FORCAST 1: Golden era for e-commerce LIVE STREAMING because of 5G is coming!
Taobao live streaming was launched in March 2016. After 4-year development, during 2019’s 11.11, Taobao live streaming led to more than 20 billion RMB revenue. Taobao even launched a stand-alone APP for live streaming in Feb 2019. This is certainly an important milestone.
According to recent data released by Taobao, the MAU and average time spent on Taobao live streaming keep increasing fast. Core users averagely spend nearly an hour every day. In 2019, Taobao live streaming generates more than 100 billion RMB revenue with more than 60% conversion. With 5G coming, there will be new forms of e-commerce live streaming.
Customers will have a much closer relationship with the brand/KOL. Many social media or e-commerce platforms also introduced e-commerce live streaming function, such as Douyin, RED/Xiaohongshu, Bilibili, Pingduoduo etc. I believe there is still great potential for brands to dig deeper, study and try new forms of marketing in 2020.
FORCAST 2: Beauty keeps rising
On Jan 1, 2020, the first WOW COLOR retail store opened in Guangzhou. WOWCOLOR is a multi-brand beauty store backed by MINISO, a Chinese variety chain store specializing in household and consumer goods. MINISO plans to open 300 WOW COLOR stores in 2020.
WOW COLOR is already in collaboration with more than 130 beauty brands (70% domestic and 30% international brands), targeting millennial and Gen Z aged 18 to 25. One example is Judydoll, a Chinese make up brand that used to be sold in MINISO. With only 4% of total SKU, Judydoll accounts for 40% of whole MINISO store’s revenue.
Actually, WOW COLOR is not the only one doing this. A competitor called THE COLORIST, belonging to KK group, has more than 6000 SKUs (mostly domestic brands). Most of the products are lower than 100 RMB.
According to CBNdata’s report about Chinese online beauty consumer, post-95s has become the main force and they love domestic beauty brands. During 11.11 in 2019, Chinese domestic cosmetics brand PERFECT DIARY was Top 1 in make-up category.
Unlike Sephora trying to provide high-end experience in China, WOW COLOR and THE COLORIST are more focused on young generation, providing lower price items to Xiachen market.
FORCAST 3: Sports industry is booming!
Do you know that in 2019, post-50s (Silvergeneration)’s consumption on sports/fitness related products grows the fastest?
According to the “2019 Small Sports Consumption Report” released by Tmall, Chinese are spending more and more on sports. Last year, the growth on Tmall was 40%. An interesting figure is the growth of post-50s generation is 53.3%, compared to post-90s’ 36.5%.
In terms of city tiers, customers in lower-tier cities keep spending more. Among Top 10 ranking cities, there are 4 lower-tier cities (3rd or lower), including Zunyi, Quanzhou and Urumchi ranking Top 3.
In addition, female customers are spending more than male. In 2019, 54 million customers purchased yoga equipment on Tmall.