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Insight Report by Fabernovel - The Hidden consumption force of Overseas Chinese Residents

Fabernovel
Fabernovel
FabernovelResponsable Communication chez FABERNOVEL INNOVATE

Fabernovel, the global innovation agency operating in Europe, US and China, is pleased to share its latest in-depth study analyzing Overseas Chinese Residents, “The hidden consumption force”.

Insight Report by Fabernovel - The Hidden consumption force of Overseas Chinese Residents

1 of 51
Overseas Chinese Residents
The Hidden
Consumption Force
Insight Report, Nov 2019
FOREWORD
Fabernovel is pleased to share this comprehensive and in depth study
on overseas Chinese residents, analyzing brand immersion strategies
designed to reach out and effectively engage with this untapped
community based niche market.
Our latest estimation reveals that close to 70 million residents outside of
China are identified as Chinese, or as maintaining some percentage of
Chinese origin. Further evidence indicates that this community possesses
strong purchasing power, and plays an increasingly vital role in
influencing China’s domestic market. In short, this segment has evolved
as a key demographic for brands in diverse markets that are usually
under-represented in local brand strategies.
In this study, we aim to demystify the concept of overseas Chinese
residents who may be living in two spheres of consumer influence
(Western and Chinese), and thereby showcase effective approaches
designed to engage with this indice.
Accordingly, we hope to provide some key insights to help brands better
develop strategies which proactively target, recruit, retain, and serve this
powerful, and intelligent niche population.
Patrice Nordey
APAC CEO, Fabernovel
2
1 The Untapped Market
3
The strong identity of Chinese residents across the world
San Francisco’s Chinatown is one of the oldest
Chinatowns in North America. It’s also
renowned as a major tourist attraction,
drawing more and more visitors each year than
the Golden Gate Bridge. The even greater
significance is its symbolic impact on the US
history and culture in relation to ethnic
Chinese Immigrants in North America.
Milan Chinatown is considered by many to be
the oldest and largest Chinese neighborhood in
Italy. This pedestrian district radiates from Via
Paolo Sarpi and across to nearby Via Bramante,
Via Aleardi and Via Niccolini and thereby
forming a Chinese city within a city.
As early as the 1860s, the Melbourne
Chinatown had grown to include the Little
Bourke Street clubrooms, as well as further
extending along little Bourke Street between
Swanston Street and Spring Street. And with
this meticulous expansion, the community has
now evolved into one of the longest continuous
Chinese settlements in the western world.
San Francisco
Milan
Melbourne
4
Chinese residents radiate the Chinese roots to the western society
Australia
5Source: Australian Bureau of Statistics, 2017
The present size of Australia’s Chinese Community is
now over 1.2 million.
Closely following English, the Mandarin has now
become the 2nd most actively utilized language in
Australia.
Around 2.5% of the population in Australia is
utilizing Mandarin for basic family interaction, and
general communication.
Approximately⅓ of Australia’s international student
population are from China.
The journey of Chinese residents in Australia essentially began
in 1818. With over 200 years of active presence, the Chinese
Australian community had brought s strong and fruitful
influence on the evolution of contemporary Australian society.
Focus
Why are overseas Chinese
residents a crucial and
unneglectable consumer
force in foreign markets ?
