Alibaba high-end membership APASS, what the luxury brand needs to know
September 9th was Alibaba’s APASS Day
Red carpet, hot girls and boys dressing up, while this is not a movie award ceremony, it is the first APASS off-line anniversary event held by Alibaba recently in Shanghai. They also invited Martha Lahti, SKII, Estee Lauder and many other international brands to join.
At this event, Alibaba Chief Marketing Officer Dong Benhong first revealed the level of APASS spending: “Based on the current membership size, these APASS members spend at least 30 billion RMB of their net purchases each year.”
Who is this group of people?
According to Ali group customer experience drive and Innovation Center General Manager Wang Hai, he said “APASS members are mainly trendy mothers, business elites, online shoppers and business generation”.
Here we have some examples. Zhang Yixin is a freshman in college. She spent 1 million last year on beauty products, jewelry and other luxury goods to simply just dress herself up.
Wang Ruoxi has 12 years of experience on Taobao. She would spend 800 thousand to buy luxurious watches and many other pricy goods including exorbitant Martha Lahti. Last year, she bought 16 brand-name handbags on Taobao. Right now, she makes her own skin care brand on Taobao’s line and transitions into a seller from a buyer.
In addition to our “super-chop type” buyers, Zhu Rongfei, one of the APASS members, is a “collection type” buyer. She bought more than 300 sets of Lego Limited Edition toys online as she is a maniac Lego fan.
What is APASS?
This lavish style of spending has made them gain the Alibaba Passport, also called APASS. It is an exclusive rewards program and a combination of Facebook, Amazon Prime and the American Express Black Card. Its 100,000 members get unusual perks in daily life such as abnormally good deals on trips, free return of products purchased online and considerate personal service. Meanwhile, they are also encouraged to join online communities of shopaholics who blog and talk up Alibaba.
When Zhang Yixin mentioned the APASS membership service, she spoke with excitement: “What moved me most was that once, just right before an important show I had the next day, I lost my dresses that I was going to put on. The exclusive customer manager managed to find a seller in the city at night and got me the dress in time. It was amazing.”
What luxury brands should know about APASS?
If luxury marketers doing business in China want to understand Chinese consumers better, they need to pay for professional market research agencies to do it. The APASS program offers a shortcut for brands to achieve this goal. It not only allows them to gain insight into their potential consumers, but it also shows them who they should target directly.
Even though it remains ambiguous whether APASS truly has what it claims to offer to luxury brands in China, brands such as Louis Vuitton, Ocean glasses, Antonio Banderas Guerlain, and Maserati are already among those who are beginning to test out what the APASS can reach.
If you need help to sell in China, contact us!
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5 Bugs To Avoid When Doing E-Commerce In China
Have you ever tried to build a new overseas brand and fail in your attempt? In any approach to China, foreign brands often make some common mistakes when trying to sell their products in China mainland. Although such misconceptions are not exclusive to online environment, we will focus on those that particularly affect your approach to e-commerce in China. China is already the world’s first e-commerce market.
Are you going to miss its enormous potential?
First bug: China is mobile, and you better record it
It is not the first time we tell you this, and for sure it won´t be the last. As we mention before in our article “How to Take Advantage of the Latest Ecommerce Revolution?”, Ecommerce has been a great revolution for both companies and customers.
Nowadays, Chinese prefer to use their mobile devices rather than their laptops and according to the new trend, companies have already starting to adapt themselves to portable devices. Moreover, those companies using U-commerce are focused on improving the customer experience through customizing and navigation created in cooperation with the User.
Second bug: E-commerce may be an asset in your country, but in China is irreplaceable
We cannot fail to mention Frank Lavin, CEO of Export Now, when he says,
“In China, Ecommerce is the cake.”
This may mean that you will need to adapt your business to the new environment. Do not expect it to be China who suits you, this does not work this way.
Remember that whoever hits first, hits twice. Embrace e-commerce as the enabler of your business it is, and take advantage of the immense benefits that electronic commerce can bring to your company to start selling around the World!
Third bug: Social Media is there to stay. Register your account and start moving!
Surely you’ve never heard the words Baidu, WeChat and Weibo… and let us tell you that you have a huge problem in China.
