China Marketing Insights Monthly Newsletter [May 2023]
Hello There,
In this edition, we have carefully curated a selection of articles designed to empower your brand and capitalize on the vast potential of the Chinese market. Let’s delve into the exciting content!
Despite the gradual reopening of borders, challenges such as limited flight capacity and visa processing persist. Discover actionable tips for travel brands to drive the recovery of Chinese outbound tourism in 2023. Additionally, stay informed about the latest statistics and trends shaping China’s outbound travel landscape.
Our newsletter also includes two valuable insights that will undoubtedly capture your interest. The first insight report delves deep into the growth of China’s consumer market, equipping you with the tools to stay ahead of the competition and seize new growth opportunities. The second insight report focuses on preparing for the 618 shopping festival, exploring the power of recommendations in driving sales, the fusion of recommendation and discouragement strategies, and the pivotal role of talented individuals in the process.
Lastly, we feature Lvmama as our app of the month. Lvmama is a leading travel platform in China, offering its users comprehensive and personalized travel services. Explore how this platform can enhance your travel experiences and elevate your brand’s offerings.
We hope the insights shared in this newsletter will inspire you to navigate the Chinese travel market with confidence and seize the abundant opportunities it presents. Stay tuned for our upcoming newsletters, where we will continue to provide valuable industry updates and practical tips to support your success.
Sincerely,
Mia C. Chen
CEO & Co-Founder of OctoPlus Media
China Tourism Marketing and Key Tactics for Travel Brands: Driving Chinese Outbound Tourism Recovery in 2023
As countries reopen their borders to international tourists, the travel industry is gearing up for a strong recovery. For China, the world’s largest and highest-spending outbound tourism market, the outlook is particularly encouraging. But the recovery of Chinese outbound tourism still faces some challenges, such as limited flight capacity and visa processing for some destinations.
In this article, we’ll explore how travel brands can nurture the recovery of Chinese outbound tourism in 2023. We’ll share insights from Dragon Trail’s survey results and provide actionable steps for product creation, services, and marketing that will most appeal to outbound Chinese travellers.
Survey Findings: What Chinese Travelers Want
According to Dragon Trail’s survey, many Chinese travellers are still undecided about their travel plans for 2023. About 26% say they hope to travel outbound but haven’t booked a trip yet, and a further 27% are unsure about travelling outbound before the end of 2023. This presents a significant opportunity for travel brands to influence consumers’ future decisions.
The biggest factor preventing Chinese travellers from leaving home is safety concerns. Tourism brands can address this by emphasizing safety, stability, and friendliness in their marketing messages. Our survey also found that food, landmarks, and local experiences are the top reasons for travelling abroad. In particular, travellers want to try local food (56%), experience local life (52%), and visit landmarks (56%). Beach and sea destinations are also popular (45%).
While Asia remains the leading destination for Chinese travellers, the diversity of the list of intended travel destinations shows that there is interest well beyond short-haul favourites. Survey respondents named 44 destinations around the world, including every continent. Japan and South Korea are among the top five destinations for Chinese travellers, despite restrictions placed on them earlier this year.
How Can Travel Brands Encourage Bookings?
To encourage bookings, travel brands should consider offering full-service products that include visas, flights, accommodation, and a tour guide. Dragon Trail’s survey found that 61% of respondents would opt for this type of product. Although independent travel has been on the rise, many Chinese travellers still prefer complete packages.
Safety concerns are the most significant obstacle preventing Chinese travellers from leaving home, so travel brands should prioritize safety in their marketing messages. Emphasizing the stability and friendliness of destinations and services can also help ease concerns.
Finally, Dragon Trail’s survey found that many travellers are still undecided about their travel plans for 2023. This presents a significant opportunity for travel brands to influence consumers’ future decisions. By appealing to travellers’ desire for local experiences and offering full-service packages that address safety concerns, travel brands can help nurture the recovery of Chinese outbound tourism in 2023.
The recovery of Chinese outbound tourism in 2023 presents significant opportunities for travel brands. By understanding the concerns and desires of Chinese travellers, brands can create products, services, and marketing campaigns that appeal to this market. Safety concerns are the most significant obstacle preventing Chinese travellers from leaving home, so brands must prioritize safety in their messaging. By offering full-service packages that address safety concerns and appeal to the desire for local experiences, travel brands can help accelerate the recovery of Chinese outbound tourism.
