Transcendent Retail APAC 2021

LESSONS FROM CHINA’S TREND-SETTING COMMERCE
MARKET FOR THE REST OF THE WORLD
A REPORT BY WUNDERMAN THOMPSON INTELLIGENCE IN COLLABORATION WITH JING DAILY

CONTENTS
003 INTRODUCTION 047 The New Luxury

14. Hard Luxury Goes Online
004 OVERVIEW 15. Virtual Possessions
051 The Socio-Political Consumer
010 KEY TRENDS 16. Guaochao Commerce
Blended Channels 17. The Ethical Consumer
1. The Clicks-and-Mortar Store
2. The Rise and Rise of Livestreaming
057 BY THE NUMBERS
3. Brands Get in the Game
Consumer Data From China, Australia, India, Indonesia,
4. Branded Short Films
Japan and Thailand
5. Boomer Digital Migration
024 Shifting Influence
079 TAKEAWAYS
6. Key Opinion Leaders (KOLs) as Brands
7. Democratization of the Influencer
081 ACKNOWLEDGEMENTS
8. Meet the Virtual Influencer
9. Five Influencers to Watch
039 Created in China
10. TikTok Takes Over the World
11. Shein and the Race to Rule Ultra-Fast Fashion
12. C-Beauty Goes Global
13. Fintech’s Reckoning
INTRO D U CT I O N TRA NSC E NDE NT RETAIL: APAC 3
INTRODUCTION
IN “TRANSCENDENT RETAIL: Retail is now digital and physical, Already, Chinese trends such as Japan and Australia, and interviews
APAC,” WUNDERMAN personalized and social, all at the live commerce, social commerce with experts and case studies.
THOMPSON INTELLIGENCE, IN same time. It also increasingly and the creation of super apps that
PARTNERSHIP WITH transcends geography. combine messaging, commerce, This report is available at
JING DAILY, EXPLORES payments and delivery are spreading intelligence.wundermanthompson.
EMERGING TRENDS IN CHINA, Borders are evaporating between across the globe, thanks to direct com and jingdaily.com.
THE WORLD’S BIGGEST markets, channels and media, investments and knowledge transfer Enjoy.
COMMERCE MARKET, AND helped in part by the pandemic by Chinese tech giants as well as
ASSESSES THE READINESS lockdowns. And retail is moving into experimentations by local players.
OF OTHER APAC MARKETS TO a state where touchpoints are both
EMBRACE THEM. constant and fleeting. In “Transcendent Retail: APAC,” we
identify opportunities for sectors
Twelve percent of the 250,000 brands from retail to technology to finance
that took part in Alibaba’s Singles’ to fashion and beauty. We highlight
Day shopping festival in 2020 were lessons for brands interested in
from outside China, chiefly from selling to Chinese consumers as well
America, and accounted for $5 billion as brands tapping into China retail
of the company’s $74.1 billion in sales. trends landing on their own shores.
Over 11 days, Alibaba chartered more Chen May Yee Sky Canaves
than 3,000 flights and ships to bring This study includes data from APAC Director Content Director
foreign goods into China and another Wunderman Thompson’s Future Wunderman Jing Daily
700 chartered flights to deliver Shopper survey of 10,158 consumers Thompson
orders outside the country. in China, India, Indonesia, Thailand, Intelligence
OVE RVIE W TRA NSC E NDE NT RETAIL: APAC 5
CHINA’S DOMINANCE OF GLOBAL Add to that China’s pioneering tech Retail ecommerce sales in China are
ECOMMERCE IS NO ACCIDENT. players, such as Alibaba’s Tmall, expected to hit $2.8 trillion in 2021, up
IT CAME ABOUT BECAUSE OF JD.com and Tencent’s WeChat, and from $2.3 trillion last year, according
A SPECIFIC SET OF PLANNED
CIRCUMSTANCES: THE ROLLOUT
more recently, short-video platforms
Douyin (known as TikTok outside
to eMarketer. That will make China
the first country in the world where “This is
just the
OF FAST-SPEED MOBILE China) and Bilibili, which stitch more than half—52%—of total retail
NETWORKS EVEN TO RURAL together buying, socializing and sales come from ecommerce. South
beginning.”
COMMUNITIES; THE BUILDING gaming into a seamless experience. Korea is a distant second at 29%,
OF LOGISTICS NETWORKS followed by the United States at 15%.
INCLUDING WAREHOUSING Already the biggest online commerce
AND DELIVERY; AND THE NEAR market in the world before the The result is a burst of innovation: ZHAO HUI
TOTAL ADOPTION OF MOBILE pandemic, China pulled even further the blending of physical and digital SPOKESPERSON, LAZADA
PAYMENTS ACROSS CHINA IN ahead during the lockdowns. channels, the rise of livestream CROSS-BORDER
ECO-INNOVATON SERVICE
RECENT YEARS. commerce, the expansion of virtual
CENTER
By December 2020, 70% of China’s worlds for socializing, playing and
population—989 million people— buying, and the blurring of all and any
were online, almost all via their lines in between.
mobile phones. Of these, almost
80% were shopping online, 86% “Chinese ecommerce, already a
were using mobile payments and marketing-centric environment,
94% were consuming online video, has become much more rich-media
according to the China Internet focused, with massive uptake
Network Information Centre.
in video content marketing and

livestreaming,” says James Bay,
Wunderman Thompson’s Greater
China managing partner
for commerce.
These trends are now spreading

beyond China. The evidence is
all around.
In Tokyo’s Harajuku district,

Shiseido’s new concept store,
which opened June 2021, features a
public studio in its entrance area to
record livestreaming and other video
content, all projected onto a large
screen. Shoppers can also project
their personal 3D avatar in a virtual
space in the store, in their favorite
makeup and fashion, and snap
pictures of their avatar with friends
and brand ambassadors.
Shiseido Beauty Square, Harajuku

Shiseido Beauty Square, Harajuku

“Chinese ecommerce,
already a marketing-centric
environment, has become
much more rich-media
focused, with massive uptake
in video content marketing
and livestreaming.”
JAMES BAY
GREATER CHINA MANAGING PARTNER COMMERCE,
WUNDERMAN THOMPSON
Lazada Cross-Border Eco-Innovation Service Center, Nanning

52% OF CHINA’S
RETAIL SALES WILL
ORIGINATE ONLINE IN
2021, VERSUS 29% IN
In India, social commerce app Trell is SOUTH KOREA AND 15%
known as the country’s TikTok for its IN THE UNITED STATES.
three-minute videos by influencers in
regional languages such as Marathi,
Bengali and Malayalam. It has raised
$17 million from investors including center last year to source, train and
Sequoia Capital and Samsung host livestreaming talent, and match
Ventures. Trell’s content creators them with Chinese brands looking to
and audience mostly hail from India’s sell in local languages to Vietnam,
second and third tier cities. the Philippines, Malaysia and other
Southeast Asian nations. Lazada is
Online buying and selling is one of the biggest online retailers in
increasingly crossing geographical Southeast Asia and is owned
borders. According to the Chinese by Alibaba.
government, cross-border
ecommerce rose 46.5% in the first The Nanning center now hosts
quarter of 2021 to RMB 419.5 billion 2,000 LazLive sessions a month
($63.8 billion), or about 14.5% of total from its eight livestreaming rooms
ecommerce. as well as direct from the homes
of its livestream talent. Zhao Hui, a
In Nanning, in southern China’s spokesperson for the center, tells
Guangxi province, Lazada opened Wunderman Thompson Intelligence:
its first cross-border innovation “This is just the beginning.”
Lazada Cross-Border Eco-Innovation Service Center, Nanning
KEY TRENDS
KE Y TR E N D S TRA NSC E NDE NT RETAIL: APAC 11
IN THE PAST 20 YEARS, CHINA

HAS GONE FROM BEING THE
BLENDED
WORLD’S FACTORY TO BEING THE
CHANNELS
WORLD’S BIGGEST CONSUMER
MARKET AND GLOBAL TREND- 1. The clicks-and-mortar store
SETTER FOR ONLINE RETAIL.
As online shopping evolved with the
“DON’T THINK OF CHINA pandemic, so too did physical stores.
AS THE ENDPOINT OF YOUR They are now inseparable.
PRODUCT. A LOT OF WHAT IS
COMING OUT [OF CHINA] IS With the coronavirus pandemic largely
COMING TO THE WEST LATER,” under control, bricks-and-mortar retail
SAID NADER MOUSAVIZADEH, has been open for business in China
CHIEF EXECUTIVE OF MACRO for the past year. But the central role
ADVISORY PARTNERS, AT THE of ecommerce in the Chinese market
FINANCIAL TIMES BUSINESS OF means that brands have to rethink the
LUXURY SUMMIT IN MAY 2021. very concept of the physical store. For
many, this has meant developing hybrid
WE EXPLORE THE NEWEST experiences that merge the best
RETAIL TRENDS IN CHINA, HOW of online and offline elements. Not
THEY’RE EVOLVING, AND THEIR only Chinese brands but also some
LESSONS FOR GLOBAL MARKETS. storied Western brands are opening
concept stores in Chinese cities first.
K11 Art Mall, Shanghai
Burberry Open Spaces store, Shenzhen

In July 2020, British luxury fashion bring a little of Paris to consumers

house Burberry debuted its Open who are still unable to travel to the
Spaces “social retail” store spanning French capital. In addition to selling
5,800 square feet and three stories in cosmetics and skincare products,
the trend-setting southern Chinese the outlet includes an interactive
city of Shenzhen, in partnership with cycling simulator that takes visitors
WeChat owner Tencent. on a virtual ride through the streets
of the city while they collect points
Through a customized WeChat mini that can be used towards discounts.
program on their smartphones,
customers can rack up “social For those who can’t visit in person,
currency” through in-store activities, L’Oréal built an in-store set to serve
unlocking product information through as the backdrop for livestreaming
QR codes and interacting with the by beauty influencers. As with
brand to get various perks along the Burberry’s Open Spaces store,
way. They are assigned a cartoon customers can link their visits to their
avatar on the mini program, which WeChat accounts via a dedicated
hatches from an egg and evolves to mini program, helping the brand
introduce new outfits and characters. collect valuable data and offer more
individually tailored experiences.
Taking a similar approach, in May 2021
L’Oréal opened its first omnichannel The TX Huaihai Youth Energy Center
concept store in Shanghai, aiming to in Shanghai offers another new
L’Oréal omnichannel concept store, Shanghai
Unlike most landlords, TX Huaihai “The offline world needs to be a

does not collect rental revenue, but source of customer acquisition
takes a percentage of sales. Taobao for brands, enabling them to enter
shops reach out directly to their their social commerce ecosystem
existing fan bases to encourage them for future customer engagements
to visit TX Huaihai. And since data is and purchases,” Bryce Whitwam,
centralized through a common digital adjunct instructor of marketing at
point-of-sale ecosystem, TX Huaihai’s the New York University School of
management can help drive business Professional Studies in Shanghai, told
to specific stores or have them Jing Daily.
partner with neighboring retailers.
retail model centered on bringing Physical retail won’t be killed off by
online stores into the real world. Despite opening on the cusp of the the massive growth of ecommerce
When it opened in December 2019, COVID-19 pandemic, TX Huaihai drew in China, but it’s going through an
50% of its stores were designated more than five million visitors in important transition. Increasingly,
as pop-ups, largely sourced from 2020, its first full year of operation. consumers expect in-person shopping
Taobao merchants with social media As shoppers flocked to the new mall, to replicate features prevalent in
followings and track records of established global brands such as ecommerce, such as gamification,
strong sales, such as Badmarket, Fendi, Nike and G-Shock began to higher levels of personalization
which sells youth-oriented fashion take notice and hosted their own and perks, and the ability to keep
and accessories. pop-up retail events at TX Huaihai. consumers entertained.
TX Huaihai Youth Energy Center, Shanghai
2. The rise and rise of livestreaming
The rest of the world is jumping on

