China Marketing Insights Monthly Newsletter [April 2023]
Hello There,
Welcome to our April newsletter.
In this month’s newsletter, we bring you a diverse range of topics, beginning with a deep dive into the reimagined world of homestays. As travelers increasingly seek unique and authentic experiences, the homestay industry has adapted, offering exciting new developments to cater to these desires.
Next, we explore the booming Chinese outbound tourism market in the post-pandemic world. Uncover the latest updates on new destinations, visa services, and the impact on travel platforms as this market continues to grow exponentially.
We also delve into the three main trends shaping the “Her” economy, a powerful force driving change across the digital landscape. To stay ahead in digital marketing, you won’t want to miss this essential analysis.
Private traffic has emerged as a crucial tool for brands in the beauty and personal care industry. Discover the most recent trends and insights in this area, along with the evolving role of private traffic service providers in helping brands connect directly with their customers.
Finally, we spotlight Fliggy, China’s leading online travel platform, as our app of the month. Learn about the advertising opportunities and marketing strategies available on Fliggy, the ideal starting point for businesses looking to tap into the burgeoning Chinese travel market.
That’s it for this month’s newsletter. We hope you found these articles insightful and informative.
Until next time!
Sincerely,
Mia C. Chen
CEO & Co-Founder of OctoPlus Media
China Hospitality Industry: A Decade of Evolution and Forecasting the Next 3 Years for China’s Homestay
As we navigate through the post-epidemic era, the homestay industry is experiencing changes and trends that are worth exploring. Looking back at the past 10 years, we’ve seen significant growth in the industry, from humble beginnings to high-end quality accommodations. Embracing the Post-Pandemic Era of Homestays with New Trends and Opportunities
The homestay industry has come a long way since its humble beginnings in 2011. Over the past decade, it has evolved from a simple, personal experience to an industry leader with a focus on quality, service, and architectural design. As the world emerges from the pandemic, it is time to examine the trends and changes that will shape the homestay industry over the next three years. Drawing on industry data and observations, this article discusses how the homestay market is adapting to new user demands, emerging product offerings, and shifting demographics.
The Emergence of Holiday Homestays
In the post-pandemic era, holiday homestays are becoming the new trend as they cater to the evolving needs of travellers. These accommodations combine architectural design, cultural heritage, and user experience to create a memorable stay. With more holiday homestays under construction and an increased occupancy rate, this new product form is set to dominate the market in the coming years.
The New Generation of Homestay Consumers
A new generation of homestay consumers, comprised of individuals born in the 80s, 90s, and 00s, is emerging as the driving force behind the industry’s growth. These young travellers prioritize travel, self-care, and unique homestay experiences while possessing a strong understanding of homestay products. In the next three years, these new consumers will reshape the industry’s customer base.
New Demands Driving Homestay Innovation
The pandemic has not only stalled the industry’s growth but also spurred new consumer demands. Vacation-focused travel and localized experiences will be the primary drivers of demand in the coming years. The industry is responding with new offerings that cater to these preferences by focusing on architecture, functionality, and services that prioritize aesthetics, relaxation, and personalized experiences.
As the homestay industry enters its second decade, it is poised for significant growth and transformation. With the rise of holiday homestays, a new generation of consumers, and evolving demands, the industry is set to undergo a revolution in product offerings, user experiences, and market dynamics. As industry professionals navigate these changes, it is crucial to embrace innovation and adapt to the shifting landscape to ensure a successful future in the world of homestays.
China Outbound Travel Marketing Insights: New Destinations and Visa Updates for Chinese Tourists during “May 1st”
The pilot resumption of outbound group tours has brought good news to the travel market. The Ministry of Culture and Tourism has announced the second batch of travel agencies allowed to operate outbound group tours and “flight + hotel” packages. Now, with over 40 new destinations to choose from, Chinese citizens have a total of 60 countries available for their holiday plans.
