The document summarizes retail trends among Chinese youth in 2010. Key trends included: (1) Social media sites that allowed youth to see others' opinions on products and make shopping social; (2) New experiential retail environments like kids hair salons and playgrounds that sparked children's imaginations; and (3) Chinese brands gaining prominence and launching new concept stores both domestically and abroad to target Chinese consumers. Flash sales, mobile payments, and bringing online features to physical stores were also trends seen in 2010.

1. RETAIL
2010!
CHINESE
TRENDS
YOUTH
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2. Changing
Priorities
In 2008, we did a survey to
uncover the important factors
youth considered when buying in
a store for Women’s Wear Daily
and updated the results for
Advertising Age China this year.
We found that youth expected
more – and were willing to do less
than before.
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3. Welcome to the retail round-up, our top 10 picks of new retail
changes affecting youth this year.
Young people in China are being bombarded with new ways to shop, new things to buy and new ways to buy them. !
TOP 10:2010
1.Socializing Shopping Online
2.Imagination Station
3.Everyday Luxury
4.Chinese Brands Switch On
5.Buy Now!
6.In-Store Advantage
7.Wallet Free Lifestyle
8.China-Vision
9.Touch-and-Feel Retail
10.Offline is On
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4. Glamour-sales.com allows users to see the ages and genders of other shoppers
trend #1: Socializing
Shopping Online
Chinese youth are expert online shoppers and they value others’ opinions.
New sites marry the two concepts.
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5. “What do
others
think?”
B2B site Holaba is also B2C allowing users
to compare product and brand
recommendations. Mega-SNS Kaixin also
introduced functionality allowing users to
vote on styles, looks and brands this year.
Glamour-Sales allows shoppers to see
ages and genders of people who have
purchased specific products. The site,
focusing on deep discounts to up-market
branded products, incents its audience to
act quickly by taking advantage of flash
buy promotions and frequently rotating its
product line-up.
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6. Luxury
Kids
trend #2: Imagination Station
As we saw the focus of Chinese childhoods shifting to more fun
times ahead, 2010 offered some great new environments for kids to
flex their imagination. Yes, many of these trends had older
international cousins but this was their first incarnation in the
mainland.
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7. Parents now have the option of taking their tots to a
kids-only hair salon, offering high class service to the
underage crowd. One such salon is Zusso Kids at
Isetan Meilongzhen Plaza, Shanghai. Exclusively for
kids, mini BMW and Mercedes-Benz cars are
transformed into playful barber chairs. Cartoons, such
as Pleasant Goat, Teletubbies baby, Doraemon and
SpongeBob, play on individual TVs – or clients can
bring in their own DVDs. When the stylist completes the
cut, the pint-sized customer would be rewarded with a
bottle of Yakult (a popular Japanese yogurt drink).
Check out our former post here.
Ai Time in Nanjing is 5 floors of fun, Packard Golf World hits 4-13 year olds
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8. simple luxury- china goes
bridge
Kit Kat offers new sophisticated flavors in 2010
trend #3: Everyday Luxury
Luxury in China is being redefined. It is no longer just about big
brands with even bigger price tags. Youth are looking at ways to
enjoy the simple things in life and brands are responding by creating
products that are basic but couple quality and design.
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9. Moleskin took a new interest in the mainland this
year. Their previous Chinese-language presence
online was managed by users (Moleskiner.net)
but in 2010, Moleskin.cn was launched and a
new exhibit “Detour” hit Shanghai displaying
Moleskin notebooks of famous creatives including
author/race car driver Han Han, director Jia
Zhangke and fashion designer Jenny Ji.
Hot on Moleskin’s heels is Jiu Kou Shan. This
Shanghai brand’s 2010 series of notebooks titled
“Life Documents” focus less on design and more
on interests. Each book has a layout specific to
how the user might want to record information
related to that particular passion.
Drinks are another example of simple luxuries
introduced in 2010. While Evian presented roller
skating babies to Chinese audiences, Chinese
brands picked up on the cue that drinks needed a
“bridge” category. 2010 popped out a myriad of
new options that are in between designer brands
Evian and Vitamin Water and basic drinks. Power
One, Bamboo Charcoal Water, Rosbacher and
ALKAOUA offer design and functional benefits at
a lower price point.
