IT Consultis

🚀 The evolution of WeChat SEARCH is transforming how brands can tap into the platform’s traffic to drive growth. Here’s what you need to know. 🔍 With WeChat now a comprehensive hub for content, services, and goods, its search capabilities can act as an "underground river", seamlessly connecting users across touchpoints – Official Accounts, Channels, Mini Programs, and more. Search does not have to become the biggest business pillar of WeChat (or other platforms like Douyin and Xiaohongshu), but it needs to play the role of an ecosystem AMPLIFIER. 💡 With over 800 million monthly active users in 2022, WeChat Search is evolving into a powerful tool for brands to capture real-time, high-intent traffic. 🔹 The game-changer is its CONTEXTUAL nature: Users are now searching while chatting, watching videos, browsing Official Accounts, or using Mini Programs. This creates opportunities for brands to reach potential customers without disrupting their digital journey — ensuring a more organic and engaging discovery process. 🔹 The integration of AI into search capabilities (i.e., re-editing answers based on content available on WeChat Encyclopedia, related Official Account articles, and more) is set to unlock even more PERSONALIZED content discovery and proactive interactions, driving new business opportunities (see image below). However, the decentralized nature of WeChat Search also means that businesses need to optimize across multiple touchpoints to ensure their content is visible and search-friendly. 🚀 Regardless, stay agile as WeChat will continue to develop its search features. While WeChat so far is still somewhat restrained in combining big models with search, or promoting AI answer generation capabilities, in the long run, this will be an INEVITABLE trend. 🔥 With over 1.3 billion monthly active users and such a vast ecosystem covering everything from communication, social networking, eCommerce, and entertainment, to payments..., WeChat is well-positioned to realize the individualized trend of information indexing and data management to CAPTURE and RETAIN user attention as much as possible. What do you think of the evolution of WeChat Search? Thank you 窄播 and 驿氪商户通 for the insightful sharing. #China #WeChat #Search #AI

🌍 Global beauty giants are STUMBLING as Chinese brands surge. Here are the lessons from local counterparts. 📉 Sephora’s recent LAYOFFS in China — impacting 10% of its workforce. Global beauty giants like Estée Lauder and Shiseido are also facing DECLINING sales, staffing cuts, and evolving market demands globally and in China. This highlights the intense competition from domestic beauty brands as (younger) consumers are increasingly turning to affordable, high-quality local products, which are now perceived as EQUAL/SUPERIOR to international names. Brands like L'Oréal have also been forced to raise prices, further driving consumers towards domestic alternatives. 🏆 So, what are Chinese brands doing RIGHT? 🔹 Leading local brands like Chicmax Cosmetics, Proya, and Florasis have mastered the art of TARGETED marketing on social platforms, leveraging live-streaming and viral content to drive reach and position themselves as affordable yet effective alternatives to global competitors. 🔹 Domestic beauty brands also excel at presenting their products in LIFESTYLE scenarios that create a sense of necessity and excitement, especially among China’s younger generations. What does this mean for global brands? It’s NOT the end of the road: 💡 This further stresses the importance of CRM LOCALIZATION. Capturing and having the right knowledge of the local consumers, their frequented channels, behaviors, and preferences, and utilizing those data effectively can be a game changer to win in China. What’s more, while local brands dominate mass-market categories, international brands still hold an advantage in PREMIUM skincare — a segment that continues to thrive despite market challenges. LVMH Perfumes & Cosmetics sector saw a 3% YoY revenue increase in H1 2024. Thank you Lisa N. for the insightful sharing on Jing Daily. Image source: Proya’s 2024 Echo Project | Always a Place for Emotions #China #Localization #ECommerce #Luxury #Beauty

