China's First Shopping Spree after COVID-19: How Do Brands Breakthrough the Crisis - Understand People Inspire Growth
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Understand People
Inspire Growth
China's First Shopping Spree
after COVID-19: How Do
Brands Breakthrough the Crisis
2020.07
Content
01 Introduction
02 People
03 Insights Across Eight Strategic Consumer Groups
07 Utilize the Fan Economy Across All Consumer Touchpoints
11 Leveraging Users Life Cycle for Precise Customer Operation
14 Product
15 Explore New Needs, Embrace New Trends
19 Place
20 Marketing for the “New Normal” of COVID-19: Livestreaming eCommerce
26 O2O - Winning Retail Model for a New Era
29 Exploring New Opportunities in eCommerce: Social eCommerce
33 Conclusion
37
Introduction
The curtains have closed on the mid-year 618
shopping festival. Unlike in previous years,
this is the Chinese consumer goods industry’s
first shopping festival following the Covid-19
pandemic for the first half of the year. This year
618 is not only an important signal to re-activate
consumers but also an essential time for brands
to accelerate their online transformation in the
post-pandemic period.
As in previous years, brands and eCommerce
platforms began preparing for the shopping
festival two months in advance. They dived into
different consumer groups and developed specific
products for target consumers. Diverse marketing
approaches including celebrity live streaming,
galas and coupons were launched to drive traffic.
Kantar Consulting will interpret the consumer
goods market in this post-pandemic period using
three dimensions - “people, product and place”,
to help decode how manufacturers identify
opportunities.
1
People
As the first shopping spree after We analyzed the portraits,
the COVID-19 pandemic, brands preferences, and shopping
that can win consumers quickly behaviors of the fans who are
will get a head start over their driving the “Fan economy”
competitors. phenomenon. We deep
dived the top eCommerce
Based on the concept of eight platforms’ latest developments,
consumer groups proposed summarized fan economy
by Alibaba in 2019, Kantar activations, and share
Consulting further investigated successful or creative marketing
and grouped these consumer case studies.
segments into three clusters:
Backbone, New Power, and After analyzing the target
Blue Ocean consumers. consumer groups, Kantar
The survey insight can help Consulting will introduce the
brands understand consumer operation mechanism of the
demographics, values, lifestyle, customer life cycle on Alibaba
category needs, digital and JD.com and share case
touchpoints and channel studies that can help brands
preference. achieve precise customer
operations and improve
customer operation efficiency.
2
PEOPLE • PRODUCT • PLACE
Insights Across Eight Strategic Consumer Groups
Insights Across Eight Strategic
Consumer Groups
Kantar Consulting leveraged China MONITOR’s data and methodology, which is dedicated to the Chinese market, to conduct
research on 4,434 18+ year old consumers located in different Tier 1 to 5 cities. We divide Chinese consumers into eight groups:
Small-Town Elite, Urban GenZ, Urban White-Collar, Model Mother, Urban Middle Class, Urban Blue-Collar, Urban Elderly
and Small Town Uncle & Elder.
Eight strategic consumer groups - deep-dive Note: All entries are ranked by penetration; Bold means above average penetration of overall group
Source: Kantar Consulting Analysis, China MONITOR
Small-Town Urban Urban Urban Small Town
Urban GenZ Model Mother Urban Elderly
Elite White-Collar Middle Class Blue-Collar Uncle & Elder
18-35 y.o. 18-24 y.o. 25-35 y.o. Pregnant or 25-35 y.o., 25-50 y.o. >50 y.o. >35 y.o.
DEMOGRAPHICS
with a child
Below T4 cities T1/2/3 cities T1/2/3 cities
PEOPLE • PRODUCT • PLACE
Insights Across Eight Strategic Consumer Groups
These Eight strategic segments of Chinese consumers highlight the differences across the following dimensions: demographics,
values, category, touchpoints and channel preference etc. These segments will assist the brands to better understand their target
consumer groups and their preferences in products and channels, so that brands can optimize their management of consumer
assets.
Below is the detailed visualization of the eight groups:
SMALL-TOWN URBAN
ELITE GENZ
Small-Town Elite are those born after 1985 living in Tier Urban GenZ are young people born after 1995 living in
4 and below cities. They have considerable disposable Tier 1-3 cities. Known as digital natives, they favor
income, enough leisure time, and hence eagerly follow eCommerce shopping, social media, and e-learning.
the latest urban trends. They still care about the cost and As they grew up in comfortable one-child families, most of
performance of daily goods and have time to compare the them have strong purchasing power and abundant pocket
prices between different eCommerce platforms. They have money. The desire for new knowledge and adventure is
shown a strong interest in food, cosmetics and consumer always important to this generation. Unlike their older
electronics, among other categories. They look for premium counterparts, they value trendy items and major fashion
options in these categories, as they bear little financial burden brands, and often opt for limited-edition products over
in their lives, particularly. on housing spend. When they shop, established brands. They are also keen to create interest-
they often use group purchase with family and friends, and oriented online social communities around topics such
always appreciate others’ recommendations, as they highly as ACG and electronic games. Bilibili is one of the popular
value personal relationships. The slow pace of life also enables platforms with China’s Generation Z. Not only are there a
them to spend more time on entertainment activities such as lot of Bilibili users, but they’re also deeply engaged, both
short videos, live-streaming, mobile gaming. with the content itself and with fellow users.
URBAN MODEL
WHITE-COLLAR MOTHER
Urban White-Collar are consumers in their early 30s Model Mother are women who are either pregnant or
who are well educated and live in Tier 1–3 cities. They work have children under the age of 12. They live in Tier 1-3 cities
hard to make sure their careers advance smoothly. Since and are concerned about raising a healthy family while
they work in a fast-paced environment and greatly value taking great care of their careers, health and beauty. They
convenience, they prefer online shopping, especially the are the main shoppers for their families, and to achieve a
O2O platform with home delivery service. Young and better balance between work and family, they are willing
energetic, they are always open to buy and try newly to pay to enjoy the convenience and quality Cross-
launched SKUs/ brands recommended by social Apps like border eCommerce provides. Babytree and RedBook, are
Weibo and RedBook. Categories like cosmetics, skincare the most popular online social communities for them to
and paid knowledge are particularly popular as the participate in and engage across a wide variety of topics
consumers are driven by their desire for self-improvement. such as sharing user experience and safe ingredients on
Although they have a high income and have high specific products.
consumption and living cost, they are also called the
‘invisible poor’.
