Since the Covid outbreak in late 2019, the world hasn’t been the same and especially e commerce in China.
It severely impacted the world’s economy, and — two years later — the country is still working hard to get back on track after a prolonged period of constricted supply chains, decreased production and rising inflation.
But while the pandemic forced changes to how we live and work, some of those adjustments have led to permanent shifts in consumer behaviour.
In this article, we’ll look at how Covid has changed e commerce and customer behaviours in China and what this means for Western brands marketing in this economy.
Changing consumer behaviour
The outbreak of Covid-19 has changed Chinese consumer behaviour in several ways.
The pandemic has driven the rise of new retail formats in terms of channel, and the traffic migration has led to channel changes.
As a result, the Internet has become a stable consumer environment, and at the same time, it has accelerated the innovation and optimization of offline channels.
The “stay at home” mode changed consumers’ shopping habits, as well as the demand for online consumption.
The development of the MCN (multi-channel network) market segment, –such as live streaming — also affected the purchasing habits of consumers.
1. Leaning toward eco-friendly business models
The pandemic has forced many businesses to change the way they operate.
For ecommerce businesses, this has meant an increased focus on sustainability and eco-friendly practices.
In China, this shift began even before Covid hit, as consumers became more aware of the environmental impact of their purchases.
But the pandemic has accelerated these trends, with customers now preferring to buy from sustainable and ethical brands.
This is good news for the planet, and it’s also good news for businesses that are ahead of the curve on this issue.
So if you’re thinking about starting an ecommerce business, make sure to keep sustainability in mind.
Western brands operating in China have an opportunity to market their sustainability efforts to win the hearts of socially-conscious consumers.
2. Focusing on domestic “revenge tourism.”
As the Covid pandemic continues, international borders have largely remained closed.
This has resulted in a change of focus for many people regarding travel.
Instead of heading overseas, people are instead looking to explore their own cities and countryside.
This “revenge tourism” boomed in the past few months and is also known as the “nature breaks.”
The country saw over 230 million people travel domestically over the five-day holiday on May Day, representing a 119.7% year-on-year increase.
Such a market change in tourism also poses implications for the luxury industry, forcing them to rethink the retail and content creation strategies in the Chinese market.
This shift indicates that a global to local travel retail strategy is necessary for luxury players who want to ride the wave of this type of tourism.
3. The love for high-tech gaming grows
The love for high-tech, mass-participation, and digital-enabled gaming continues to grow in China constantly.
The pandemic has accelerated the gaming industry’s growth in China, with an estimated one million new gamers taking up the hobby during quarantine.
Mobile games make for a huge part of the market/
Today, over 90% of China’s gamers play on their phones, and mobile game revenues account for 75% of the gaming industry’s total.
With this sheer size, it’s clear that everyone wants a bite of the market.
Western gaming brands can win new customers in this growing market by working with localization experts to provide rich, targeted gaming experiences.
4. Digitisation is everywhere
The pandemic has forced businesses of all sizes to digitize in order to survive.
This has led to a boom in online shopping, as well as new opportunities for businesses to reach consumers.
Don’t get us wrong, digitization was high even before the pandemic.
On a typical day, a Chinese customer would buy their groceries online, enjoy a mobile app workout, communicate with work colleagues on DingTalk and game with friends online.
However, just like with everything else, the pandemic did its thing.
That’s why western brands can offer their products and services via websites, apps and Chinese social media.
Conclusion
Overall, Covid has had a profound effect on e commerce in China.
The pandemic has forced businesses that target the Chinese community to adapt in order to survive and has resulted in changes that are likely to be permanent.
In particular, there has been a shift towards online shopping and an increase in the importance of social media and live streaming.
At the same time, however, it is important to note that many of these changes were already underway before Covid hit and that the pandemic has simply accelerated them.
That’s why eastern businesses must always be on the lookout for rapidly emerging trends in China and be ready to capitalize on them.
Consumer trends offer fantastic opportunities to market your products to ready customers in China, especially if you can expertly leverage your digital marketing channels to the best effect.