Contact us to understand how you can reach out to Chinese travellers and advertise your brand.
Key Insights into China's Post-Quarantine Outbound Travel Boom
After a long hiatus, China’s outbound travel industry is starting to bounce back. With quarantine restrictions now lifted, travellers are eager to explore the world once again. In the first quarter of 2023 alone, outbound bookings from mainland China increased by 331% compared to last year. This pent-up demand has led to a surge in travel during this year’s holiday period. In this blog post, we will discuss the latest statistics and trends in China’s outbound travel industry, as well as the top destinations and airlines that travellers should keep an eye on.
According to our latest research and data from ForwardKeys, China Eastern Airlines, Air China, and China Southern Airlines are the top 3 airlines with the highest number of scheduled international seats from June to October 2023. Additionally, 83.8% of the scheduled seats are with regular airlines, while 16.2% are with low-cost carriers. Among the preferred international destination regions, Asia-Pacific remains at the top with 80.3%, followed by Europe.
The top five destinations that travellers from China have booked trips from June to October 2023 are Thailand, South Korea, Hong Kong, Japan and Taiwan. One significant difference in 2023 travel is that tourists from mainland China take shorter trips, with the percentage of 2-day and 3–4-day trips increasing. This may explain why closer destinations, such as Hong Kong and Macau, claim the number one and two spots from January to March 2023.
Source: ForwardKeys (June to October 2023)
Thailand continues to be the busiest international route, with almost 495k seats in May 2023. South Korea sees the largest airline capacity increase, with 118k more seats, an increase of 35% compared to April 2023. Japan also saw a large increase in percentage terms, with 29% more seats in May than in April 2023.
Up to 72.3% of travellers are on leisure purposes and 12.5% travel in groups. International airline capacity in China continues its travel recovery since reopening in January; carriers are operating over 650k more international seats in May than in April 2023. Chinese carriers increased their international capacity by 22% this month, adding 650k airline seats between April and May 2023 and bringing the total number of seats flown to almost 3.7m.
Source: OAG
The lift of quarantine restrictions in China has led to a surge in outbound travel demand. Travellers are eager to explore the world again and book trips to various destinations across the globe. Although the outbound travel industry has not yet reached its 2019 booking levels, it is steadily recovering. As more travellers plan their trips, keeping an eye on the top airlines and destinations is important. China Eastern Airlines, Air China, and China Southern Airlines are the top three airlines to watch, and Hong Kong, South Korea, Thailand, Singapore, and Taiwan are the top destinations to visit. With the continued recovery of the travel industry, we can expect to see more exciting developments in China’s outbound travel space.
Don’t miss out on the exciting developments in China’s outbound travel space. If you have any questions or would like to learn more about China’s outbound travel industry and the top destinations and airlines to watch, please feel free to reach out to us. Our team is ready to assist you and provide you with the latest information and insights.
China Industry Insights for Advertisers: Understanding China’s Consumer Market Growth in 2023
As a media advertising agency specializing in the Chinese market, we’re excited to share our insights on the predicted growth trends for China’s consumer market in 2023. Based on recent observations by Kantar Worldpanel (a subsidiary of CTR in China), we’ve identified four key consumer product market trends that will shape the landscape and provide opportunities for brands to thrive in the coming year.
1. Milk Powder Market: A Focus on Niche Opportunities
Despite a declining birth rate, the milk powder market in China is expected to grow steadily in 2023. The new national standard and market consolidation will result in fewer brands and formulas, opening the door for niche players to survive. The sales of specialized medical formulas and premium ingredients like OPO, lactoferrin, and A2-β casein are on the rise. Brands targeting the Chinese market should focus on understanding consumer media habits and leveraging social media and short videos to drive conversions.
2. Household Cleaning Market: Emotional Value and Rich Consumer Needs
Household cleaning products are evolving to meet consumers’ diverse needs and offer an enhanced user experience. Products like toilet cleaning mousse and gel cleaners, as well as specialized detergents for washing machines and dishwashers, are experiencing significant growth. Brands should focus on providing not only functional benefits but also emotional value to attract consumers in this competitive market.