4
PEOPLE • PRODUCT • PLACE
Insights Across Eight Strategic Consumer Groups
These Eight strategic segments of Chinese consumers highlight the differences across the following dimensions: demographics,
values, category, touchpoints and channel preference etc. These segments will assist the brands to better understand their target
consumer groups and their preferences in products and channels, so that brands can optimize their management of consumer
assets.
Below is the detailed visualization of the eight groups:
URBAN URBAN
MIDDLE CLASS BLUE-COLLAR
Urban Middle Class are consumers who are financially Urban Blue-Collar are hard-working and financially
stable and are typically in the 35-45 age range. They independent consumers in Tier 1–3 cities but are less
live in Tier 1–3 cities and work in the corporate middle or affluent consumers. Most of them are from industries such
senior management. They often socialize within a family as catering, transportation and retail and have a heavy
environment, such as weekend drinks with friends and workload. Living in top-tier cities makes them no stranger to
birthday parties of their young children. They are rational, the online shopping channels, but with lower income than
and sometimes they use search engines and social media the Urban White-Collars or Urban Middle Class groups, they
to do their research before shopping. They have a premium are interested in cost-effective products when shopping
taste in categories with daily usage, such as high-end online. Most of them live in the city suburbs, and
fashion apparel or buying imported health supplements for therefore spend many hours commuting, making online
family members. They value quality more than price. For video and mobile gaming Apps and subscriptions one of
example, they prefer brand official stores over other the few luxuries that help them relax and pass the time
types of merchants when shopping on eCommerce, and during their long commutes and spare time.
for offline shopping, they often go to a new retail store
such as Hema.
URBAN SMALL TOWN
ELDERLY UNCLE & ELDER
Urban Elderly are consumers born before 1970 living in Small-Town Uncle & Elder are older than 35 from Tier 4 or
Tier 1–3 cities. They are emotionally dependent on their below cities. Due to the slow pace of life, they have large
children, but family and friends are important to them. amounts of leisure time, during which they are able to
Many are retired with substantial pensions and now watch online short videos and TV series. As they value the
desire a good quality of life for their retirement, sense of belonging that acquaintances bring, they spend
making them financially capable of meeting their a great deal of time participating in social activities
consumption desires and needs. They are concerned in the neighborhood such as dancing in the square.
about their health and actively engage in activities Social eCommerce platforms, like Pinduoduo, are
such as healthcare TV programs, offline nutritionists’ also popular. Whilst most of purchases are via the offline
community and buying health supplements. Their online channel, and they are most interested in cost-effective
shopping behavior is yet to be developed, as most of them products due to their limited income, they are still willing
still prefer shopping from offline stores. However, they to spend money for their family members, buying, for
appear to be interested in buying on social eCommerce example, imported products from cross-border eCommerce
platforms (e.g., Pinduoduo), where their friends and platforms.
relatives most likely trigger the purchase.
5
PEOPLE • PRODUCT • PLACE
Insights Across Eight Strategic Consumer Groups
Based on the above eight types of consumers’ Consumption Premiumization Potential and eCommerce penetration we can
further cluster them into three groups: Backbone consumers (Urban White-Collar, Urban Middle Class and Model Mother); New
Power consumers (Small-Town Elite and Urban GenZ); and Blue Ocean consumers (Urban Elderly, Small-Town Uncle & Elder
and Urban Blue-Collar). Brands and platforms should have different strategic positioning for each cluster and choose matching
categories and corresponding marketing strategies to establish contact with these distinct groups of people.
Eight Strategic Consumer Group Matrix
Consumption
Preiumization Potential Avg. penetration
High
Backbones
Urban
White-Collar
Model Mother
Urban
Urban GenZ Middle Class
Small-Town
Elite New Power
Urban
Blue-Collar
Urban Elderly
Small Town
Uncle & Elder
Low
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
eCommerce penetration
Source: Kantar Consulting analysis, China MONITOR
6
PEOPLE • PRODUCT • PLACE
Utilize the Fan Economy Across All Consumer Touchpoints
Utilize the Fan Economy Across
All Consumer Touchpoints
Fan Economy is prevalent; “career fans” increase In the past six months, these career fans have achieved many
impressive records:
According to Sina Weibo 2019 Celebrity White Paper,
fans of entertainment celebrities on Weibo reached 19.2
billion in 2019, an increase of 2.5 over the previous
year. Furthermore, over 60% of Weibo active users follow After Jackson Yee 易烊千玺 (84.91 million
entertainment related content. Weibo fans) became the Armani makeup
spokesperson, the related topics and content
Within the Weibo fan base, women account for more have been viewed over 100 million times and
than 80%, and those born post-90s and GenZ have over 1 million online discussions. Multiple
account for around 83%. As far as the fan features colors of Armani lipstick were sold out.
are concerned, "mom fans" and "girlfriend fans", who
are known for their concern and love of their celebrity
idols, remain mainstream. They regard idols as the main
source of their emotional sustenance and care about YiBo 王一博 (33.84 million Weibo fans) recently
their idols like family members. Meanwhile, "career fans" became the spokesperson of 燕京. In "燕京 U8
are growing fast and have accounted for 40% of the Love Can" campaign, sales exceeded RMB 1
fan population. These fans care about their idols’ career million within the first 120 seconds and the
development, committed to building a better reputation product became No.1 in both beer sales value
for them, and support them to gain more resources. and volume for 24 consecutive hours.
This means that, apart from watching their idols’
TV shows or films, the fans are also highly active in
supporting their idols’ social media campaigns and brand KUN 蔡徐坤 (30.74 million Weibo fans) became
endorsement activities. They are willing to buy endorsed the overseas spokesperson for Kose. The
products - a key approach to help idols. Through related Weibo topics exceeded 100 million
their presence and purchases, fans hope to generate views within 6 hours after the announcement
considerable social buzz and sales to demonstrate the and the brand recorded over RMB 10 million
appeal and commercial value of their idols and strive sales within 7 hours.
for more commercial opportunities.
2018-2019 Top 5 types of fans of Entertainment Celebrities How fans support their idols?