🚨 Is Xiaohongshu leading a NEW era of social commerce? Xiaohongshu (RED), often referred to as “China’s Instagram”, is introducing new innovative models. What makes its approach really stand out is its growing INDEPENDENCE from conventional top live-streamers, focusing instead on expertise, emotional value, and lifestyle-driven content: 🛍️ Buyer E-Commerce: Xiaohongshu is turning its “expert users”, often trendsetting influencers or even celebrities, into fashion buyers/personal shoppers, positioning them as KNOWLEDGEABLE CURATORS rather than hard sellers with narrative-based live streams (e.g., brand storytelling, lifestyle tips...). This is particularly beneficial for premium and niche brands that want to reach audiences looking for more than just products. 💗 Emotional Value > Low Prices: By offering entertaining, authentic engagement, brands can differentiate themselves and maintain pricing integrity — a golden OPPORTUNITY to avoid the price wars dominating other platforms. 🌟 Lifestyle E-Commerce: Xiaohongshu has also introduced a new concept where products are placed in real-life scenarios before purchase. The platform is helping and driving businesses to rethink their product presentation, move beyond transactional relationships, and become lifestyle-driven brands. 🧠 This would require brands to have a SOLID understanding of what the consumers really want to see and experience throughout their journey - achievable via enhanced CRM utilization. Moreover, beyond influencer partnerships, this can also open doors for brands’ Key Opinion Sales (KOS) to build both brand awareness and lead generation through tailored experiences and personalized clienteling (online and in-store). 🚀 Overall, as Double 11 looms, Xiaohongshu’s approach to social commerce would present a unique mix of opportunities and challenges. What do you think about this shift? Thank you Yimin Wang for the insightful sharing on Dao Insights. Images source: 章小蕙 on Xiaohongshu #China #ECommerce #Xiaohongshu #SocialCommerce #Double11

🌐 Can Alibaba’s AI translation tool - Marco MT - OUTPERFORM giants like Google Translate, DeepL, and ChatGPT? Alibaba recently launched an updated version of Marco MT, positioning itself against the established players with: 🔹 Support for 15 languages - Arabic, Chinese, Dutch, English, French, German, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, Turkish and Ukrainian. 🔹 Tailored optimization for CROSS-BORDER COMMERCE by delivering CONTEXTUAL accuracy (handling industry-specific jargon, cultural nuances, and localized references), aiming to boost orders by up to 30%. 🚀 While its claims of outperforming established rivals warrant further testing, AI-powered systems are advancing at the speed of light, so it's just a matter of time before these tools slowly reach perfection. The marginal accuracy differences between tools are becoming less significant for the average end user. The real advantage lies in the specific USE CASES. For Alibaba, with its vast customer base and extensive data from various ventures, it’s reasonable to expect them to be well-positioned to fine-tune AI operations like Marco MT. 🌏 It’s also worth noting that in many regions, the dominance of the big tech players like GAFAM (Google, Amazon, Facebook, Apple, and Microsoft) isn’t as pronounced. The development of alternative tools can offer businesses in these regions a localized and effective solution to strengthen global business connections and cross-border collaboration, especially between GAFAM and non-GAFAM regions. 💡 If Marco MT is genuinely better at contextual translation, it could definitely offer significant value by enhancing the cross-border e-commerce experience for both MERCHANTS and CONSUMERS, particularly those operating on Alibaba’s platforms. 🌟 Thank you Abhishek G Bhaya for including me in his piece on TRT World diving into the recent news. Check out the full article for more info at: https://lnkd.in/es-52eZf Image source: AOL; NurPhoto via Getty Images #AI #Alibaba #MarcoMT #China #CrossBorderECommerce

✨ Clienteling in China: Xiaohongshu vs WeCom - Which should brands invest in? 🔹 WeCom has become the LEADING clienteling tool in China, enabling brands and Sales Associates to directly engage with WeChat users. It's become critical to many brands’ CRM strategies, driving personalized interactions and building long-term relationships. 🔹 Xiaohongshu, in its push to become a super-app, has also integrated in-app e-Commerce and clienteling functionalities. This has fueled the rise of Key Opinion Sales (KOS), who act as influential Sales Associates by posting content and engaging users in Notes or private 1-on-1 chats. So, what’s the difference between Xiaohongshu and WeCom in terms of clienteling approach? Which one should brands invest in? 🔍 The key lies in how users engage with brands and, of course, the ROI. Xiaohongshu shines in DISCOVERY, where users kickstart their brand journey through captivating interactions with brand Official Accounts and Key Opinion Sales (KOS), making it an essential platform for capturing TRAFFIC and forging impactful connections with potential customers. ️WeCom can come into play after a customer shows deeper interest (e.g., by visiting the store – O2O traffic) or makes a purchase. It can be the backbone of your CRM for nurturing long-term relationships (on WeChat) and capturing customer data. 💡 However, there's NO one-size-fits-all answer — each brand must evaluate its UNIQUE situation and assets to determine which investments will shape a MEANINGFUL customer journey. It is all about Return on Investment. Also keep in mind that these platforms will continue to evolve, bringing new opportunities to engage customers. How do you think brands should leverage Xiaohongshu and WeCom to engage with their audiences? 🎙️ Once again, thank you Bryce Whitwam and Ali Zein Kazmi for having me on their ShanghaiZhan Podcast episode. To watch the FULL podcast diving into digital transformation in China, find the link in the Comments below 👇 #WeCom #WeChat #Xiaohongshu #China #Clienteling

