The trends we will be discussing today first emerged in 2018.  As of 2021, it penetrated 91.4% of the market.

What Do The New Trends Focus On?

Compared to consumption before 2017, both brands and customers today mainly focus on the three aspects of quality, category & brand:

These new consumption trends focus on social channels & niche segmentation to meet the customers’ personalized needs.

With D2C marketing, brands can reach consumers directly via social media, eCommerce & private traffic. Unlike traditional media, you can establish a connection with your Chinese customer directly. You also have more flexibility in developing your brand story and customizing your marketing strategy continually.

Which New Consumption Trends Are Gaining Momentum?

a) Guochao

Guochao is a term used to describe modern consumer goods that use Chinese cultural characteristics as a key selling point. These elements are frequently drawn from ancient Chinese culture, although they can also refer to modern pop culture, patriotism, old-school (time-honoured) brands, and childhood nostalgia. Guochao can be found in a variety of product sectors and is subject to ad hoc adoption.

b) China’s Fragrance Market

Local consumers, particularly China’s youth, have embraced fragrances as an accent of personal style in the last 3 years. Two seemingly contradictory trends are playing out at the same time:
1) A desire to have access to niche fragrances from master perfumers overseas.
2) A fondness for local herbal cultural elements, including local scents and a “Crafted In China” Heritage

c) Expansion Of The Online Service Industry

-During last year’s 618 Festival, sales of JD’s online real estate business increased 230% (year on year)
-The online order number of car maintenance increased 285% year on year
-Sales of housekeeping and cleaning services online increased 6.3% times.

d) Glamping

More and more Chinese young people love going camping with their friends. The term “Glamping” (glamorous camping) has become popular among the youth in China. Glamping allows travellers to enjoy nature and the outdoors with the comforts of home. Gucci and North Face appealed to this audience in their campaigns. Prada’s outdoor activation was also a significant glamping campaign.

As of 30 June, there were more than 290,000 searches related to the keyword ‘camping’ on Red. Various topics such as campsite selection, and camping kit recommendations are being discussed right now. Brands such as Nordisk from Denmark, Churns from the U.S & Snow Peak from Japan have entered China’s mainstream via online recommendations.

Last year’s 618 festival showed a 130% increase in camping-related sales.

New Trends Bring New Consumer Groups Into Focus

The following groups are leading the consumer market, with a large population base and strong consumption power. This covers ACGN culture, Guochao, face-score economy, cosmetics & skincare, food & beverage, pet economy

1)Gen Z
2)New Women
3) New Parents
4) New White Collar
-New Elites
-Small Town Youth

9 Reasons Why These New Trends Are Becoming Popular

1) With their strong willingness to try new things, the rise of Gen Z brings a new change to the market

2) There has been a rising interest in E-sports, ACGM, Chinoiserie, garage kit, technology etc.

3) Increasing preference for tailored or personalized products with a new experience

4) Big data helps observe the market and capture opportunities in a timely way. Market research covering different platforms provides immediate feedback from customers

5) The development of e-commerce promotes the digital upgrading of the commercial process. It also accelerates the incubation and circulation of new products

6) China’s advanced digital infrastructure enabled a rapid shift to online. Various online & offline channels provide consumers with a wealth of information and consumption options.

7) With the support of e-commerce, social media and content platforms, brands can develop a comprehensive marketing strategy. Consumers can receive omnichannel recommendations, thus the decision making process is more efficient for both sides

In Closing – Let’s Look At Tsingtao Brewery’s Successful Adaption To The New Trends

-Integrated China-chic design to New York Fashion Week 2019
-Launched a #CheersAcrossTheAges campaign to indicate century-old culture in 2020
-Teamed up with GQ to shoot a fashion blockbuster with celebrity singer Hua Chenyu
-During the 618 TMall shopping festival, Hua Chenyu was invited to the Shanghai Film Museum for a live stream. Hua Chenyu topped the Tmall beverage sales during the festival, as a result.

Digital Crew is a Chinese digital marketing agency (Melbourne), that can reach out to Chinese users based on these new trends. Contact us today to know more.