2018 2019 Watch idol’s films 62.4%
Buy products with idol being
the brand ambassador
56.1%
1 2 3 4 5 Buy idol’s albums and
related products
52.5%
16.8% Engage in topic discussion
47.7%
57.7% 55.4% via social media
Buy products associated
49.1% 51.9% 51.0%
with idol (e.g. magazines)
38.1%
42.5% 43.9% 42.9%
35.3% Buy idol’s concert tickets 34.8%
27.1% Attend idol’s concert 22.9%
Buy gifts for idol 19.2%
Fundraiser 16.5%
Participate in idol’s offline
Rational Mom Fans / Wife Fans / Career Appearance 12.4%
events in different cities
Fans Girlfriend Fans Sisters Fans Fans Fans
Data source: Sina Weibo 2019 Celebrity White Paper, Source: QuestMobile
Question: What kind of fans are you? N=7,235
7
PEOPLE • PRODUCT • PLACE
Utilize the Fan Economy Across All Consumer Touchpoints
Platforms attract fans to differentiate themselves in big promotions
In 618, Tmall gathered more than 300 celebrities to join livestreams and provided celebrity exclusive pages for them. In the
livestreams, celebrities could provide live shows and entertaining activities, present brand campaigns and promote
products. This helped brands sell products more efficiently and to better engage with fans by providing celebrity themed goods.
JD.com has cooperated with various brands in this 618 and upgraded its 618 Celebrity Store Manager campaign. In this
campaign, 20+ brands launched celebrity themed gift boxes, exclusive celebrity interview videos, limited edition posters
and opportunities for fans to support their idols in popularity ranking competition. Such campaigns strongly link fans to
their idols and convert that to purchase.
Tmall Celebrity Intelligence Station and JD Celebrity Manager Activity in 618
…
Kris Wu Zhao Lusi Victoria Song Lu Han Hua Chenyu Zhu Yilong Ying Er Leon Zhang Justin Yuan
Clear LUX PHILIPS Crest L'OREAL WEICHUAN Mead Avene Abbott
Lumea PARIS Johnson
Leo Chen Gulnazar Zheng Shuang Jiang Shuying
Clear PHILIPS Aussie Lancôme
…
Dee Hsu Arthur Chen Li Xian Victoria Song Ella Chen Xin Zhilei Liu Wen Chen Xiao
Clear OMO LHP Gemice Chun Zhen Pampers L'OREAL Bluemoon MG
PARIS
Song Weilong Allen Ren Nana Xie Stephy Qi Lay Zhang Zhou Dongyu
MAGNUM LUX PRO-KIDO Deluxe Tide Lancôme
Source: Kantar Consulting research
8PEOPLE • PRODUCT • PLACE
Utilize the Fan Economy Across All Consumer Touchpoints
In 2020, how can brands better leverage the Fan Economy?
The booming Fan Economy has brought significant business opportunities for brands through cooperating with celebrities.
Fans, however, are overwhelmed and tired of ordinary celebrity campaigns. Faced with the dwindling benefit of fans and the
decreasing emotional engagement of marketing campaigns, brands need to re-consider how to engage for maximum impact.
They need to understand fans’ features, their unique culture, and adopt their emotional character into brand communication
and campaign design, to unlock fans’ purchase power and convert into sales.
Fan Economy Activation Roadmap
Roadmap
Publish Promote Generate Encourage Recommend
Information Content Traffic Consumption Repurchase
Platform
Customize Respect fans Increase brand With a deep Ongoing
content and culture and exposure on understanding consumer
activities by interest based eCommerce of fan’s demand, interaction after
selecting the on the their platforms by brands customize purchase, and
celebrity that can community using celebrity the products maintain the
fit brand culture insights, related product in a way that trend via social
and initiate content, and matches the media to have a
interactions in ultimately characteristics of wider reach
a creative and improve sales the idol
sincere way to conversion
impress fans
Brand official Generate hot Pop-up ads Customized idol- Unlock benefits
accounts in topics via Weibo, theme packaging (e.g., vouchers) by
social media (idol and encourage CPC ads sharing the order
endorsement fans to create their Limited gifts and placed
information/event own content (i.e. Idol theme product boxes
warm-up e.g. UGC) and activate page Receive coupon by
Content
endorsement vote, their sharing Idol live stream sharing product
endorsement quiz) Idol live stream review and
Continuous fans Customized subscribe to store
Subscription to interaction via Idol store manager benefits (e.g.
idol social media brand’s official online/offline fan Share product
accounts social media … meetings, exclusive usage experience
accounts with interaction channel via external social
Secondary sharing exclusive news with idols) media platforms
through fans group
Recommendation
from celebrity’s
official social
media account
Product
recommendation
associated with
celebrity through
live shows
Source: Kantar Consulting research from fans interviews
9PEOPLE • PRODUCT • PLACE
Utilize the Fan Economy Across All Consumer Touchpoints
Industry Case Studies
Ambrosial “超燃应援站” campaign
invited fans to co-create products
Ambrosial launched "超燃应援站" 1 2
campaign in May, inviting fans of the
brand’s four spokespeople (KUN 蔡徐 Ambrosial official Weibo Fans enter WeChat public account “Ambrosial Food
坤, YiBo 王一博, Dilraba 迪丽热巴 and account announced new identity Academy” and open “Idol Customization Module"
Angelababy 杨颖) to design unique of fans - “Creative Director" to vote for idol’s customized flavor, slogan and icon
Ambrosial products and celebrity
themed goods.
Ambrosial followed the latest trends
among fans and gave fans the title
of “Creative Director” of Ambrosial. It
drove the brand’s Weibo followers into
the brand’s official WeChat account to
vote for exclusive flavors, slogans,
and icons for their idols, the four
spokespeople of Ambrosial. Meanwhile,
it encouraged fans to spread the
campaign and vote more. Fans could 5 4 3
receive gifts such as idols’ secret
gifts, lucky draw opportunities and Introduce hand drawing Ambrosial Weibo fans welfare: Ambrosial Weibo fans
idol-related products if their voting bottle design event to Fans can post their comments on welfare: Reach voting
reached a certain level. Ambrosial also stimulate fans creativity Weibo and post screenshots of goals to unlock exclusive
collected unique bottle designs from the voting page to win the lottery rewards for fans
fans on Weibo. The voting results were
used to create an exclusive product for
each spokesperson.
Ambrosial "超燃应援站" campaign
highly valued fans’ preferences and
their vote-for-ranking culture.
