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A Guide to China’s New-Generation Consumer
2 Contents Introduction 3 Impact-Conscious Consumerism 4 Gemma A. Williams | Jing Daily Short Form Engagement 8 Richard Whiddington | Jing Culture & Commerce Culture of Mega-Collaborations 12 Sky Canaves | Content Commerce Insider China’s Rising Creative Communities 16 Yaling Jiang | Jing Daily About TONG and Jing Group 20
3
Introduction
by TONG
T
he upheaval of 2020 brought While China was first to enter the virus
a new set of challenges slump, it proved one of the fastest out of
it. Its consumers have shown remarkable
never before experienced resilience, responding and transforming
by industries around the world. readily with media, retail, and digital. As
The future direction for luxury and domestic consumption bounces back and
lifestyle sectors continues to hang evolves through 2021, we are partnering
with Jing Group to explore the ingredients
in the balance, while new paths
for change as well as the shifting mindsets
and trajectories have unfurled and behaviors that result from it. Our shared
for those brands positioned to mission is to create a more informed and
adapt. As we put the year that connected industry with consumer trends at
tested our resolve and pushed its core, focusing on new insights that surface
and profile tomorrow’s opportunities for
our purpose behind us, we enter brand leaders and decision-makers.
a new inter-COVID climate where
Tracking the Trends 2021 spotlights the
China’s rising young generation areas of growth set to go mainstream in
are redefining the norms and Chinese consumer culture over the next 12
standards of luxury consumption months and beyond. As the world opens up
at the global level. again and turns to face East, we identify the
accelerating pace of certain patterns and
adoptions that will frame China’s collective
new normal.
As we enter what will undoubtedly be
dubbed “The Chinese Decade,” this report is
essential for brands reconsidering their role
in consumers’ lives in China.
4
Why Luxury Needs
China’s Impact-Conscious
Consumers
Gemma A. Williams | Jing Daily
D
espite China’s relatively quick recovery Whether it’s on the ground coalitions like ActAsia or
from the outbreak, the upheaval of Weibo’s online charity organization, farm-to-table
life in the wake of COVID-19 has given startups like Meicai, or innovation in fashion sustainability
promoted by companies like Redress and Cheng Kung
companies, governments, and citizens —
Garments, China is witnessing a rise in mindfulness.
particularly the young generations — an
opportunity to rethink processes, practices, This more considered outlook is being driven by demand
from Millennial and Gen Z demographics. But will 2021 be
and social interactions. the year mainstream consumers become more receptive
As a result, 2020 has shifted priorities. In China, we are to inclusivity, freedom for expression, and compassion?
seeing emotional responses to the crisis manifested
Body: Care for What’s In and What’s On
in a number of areas, primarily: the body, community
issues, and the environment. Together, this set of Young shoppers are now keen to generate a sense of
interests forms the rise of a new, impact-conscious self-awareness through heightened care for health and
consumer. optimized bodies, as well as supporting brands that rally
around certain beliefs and purposes. Body positivity has
Furthermore, this shift is aided by a number
been heightened during the outbreak, and some Chinese
of developments. Better education, increased
brands have been instrumental in promoting positive
communication, and connectivity on social media, and
body messages and diversity.
attention from KOLs are all catalyzing this drift toward
impact-consumerism. The proliferation of tech startups, Intimate wear company Neiwai has been particularly
apps, and platforms are facilitating change as well. dynamic in this area — from hiring an older female
5
Zhang pointed to a brand like LUÜNA Naturals, which is
now gaining traction by breaking the stigma surrounding
periods in China. “LUÜNA Naturals’ healthy and planet-
Body friendly products and women-first mantra are responsive
to consumer demand for real voices and social impact.”
Alongside breaking down barriers to perceptions of body
issues, citizens are more careful about what goes into
Community Environment their bodies as well. The thirst for fresh food products has
risen, while concepts like “farm-to-table” have started to
3 Pillars of Impact-Conscious Consumerism infiltrate consumption trends. This has gone hand-in-hand
with tech developments and speedy delivery apps.
ambassador to releasing inclusive campaigns that have iiMedia Consulting reported that during the two weeks
featured same-sex couples. Their choice of wording too is from January 22 to February 6, 2020, the daily new users
particularly upbeat, yielding phrases like “fits a variety of of mainstream fresh food platforms were more than
chest sizes” and “comfortable.” 10,000. Among them, Hema, JD Daojia, and Dingdong
Yang Tianzhen, the former manager of Chinese celebrity Maicai had more than 40,000 new users on February 6.
and member of K-pop boy band Luhan, has now become The Bottom Line Together, the rise in body acceptance,
an internet celebrity herself for founding plus-size label, healthy living, and body-related causes indicate that
PlusMall. Yang now advocates for body acceptance, mindful and considered change is happening. Brands that
positivity, and representation, and has appeared on the wish to empower consumers need to ensure an authentic
cover of Nylon China. Weibo influencer Lizlu has too found and long-standing alignment with such areas.
interest online by offering style tips for plus size women.
Community: Standing With Wuhan Becomes the Norm
Previously, brands that have tried to meet this changing
“demand” have been out of step. Some have found One of the most notable issues to result from COVID-19
themselves accused either of “ethics-washing” or of being was the initial outpouring of help for the citizens of
too progressive, as in the case of Tiffany. Wuhan. Influencer Li Jiaqi was particulary active here;
during a special livestream on the eve of Chinese New
But an area where we are seeing real, authentic
Year, instead of selling, he asked viewers to make
transparency on a grassroots level is in relation to
donations, raising a total of almost $11 million for Wuhan.
women’s issues and female products. The advocacy
group Stand By Her inspired students to put a stop to From big donations to small messages, brands chose to
period-shaming by offering free sanitary pad dispensers be sensitive to their consumers during this crisis rather
in toilets, which have now been rolled out to over 250 than push out promotional messages. Global fashion
colleges across China. names pledged millions to the city, while at home, Chinese
brands crafted purposeful and caring messages for fans.