🔍 China's retail paradigm shift: What’s behind the STORE CLOSURES in Tier-1 cities? Recently, we’ve been seeing many stores closing on Shanghai’s iconic Anfu Road, once bustling with creative and youth-centric brands like Saturnbird (coffee) and Casa Casa (furniture). But this is NOT just about an economic downturn or a sign of collapse – it reflects a broader shift in China’s consumer landscape. Here’s why this is happening, as shared by Yaling Jiang: 📉 The end of the “HOT MONEY” era The 2010s were the golden years for venture-backed consumer brands in China. As venture capital has dried up, many must now focus on SUSTAINABLE growth & profitability and foster stronger connections with consumers to stay competitive. 💻 Better ROI for online channels China’s e-Commerce consumer experience is among the world’s most advanced, leading many to shift priority to digital sales and re-evaluate the purpose of physical stores. Physical stores are increasingly becoming immersive, experiential SHOWROOMS for online-first brands, where customers browse but often complete their purchases online. Anfu Road's recent closures reflect this trend, as some stores relocate to more COST-EFFECTIVE areas or shift entirely to digital platforms. 🛍️ The rise of NON-STANDARD retail models We’ve also been seeing malls and shopping districts in China transforming into multi-purpose experiential hubs (e.g., Hai550 in Shanghai, CyPARK in Chengdu). Beyond just shopping, consumers now visit malls to be entertained and inspired. Brands can leverage these non-standard spaces to create unique, memorable experiences that resonate with consumers' lifestyle aspirations. 🌟 Overall, as consumer confidence and preferences continue to shift, UNDERSTANDING local nuances and adapting to market changes will be crucial. Brands that make the right investment in the right (tailored, relevant) experiences for Chinese consumers – from online to offline - will capture attention and stay competitive. What do you think about this shift in China’s retail landscape? Thank you Yaling Jiang for the insightful sharing on her publication - Following the Yuan. Images: Hai550 in Shanghai (Source: Luxe.co). #China #Retail #ConsumerBehavior #ECommerce #CRM

✨ A lesson in luxury: Poor service costs 600,000 RMB    A Sales Associate from a top-tier luxury brand learned this the HARD way when a customer, who was initially dismissed based on her appearance, returned with 600,000 RMB (≈ $90,000) in cash later that day - only to walk out EMPTY-HANDED due to poor service. This sparked a viral buzz on Chinese social media.    💡 Takeaway: Let's not judge a book by its cover. Exceptional service is what truly sets brands apart and drives long-term loyalty.     Find the link to the FULL podcast in the comments👇    #China #Luxury #CustomerExperience #Clienteling 

