Throughout 2018, the fast-moving consumer goods market has been sluggish. Most foreign-funded top 500 enterprises in China are cutting costs and downsizing operations. The market is adjusting and transforming, while the average salary increases.
Customers increasingly desire product innovations and imported products. Products are constantly being designed and innovated with the goal of creating “healthy, environmentally-friendly and customized” products. Cosmetics, pets and healthcare products are three popular markets whose product categories are becoming more diversified.
As the e-commerce industry develops, new e-commerce platforms constantly emerge. Several mature platforms have built new retail models which integrate online and offline channels, where more jobs will be created.
Consumer-Luxury & Retail (Jackey Sun)
Since the second half of 2016, the luxury goods market has been recovering. In 2018, Chinese customers’ interest in luxury goods and innovations made by luxury manufacturers have both contributed to the continual growth of the luxury market. In the Chinese market, luxury brands should gradually abandon the “sales-driven” model and build long-term relationships with their customers. In the overseas market, brands should think of ways to attract wealthy tourists to their stores.
Last year, luxury brands spent 40-50% of their total expenditures on digital marketing, compared to 35% in previous years. Expenditure on WeChat marketing accounts for 30-60% of the total digital marketing expenditure. The world’s top 40 luxury brands have created official WeChat public accounts, with 300,000 to 500,000 followers.