According to Jenny Zhang, Strategy Director at TONG, it’s
not surprising that younger consumers are committed Beauty disruptor Perfect Diary broadcast safety
to this area. “Age is definitely a factor in changing recommendations, while Neiwai posted messages reminding
consumption in Femcare across China. Younger women their fans to stay healthy and strong on WeChat. Apparel line
have a different attitude toward personal care and Bosideng donated 150,000 down jackets worth $45.7 million
feminine hygiene than previous generations. They are to counter the cold weather faced by frontline workers.
active, more open-minded and engaged with these
Tech giants too were proactive and responsive during the
topics,” she explained.
crisis. Efforts included blocking vendors from increasing
During the early months of the COVID-19 outbreak, PPE prices and deploying drones to enforce the curfew.
female health workers were told sanitary products were Despite this, some attitudes toward these companies
not critical items; however, a local NGO rallied to have shifted. Netizens on WeChat and Weibo have started
donations of sanitary pads and period underwear sent to to speak up to highlight the social unfairness of having
frontline health workers. access to a phone.
6
“Age is definitely a factor in
changing consumption in 35% 32%
Femcare across China. Younger Optimistic Angry
women have a different attitude
toward personal care and
feminine hygiene than previous 22%
Sad
14%
Surprised
0.7%
Fear
generations.”
— Jenny Zhang
Reactions to COVID-19 on Weibo Between February 17 - 20, 2020
Strategy Director at TONG Source: Weibo Data Center
Incidents in which older people without smartphones are
unable to access health codes are now being reported on.
In August, one of these incidents concerning an elderly
Harbin resident unable to scan his health code received
220 million views on Weibo. It featured compassionate
comments such as: “Society really has to accommodate
old people’s needs.”
The Bottom Line From small and discreet to large scale,
these outpourings from brands during COVID-19’s
outbreak further reinforce the analysis that consumers in
China are thinking laterally about causes and moments
that relate to inclusivity of community thinking.
Environment: Sustainability, Tech, and Animal Welfare
Recently, China’s governmental policies have been
leaning toward a greater appreciation of environmental
issues. It announced a ban on single-use plastics earlier
this year, which set the tone for a green recovery
from COVID-19, including a commitment to carbon
neutralization by 2060.
These steps have been complemented by initiatives from
big tech conglomerates such as Cainiao’s Recycling Day.
Additionally, the sustainable impact of fashion and a
demand for more ethical production has been a driver in
China’s consumption during 2020.
During October, Shanghai Fashion Week held its third
annual sustainability conference in collaboration with the
Copenhagen Fashion Summit. Luxury retailers too have
been addressing recycling and packaging: The Balancing
and Lane Crawford have both pioneered sustainable
packaging and recycling initiatives.
The Alibaba Group committed to making 2020’s Singles’
Day more sustainable and set up 40,000 recycling
7
stations; for every box recycled, consumers scanned a
QR code to receive points on Alipay’s Mini Program, Ant
Forest. By the end of the festival, more than 200 million
people had participated in the 11.11 Go Green campaign.
Finally, on this trend, younger consumers are also more
concerned with animal welfare. The rise of the “cat
economy” is chiming with grassroots organizations such
as the fur-free movement ActAsia, which has been vital in
pushing for a future that’s much more humane.
“Since COVID-19, Wuhan has ended wild animal
consumption, dog farming has been banned, and
lawmakers have been calling for an expansion in wildlife
protection.”
KEY TAKEAWAYS
ActAsia’s 6th Compassion in Fashion Forum at the
Fashion Zoo festival addressed a live audience and • In China, emotional responses to COVID-19
reached an additional audience of around 24,000 are being manifested in a number of areas,
listeners online. The forum also featured luxury’s leading primarily: the body, community, and the
cruelty-free name, Stella McCartney. Zhang noted that environment. Together, this set of interests
the COVID-19 outbreak had a huge impact on how China
approaches animal welfare.
forms the rise of a new, impact-conscious
consumer in the mainland.
This shift is also being reflected in governmental change
and legislation too. Zhang continued: “In July, China • Body positivity has been heightened
announced to finally remove mandatory pre-market during the outbreak, and some local
animal testing for foreign ordinary cosmetics effective brands have been particularly instrumental
January 2021. This indicates a move toward a more in promoting positive body messages
humane approach to safety testing and a step closer to
cruelty-free beauty.”
and growing the area of diversity in
casting. Advocacy groups and students
The Bottom Line The final pillar, a recalibration on the are working towards ending the stigma of
wellbeing of the environment, is perhaps the most crucial.
menstruation.
