Watch Market in China
Today watch market in China is expanding rapidly and becoming as a worldwide leader in luxury watch consumption. First of all, the difference of prices in domestic and overseas markets for imported high-end brands has a great difference, that made consumers to purchase watches abroad. Secondly due to institutional reforms from 2012, it has affected consumers since they started to purchase watches as gifts.
However, it has been noticed that Chinese luxury consumers have already collected all famous high-end brands and in this sense, nowadays they are more curious about new brands that are reflecting new fashionable designs. In addition, Chinese fashionistas are more willing to find watches that will express their uniqueness.
According to Euromonitor International, in 2016 overall sales of watches in China rose by 2.1% up to RMB65.8 billion. In addition, it is expected that the market size by 2020 will grow up to RMB79.4 billion.
Watches as An Expression of Uniqueness
Nowadays Chinese mainland consumers have developed their own taste and became more demanding in terms of watches design. For many Chinese consumers, watches are something more than accessory, it is valued as something that is expressing their unique personality and their status, which is in Chinese society is very important. For Chinese watches consumers, the meaning of “good watches” is not always coming in align with “very expensive” or “famous model”.
The main factor for Chinese consumers that is luring them to purchase watches is a distinctive and trendy design. According to HKTDC survey, it was shown that 66 % of consumers in China are being more attracted by the unique design and style of watches.
Trendy & Outstanding Design Matters
Nowadays Chinese mainland consumers have developed their own taste and became moredemanding in terms of watches design. Watches nowadays in China are valued as specialist consumer goods that may offer trendy and fashionable design in addition with brand value. There are three main categories for watches such as work (business) watches, casual fashionable watches and sports watches.
Basically, it is vital to understand that Chinese consumers usually as for business watches they wear them work or to attend important meetings, however they might also will wear them for leisure activities. when it comes for business watches, especially for male consumers they became as a great expression of their status and as a symbol of high-income. While the other half of Chinese consumers responded that “wearing a watch would give an impression of maturity, stability and punctuality to others”, and also “wearing a watch would give a better image on business occasions”
Smart watches are also quite demanded by Chinese consumers, since they offer built-in intelligent systems and involve various functions such as voice calls, receiving and sending messages and emails, and playing music via Bluetooth.
You might have a question how about casual fashionable watches? Here is the answer…
Fashionable designed watches are highly demanded by Chinese female and male consumers. Since for Chinese it is more important to choose unique designed watches or watches that have a great story to tell about and share it with others. According to HKTDC Research, more than 50% of consumers in China are willing to wear watches “to bring out one’s personal taste and image”. But that’s not the only point, trendy watches are usually used for ornamental purposes like necklaces and bracelets. They are usually might be worn by female Chinese consumers to match business outfits.
The main factor for Chinese consumers that is luring them to purchase watches is an outstanding and trendy design. According to HKTDC survey, it was shown that 66 % of consumers in China are being more attracted by the unique design and style of watches.
In this sense, it is vital to stress out that when it comes to gender purchasing decision making, female Chinese consumers are more interested and concerned about style and design, while male Chinese consumers are more willing to go for brands.
CHINESE MARKET: TIPS HOW TO MARKET YOUR WATCH BRAND
WeChat is a great tool
WeChat is a great tool for Chinese market entry, it’s a strong Launchpad for quality content it has hit 1 billion hit 1 billion monthly active daily users in March 2018. It’s China’s number one multi-purpose social platform, it means that having a presence here and engaging with your target is very important. You can create an official account for communications, build a following and push notifications to followers. It also allows for ease of payment via their Wallet service as well as host of other functions from gaming, to e-commerce stores, to location services, dating & even taxi hailing. WeChat packs a punch for any new business in China.
The best piece of advice for WeChat is simply, keep it social. This is a conversational platform and the Chinese expect (more so than we do in the west) to have personal interactions with brands on platforms such as WeChat, businesses are seen more as individuals so ensure you closely engage with users.
Little Red book
Little Red Book(XiaoHongShu)is a new social media platform in China, which grows rapidly in China these days. This app has already more than 60 million registered users and half-year sales of 700 million yuan (around $109 million) as of the end of September. Little Red Book reflects a great combination of similar tools of Tmall and Weibo platforms, which makes this app a generator for word-of-mouth marketing. The whole content is created by users which makes this app more transparent. Basically, the Little Red Book app provides three main features for consumers such as trust, community, and convenience. In this sense, Little red Book is a great platform that has lots of advantages for both consumers and suppliers.