6
Ad

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Insight Report by Fabernovel - The Hidden consumption force of Overseas Chinese Residents

  • 1. Overseas Chinese Residents The Hidden Consumption Force Insight Report, Nov 2019
  • 2. FOREWORD Fabernovel is pleased to share this comprehensive and in depth study on overseas Chinese residents, analyzing brand immersion strategies designed to reach out and effectively engage with this untapped community based niche market. Our latest estimation reveals that close to 70 million residents outside of China are identified as Chinese, or as maintaining some percentage of Chinese origin. Further evidence indicates that this community possesses strong purchasing power, and plays an increasingly vital role in influencing China’s domestic market. In short, this segment has evolved as a key demographic for brands in diverse markets that are usually under-represented in local brand strategies. In this study, we aim to demystify the concept of overseas Chinese residents who may be living in two spheres of consumer influence (Western and Chinese), and thereby showcase effective approaches designed to engage with this indice. Accordingly, we hope to provide some key insights to help brands better develop strategies which proactively target, recruit, retain, and serve this powerful, and intelligent niche population. Patrice Nordey APAC CEO, Fabernovel 2
  • 3. 1 The Untapped Market 3
  • 4. The strong identity of Chinese residents across the world San Francisco’s Chinatown is one of the oldest Chinatowns in North America. It’s also renowned as a major tourist attraction, drawing more and more visitors each year than the Golden Gate Bridge. The even greater significance is its symbolic impact on the US history and culture in relation to ethnic Chinese Immigrants in North America. Milan Chinatown is considered by many to be the oldest and largest Chinese neighborhood in Italy. This pedestrian district radiates from Via Paolo Sarpi and across to nearby Via Bramante, Via Aleardi and Via Niccolini and thereby forming a Chinese city within a city. As early as the 1860s, the Melbourne Chinatown had grown to include the Little Bourke Street clubrooms, as well as further extending along little Bourke Street between Swanston Street and Spring Street. And with this meticulous expansion, the community has now evolved into one of the longest continuous Chinese settlements in the western world. San Francisco Milan Melbourne 4
  • 5. Chinese residents radiate the Chinese roots to the western society Australia 5Source: Australian Bureau of Statistics, 2017 The present size of Australia’s Chinese Community is now over 1.2 million. Closely following English, the Mandarin has now become the 2nd most actively utilized language in Australia. Around 2.5% of the population in Australia is utilizing Mandarin for basic family interaction, and general communication. Approximately⅓ of Australia’s international student population are from China. The journey of Chinese residents in Australia essentially began in 1818. With over 200 years of active presence, the Chinese Australian community had brought s strong and fruitful influence on the evolution of contemporary Australian society.
  • 6. Focus Why are overseas Chinese residents a crucial and unneglectable consumer force in foreign markets ? 6
  • 7. A Huge Market with Steady Growth Estimated Number of Overseas Chinese Residents ( Unit: Mn) Outbound TravellerOverseas Chinese While China’s strong international presence and rapid economic development may slow down the migration rate… …the estimated population growth of overseas Chinese will continue to follow a trend of steady growth. This phenomenal increase in numbers is projected to reach 80 million by 2025. What’s more, the outstanding size of this market segment actually surpasses the outbound travel market. 1 2 3 Source: Ministry of Culture and Tourism of the People’s Republic of China; Zhuang Guotu, Historical Changes in Numbers and Distribution of Overseas Chinese in the World, 2012; Fabernovel Analysis 7
  • 8. Overseas Chinese Residents are centralized in the Metropolis are digitized citizens have a strong influence on their home country have tremendous purchasing power are a huge and steadily growing community 8
  • 9. They have strong purchasing power By 2018, there were over 240,000 Chinese high networth individuals that had moved, or were in the process of moving overseas. Chinese counts for two-thirds of potential house buyers in the US city of Palo Alto. Their real estate investment in California reached 12.7 billion USD in 2016 alone. Every year, overseas Chinese students spend over 10.6 billion USD on leisure and recreation. With fashion and beauty consistently remaining at the top of this category, it in fact accounted for roughly 10% of total outbound traveller spending in 2018. Source: Quantitative analysis based on data from 2017 International Student Consumption Report, Hurun 2018 Investment Immigration Report, and US National Association of Realtors 9