It turned fans of its spokespeople
from ordinary consumers to
brand co-creators, to create
unique and exclusive products for
their community and strengthen
emotional links with them. Thus, 6 7
the interactive campaign makes
celebrities’ fans become the brand’s Ambrosial Weibo Release customized
advocators and promotors.
?
announced voting results idol products
……
KUN 蔡徐坤 YiBo 王一博
Idol taste: Mango Idol taste: Pineapple/Parsley
Slogan: 披巾成王，伴坤远航 Slogan: 不负少年心气，为爱博此一生
Icon: Icon:
Source: Kantar Consulting research
10PEOPLE • PRODUCT • PLACE
Leveraging Users Life Cycle for Precise Customer Operation
Leveraging Users Life
Cycle for Precise Customer
Operation
As traditional eCommerce platforms reach high levels of penetration, their organic traffic has stagnated and these companies
have started shifting their focus from new customer recruitment to customer operation. They are trying to improve
customer shopping frequency and value across the brand life cycle by offering a customer-centric shopping experience.
The two digital giants, Alibaba and JD.com, both launched customer lifecycle operation tools and platforms to empower brands’
customer operations.
Alibaba JD.com
Alibaba promoted its Customer Lifecycle Value Growth JD.com introduced the customer lifecycle model by tracking
Engine (CLV Engine) based on in-site customer touchpoint customer’s behaviour data under each category based on a
search recommendations, along with customer needs time series.
changes during the lifecycle.
According to the model, JD.com divided the customer
By leveraging functions such as “data analysis”, “smart lifecycle into seven stages: Low potential, High potential,
consumer group identification” and “strategic Reach, Grow, Mature, Decline and Loss. They combine
marketing”, CLV Engine helps brands to match suitable this with targeted insight analysis to help brands review
products, contents, short videos and benefits to different their customers more efficiently.
stages across the customer lifecycle. It can ultimately
improve new customer recruitment rates and maximize the
value of each stage for the customer throughout the lifecycle.
CLV Engine JD Customer Lifecycle
New Supply New Customer Thinking Customer value
To offer occasion- To build customer
based solution thinking with
customized product
Low High Reach Grow Mature Decline Loss
potential potential
New
Customers
Potential Regular
Customers Customers
To match product, content, benefit
and channel to different customer groups
Customer Group Strategic
Data Insights
Identification Marketing
Time
Some leading digital marketing pioneers have already started exploring this field. They cooperate with Alibaba and JD.com
in data analysis and customer operation strategy to strengthen precise marketing, and the goal of achieving growth for both
manufacturers and platforms.
11PEOPLE • PRODUCT • PLACE
Leveraging Users Life Cycle for Precise Customer Operation
Industry Case Studies
Before the 618 shopping festival this year, Unilever conducted customer research and diagnosed potential issues. Meanwhile, the
company worked closely with Tmall and JD.com to further identify customer opportunities and facilitate product and occasion
strategies based on CLV Engine and the customer lifecycle model.
Develop a differentiated customer strategy for Tmall to improve conversion within target group
New customer acquisition: attract new customers through short video content and new member benefits
Before the big promotion, Unilever launched the “Sky Star” program on Taobao by displaying entertaining short videos.
The creative and interactive content was eye-catching and helped Unilever brands convert new customers to fans
quickly and gain the maximum amount of in-site exposure and traffic. The short videos varied and included the
“Inspiration Lab” product introduction for Dove shower foam, creative product reviews, and celebrity Q&A sessions. The
product links were embedded in these short videos and enabled customers to purchase the products directly. Meanwhile,
Unilever attracted new customers to join store membership by offering them exclusive benefits.
Retain existing customers: fully engage active customers and explore the different values that customers who are in the
Purchase and Loyalty stages bring to the brand.
To maintain the engagement with both new and active customers, Unilever used the in-store live stream to offer
information about new products and cross-brand purchases as a way to increase customers’ re-purchase
frequency and basket size. Meanwhile, live streaming audiences were also encouraged to share their vouchers, so that
it helped to bring in more new customers. For the current customers, the Unilever Tmall store made every Wednesday
member’s day, attracting members to the store by creating games and providing additional benefits.
A (Awarenes) I (Interest) P (Purchase) L (loyalty)
Potential Customers New Customers Active Customers Silent Customers
Sky Star program (Short video) Store 2.0 & In-store live stream
Product recommendation Understand brand and product with improved customer interaction
CRM: attract new customers to join CRM: Wednesday as member’s day CRM: Methods to wake
membership with exclusive benefits to offer exclusive benefits up silent customers
Source: Kantar Consulting analysis
12PEOPLE • PRODUCT • PLACE
Leveraging Users Life Cycle for Precise Customer Operation
Industry Case Studies
Before the 618 shopping festival this year, Unilever conducted customer research and diagnosed potential issues. Meanwhile, the
company worked closely with Tmall and JD.com to further identify customer opportunities and facilitate product and occasion
strategies based on CLV Engine and the customer lifecycle model.
Collaborate with JD.com to deconstruct customer lifecycle and drive brand growth
Unilever also partnered with the JD supermarket operation team to identify different brands’ pain points and opportunities
among different customer groups across their purchase cycle to shape their precise operation strategy.
For Unilever brands Lux and Comfort, the proportions of customers across the different stages of the lifecycle vary greatly.
For example, Lux has many new customers in the “Reach” stage, but only a small percentage convert to the “Grow” stage.
Research shows that the product detail page, shopping cart and coupons are the major customer touchpoints. Thus,
the two brands developed separate strategies based on each brand’s user structure They then matched products, benefits
and occasions with customer needs across their lifecycle. Examples include increasing brand exposure in the JD super
coupon section to attract new customers, and pushing text messages to customers who have added products to their
shopping cart without placing the order, in order to increase the sales conversion.
Brands’ user life cycle distribution of Lux / Comfort
Lux Shower category Comfort Laundry Category
High Introducing Growing Mature Declining High Introducing Growing Mature Declining
potential potential
Source: Kantar Consulting analysis
13Product
Although the pandemic has particularly after the pandemic.
produced different degrees Brands should continue to
of impact by category, and explore and launch new
consumer behaviors and products to meet the changing
product demands are gradually needs of consumers and
being reshaped, desire for a achieve stable and long-term
better life will not change. growth.