the Chinese bandwagon of selling via
video broadcasts.
The Chinese model of ecommerce

livestreaming, pioneered by Alibaba’s
Taobao Live in 2016 and now a feature
of almost every rival platform, has got
brands, retailers, and tech platforms
around the world racing to introduce
their own versions of the seamless
“see now, buy now” consumer trend.
Livestreaming merges the

advantages of online retail with
personalization and opportunities
for interaction between brands, on-
air personalities and consumers—
juiced by limited-time vouchers
and deals—into a potent blend of
commerce and entertainment.
Alibaba
Even before the coronavirus

pandemic, ecommerce livestreaming
was transforming the way Chinese
consumers shop. During the Singles’
Day shopping festival in November
2019, global brands such as L’Oréal
engaged in 24/7 livestreaming. Even
Kim Kardashian, arguably the biggest
influencer on a global level, saw the
value in partnering with China’s top-
selling livestreamer Viya to sell her
KKW fragrance to Chinese consumers.
However, 2020 will go down as the

year ecommerce livestreaming
went from experiment to necessity
for Chinese brands and retailers
during lockdown. Everyone from
out-of-work actors to CEOs joined
the livestreaming fray. Brands and
ecommerce platforms developed
more engaging content that relied
less on limited-time deals and
To promote her KKW fragrance, Kim Kardashian teamed up
with China’s top-sellng livestreamer Viya, November 2019
consumer FOMO (fear of missing Looking ahead, Chinese livestreaming

out) to sell products, and more on is heading upwards, as luxury brands
entertainment and education. embrace the medium, and outwards,
as Chinese brands more intentionally
For example, Alibaba’s Tmall worked target overseas audiences using local
with the producers of Sleep No More, language via platforms such as Alibaba-
Shanghai, an immersive theater owned Lazada’s LazLive platform.
production by Punchdrunk set in
the 1930s that was shuttered during
the pandemic, to create a brand
showcase for the 618 shopping
festival, the largest mid-year
shopping festival in China.
More than one million viewers tuned
in to watch stars of the livestream 26% OF CHINESE
perform jazz-inspired jingles for ECONSUMERS SAY
20 brands showcased across five LIVESTREAMING WOULD
floors of the historic McKinnon Hotel. ENCOURAGE THEM TO
Related content on Weibo drew more BUY MORE ON SOCIAL
than 200 million views. PLATFORMS IN
FUTURE.
Livestream on 85th anniversary of Lancôme, owned by

L’Oréal Group
3. Brands get in the game of the main drivers of Chinese

consumption, making the gaming
Reaching beyond the traditional male sector a key area for brands to work in.
audience to include female players
and fans. This became especially relevant
during the COVID-19 pandemic, when
China is the largest gaming market brands had to rely more heavily on
in the world. By the end of 2020 digital channels to reach consumers,
there were 518 million gamers in and more consumers than ever were
the country, with almost all playing spending time at home playing games.
mobile games, according to data
from the China Internet Network Gaming collaborations can also
Information Center. Revenues from generate offline retail opportunities
China’s gaming sector stood at $43 as fashion and beauty brands
billion in 2020, with about three- develop real-world products tied to
quarters of the total coming from gaming content.
mobile games.
Louis Vuitton, for instance, launched
Significantly, the majority of mobile an apparel collection series based on
gamers are female (56%) and Tencent’s massively successful game
47% are under 30, according to League of Legends to accompany
Wunderman Thompson data. These its in-game collaboration on a series
demographics overlap with some of skins for players. MAC Cosmetics
Louis Vuitton x League of Legends
also partnered with Honor of Kings In 2020, a total of 37 Chinese

on a series of lipsticks that sold mobile titles earned more than
out within 24 hours of their release $100 million in overseas markets,
in early 2019, as did subsequent according to Sensor Tower, and
collaborations on lipsticks and cumulative revenue for the top 30
eyeshadows in 2020. most profitable Chinese games
reached $9.24 billion, a year-on-year
Games such as fantasy roleplaying increase of 47%. Genshin Impact set
Genshin Impact from MiHoYo also a new monthly revenue record for a
have the ability to inspire a largely Chinese game in the global market
female player base to form fan in October 2020 at $160 million, and
communities that gather for events Japan overtook the United States as
where players dress up, cos-play the top market for Chinese titles.
style—investors such as gaming giant
Tencent are taking notice and funding
a crop of new apparel ventures to
reproduce fashions from games.
Chinese games are increasingly

finding fans outside the country as
well, where their broader influence
will be felt for years to come.
Top: MAC Cosmetics x Honor of Kings

Bottom: Genshin Impact
4. Branded short films
Brands are forging deeper connections

with consumers through film.
Globally, the decline of television

viewership is forcing brands to
invest in content that connects
with consumers on a deeper level
than the typical ad spot. In China,
this trend has been accelerated by
government-imposed restrictions
on airing commercials during prime-
time viewing hours and the shift to
streaming video.
Chinese brands are now displaying

a marked willingness to go beyond
30-second commercials.
Way beyond.
BMW Lunar New Year film 2020, directed by Ning Hao

During China’s biggest holiday, 25-minute picture, about a young One of the first films released by
the Lunar New Year, it is almost man’s trip to visit his grandfather, went SK-II Studio was the five-minute VS
de rigueur for brands to mark the on to win the Silver Bear Jury Prize at Obsession, starring Chinese swimmer
occasion with “gifts” of short films the Berlin International Film Festival. Liu Xiang, which explored how
that convey good wishes to their objectification on social media can
customers, helmed by top-tier Over the past several years, the overwhelm those in the public eye. It
filmmakers such as Jia Zhangke and Procter & Gamble-owned Japanese was part of a series to mark the 2021
Ning Hao. Other significant dates skincare brand SK-II has made a name Tokyo Summer Olympics, featuring
on the Chinese calendar, such as for itself with a series of films that athletes from around the world who
International Women’s Day on March address social issues facing Chinese are expected to participate in the
8, National Youth Day on May 4, women, starting with the Cannes Games, including American gymnast
and graduation season, also offer a Golden Lion-winning Marriage Market Simone Biles and Japanese volleyball
multitude of occasions for brands Takeover in 2016, which sparked player Hinotori Nippon.
to speak to consumers through the serious discussions on society’s
medium of film. suffocating pressure on young
Chinese women to get married.
Global brands have also jumped in.
Lexus, Toyota’s luxury auto division, Building on this foundation, in March
sponsored the production of the 2021 SK-II announced the launch of
short film Day Is Done by emerging its own Singapore-based content
director Zhang Dalei as part of its studio, with the mission of sharing
2020 partnership with China’s First important stories about women with
International Film Festival. The global audiences.
SK-II Studio
5. Boomer digital migration Chinese citizens aged 60 and over

represent one of the final frontiers
Tech platforms adapt to serve a for ecommerce, with emerging role
mobile-first generation of seniors. models such as Beijing’s Fashion
Grandmas. (See Five Influencers to
During the pandemic, Alibaba’s Watch, page 34.)
Taobao marketplace reported
a nearly 30% increase in older China’s population is steadily graying,
customers, as the gray-haired set as life expectancy has increased and
were forced to play online catch-up birth rates decline. The most recent
with their younger brethren just to population census released in May
buy food and basic supplies. 2021 reported approximately 264
million Chinese over 60, accounting for
The pandemic also highlighted the 18.7% of the total population (up 5.44%
challenges faced by some older from 2010), and the total is forecast
internet users, who lacked familiarity to grow to 300 million by 2025.
with mobile technology such as QR
codes used for health screenings, Older Chinese tend to be digitally
leading the government to encourage literate, with many having
the development of senior-friendly leapfrogged computer-based
features on tech platforms. internet usage and gone straight
to mobile, meaning that they are
comfortable using apps for services
Alibaba’s Taobao app, with simplified interface for seniors
such as shopping. At the end of 2020, Alibaba’s Taobao recently launched a

11.2% of China’s roughly one billion senior version of its popular mobile
internet users were over 60, while the app, with features such as enlarged
total of 50-and-over users was 26.3%, fonts, streamlined purchasing, and
up from around 17% in March 2020. simplified functions for interaction
with family members.
iMedia Research projects the size
of China’s “silver economy” as Short-video app Douyin has rolled out
RMB 5.7 trillion ($880 billion) by the a voice-command system that makes
end of 2021. Compared to younger it easier for users to post and share
generations, older consumers have videos, which could also influence its
higher levels of disposable income and ecommerce functionality.
more time to engage in shopping online.
Groceries and daily necessities are
major categories for older consumers,
while electronics, appliances, and
apparel are growing too.
Shutterstock
SHIFTING 6. Key Opinion Leaders (KOLs)

as brands
INFLUENCE
Celebrity influencers leverage their
CHINA’S INFLUENCER CULTURE fame with their own brands.
IS EVOLVING AND BECOMING
MORE COMPLEX. BIG IS NO Influencers, also known as Key
LONGER ALWAYS BETTER. Opinion Leaders (KOLs) in China,
IT’S NO LONGER ENTIRELY A have long been seen as critical
YOUTHFUL GAME—SILVER- to brand success in the market,
HAIRED INFLUENCERS CAN where consumers rely heavily on launches, and draws audiences in the 80 million followers across various
REACH UNTAPPED AUDIENCES. recommendations from trusted tens of millions with her candid girl- platforms and holds a record for
AND INFLUENCERS NO LONGER sources. And the rapid rise of next-door persona, albeit one who hosting 389 livestream sessions in
EVEN HAVE TO BE HUMAN. ecommerce livestreaming has can authoritatively dispense reviews the span of a year.
boosted demand for on-air sales on everything from food to fashion
talent capable of engaging consumers to appliances. She generated more Now leading influencers are seeking
during hours-long broadcasts. than $450 million in sales during out opportunities to sell their own
Alibaba’s November 2020 Singles’ branded products, which may
The biggest livestreaming influencers Day shopping extravaganza. ultimately be more profitable than
in China have massive followings. livestreaming. In early 2021, Viya
Viya (aka Huang Wei), the top-seller Li Jiaqi, who made his name as a and her business partner husband
on Taobao Live, can sell anything beauty livestreamer and is known launched a food brand focused on
from paper towels to rocket as China’s Lipstick King, has nearly premium instant noodles, a trending
Perfect Diary eyeshadow palettes, graced by
Li Jiaqi’s dog Never
category among increasingly health- consumer goods and art. He also

conscious consumers. Debuting played himself in a 2020 film co-
her new products via livestream, produced by Alibaba Pictures.
she invited singer Luhan to appear
and sold goods worth RMB 10 Li’s fans have also come to love his
million during the event, a figure it playful bichon frise dogs, which make
could take a competitor a year to regular appearances on his show and
reach. And Viya has indicated plans provided a source for new IP, Never’s
to expand into a broad range of Family, named for the lead dog of the
consumer goods, including apparel pack. Brands that have sought to tap
and cosmetics. into the power of his pets’ IP include
Chinese beauty brand Perfect Diary,
Lipstick King Li, who, like Viya, the LVMH-owned Fresh, and South
sells primarily on Taobao Live, Korean IP studio Line Friends. Li
has developed a reputation as now produces pure entertainment
an entertainer, and now regularly content, such as anime videos, for
collaborates with Alibaba-owned his social media platforms.
platforms on major marketing
campaigns that go beyond shopping.
These include a recent Tmall
livestream with 10 Chinese artists to
mark International Museum Day on
May 18, exploring the link between
Li Jiaqi the Lipstick King
“The really big influencers’ 7. Democratization of the influencer What’s more, the Chinese influencer
commissions are 30-40% High costs and influencer fraud
industry is rife with questionable
practices. As much as a third of all
of sales, which can be a prompt brands to ditch KOLs for

