Six marketing strategies of China’s new ...

cro-movies spread brand value

While debuting brands turn to smiling idols, more established brands work on raising brand image, assets and value.

Domestic make-up raising star Perfect Diary worked with young idols around 2018 when the brand was new. One year later, Perfect Diary released a micro-movie starring young actress WEN Qi and directed by Iwai Shunji whose romance movie Love Letteris an all-time hit in China. Last year, ZHOU Xun became a global ambassador. The changes in marketing strategy he helped Perfect Diary dump stereotypes such as "Internet celebrity" and "cheap.”

The sugar-free beverage Genki Forest saw exponential growth in 2019 and 2020 by advertising on short video platforms and using popular endorsers. From last year, Genki Forest has released a series of videos on topics including China’s women’s volleyball team, ballet dancers, alpinists, and education in rural areas. The aim is to attract young people, build emotional connections with them, and spread its brand value.

Recently, Hey Tea’s promotional video Surprises Make Inspirationsbuilt on its slogan “inspiration of tea.” The ice cream brand Chicecream uses vlogs to tell childhood stories. Compared with conventional marketing methods, feature films astir up customers’ interests and emotional resonance, the brand’s friendly image is then strengthened.

As online traffic and endorsements become expensive, conversion rates can no longer meet expectations. New FMCG companies that pay more attention to brand value will go further. How to convey brands’ inner vitality - the key to success - to customers is a big challenge for all.

O2O strategy to better communicate with consumers

After gaining popularity, many brands including Saturnbird Coffee and BANANAIN he chosen to go offline and open brick-and-mortar stores to reinforce their image. A new customer experience attracts new customers. Location is crucial to offline business. Brands prefer spots like Huaihai Road M. in Shanghai as there is a large and steady stream of tourists. A store there is almost equivalent to a cost-effective ad.

Customers often judge a brand by the first impression of its offline store. New FMCG brands prefer sophisticated and original designs so that their stores no longer look like places that sell stuff. Their cyberpunk, industrial or galaxy styles are impressive and often go viral through social media. Customers can also get a better experience there.

The clothing brand Bosie Agender has set up many photogenic spots in its brick-and-mortar stores including cafes, photo booths, and pet shops. Saturnbird Coffee’s specially designed tables and chairs can be flexibly transformed to serve different activities. The highly interactive space can make customers stay longer so that they are more likely to purchase something. If clients return frequently, a long-term relationship and a deeper bond will be built between the brand and customers.

Private platforms to better serve and retain customers

After becoming popular on social media, the next step is to make sure that customers come back frequently and purchase more things.

As operation on “public traffic” platforms like Taobao and JD.com becomes more difficult but less profitable, new FMCG brands now turn to private traffic, creating their own official accounts, mini programs, and VIP groups on WeChat. The idea is to improve the brand’s operational flexibility and increase per customer transactions. According to TideSight Research, new consumer brands’ private traffic penetration rate reached 80 percent in 2021.

Competition in the saturated beverage market is even fiercer. In 2018, Hey Tea launched its "HeyTea GO" mini program on WeChat. As of Q1 in 2021, the mini program had more than 35 million VIPs. Online orders accounted for 81 percent of the brand’s total orders. In October 2021, "HeyTea GO” membership was officially upgraded to "HeyTea Membership", further completing the system. Another beverage brand Nayuki began to build its membership system in 2019 and has 42 million VIPs as of November 2021.

Digital marketing decides whether a brand can grow healthily. Making decisions based on big data, conducting in-depth, step-by-step and refined user operations and increasing repeat business - these strategies do bring brands continuous sales growth.

Artistic crossovers improve brand image

New FMCG companies also care more about their brand image and positioning in co-branding campaigns. The crossover is no longer a simple promotional picture but extends to artworks, exhibitions, markets and pop-up shops.

Specialty coffee brands with chic lifestyle labels show great interest in artistic crossovers to strengthen their high-quality and chic traits. At the Seesaw Art Season 2021 held last October, Seesaw Coffee and the Finnish designer brand Marimekko jointly launched "Flower Market" drinks and co-branded merchandise. During the Becoming Andy Warhol exhibition, Manner worked with the organizer UCCA to launch drinks, gadgets and pop-up stores featuring the artist's recognizable banana symbol. The limited-edition panda latte, merchandise and stores co-branded by Manner and BEAST were also popular among young customers.

In fact, brick-and-mortar stores can also be art galleries. Makeup collection store brand Harmay held various exhibitions for artists like Zhang Ying and Zhao Zhao in its offline venues. Pop-up stores and markets, Inspiration Art Festival held by Yongpu Coffee and the POP MART x Woodstock of Eating Art Market, for example, are also ideal crossovers to strengthen a brand’s young and fashion traits.

Young people are loyal customers of these crossover products and activities as they care more about a brand’s originality and positioning, rather than the price performance ratio.

Aesthetic packaging design to lead the trend

Packaging investment is 50 times more profitable than advertising investment. Packaging design is even more important to new consumer brands born in the social media age. It has been given priority and become a key part of RBellD just like product ingredients and formula.

New brands’ success lies in exploring niche markets and differentiating themselves from existing products. Once their products become a hit, their packaging design will also become a hit.

To some extent, Genki Forest leads to a packaging convergence in sparkling water. The huge handwriting font and the fresh fruit pictures indicating flors seem to he become a standard design. Saturnbird’s colorful capsule coffee package and transparent outer package are followed by many coffee brands. Wonderlab's typically short and fat bottles he also become a common packaging design among meal replacement shakes. Simple Love, a yogurt brand featuring “0 additives”, leads the minimalism trend and capital "0" is now largely used as a visual symbol on yogurt packaging.

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