China Digital Trends Report

May 2020 Edition

Social Insight

TABLE OF CONTENT

• 520 Campaign Highlights

• Growth of Livestreaming

• Prada “Mathematics of Love”• Gucci “520 Stories”• Louis Vuitton “Jia Mi”

• Farfetch• Bally Livestreaming• Kappa: Douyin (TikTok)

• Armani KOL VLOG• Calzedonia Summer Celebrity Blockbuster

• Market Recovery in May

Spotlight cases

• Spotlight campaign

Executive Summary

• China market is well on the road to complete recovery – reflected by strong product launch season and sales

• Reflective of the recovery, brands focus investment and campaigns towards the Double 5 shopping festival and “520”, China’s second unofficial Valentines’ Day.

• The most engaging brands commit to localization creatively to introduce their products to drive sales during this period

• Livestreaming is powering growth and sales conversion. Brands can leverage different platforms to adapt and target consumers to drive sales and enrich content

Market Recovery in May

• The Chinese economy is recovering from Q1 with reports suggesting

half of consumers are optimistic that economy completely heals or grows even stronger within 2-3 months.

• Surge in luxury brand participation in Shanghai’s Double Five (5.5), shopping festival. With many luxury brands launching new

products for this occasion.

Market recovery in the China market

Brands take strides to capture the rebounding market digitally through commercial festivals and campaigns.

• At the same time, luxury brands geared up localized campaigns for “520” to capture

booming digital consumers, with all traffic driven to e-commerce mini-programs

Real-time amount of consumer payments in Shanghai

RMB

• Shanghai’s 5.5 festival is a government-backed shopping event lasting two months (May – July) in order to boost sales digitally and offline.

• Within 24 hours of the event launch, sales had exceed CN ¥10 billion (US $1.4 billion) as reported by UnionPay, Alipay and

WeChat.• Top luxury players like LVMH, Kering, Richemont are all participating heavily in the campaign. With many planning hundreds of

new launches for the festival – such as Kering whom released new products from fashion, leather goods to jewelry, and watches in Shanghai before anywhere else in the world.

• Despite the recovery phase, surging sales indicates a strong purchasing attitude and rebounding of the Chinese market

Double 5 Festival: A showcase of recovery

520 Holiday: How brands leverage this

• 520 is China’s unofficial “second” Valentine’s Day. Pronounced similarly to “I love you” in Chinese, brands leverage this period to push marketing and digital sales in recent years.

• This year, brands focus even more heavily on digital traffic to drive online engagement.

• 520 is beyond just a simple commercial product drive-brands have evolved tailored campaigns using local insightto engage Chinese consumers.

WeChat Moments ads, appearing users social media feed, one-click directly to brand

Banner ad, appearing end of posts (articles)520 holiday: media ads into online stores

• Brands leverage 520 to push media ads - driving traffic seamlessly to the brands’ WeChat e-commerce stores

• However, Chinese consumers are very selective and skeptical to standard commercial ads

• Therefore, major brands must adapt with tailored campaigns in the theme of 520 to engage and connect with users…

Highlighting their respective 520 campaigns, users can click on brand ads to enter brand EC store

520 campaign highlight: PRADA

Observation

• Prada’s <Mathematics of Love> campaign involved celebrity ambassador Cai Xukun to shoot a series of images and videos.

• Using episodes of Chinese quarantined indoor-life and numeric metaphors to add up to 520 to engage with local consumers.

• Amplification across platforms with assets tailored specifically to their demographic.

Takeaway

• Prada engages users through its relatable scenarios paired with the large star power of Cai Xukun to drive media buzz.

• Buzz is integrated to campaign user journey which guides users

to Prada’s e-commerce (website and mini-program).

520 landing page showcases full screen campaign video to immerse users into the mini-program

The store section is customized for the occasion; with “gifts for her/him” as the primary focus

An interactive section where users can download Cai Xukun Prada wallpaper or shoot their own Prada-style photo to download and share

520 campaign highlight: PRADAPrada’s campaign included a limited-time mini-program zone where users could discover more of the campaign, interact and buy

520 campaign highlight: GUCCI

Observation

• Gucci launched a 2-week “520 Gucci Stories” campaign.

• Invited consumers to share their first memories of being touched by the brand.

• Campaign also brought multiple celebrity ambassadors to record and share memories and seed products.

Takeaway

• User-generated content (UGC) and engagement can be suggested to be stronger during key dates.

• Brand love is reinforced by connecting fans to their favorite celebrities by doing the same thing (sharing memories together).

• Chinese consumers are heavily swayed by KOLs and Influencers.

Unlike Prada, Gucci did not focus on a “love” theme. However, also leveraged celebrities to connect through story-sharing online

An all-star cast of celebrities, branded in product, share their memories which drive huge buzz on Weibo- Celebrities and KOLs

520 campaign highlight: GUCCI

Recordings of celebrities telling their “Gucci” stories drive further intimacy and brand love

EC mini-program drive with 520 purchases available

Gucci’s emphasis on sharing memories with the brand provides a convenient means of engagement to users. The brand leverages multiple formats to showcase celebrity and KOL-generated content

520 campaign highlight: LOUIS VUITTON

Observation

• A light-hearted video featuring actress Song Jia and livestreaming star, Li Jiaqi, set within a classic Shanghainese manor.