KOCs (Key Opinion Consumers).
online ad traffic in China is believed
to be fake or fraudulent, and a 2019
prohibitive cost for brands. Chinese and international brands

report from Chinese ad tech firm
Miaozhen Systems estimated that more
A lot of these influencers vie to have the likes of Viya and Li

promoting their products, though this
than 57% of KOL followers are fake.
create a short-term sales comes with costs: high appearance

fees and commissions, plus the
“There is so much engagement
fraud it’s ridiculous,” said Arnold Ma,
boost, but nothing long-term

requirement for steep discounts founder and CEO of China-focused
on products. In addition, brands digital marketing agency Qumin, in
have to cede a measure of control an interview with Jing Daily. “You
for the brand.” over where and how their goods see videos of engagement factories
are presented in a broadcast, which where they literally have hundreds and
poses a challenge for luxury brands thousands of mobile phones mounted
JAMES BAY
GREATER CHINA MANAGING PARTNER COMMERCE, in particular, as they may be wary on walls and stands where people
WUNDERMAN THOMPSON of finding themselves sandwiched just go around doing engagements on
between flash sales on toothpaste different things—that’s one thing that
and buy-one-get-one-free offers. is slowly destroying the influencer
marketing industry.”
As a result, brands have moved

to explore other options, such
as working with smaller-scale
influencers known as Key Opinion
Consumers (KOCs). These are
regular consumers with fairly small
followings (typically in the hundreds)
who are largely focused on product
reviews. KOCs’ appeal derives
from their relatability and apparent
trustworthiness, as they may be part
of their audience’s social circle.
The lifestyle platform Xiaohongshu

(Little Red Book or RED in English)
has proved a fertile ground for KOC
marketing, as its algorithm favors
smaller accounts and promotes posts
based on topics and hashtags, instead
of emphasizing content from the
accounts a user follows. While KOCs
cannot entirely supplant KOLs for
brand promotion, they offer a far less
expensive and lower-risk alternative.
Xiahongshu
8. Meet the virtual influencer Video-streaming platform iQiyi has The biggest obstacle to the together in its virtual world. It also
created a virtual hip-hop band, development of virtual influencers is includes branded content, such
Virtual influencers are another Rich Boom, that appears on shows cost, since they require a great deal as outfits from luxury brands that
emerging option. Although virtual and in music-video commercials of technical support, and glitches can can also incentivize engagement
idols first emerged in Asia more for sponsors such as Tsingtao and cause embarrassment to brands. As a with discount offers for real-world
than a decade ago, primarily as Pinduoduo. Alibaba is also investing result, in the short term, popular digital products, and users can share their
performers, advances in technology heavily in developing virtual idols to influencers are most likely to come Taobao Life activities on other social
and increasing demand for online host livestreams. from major tech platforms, which can media platforms, spreading their
content during the COVID-19 then share the technology with brands. influence and reach in the process.
pandemic made 2020 a breakout In 2019, Bilibili acquired China’s
year for digital avatars in China. best-known virtual idol, Luo Tianyi, As with real-life influencers, Chinese
an anime-inspired young female tech platforms can also offer ways
Youth-oriented video streaming singer who has more than five to democratize virtual influencers;
platform Bilibili is a hub for China’s million followers on Weibo. Luo has for example, Alibaba’s gamified
Anime, Comics, and Games (ACG) appeared in mainstream productions digital community Taobao Life saw
community. It works through the such as state broadcaster CCTV’s a spike in adoption during China’s
16% OF CHINESE
entire chain of virtual idol creation, Spring Festival Gala (the world’s COVID-19 lockdowns.
SAY SOCIAL MEDIA
from content development to virtual most watched television show) and
INFLUENCERS ARE THEIR
reality (VR) technology, and hosts been accompanied by renowned Taobao Life, not to be confused
BIGGEST INFLUENCE ON
major virtual idol concerts that classical pianist Lang Lang. Luo has with the livestreaming platform
BUYING, COMPARED TO
merge the online and offline worlds. also collaborated with numerous Taobao Live, is a mobile app that
24% WHO SAY FRIENDS
brands, including KFC, Nestlé and allows Taobao users to create
AND FAMILY.
L’Occitane, and has appeared in and dress virtual avatars, who
ecommerce livestreams as well. can then socialize (and shop)
Virtual idol Luo Tianyi makes an appearance on behalf of

Procter & Gamble at an Alibaba event
9. Five influencers to watch The boss influencer

Name: Luo Yonghao
After the mega-influencer, who Age: 49
comes next? Platform: Douyin
As the influencer market matures, it’s The pandemic ushered in a trend

splitting into sub-genres, taking a cue of “boss livestreaming,” which saw
from new market conditions and new numerous company founders,
social mores. We look at five up-and- CEOs and top executives take
coming influencers as harbingers of to livestreaming to pitch their
change and explore the market gaps products. These are often 3C
that they fill. goods—computers, consumer
electronics, and communications
(mobile phones)—that appeal to
male consumers, in contrast to the
beauty, fashion and fast-moving
consumer goods categories favored
by the mostly female livestreamers
on Taobao Live.
For example, Lei Jun, founder

and CEO of Xiaomi, the Chinese
smartphone maker, made his
Luo Yonghao
livestreaming debut on short-video announced an ambitious goal to

platform Douyin in August 2020,
reaching 50 million viewers and
reach RMB 10 to 15 billion in 2021. “I may not be suited to selling
netting $30 million in smartphone
and television sales, the South China
However, Luo’s broadcasts have been
marred by a number of reported
lipsticks, but I’m confident
Morning Post reported. shortcomings that speak to larger
issues in the ecommerce livestreaming
that I can become the
One of the surprise ecommerce
livestreaming stars of 2020 was the
industry. These range from a lack of
professionalism, such as showing ‘number one livestreaming
somewhat notorious and heavily
indebted tech entrepreneur Luo
little enthusiasm and making basic
mistakes with brand names, to brother’ in many product
categories.”
Yonghao, who announced a new career violations of China’s advertising
move as a way to pay off his debts. laws and complaints about product
quality and customer service.
Luo, founder and CEO of troubled LUO YONGHAO
smartphone maker Smartisan, Still, Luo’s success made him a TECHNOLOGY ENTREPRENEUR, FOUNDER, SMARTISAN, AND
made his debut on Douyin in April pioneer in livestreaming targeted TOP-SELLING DOUYIN LIVESTREAM HOST
2020 with a livestream that drew an towards male consumers at a time
audience of 48 million and racked when they made up only around
up a reported RMB 110 million ($15 20% of the overall ecommerce
million) in gross merchandise volume. livestreaming audience. A little over
Luo hit RMB 3 billion ($479 million) a year later, male audience share has
in sales volume in 2020, and has risen to approximately 44%.
The inclusive influencer

Name: Yang Tianzhen
Age: 36
Platform: Xiaohongshu
Yang Tianzhen stands out from most

other KOLs by promoting inclusivity
and self-acceptance, and launched an
apparel brand, PlusMall, in June 2020
catering to the underserved consumer
group of larger-sized women.
Having started as an agent for

Chinese megacelebrities such as Fan
Bingbing and Luhan, she switched
careers to become a full-time
livestreamer on the lifestyle-oriented
platform Xiaohongshu (Little Red
Book or RED).
Yang’s debut livestream exceeded

expectations, drawing 480,000
viewers and selling goods worth more
Yang Tianzhen
than $1 million. She is less active distaste for 996 work culture
than many other KOLs, with a total (working from 9 a.m. to 9 p.m.,
of just 32 livestream appearances in six days a week) that prevails in
“Ladies, don’t fear being the second half of 2020, since she
has numerous other commitments,
industries such as tech. Controversy
aside, Yang’s forthright attitude
fat. Find your own source of

including building her fashion and confidence have gained her a
business, making appearances on loyal following that make her a key
reality shows and talk shows, and her influencer to watch.
confidence! Body weight can’t new appointment as a “brand friend”
for Victoria’s Secret.
stop me from loving myself.” Yang’s popularity in mainstream
culture could usher in a more open
YANG TIANZHEN
CEO, YIXIN ENTERTAINMENT AND FOUNDER, PLUSMALL playing field for Chinese KOLs, as
conventional standards of beauty
are increasingly being challenged.
Yang has also generated controversy

for her apparent support for brutal
work schedules, stating publicly that
she sees no issue with sacrificing
her health for her career, just as
many young Chinese are expressing
CHINESE OVER 60 NOW

ACCOUNT FOR
The senior influencer 18.7% OF THE TOTAL
Name: Fashion Grandmas POPULATION, UP 5.4%
Age: Late 50s to mid 70s FROM 2010
Platform: Douyin
The Fashion Grandmas, a collective

of around two dozen members aged
from their late 50s to mid 70s, are
social media stars with millions of fans.
They use Beijing streets as their runway well-off—have long fueled the
in videos sprinkled with nuggets Chinese outbound travel industry,
of wisdom on life and love, serving making it the biggest in the world.
up pop-up ads and livestreamed Now they’re making their mark
product sales along the way. on online commerce, a transition
speeded up by pandemic lockdowns.
Inspirational Fashion Grandmas
quotes include “Beauty is not only for According to Wunderman Thompson
the young” and “Even the elderly can research, 81% of Chinese aged over
live a wonderful life!” 55 say they are more comfortable
using digital technology post-COVID,
China’s mandatory retirement age more than any other age group.
is 60 for men and 55 for women. “China’s mobile internet industry has
Chinese seniors—educated and earned money from every group...
Fashion Grandmas
men, women, youngsters, parents, but

not the elderly,” Bian Changyong, chief
executive of Beijing Dama Technology
Company, which handles the Fashion
Grandmas’ social media, told AFP.
“This could be the last structural
opportunity of the industry.”
The Fashion Grandmas are far

from alone. There’s also Grandma
Wang Who Only Wears High Heels,
an 80-year-old with over 16 million
followers on Douyin as of June 2021,
who preaches “self-love” (in high
heels), as well as @IAmGrandmaTian
and @Woshiniwanglaoye, who have
garnered a generation Z following
attracted to their down-to-earth humor.
Fashion Grandmas
The actor influencer wielding anime-style figure—a