In China, this is coming from the top down and bottom-up,
and as such, is having a powerful impact across the country. • Following COVID-19, there was a global
§ outpouring of help for the citizens of
Wuhan. From big donations to small
While it’s true that this more thoughtful way of living has
messages, brands crafted purposeful and
been accelerated by COVID-19, it was already fermenting
in consumers’ consciousness. Now, it is funneling Gen caring messages for fans. Tech giants
Z’s attention toward greater self-awareness, meaningful too were proactive and responsive,
interactions, and environmental considerations. which illustrated a more compassionate
China exited the COVID-19 pandemic relatively quickly approach to the community.
comparative to global standards, and as such, its • From governmental initiatives to local
consumers’ spend and attention have been even more startups, environmental issues are top of
vital to fashion brands and companies. Ultimately,
mind among younger generations. Citizens
the combined purchasing power of younger Chinese
consumers is one that brands cannot ignore in this
are now more concerned with animal
decade. Only the brands that are able to demonstrate an welfare as the rise of the “cat economy”
authentic connection to causes, or can genuinely build chimes with grassroots organizations such
goodwill, will win favor during 2021. as the fur-free movement ActAsia.8
Why Cultural Content
Is Key To The Future Of
Short Form Engagement
Richard Whiddington | Jing Culture & Commerce
F
or the first half of the 20th century, Tianqiao only two examples from a diverse cultural ecosystem.
was a microcosm of Beijing’s cultural life. Just as visitors to Tianqiao sampled widely, curiously, and
haphazardly, so too today’s users swipe between bizarre
Among its narrow streets and stall-lined feats of physical sculpture, calligraphy lessons, tours of
squares an informal carnival of fire breathers, contemporary art galleries, and graffiti demonstrations.
crosstalk comics, acrobats, erhu players, and
wrestlers offered locals a smorgasbord of High-Culture for the Small Screen (and Mass Audience)
human creativity and a taste of the sublime. Watching demonstrations of traditional Chinese furniture
joinery may not sound riveting, but for woodwork
Today, however, performances continue across four artists Zhang Keke and Zhuang Zhe, short-videos have
stages at the Beijing Tianqiao Performing Arts Center, become the primary means of reaching new audiences
which was erected as part of the area’s redevelopment, and potential customers. EHOOWOOD, their project
but the true spirit of Tianqiao has migrated online to centered on applying contemporary flair to classical-style
China’s short-video platforms. Chinese tables, bookcases, and beds, has YouTube videos
Since gaining widespread popularity in 2016, China’s exceeding a million views and a Bilibili channel with more
cluster of short-video apps, most prominently, Douyin, than 130,000 followers. But in recent months, Douyin has
Kuaishou, Xigua, and, in some regards, Bilibili, have proven the most effective communication tool.
continually disrupted the country’s internet landscape — “By watching our videos, the viewers understand the
and, by extension, how cultural content is consumed. The process of making wooden furniture,” says Zhang from
lip-syncing and synchronized dance routines with which EHOOWOOD’s Hangzhou workshop. “From the quality of
many of the platforms became synonymous are, in fact,9
the materials to the high level of craftsmanship required “The pandemic challenged the
— we’re not hoping to become internet celebrities here;
we’re trying to connect and share, to make our brand last whole art industry, but it also
a hundred years.” offered an opportunity for art
Traditional Chinese arts, once the domain of high culture,
have begun to transform as young, mass audiences have
institutions and individuals to
found new identities in wearing flowing Han dynasty-style reflect on how they communicate
garments, playing video games designed with meticulous
accuracy to Chinese heritage, and watching hit dramas
in this ecosystem.”
created in collaboration with prominent museums and
— Zhu Boer
cultural sites. Moreover, Douyin is the latest locus of this
Activation Manager at TONG
trend with users discovering new arts content through
the platform’s power of recommendation, and ability to
group and propel niche content.
As with most everything digital in 2020, the pandemic Cultural Bytes Capture the Mainstream
has accelerated this development and short-video
For Douyin, the presence of arts content as dominant
consumption more broadly. New viewing habits begun
verticals echoes the attentions of the platform’s early
under lockdown are enduring with a mid-year report from
Millennial adopters. “It started with a core user base
a Chinese internet industry association showing close to
of trendy urbanites and art students in the early 20s
90 percent of China’s internet users regularly use a short-
demographic,” says Matthew Brennan, author of Attention
video platform, averaging more than 100 minutes a day.
Factory, a book chronicling the rise of parent company
Ni Zhengpeng is one of countless creators who turned to ByteDance. “By 2018, Douyin had gone fully mainstream.”
Douyin to ward off the tedium of lockdown isolation and
Douyin’s warp speed growth was encapsulated by
shared step-by-step art videos. The Central Academy of
October 2017, during which the app’s users jumped from
Fine Arts graduate regularly posts time-lapse shorts of
seven to 14 million and the average time spent in the
his charcoal drawings of barren landscapes and vacant
app doubled to 40 minutes. The growth signaled a reach
classrooms, scenes that seemed eerily poignant as the
far beyond the initial Millennial and Gen Z users, and
city streets around him cleared of people.
prompted a change of slogan to the all-encompassing
“It’s all about the content of the work and figuring out “Record Beautiful Life.” Three years on, that vision
what audiences want,” says Ni, whose videos broadened includes “more than the classic dance, lip-sync, and
in focus as his fanbase grew to include art book comic content categories,” says Brennan, and touches
recommendations, reflections on art school, and drawing upon the full spectrum of cultural content.
tips. Pre-pandemic, Ni could not have foreseen turning to
Embroidery is one such area. “I had some craft skills
short-videos, but feels his content resonates because it
before, but I’ve really learned a lot through watching
shares insights on art and his daily life as an artist.
short-videos [on Douyin and Kuaishou],” says Han Yunyin,
a retiree in Shanxi province. “Seeing other people’s
[embroidery] abilities inspires me to buy more materials
and continue making more myself.”