  • 10. They sweep global goods to China U.S. And on the same day at Saks Fifth Avenue in New York City, store revenue was surged to nearly 40% as a result of active purchases specifically contributed by Chinese shoppers. In fact, locally based Chinese residents and international students ‘swept’ through the accessories section at Saks as these pieces were often considered as great gifts for friends and family. The best part was that they had purchased in high numbers because the items fit perfectly in luggage that was to be carried with them on their next trip back to China. During a Black Friday, Chinese shoppers lined up in front of cashiers, each purchasing nearly 10-20 luxury products at Fashion Outlets of Chicago. Fashion Outlets, Chicago Saks Fifth Avenue, New York City Source: World Journal, 2015 10
  • 11. They have strong influence on their home country Daigou and key opinion leaders (KOLs) residing overseas are powerful influencers. Many of them have hundreds of thousands of followers in China, and often become better marketers than many brands’ own in-house marketing teams. Overseas Chinese residents are public relations amplifiers. In November 2018, a screenshot of Stefano Gabbana’s controversial conversations on Instagram was published on Weibo. This news caused mass outrage in China followed by the cancellation of an elaborate Dolce & Gabbana fashion show in Shanghai. In addition the brand’s products were immediately discontinued by China’s major e-commerce platforms. 11
  • 12. They amplify their social influence on the domestic market France a video of Chinese customers lining up outside of a Balenciaga boutique in Printemps Paris and being mistreated by mall security went viral on Chinese social media platforms (Weibo and Zhihu), causing mass outrage in China. both Balenciaga and Printemps immediately issued apologies through Weibo official accounts. A population of over 300,000 Chinese Parisians can exert great influence on the over 800 million Chinese domestic internet consumers entrenched in China’s highly connected digital society. Any PR crisis with overseas Chinese residents will often be amplified and directly affect the China market. April 252018 April 262018 April 282018 Balenciaga issued a second official apology on April 28. From Balenciaga Official Weibo Account, April 2018 12
  • 13. China received remittances of over USD 67 billion in 2018, and was the second largest share of remittances worldwide after India. Source: The world bank, Record High Remittances Sent Globally in 2018; Statista Digital Market Outlook; Statista 41% of domestic Chinese consumers made cross-border purchases at least once per month in 2018. The transaction volume of China’s cross-border e-commerce is likely to reach USD 1.78 trillion in 2020. The forecast of Retail e- commerce sales in the United States is expected to reach USD 604 billion in 2020. The flow of money is tangible 13
  • 15. Who are they Permanent Residents Temporary Residents Over 6 months Estimation based on Fabernovel Analysis 15
  • 16. The three waves of immigration 1980s 1990s 2000s 16
  • 17. Source: Population projection based on Canada 2016 Census, U.S. Department of Home Security: Study in the States, US 2017 Census, Australia 2016 Census, Japan 2011 Census, New Zealand 2013 Census, France 2010 Census, UK 2008 Census, Germany 2016 Census, and Singapore 2015 Census. Note: the graph shows a non-exhaustive list of locations for overseas Chinese. Countries where most overseas Chinese are located in 1.8M 4.2M 630K 650K 210K 1.4M 152K 990K Country and estimated population of Chinese residents 2.7M 17
  • 18. Source: Population projection based on Canada 2016 Census, U.S. Department of Home Security: Study in the States, US 2017 Census, Australia 2016 Census, Japan 2011 Census, New Zealand 2013 Census, France 2010 Census, UK 2008 Census, Germany 2016 Census, and Singapore 2015 Census. Note: the graph shows a non-exhaustive list of locations for overseas Chinese. Cities where most overseas Chinese are located in Vancouver Toronto New York LA SF Bay Area Sydney Melbourne London Proportion of overseas Chinese residents in the city 18
  • 19. Portrait of typical overseas Chinese residents ~12% in Sydney ~7% in Melbourne Young Professional Small Business OwnerInternational Student Affluent Investor Consumer insights based on Fabernovel internal data and analysis. 19
