The following is a preview of Jing Daily and Spring Studios’ partnership report “Bridging cultures, shaping markets: The influence of overseas Chinese on the global luxury landscape.” Get your copy today on our Reports page. The overseas Chinese demographic avidly engages with both Western and Chinese social media platforms, aspiring to the luxurious lifestyles showcased across these platforms. They move beyond traditional brand communications like newsletters and websites, seeking inspiration from Key Opinion Leaders (KOLs) on both Western platforms like Instagram and Chinese platforms like Xiaohongshu (RED). Brown Lee, Managing Partner at Kollective Influence, explains: “The way overseas Chinese and consumers in China gather information varies, yet there are intersections. Overseas Chinese are likely to broaden their sources, including YouTube, Instagram, and brand newsletters as well as RED, leading to a more rounded collection of insights. Searching for ‘life abroad’ on Google might not yield information tailored to the Chinese perspective, making RED an invaluable resource. It acts much like a life bible, offering extensive insights on various aspects of overseas life.” However, brands often make the mistake of engaging this audience with generic messaging solely through Western media channels. The influence of Chinese social media RED (Xiaohongshu) saw around 1.67 million visits from the US and 1.71 million from Malaysia in March 2024, according to Similarweb. This platform has become a crucial tool for overseas Chinese to find relatable content and reviews. Overseas Chinese influencers have a significant impact on the diaspora due to the close-knit nature of these communities. Influencers, or KOLs, play a critical role in shaping luxury market perceptions and preferences among the diaspora, particularly for niche brands and emerging trends. Performance data from LTK, a digital marketing platform, indicates that Chinese creators in the US have an average order value (AOV) 1.3 times higher than their US peers, with most purchases made by Chinese residents in the US, and a smaller percentage from Chinese in the UK and EU. This highlights the purchasing power and influence of overseas Chinese. The diaspora finds content from Asian KOLs living abroad more relatable, especially when it reflects shared cultural experiences or styling choices. Kate Li, a senior planner at a marketing agency in London, values content that mirrors her experiences as an overseas Chinese. She appreciates the inclusion of cultural nuances and practical information such as clothing sizes suitable for Asian body types, tips on buying property as a foreigner, and where to find authentic Asian cuisine. Faenghe Li, managing director of a private equity firm in the US, prefers recommendations from Asian content creators on platforms like RED, as they align more closely with his preferences compared to Western content creators. Notable influencers and their impact Ninido Dong, a fashion influencer who moved from China to the US ten years ago, has a diverse following across platforms. Her YouTube and Instagram audiences primarily comprise overseas Chinese in the US and Canada, while her followers on RED are split between mainland China and international locations. Dong’s content, which includes shopping guides and styling advice, resonates deeply with her audience due to its focus on Asian aesthetics and her use of her native Chinese language. Her followers, who are typically well-educated and lead quality lifestyles, appreciate detailed, long-form video content and have significant purchasing power. Authenticity and transparency are highly valued in content. Several interviewees expressed skepticism towards content that seems inauthentic or biased due to undisclosed brand collaborations. Perceived genuineness significantly influences credibility. “RED is something I always look at, but I don’t consider it my first source of information. For cosmetics, I tend to trust the feedback on RED more because of skin type and ethnicity. I believe there’s likely to be more common experiences. But in terms of aesthetics, I feel that RED might get overly hyped about certain products or brands, which could easily sway my judgment,” says Catherine Shi, a retail & CRM coordinator in the US. Shaping tastes in the domestic market Overseas Asian KOL influencers hold a unique position, influencing both overseas Chinese and consumers in China. Their content, distributed on both Western and Chinese platforms, appeals to a broad audience, including Chinese in the mainland, especially those who have studied or lived abroad. These viewers often draw inspiration from Western platforms and may also be Key Opinion Consumers (KOCs) or KOLs on Chinese social media. For brands eyeing entry into the Chinese market, collaborating with overseas KOLs is an effective strategy to build awareness and establish trust among target audiences. Brown Lee suggests, “I believe focusing on the overseas Chinese community is valuable and meaningful for these brands, rather than just pouring all the money into China.” The substantial economic and social contributions of overseas Chinese in these locations highlight their importance as a key demographic for luxury brands. Download our full report to learn what this means for brands in 2024.