4 This cultural focus is increasingly driven by ByteDance
3.2 billion
itself. With more than 600 million daily active users,
2.5 Douyin appears to have saturated the domestic market
billion
billion
— though such predictions in the past have proved
premature — and the Beijing-based company’s focus has
turned to maintaining its audiences and extending user
January 2019 July 2019 January 2020 time, “stickiness” in industry parlance. Similar to YouTube,
Douyin’s appeal rests with content not socializing, says
Douyin’s Registered User Growth Between 2019 and 2020 Brennan; and with product teams having seemingly
Source: Parklu10
“[Douyin] wants to be seen as the exhausted in-app innovations, the focus will rest on
ensuring the platform’s unique, quality content. Arts and
educational and creative platform education are key to this strategy, with Douyin self-
for the mainstream, to show identifying as China’s largest knowledge, culture, and art
platform with nearly 15 million knowledge-based content
people good lifestyles and good videos in 2019.
art. That’s been their messaging The company claims that more than 90 percent of the
1,372 areas of so-called intangible cultural heritages
since the beginning.” identified by the government have a presence on Douyin.
If this seems vague, the arrival of museums on the
— Fabian Ouwehand
platform, from giant state institutions such as the National
Founder of UPLAB
Museum of China to hip contemporary art centers such
as Beijing’s UCCA, clearly indicates the new role short-
video is playing in delivering culture to large audiences.
This move was signified by a nine-museum virtual tour
relay held on Douyin in February 2020 and a second on
International Museum Day in May.
Meanwhile, ByteDance’s desire to elevate arts content
is being mirrored internationally with the company
launching a $50 million TikTok Creative Learning Fund to
support educational content creators and signing with
the likes of the Carnegie Museum of Natural History, which
has enjoyed viral success on TikTok with its series of nerdy
science-themed videos.
“The pandemic challenged the whole art industry, but
it also offered an opportunity for art institutions and
individuals to reflect on how they communicate in this
ecosystem,” says Zhu Boer, Activation Manager at TONG,
who highlights the range of public and private museums
to become active in creating bite-sized informative
content. “Launching on short-video platforms seems a
must-do, but the question in the cultural sector is how to
land creatively and contextually.”
Douyin in 2021
ByteDance’s original 15-second video limit led to
suggestions of an alternative Andy Warhol vision of a
future where everyone would be famous for 15 minutes.
But with Douyin creators now able to post five minute-
long videos and go even longer via livestream, the
assertion of Warhol’s artistic contemporary Joseph Beuys
that “everyone is an artist” more accurately projects the
nature of the app in 2021 and beyond.
ByteDance sees supporting individual creators as
essential to its long-term success, says Fabian Ouwehand,
founder of UPLAB, a Shenzhen-based company that
helps artists go viral on Douyin and TikTok. “Douyin uses
creators to create an in-app culture and it supports the11
5,000
craftspeople participated
in e-commerce
on Douyin in 2020
Source:
Douyin 2020 Report
KEY TAKEAWAYS
• Short-video apps, in particular ByteDance’s
people on the platform to attract a larger and larger Douyin, have become dynamic new spaces
audience.” This support is both practical and financial, for consuming art and culture content in
with 22 million creators receiving $6.9 billion in 2019, a China, a trend accelerated in 2020.
number expected to double in 2020.
• From graffiti artists and iPad illustrators
Ouwehand has been surprised by the speed at which to calligraphy masters and traditional
Douyin has integrated on and offline, thereby allowing woodworkers — COVID-19 pushed a wave
calligraphers, potters, and embroiderers to sell their
of creators onto Douyin. Chinese cultural
wares through short-videos. ByteDance’s cultural focus,
however, is less surprising: “It wants to be seen as the institutions are following suit with many
educational and creative platform for the mainstream, to offering virtual tours and livestreams on
show people good lifestyles and good art. That’s been Douyin.
their messaging since the beginning.” • With more than 600 million daily active
The continued growth of cultural creators on Douyin will users, Douyin is close to saturating
be mirrored by cultural institutions, says Zhang Yilun, a the Chinese market. In 2019, Douyin
Creative Business Lecturer at the Hogeschool Utrecht, a platformed 543 billion culture-related
science university in the Netherlands. “Production-wise,
plays, and is encouraging this vertical to
it’s easy to create and operate at a low cost, and I expect
they will further explore livestreaming shopping options maintain audiences and increase on-app
on their existing short-video channels.” user time.
If Douyin is to outlive its own 15 minutes of fame and • Video length and the connection between
become the ubiquitous space to consume video on short-video and e-commerce are expected
mobile in China, longer, more polished content will be to grow in 2021. Douyin has already
essential, however counterintuitive that might seem. allowed longer videos as part of a push to
Having succeeded in capturing the attention of China’s
deepen content quality and expand usage.
internet users at an unprecedented speed, ByteDance
will look to support the initiatives of cultural institutions
ByteDance helped 22 million creators
and individual creators in continuing to create the type generate $6.9 billion in 2019 and prides
of culture-centric video that Douyin users have already itself on being able to offer long-term
shown a passion for. support for creators.12
Why China’s Young
Consumers Love Brand
Collaborations
Sky Canaves | Content Commerce Insider
T
he year 2020 has seen an expanding range China’s mega-collaborations may appear increasingly
of brand collaborations in China emerge extreme or even bizarre, such as KFC China’s
development of insect repellent-flavored drinks earlier
from some unlikely sources — from Adidas this year, a partnership with the traditional Chinese
x Hey Tea to National Gallery x Ramen Talk to brand Liushen. However, such items are widely talked
Pepsi x People’s Daily. Just about any and every about, and their freshness and limited-time appeal can
combination of brands appears open to the tempt young consumers to at least try new (and often
trend, and these collaborations continue to affordably priced) products — which also make them
attractive candidates for posting on social media, further
push the envelope in scale and ambition.