New countries on the list:
The second batch of countries includes Nepal, Brunei, Vietnam, Mongolia, Iran, Jordan, Tanzania, Namibia, Mauritius, Zimbabwe, Uganda, Zambia, Senegal, Kazakhstan, Uzbekistan, Georgia, Azerbaijan, Armenia, Serbia, Croatia, France, Greece, Spain, Iceland, Albania, Italy, Denmark, Portugal, Slovenia, Vanuatu, Tonga, Samoa, Brazil, Chile, Uruguay, Panama, Dominica, El Salvador, Dominica, and Bahamas. This expansion has led to a sharp increase in tourist visa inquiries for related countries, with a more than four-fold increase in some cases.
Most popular destinations
Chinese tourists show the most interest in Vietnam, Italy, Serbia, France, and Spain. European countries have seen a rapid rise in attention. Travel platforms are expected to launch more outbound travel products in response to this increased interest.
The “May 1st” holiday is expected to see explosive growth in outbound tourism, as airlines increase the number of flights to popular destinations. The outbound tourism market is predicted to experience a significant upswing during the May holiday and summer vacation.
Visa requirements and processing times vary among the 60 pilot countries. While some countries offer visa facilitation for Chinese tourists, others support visas on arrival or e-visas. Industry experts recommend applying for a visa 15 days to a month in advance for Asian countries and 1-2 months in advance for European and American countries.
According to Ctrip data, since the announcement of the second batch of countries opening up, there has been a surge in search volume by more than 300% month-on-month in some countries. Page clicks related to outbound travel increased by 77% instantly, and inquiries about tourist visas to these countries have increased by over 400%.
Ease of Nucleic Acid Testing
Many countries have cancelled the requirement for nucleic acid testing for Chinese passengers entering their territories. Instead, antigen self-testing can be used when returning from multiple countries, making it more cost-effective and convenient for travellers.
The expansion of outbound travel destinations for Chinese citizens offers more opportunities for travellers to explore the world. The anticipated “May 1st” boom in outbound tourism, coupled with visa conveniences and changes to nucleic acid testing requirements, will contribute to a thriving travel industry.
This is the perfect opportunity to reach out to Chinese outbound travellers, contact us to find out more.
The Rise of China’s Female Economy: Empowering Female Active Users Online
As of January 2023, the number of active female mobile internet users has soared to nearly 600 million, showcasing their impressive consumption power and demand. These users span across various age groups, with 24.1% under 24 years old and 31.1% over 51 years old. When it comes to high-priced products (more than 2,000 RMB), female users display a higher consumption orientation and spending power compared to their male counterparts.
With an average monthly browsing time of 163.6 hours in January 2023, female users show a year-on-year increase of 2.0%. This growth is particularly remarkable given the slow expansion of the overall market. Female users exhibit high engagement with short videos, social networking, and e-commerce shopping platforms, contributing to a year-on-year increase of over 50 million users in comprehensive e-commerce apps.
Three main trends highlight the quantitative changes in value for female users:
- Expanding consumption boundaries: Traditionally, certain industries have been predominantly male-dominated, such as automobiles, alcohol, sports, and e-sports. However, female users gradually break these barriers and become increasingly active in these sectors. This change signifies a shift in female consumption patterns and interests, ultimately leading to a more diverse and inclusive online economy. Women are active in the “appearance economy” and extend their presence to other areas, such as maternal and child products, household products, and more. This expansion of consumption boundaries allows businesses to tap into new markets and cater to a broader audience, fostering growth and innovation across various industries.
- The rise of female content creators: Content platforms have evolved to become a place for content consumption and content production. With the growing number of high-quality female content creators, these platforms are witnessing a surge in female-centric content, such as “Her” themed movies, TV series, and variety shows. These content pieces highlight the value and strength of women, attracting more female users and increasing their engagement on content platforms. As female users continue to engage with and produce high-quality content, this trend is expected to further unleash their potential and amplify their voices in the digital space.