3. Household Tissue Paper Market: Multi-Channel Growth and Emerging Products
The household tissue paper market in China is set to grow significantly in 2023, with coreless roll tissue paper and flexible packaging tissue paper leading the charge. Emerging paper products like wet toilet paper, kitchen paper towels, and cotton towels are also gaining traction. Brands should focus on developing their presence across multiple channels, especially in small supermarkets and community group buying platforms, to maximize their growth potential.
4. Foreign Food and Beverages Markets: Reviving Consumption in Home Appliances
The food and beverage market in China is heavily influenced by consumption both inside and outside the home. With consumption outside the home recovering in 2023, brands should seize the opportunity to actively deploy new consumption scenarios that cater to consumers’ pursuit of health and pleasure. For instance, electrolyte water has become popular in the sports and fitness scenes, with more brands like Dongpeng entering the market.
In conclusion, as China’s consumer market continues to evolve in 2023, brands and advertisers should stay vigilant, monitor market changes, and gain insights into consumer psychology and the need to capitalize on new growth opportunities. By understanding these trends and adapting their strategies accordingly, brands can maximize their success in the Chinese market.
If you need to learn more about the Chinese market and want to start developing your marketing plan, please feel free to contact us. We provide professional services to help you achieve your goals.
China Influencer Marketing Strategies and Tips: Leverage Influencer Marketing for Success in the 618 Shopping Festival
In the ever-evolving landscape of e-commerce, brands are gearing up for the annual 618 shopping festival, the largest mid-year sales event in China. The importance of this event is undeniable, with brands investing heavily in stock preparation, marketing strategies, and promotional materials. The competition is fierce, and the challenges faced by brands in the marketing process are magnified. So, how can brands leverage their strengths, find a competitive edge, and achieve efficient conversions? The answer lies in influencer marketing.
Rethinking Influencer Marketing
Influencer marketing has evolved from being a mere add-on to a vital component of a brand’s overall marketing strategy. Short video and live-streaming platforms have become key marketing tools for brands, covering the entire consumer shopping process from product discovery to final purchase. Influencer marketing has gradually upgraded from a channel to a marketing action, campaign, and even a growth strategy for brands.
- Trend 1: Influencer Marketing as a Key Driver of Consumption
According to the 2022 Douyin Young People Observation Report, over 93% of users have discovered products (a process known as “planting grass” in Chinese internet slang) while browsing videos and live streams on Douyin (TikTok in China), and 95% of users have made impulse purchases after discovering these products.
- Trend 2: The Integration of Product Discovery and Purchase
Traditionally, product discovery and purchase were two separate actions. Some brands focused only on product discovery, leading to a lack of brand stickiness. Others focused only on purchases, neglecting the importance of product discovery, and failing to provide adequate customer service, resulting in potential customers going elsewhere to make their purchases.
The concept of “integrated planting and pulling” bridges this gap. Consumers naturally transition from product discovery to purchase after viewing influencer content, a process that should be seamless and uninterrupted.
- Trend 3: Influencers as Crucial Links in the Consumer Journey
Influencers serve as important entry points for consumers. Users can learn more about brands and directly access Douyin’s shopping mall and brand sales pages through influencers, making the process of product discovery and purchasing more diverse and seamless.
- Trend 4: Influencer Marketing as a Long-Term Strategy
Influencer marketing isn’t just about immediate sales. It’s also about building a brand and accumulating marketing assets. With deep, refined operations, the effects of influencer marketing can balance short-term and long-term benefits. High-quality content appearing frequently and in various forms can extend the effects of product discovery.
New Trends, New Misconceptions
Despite the proven effectiveness of influencer marketing, many brands still have doubts. High-profile influencers are expensive and scarce, while smaller influencers, though more cost-effective, may not deliver the desired quality.
- Misconception 1: Only Top Influencers Can Drive Sales
Many believe that only top-tier influencers can effectively promote products. However, this approach can turn influencer marketing into a gamble. A multi-dimensional approach involving influencers of various tiers can often bring unexpected leverage effects to brands.