Name: Liu Tao, also known as reference to both her prowess
Liu Yidao in slashing prices and her prior
Age: 43 performances in martial arts dramas.
Platform: Juhuasuan
Liu’s debut was among the most
Liu Tao is one of China’s most successful of the new crop of
popular television actresses, best actors-turned-livestreamers,
known for her roles in hit series such drawing an audience of 21 million
as Nirvana in Fire and Ode to Joy, and generating RMB 148 million
with a Weibo following approaching ($23.2 million) in sales. While other
45 million as of June 2021. During the celebrities fizzled after their initial
coronavirus pandemic, Liu was one broadcasts, Liu continued to make
of many out-of-work celebrities who regular appearances, with her first
took to ecommerce livestreaming 14 livestreaming events averaging 10
as a way of generating income while million viewers each and helping 129
staying in the spotlight. brands to hit the RMB 1 million sales
milestone. Liu also helped to boost
In May 2020, Liu became an official Juhuasuan’s fortunes—although the
ambassador for Juhuasuan, Alibaba’s platform was established back in
flash sales platform, appearing as a 2013, 90% of Liu’s sales were to first-
new character named Liu Yidao (Liu time customers, who purchased a
One Knife), represented by a sword- diverse array of goods and services,
Liu Tao
including first-class air fares and Her example shows that, while fame
ocean-view properties. is no guarantee of success when it
While most KOLs host their livestreams

comes to ecommerce livestreaming,
ecommerce-related IP is a promising “From now on, my duty shall
be to select the best products
from practically indistinguishable category for development.
showrooms, Liu’s set replicates her
and slash their prices down

home, with different areas dedicated
to specific product categories. She
maintains a high energy level during
hours-long broadcasts while appearing
relaxed and approachable, often
further if they’re not
without makeup. low enough.”
Alibaba has registered trademarks
LIU TAO
for the Liu Yidao character, which it
ACTOR
aims to develop into various forms of
IP. In 2020, the animated figure was
featured in a brand collaboration with
the centuries-old knife brand Zhang
Xiao Quan consisting of a box set
of kitchen knives and an illustrated
volume from Liu Yidao titled Nine
Bargaining Tactics.
The cross-border influencer for Lazada, Southeast Asia’s biggest Sony Playstation live to sell game
Name: Tamano Ibn Khalid, also ecommerce platform after Shopee. consoles for LWH Electronics. He
known as Tam averages 10 to 15 livestream sessions
Age: 38 “I love talking a lot,” Tam tells a month, pulling in Southeast Asian
Platform: LazLive Wunderman Thompson Intelligence. audiences of up to 30,000 each time.
Tam is part of a growing roster of He goes by Tam when livestreaming Unlike mega-influencers with millions
influencers who are hired, trained to a Filipino audience and by Khalid of followers who can command 30-
and matched with Chinese brands when livestreaming to Malaysia. Like 40% of sales from each livestream
looking to sell to specific markets most livestreamers, he gives out they do, Tam is paid a flat fee for a two-
abroad. The required vibe is friendly vouchers that are only valid during hour livestream. He declined to reveal
and knowledgeable, but most the session and does lucky draws to the fee but said it brings in less than
importantly they need to speak the draw audience participation. what he earns as an English teacher.
language of the target market and be
relatable to the local audience. His first livestream was for a Chinese
brand called Winmax, where he
CROSS-BORDER
Tam is originally from Manila and demonstrated gym equipment like
ECOMMERCE ROSE
works full-time as an English teacher resistance bands and yoga mats.
46.5% IN THE FIRST
in Guangzhou. In March 2020, he was Since then, he has modeled and sold
QUARTER OF 2021 TO
introduced by friends to TechSEA, a clothes for Giordano, cooked live to
RMB 419.5 BILLION ($63.8
Guangzhou company that matches sell air fryers and juicers for Miui,
BILLION), OR 14.5% OF
livestreaming talent with brands on demonstrated earbuds for Baseus
TOTAL ECOMMERCE.
LazLive, the livestreaming platform and played Nintendo Switch and
Tamano Ibn Khalid
CREATED IN via social media marketing, and is

on its way to conquering Southeast
CHINA Asia. Looking ahead, a wide anti-
monopoly crackdown on fintech and
AMONG OTHER THINGS, 2020 online platforms more broadly could
WILL GO DOWN AS THE YEAR herald new collaborations.
THAT CHINESE BRANDS FINALLY
MADE IT ON THE WORLD STAGE. 10. TikTok takes over the world
SURPRISINGLY, IT WAS NEITHER
AN ALIBABA ECOMMERCE As short-video platform TikTok
PLATFORM NOR A TENCENT- dangles the promise of ecommerce,
OWNED SOCIAL APP THAT its Chinese sibling Douyin is already
GAINED TRACTION OVERSEAS, offering it.
BUT TWO YOUNGER UPSTARTS
THAT MANAGED TO WIN THE Over the course of 2020, the short-
RESPECTIVE ATTENTION AND video platform TikTok became one of
WALLETS OF GLOBAL GEN Z: the world’s most popular apps, peaking
TIKTOK AND THE ULTRAFAST- with 112 million global downloads in
FASHION BRAND SHEIN. May 2020. Its parent, Beijing-based
tech giant Bytedance, operates a
C-beauty has overtaken K-beauty counterpart in mainland China called
and J-beauty domestically, with a Douyin, which hints at the future of
direct-to-consumer (DTC) approach global ecommerce fueled by content.
Shutterstock
“The story
A relative latecomer to ecommerce
in China, Bytedance, through Douyin,
Douyin’s ecommerce business
has grown rapidly over the past
To that end, Douyin’s head of
ecommerce, Kang Zeyu, recently
of Douyin
is taking on established players such
as Alibaba and JD.com.
year, achieving a reported gross
merchandise value of RMB 500 billion
outlined a vision of “interest-based
ecommerce,” which he described
ecommerce
In late 2020, it barred links to third-
($76 billion) in 2020, but it has a long
way to go before it approaches the
as “helping people to discover
their potential needs.” This would
has just
party ecommerce platforms from
livestreams hosted on Douyin,
levels of Alibaba (RMB 7 trillion in
2020), JD.com (RMB 2.6 trillion), and
presumably use Bytedance’s AI
prowess to satisfy users’ desires started, and
directing users to Douyin online
stores instead. In March 2021, Douyin
Pinduoduo (RMB 1.7 trillion), and its
conversion rate reportedly lags that
to upgrade their lives and tap into
their shopping preferences via we hope
to grow
introduced flagship stores for of the established players. an understanding of their video
brands with official accounts on the consumption habits.
with you
platform and began building centers Douyin has been publicly
for logistics and product quality downplaying the importance
inspection around China, as well as of ecommerce sales numbers,
cross-border warehousing for goods
imported from Southeast Asia and
emphasizing its ability to offer a high-
quality experience for both buyers
together.”
the United Kingdom. To top it all, the and sellers, and its ultimate bet is
KANG ZEYU
platform also introduced its own that it can leverage the power of its PRESIDENT, DOUYIN
digital payment system, Douyin Pay, 600 million-plus daily active users ECOMMERCE
in early 2021. and the content they create and
consume into a compelling driver for
a new form of ecommerce.
11. Shein and the race to rule

ultra-fast fashion
Social media savvy drives a youth-

oriented brand’s viral rise.
Chinese designers have been making

waves in the world’s fashion capitals.
Angel Chen starred in Netflix’s Next
in Fashion competition last year
and collaborated with Adidas and
H&M. The 2021 Spring/Summer Paris
Fashion Week featured collections
from Masha Ma, Uma Wang and
Sandriver, whose founder, Guo
Xiuling, supplied wool to international
luxury brands such as Hermès.
But despite these inroads into high-

end fashion, the biggest Chinese
fashion brand today comes the
other end of the spectrum—
ultra-fast fashion. Most gen Zers
Shein
Shein’s success is not premised on model recent purchases and share

low prices alone. The brand relies their opinions—across TikTok and
largely on social media marketing, YouTube. Of the 10 most-watched
inviting fans around the world to join Shein try-on videos on YouTube, only
its affiliate program, through which two were sponsored by the brand.
up-and-coming influencers can
receive commissions for promoting Now the race is on to find the next
the brand with posts of their outfits. Shein, with venture capital funds
As a result, Shein’s Instagram targeting investments at potential
accounts include content from paid Chinese contenders such as Cider,
active on social media are familiar selling inexpensive wedding dresses, partnerships with mega-influencers which recently secured $22 million
with Chinese fast-fashion brand and only pivoted to broader retail like American TikToker Addison Rae from Andreessen Horowitz and DST
Shein, which has leveraged China’s in 2015. Since then, it has been on (38.4 million followers as of June 2021) Global. However, Shein’s ability to
manufacturing supply chain to a path to internet virality via global alongside reposts from lesser-known churn out endless versions of cheap
release hundreds of new ultra- social media. As a DTC retailer of creators with follower numbers in the clothing every day is not without its
cheap clothing products a day, all for apparel, home goods, pet supplies, 2,000 to 50,000 range. downsides, chief among them the
distribution on a global scale. and just about everything else, environmental costs associated with
Shein has doubled its sales for eight The brand’s defining strength is a low-cost manufacturing and clothing
Founded around 2008 by consecutive years. Recent reports social media presence based on meant to be cast aside almost as
entrepreneur Xu Yangtian (also known have valued the company at $30 user-generated content. The label is quickly as it can be made.
as Chris Xu) in Nanjing as Sheinside. billion, placing it in ranks that include perhaps best known for appearing
com, the somewhat secretive H&M ($38 billion) and Zara ($21 billion). in thousands of review videos or
company initially specialized in “clothing hauls”—in which creators
Shein
12. C-beauty goes global Founded just five years ago by

Yatsen Global, Perfect Diary has
China’s “internet-famous brands” are pioneered a concept it terms “beauty
developing a new model of DTC discovery” by focusing on limited-
selling based on marketing innovations. edition products, many created via
brand collaborations. And like other
Homegrown beauty brands such leading C-beauty brands, it has
as Perfect Diary and Florasis are become adept at integrating Chinese
taking the Chinese market by storm, cultural elements into its products,
outselling big names from Japan, tying into the broader guochao—or
South Korea and France as they nationalist chic—trend.
seize the lead in online sales in the
color cosmetics category. Perfect Perfect Diary’s success at home
Diary is a prime example of the new fueled a $617 million US initial public
crop of Chinese wanghong (“internet- offering (IPO) in November 2020 for
famous”) brands that target young Yatsen Global, which is now turning
consumers with frequent releases its attention to the rest of the world.
of affordable new products sold Over the past year, Yatsen Global has
primarily through DTC channels acquired two international skincare
and supported by private traffic brands, Eve Lom of the United
marketing via WeChat groups. Kingdom and Galenic of France,
signaling ambitions to expand from
its current focus on color cosmetics
Troye Sivan, Australian singer-songwriter and global brand
ambassador for Perfect Diary
produced by contract manufacturers To further boost its presence

to more advanced research and overseas, Perfect Diary tapped
development. Australian singer-songwriter Troye
Sivan as a brand ambassador, joining
For Perfect Diary’s expansion, Yatsen Chinese movie star Zhou Xun.
Global has opted to turn to Southeast
Asia’s emerging markets, which exhibit
strong potential for beauty brands
with a projected annual compound
growth rate of 9.3%—even higher
than China’s 8.23%.
Perfect Diary has already become

a top seller in several countries,
leading the cosmetics rankings in
Malaysia during 2020 Singles’ Day
festival on Shopee, in Singapore
during the 12.12 shopping festival
in December 2020, and in Vietnam
during Lazada’s Super Brand Day on
November 11.
Perfect Diary x The Met