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10. Li Ning headed to the US with a controversial TV campaign
trend #4: Chinese Brands
Switch On
Chinese brands took confident steps this year – from savvy
marketing at home to launching new concept brands to packing their
bags and heading to new territories.
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11. This year, iconic Chinese bicycle brand C-Forever was re-launched
by a Chinese company! Apparently taking notes from the French and
American resuscitation of iconic sports brands Huili and Feiyue, C-
Forever redesigned classic bikes with popping colors and marketed
them in an arty way.
Shanghai Vive, Jahwa’s luxury skin care brand opened shop (albeit a
very hard to find one) in Shanghai.
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12. Group purchase + flash buy
trend #5: Buy Now!
To incite customers to make quick purchase decisions, retailers
offered flash buy and group purchase options.
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13. Check out the McDonald's Sec-kill ad here.
Sec-kill (aka flash buy) has been a hot topic this year, starting with KFC’s “sec-kill gate” where
customers were denied the offer when demand overwhelmed supply creating a PR mess for
KFC. Other brands including Taobao and McDonald’s have used the promotion successfully –
careful to be able to honor the promotion and not anger customers.
Group purchases this year evolved to marry sec-kill and a group. Sellers will sell items only if
a certain number of people respond to the offer.
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14. Customers line up outside of Edison’s Shanghai store
trend #6: In-Store Advantage
Brick and mortar stores recognize the threat that online shopping
poses in China – cheap, easy and from one’s home is hard to beat.
In 2010, retailers made moves to attract shoppers back to stores.
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15. 353 Plaza has opted to target young shoppers by.
creating the 353 Club, which offers a small library of new magazines, a snack bar,
activities like movie showings and gifts to its members.
On the other side of Shanghai, Joycity mall hopes to lure customers with a Ferris wheel
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16. Mobile Wallet system at Starbucks
trend #7: Wallet-Free Lifestyle
Beyond cash or credit, 2010 brought some future-fantastic payment
options to Chinese consumers.
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17. Mobile Wallet is a mobile-enabled application and payment
service that enables its network of subscribers to make
convenient payments to any designated affiliate (including
Mobile Wallet’s appointed network of merchants) to accept
MW points as mobile-based payment gateway.
Pay by Finger is another new way of paying for things without
a wallet. To set up the system, representatives will come to
homes or customers can go into a bank to sign up. Attached to
users’ bank accounts, consumers simply make an electronic
imprint of their fingers to buy items. To date, there have been 7
banks and over 250 shops using the pay-by-finger payment
system.
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18. Shanghai welcomed Hermès new concept brand Shang Xia specifically for the Chinese market
trend #8: China-Vision
In marketing, products and brands, Chinese were targeted like never
before.
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19. At a lower price point and with well-designed basic
Chinese-inspired looks, Hermès Shang Xia (‘topsy-
turvy’ in Mandarin) launched in Shanghai. The
opening collection included fashion, shoes, home
furnishings and dishes – banking on China’s many
gifting occasions as well as consumers interested in
quality and design at a bridge price point.
Levi’s introduced its own ‘made for Asia’ brand
dENIZEN this summer. Apple entered Shanghai with
Shanghai-inspired iPhone and iPad cases and
employees shed traditional black shirts for red with
the slogan “Designed in California, Made for China” in
Mandarin which was also reflected in product labels.
Gap launched with Western and Chinese models and
1969 jeans specifically for Chinese (although the
sizes were not small enough for one staffer here) and
Uniqlo presented a China-designed T-shirt series.
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20. Media Markt entered Shanghai with selection
trend #9: Touch-and-Feel
Retail
The old-school retail rules in China told customers “don’t touch or try
it if you don’t want to buy it.” However, new shops embraced
experiential retail.
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21. Customer experience is becoming a vital
part of the buying process. Besides
consumer electronics retailers, China
Southern Airlines allowed the public to
experience first-class seats.
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22. Meters/Bonwe tag directs customers online
trend #10: Offline is On
This year, Taobao experimented with an offline shop but we also
noticed some offline retailers bringing the Web into their brick and
mortar shops.
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23. In addition to Meters/Bonwe’s Web-friendly
tagging system, Gap launched its site the same
day as its shop in Hong Kong Plaza.
Traditionally not thought of as online purchases,
grocery sites like Yi Hao Dian launched as did
Sam’s Club.
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