Not only around the 93% of the online searches in China are done in their own search engines –Have you ever heard Google does not work in China?– but also about a 68% of the customers take a look on the official Social Media account before buying.
Do not miss the opportunity to have a voice in that huge chicken coop is the network, start developing a tailored communication strategy for your brand and gain your piece of the cake!
Fourth bug: Domestic and lazy thinkers, or how the triumph from a day doesn’t make it daily
Do you think you will keep doing in China pretty much the same things you were doing before and as a result you will achieve success?
A basic rule you should never forget again is, no matter the experience and the many different markets in which you have entered before, is that new horizons always implies a new starting on your understanding of the target, so we definitely encourage you to start a market analysis.
Will your brand be competitive in China?
Do you offer something different regarding your competitors?
Is there a suitable market niche in the country ?
These and a thousand more questions require a prior discussion, keeping in mind that China should not be underestimated: the country enjoys some peculiarities you definitely must know before starting your landing.
We strongly recommend you seek assistance from professionals focused on the Chinese market, in order to enhance your chances of success in the country.
Fifth buf: Do not try to do everything by yourself, ask for advice
We are not tired of saying it, and will do so again: China is not a flat road. Do not try to embark on this mission unaccompanied, but pick very well with whom.
Look for complementary partners interested in joining forces, go to Government agencies dedicated to external actions and internationalization and definitely search for specialized agencies in the country to start outsourcing some tasks.
Already in search of a consulting expert in digital marketing and e-commerce? You have come to the right place.
How to Promote your Business in China
How does Chinese Market work? How can companies promote themselves without Facebook and Google? How do people survive under huge competition there?
China is -still- a mystery for foreigners. The country means a huge cake, but before entering the market you will need to answer to this and other questions. To make it easier to you, in 2 Open we have taken a brief look of the Chinese market and done a list of the most basic tips you should consider before landing in China.
Gone wrong? It can go much worse
When many companies started their business in China for the first time, the things they used quite a lot in local made no sense in China.
Ebay is one of the biggest e-commerce platforms around the world and a perfect example to explain the experiences many foreign companies face in China. Due to its leadership, the company assumed that its landing in China would be no much different to that experienced in other countries, so in the beginning they refused to establish a partnership with JD.com. The company soon realized there were no more choice but to cooperate with them.
What are the most common problems that foreign companies face in Chinese territory?
Foreign enterprises in China often fall into the same shortcomings we analyze below. Let´s see:
First, Always try to show their high-end enterprise images
Foreign enterprises always show their best face: high-quality services, responsible attitude, respect to the customers… and so on. But in China, price is the key and can always be the KPI which attract the customers’ sight immediately.
Second, Focus on high-end target audiences but ignore the rapid growth of China
When companies like Blueberry entered China, they set the target group to those corporate users. As the earliest and past No.1 smart phone, Blueberry had already been famous in China. But within 7 years (2006-2013), they retreated from China and closed their Chinese official website.
When Huawei set off their business, what they did was to set the target audiences as all people who want smart phone. Since the average income of Chinese people is increasing, so that more and more can afford a smart-phone. Huawei was right about its strategy.
Third, Copy the promotion strategy directly to China
Many foreign companies would prefer to make a wonderful advertisement, an amazing poster and advertise in the subway stations, supermarkets… and everywhere. But they always find out that the ROI is quite low, since they might only get 1 customer for a 100 RMB budget. Does it outweigh? We don´t think so.
In China, since the civil quality is still on a shallow level, what the customers care most is whether they are interested in, but not what is a good design. That is why when Taobao.com stepped out their first step, they even promoted on some illegal websites which had huge traffics every day.
Fourth, Think too much about customers but ignore what the customers are thinking about ICQ. The instant messaging software also failed in China!
The U.S. companies are always stricts on protecting the users’ privacy. With such a policy, users can’t find the chat record if they log in on another PC, since the software will not memorize or save these records in order to protect the privacy to the most degree.
Its counterpart in China, Ma Huateng, found out this fault which doesn’t fit the Chinese users’ requirement. In response he created QQ, which is based on the technology of ICQ and make this software become the most-used IMS in China.