Consumers hope to improve
their quality of life through After investigating the
high quality and cost-effective consumer goods market in the
products, whilst still pursuing a post-pandemic period, Kantar
more convenient and efficient Consulting will combine various
service experience. At the brand case studies to interpret
same time, they also pay more and summarize the six new
attention to the emotional trends impacting consumer
value of brands and products, goods: healthy lifestyle, efficient
implying that more people lifestyle, sensory enjoyment,
will favor products that can fashion and culture, novelty and
provide emotional value as well exclusivity (lower-tier city).
as improve their physical or
mental health. In the long run,
successful product innovation
should not be underestimated,
14PEOPLE • PRODUCT • PLACE
Explore New Needs, Embrace New Trends
Explore New Needs,
Embrace New Trends
After years of rapid development of both the Chinese economy and the eCommerce market, consumers’ mindsets have
developed and their demands in terms of product preference, needs, and geography have become more diverse than ever.
Consumers no longer consider price the primary driver for their purchase; although they still value cost-effective and functional
products, they also seek emotional, psychological, and social benefits associated with the products.
We summarized the following six consumer trends in the post-pandemic period based on the new and popular products from
various categories and brands:
Trend 1: Healthy Lifestyle
The pandemic at the beginning of this year prompted a rapid Meanwhile, the pandemic has also made more consumers
increase in demand for disinfectant and sterilization products. realize the importance of managing their health. With
Chinese consumers have become so used to this more an upsurge in sports activities and a wave of “retaliatory
hygienic lifestyle that even after things returned to normal, consumption” the sales of sports products, fitness clothing,
the need for such products remained strong. According to the and sports equipment have grown rapidly. An example is
survey conducted by Kantar China MONITOR, around 80% of sports brand MaiaActive, which has become more popular
consumers said they would pay more attention to personal among young females due to its combination of comfort and
health after the pandemic and carry out long-term measures to design.
protect the health of themselves and their families. During
the pandemic, some brands responded quickly to the market
changes and launched new disinfectant and sterilization
products (such as disinfectants and sterilization appliances).
Zhiche Maia Active Midea
Antiseptic Liquid Sportswear Low-sugar Rice Cooker
TA: Urban GenZ Urban TA: Small-Town Urban GenZ
TA: Urban Model Mother
White-collar Elite White-collar
Urban Urban
Model Mother Model Mother Urban Elderly
White-collar Middle Class
Effective disinfection: Sports beauty: Low-sugar function:
Proven effective technology to Product development based To lower sugar level by 45%
kill germs, suitable to use on on Asian female’s body, and increase resistant starch
skin and surface of objects fashionable with ultimate by 18%, it helps to block fat
comfort and control blood sugar level
Good packaging with fresh
smell
Omo Disinfectant 59s Milk Bottle Midea
Laundry Sanitizer Disinfection Cabinet Air Purifier Fan for Baby
TA: Urban Model Mother
TA: Urban Model Mother
TA: Urban Model Mother
White-collar White-collar White-collar
Urban Urban Urban
Urban Elderly
Middle Class Middle Class Middle Class
Deep sterilization: Effective disinfection: Toxic-free Purification and degerming:
48-hour deep sterilization to and non-radiative LED UV light Using net ion free radical air
kill germs, effectively removes that can remove 99.9% of germs purification technology to
99% germs hidden in clothes effectively eliminate bacteria
Multi-function: Offers both
in the air
storage and disinfection functions
for various products, e.g. clothes,
electric products, make-up tools
Source: Kantar Consulting analysis
15PEOPLE • PRODUCT • PLACE
Explore New Needs, Embrace New Trends
Trend 2: Efficient Lifestyle
As the lives of Chinese consumers gradually return to Therefore, increasingly more products are introduced with
normal after the pandemic. With increasingly busy lifestyles multi-functional, two-in-one features, or time and energy
consumers from Tier 1 and Tier 2 cities, eagerly seek products saving advantages, which are welcomed in today’s market.
that can offer efficient solutions and immediate results. They
seek convenience through science and technology and make
full use of leisure time to improve their quality of life and work-
life balance.
Yuze Quaker SUPOR Midea
Ampoules Milk-Shake (Meal Replacement) Electrothermal Lunch Box Multifunctional Vacuum Cleaner
TA: TA: TA: TA:
Small-Town Small-Town Urban
Urban GenZ Elite Elite White-collar
Urban Urban
Urban GenZ Model Mother
White-collar White-collar
Urban Urban
Model Mother White-collar Model Mother Middle Class
Ultimate skincare: Stop hunger: All-in-one: Two-in-one:
Triple hyaluronic acid, triple ceramide High nutrition and low calorie, can Include functions such as steaming, Combination of suction and wipe with
and triple plant extracts, synergistically maintain satiation for a long time. It’s braising and stewing efficient dust removal, offering deep
enhance skin glossiness and elasticity easy to carry, work as quick meal for cleaning, and increasing housework
within 7 days sports fans and those who often work efficiency
overtime and
Source: Kantar Consulting analysis
Trend 3: Sensory Enjoyment
In addition to focusing on product value, the new generation of packaging design. Products with a unique taste or flavor, and
consumers wants a multisensorial experience that stimulates new concepts are also appealing to consumers. For smell,
vision, taste, smell, hearing, and touch. Consumers they are fond of long-lasting indulgent and niche fragrances.
expect products to bring sensory stimulation for pleasant Furthermore, they pursue authentic and stereo sound effects.
physical and mental experiences and enjoyment. Visually, Consumers are after products that can offer both ultimate
Chinese consumers pursue highly visual display and appreciate comfort and ease their pressure after a long day of work.