  • 20. YoungProfessional Edward, 28 years old #Millennial #Middle Class #Digital Savvy Working for one of the world’s leading tech companies in San Francisco, Edward is well- educated and earns an annual income that can fuel his aggressive and impulsive shopping pattern. He and his peers are becoming the major consumer force in the city. I trust my favorite KOLs and would buy what they recommend. Lifestyle Demographic analysis based on data from USCIS, US Department of State, US Bureau of Labor Statistics. Consumer insights based on Fabernovel internal data. “ ” Counts for 8.4% of total Chinese population in San Francisco Bay Area Earns 32.4% of the total income of the typical Chinese workforce in the region Digital Habits 56% Chinese Platforms Other Platforms 46% Consumer Journey Awareness Consideration Purchase Service Loyalty Messaging Entertainment News & Information Receives recommendation by KOLs on Bilibili Researches products on SMZDM or RED Checks out products in stores when convenient ONLINE 90% OFFLINE 10% Searches products on Amazon or image search on Taobao Pays with credit cards and chooses same-day delivery Schedules one-day delivery Checks out product in stores when convenient Receives Amazon email newsletters Work Schedule Hobbies Value Frequency of Travel To China Favorite Categories of Leisure Spending Flexible Gym, Street Dancing Smart Lifestyle Once Every 2 Years Entertainment, Travel, Fashion 20
  • 21. ONLINE 40% OFFLINE 60% Group chat with friends on WeChat Capture deals shared by friends Researches the product on RED Visits offline malls or outlets to check out product Ask family in China on WeChat for potential need for daigou Pays with debit cards or Alipay / WeChat Pay (if offered) Orders out-of-stock products at cashier and ships to home Scan QR code to follow WeChat service account Joins membership at cashier Receives deal notifications on WeChat Awareness Consideration Purchase Service Loyalty Zheng, 21 years old #Gen-Z #Student #”Moon-light” Zheng is a sophomore at the University of Melbourne. Having grown up in an affluent family, Zheng is well-supported financially. This hasn’t made her less frugal however, as she’s intrinsically aware that the money that her family provides is not infinite, and that she has little control over it. InternationalStudent I pay a lot of attention to what people buy in China. Lifestyle Demographic analysis based on data from Australian Bureau of Statistics and Student Cities Australia. Consumer insights based on Fabernovel internal data. “ ” Counts for 9.3% of the total Chinese population in Melbourne Receives family support equivalent to 14.9% of the total income of the typical Chinese workforce in the region Digital Habits Consumer Journey School Schedule Hobbies Value Frequency of Travel To China Favorite Categories of Leisure Spending Very Flexible Shopping, Parties Enjoyable Life Experience Twice Every Year Fashion, Beauty 60% Chinese Platforms Other Platforms 40% Messaging Entertainment News & Information 21
  • 22. Receive recommendations from WeChat articles or Dealmoon Researches products on RED Checks product details on brand website Discusses with friends in person Visits store Receives personalized staff assistance in Chinese Pays with credit cards or Alipay / WeChat Pay (if offered) Follow-ups by staff through WeChat Join membership and add store staff’s WeChat Receives WeChat messages from store staff on the latest trends ONLINE 30% OFFLINE 70% Awareness Consideration Purchase Service Loyalty 55% Chinese Platforms Other Platforms 45% Messaging Entertainment News & Information Nicole, 34 years old #Millennial #Affluent #Lifestyle Seeker Nicole lives in the suburb of Vancouver with her husband and 8-year old son. Besides maintaining a laid-back job, she spends most of her time either with her son, or in the gym. Nicole has made numerous friends with many other Vancouver based moms and Chinese families. AffluentInvestor I firstly, always buy products with good quality, and the price comes in second place. Lifestyle Demographic analysis based on data from reports by Environics Analytics and Hurun. Consumer insights based on Fabernovel internal data. “ ” Counts for 6.5% of total Chinese population in Vancouver metropolitan region Household net worth takes 24.2% of household net worth of all Chinese in the region Digital Habits Consumer Journey Work Schedule Hobbies Value Frequency of Travel To China Favorite Categories of Leisure Spending Very Flexible Travel, Shopping Wealth And Wellness Once Every Year Beauty, Fashion, Health Products 22