What’s Galeries Lafayette’s secret to success in China? Uncover the EXCLUSIVE insights from the CEO - Nicolas Morineaux     🌟 Last December, Nicolas joined the department store chain with a mission to rejuvenate the brand from its 2013 model and transform it into what China shall offer today.    🔎 So, what makes Galeries Lafayette so special?    “Our department store model distinguishes us from shopping malls by focusing on DIRECT client engagement and delivering personalized shopping experiences,” Nicolas explains, especially with the help of WeCom/WeChat in collaboration with IT Consultis.    🔹 Data and Client Acquisition: Harnessing WeCom, Galeries Lafayette is now acquiring 100 new clients every week, engaging THOUSANDS of customers, and guiding them on personalized retention journeys.    This approach not only strengthens existing client relationships but also opens doors to new client acquisition!    🔹 Prospect Acquisition: WeCom clienteling also enhances their ability to capture prospects, representing future growth, and provides NEWFOUND REVENUE PREDICTABILITY.    Nicolas’ experience shows that nurturing 100 prospects typically leads to 20 potential transactions within three months max., representing a 20% INCREASE in future sales.    🔥 As China’s retail landscape transforms— with a surplus of in-city shopping malls and the government halting new mall licenses, reminiscent of the 'Retail Armageddon' seen in Japan in the 2000s and the US in the mid-2010s, “it’s a crisis without a playbook, and some store closures are inevitable”. This means intensifying competition for attracting brands and clients. As Nicolas puts it, “Ultimately, the primary focus for survival and success is CLIENT ENGAGEMENT.” 💬 For more secret recipes to win in China’s competitive landscape from Nicolas and other market experts, GRAB A COPY of ITC Insights Vol.1 whitepaper. DM me or download here: https://lnkd.in/eyw-a3hv #GaleriesLafayette #China #WeCom #Clienteling #CRM Image source: Groupe Galeries Lafayette

🔑 It’s all about ROI: Digital transformation initiatives for any business need to deliver REASONABLE returns on investment.    🎙️ I recently had the opportunity to join a ShanghaiZhan Podcast episode, hosted by two Shanghai legends, Bryce Whitwam and Ali Zein Kazmi, where we dived into the topic of digital transformation in China with CRM and CLIENTELING.    I’ve talked a lot about the nuances of clienteling for LUXURY brands and how it can enhance customer experiences. Ali posed an interesting question: Does clienteling work for FMCG businesses with lower-priced products as well?    💡 First of all, what is clienteling?  At its core, clienteling focuses on managing personalized communications with customers to deliver the right message at the right time and build relationships with them. This approach thrives in the luxury sector, where expectations for service quality and connection are HIGH.    💰 In contrast, for FMCG, the expectations are not as demanding. The returns on investment in clienteling are often not high enough to JUSTIFY the effort. It doesn’t make sense to throw in 10 extra sales associates to sell a few more beers or toothpastes...    Customers primarily want to know about any new products coming and how they work, and marketing automation can suffice in many cases. Here, AI can play a pivotal role in delivering timely information efficiently.    🔁 However, there are always EXCEPTIONS. Even at lower price points, some cases may require more in-depth product education to customers to drive sales. This is where clienteling can make sense and deliver a reasonable ROI, especially in driving repurchases.    Thank you, Bryce and Ali from Shanghai Zhan for having me on this insightful podcast.    #ShanghaiZhan #DigitalTransformation #CRM #Clienteling #ROI 

💡 The truth is, the winning recipe is NOT THE SAME for every company – even for those in the same sector. But they do offer interesting lessons to consider. Discover Moschino's digital success in China: Exclusive Insights from the E-Commerce & CRM Manager, APAC & China - Chelsea Ma 👇    🌐 Reflecting on her journey managing various markets in APAC for Moschino, Chelsea notes that China stands out distinctly compared to other markets, primarily due to its unique social and digital ecosystem. Unlike other regions, China heavily relies on the WeChat ecosystem for various activities.    🎯 The WeChat ecosystem offers a level of engagement that MAY EVEN SURPASS global channels like WhatsApp, email, and SMS marketing, enabling brands to connect with users by integrating multiple functions into one platform.    This has revolutionized Moschino’s customer interactions — allowing for DIRECT, PERSONALIZED, and CONSISTENT communication via WeCom and WeChat Official Accounts. Additionally, this strategy has enabled the brand to build valuable first-party data assets for future targeting initiatives.    🔄 Moschino also prioritizes building a LOYALTY Mini Program over traditional e-Commerce approaches (that many luxury brands usually go for), reflecting a broader CRM strategy aimed at understanding and nurturing existing customer relationships. The results? OVER 80% of their sales now come from loyalty members — a powerful testament to the program’s success.    💬 For more secret recipes to win in China’s competitive landscape from Chelsea and other market experts, GRAB A COPY of ITC Insights Vol.1 whitepaper. DM me or download it here: https://lnkd.in/eyw-a3hv    #Moschino #China #CRM #WeChat #WeCom #Clienteling