Dove & HEYTEA Kustie YOUPIN Yongpu
Shower Foam Petal Shower Gel Smart Pillow Dried Peach Oolong Coffee
VISION: SMELL: TOUCH/SOUND TASTE:
TA: TA: TA: TA:
Small-Town Small-Town Urban Urban GenZ
Elite Elite White-collar
Urban Urban
Urban GenZ Urban GenZ Middle Class White-collar
Urban Urban
White-collar Middle Class
Visually appealing: Long-lasting fragrance: Comfortable experience: Visually appealing:
“milk foam + peach juice" good- Developed by the professional Nano graphene material, infrared “milk foam + peach juice" good-
looking product design with white fragrance company to offer long heat compression therapy to improve looking product design with white
peach fragrance lasting fragrance feature cervical spine problems; Wireless peach fragrance
Bluetooth connection with bone sensor
to offer music for better sleep quality
Source: Kantar Consulting analysis
16PEOPLE • PRODUCT • PLACE
Explore New Needs, Embrace New Trends
Trend 4: Fashion & Culture
Products with Chinese cultural themes and ACGN (e.g. On the other hand, the post-85s, post-90s and post-00s
Japanese Anime) are becoming a phenomenon in China. With were born in the era during China's rapid development. They
the youth gradually becoming a new force on the internet, have an inherent sense of national pride; they appreciate
people are becoming more aware of what was considered and are willing to pay for products with traditional cultural
niche (e.g. ACGN) before. Young fans of fashion and modern imprints. According to Kantar’s China MONITOR survey,
art are willing to pay for this type of themed product to express young people, especially young people in small towns have
their uniqueness and feel a sense of belonging to their circle. a growing sense of national pride and are willing to buy
products with Chinese characteristics. If these products
come with an appealing design, they help brands attract
young customers and new fans.
ANTA & Mulan Pepsi Cola & People’s Daily PERFECT DIARY Old Spice & ONE PIECE
Dad Shoes New Media Limited Gift Box Koi Eyes Shadow Male Shower Gel
TA: TA: TA: TA:
Small-Town Small-Town Small-Town Small-Town
Elite Elite Elite Elite
Urban GenZ Urban GenZ Urban GenZ Urban GenZ
Urban Urban Urban Urban
White-collar White-collar White-collar White-collar
Model Mother
Oriental Characteristics: Joint brands: Koi elements: Unique style:
Mulan special edition with combination A joint product design from Pepsi and Koi color as a symbol of luck and good Offering lasting fragrance and
of the tenderness of magnolia and the People’s Daily newspaper to promote wishes moisturizing features with stylish
trendiness of “Dad Shoes” the spirit of bravery and dedication package
among Chinese youth
Source: Kantar Consulting analysis
Trend 5: Novelty
Most young consumers have a natural curiosity. They pursue
fun, surprises and emotional benefits, and they are willing to
POP MART
pay for their interests and for emotional connections. They Online Drawing Box
would empty their wallets for "fun", "novelty" and "cute
TA:
things" to ease the pressure of their busy work and bring some
Small-Town Urban
Urban GenZ
Elite White-collar
joy to their life. Novelty:
To trigger repurchase by stimulating young
Since 2019, the ‘Secret Box’ has been popular in China and consumers’ demand towards novelty
buying it in a group is considered a new way to socialize Self-pleasure consumption:
To offer young consumers a sense of relaxation
amongst youth. The trigger behind this behavior is that the by providing products with cute design and
‘Secret Box’ psychologically satisfies young peoples’ needs of collectible value
novelty, and the brand’s iterative product updates stimulate
young consumers’ repurchases and can even make them
addicted. Meow-Meow Printer
TA:
Furthermore, products such as Starbucks’ cup with a shape of Small-Town
Elite Urban GenZ
a cat claw represent the culture of ‘cuteness’. The ‘Cute’ culture
Novelty:
triggers consumers' sympathy and affection towards products’ Designed for youth and students, small body
cute appearance, which conveys a sense of pleasure and with multiple functions including Bluetooth
connection, ink-free printing
relaxation. For young consumers, this type of product helps
them to mentally relax when facing work or academic pressure.
Source: Kantar Consulting analysis
17PEOPLE • PRODUCT • PLACE
Explore New Needs, Embrace New Trends
Trend 6: Exclusivity (Lower-Tier City)
With the competition brought by large Pinduoduo also introduced a platform Pinduoduo’s sustainable development
eCommerce platforms such as Taobao for lower-tier city consumers with has attracted the attention of many
and JD.com, Pinduoduo harvested a limited budgets and middle-aged & brands, some of which have even set up
large number of fans from lower- elderlies who are "just getting started dedicated product lines for Pinduoduo.
tier cities, who value cost-effective with online shopping". These people Brands want to expand the market in
products, by offering them good are sensitive to price and pursue cost- lower-tier cities by meeting consumers’
products at considerably lower prices effectiveness. product needs as well as offering
than major eCommerce platforms. attractive prices.
LUX Sunlight SANHO COO.N
Hand Sanitizer Landry Liquid Non-stick Pan Diapers
TA: TA: TA: TA:
Small-Town Urban Small Town Small-Town Urban Small Town Small-Town Urban Small Town Small-Town Urban
Model Mother
Elite Blue-Collar Uncle & Elder Elite Blue-Collar Uncle & Elder Elite Blue-Collar Uncle & Elder Elite Blue-Collar
Skin cleansing with long-lasting Multiple benefits: Non-stick Pan: Soft and comfortable:
fragrance Using plant ingredients to offer Non-stick pan with natural rock Strictly selected natural cotton-like
effective sterilization and mite material, and using die casting materials, adding vitamin E to the 3D
removal, fresh fragrance, and prevent process to provide anti-wear feature surface and offering the benefit of
discoloration reducing the contact area to the skin
Lasting perfume:
Use of botanical scented essential oil
Source: Kantar Consulting analysis
With the coming of a new consumption era and the challenge to find the next sales growth engine,
brands need to continually innovate and pay close attention to market trends to understand
consumers’ latest needs better and eventually create a product advantage to win in this space.
18Place
During the pandemic, the traditional eCommerce will be a norm of marketing
offline channels were blocked for use. and become a standard tool in the online
However, with fast delivery, contactless strategy of companies. Through detailed
service guarantees, and comprehensive product display, product trial and real-
fresh and personal care options, time live interaction, live streaming
emerging channels such as O2O and coordinated the relationship between
social eCommerce became consumers’ people, products and stores, and
go-to daily use channels during the broke down the barriers of production,
pandemic. It is worth noting that many operation, location and geographical
people, especially in higher-tier cities, limitations, opening a new economy.
would already have made a habit
of using these channels prior to the The pandemic has become a catalyst
pandemic. However, since the beginning for various other new retail formats.
