In case you missed them the first time around, here are some of Jing Daily’s top posts for the week of January 13-17, 2014.
Founded in 2007, P1 started out as the exclusive, invitation-only Facebook of China’s young, affluent, and fashion-forward. However, this isn’t a network your mom can join—unless she’s an exceptionally hip Chinese parent. That’s because the most interesting aspect of the site is that trendsetters can gain an exclusive invitation to log on if they’re spotted by a member of its army of street style photographers roaming the hippest neighborhoods of China’s major cities. Four years and six million photos later, the site began utilizing photo-recognition technology to track fashion trends in China’s major cities, which it hopes will revolutionize the use of big data in the fashion world.
“So what do you think about the brand?” I asked the extravagantly dressed Chinese girl I had just been introduced to at one of Shanghai’s Fashion Week parties. “No idea,” she replied. ”You know how these things work—I show up, I tweet, they pay me. No one even told me how to pronounce the brand’s name.”
I later discovered she was one of the KOLs (key opinion leaders) invited to attend the event and endorse the brand, a practice that is now essential to any China digital marketing strategy. In fact, as Chinese consumers’ brand discernment increases, so does the demand for significant points of view online. In the spotlight of this phenomenon are KOLs that, under pressure to create quality content, demand more and more meaningful experiences from brands.
However, Chinese millionaires have quite different travel preferences, according to a survey released yesterday by the Hurun Report. Questioning only high-net-worth individuals, the study found that Australia topped the list of favorite international destinations, knocking last year’s leader Paris into second place for the first time in four years. The United States is likely going more mass—despite its number one ranking by Travelzoo, it dropped down to sixth place for Hurun.
China’s cosmetics industry may be growing at a double-digit rate, but that didn’t stop beauty brands Revlon and Garnier from announcing recently that they are pulling out of the market altogether, thanks to low sales. a However, they’re not the only foreign beauty brands that have faced China struggles in recent years. According to an article from Sina, four additional global brands have withdrawn from China since 2006. Below is a list of the brands who gave up, including what went wrong and where they are now.
When it comes to luxury spending, China’s affluent are clearly scaling back: not only was gift spending down 25 percent, but overall spending was down 15 percent, according to the survey, which was conducted between May and November 2013. Average annual spending on luxury by millionaires accounted for 1.9 percent of their total wealth, a 1 percent decrease from last year. For the super-rich, the amount was 1.3 percent. However, consumer spending, spending on tourism, and children’s education remained the same as last year.