• Li Jiaqi sets up a series of clues in the house for Song Jia filled eye-catching LV products, spelling out “520”.

• No explicit “love” wording, however it leverages a nostalgic Chinese game and playful relationship.

Takeaway

• Increasing popularity and effectiveness of Leveraging themes that captures a Chinese consumer’s nostalgic or childhood side.

• More brands are evolving from classic love stories to more nuanced angles to showcase their product.

Louis Vuitton put a strong local focus on their campaign. A popular kids game in China and an influential cast to grab attention

1.EC mini program with KV in carousel 2. Present for herPrice ranking from2,700~53,000RMB

3. Present for himPrice ranking from2,600~39,000RMB

Louis Vuitton uniquely only sells through WeChat mini-program and website. With their vertical model, they streamline all media and ads towards their e-shop and website

520 campaign highlight: LOUIS VUITTON

Spotlight Cases• Growth of Livestreaming

• Spotlight campaigns

• Already a huge market, livestream has become a major driver of e-commerce (EC) and awareness as a result of COVID-19.

• Brands are experimenting with different formats and topics beyond purely commercial to feature products.

• Livestream offers a seamless connection and one-click-to-buy EC portal for viewers.

• Each platform such as WeChat, Little Red Book or Douyin (TikTok) has their own benefits depending on a brand’s campaign needs.

Spotlight cases: livestream

BACKGROUND：• Farfetch held its first series of livestreams, each on different platforms (WeChat Mini-program, JD.com and Little

Red book)• Using Farfetch’s luxury and platform expertise to showcase styling, trends and latest products.

MECHANISM：• Multi-platform angle to launch livestreaming during campaign season such as Jingdong flash sale day , 520 holiday.• Collaboration with sponsorship partners and leverage influence of KOL/MC for a multi-faceted media campaign

surrounding livestreams to boost awareness and traffic.

TAKEAWAY:• Livestream is a growing driver for e-commerce, Farfetch is looking at how to produce high quality content on e-

commerce platforms to accelerate users' purchase decisions.

• Livestream gives brands a good opportunity to showcase products in a intimate setting, which can generate

huge exposure and drive sales. This is supported by seamless one-click channel to EC store.

Campaign period: Apr 15th-May 18th

Exposure EngagementPV

KEY PERFORMANCE

Farfetch livestream series

A p r 1 5 t h 1 9 ： 0 0 A p r 2 6 t h 2 0 ： 0 0 M a y 1 8 t h 2 0 ： 0 0

JD (also viewable via )WeChat Little Red Book

Farfetch livestream seriesFarfetch is exploring livestreaming on popular social platforms and creating content with different focus(branding/promotion/sales-driving).

The livestream is held at a fixed frequency and a comparatively fixed time to form user habit of watching live at this point of time, just as all mega live streamer is doing.

Leverage MC and KOL to create content in the form ofvariety show, inviting 3 It engineers to talk about their workand styles to make audience more resonating.

Farfetch stylist introduce new products and givingprofessional advice about mix & match styling.

Combine festival focus theme’520’(I love you) with Farfetchpositively conscious concept about loving environment anddrive sales for environmentally friendly product.

Livestream poster Livestream screen shot Livestream poster Livestream screen shot Livestream poster Livestream screen shot

WeChatMoment AD

SMS Push

Social Posts

KOL Amplification

WeChat Mini Program Live Streaming Room

Farfetch PDP mini program

Cross-Channel Communication Live Streaming On Air PDP Direct Shopping

Farfetch livestream series: WeChat running order

Days leading up to livestream: media amplification including ads and KOL (Paid Amplification) with SMS push to users

SMS 1-hour before

livestream

Post-stream recap/video

Audience can click on bag icon to show all featured products and buy them directly off Farfetch mini-

program

Commercial Partnership Commercial Sponsorship

Venue partnership with Pudong Mandarin Oriental

Sample sponsorship from Stone Island and Prada

Communication Offers:3 dedicated Weibo posts for MO

4 WeChat posts insertion

Content Offers:2 tailor made stories for MO

8+ more additional comments

Brand Introduction:MC and KOL introducing

Stone Island

Product Introduction:KOL introduce and demonstration

Also link to PDP

Farfetch livestream series: product featuringAs a platform, we also welcome brand sponsorship for product seeding, resulting in a win-win in exposure and conversion

BACKGROUND：• With impact of COVID-19 on global markets, Bally recognized the need focus more on the recovering

China market. They initiated a 520 holiday campaign, in order to drive traffic from social platforms to T-mall and boost sales.

MECHANISM：• Livestream teasers through Bally owned platforms and KOL collaboration to drive awareness.• Invite 2 influential KOLs (male & female) to introduce product and release livestream-only promo code to

convert traffic into trackable sales effectively.