  • 23. Consumer Journey Receive recommendations from friends on WeChat Discusses with friends at social gatherings Visits stores to check quality and price Pays with credit card or cash Free returns or exchanges in store Receives loyalty points ONLINE 20% OFFLINE 80% Awareness Consideration Purchase Service Loyalty Work Schedule Hobbies Value Frequency of Travel To China Favorite Categories of Leisure Spending Heavy And Inflexible Mahjong, Food Money-driven and Family Oriented Once Every Year Kids’ Toys 49% Chinese Platforms Other Platforms 51% Messaging Entertainment News & Information Nan, 40 years old #Gen-X #Merchant #Family Oriented Besides running a restaurant with his family, Nan devotes most of his time on his new-born kids. Although considered a typical cost-saver, Nan is extremely generous with his family. He is very close to friends of the same origin, and speaks his mother tongue most of time. SmallBusinessOwner My friends and I are very much synchronized in terms of shopping. Lifestyle Demographic analysis based on surveys and data from INSEE. Consumer insights based on Fabernovel internal data. “ ” Counts for 16.1% of total Chinese population in Greater Paris Earns 30.5% of total income of Chinese workforce in the region Digital Habits Receive deals by mail and text messages 23
  • 24. Typical Consumer’s Journey AWARENESS CONSIDERATION PURCHASE Shopping inspirations usually come from online activities Overseas Chinese residents are often inspired by KOLs and peers from their community Chinese social media and peers often serve as research channels Pricing promotions can have a big influence on product consideration Amazon is the primary destination for online shopping, while Taobao is for products unavailable outside of China Sometimes uses Alipay or WeChat Pay if offered by store/website SERVICE Strong demand for one-day delivery driven by the demand for instancy Sometimes use Alipay or WeChat Pay if offered by store/ website LOYALTY Loyalty programs can create influences in the form of both a traditional membership or WeChat account Many are cross-border travelers and prefer global membership ONLINE OFFLINE Sees articles shared by friends Receives shopping inspiration from KOL’s Goes onto RED and reads reviews and testimonies Goes to official website or e- commerce platform to check product details Places orders on Amazon, Taobao, or brand e-commerce websites Pays with credit cards, or Alipay Receives news and deals on WeChat or through emailOne-day delivery Discusses with friends and gets opinion Goes to offline stores to check products Tries on products Pays with credit cards, debit cards, or Alipay / WeChat Pay Free return or exchange by mail or in-store Receives news and deals by mail or text messages 24
  • 25. Top Chinese digital platforms used by overseas Chinese 1. WeChat 2. Weibo 3. Zhihu 4. RED 5. Douyin/TikTok Top Western digital platforms used by overseas Chinese 1. Youtube 2. Instagram 3. Whatsapp 4. Facebook 5. LinkedIn Top digital platforms serving overseas Chinese community 1. iFun Video (North America) 2. Dealmoon (North America) 3. eCentime (France) 4. Red Scarf (U.K.) 5. Duonao Live (Europe) Digital platforms targeting overseas Chinese Source: GlobalWebIndex Trend Report, Tencent & Sina H1 Report, CNNIC 25
  • 27. Add WeChat, the Chinese super app, to your marketing strategy Leverage the power of Chinese communities in your region1 3 Market your brand to China through overseas Chinese residents2 27
  • 28. Leverage the Chinese community power in your region 28
  • 29. CaseStudy United States Awareness Consideration Purchase Service Loyalty Background Louis Vuitton launched open screen ads on Duonao Video App to promote the Chinese valentine’s day among overseas Chinese. Platform: Duonao Louis Vuitton is a French fashion house and luxury retail company founded in 1854 by Mr. Louis Vuitton Duonao is a platform providing online videos with Chinese scripts for users outside of China. The website and mobile app draw around 200K active users per week. More than 39% of its users are based in the United States, and 11% are from Canada. The website visits alone reached nearly 1.4 million in July, of 2019. Investing in advertising on overseas Chinese platforms 29 2017
  • 30. CaseStudy United States Sep, 2019 Awareness Consideration Purchase Service Loyalty Background Farfetch cooperated with Dealmoon to promote its mid-year sales event by generating an promo code exclusively for Dealmoon users. Dealmoon promoted the sale on its WeChat and Weibo accounts, as well as its own mobile app. Platform: Dealmoon (Weibo, WeChat, App) Farfetch: an online luxury fashion retail platform that sells products from over 700 boutiques and brands from around the world. Dealmoon operates a leading social shopping community for Chinese expats around the world, as well as an e-commerce advisory platform for global consumer brands seeking to reach Chinese-language shoppers. In 2011, Dealmoon was integrated with the popular Chinese social platform Weibo, thereby effectively expanding its reach to Chinese consumers worldwide. As a result, Dealmoon now has more than 15 million active followers. Collaborating with overseas Chinese platforms for leads & sales 30Farfetch discount page
