Culture from Data: How International Brands are trying to crack the code on fickle Chinese consumer

Beijing – China Economic recession The Chinese shopkeepers are not discouraging us and European brands by re -forming their strategies to reach the shopkeepers.

Instead, the attraction of the world’s second largest consumer market is forcing companies to make companies favorable in front of growing competition from local brands.

in the matter of Craft HanzGetting more people in China to buy ketchup this year also meant that to help a local agency to make an attractive campaign-decorate the column of the metro station to mimic the bottles of the catch and promote the spice as a fresh twist on a popular dish: Stere-Friday eggs and tomatoes.

It is also a difficult market for Shanghai-based marketing firm Good Idea Growth Network (GGN). The agency has seen at least five different waves of consumer trends in its 14-year history, the founder Stedi Liu said, in Mandarin, is said to be translated by CNBC. “The gameplay keeps changing.”

But the GNG has been successful even after rejecting the offer of acquisition from the British advertising giant WPP, Liu said, seeing that about half of his customers are foreign brands.

While Craft Hanz has not yet been done with its China Catchup campaign, the company reported the net sale of the second quarter in the emerging markets. 4.2% climbed From a year ago, helping to fall offset in North America.

WPP discovered the possible acquisition of GGN, but according to the person familiar with the discussions, the process was not far away in the process.

Craft Hanz did not immediately respond to the remarks requests.

From Starbucks struggle For the successes of Lululeman in China, it has become clear that the correct mixture of localization is necessary.

“Winners, winners are often dedicated to more than 40% revenue for marketing, especially materials and platform-first marketing, while locally recurrence of products based on market figures,” Jacob Cook, WPIC Marketing + Technologies co-founder and CEO said, which helps in selling foreign brands in China.

This year, Cook said that Armor To attract a mass of online buyers, products have been created under 100 yuan ($ 14), while using livestreams with dedicated users to manufacture fitness communities and sell more premium products offline.

Bytedance-owned Douin has become an e-commerce force in the last few years as famous celebrities and companies have started using the app Live sales During the epidemic. And according to numbers, there are very few questions that Xiaohongshu and Douyin jumping into the world are meaningful for businesses.

GGN’s LIU said that that new social commerce has become the biggest challenge for brands for ecosystem. “Foreign brands will think, ‘Isn’t this just tickek?” ,

He warned that success requires a complex strategy in which everything can change how a team is structured for the types of products sold. But payment is important.

“In half a year, it can help you sell more than selling (“AlibabaTmall in two years, “Liu said.

Chinese e-commerce platforms, including Alibaba’s TMAL, share more data than which is popular Amazon.com What, Cook of WPIC said. In China, “people usually know what their competitors are selling and what they are selling.”

With that granular data, the Chinese makeup brand perfect diary was able to manage a market pain point and managed to make a lipstick targeted in that lower price segment, Cook said. He said that in the last five years, foreign brands have been pressurized to create a big innings along with China-specific products.

E-commerce platforms in China often show that thick figures were given on how many orders were placed per product, while third-party companies such as Sintun provide significant amounts of product ranking and other online sales data for free.

in the matter of AppleLaunch iPhone 17 on 19 September, the Chinese e-commerce company JD.com released sales data for the mainland China. The electronics-centered platform announced that the first minute of the first minute of the iPhone 17 series crossed the pre-order volume of the first day of the previous year’s iPhone 16 series.

Apple’s story also says how it is possible Rules on local interest Despite losing market share in domestic competition. Some Beijing customers told CNBC that they liked the new cosmic orange color of the iPhone, and that more locals intended to buy their first iPhone this year as they heard about new attractive features such as big internal storage.

Chinese factories were in a hurry to jump on a trend, releasing iPhone cases with a similar orange color before 17 models were out.

Ashley Dudrenok, founder of China Marketing Consultancy, Chojan, said, “The winning brands are those who have established the local R&D Center and on-the-gound product teams.” “This allows them to spot quick trends, develop products to suit local needs and launch in months, not in years. It is an important departure from the past, where global products were often rolled out in the Chinese market.”

Even with correct data and social media platforms, cultural integration is becoming increasingly important, especially as Chinese brands get success In the artisan craftsmanship exploit the country’s history.

“Brands are moving beyond the surface nodes for Chinese culture,” Dudarenok said. He reported that Lowe participated with Z-carved masters, while Barbari worked together with bamboo-weed artists.

And despite Sales decline in China’s luxury market, LVMH This heat created a lot of local discussion in Shanghai opening an eye-catching ship-shaped shop.

Unlike LVMH stores in Manhattan, the Shanghai location taps as a port of entry into Asia almost a century ago for international travelers in the history of the Chinese city.

The new store also catchs the roots of the European brand in the tights of hand-made travel-opposite to the inability to offer the same emotional appeal of the Chinese brands, the President of the Greater China, Joe Nagai, in McCins’, has told in one. LinkedIn Post,

“As Chinese customers grow in their confidence and desire for local elements,” he said, “Creating more crossover between the West and East is one of the unique opportunities for multinational companies in China.”

– Eunice Yoon of CNBC contributed to this report.