helping to expand the reach of brands among that
Over the past few years, brand collaborations have valuable demographic.
taken off globally as marketing strategy, particularly Compared to the West, branding is still a relatively
across fashion and lifestyle brands. But in China, this recent concept in China, and young consumers have
form of marketing has accelerated to new heights shown an openness to the presence of brands in much of
through brand partnerships that have fueled a culture everyday life, such as on television, where sponsor logos
of mega-collaborations with the power to surprise and are prominently displayed on reality shows and brands
delight consumers. Driven by the demands of a younger are written into the storylines of dramas. And with fairly
generation of Chinese consumers, the recent surge in few brands constrained by long histories and established
product innovation via brand partnerships has been a narratives, they are free to reinvent themselves as much
consistent source of entertainment and media buzz, as as necessary and align themselves with the latest trends
well as a driver for further consumption.13
collaborations, translating into a high repurchase rate
Offer new among buyers who are keen to sample the latest releases
Generate
content and
media buzz
experiences and share their reviews among their social circles.
to drive
to expand
consumption Another of the most active brands on the mega-
reach
collaboration front is Hey Tea, which has leveraged the
craze for tea-based drinks among young Chinese into
Develop Partner with collaborations such as peach tea-inspired cosmetics
new revenue local partners
streams via to dissolve
with Fenty Beauty and grape beverage-colored shoes
innovative geographic with Adidas. Hey Tea’s enormous fan base and social
products boundaries media following means that any collaboration will be
hotly anticipated and widely shared on platforms such
Why Brands Collaborate as the lifestyle-oriented Xiaohongshu, while also driving
engagement through exclusivity, as in the case of the
Fenty Beauty collaboration, which was not offered for sale
from milk tea to space exploration. Even older brands, but was a limited giveaway in exchange for social media
like Li Ning in sportswear and the nostalgic White Rabbit engagement.
candy, have sought to rejuvenate their images through
collaborations in youth-oriented sectors such as gaming Breaking Through Product Categories
and beauty. Into Experiential Collaborations
Growing individualism and a desire for differentiation Brands build upon collaborations to offer experiences
among China’s Gen Z and Millennial consumers draw — both digital and physical — and content for wider
them to mega-collaborations. Thanks to their limited- reach and greater impact. Special events, pop-up
edition or limited-time nature, these products appear shops, gaming features, and other opportunities allow
more unique and special than the mass-market items that consumers to boost their engagement with brands and
are readily available to the general public at all times. The their collaborative products.
more special the mega-collaboration appears, the more In late Spring, as China emerged from its coronavirus
discerning and sophisticated the consumer can feel. lockdowns, Airbnb worked with Hey Tea to promote the
concept of a “staycation” among would-be travelers
New Brands Go “Collaboration-First”
who might be wishing for a change of scenery while still
In Response To Consumer Desires
feeling understandably cautious about venturing too far
The rise of direct-to-consumer (DTC) domestic brands from home. The brands engaged actress and musician Lin
such as Perfect Diary has fueled competition to stand out Yu-pin to create a Shanghai getaway decorated in bright
via innovative collaborations that can propel a relative colors inspired by a Hey Tea mango beverage and amply
newcomer to “internet-famous” (wanghong) status with the supplied with Hey Tea products. Opportunities to win
ability to iterate signature products into creative derivatives. weekend stays were offered via social media channels —
another case of a mega-collaboration used to generate
Many of these brands have only been in existence for
engagement and awareness for the brand partners rather
a few years and use collaborative products as a key
than merely selling products.
marketing tool to generate buzz, especially via social
media. For example, the DTC brand Yongpu Coffee, Around the same time, the established Chinese liquor
which sells primarily via Tmall, has been involved in brand Jiangxiaobai collaborated with Mengniu, the
more than 400 collaborations since it was founded in country’s largest dairy producer, on boozy ice cream
2014. What was initially a marketing tactic borne from treats to mark Children’s Day, a nod to the fact that
its limited budget for advertising has since become an the holiday continues to be celebrated by young
integral part of its brand identity, extending into content- adults who mark the occasion by going out to dinner
focused collaborations with partners such as lifestyle with friends or shopping. The brands also opened a
platform Xiaohongshu and the hit youth film Better Days. very photographable pop-up “adult ice cream shop”
Yongpu Coffee frequently pairs new flavors with these in Shanghai to promote the collaboration, adding an14
“For [brands] entering or scaling name, partnered with QQ Dance, a Tencent Games title,
to connect with young consumers using a combination
up in China, it’s as much about of retro and futuristic elements. Li Ning appointed the
entertainment as it’s about game’s virtual idol Xing Tong as a brand ambassador
to promote its throwback collection in a short branded
brand or product education. film. This type of creative content helped merge Li Ning’s
status as a “national trend” brand with the futuristic
Otherwise, there’s the risk of gameplay of QQ Dance.
becoming an irreverent,
Local Partners as Key to International Brand Success
flash-in-the-pan moment.”
As more consumers in the market express a preference
— James Campbell for “Made in China,” international brands may find that
Co-founder of TONG collaborations with local partners can be an effective
way to dissolve geographical boundaries and establish
connections based on a shared vision. These partnerships
may be enabled by e-commerce platforms such as Tmall
important offline component that meshed well with the and its affiliated product development and marketing
desire to engage in social activities with friends for the departments, which can provide consumer insights as
“big kids” version of Children’s Day. well as channels to reach target consumers, such as
social media, short video, and livestreaming.