  • 31. Awareness Consideration Purchase Service Loyalty CaseStudy Paris, France Aug, 2019 Lancôme is a French luxury perfumes and cosmetics brand that distributes products internationally. Lancôme is part of the L‘Oréal group. Collaborating with overseas Chinese platforms for content 31 Background Figures Lancôme collaborated with eCentime to promote its online sales. In addition, eCentime worked on branded content in Chinese describing stories behind the brand, and marked recommendations to platform users. During the years 2017 - 2018, France hosted 30,071 students from China. As a result, Chinese students contributed a major investment in France, and thereby helped bring in over 250 million Euros in 2017 alone. Platform: eCentime eCentime is a leading shopping guide in Europe primarily serving local Chinese consumers. It operates from multiple channels with 65,000 daily visitors, and a MAU index (monthly active user) of approximately 170,000.
  • 32. Awareness Consideration Purchase Service Loyalty CaseStudy Roma, Italy 8th Feb, 2019; Chinese Spring Festival Pinko is an Italian women's fashion brand. It was founded in the early 1980s by Pietro Negra and his wife Cristina Rubini. Now PINKO has a global presence with over 250 single brand and franchised stores, and around 1,500 wholesale outlets. Planning events for local Chinese residents 32 Background Figures Pinko launched a campaign, with visuals maintaining a Chinese motif, and invited overseas Chinese in Italy to attend the 2019 Spring/Summer Trend Show in Roma. In-Store, Chinese red packets (Hongbao’s) were prepared for guests. Pinko leveraged the overseas Chinese online community (Bravo Italy) and cross-border e-commerce platform (Valise) to promote this event among overseas Chinese. Platforms: WeChat — Bravo Italy Weibo — Valise Bravo Italy is a lifestyle guide providing updates on local events, tips and news for people living in or visiting Italy. Thus far, Bravo has gathered nearly 15k followers on its official WeChat accounts alone. Valise is a cross-border luxury e-commerce platform providing product recommendations and style tips to users.Pinko Invitation
  • 33. Market your brand to China through overseas Chinese residents 33
  • 34. CaseStudy Hosting exclusive shopping event for daigou Chicago, US 24th Apr 2016 Awareness Consideration Purchase Service Loyalty Background Result Chicago Fashion Outlet and Coach co- hosted an exclusive daigou after hours shopping event for Chinese customers from 7 to 9 pm. It attracted more than 100 daigou customers, with overseas Chinese residents comprising 99% of these customers. Shoppers lined up before 6 pm, and within 2 hours, more than 10 thousands products were sold. Platforms: Outlets and Brand CRM system Coach began as a family-run accessory shop in New York City in 1941 and is now a leading design house for modern luxuries. Coach is part of the Tapestry Group. 34
  • 35. Awareness Consideration Purchase Service Loyalty CaseStudy Adding daigou as distribution channel Australia Start from 2017 A2 Milk Company is an ASX 200 listed company that produces and sells milk and dairy products. The company commercializes its intellectual property to synthesize A1 protein-free milk yielding many popular products including premium infant formula. 35 Background Figures In June 2017, the Australian based A2 Milk Company generated profit of 9.6 million New Zealand dollars with an increase of 56% in revenue after factoring in daigou sales as one of its distribution channels. Its new product launch in China was also based on user feedback relayed by daigous. There are approximately 80,000 daigou in Australia who are professional buying agents. Daigou alone generate approximately $150 billion in sales globally. Platforms: WeChat — Daigou Netease Kaola — Cross-border e-commerce platform JD Global — Cross-border e-commerce platform
  • 36. CaseStudy Collaborating with Overseas Chinese KOLs Paris, France July 2019 Awareness Consideration Purchase Service Loyalty 36 How Background Estée Lauder launched new products in the European market in mid-2019, inviting one of the most influential Chinese KOLs living in Paris to be it’s “New Product European Experience Officer” and leveraged her influence to recruit more overseas Chinese residents to attend a private event they host in Lafayette. Platforms: KOL’s Weibo & WeChat + Offline event Estée Lauder is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products.