Fifth, Rely too much on the Western promotion ways, companies do not want to do things directly
E-mail, Mail and SMS promotion require low budget and have huge audience quantity. Well, they do not make sense in China. For many Chinese people, it is absolutely offensive if they receive advertisement in these channels since they have watched and received too many advertisements already. Moreover, for most Chinese these all are considered private.
They don’t like to be bothered by anything they don’t even know. In China, what people prefer is face to face, no matter if it is for sales promotion or negotiation. The Chinese only trust the people in real life. That’s why when Zhou Hongyi took the responsibility of Yahoo China, he fired all employees who only did E-mail promotion but never visited the clients.
What should you do, then?
First, Pay attention to Chinese culture
Chinese culture is totally different comparing with the Western cultures. Different political systems, different History, different religious beliefs. Thus, the culture strike shows extremely seriously in China.
Your company should do its best to avoid the culture strike and assume their role. We suggest you yo have a look to Lancôme experience in China.
Second, Explore the Chinese consumer behaviour and preferences
Knowing the Chinese consumer behavior and their preferences make the difference. What are the KPIs to attract them? What they care the most? What they pay less attention to? What channels they prefer to get promotion information?
All these questions need to be taken into account when setting up the marketing strategy in China.
Third, Know the correct channels
Due to the firewall in China, many foreign websites (Google, YouTube, Facebook, Twitter, etc.) are not allowed in the China mainland. Thus, use Chinese sources.
Fourth, Speak that language
Chinese people still prefer to speak Chinese. So, when doing business with them, try Mandarin: it is always more than welcome.
There are still lots of thing we need to explore and learn about China. In search of an Ecommerce and Digital Marketing Agency?
This article has been edited by Paula Vicuña, from 2 Open.
How to Acquire Chinese Tourists through Digital Marketing
It is almost August and tourists are everywhere. From 2 OPEN we are pleased to give you some basic steps to acquire Chinese Tourists through Digital Marketing.
Since 2013, the number of Chinese outbound travel population and tourism consumption both already ranked the world’s first.
In the next few years, Chinese outbound tourism consumption market will continue to maintain high growth speed: 174 million Chinese people will choose to travel abroad, and the amount of consumption will be around 264 billion US dollars in the year 2019 by estimation.
Chinese tourists has become the “cash cow” of global travel industry
This prosperity is due to the increase of urban population and disposable income, the rise of the middle class, RMB appreciation, the gradually liberal visa policy and the increase of international flight routes have given rise to the empowerment of as a yet undeveloped sector.
What kind of travel products do Chinese tourist usually choose when travelling?
When travelling, Chinese tourists mainly choose to travel with tour guide, both group package and/or flight + hotel. Even if travelling without guidance is still scarcely used, it is a fast leading trend and a great opportunity of future.
Which Channels do Chinese tourism use to purchase travel products?
Even if traditional travel agencies are still the most popular, every day more Chinese opt to book though Online travel agencies, such as Ctrip and Qunar. It is highly likely that its importance grow each year.
How Chinese travelers spread their feeling about their country-destination?
The consumption of Social Networks in China is massive. Either through posts or instant messaging, the power of “Word of Mouth” is overwhelming.
Wechat and Weibo play a very important role in choosing destinations for Chinese people.
From 2 Open, we suggest you paying attention to online platforms in any plan to approach the Chinese market.
Which channels do Chinese people use to search touristic-information?
Either through an Agency´s Website or through Social Media, Chinese travelers love using new technologies to discover places, compare tariffs and share their experiences abroad.
Once again, the power of the main Social Media Platforms in China –Wechat and Weibo– is increasing each year.
What do Chinese travelers suggest for information channel?
The most expected information search channel for Chinese travelers is to set up Chinese official website, followed by WeChat and Weibo Chinese accounts set-up.
So, What can you do to attract more potential Chinese tourist to your destination?
From 2 OPEN we suggest you some ideas before starting your approach to China:
- Build a Website:
To set up a Chinese Website, this must be hosted in China (-cn domain). It would be necessary to make it consistent with Chinese search engine´s standards and be entirely written in Mandarin.
From 2 OPEN we strongly suggest you to take advantage of new technologies –Big Data- to improve the user experience and target the right audience.