Building on National Pride and Cultural Heritage
And as China continues to be a major focus of attention
Brands have tapped into China’s distinct heritage by
for global brands amid the ongoing COVID-19 pandemic,
leveraging current tastes for “national trend” (guochao)
more international players are lining up to seek out
products spanning “cultural creations” (wenchuang) and
domestic brand partners, especially in the luxury fashion
consumer nostalgia in the development of collaborations.
sector, for which the Chinese market is increasingly
Guochao refers to brands and products that incorporate
important as a source of revenues. The Karl Lagerfeld
a distinctly Chinese style, whether ancient, old-school, or
brand recently worked with both Tsingtao Beer and
futuristic, and appeals to Millennial and Gen Z consumers
KFC in China on special joint capsule collections, while
who have come of age with a sense of national pride.
Italian fashion house Moschino partnered with dairy giant
Beauty and fashion brands have been most successful in
Mengniu for a special teddy bear and yogurt gift box
exploiting consumer tastes for these products, but many
designed by Jeremy Scott.
other types of consumer brands have gotten involved in
partnerships to create goods with a strong cultural element. Especially during a pandemic, an understanding of what
consumers want and need is essential to brand survival.
In sportswear, homegrown brands such as Li Ning,
Anta, and Bosideng have emerged as leaders in brand
collaboration, with diverse partnerships ranging from luxury
labels to gaming IP to the Chinese counterpart to NASA. The
Palace Museum (aka Forbidden City) and the Dunhuang 50
,7
Research Academy are at the forefront of developing new 332
revenue streams through product collaborations with ,615
partners running the gamut from Oreo cookies to Lenovo 247
computers to major e-commerce platforms JD.com and ,55
9
176
Pinduoduo. Meanwhile, C-beauty brands such as Florasis
have drawn rave reviews for recent collaborations with ,10
9
114
traditional artisans to create visually stunning products
in limited editions that can command a premium for their
evident craftsmanship.
2017 2018 2019 2020
In July, Li Ning, which was established in 1989 by the
Alibaba’s Annual E-Commerce Revenue (in million yuan)
Olympic gold medal-winning gymnast of the same Source: Statistica15
Several global names have already become established KEY TAKEAWAYS
in developing creative brand collaborations in China,
whether because of their deep efforts at localization • China’s Gen Z and Millennial consumers
(Oreo, KFC) or by working with licensing partners seek novel products that stand out
that can help connect them to Chinese consumers from the crowd, fueling a rapidly
(Metropolitan Museum of Art, National Gallery).
evolving culture of innovative “mega-
While the trend of mega-collaborations has been collaborations” between brands.
growing over the past few years, and 2020 saw an
increasing number of hyped-up partnerships, there • The rise of direct-to-consumer (DTC)
are few signs of consumer fatigue. China’s Gen Z and domestic brands such as Perfect Diary
Millennial consumers now expect to be entertained have fueled competition to stand out via
and amused on a regular basis by creatively co- innovative collaborations that can propel
branded products, and accompanying online and offline a relative newcomer to “internet-famous”
campaigns that they can engage with directly. (wanghong) status with the ability to iterate
In 2021, the challenge for brands is to go the extra mile signature products into creative derivatives.
to ensure that collaborations create long-tail consumer
affinity and reflect brand values, rather than simply • Brands build upon collaborations to
attracting short-term curiosity and buzz. offer experiences — both digital and
physical — and content for wider reach
“For brands seeking out Chinese partners to collaborate
with, it’s tempting to go down the route where big, loud,
and greater impact. Special events, pop-
or weird is the gateway to capture consumer attention,” up shops, gaming features, and other
said James Campbell, co-founder of TONG. “For those opportunities allow consumers to boost
entering or scaling up in China, it’s as much about their engagement with brands and their
entertainment as it’s about brand or product education. collaborative products.
Otherwise, there’s the risk of becoming an irreverent,
flash-in-the-pan moment.” • Many successful mega-collaborations have
tapped into China’s distinct heritage by
With the rising competition for consumer attention
leveraging current tastes for “national
(particularly over digital channels), brands must
be intentional about creating real value in their trend” (guochao) products, “cultural
collaborations. It is especially important for international creations” (wenchuang), and consumer
brands to be savvy in their choice of partner, product nostalgia.
development, and marketing in order to produce
• As more young consumers express a
successful mega-collaborations that are capable
of creating lasting impressions and deepening the
preference for Made in China, international
relationship with consumers. Mega-collaborations are brands may find that collaborations with
here to stay in China. Now, it’s up to brands to fully local partners can be an effective route to
capture the opportunity. establish connections.16
How Luxury Brands
Can Ally China’s Rising
Creative Communities
Yaling Jiang | Jing Daily
A
fter being in lockdown for the first few Millennial and Gen Z consumers are buying into brands
that can represent their identities, creative communities,
months in 2020, Chinese consumers are
and hobbies. Therefore, refocusing on brand equity
eager to make authentic connections, among key target consumer tribes, especially with a focus
online and offline. Three dynamic communities on younger consumers and their desire for belonging, is
— gaming, LGBTQ+, and outdoor sports — have an essential strategy in 2021.
begun taking up more space in the public eye, Many global brands see community-building as a shortcut
and as such, some smart, nimble brands have to young consumers’ hearts. As luxury shoppers and
found opportunities to tap into these social gamers are seeing a growing overlap, luxury leaders such
groups that are bound together by either as Balenciaga, Gucci, and Burberry are now curating
game-minded runway shows and content for well-known
hobbies or identities.
