per box or Haagen- Dazs , the ice cream filled cakes sell for a few hundred dollars per box , appeal private buyers who are looking to treat friends or family to a gift and is likely to be affected in a cultural tradition and are not much of the raid , she says.
At the Peninsula Hotel in Beijing , this year's moon cake sales " similar " to those of the previous year , says public affairs director , Cathie Yang . Yang says the peninsula , most of the mooncake customers are companies from all pre-ordered will sell 5,460 boxes, which cost between ¥ 308-980 each . The predicted total of 490 boxes is short of last year's sales. But the peninsula mooncake prices are solidly middle class. " It is the five-star hotels that were in the total expenditures made," says parulis - Cook. " The luxury ones are facing the greatest challenge .
High -end retailers mooncake
High -end retailers mooncake the pinch more immediately feel and longer-term than their mid-range counterparts , she says , noting that the most is the upper class mooncake retailers hawking expensive , elaborate boxes that obvious cases of conspicuous consumption are be . Since the beginning of the crackdown on corruption this year, hotels around Beijing were losing money due to the loss of official spending on luxurious banquets, an indicator for what lays in store for probably mooncake sales , she says. " Banquet is another form of giving. Hotels If all money lost by official editions , I am sure that they lose money on their mooncake sales, too."
The long-term effects of the ongoing corruption crackdown on the mooncake market reflect a major change in the way the rich consume luxury goods in China, said Shaun Rein, founder of the China Market Research, a Shanghai-based consulting company that focuses on the buying habits of the wealthy class of China .
" The culture of giving is still there ," he says.
"They are just giving different kinds of gifts . "
"Every gift looks mooncakes as corrupt . " Instead, market trends on
items that are used or consumed at home and are not as easy to move
judge at a glance , such as massage chair , or dietary supplements, he
says. And the flow goes in both directions.
Be investigated as officials for graft fear will continue to give or acceptance of bribes suspected moved the culture of gift-giving from striking objects , such as Louis Vuitton bags or gold foil wrapped mooncake boxes. " Mooncakes are obvious ," says Rein.
When the officers are increasingly paralyzed in ceremony favors at will , are those who .
Favors for hedging their bets with less expensive gifts " A few years ago , when someone has a 5000 yen clock , it was almost quid pro quo , the official could help with something," says Rein. " Well, if you give a gift , it's only 1000 yen , because they know not the official may be able to help them now. "
