X-Insights

New Force of Consumption Power in China During and After Crisis

April, 2020,
by X Social Group - HO, Michele

The enforcement of compulsory home-quarantine measures in China is seen as a force encouraging brands to tap into eCommerce for maintaining their exposure and sales. According to a recent survey, The time spent online surged for 20% (WARC, Mar 2020). consumers in China spent the same amount of time browsing through various skincare- and beauty-related products as usual, which builds the confidence among many consumer goods companies to ramp up their investments in social, eCommerce and even O2O (McKinsey, Apr 2020).

To be successful in social commerce, brands need to demonstrate their digital capabilities through leveraging social platforms, such as Little Red Book (XHS) and WeChat, which are very popular among the Mainlanders. Skincare and cosmetic brands who offer personalized services like beauty consultants can facilitate online communications between beauty consultants and their consumers using WeChat or even livestreaming demonstrating the products and offering advice. This ensures a constant rapport between consumers and the brand which can be seen as a move to boost at-home consumption through social commerce.

 

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