3 key strategies from China’s social commerce landscape

Social commerce is set to grow at an exponential rate over the next two years. Even while the growth of the social commerce sector has so far been slower elsewhere than in China, it is anticipated that from now until 2025, it will expand tremendously in North America, Europe, and Latin America.

This year, it’s anticipated that social commerce will generate global sales of more than $1 trillion. And when it comes to social commerce, China is the market that stands out. Social commerce has expanded rapidly in the country, with a 40.25% increase in market size between 2021 and 2023. Between 2021 and 2025, the size of China’s market is anticipated to increase at a rate of 17% per year. 

It’s critical for brands and businesses to keep ahead of these changes given the growth of social commerce. Alarice and ChatLabs have collaborated together to create the China Social Commerce Report 2023, which provides information on the technologies and strategies used in the sector. Here are some of the key strategies highlighted in the report.

1. Co-creating with consumers

Brands can engage users on social media platforms by allowing them to interact or co-create engaging content as part of an effective strategy for increasing product promotion and awareness. This technique not only creates a user community but also increases brand visibility and engagement.

Take, for example, the milk brand Yili. Yili asked consumers to participate in a packaging design contest aimed at football enthusiasts to increase engagement and sales during the 2022 World Cup. Customers who spent a particular amount on items were entered into a lucky draw as part of the promotion. 

As a result, visibility and sales increased significantly. The campaign received over 27.24 billion Weibo impressions and resulted in a 12.1% increase in sales, illustrating the potential of user participation and co-creation in brand promotion.

In light of this, fast-moving consumer goods brands can consider employing similar techniques by inviting consumers to co-create content during popular events, festivals, or marketing campaigns. This could involve a wide range of activities that tap into the creative potential of the consumer base.

2. Driving repurchases through professional services

In the competitive landscape of the consumer goods industry, brands can distinguish themselves and foster customer loyalty by offering specialized services aimed at driving secondary purchases. This strategy not only ensures customer satisfaction with their initial purchase but also encourages them to become repeat customers.

A case in point is Biostime, a brand that successfully implemented this strategy. Biostime offers a one-on-one inquiry service, providing consumers with personalized product recommendations based on their unique needs. Beyond product recommendations, the brand also prioritizes its consumers’ emotional support and mental health. 

Their unique offering, the “Mom Class,” is designed to provide emotional support to new mothers, further solidifying their bond with the brand. Furthermore, Biostime launched a campaign on Douyin focusing on ingredient safety, which attracted around 800,000 participants. These combined efforts led to impressive results, with monthly sales exceeding 4 billion RMB.

Given the success of Biostime, other brands can look at implementing a similar strategy by offering professional services post-purchase. These services can range from personalized product recommendations to educational classes and support groups. Brands can also launch campaigns to emphasize the unique selling points of their products, such as ingredient safety or ethical sourcing.

3. Collaboration with other brands

Brands may reach a bigger target audience in the ever-changing consumer products landscape by forming strategic partnerships with other popular brands and products. Such collaborations not only increase brand visibility but also give consumers a distinct value proposition.

The successful collaboration between Xiaomi and the video game King’s Glory exemplifies this method. Xiaomi took advantage of cross-promotion by providing exclusive access to a new test map in King’s Glory, which was confined to smartphones purchased from Xiaomi outlets. 

This endeavor piqued gamers’ curiosity, as did Xiaomi’s powerful hardware and processors. As a consequence, store traffic increased by 14%, and Xiaomi’s gaming community and App Store gained 2 million new followers.

Given the success of the Xiaomi-King’s Glory collaboration, marketers should think about forming similar collaborations with stores to expand their reach and engagement. They can provide exclusive material or experiences available only through their products or stores. 

Conclusion

It’s essential to remain ahead of new trends as we navigate the always-changing social commerce landscape and consider their effects on your company. In the present economy, being aware of these trends and taking appropriate action might mean the difference between keeping ahead or falling behind.

It’s crucial that businesses consider how to create shopping experiences that allow users to effortlessly switch between exploring, sharing, being entertained, researching, playing a game, recommending, and purchasing.  

To attract their audience, brands must provide enjoyable, interactive experiences that cover a range of activities, including purchasing. Developing original retail tactics and designing personalized, one-of-a-kind client journeys will be crucial. 

This article was provided to TechNode by Ashley Dudarenok, the founder of China-focused digital marketing agency Alarice and China digital consultancy ChoZan 超赞. For further insights, download a free copy of the China Social Commerce Report 2023 here.