Balanced development of female users’ lifestyle consumption: Women’s active participation in work and entertainment has led to a vital force for the recovery and growth of the tourism and pet market. As female users seek a balance between their professional and personal lives, they are becoming key drivers in the resurgence of the travel and tourism industry. Their pursuit of better experiences and willingness to spend on leisure activities has contributed to the rapid development of these markets. Additionally, the rise of female pet owners has spurred the growth of the pet economy, with brands leveraging cute pet elements to attract users and encourage purchases through limited co-branded products.
The growing presence and influence of female users online indicate a strong “Her” economy with high-value potential. Female users are the backbone of consumption upgrades, with many brands focusing on “Her” marketing. As women continue to play an active role in various fields such as shopping, work, and entertainment, the “Her” economy will undoubtedly release more value in the future, shaping the online landscape for years to come.
Contact us to find out more!
Private Traffic in China: The Development of Private Traffic for China Marketing in Beauty and Personal Care Brands
Private traffic has become a buzzword in the retail industry, particularly in the beauty sector, as brands have embraced it since the onset of the pandemic in 2020. Analysys, a market research firm, has examined the private traffic business development environment and the strategies employed by the beauty and personal care brands in China, exploring the future direction of private traffic service providers. In this article, we delve into the rise of private traffic in the beauty industry, the role of service providers, and the potential applications of AI, such as ChatGPT, in private traffic management.
What is private traffic management in China?
Private traffic management in China refers to a marketing strategy where brands create and maintain direct communication channels with their customers, fostering loyalty and engagement through personalized content and offers. This approach is particularly popular in the Chinese market due to the dominance of platforms like WeChat, which enables brands to establish their own private traffic channels through mini-programs, WeChat groups, and official accounts.
In private traffic management, brands focus on building long-term relationships with customers, offering exclusive content, promotions, and tailored experiences. It’s seen as an alternative to relying on traditional advertising and public traffic channels, where competition for user attention is fierce, and advertising costs are high.
Private traffic management helps brands to:
- Gain better control over customer data and insights.
- Strengthen customer relationships by providing personalized content and offers.
- Increase customer lifetime value through targeted promotions and improved loyalty.
- Reduce dependency on third-party platforms and their associated costs.
The growth of China’s economy and its consumers’ purchasing power has led to a rapid increase in the domestic cosmetics market, with local brands challenging the long-standing dominance of international brands. As online channels become the largest sales channel for beauty and personal care products, private traffic operations have become an essential component of brands’ multi-channel integration strategies.
Private Traffic Development of China Beauty and Personal Care Brands
New domestic beauty brands were the first to adopt private traffic, followed closely by international brands. Both groups have contributed to the rapid penetration of private traffic operations in the beauty industry. Early-stage private traffic operations focused on promotion and conversion, while more mature private traffic operations emphasized long-term brand development and customer loyalty.
Insights on the Development of China Beauty Private Traffic Service Providers
As the demand for private traffic management services grows, various types of providers have emerged, offering solutions such as channel site building, private traffic tool development, data analysis, and community operations. International brands tend to prioritize creativity and integrated marketing, while domestic brands have a stronger focus on tool development and advanced methodologies.
Three Mainstream Models of Private Traffic Service Providers
- Solution Output Type: Brands outsource private traffic operations to authorized teams, who handle everything from planning to implementation.
- Consulting: Third-party companies provide customized consulting services based on the brand’s industry and characteristics, helping them build teams, formulate strategies, and train staff when necessary.
- Consulting + Accompanying Type: Combining the previous two models, third-party companies provide both customized consulting services and on-site support when needed.
Future Direction of Beauty Private Traffic Service Providers
As private traffic operations continue to evolve, service providers are expected to diversify their product offerings and integrate their services into a larger ecosystem. Providers will need to develop multi-channel, multi-solution platforms that are highly compatible with various internet platforms to achieve more efficient win-win situations.