video games. By creating immersive environments so
After China quickly recovered from COVID-19, there’s that local consumers can experience a new sport, global
been a new focus on communities rather than simply brands like Dior, Descente, and Burton are essentially
paying for luxury brand logos. “China’s new generation presenting user scenarios for their products.
of luxury consumers is one that is fiercely independent of
In certain communities, though, local brands are growing
both their parents and their international counterparts,”
stronger roots among the consumer base. Compared with
said Adam Knight, co-founder of TONG. “And tapping
global brands that might be timid around China’s national
creative communities on the ground is an essential
stance on same-sex marriage and other relevant issues,
strategy if brands are to successfully navigate China’s
local cosmetics and fashion brands are more comfortable
diverse range of trends and tastemakers.”17
embracing the LGBTQ+ community and the vast market The collection is set in the year 2031, where each player
behind it. goes on a hero’s journey, and all the avatars wear styles
from the Balenciaga Fall 2021 collection.
Gaming: Being in The Same World as Gamers
Gucci put out a Christmas gift guide on WeChat in
When thinking of luxury’s target audience, fashionable mid-December that featured a host of friends of the
young girls might be the first group to come to mind. brand presenting its latest holiday-themed products.
But over recent years, luxury has begun to focus on The WeChat article came with a mobile game called
the untapped potential of Millennial and Gen Z Chinese Conga Master, which asks the audience to play with their
males. Gaming, which is now considered a young male’s colleagues. The article was viewed over 100,000 times
favorite pastime, has quickly become the best channel within a week.
for precise brand exposure.
And British luxury house Burberry, which broadcasted its
From casual gamers to e-sports, the gaming community’s 2021 Spring show on the popular gaming livestreaming
enthusiasm remains unparalleled. In December 2020, the website Twitch, introduced gaming elements in China by
release of Cyberpunk 2077 made news across China, with working with the world’s largest game vendor, Tencent.
zealous fans on social media writing game reviews and In November, Burberry announced a partnership with
posting physical in-game kits. On the professional side, Tencent Games within its blockbuster online game
e-sports has been recently approved by the Olympic Honour of Kings. “Online games are a platform on which
Council of Asia for inclusion as a medaled sport in the we can tell brand stories in ways that we know really
19th annual Asian Games 2022 in China. Both occurrences resonate with our customers in China,” said Josie Zhang,
stirred up fervor within and outside the gaming circle. president of Burberry in China, in a statement.
And brands are drawn to the tremendous traffic. China The Bottom Line Tapping into a once largely ignored
has the world’s largest video gaming industry and is audience takes courage and experimentation, and
home to more gamers than the combined population of luxury is doing exactly that with gaming. The return-on-
the U.S., Japan, Germany, France, and the U.K., according investment on this engagement is still hard to gauge, but
to a November report by the China Audio-Video and brands might have to get there first so that they won’t
Digital Publishing Association. In recent months, brands have to get in line later.
such as Balenciaga, Gucci, and Burberry have been keen
to gamify their seasonal campaigns, hoping to interact Outdoor Sports: Creating Immersive Scenarios
with a game-minded audience. for Potential Customers
In early December, Balenciaga released its Fall 2021 Whether skiing, climbing, or scuba diving, affluent
collection, Afterworld: The Age of Tomorrow, in China in Chinese consumers are becoming increasingly
the form of a video game, which can be found on its local adventurous and willing to splurge on experiences. The
website, Weibo, WeChat, Little Red Book, and Douyin. lockdown at the beginning of the year and the ongoing
travel restrictions have made them even more eager to
explore within China’s borders.
Thanks to the government’s support ahead of the 2022
94.73 Winter Olympics in the northern city of Zhangjiakou,
83.44 China’s ski market size in 2022 is expected to grow to
73.05 nearly $4 billion — an increase of more than 480 percent
since 2015, according to a 2019 report by the European
50.46 research center EU SME Centre.
In early December, the specialized ski brand Burton
made its debut in China’s streetwear space by setting
up an indoor slope at the Shanghai-based streetwear
2016 2017 2018 2019
convention Innersect. In addition to presenting the
Annual Revenue of China’s E-Sports Industry (in billion yuan) audience with a professional snowboarding competition
Source: Statistica called Rail Jam, the brand also used the occasion to18
launch its collaboration with the Hong Kong-based singer “Tapping creative communities on
William Chan’s brand, CANOTWAIT, and NEIGHBORHOOD
x MINE77. the ground is an essential strategy
“Given Burton’s relatively large market share in other if brands are to successfully
regions, consumers tend to ‘narrow’ Burton to a
snowboard brand, but we are more than that,” said
navigate China’s diverse range of
Burton China’s CEO, Craig Alan Smith. “We want to up trends and tastemakers.”
our influence in the lifestyle section of the China market
through Innersect.” Smith added that the brand’s booth — Adam Knight
garnered nearly 30,000 visits over the three-day event. Co-founder of TONG
Meanwhile, Japanese high-end ski brand Descente
launched a short entertainment show called High Above
the Clouds in China in December 2020, featuring guests
such as female professional snowboarder Cheng Shuang
and the winter sports ambassador Shi Yilong. The show previously overlooked LGBTQ+ community, which has
depicts them shopping for Descente gear and trying great creative potential and spending power. Over
beginner activities on the slopes. Many WeChat followers the recent years, representative communities such as
commented that they were looking forward to seeing the Shanghai Pride, Shanghai Queer Film Festival, and Beijing
next season of the show. Queer Chorus have been on the forefront to champion
diversity and raise awareness about shifting gender
On the luxury side, Dior opened a pop-up at the Shanghai
norms, despite a myriad of challenges. Through events
luxury mall Plaza 66 for its first men’s skiwear capsule,
consisting of film screenings, job fairs, forums, and even
which was a collaboration between Dior, Descente, AK
a road race, Shanghai Pride, which abruptly announced
Ski, and POC. The local campaign was shot at the urban
the cancellation of all future events in August 2020 after
ski training school SNOW51 and featured Dior’s China
12 years of running, connected members within the
ambassador Chen Feiyu.