- Misconception 2: Influencer Marketing is a “Spray and Pray” Strategy
Some brands worry that their marketing efforts will be lost in the vast sea of content. However, platforms have provided clear solutions to ensure that brands can effectively reach their target audience and achieve brand recognition and conversion.
- Misconception 3: Influencer Marketing is a Short-Term Strategy
Many believe that influencer marketing is a short-term strategy, with effects disappearing as soon as the campaign ends. However, influencer marketing not only drives product sales but also builds brand and marketing assets. High-quality content appearing frequently and in various forms can extend the effects of product discovery.
How to Do Influencer Marketing Right
To help brands achieve growth during the 618 shopping festival, platforms like Douyin have proposed strategies for long-term conversion. They have created immersive shopping experiences, allowing brands to showcase their products and content in a department store-like setting. This approach enables consumers to naturally transition from product discovery to purchase, thereby increasing the depth of the connection between brands and consumers.
Influencer marketing is a powerful tool for brands, particularly during major sales events like the 618 shopping festival. However, it’s not without its complexities. Brands must navigate a range of considerations, from choosing the right influencers to balancing short-term sales with long-term brand building. With a clear strategy and the right platform, brands can leverage influencer marketing to achieve significant growth.
If you want to start your influencer marketing or prepare a marketing plan for China 618, please contact us!
Advertise to China’s Travellers on Lvmama, leading OTA in Chinese tourism market
Lvmama, one of the leading travel platforms in China, has transformed the way Chinese travellers plan and experience their journeys. Founded in 2008, Lvmama aims to provide its users with comprehensive and personalized travel services. In this blog post, we will delve into Lvmama’s introduction, key features, advertising opportunities, and successful marketing strategies for brands. Lvmama boasts an impressive user base of over 100 million monthly active users as of the latest data available.
Key Features of Lvmama
- Extensive Travel Options: Lvmama offers a wide range of travel services, including flight bookings, hotel reservations, vacation packages, and more. Users can explore various destinations and find tailored solutions to suit their preferences.
- Personalized Travel Recommendations: Leveraging advanced algorithms, Lvmama provides personalized travel recommendations based on user preferences and browsing history. This ensures users are presented with relevant and engaging travel options.
- User Reviews and Ratings: Lvmama incorporates user-generated content, allowing travellers to share their experiences through reviews and ratings. This feature helps users make informed decisions and fosters a community-driven platform.
- Seamless Mobile Experience: Lvmama boasts a user-friendly mobile app, enabling travellers to plan and manage their trips effortlessly. The app is optimized for on-the-go bookings, making it convenient and accessible for users.
- Customer Support: Lvmama provides dedicated customer support to assist users throughout their travel journey. Whether it’s inquiries, changes to bookings, or troubleshooting, the support team ensures a smooth and satisfactory experience.
Advertising Opportunities on Lvmama
- Display Ads: Lvmama offers advertising options through display ads on its website and mobile app. Brands can leverage eye-catching visuals, compelling headlines, and engaging content to capture users’ attention and drive conversions.
- Sponsored Content: Brands can collaborate with Lvmama to create sponsored content, such as travel guides, destination spotlights, or itinerary suggestions. This enables brands to showcase their products or services in an informative and organic manner.
- Partner Packages: Lvmama collaborates with travel-related brands to create exclusive partner packages. Brands can offer discounts, promotions, or unique experiences within these packages, attracting users and boosting brand visibility.
- Email Marketing: Lvmama utilizes its vast user database to send targeted and personalized email campaigns. Brands can leverage this channel to reach a receptive audience and promote their offerings effectively.
Successful Marketing Strategies for Brands on Lvmama
- Influencer Collaborations: Partnering with travel influencers or popular bloggers who have a strong presence on Lvmama can significantly impact brand visibility and credibility. Influencers can share their experiences, endorse products or services, and drive engagement among their loyal followers.
- Promotional Campaigns: Running targeted promotional campaigns or limited-time offers exclusively for Lvmama users can entice travellers to choose a brand over competitors. Providing unique benefits or incentives encourages users to make bookings through Lvmama.
- User-Generated Content: Encouraging users to share their travel experiences or reviews on Lvmama can amplify brand exposure and build trust among potential customers. Brands can incentivize users to create content, organize contests, or feature standout stories to foster engagement.