  • 37. Add WeChat, the Chinese super app, to your marketing strategy 37
  • 38. Focuson WeChat, the most favored platform by Chinese consumers living overseas Source: Tencent,Co-creating a smarter era of luxury, 2019; Fabernovel’s WeChat Study, WeChat- the shape of the connected China, 2019 1.1 Billion MAU in 2018 Launched in 2011 China’s largest social media platform WeChat is the core platform for Chinese people to connect with friends, family and school. Same applies to overseas Chinese residents Recently, WeChat has been developing more overseas functions for global markets, as well as working on functions that can segment more precisely to target overseas users. Why Wechat 38
  • 39. Background Printemps opened a WeChat service account in 2018. Through the WeChat account, Printemps provides, in Chinese, lists of stores in France with locations, lists of brands, privilege services, and latest promotion information for Chinese consumers. On its WeChat account, Printemps also works with Chinese KOLs living in Paris on photo shoots and content creation. Printemps is a French chain department store brand. The Printemps stores focus on beauty, lifestyle, fashion, accessories, and men's wear. Awareness Consideration Purchase Service Loyalty CaseStudy Paris, France Mar, 2018 39 Opening WeChat Official Account
  • 40. Awareness Consideration Purchase Service Loyalty Background How Chinese customers are among Rinascente’s top consumers with average spending per person reaching $286, and that figure continued to grow in the first half of 2018. Now Rina has added its concierge services via Wechat to better serve that growing customer demographic. “Have you seen a special accessory or hot item in a magazine? Just send a WeChat message and one of our personal shoppers will find the product for you in the Rinascente flagship store in Milan. If it’s available, you can then proceed with the purchase and the product will be sent directly to your home or wherever you prefer,” as offered by the company. Rinascente launched this service in September and, as of September 21, sales had already surpassed the monthly average with a record high 28,000 transactions. Customers' average expenditures had also risen to a higher level with more promotions and offers delivered to them. A collection of high-end stores selling Italian and other international brand fashion, related accessories, beauty, homeware, design and food. It operates nine stores in Italy, including one flagship store in Rome and one in Milan. Rinascente WeChat on-demand Service Poster CaseStudy Milan, Italy Sep, 2018 40 Launching WeChat on-demand Service
  • 41. Awareness Consideration Purchase Service Loyalty Background At the Pinko boutique on Via Roma street, store management dedicated a cell phone specifically for staff to communicate with local Chinese customers. Through chats, group chats, and moments updates, customers are able to receive the latest information on new arrivals, deals, and other promotions in both English and Chinese. The chat also functions as a Q&A and customer service channel when local Chinese customers inquire about a new product, or request customized services. Pinko is an Italian women's fashion brand. It was founded in the early 1980s by Pietro Negra and his wife Cristina Rubini. Now PINKO has a global presence with over 250 single brand and franchised stores, and around 1,500 wholesale outlets. CaseStudy Florence, Italy 2015 41 Leveraging WeChat as a customer service channel Pinko Sales account's Moments
  • 43. Definitions Overseas Chinese in this report refers to Chinese, of naturalized birth or descent who reside outside of the PRC for over 6 months out of a year, including local residents, new immigrants, work visa holders and international students. Expenses on un-necessities refers to the portion of disposable income used for purchasing leisure products and services such as fashion, beauty and luxuries, excluding any expenses for meeting basic needs like food, rent and utilities. “Daigou” describes the profile or behavior of an individual residing overseas that purchases goods and then personally transports said goods for persons residing in Mainland China, typically due to significant price differences across the border. High-net wealth family: A family with annual income of over $450,000. Middle class family: A family comprised of members that have achieved tertiary education and with professional qualifications Entertainment: Activities associated with seeking amusement and leisure. News & Information: Activities associated with receiving updates on recent and noteworthy events 43