The Role of AI in Private Traffic Management
The popularity of AI-powered tools, like ChatGPT, has led to increased interest in their potential applications in private traffic management. ChatGPT could be used to generate content and ideas, provide AI-powered customer service, and enable personalized marketing strategies. However, there are challenges to overcome, such as model training costs, credibility concerns, and understanding the specific nature of a business.
The beauty industry’s adoption of private traffic has led to the emergence of new service providers and potential applications for AI technologies, such as ChatGPT. As the private traffic landscape continues to evolve, beauty brands need to stay ahead of the curve, leveraging strategic partnerships and cutting-edge technology to remain competitive and achieve long-term success. Contact us to find out more!
Advertise to China's Travellers on Fliggy: China's Leading Online Travel Platform Marketing
As the Chinese travel market continues to grow, businesses must adapt to the ever-changing landscape by utilizing innovative platforms like Fliggy (飞猪), China’s leading online travel platform. In this in-depth guide, we’ll explore the world of Fliggy, its key features, advertising opportunities, and the most effective marketing strategies to help you succeed in this rapidly expanding industry.
Fliggy, formerly known as Alitrip, is a comprehensive travel platform owned by Alibaba Group. It offers a wide array of services, including flight and hotel bookings, vacation packages, and travel-related merchandise. With over 400 million registered users and a dominant position in the Chinese travel market, Fliggy is a must-consider platform for businesses looking to tap into China’s massive travel industry.
Key Features of Fliggy
Integration with Alibaba Ecosystem: Fliggy seamlessly integrates with the entire Alibaba ecosystem, allowing users to access travel services through popular apps like Alipay, Taobao, and Tmall. This provides businesses with a massive potential customer base and increased visibility across multiple platforms.
Extensive Service Offerings: Fliggy offers a comprehensive range of travel services, including flights, hotels, vacation packages, and travel merchandise. This wide array of offerings makes it a one-stop-shop for Chinese travellers, attracting a diverse user base.
Customized Travel Solutions: Fliggy leverages big data and user behaviour analysis to offer personalized travel solutions, helping businesses target specific customer segments effectively.
Fliggy Membership Program: Fliggy’s membership program incentivizes users to spend more on the platform, giving businesses the opportunity to access high-value customers and boost their revenue.
Advertising Opportunities on Fliggy
Sponsored Listings: Businesses can bid for sponsored listings, which appear at the top of search results for relevant keywords. This can significantly increase visibility and drive traffic to your offerings.
Display Ads: Fliggy offers various display ad formats, including banners, rich media, and interactive ads. These ads can be targeted based on user demographics, interests, and browsing behaviour.
Content Marketing: Leverage Fliggy’s content platform by creating engaging, high-quality content that appeals to your target audience. This can help establish your brand as a thought leader in the industry and drive organic traffic.
Fliggy Store: Set up a branded Fliggy store to showcase your products and services, allowing users to easily discover and book your offerings.
Successful Marketing Strategies for Fliggy
Localize Your Content: Cater to the preferences of Chinese travellers by localizing your content. Ensure that your offerings, promotions, and marketing materials are tailored to the local culture and language.
Optimize for Mobile: With the majority of Chinese internet users accessing the web via mobile devices, it’s crucial to optimize your content and ads for mobile viewing to ensure the best user experience.
Leverage Influencer Marketing: Partner with popular Chinese influencers or KOLs (Key Opinion Leaders) to promote your brand and offerings. This can help you reach a wider audience and establish credibility in the market.
Offer Exclusive Deals and Discounts: Attract customers by offering exclusive deals and discounts on Fliggy. This not only incentivizes users to book through the platform but also helps you stand out from the competition.
Fliggy is an indispensable tool offering a range of features and advertising opportunities to help brands connect with their target audiences.
Contact us below to find out more!
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