KEY TAKEAWAY:• Selecting KOLs with professional experience and matching the brand's image is critical to the success of

the livestreaming.• Brand should also give support to KOLs on brand and products training which can help them be familiar

with product selling points and communicate brand story with T-mall audience. • Livestreaming venue set in Bally store, an efficient method to ensure brand image. However, brands

pursuing a non-commercial angle should also consider different spaces.

Campaign period: May 18th

Exposure Livestream Viewership

Benchmark

KEY PERFORMANCE

Engagement

Bally 520 Tmall livestream campaign for store anniversary

Te a s e r p o s t e r

L i t t l e R e d B o o k p l a t f o r m

W e i b o p l a t f o r m

W e C h a t p l a t f o r m V i d e o p l a t f o r m

K O L c o l l a b o r a t i o n

Bally 520 Tmall livestream campaign for store anniversaryIn addition to teaser, Bally leveraged cross-platform KOLs to feature products to drive buzz towards the campaign during the period beyond simple product feature.

B a l l y Tm a l l s t o r e

Tm a l l l i v e s t r e a m i n g

Product link All products presentedin livestream

Share livestream withfriend and get coupon

With the Bally store as a backdrop and informed KOLs to showcase products, the livestream can effectively engage users and driveconversion to purchase- readily available on the Tmall livestream UI

Bally 520 Tmall livestream campaign for store anniversary

OBJECTIVES：• Promote MVM cobranding collection & Doraemon collection, strengthen the connection between Kappa and pop

culture to drive preference towards a younger TA.

MECHANISM：• Launch 3-day livestreaming relay on Douyin (China’s version of TikTok), leveraging influential experts in music and art

to build awareness for campaign.• Send out blind box figure gift & Kappa x MVM T-shirt in livestreaming as incentive to increase online interaction.

KEY TAKEAWAY:• Brands should acknowledge brands TA and communities of specific platforms to tailor campaigns and livestream

that would increase engagement with them.• KOL collaborations beyond one-off events have potential continue to produce assets for brand and recruit more

young followers to build new a new IP as witness with Kappa.

Campaign period: MAY 1-3th

Livestreaming

ViewerViews

#kappa新声势#

Likes

KEY PERFORMANCE

While Douyin (TikTok) may not have a seamless link to other apps. Brands leverage it for its strong Gen-Z audience and artistic communities

Kappa livestream campaign

D o u y i n l i v e s t r e a m I n c e n t i v e f o r i n t e r a c t i o n

Kappa livestream campaign

O p e n A d s F e e d A d s O f f i c i a l a c c o u n t p o s t

Kappa livestream campaignLivestream for brands on Douyin come as a package. Brands should be aware that media amplification package is bought alongside livestream hosting on the platform.

OBJECTIVES：• Promote Emporio Armani’s SS20 key products and announce the updated official website as a new EC

channel.• Boost online and offline sales with the KOL push.

MECHANISM：• Invite 2 fashion KOLs to shoot store-visit VLOG and push assets on Armani’s official WeChat account/ KOL

social platforms.• Present SS20 products in various formats(video, photo and illustration)to raise follower interest.

KEY TAKEAWAY:• KOLs are able to drive their own fanbase traffic to discover a new brand which boosts awareness. But brands

should understand KOL must fit the brand image for product seeding and overall positioning.

• Diversified formats (Vlog /photo/ illustration) of KOL content are usually vivid and attractive way to presentproduct, attract attention and stimulate followers’ desirability.

Campaign period: MAY 1-3th

BenchmarkEngagement

KEY PERFORMANCE

Impression

Armani KOL VLOG campaignLivestreaming carries inherent risks for brands. Some brand such as Armani have opted for a more flexible format to engage users.

Armani KOL VLOG campaign

Armani account post 2 VLOGS by KOL KOL photoshooting & illustration

A diverse pair of KOLs, is able to each engage with their own unique traffic of followers. This is combined with their “outputs” (photoshoot + illustration)

Fashion KOL with product seeding and photo shooting to create assets for the campaign

Illustrator KOL with his art following as well as fashion following who created illustration assets unique to the campaign

Calzedonia summer campaign

OBJECTIVES：• Promote new product releases with Yang Mi’s (YM) blockbuster for summer campaign.• Drive traffic to Tmall store to promote sales.

MECHANISM：• Launch topview (fullscreen) ads to strongly showcase YM’s video, giving users an immersive experience,

guiding them through a series of unique open ads to feed ads which finally link to Tmall landing page. • Booking the best ads position and ”summon” YM fans during Labor day, in addition- landing page are

equipped with discounts to achieve unity and reinforce of brand love.

KEY TAKEAWAY:

• The leveraging of YM’s second largest platform of followers, allows accurate targeting of the celebrity’s fans and effectively convert traffic to Tmall.

• Topview is Douyin‘s ”hero format”, more effective than their feed ads. Thus helping brand videos to achieve better exposure and click rate (60% higher than benchmark)

Campaign period: Apr 27-May 6

KEY PERFORMANCE

Impressions CTRBeyond Estimate KPI

Calzedonia combines an effective leverage of star power with data-driven amplification methods to extend reach

Calzedonia summer campaignTo p v i e w F e e d a d s Tm a l l p a g e （ T O P ）

Immersive open ad video experience Feed ads drive traffic to Tmall