  • 44. SMZDM Shopping Inspiration and recommendation platform in China Legend WeChat China’s multi-purpose messaging, social media, and service app Zhihu Chinese question-and-answer platform with all questions created and answered by users. Weibo Microblogging website and one of the biggest social media platforms in China Instagram Photo-sharing and social network service platform YouTube Video sharing website and platform Douyin / TikTok Social media app for creating, sharing, and watching short videos Bilibili China’s video sharing website themed around animation, comic, and games RED China’s social media and e-commerce platform for sharing shopping and lifestyle information AliPay Mobile and online payment platform owned by Alibaba Group WeChat Pay Mobile and online payment platform owned by Tencent Whatsapp Free messaging app with voice messaging, video and voice call, and file sharing features iMessenger Messaging app embedded within Apple’s operating system Email Refers to email communications on either mobile, tablet, or computer devices. Dealmoon Shopping and lifestyle advisory platform serving Chinese users in North America Amazon Global e-commerce platform Taobao China’s largest e-commerce platform Facebook Messenger Stand-alone messaging app and platform that enables communications with Facebook friends Facebook Social media and social networking service platform QQ China’s instant messaging software that also offers services including social games and music iFun Video Video streaming platform serving the overseas Chinese users in North America LinkedIn Business and employment-oriented service platform eCentime Shopping Inspiration platform serving the overseas Chinese users in France Red Scarf Shopping and service news platform serving the overseas Chinese users in U.K. Duonao Live Video Streaming platform serving the overseas Chinese users in Europe 44
  • 46. Since 2003, we’ve been pioneering new use cases and experiences, designing futures for both industry majors and startups, and creating code that works. We are a team of digital talents, at the innovation forefront. We are continually testing and implementing our ideas. We’re here to help you craft your future. We’re not only thinking differently, we’re doing differently. New Making FABER NOVEL 46
  • 47. SAN FRANCISCO --- PARIS --- LISBON --- SHANGHAI --- SINGAPORE --- Where Innovation Happens 47
  • 48. References In China RETAIL LUXURY FASHION DESIGNER BRANDS LIFESTYLE FASHION WATCH & JEWELRY TRAVEL & HOSPITALITY FOOD & BEVERAGE BEAUTY & FRAGRANCES FINANCIAL SERVICES 48
  • 49. Overview Of Our Service Range STRATEGY CREATIVE TECHNOLOGY China Innovation strategy •  Watch Reports •  Trends Books •  Benchmarks •  Startup scouting Vision & Up-Skilling •  Learning Expedition •  Digital Academy 360° Social Media Services •  Strategy & Planning •  Platforms Management •  Community Management •  KOL cooperation Studio & Content Production •  Campaigns Creative •  Campaign Operations •  Editorial Content Development •  Visual Content Development Media & Analytics •  Paid Media Display •  Social Advertising •  Data Tracking & Monitoring WeChat Mini Programs •  E-commerce •  CRM & Loyalty H5/MP for campaigns •  Campaigns Creative •  Campaign Operations •  Editorial Content Development •  Visual Content Development UI/UX •  Research •  Design 49
  • 50. RESEARCH Patrice NORDEY - APAC CEO Xiaolei GU - Deputy Director Wing HAN - Project Manager Jing XIN - Analyst INQUIRIES Global Fleur DROUET meet_paris@fabernovel.com China Celine CHEN meet_shanghai@fabernovel.com Singapore Sylvain JOANDEL meet_singapore@fabernovel.com United States Katherine WANG meet_sf@fabernovel.com WeChat Social Ads Playbook (Published in Sep, 2019) READ ALSO... WeChat, the shape of the connected China (Published in Jan, 2019 and Updated in Sep, 2019) COMING SOON... Weibo Social Ads Playbook ACCESS OUR FULL STUDIES ON WECHAT 50