13. Fintech’s reckoning But while nearly all offline merchants

in China accept both forms of
Chinese fintech has had its wings payment, online has been a different
clipped by regulators, in a move story. Until recently, shoppers on
that could have ramifications for Alibaba’s ecommerce platforms
anti-monopolistic practices by tech haven’t been able to use WeChat Pay
companies globally. for their purchases, and shoppers
on JD.com and Pinduoduo—
In China, two mobile payment which counts Tencent as a major
providers, Alibaba’s Alipay and investor—could not use Alipay.
Tencent’s WeChat Pay, operate
competing systems that together What’s more, brands and merchants
control as much as 95% of the market. had to pick between one platform
As Chinese consumers have largely or the other. For example, Alibaba
leapfrogged credit card usage and kept fashion brands on Taobao from
adopted digital payments on a mass selling on JD.com, giving it a decided
scale, the operators of these systems edge in the apparel business.
have been able to collect enormous
amounts of data from transactions But the walled gardens built up by
and use it to develop proprietary tech firms over the past decade are
insights into consumer behavior. now crumbling, with Alibaba bearing
the brunt of regulatory scrutiny thus
far. In late 2020, Chinese authorities
Shutterstock
put a halt to Alipay parent Ant “Alibaba, Tencent, Meituan,

Financial’s planned mega-IPO and Pinduoduo and JD.com have
launched an antitrust investigation already signaled plans to increase
into Alibaba’s ecommerce business investments substantially in the
practices, resulting in a record $2.8 coming year,” Vey-Sern Ling, senior
“Over time, this will lead to

billion fine and a mandated end to Asia internet analyst at Bloomberg
forced exclusivity. Intelligence, tells Wunderman
Thompson Intelligence. “This means
more innovation.” The crackdown is spreading more sacrificing profit to benefit users
broadly to the platform economy, with and merchants, driven by a need to
new rules issued in February 2021 by compete in a different way.”
VEY-SERN LING
SENIOR ANALYST, BLOOMBERG INTELLIGENCE the State Administration of Market
Regulation specifically targeting tech Ling adds: “Over time, this will lead to
firms, and numerous reports of fines more innovation.”
being levied against companies for
anti-competitive practices. China’s anti-monopoly crackdown
comes at a time when multiple
While these moves are unlikely to governments around the world are
dislodge any of the giant players, also trying to rein in the power of tech
they will require such players to work companies for a slate of reasons,
much harder for future growth, rather ranging from anti-trust to political
than relying on their market power. control to spreading false news.
THE NEW
LUXURY
THE LUXURY SECTOR—ONE transformation amid concerns over In a twist, many of the new products Cartier hosted a major Taobao Live
OF THE LAST HOLDOUTS brand dilution and the willingness of were made available for sale once broadcast as part of the Singles’
TO EMBRACING AN ONLINE core customers to make big-ticket they appeared on the show, a rarity Day presales. Celebrity brand
FUTURE—IS SOFTENING ITS purchases online. for luxury brands, which typically ambassadors made appearances to
STANCE. use such events to preview help promote more than 400 items,
But, as with everything else, the upcoming collections. including a lavish diamond necklace
14. Hard luxury goes online coronavirus upended normal rules priced at RMB 190 million ($28.3
and playbooks. In 2020, one of As China reopened, Watches & million). The two-hour broadcast
Even the most rarefied brands have the most important and exclusive Wonders returned to China in IRL drew more than 776,000 viewers,
embraced digital channels in China. events, Watches & Wonders for an exclusive offline event in and is one example of how even the
Geneva, shifted to an entirely September 2020. This featured most rarefied brands seek to appeal to
Global luxury brands that previously online format open to the public. shoppable showcases with a Chinese consumers on their home turf.
relied on Chinese tourists flocking to For the Chinese market, Watches & corresponding online partnership
their stores in Paris, Milan, London Wonders went a step further with an with Tmall Luxury Pavilion, featuring In China, the pandemic also pushed
and New York had to shift gears expansive livestreaming campaign shoppable showcases throughout several other sectors, such as real
during the pandemic and reach them in partnership with Tmall Luxury Tmall and on the official flagship estate and autos, that were previously
instead on ecommerce platforms Pavilion and Net-a-Porter. The 2020 stores of participating brands, slow to switch to selling online,
such as Tmall Luxury Pavilion and Watches & Wonders Tmall Watch including Net-a-Porter (a subsidiary to make major pushes into digital
JD.com. Show ran over five days in April, of Richemont, also a major partner channels. Livestreaming emerged as a
and included the debuts of more than of Watches & Wonders), with curated key route to raising brand awareness,
Until the pandemic hit, one major 100 new models from nine Richemont content and immersive experiences educating consumers, and driving
holdout had been “hard luxury,” watch brands, including Panerai, Jaeger- promoting new timepieces. sales of major purchases, a trend
encompassing high-end watches LeCoultre, Piaget and Cartier (which that is likely to make its way around
and fine jewelry, a sector that has also launched its own global platform Hard luxury’s online pivot reached the world as more consumers grow
been slower to embrace digital in English, French and Chinese). a high point a month later, when used to browsing digitally.
15. Virtual possessions including its classic Ghibli model

in blue, pink and gold versions. The
Luxury brands in China seed aspiration collaboration marked the first time an
in gamers, led by automakers. auto brand was featured in the hugely
popular game, and was reportedly
Luxury automakers are cultivating part of a strategy to raise Maserati’s
the next generation of consumers, profile among young men, since the
even those who can’t afford their Chinese market for the brand had
pricey wheels yet. been predominantly female.
China was the only major auto As one of the top-ranking mobile
market in the world to experience game titles in China, Game for Peace
growth last year, and luxury has been a popular choice for other
brands’ sales surged. More than luxury auto brands. During the
2.5 million luxury cars were sold in week-long Lunar New Year holiday in
China in 2020, up 14.7% from 2019 2021—a peak gaming period—Aston
and representing 13% of overall Martin and Airbus Helicopters paired
passenger vehicle sales, according to up to offer limited-edition in-game
statistics from the China Passenger skins. Even Tesla, which largely
Car Association. eschews overt marketing campaigns,
worked with the game to offer virtual
In early 2020, Maserati partnered models and an in-game shop where
with Tencent’s Game for Peace— players could purchase real-life
the Chinese mobile version of Tesla-branded accessories.
PlayerUnknown's Battlegrounds—
to offer virtual cars for players,
Tesla
Rolls-Royce in Tencent’s QQ Speed

QQ Speed, another Tencent mobile

game, marked its second anniversary
in 2020 by collaborating with the
ultra-luxe Rolls-Royce brand for
its first launch of virtual cars, a
Dawn model and a futuristic 2035
edition QEX, with racing features
and special skins to enhance the
player experience. Rolls-Royce also
offered a collection of virtual gifts
and coupons for players who logged
in to play, allowing them to engage on
a direct level with one of the world’s
most aspirational brands.
And while auto brands have taken

the lead among high-end consumer
categories in Chinese gaming, globally
a number of luxury fashion brands
have turned to offering virtual goods,
from Louis Vuitton’s League of Legends
collection to Gucci’s $12 Roblox sneakers
to the slew of designer labels (including
Marc Jacobs and Valentino) that
flocked to Nintendo’s Animal Crossing
last year to dress player avatars.
Maserati in Tencent’s Game for Peace
THE Millennials (born after 1980) make

up about a quarter of China’s
SOCIO-POLITICAL population, but account for half of
CONSUMER luxury sales, and some 70% of luxury
fashion and lifestyle sales on Tmall.
A NEW GENERATION OF Meanwhile, gen Zers are making their
CHINESE CONSUMERS first luxury purchases at the age of 20
POSSESSES DISCRETIONARY on average, according to Bain & Co.
INCOMES AND A DISTINCT
CULTURAL AWARENESS THAT 16. Guochao commerce
SETS THEM APART FROM OLDER
GENERATIONS AND THEIR Purchasing moves beyond serving as
WESTERN COUNTERPARTS. signifier of status to express taste and
THEY PURCHASE LUXURY individuality, with a dash of patriotism.
GOODS LESS TO SIGNIFY SOCIAL
STATUS AND MORE TO EXPRESS One of biggest buzzwords in
THEIR INDIVIDUAL TASTES marketing and design in recent years at a time of rising geopolitical influence, rapid economic growth, so
AND CULTURAL AND SOCIO- is guochao, or “national trend” (国潮), tensions with the United States. they have a real, innate, fundamental
POLITICAL PREFERENCES, reflecting rising interest in domestic confidence about themselves and
LOOKING FOR INSPIRATION IN brands, such as sportswear giant “Young people have only seen the about the country,” said Arnold Ma
SOURCES AS VARIED AS FINE Li-Ning, among young consumers China that has most of the world's of Qumin. “That's why guochao is
ART, POPULAR CULTURE, ACG, who take pride in doing their part to billion-dollar startups, the best super popular.”
STREETWEAR AND SNEAKERS. support “made in China,” especially technology in the world, global
Li-Ning’s limited-edition Way of Wade sneakers
Guochao generally refers to the

incorporation of Chinese elements
into product design, and while this
often translates to taking inspiration
from traditional sources of art,
the term also encompasses time-
honored Chinese brands, patriotic
insignia, classic animation and other
IP that evokes nostalgia, and even
cutting-edge advances such as the
national space program.
The core demographic for guochao

products are gen Z and millennial
consumers, who are keen to explore
China’s expansive cultural heritage
in novel ways, such as through the
subcategory of culturally oriented
collaborations known as wenchuang
(literally, cultural creations) with
institutions such as the Palace
Museum in Beijing.
Li-Ning
Another major trend is collectible factor than brand names. China’s

toys (also known as art toys or thriving sneaker resale market has
designer toys), including rare seen limited-edition drops from
figurines with potentially high domestic brands such as Li-Ning and
resale value. The products—often Anta sneakers selling for many times
involving collaborations between toy their original prices, and domestic
manufacturers such as Pop Mart and streetwear brands have been
brands, artists and designers—have drawing more attention from Chinese
sparked a collecting frenzy among cultural consumers for their fusions
China’s cultural consumers, and their of traditional design elements with
distribution through unlabeled “blind contemporary streetwear.
boxes” makes them affordable as
entry-level art, adding an element of
play and surprise to the experience
of collecting. China’s collectible toy
market was estimated to be worth
RMB 20.7 billion ($3.2 billion) in 2019
and is expected to rise more than
RMB 76 billion ($11.7 billion) by 2024.
Chinese cultural consumers
also prize limited editions and
collaborations in fashion, with
exclusivity often a more important
Top: Pop Mart’s blind box dolls
Bottom: Shutterstock
17. The ethical consumer Thirty-seven percent of Chinese

consumers strongly agree that
Sustainability, feminism, and inclusivity companies should put people and
as part of the marketing equation. planet before profit compared
to 33% of Americans, according
Like their Western counterparts, to a 2021 survey by Wunderman
Chinese consumers are becoming Thompson Intelligence. Chinese
increasingly attuned to sustainability, respondents also indicated a greater
gender equality and inclusivity. willingness to switch brands based
on sustainability factors than
The stresses and demands of Western consumers.
contemporary Chinese society
have pushed a growing number of Reducing packaging waste has
Chinese consumers to seek out become a top priority. Alibaba
more minimalist and purposeful has established recycling stations
lifestyles. The government’s push and introduced in-app bonuses to
towards reducing the nation’s encourage customers to participate,
carbon footprint and the COVID-19 while close to 2,000 universities
pandemic have heightened consumer across the country have set up
sensitivity towards environmental packaging-sharing hubs to encourage
issues, health and wellbeing. reuse by members of the campus
communities. Brands are also
creating more reusable packaging,
Biodegradable packaging from Alibaba’s Tmall and
Cainiao Logistics
especially around major holidays