LGBTQ+ community and helped others to learn about
The Bottom Line Whether through events (offline) challenges faced by this under-represented group.
or streaming shows (online), brands need to meet
“Pride has a lot of different meanings for different
consumers where they spend their time so they can
people,” the event’s organizers said in the statement
sample branded products in immersive scenarios.
following the cancellation. “For us, it has always been
LGBTQ+: Local Brands Seep Inclusivity into Products about showing our community that not only is there
and Campaigns nothing wrong with who we are, but that our identities
and the people that we love are worth celebrating.”
When consumers need to express their identities, Although the organizers did not disclose any reason for
domestic brands can shine by showing their knowledge the shutter, many supporters on Weibo suspected that it
of these scenes. Given their cultural advantage, local was due to political intervention.
brands have been more daring about embracing the
Despite an encouraging development in LGBTQ+ rights
at the end of 2019, as a body of the country’s highest
law-making institution publicly acknowledged petitions
seeking to legalize same-sex marriage, the Chinese
Number of skiers Number of skiers government is still known for having a closed-off stance
in China in 2019 in China in 2020 on these issues. That explains global brands’ restraint
19.7m 20.9m in this area. In fact, Cartier’s Chinese Valentine-themed
ad faced a backlash from both sides over captioning a
seemingly gay couple as expressing “father-son” love.
Yet, local brands like cosmetics sellers HEDONE and
Bosie, are acting as agents of change and are sending
Source: Vanat inclusive messages to their potential Millennial and Gen Z19
consumers. One important thing to note is that
although certain local brands have succeeded in
connecting with the LGBTQ+ community and their
allies, they are not putting out activist-like slogans or
directly pointing to a certain community. Instead, they
are showing subtle support through progressive visuals,
content, and models.
The C-Beauty brand HEDONE has taken the lead in
creating inclusive social conversations. Intending to
represent young Chinese consumer identities, the two-
year-old brand launched Existence, a series of lip glosses
inspired by the seven sins of Catholicism. The “Closet”
dark purple lip gloss, worn by a man in the video launch
campaign, symbolizes LGBTQ+ people whose sexual
orientation or gender identities are a secret. The brand
also featured members of the LGBTQ+ community
in its product campaigns over the years — without
highlighting their identities — which was well-received
by social followers.
When it comes to clothing, China’s first unisex brand,
Bosie (founded in 2018), has been celebrated by a
dedicated Gen Z following. In May 2020, the brand told
local media Luxe that 70 percent of its main customer
base was born after 1995, and 20 percent of them are
under 20. There are also many LGBTQ+ consumers
behind the brand. Aside from young consumers, Bosie
has appealed to the capital market, and it closed three
rounds of investment within two years. KEY TAKEAWAYS
The Bottom Line Brands should be authentic in • Tapping into a once largely-
connecting with LGBTQ+ people and their allies. In
ignored audience takes courage and
a culturally sensitive market, brands should express
encouragement and support for the community in more experimentation, and luxury is doing that
nuanced ways. with gamers. The return-on-investment
with this group is still unclear, but brands
§
might have to get there first, so they won’t
Both global and local brands need to stay alert to rising have to wait in line later.
creative communities and market responses in a post-
COVID-19 retail environment since the mainstream • Whether through events (offline) or
China market has become increasingly saturated with streaming shows (online), brands need to
competition. meet consumers where they are spending
It is important to focus on an existing target audience, their time and allow them to try products
but, according to Knight, preferences can change rapidly within immersive scenarios.
in China. “This is a generation that values experience and
• By 2021, there will be certain areas in
experimentation above all else,” he said. “Their natural
curiosity leads to a level of fickleness in their brand
which domestic brands are sure to fare
loyalties that are far greater than in previous generations. better than their global counterparts, such
And if brands become complacent and fail to innovate in as the culturally sensitive topics of sexual
a way that excites their audiences, they risk irrelevance.” orientation or gender identity.20
About
TONG
TONG is a cross-cultural consultancy, creative agency, and social
commerce platform. We inform, communicate, and connect brands
with China’s new generation of influential consumers. As a team of
bilingual experts, we are driven by research, innovation, and passion
for Chinese consumer culture. Our projects focus on surfacing unseen
attitudes and behaviors, tracking emerging trends, and harnessing
market shifts in order to push into new creative and digital frontiers
for organizations such as BAFTA, Chelsea FC, Estee Lauder, Heathrow
Airport, and Fortnum & Mason.
For more information about TONG, please reach out to co-founder
Adam Knight at adam.knight@tongdigital.com.
The Jing Group
The Jing Group — which includes Jing Daily, Content Commerce Insider,
China Film Insider, MOVE THE MIND, Jing Travel, and Jing Culture &
Commerce — is one of the most trusted English-language sources
of news and information about global trends in culture, technology,
and the business of luxury and fashion, including Chinese culture and
commerce, for institutions, companies and professionals worldwide.
To explore additional content from the Jing Group publications
featured in this white paper, please visit:
• Jing Daily
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For Jing Group inquiries, please reach out to contact@jingdaily.com.
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