of this year, many brands have increased Some social eCommerce platforms and
their focus on O2O. These brands not only Mini Programs that focus on the scale
have a deep insight into O2O consumers' of membership or private traffic have
shopping behavior and platform play but rapidly gained popularity. They have
are also upgrading their O2O strategies. increased their penetration among the
By actively exploring this third battlefield, lower-tier city consumers and young
besides offline and eCommerce, they people, and have laid a solid foundation
are aiding the acceleration of the digital for them to continue even after the
transformation that physical retail is recovery from the pandemic began.
undergoing. Kantar Consulting will introduce the
ecosystem, operation mechanisms,
Live streaming has exploded in 2020. relevant consumer portraits, and
Various live streaming platforms and brand layout direction of typical social
formats have become increasingly eCommerce platforms using case studies.
popular. Soon, live broadcast +
19PEOPLE • PRODUCT • PLACE
Marketing for the “New Normal” of COVID-19: Livestreaming eCommerce
Marketing for the “New
Normal” of COVID-19:
Livestreaming eCommerce
In 2019, live streaming became one of the hottest topics in China. The influence of the pandemic in 2020 further fueled its
growth, and now it plays a significant role in reviving the Chinese economy during the post-pandemic period. eCommerce
players are strengthening live streaming features on their platforms to take advantage of this new marketing tool to aid recovery
from the impact of the pandemic.
Due to the live streaming craze, China’s mid-year shopping festival has moved beyond traditional eCommerce. Some major
platforms are stepping out of their comfort zones by investing resources and money in live streaming, primarily focusing on
lower-tier cities and developing their private domain traffic. In addition, new ways of live streaming, such as using a diverse set
of hosts and occasion-based live streaming with integration between online and offline channels, help to continue the novelty
factor and buzz in the post-pandemic era.
Platforms: Live streaming competition amongst platforms is becoming increasingly fierce
Platforms are developing in more than At the end of May 2020, JD.com Furthermore, some major B2B
one direction to compete for increasing partnered with Tencent-backed live platforms such as Alibaba 1688 and
their user base. For instance, aside from streaming platform Kuaishou to JD New Channel invited hosts such as
traditional eCommerce platforms like boost its presence in live streaming. factory managers, product formulators
Taobao and JD.com, short video platforms Under the partnership, consumers were and distribution personnel to stream live
are also joining the live streaming able to make purchases directly from to the business and shop owners. The
eCommerce playing field instead of staying Kuaishou without being redirected to live streaming was mainly aimed at the
within their territory. As a result, the JD.com, which provided the delivery and platform’s promotion strategy, brand
boundaries between content platforms after-sales service for the consumers. category promotion and community
(e.g., Douyin) and eCommerce Kuaishou’s 300 million daily active users shopping guide, to help brands reach
platforms (e.g., Taobao) have blurred are expected to give the eCommerce the end users efficiently and improve
and the competition has intensified. specialist a healthy boost. channel operation efficiency.
Live streaming eCommerce overview
Traditional eCommerce Content platforms
Type
Platform
March 2016 July 2017 August 2018 November 2019 January 2017 December 2018 December 2019 February 2020
Live Live streaming Introduced JD Fashion Introduced Launched live Launched Launched Mini
Live streaming eCommerce live streaming launched live shopping cart streaming on-site shopping Program live
streaming Trial run trial run feature streaming feature eCommerce feature streaming beta
start date
2016 2017 2018 2019 2020 2017 2018 2019 2020 2021
The most Explore offline Focus on Mainly Focusing on Most Use “live S2B2C model
developed in-store live quality live merchant live lower-tier entertaining stream + driven by
platform, streaming streaming streaming, markets, short video notes” as a private
mainly based model, to with and the build user platform with new method domain
on merchant’s establish merchants platform trust through an algorithm to improve traffic with
Features live streaming leverages
omni-channel working host’s to help screen users’ low entry
retail together with WeChat own social top selling loyalty and cost and
Brands
celebrities fans to help network products conversion strong social
started
training their and KOLs merchants rate interactivity
own hosts boost traffic
Source: Kantar Consulting analysis
20PEOPLE • PRODUCT • PLACE
Marketing for the “New Normal” of COVID-19: Livestreaming eCommerce
Consumers: Lower-tier cities and rural areas are the low hanging fruit for live streaming
Limited social contact and travel as a consequence
of the pandemic meant that live streaming became Live streaming user scale
an important window for major businesses to
rebuild connections with their consumers. Statistics eCommerce Live
Online live streaming users (Unit: 100 million)
streaming users:
show that by March 2020, the number of live 256 million, 46%
streaming users reached 560 million, of which
half were eCommerce users. Furthermore, the 5,6
penetration of live streaming in the eCommerce
4,2 4,3
market increased to 4.1% in 2019, from 2.7% 4,0
in 2018. This low penetration and high growth 3,4
trend are expected to continue in the future.
The unique advantage of interaction offered by live
streaming and the benefit of “what you see is what December December December June March
you get” makes this way of shopping even more
reliable for consumers. 2016 2017 2018 2019 2020 2021
Source: CNNIC, Statistical Report on Internet Development in China
Based on the user portrait of live streaming
eCommerce, consumers from Tier 1 and 2 cities
have fully embraced the emerging trend of City distribution for live streaming users
shopping via live streaming. However, the user
base from lower-tier cities (e.g. Tier 3 and
below) is considerably larger, in particular the
user base of Tier 3 and 6 cities.
During the 618 shopping festival, major
eCommerce platforms launched live
streaming strategies to drive lower-tier market
penetration. For example, JD.com’s collaboration
with short video platform Kuaishou meant it was
able to fully leverage Kuaishou’s vast traffic pool Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6
from lower-tier cities. The Quality Shopping session
held by both JD.com and Kuaishou, generated 1.42 Source: Taobao live steaming user data
billion yuan worth of sales in a single day.
Alibaba is using the group purchase platform
JuHuaSuan to help big brands to enter lower-tier To Win Lower-Tier City Market
cities. Meanwhile they launched a factory live
streaming channel specifically for C2M products.
Platform
Pinduodou, which has the largest user base in the
lower-tier market, also chose to further attract
lower-tier consumers during the 618 period through
celebrity live streaming eCommerce.