when gift boxes are traditionally
given. The new trend is to offer boxes
that can be saved and reused for
various purposes, such as to store
jewelry or as a lunch container.
Another area where Chinese

consumers have been actively
speaking out is on traditional beauty
standards and gender stereotypes.
The body positivity movement is
gaining traction, represented by the
success of celebrity agent-turned-
influencer Yang Tianzhen (see Five
Influencers to Watch, page 32).
Chinese intimates brand Neiwai is
another prominent example, with
campaigns over the past two years
that highlight a diverse array of
body types wearing its minimalist
and comfortable designs. Aimed
at empowering female consumers,
Neiwai
“Young people have only

seen the China that has most Neiwai’s marketing shares women’s forced to apologize for an ad that
of world’s billion-dollar personal experiences in challenging

stereotypes and has generated a
showed a woman purposely making
herself unattractive by removing her
startups, the best technology consistently positive response on

social media channels.
makeup with its products to avoid an
unwanted suitor.
in the world, global influence, Feminism has also emerged as a

universal topic, rather than one just
rapid economic growth, to be addressed during occasions
such as International Women’s
so they have a real, innate, Day on March 8. On social media,
Chinese netizens have been quick
fundamental confidence to react to brand marketing that
objectifies women or promotes
about themselves and about gender stereotypes. In early 2021,

the Chinese DTC lingerie brand
37% OF CHINESE
the country.”
CONSUMERS STRONGLY
Ubras came under fire for ads
AGREE THAT COMPANIES
featuring a male comedian who
SHOULD PUT PEOPLE
implied that wearing the company’s
AND PLANET BEFORE
ARNOLD MA underwear would allow women
FOUNDER AND CEO, QUMIN PROFIT.
to find career success simply by
“lying down.” Around the same
time, tissue brand Purcotton was
BY THE NUMBERS
BY THE N U M B ERS TRA NSC E NDE NT RETAIL: APAC 58
To assess the readiness of other We further parsed the data by

COUNTRY SAMPLE SIZES
markets to embrace new channels gender and generations, to produce a
and behaviors pioneered in China, nuanced and at times surprising CHINA 2,076
we analyzed survey data from picture for marketers of where these
10,158 respondents in China, markets are heading.
AUSTRALIA 2,021
Australia, India, Indonesia, Japan and
Thailand who shop online at least The survey covered 10,158
once a month. respondents was conducted INDIA 2,000
between March 26 and April 14, 2021.
We looked at post-pandemic versus It was conducted by Censuswide for INDONESIA 1,015
pre-pandemic frequency of online Wunderman Thompson Commerce’s
shopping; how much consumers Future Shopper 2021 and analyzed by
JAPAN 2,021
are happy to spend online; to Wunderman Thompson Intelligence.
what extent they are swayed
by personalized offers, online THAILAND 1,025
influencers and others; and their
openness to spending on social TOTAL 10,158
media and gaming platforms.
HOW OFTEN DO YOU SHOP ONLINE?

7%
CHINA
SHOPPING FREQUENCY
6%
7%
AUSTRALIA 9%
6%
INDIA 6%
9%
2%
6%
INDONESIA
6%
2%
JAPAN EVERY DAY 6%
THAILAND
27%
12%
27%
19%
12%
11%
19%
3%
11%
14%
3%
4-6 TIMES A WEEK 14%
While Chinese consumers overall to 7% in China. The proportions of 38%

20%
38%
are undoubtedly the online shopping Australian, Indonesian and Thai daily 21%
20%
30%
21%
champions of the world, other online shoppers all hover around 6%. 9%
30%
29%
9%
markets are catching up. 2-3 TIMES A WEEK 29%
Thai and Indonesian consumers are 15%
21%
27% of Chinese shop online four to further behind on the curve, with 15%
21%
21%
six times a week, compared with most likely to shop two to three 17%
21%
19%
17%
19% of Indians, 14% of Thais, 12% of times a week. 18%
19%
ONCE A WEEK 18%
Australians and 11% of Indonesians.
10%
Japanese consumers are the least 23%
10%
16%
23%
However, when it comes to a small frequent online shoppers. 19%
16%
32%
band of early, dedicated converts 19%
17%
32%
ONCE EVERY 2-3 WEEKS
who shop online every single Japanese consumers are most likely 17%
day, the results are more even to space out their online shopping 4%
18%
4%
across countries. to once a month (34%) or once every 15%
18%
18%
15%
two to three weeks (32%). 34%
18%
16%
34%
9% of Indian consumers say they ONCE
0
A5MONTH10 15 20 25 30 35 16%
shop online every day, compared 0 5 10 15 20 25 30 35

WHAT IS THE MOST YOU ARE HAPPY TO SPEND ON A PRODUCT ONLINE?

MEAN ($)
CHINA
SPENDING POWER AUSTRALIA

INDIA
$1,507
$1,507
$1,507
INDONESIA $1,177
$1,177
JAPAN $1,177
THAILAND
$239
$239
$239
$91
$91
$91
$523
$523
$523
Chinese consumers are willing to
spend the most on online purchases $471
$471
$471
(average of $1,507), though Australia 0

0 400
400 800
800 1,200
1,200 1,600
1,600
0 400 800 1,200 1,600
is not far behind (average of $1,177). WHAT IS THE MOST YOU ARE HAPPY TO SPEND ON A PRODUCT ONLINE?
MEAN ($) - GENDER BREAKDOWN
MALE $2,020
$2,020
Overall, males are generally willing FEMALE
$2,020
$1,134
$1,134
$1,134
CHINA
to spend more online, except in
$2,314
$2,314
India, where female shoppers are $2,314
$740
$740
AUSTRALIA $740
marginally ahead.
$234
$234
$234
$248
$248
INDIA $248
$100
$100
$100
$81
$81
INDONESIA $81
$758
$758
$758
$293
$293
JAPAN $293
$702
$702
$702
$279
$279
THAILAND $279
0
0 750
750 1,500
1,500 2,250
2,250 3,000
3,000
0 750 1,500 2,250 3,000

MEAN ($) - AGE BREAKDOWN
16-24 $1,221
$1,221
25-34 $2,111
$2,111
35-44 $1,350
$1,350
45-54 $1,259
$1,259
$412
55+ $412
CHINA
$336
$336
$971
$971
$2,148
$2,148
$1,180
$1,180
$1,853
$1,853
AUSTRALIA
There are significant country Over-55s in Australia are also $192

$192
differences when it comes to what more willing to fork out larger $258
$258
$288
consumers are willing to spend amounts online. $288
$247
$247
online, as well as differences among INDIA
$168
$168
generations. India and Indonesia are the most

$62
uniform across generations when it $62
$99
$99
In China, millennials and older comes to how much consumers are $97
$97
$110
generation Zers are more willing to spend online. $110
$100
INDONESIA $100
comfortable spending larger
amounts online. $262
$262
$282
$282
$420
$420
In Japan and Thailand, it is the $655
$655
$735
over-55s who are most willing to JAPAN $735
spend larger amounts online, likely $118

$118
a reflection of disposable income as $469
$469
$407
much as general comfort with $407
$885
$885
online shopping. THAILAND
$1,404
$1,404
0 750 1,500 2,250
0 750 1,500 2,250

($)
MEDIAN
MEAN $345
$ 1,507
CHINA
$173
$1,177
AUSTRALIA
Bear in mind that the mean or

average is skewed upwards by a $104
small number of big spenders.

$239
INDIA
The median price—what the bulk
of consumers are willing to spend—
$25
can be far lower.
$91
INDONESIA
However, the mean is a useful
indicator of market potential for
$173
luxury brands and other big-ticket
retailers. $523
JAPAN
In China, for example, luxury brands

are increasingly going online. $52
$471
THAILAND
0 400 800 1,200 1,600
“MORE COMFORTABLE” USING DIGITAL TECHNOLOGY POST-COVID-19
CHINA
POST-PANDEMIC ATTITUDES AUSTRALIA

INDIA
62%
62%
INDONESIA 50%
JAPAN 50%
THAILAND
76%
76%
73%
73%
39%
39%
The pandemic and accompanying themselves more comfortable using
88%
lockdowns have pushed record digital technology post-pandemic. 88%
numbers online, often through sheer 0 25 50 75

0 25 50 75
necessity when shops were 39% of Japanese are more “MORE COMFORTABLE” USING DIGITAL TECHNOLOGY POST-COVID-19 -
GENDER BREAKDOWN
shuttered. comfortable in the digital realm 61%
MALE
post-COVID-19. FEMALE
61%
63%
63%
CHINA
Thailand has made the biggest
46%
strides in this game of digital catch- Overall, females are marginally more 46%
52%
AUSTRALIA 52%
up, with 88% of Thais now more likely than males to say they are
comfortable using digital technology, more comfortable using digital tools 74%
74%
80%
80%
followed by 76% of Indians, 73% of post-pandemic. INDIA
Indonesians and 51% of Australians 72%

72%
73%
declaring themselves now INDONESIA 73%
more familiar with digital tools. 39%

39%
38%
JAPAN 38%
Even in China, which already boasted 88%

88%
a high level of digital literacy THAILAND
88%
88%
0 10 20 30 40 50 60 70 80 90
before the pandemic, 62% declare 0 10 20 30 40 50 60 70 80 90
“MORE COMFORTABLE” USING DIGITAL TECHNOLOGY POST-COVID-19 -

AGE BREAKDOWN
16-24 50%
50%
25-34 66%
66%
35-44 62%
62%
58%
45-54 58%
81%
55+ CHINA 81%
55%
55%
56%
56%
52%
52%
51%
51%
32%
32%
AUSTRALIA
In China, older generations played 70%

70%
catch-up, with 81% of over-55s 77%
77%
83%
saying they are more comfortable 83%
80%
80%
using digital technology INDIA
75%
75%
post-pandemic.
63%
63%
73%
73%
The age pattern is flipped in other 77%
77%
82%
Asian countries, with younger 82%
71%
INDONESIA 71%
generations more likely to report
growing ease with technology than 62%
62%
45%
their elders. 45%
37%
37%
35%
35%
30%
Thailand is a standout, with more JAPAN 30%
than eight out of 10 in every age 83%

83%
range reporting they are more 87%
87%
90%
comfortable using digital tools. 90%
90%
90%
85%
THAILAND 85%
0 10 20 30 40 50 60 70 80 90
0 10 20 30 40 50 60 70 80 90
AGREE THAT ONLINE SHOPPING WILL BE MORE IMPORTANT TO ME

IN 2021 - AGE BREAKDOWN
16-24 85%
LOOKING AHEAD 25-34

35-44
85%
86%
86%
86%
86%
90%
45-54 90%
91%
55+ CHINA 91%
62%
62%
66%
66%
61%
61%
58%
58%
43%
43%
AUSTRALIA
87%
87%
89%
89%
93%
93%
84%
84%
More than two thirds of respondents INDIA
95%
95%
across the board—slightly less in