- Search and Display Marketing:
Baidu, the biggest Chinese search engine, is essential on any approach to Chinese digital market. Your site should be well-ranged on Baidu´s search engine to let Chinese tourist find you.
In 2 OPEN we have the expertise to deal with SEO or SEM campaigns, in order to help you to gain visibility and target potential customers.
- Social Media:
Social networks are the most used channels in China. Try to attract users to your official accounts –WeChat and Weibo– by posting travel news and proposals to people. Start your Social Media plan with our help!
- Key Opinion Leader:
To build a proper networking with Key Opinion Leaders on Social Networks can make the difference in China, and they are a very effective way to promote products and services.
- Cooperate with a third-party agency:
Online Travel Agencies -like Ctrip– provide a package of services include tickets, hotel, tourism products and car rental etc. Cooperate with them will bring you huge traffic and a great chance to sell. In addition, Online Travel Agencies let customers interact each other about trips, top destinations and advices.
From 2 Open, we encourage you to take an advantage of their social marketing impact by improving your content marketing.
- O2O:
In last year, China tourism O2O industry achieved great improvement. The relationship between resources and platforms become closer under the impetus of capital. Wheather through Online platform + offline resource or Online channel + offline channel, both can make the difference.
- Offline Event and Public Relations:
Traditional offline advertisement promotion can be useful in China, but very expensive. Combine Online and Offline Marketing can be the top-solution for your company.
We hope this information has been valuable and helpful to you, and we encourage you to start your approach to the huge Chinese tourism market. With our help, your company could take the great advantage online marketing offers!
Have a look to our services!
This article was edited by Paula Vicuña, from 2 OPEN.
Tencent and JD Launch Targeted Brand Advertising on WeChat
From the association of Tencent –owner of the biggest social platforms in China- and JD.com –the leading online direct sales company in the country-, has emerged a new conception of Marketing and Brand Advertising.
In 2016 in Beijing, both released a plan based on Ecommerce marketing service called “J&T Plan”.
The new policy was aimed to provide a tool to accurate a better portrait of the potential user, and improve the interaction with the consumer.
As a result, users data has become extremely valuable for any company:
Knowledge is power, more than ever.
What are their main Goals?
The aspiration of Tencent and JD.com partnership has been to provide a pleasant and high quality service to their users.
To reach its purpose, they have focused on three main objectives to strength its business on mobile and Internet, such as:
- Mobile access points
- Traffic support
- Ecommerce activities
Their desire to turn the user into the protagonist of the new Marketing, has launched a new approach based on three main ideas:
- Multi-dimensional user insight
- Effectiveness analysis
- Precision target audience
What do they want in Return?
Not only a commitment to the future and an advantage over its competitors, their relationship also give them some specific advantages:
JD.com obtains a stake in Yixun, PaiPai C2C marketplace businesses, logistics personnel and assets and QQ Wanggou B2C.
On the other hand, Tencent will offer level one access points in Weixin and Mobile QQ and support from other key platforms to JD.com.
In order to provide a better online shopping experience, they will also work together on providing solutions to online payment services and an overall digital marketing solutions.
If you are thinking on improving your company services, before starting a Business and Marketing Plan you should take in consideration some basic recomendations:
Build a well-aimed portrait of the users, improve brand experience with the client, and enhance technological tools to achieve it, have become the three key factors to consider on any approach to potential customers, and the best guarantee for the future of your company.
From 2 OPEN we have conformed a team capable of responding to new challenges and specialized on Business Intelligence. We can help you to deal with the new Marketing and Ecommerce trends.
Come with us. Together we will reach your company goals.
This article was edited by Paula Vicuña from 2 OPEN.
Wechat Marketing — Service account or subscription account?
A Wechat subscription account might fit you more if you want to update your audience information on a daily basis. While in terms of e-commerce functions, a wechat service account offers a more comprehensive scope than a subscription account does.
You have all you need to know about your Chinese customers’ behavior. Do you have all it takes to make the most out of it?
In our China digital monitoring and advisory service, we track and analyze the accessible data from the back offices of multiple digital platforms through which our client interacts with its customers: Weibo, WeChat, Tmall flagship store, and Official Website. Moreover, with the benchmarking analysis of its main competitors, we further identified tactics to fine tune our client’s strategy.