X
Strategic Source Leverage Introduce Mainly
partnership products celebrities world’s first celebrity live
Methods
between directly from to push live manufacturers streaming
JD.com and manufacturers, streaming live streaming eCommerce
Kuaishou, and introduce eCommerce, to push C2M
consumers can manufacturer and launch customized
buy products live streaming “10 billion” products
during live model subsidy
streaming campaign
directly from with a focus
JD.com and on low price
enjoy their products from
reliable and big brands
fast logistics
service
Source: Kantar Consulting analysis
21PEOPLE • PRODUCT • PLACE
Marketing for the “New Normal” of COVID-19: Livestreaming eCommerce
Industry Case Studies
Unilever joined hands with Kuaishou and Qutoutiao to enter the lower-tier city market
Unilever’s partnership with short video platform Kuaishou during this year’s 618 shopping festival, helped
generate traffic towards its brands. The platform also helped to promote Unilever brands by leveraging different
types of KOLs. They created a variety of short videos that fit the video preference of users from lower-tier users,
such as romance, comedy and pets. Unilever brands that were relevant for pandemic-related trends, focused
on the cost-effective combination of sterilization and cleaning products. Meeting consumer needs in lower-tier
cities resulted in huge success as the short video broadcast on Kuaishou reached 10 million views in total.
KOLs from Kuaishou helped Unilever to resonate with lower-tier consumers
Different video types to match lower-tier city consumers' taste
Kuaishou Kuaishou
live streaming short video
KOL Celebrity Comedy Product review Romance Pets
22PEOPLE • PRODUCT • PLACE
Marketing for the “New Normal” of COVID-19: Livestreaming eCommerce
Merchants: Embrace multiple types of live streaming to build private domain traffic
With the increasing importance of live streaming on live streaming platform increased by 719% in February 2020
eCommerce, more and more merchants have started vs. January. In the future, empowering brands with multi-
their own in-store live streams. According to Taobao, not channel private domain traffic and cultivating brand
only is 90% of all the platform’s live streaming done by loyalty through merchant live streaming will be the choice
merchants, but also the number of new merchants doing of many companies.
Different types of merchant live streaming
Advantages Disadvantages
Strengthen Deep understanding Unsustainability
towards the brand, brand VS
brand image
endorsement
Dong Liang
Mingzhu Jianzhang
Brand top managers
Advantages Disadvantages
Build brand Highly trusted, high High cost for cooperation,
momentum conversion rate VS unstable sales result
and boost sales
Viya Austin Li Xinba
KOLs
A potential Advantages Disadvantages
major sales Brands own private Live streaming skills to
model for domain traffic to increase VS be improved and lack of
brands in the repurchase rate and entertainment
future brand loyalty
Merchants
Source: Kantar Consulting analysis
To drive both traffic and sales conversion during this year’s 618 shopping festival, major eCommerce platforms invited celebrities
and top KOLs to launch live streaming. Some brands invited internal personnel such as senior managers, customer service,
and promotion specialists to further strengthen their brand’s in-store live streaming. Merchants are also trying new ways of live
streaming, including cross-brand live streaming by having activities such as live debate and issuing brand coupons to increase
exposure for both brands as well as increase the interactive element.
Omni-channel: To build occasion-based shopping experiences with integration between online and offline
Under the impact of the pandemic, many offline stores eCommerce platforms have also been pushing online and
chose to expand online sales channels through live offline integration for brands to help them to establish the new
eCommerce to both accelerate the development of retail model through omnichannel live streaming. During the
online and offline integration and offer consumers a period of the Tmall 618 shopping event, there have been more
multi-channel shopping experience. For offline stores, live than 10,000 offline stores participating in the online promotion
streaming can help them to fully leverage existing advantages campaign through live streaming.
by showing audiences in-store elements such as price, product,
usage, and aftersales service. Combined with offline delivery
service, this offers consumers a “cloud shopping” experience.
23PEOPLE • PRODUCT • PLACE
Marketing for the “New Normal” of COVID-19: Livestreaming eCommerce
Industry Case Studies
Unilever’s KOC Academy Program to empower 618 shopping festival with multi-scenario
Unilever launched the "KOC Academy" program in 2019, traffic. So far, more than 1,700 KOCs have produced 2,000+
aiming to develop a brand-specific KOC team by recruiting graphics, 420+ videos and over 323 hours of live streaming
amateurs to produce high-quality live streaming, graphics, content, with a total exposure of nearly 1 billion views.
short videos, and other diverse content. This strategy not only Various types of KOCs produced content for more than 30
helps to promote the conversion to sales but also cultivates platforms.
loyal fans of the brand and facilitates its private domain
Empower Omni-channel Marketing
Diverse Content
Live streaming Short video Graphics Social community
Quality live streamers: 200+ Quality short video KOLs: 200+ Quality graphic KOLs: 1000+ Groups: 8000+
Duration: 1000+ hours Amount: 200+ videos Amount: 1000+ Consumer serviced: 40w+
Exposure: 0.1B+ viewers Exposure: 0.1B viewers Exposure: 0.1B+ viewers Product promoted: 300+
Exposure: 10M+ viewers
Cross Platform Marketing
B2C platform Social eCommerce platform O2O platform ERTM Offline channel
Source: Kantar Consulting analysis
24PEOPLE • PRODUCT • PLACE
Marketing for the “New Normal” of COVID-19: Livestreaming eCommerce
Industry Case Studies
Suning Carrefour using live streaming and To-home O2O to build omni-channel retail
As a leading retail brands, Carrefour Carrefour’s selected fresh and FMCG Suning Carrefour Zhuhai Jida Store
has become an important part of the products were sold through a variety sold 850 packets of dumplings on the
Suning Group’s retail business. Along of live streaming methods such as in- day of the Lantern Festival, a year-
with Carrefour’s supply chain advantage, store product trial eating and product on-year increase of 195%. Meanwhile,
live streaming enriches the shopping reviews. Once the orders were placed, Valentine's Day chocolate and red wine
experience for O2O shoppers and consumers could enjoy the fast “1-hour” sales increased by 175% and 255%
helps to establish the desired brand delivery service offered by Carrefour. respectively. On June 1st, Carrefour held
image. In-store live streaming not only helped a total of 119 live streams in stores across
convert online sales but also drove more the country, with an average number
offline traffic towards stores during the of viewers per live streaming exceeding
weekends. In addition, Suning Carrefour 100,000, and some stores exceeding the
launched special live events for different 400,000 mark.
promotion scenarios, using selected
products to boost the store’s turnover.
Suning Carrefour’s in-store live streaming
Holiday promotion Platform promotion
Brand promotion
Source: Kantar Consulting analysis
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