79%
Japan—say online shopping came to AGREE THAT ONLINE SHOPPING WILL BE MORE IMPORTANT
79%
81%
81%
their rescue in 2020. Further, TO ME IN 2021 82%
82%
82%
they expect this trend to continue 87%
82%
86%
INDONESIA 86%
into 2021.
60% 73%
73%
73%
Thais were most positive about 73%
72%
89% 72%
online shopping going forward, 61%
61%
54%
with nine out of 10 Thais in all age 81%
JAPAN 54%
groups saying online shopping will be 94%

94%
more important to them in 2021. 64% 96%
96%
98%
98%
96%
96%
Indians and Indonesians are not far 96%
THAILAND
97%
97%
0 10 20 30 40 50 60 70 80 90 100
behind, at 89% and 81% respectively. 0 25 50 75 100 0 10 20 30 40 50 60 70 80 90 100
CHINA AUSTRALIA INDIA INDONESIA JAPAN THAILAND

HOW IMPORTANT ARE RECOMMENDATIONS FROM FRIENDS WHEN

PURCHASING A PRODUCT ONLINE? (VERY + QUITE)
SOURCES OF INFLUENCE 79%
58%
80%
76%
40%
76%
0 10 20 30 40 50 60 70 80
Personalized offers, friend

recommendations, and influencer HOW IMPORTANT ARE PERSONALIZED OFFERS WHEN HOW IMPORTANT ARE ONLINE INFLUENCERS WHEN PURCHASING
endorsements are key elements of PURCHASING A PRODUCT ONLINE? (VERY + QUITE) A PRODUCT ONLINE? (VERY + QUITE)
China̕s online commerce world. 87% 71%
Likewise, consumers in India, 62% 36%
Thailand and Indonesia also rank

88% 77%
these elements as very or quite
important when deciding whether to 82% 46%
buy something online.
50% 41%
However, consumers in Japan and

Australia are less interested in being 93% 73%
marketed to this way. 0 20 40 60 80 0 10 20 30 40 50 60 70 80

SOURCES OF INFLUENCE
Overall, consumers say they are some online marketers are tapping

more likely to be swayed by the into this shift by promoting friend
opinions of friends and family than recommendations, micro-influencers
those of social media influencers, and peer-to-peer networks.
celebrities and even in-store sales
assistants. In India, Indonesia and Thailand,
though, there̕s still a fair amount
In China, the country that created of interest in social media
the mega-influencer capable influencers. In India, for example,
of moving millions of dollars of 23% of consumer say social media
merchandise in a single livestream, a influencers have most clout when
degree of influencer fatigue is it comes to their online purchasing
setting in. decisions, while 21% cite family
members and 20% say friends.
About 24% of Chinese say
friends and family are now their The Japanese are most likely to
biggest influence on buying declare themselves unmoved by any
decisions, versus 16% who cite marketing tactics, with 39% saying
social media influencers and 4% nothing and no one influences their
who say celebrities. In China, buying decisions.
WHO INFLUENCES YOU MOST ABOUT WHAT YOU’D LIKE TO BUY?
6% 2%
31% 2%
4% 6%
11% 1%
39% 2%
NOTHING/NO ONE 18% BUSINESS PEOPLE 3%
24% 7%
20% 2%
20% 4%
15% 4%
12% 3%
FRIENDS 12% COLLEAGUES 4%
25% 2%
17% 2%
21% 6%
31% 1%
18% SPORTS PEOPLE 1%
FAMILY MEMBERS 24% &ATHLETES 2%
16% 6%
13% 1%
23% 2%
25% 0.5%
SOCIAL MEDIA 12% 1%
INFLUENCERS 19% JOURNALISTS 0.3%
7% 0.2%
4% 2%
8% 0.4%
7% 2%
CELEBRITIES 4% OTHER 0.7%
8% 1.%
5% 1%
4% 1%
3% 2%
2% 0.3%
IN-STORE SALES 6% 0.5%
ASSISTANTS 8% POLITICIANS 0.2%
0 5 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35 40

DO YOU INTEND TO SHOP MORE THROUGH SOCIAL MEDIA

PLATFORMS IN THE FUTURE? - YES
CHINA
SOCIAL COMMERCE AUSTRALIA

INDIA
80%
80%
INDONESIA 45%
JAPAN 45%
THAILAND
78%
78%
69%
69%
25%
25%
There is high interest in shopping interest in shopping on social
on social channels in almost all the platforms. 88%
88%
countries surveyed, led by Thailand. 0 10 20 30 40 50 60 70 80 90

0 10 20 30 40 50 60 70 80 90
Females are more likely than males DO YOU INTEND TO SHOP MORE THROUGH SOCIAL MEDIA
PLATFORMS IN THE FUTURE? - YES - GENDER BREAKDOWN
88% of Thais say they intend to shop to be interested in buying on social
MALE 77%
more through social media platforms platforms in every country except FEMALE
77%
83%
CHINA 83%
in future, followed by 78% of Indians, Indonesia, where males are ahead.
38%
69% of Indonesians and 45% of 38%
47%
AUSTRALIA 47%
Australians.
77%
77%
81%
81%
In China, where social commerce is INDIA
already big, 80% of consumers say 72%

72%
65%
they intend to shop more on social INDONESIA 65%
platforms in future. 17%

17%
33%
JAPAN 33%
Japanese consumers are least 87%

87%
interested, though a significant THAILAND
89%
89%
0 10 20 30 40 50 60 70 80 90
minority—one quarter—express 0 10 20 30 40 50 60 70 80 90
DO YOU INTEND TO SHOP MORE THROUGH SOCIAL MEDIA PLATFORMS IN

THE FUTURE? - YES - AGE BREAKDOWN
16-24 77%
77%
25-34 86%
86%
79%
35-44 79%
81%
45-54 81%
62%
55+ CHINA 62%
63%
63%
49%
49%
45%
45%
31%
31%
17%
17%
AUSTRALIA
Gen Z and millennials, predictably, 78%

78%
are generally more interested 83%
83%
80%
in social shopping than older 80%
51%
51%
generations. INDIA
38%
38%
65%
The anomaly is Thailand, where 82% 65%
73%
73%
of over-55s say they are interested 69%
69%
68%
in social shopping, the highest 68%
38%
INDONESIA 38%
among all countries.
57%
57%
39%
39%
22%
22%
20%
20%
12%
JAPAN 12%
93%
93%
91%
91%
89%
89%
69%
69%
82%
THAILAND 82%
0 10 20 30 40 50 60 70 80 90
0 10 20 30 40 50 60 70 80 90
WHAT WOULD ENCOURAGE YOU TO PURCHASE MORE THROUGH

SOCIAL PLATFORMS IN THE FUTURE? (LIVESTREAM COMMERCE)
CHINA
LIVE COMMERCE AUSTRALIA

INDIA
26%
INDONESIA
7%
JAPAN
THAILAND
19%
19%
4%
Livestream commerce, pioneered in

China, is still fairly new in most other 28%
markets but it is starting to garner 0 5 10 15 20 25
interest in some.
28% of Thai respondents WHAT WOULD ENCOURAGE YOU TO PURCHASE MORE THROUGH
say livestreaming would nudge them SOCIAL PLATFORMS IN THE FUTURE? (ENDORSEMENTS/INFLUENCERS)
to buy more on social platforms, 80%
more even than the 26% of Chinese

who say the same. 45%
79%
19% of Indians and Indonesians
say they could also be enticed 80%
by livestreaming to buy on social
platforms. Just 7% of Australians 31%
and 4% of Japanese feel the same.

86%
0 10 20 30 40 50 60 70 80 90
SEAMLESS EXPERIENCE
I WISH BRANDS COMMUNICATED SEAMLESSLY WITH ME

ACROSS DIFFERENT CHANNELS E.G. FROM SOCIAL MEDIA TO
BRAND WEBSITE TO STORE (STRONGLY + SOMEWHAT AGREE)
CHINA
80%
AUSTRALIA
Consumers are very interested in an INDIA
experience where they can navigate INDONESIA 45%
JAPAN
without friction across channels.
THAILAND 79%
86% of Thai consumers say they

80%
wish brands communicated with
them seamlessly across channels, 31%
slightly more than the 80% of

Chinese, Indian and Indonesian 86%
consumers who say the same. 0 10 20 30 40 50 60 70 80 90
Australians and Japanese are less

keen, perhaps because of privacy
and tracking concerns.
DO YOU PLAY GAMES ON ANY OF THE FOLLOWING PLATFORMS?

41%
CHINA
GAMING PLATFORMS
31%
41%
AUSTRALIA
27%
31%
INDIA 25%
27%
INDONESIA 12%
25%
JAPAN 19%
12%
THAILAND CONSOLE 19%
70%
33%
70%
60%
Across the region, mobile gaming is 33%
45%
60%
the most popular platform, though 18%
45%
54%
significant numbers also play games COMPUTER
18%
54%
on consoles and on their computers.
86%
61%
86%
More than eight in 10 respondents in 83%
61%
88%
83%
China, India, Indonesia and Thailand 34%
88%
play games on their mobile phones. 91%
34%
MOBILE PHONE 91%
By contrast, six out of 10 Australians 1%

4%
1%
play games on mobile and only three 2%
4%
out of 10 Japanese do. 2%
2%
5%
2%
1%
5%
NONE OF THESE
Just under half of Japanese say they 1%
don’t play games on any platform. 6%

20%
6%
4%
20%
7%
4%
48%
7%
4%
48%
I0DON’T
10 PLAY20
GAMES
30 ON ANY
40 PLATFORM
50 60 70 80 90 4%
0 10 20 30 40 50 60 70 80 90
PLAYING GAMES ON MOBILE PHONES - AGE BREAKDOWN
16-24 88%
GAMER DEMOGRAPHICS 25-34

$1,507
35-44
88%
89%
89%
83%
83%
80%
45-54 80%
$1,177 91%
55+ CHINA 91%
$239
72%
72%
67%
67%
$91 69%
69%
Those playing games on mobile 61%
61%
26%
$523 26%
phones are fairly evenly split AUSTRALIA
gender-wise, though females are $471 78%

78%
pulling ahead in Australia, China, 0 400 800 1,200 1,600
86%
86%
89%
Japan and Thailand. 89%
79%
79%
PLAYING GAMES ON MOBILE PHONES - GENDER BREAKDOWN 70%
INDIA 70%
$2,020
China is a gaming nation, with more $1,134
84%
88%
than eight in 10 Chinese respondents 87% 88%
91%
CHINA $2,314 91%
playing games on mobile phones. $740 87%
87%
49% 84%
What’s surprising is 91% of over-55s 66%
84%
57%
AUSTRALIA $234 INDONESIA 57%
say they do so. $248
83%
40%
84% 40%
$100 44%
INDIA
Thailand is on par with China, also $81 44%
41%
41%
with more than eight out of 10 saying 90%
86%
$758
35%
35%
18%
they play mobile games and 82% of INDONESIA $293 JAPAN 18%
over-55s saying they do. 32%

$702 84%
35% 84%
$279 94%
JAPAN 94%
0 750 1,500 2,250 3,000 93%
Mobile games are also very popular 91%
93%
89%
89%
in India and Indonesia, though less so THAILAND
92%
THAILAND
82%
82%
0 10 20 30 40 50 60 70 80 90 0 10 20 30 40 50 60 70 80 90
with older generations. 0 10 20 30 40 50 60 70 80 90
MALE FEMALE
DO YOU SPEND MONEY IN ANY OF THOSE PLATFORMS? - YES
CHINA
GAMING COMMERCE AUSTRALIA

