The first session of the webinar “Entering China through Digital” organized by the China-Italy Chamber of Commerce (CICC) together with our Quality Council (QC) was held on June 22nd.
Thanks to our experts, the webinar introduced digital China and its latest trends as a first step to planning a successful entry strategy into China in 2022.
“China is a core market for growth for many companies, especially in the consumer goods sector”, stressed Josephine Wong, Vice President of Permira Advisers.
Chinese consumers account for a large share of global consumption in services and consumer categories, thus making China a core market for companies operating in the consumer goods sector. Chinese consumers’ income is also growing fast; the country is expected to have a higher number of middle-income households than other countries in the next decade.
Key challenges in entering the Chinese market include the language and cultural barriers, finding the right distribution channels, understanding the legal requirements for foreign companies, setting up local partnerships and gaining the trust and loyalty of local consumers in a highly competitive market.
The webinar opened with a speech delivered by Claudio Grillenzoni, Retail Director of Florentia Village and CICC Board Member, who gave a brief introduction to the CICC Quality Council. A council created by the China-Italy Chamber of Commerce on Luxury Living, Fashion, Luxury and Premium Goods, Design and Lifestyle, with the aim to support Italian companies in their business in China and help them to tackle China and raise awareness about this market speed, magnitude, and complexity.
Andrea Fenn, co-CEO Adiacent China, gave an introduction to China and the peculiarities that make it the world's biggest digital market. Through real-life examples, Mr Fenn showed the enormous potential of developing business opportunities in China for those who can truly understand how China works.
China is the place where the adoption of internet solutions and behaviours really soared and spread the fastest; digital has become such a fundamental part of everyday life that Chinese people tend to trust online recommendations more than those from physical people. A recent survey among the younger generations also revealed that the most popular dream jobs are video bloggers and influencers, especially since the launch of the social media platform Tiktok/Douyin. Even businesses have recognized the importance of communication through digital and social media; it’s very common for Chinese businesses to publish livestreams online and organize collabs with KOL in order to promote their products.
"China’s economy is entering a new stage, where the breakneck speed of previous decades is replaced with a steadier pace. Double-digit GDP growth that was once the norm has since cooled. The focus is now on the quality of economic growth over increasing numbers quantitatively.
The Chinese consumer is evolving, spending less but more thoughtfully focusing on something new. Market evolution, customer experience and abundance of products allowed the Chinese customers to evolve their behaviours. As the consumer market enters a new stage, organizations need a new approach, one that meets the multi-faceted demands of increasingly sophisticated consumers."
— Antonio Colaci Vintani,
Director of Digital Unit Value Partners Hong Kong
The pandemic seems to have made Chinese consumers living in high-tier cities more restrained and pragmatic, shifting their priorities to sources of long-term happiness like healthcare, tourism, children’s education and wealth management. On the other hand, consumers in low-tier cities are becoming wealthier, prompting the need to spend in sources of personal instant gratification like online shopping, entertainment, and food.
The customer values also seem to be leaning more towards individualism and environmental-friendly products.
DON’T MISS THE NEXT SESSION OF THE QC SERIES “ENTERING CHINA THROUGH DIGITAL”.
Session two: China digital business | How to plan a China entry strategy through digital in 2022, on June 29th, at 4:00 pm (Beijing time).
Click here to register.
Know more about QC
Quality Council (QC) is currently composed of a team of professionals and entrepreneurs who directly operate in luxury goods, fashion, digital, interior design. Shanghai office of the Chamber welcomes any proposal or request of information pertaining Quality Council at the email address email@example.com.