All in all, the app is a great and reliable option, since it has an E-Commerce platform for users to purchase products in the same app directly from the Official Brand online store on Little Red Book. Due to the fact that Chinese consumers are very selective when it comes to quality and authenticity of the Brand. In this sense users do not need to worry about authenticity.
UTILIZE WEIBO (CHINA’S TWITTER)
Weibo is China’s most open social network with uses able to see posts from anyone. It is a microblogging service like Twitter. It was thought that it was on the edge of failure a number of years ago but with Alibaba’s backing this nifty platform looks set to be a big player in ‘social commerce’ when it comes to supporting online sales via social media marketing efforts. A big trend to watch.
Many online influencers and celebrities are active on Weibo with its open news feed and active, engaged communities. Quality content is the bedrock of any social media campaign, with external links, images and text ‘call to action’ a priority if you want to heighten Chinese consumer engagement.
KEY OPINION LEADERS & INFLUENCERS ARE POWERFUL
Key opinion leaders (KOLs) are established online figures that have gathered large followings around themselves. They are highly influential and can be recruited to represent a business or brand. Different KOLs allow you to tap into specific communities and demographics, providing quality targeted exposure.
The best approach for KOLs is to use a number simultaneously on different platforms to post about the brand, this has an ‘echo chamber’ effect and supports the legitimacy of the brand if numerous figures are posting.
Ensure posts and comments by KOLs are closely monitored, merely posting is not enough, you need to fuel conversation and respond to queries. KOLs do not act as a customer service representative, you a simply using their service to reach their community and influence them with via their reputation.
The revolution of online to offline knows a certain success. The space between online gateway and real and physical store offline seems to be tighter than ever. If you are a luxury watch brand then you have to keep in mind that in-store experience for the customer is really important.
We will illustrate the O2O system through a relevant example with TAG Heuer brand: the Swiss watchmaker had the idea to create a QR code called “treasure hunt” for visitors; the idea was to play on an interactive approach. The QR code was actually a guideline at the exhibition, after users arrived at the exhibition, they would receive keys. Some of those keys were special, because they were in flashdrive format where you could learn more about the brand.
STRATEGY SHOULD BE FOCUSED ON CHINESE KEYWORDS
The best method is not to attract an audience to you, rather you go to them. There is a wealth of information available about Chinese consumers; from searching information, social media profiles and data listings.
The way to generate the most qualified traffic is to focus on keywords, prospects are already seeking relevant information to your offering, you simply need to ensue you are highly visible to them, the more qualified the traffic is the better the conversion.
PRESENCE ON CHINESE E-COMMERCE PLATFORMS
To enter e-commerce market of China International brands must learn policies of following digital platforms.
TMALL holds the biggest market share in e-commerce market of China at 57%. It mainly focuses on premium brands. This characteristic makes TMALL most expensive e-commerce marketplace in China. It provides an opportunity to International brands to open exclusive online stores and directly sell products to Chinese consumers without being physically present in China.
TMALL has invitation-only policy where only qualified international brands can either be invited to join or can apply through a local marketing agency. For more information on how to sell International products through TMALL, please contact local digital marketing agency.
JD is China’s largest online direct sales company. It relatively has less market share than TMALL.com. International companies can open individual online stores on JD.com and brands are permitted to import food, beverages, apparel and shoes from overseas. JD’s cross-border service enables suppliers to sell directly to Chinese consumers without a local presence.
FIND EXPERTS OF THE BEAUTY CHINESE MARKET
You might will need to get a quality guide, which is vital in order to be able navigating the Chinese market. We at GMA are an international team of 60 marketers, copywriters, publishers and ad experts. We work in the plenty of fields beginning from branding, ad strategy to lead generation. We are willing to be our clients’ team in China and build strong and long term, serious relationships based on results and the achievement of clear KPI.
FINDING A TRUST WORTHY LOCAL AGENCY WILL ALLOW YOU TO AVOID TO WASTE YOUR BUDGET