INDIA
77%
77%
INDONESIA 52%
JAPAN 52%
THAILAND
80%
80%
57%
57%
The majority of Chinese, Indian and
Thai respondents already spend 32%
32%
money in gaming platforms.
72%
72%
Males are more likely than females 0

0
10
10
20
20
30
30
40
40
50
50
60
60
70
70
80
80
90
90
to spend money in gaming platforms DO YOU SPEND MONEY IN ANY OF THOSE PLATFORMS? - YES
- GENDER BREAKDOWN
in all countries except Japan. MALE 81%
81%
75%
FEMALE 75%
CHINA
61%
61%
49%
AUSTRALIA 49%
82%
82%
77%
INDIA 77%
61%
61%
54%
INDONESIA 54%
30%
30%
34%
JAPAN 34%
78%
78%
66%
THAILAND 66%
0 10 20 30 40 50 60 70 80 90
0 10 20 30 40 50 60 70 80 90
DO YOU INTEND TO SHOP MORE THROUGH SOCIAL MEDIA

PLATFORMS IN THE FUTURE? - YES - AGE BREAKDOWN
16-24 87%
87%
25-34 88%
88%
35-44 76%
76%
61%
45-54 61%
55%
55+ CHINA 55%
63%
63%
58%
58%
54%
54%
40%
40%
15%
15%
AUSTRALIA
Across all countries surveyed, while 81%

81%
younger generations are most likely 86%
86%
78%
by far to spend money in gaming 78%
56%
56%
platforms, their elders appear to be INDIA
31%
31%
catching up.
60%
60%
63%
63%
55% of Chinese over-55s and 32% 55%
55%
38%
of their Thai counterparts already 38%
36%
INDONESIA 36%
spend money in gaming platforms.
49%
49%
40%
40%
33%
33%
27%
27%
15%
JAPAN 15%
81%
81%
80%
80%
68%
68%
50%
50%
32%
THAILAND 32%
0 10 20 30 40 50 60 70 80 90
0 10 20 30 40 50 60 70 80 90
WOULD YOU BE INTERESTED IN BUYING THE SAME PRODUCTS FOR

YOURSELF AND FOR YOUR AVATAR ON THOSE PLATFORMS? - YES
CHINA
GAMING COMMERCE AUSTRALIA

INDIA
82%
82%
82%
INDONESIA 42%
JAPAN
42%
THAILAND 42%
81%
81%
81%
65%
As virtual worlds become richer platforms, except in China and 65%

65%
and more complex, and as people Japan, where women are more likely. 23%
spend more time in them, they’re 23%

23%
66%
also spending more money on virtual
66%
products and experiences. 0 10 20 30 40 50 60 70 80 90 66%
0 10 YOU20
WOULD 30 40 IN BUYING
BE INTERESTED 50 60 70
THE SAME 80 90 FOR
PRODUCTS
0 10 20 30 40 50 60 70 80 90
YOURSELF AND FOR YOUR AVATAR ON THOSE PLATFORMS? - YES -
82% of Chinese respondents GENDER BREAKDOWN 82%
say they are interested in buying MALE
83%
82%
82%
matching products for themselves FEMALE
CHINA
83%
83%
49%
and their avatars on gaming 39%
49%
49%
platforms. 39%
39%
AUSTRALIA 82%
81%
82%
India is not far behind, with 81% of 82%
81%
INDIA 81%
consumers saying they would do 70%
60%
this, as would about two thirds of 70%
70%
60%
INDONESIA 60%
Thai and Indonesian respondents. 17%
29%
17%
17%
29%
Male gamers are more likely to say JAPAN 29%
70%
63%
they will buy products on gaming 70%
0 10 20 30 40 50 60 70 80 90 70%
63%
THAILAND 63%
0 10 20 30 40 50 60 70 80 90
0 10 20 30 40 50 60 70 80 90
WOULD YOU BE INTERESTED IN BUYING THE SAME PRODUCTS FOR

YOURSELF AND FOR YOUR AVATAR ON THOSE PLATFORMS? - YES -
AGE BREAKDOWN
16-24 85%
85%
25-34 88%
88%
35-44 77%
77%
85%
45-54 85%
57%
55+ CHINA 57%
54%
54%
45%
45%
36%
36%
While younger generations are 33%
33%
11%
11%
most likely to want to buy products AUSTRALIA
for themselves and their avatars, 80%

80%
about half of over-55s in China, India 85%
85%
83%
and Indonesia say they would be 83%
67%
67%
interested too. INDIA
59%
59%
63%
This is another sign the senior 63%
71%
71%
market is migrating online to play 65%
65%
50%
and spend. 50%
43%
INDONESIA 43%
48%
48%
28%
28%
23%
23%
15%
15%
7%
JAPAN 7%
78%
78%
75%
75%
61%
61%
46%
46%
36%
THAILAND 36%
0 10 20 30 40 50 60 70 80 90
0 10 20 30 40 50 60 70 80 90
TAKEAWAYS
TAKE AWAYS TRA NSC E NDE NT RETAIL: APAC 80
TRANSCENDENT RETAIL TRENDS WHAT THIS MEANS

As digital habits and platforms proliferate, new retail touchpoints are The future of connected retail goes far beyond digital storefronts, bridging
emerging. gaming, entertainment and social elements.
Livestream explodes as the world follows China before the camera. Think beyond product function to product storytelling.
Growing fraud and mistrust are eroding the current influencer landscape. In its place, a grassroots influence movement is taking shape—leading to a
more authentic, relatable and ultimately trustworthy class of influencers.
Gen Z’s cultural clout and growing economic influence has helped to redirect In the world of social retail, digital content takes on a life of its own,
the world’s focus to China—while shining a spotlight on the power of user- highlighting the importance of interactive formats.
generated content and homegrown marketing.
Seniors—digitally literate and with higher disposable incomes—are migrating What’s your senior strategy? Seniors are an untapped market for brands that
online and expanding their influence. can sidestep stereotypes and speak well to older consumers.
Luxury and digital increasingly go hand in hand, as luxury brands embrace and What are the digital markers of value? How can brands communicate quality
elevate digital activations. virtually?
The luxury category is going beyond physical products, opening new What does high-end craftsmanship look like in the digital realm? How can
opportunities for digital artisanship. luxury brands translate heritage and artisanal goods from physical to virtual?
Purchasing gets personal. A choice in brand is becoming an expression of Help consumers express themselves through the products by taking pride in
individuality, values and patriotism. what makes them—and you—unique.
Chinese consumers are prioritizing sustainability and inclusive marketing at Sustainable practices and inclusive messaging are more than just trust-
the shelf. building exercises. Brands will need to show how they are creating meaningful
change in order to win Chinese consumers’ trust—and wallets.
ACK NOW LED GE M E N TS TRA NSC E NDE NT RETAIL: APAC 81
About Wunderman Thompson Intelligence Contact:

Wunderman Thompson Intelligence is Wunderman Thompson’s futurism, Chen May Yee
research and innovation unit. It charts emerging and future global trends, APAC Director of Wunderman
consumer change, and innovation patterns—translating these into insight Thompson Intelligence
for brands. It offers a suite of consultancy services, including bespoke mayyee.chen@
research, presentations, cobranded reports and workshops. It is also active wundermanthompson.com
in innovation, partnering with brands to activate future trends within their
framework and execute new products and concepts. It is led by Emma Chiu Sky Canaves
and Marie Stafford, Global Directors of Wunderman Thompson Intelligence. Content Director
Jing Daily
About Jing Daily [email protected]
Jing Daily is the leading digital publication on luxury consumer trends in
China. It is the flagship publication of Jing Group, which also includes China Editor
Film Insider, MOVE THE MIND, Jing Travel and Jing Culture & Commerce. Our Chen May Yee
readers are industry leaders seeking to understand China’s complex and
rapidly evolving luxury industry. The Jing Group also encompasses the Jing Writer
Academy, which brings together the expertise of a team with decades of Sky Canaves
experience in China’s luxury, culture, technology, branded content and travel
industries. Researchers
Zihao Liu
We would like to thank the experts, analysts and practitioners who gave Safa Arshadullah
their time and insights to enrich this report. They are: James Bay, Greater
China managing partner for commerce, Wunderman Thompson; Zhao Hui, Designer:
spokesperson, Lazada Cross-border Eco-innovation Service Center; Tamano Jay Yeo
Ibn Khalid, cross-border livestreamer; Vey-Sern Ling, senior analyst, Asia
internet, Bloomberg Intelligence; Sherwin Loh, vice president public relations, Copy editors:
Lazada; Arnold Ma, founder and CEO, Qumin; Ying Mao, senior manager, public Hester Lacey, Katie Myers and
relations, Lazada; Bryce Whitwam, adjunct instructor of marketing, New York Harriet O’Brien
University School of Professional Studies.

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LESSONS FROM CHINA’S TREND-SETTING COMMERCE

MARKET FOR THE REST OF THE WORLD

A REPORT BY WUNDERMAN THOMPSON INTELLIGENCE IN COLLABORATION WITH JING DAILY

003 INTRODUCTION 047 The New Luxury

in video content marketing and

These trends are now spreading

In Tokyo’s Harajuku district,

Shiseido Beauty Square, Harajuku

Shiseido Beauty Square, Harajuku

Lazada Cross-Border Eco-Innovation Service Center, Nanning

IN THE PAST 20 YEARS, CHINA

Burberry Open Spaces store, Shenzhen

In July 2020, British luxury fashion bring a little of Paris to consumers

Unlike most landlords, TX Huaihai “The offline world needs to be a

2. The rise and rise of livestreaming

The rest of the world is jumping on

The Chinese model of ecommerce

Livestreaming merges the

Even before the coronavirus

However, 2020 will go down as the

consumer FOMO (fear of missing Looking ahead, Chinese livestreaming

Livestream on 85th anniversary of Lancôme, owned by

3. Brands get in the game of the main drivers of Chinese

also partnered with Honor of Kings In 2020, a total of 37 Chinese

Chinese games are increasingly

Top: MAC Cosmetics x Honor of Kings

4. Branded short films

Brands are forging deeper connections

Globally, the decline of television

Chinese brands are now displaying

BMW Lunar New Year film 2020, directed by Ning Hao

5. Boomer digital migration Chinese citizens aged 60 and over

such as shopping. At the end of 2020, Alibaba’s Taobao recently launched a

SHIFTING 6. Key Opinion Leaders (KOLs)

category among increasingly health- consumer goods and art. He also

of sales, which can be a prompt brands to ditch KOLs for

prohibitive cost for brands. Chinese and international brands

A lot of these influencers vie to have the likes of Viya and Li

create a short-term sales comes with costs: high appearance

boost, but nothing long-term

As a result, brands have moved

The lifestyle platform Xiaohongshu

Virtual idol Luo Tianyi makes an appearance on behalf of

9. Five influencers to watch The boss influencer

As the influencer market matures, it’s The pandemic ushered in a trend

For example, Lei Jun, founder

livestreaming debut on short-video announced an ambitious goal to

The inclusive influencer

Yang Tianzhen stands out from most

Having started as an agent for

Yang’s debut livestream exceeded

fat. Find your own source of

Yang has also generated controversy

CHINESE OVER 60 NOW

The Fashion Grandmas, a collective

men, women, youngsters, parents, but

The Fashion Grandmas are far

The actor influencer wielding anime-style figure—a

While most KOLs host their livestreams