COVID-19
This article was submitted prior to the closure of non- essential retail stores and lockdowns in the UK and other countries in Europe.
Key Takeaways
Lai Qingquan talks about his skincare products on Taobao Livestreaming. Source: Official Taobao app
in the country, and may be known amongst Western audiences for hiring famed NBA basketball player Klay Thompson as a key brand spokesman.
But because of the coronavirus, 60 per cent of Anta’s retail stores have been shut, and now the brand is investing the bulk of its efforts in online marketing. It has used its brand spokespeople and inf luencers to launch workout videos online, encouraging self-quarantined customers to work out at home as gyms stay closed.
What’s more is that the company is using 30,000 of its employees and distributor partners to engage in an integrated social commerce campaign, incentivising them with commissions if they can sell products to friends and family. The logic
is that instead of paying idle labour to sit at home and do nothing, the company can utilise them to drive sales through word of mouth.
The way it works is that each person is given individualised WeChat QR codes that customers can scan to make a purchase. The QR codes are then traced so that Anta knows which employees deserve commissions.
Such social commerce campaigns are increasingly common in China, where traffic acquisition costs have risen and advertising ROI remains comparatively low by Western standards. Not only can brands send content directly to consumers on WeChat, but they can also set up mini-stores on the app, making it easier to convert users into buying customers.
www.directcommercemagazine.com | Direct Commerce
1. China’s integrated digital ecosystem encourages brands to come up with innovative ways to reach customers. New tactics include livestreaming e-commerce and social commerce campaigns on WeChat.
2. The CEO of a Chinese camellia oil skincare brand engaged in a thoughtful livestreaming session on Valentine’s Day to encourage customers to stay strong amidst the coronavirus crisis. He donated a large number of products to medical workers in Wuhan, and both traffic and sales skyrocketed.
3. Anta, a large sportswear brand in China, incentivised idle workers with commissions on WeChat to help drive sales. This has helped keep the brand af loat as 60 per cent of its retail stores throughout China remain closed.
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