- Targeted Ad Placement: Utilize Lvmama’s targeting options to ensure ads are displayed to the most relevant audience. Consider demographic, interest-based, or behavioural targeting to maximize ad performance and generate higher conversion rates.
Additionally, Lvmama offers innovative and additional brand partnership opportunities to enhance the travel experience for its users. Here are a few examples:
- Destination Marketing Partnerships: Lvmama collaborates with tourism boards, hotels, airlines, and local businesses to promote specific destinations. These partnerships involve creating curated travel packages, exclusive offers, and tailored experiences that highlight the unique attractions and culture of the destination. By partnering with Lvmama, brands can gain exposure to a large user base and attract travellers seeking authentic and memorable experiences.
- Experiential Marketing Collaborations: Lvmama facilitates partnerships with brands to offer immersive and experiential travel activities. This can include adventure sports, cultural workshops, food tours, or special events. By providing unique and interactive experiences, brands can create lasting connections with travellers and differentiate themselves in the market.
- Loyalty Programs and Co-branded Credit Cards: Lvmama has collaborated with financial institutions to offer co-branded credit cards and loyalty programs. These partnerships provide cardholders exclusive benefits, discounts, and rewards when booking through Lvmama. For brands, this presents an opportunity to tap into a loyal customer base and incentivize repeat business.
- Technology Integration Partnerships: Lvmama actively seeks partnerships with innovative travel technology companies to enhance its platform’s features and capabilities. This can include integrating services such as virtual reality (VR) travel experiences, artificial intelligence (AI)-powered travel recommendations, or augmented reality (AR) navigation. By aligning with Lvmama’s technology initiatives, brands can showcase their cutting-edge solutions and create a more immersive and personalized travel experience.
- Social Impact Collaborations: Lvmama promotes responsible and sustainable travel practices. As part of its brand partnerships, Lvmama supports initiatives related to environmental conservation, cultural preservation, or community development. Brands that align with these values can collaborate with Lvmama to promote their social impact efforts, raising awareness and driving positive change within the travel industry.
These innovative and additional brand partnership opportunities offered by Lvmama showcase its commitment to delivering unique travel experiences and fostering mutually beneficial relationships with brands. By exploring these partnerships, brands can leverage Lvmama’s platform and extensive user base to gain exposure, increase customer loyalty, and drive business growth.
Here are a few examples of brand collaborations that Lvmama has undertaken:
- Hilton Hotels & Resorts Partnership: Lvmama collaborated with Hilton Hotels & Resorts to offer exclusive travel packages and discounted rates to Lvmama users. This partnership allowed Hilton to tap into Lvmama’s extensive user base and provide tailored offerings to Chinese travellers, enhancing their hotel booking experience.
- AirAsia Collaboration: Lvmama partnered with AirAsia, a leading low-cost airline, to create co-branded travel packages and promotions. The collaboration aimed to provide affordable and convenient travel options to Lvmama users, combining flight bookings with hotel reservations and other travel services.
- Olay Skincare Campaign: Lvmama collaborated with Olay, a renowned skincare brand, for a promotional campaign targeting female travellers. The campaign included special offers on Olay products, exclusive travel giveaways, and engaging content centred around self-care and beauty while travelling.
- China Eastern Airlines Partnership: Lvmama joined forces with China Eastern Airlines to offer seamless flight and hotel bookings. This collaboration allowed users to book China Eastern flights directly through the Lvmama platform, simplifying the travel planning process and providing a more integrated booking experience.
- Marriott International Alliance: Lvmama formed an alliance with Marriott International, a leading hotel chain, to provide diverse hotel options and exclusive benefits to Lvmama users. The partnership involved offering special rates, loyalty rewards, and curated travel packages featuring Marriott properties.
Lvmama has revolutionized the travel industry in China, offering comprehensive travel services and empowering both travellers and brands. With its extensive range of features, advertising opportunities, and successful marketing strategies, Lvmama provides a platform for brands to enhance their visibility, engage with travellers, and drive business growth by capitalizing on Lvmama.
If you want to know more about Lvmama advertising or want to start your advertising plan, please contact us.
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