COVID-19
How Chinese brands are using digitalisation to adapt to coronavirus conditions
By Elena Gatti, managing director of Azoya Europe A
s the coronavirus continues to spread around the world,
retailers are making contingency plans for a scenario in which foot traffic at their off line retail stores falls to zero.
Halfway around the world in China, such a scenario is already in play. Most shopping malls and stores in China are closed, except for a handful of grocery store and convenience store chains deemed to supply basic necessities.
But its retailers are bouncing back, using online marketing to keep in touch with their customers. China’s internet ecosystem is far more integrated with off line channels and content marketing is more synchronized with e-commerce than it is in the West. We take a look at some of the unique tactics Chinese brands are using and how Western players can learn from them.
Unknown skincare brand CEO goes on Taobao Livestreaming to save his business A camellia oil skincare brand, Lin Qingxuan, was in dire straits at the beginning of the coronavirus crisis in late January. Before the crisis,
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approximately 75 per cent of its sales were derived from off line retail stores and distributors. Those sales dropped by 95 per cent in just a few short weeks, putting the company in serious financial trouble.
To save his business, CEO Laichun Sun personally went on Taobao Livestreaming to appeal to customers on Valentines Day in a 2.5 hour live video session titled, “214 Wuhan, My Lover”. In a livestreaming session, the brand usually has employees or inf luencers present the brand story and products in a live video session in which viewers can directly ask questions about the products and interact with the host.
But the company had a limited budget and couldn’t afford top inf luencers, and its own staff had no experience with the practice of livestreaming either. So the CEO and founder took it upon himself to send a heartfelt message to the public, giving them words of encouragement before going on to market his products.
When he moved on to his products, he focused a lot on the ingredients and science behind them. The brand’s key selling point is that its products can heal red, sore,
and cracked skin from the inside out. This is important because Chinese people often search for products to solve certain issues and do a great deal of research on skincare products, partly to avoid harmful chemicals, which are a common occurrence in the market.
The CEO then donated 1.38 million RMB (£152,904) worth of skincare products to the frontline medical workers in Wuhan, who suffered skin problems from having to wear protective suits, masks, and goggles all day.
On that day the brand was able to attract over 60,000 viewers on Valentines Day, hitting 400,000 RMB in sales (£44,320), or 45 per cent more than the same period a year ago. Customers continued to make purchases in the days after, and now direct eCommerce sales account for 90 per cent of the company’s sales. Amongst China’s retail industry, the company has become a textbook example of how brands should handle themselves during the coronavirus crisis.
Anta leverages employees and distributors in social commerce marketing Chinese brand Anta is one of the largest sportswear brands
Direct Commerce |
www.directcommercemagazine.com
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