The China newsletter | July 2024
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Welcome to the July edition of newsletter! As we step into the summer months, we are excited to bring you the latest updates, insights, and trends from China.
In this issue:
LATEST TREND
The “city, not city” trend, coined by Paul Mike Ashton, has gone viral on Chinese social media, using the hashtag to determine if something is urban and trendy, reflecting China’s modernization and resonating with Gen Z.
SOCIAL MEDIA
In 2024, China’s consumer confidence is low, causing an unstable recovery in luxury goods consumption, with brands like Miu Miu thriving while others like Burberry struggle, highlighting the crucial role of social media and the need for effective communication of brand values in China.
TRAVEL
Affluent Chinese women, especially millennials and Gen Xers, are leading luxury travel trends, with 71% preferring experiences over material goods. A significant 82% prioritize their own preferences in travel planning, highlighting a shift towards autonomy. Wellness travel is evolving to include holistic experiences, pushing brands to create personalized, immersive offerings that cater to diverse traveler archetypes and spotlight niche destinations.
FASHION
“Tenniscore,” a TikTok micro-trend,? entered the mainstream globally and in China, resurging with Miu Miu’s Fall/Winter 2022 collection. Its popularity, driven by cultural moments, brand endorsements, and increased local interest in tennis, has proven lucrative for luxury brands, generating significant media impact values.
BEAUTY
China’s Generation Alpha, heavily influenced by social media, has embraced the “morning C, night A” skincare trend, often leading to severe breakouts due to misinformation and inappropriate product use. Experts warn that young people frequently misuse skincare products, exacerbated by deceptive marketing from some domestic brands. To build trust and loyalty, brands should focus on educating Gen Alpha about basic skincare needs and collaborate with credible influencers, leveraging platforms like Xiaohongshu to combat misleading content.
LATEST TRENDS
“City or Not City?”: The Trend Defining Urban Sophistication on Chinese Social Media
The “city, not city” (city不city啊) trend has taken Chinese social media by storm, using the hashtag to describe whether something is urban, trendy, and sophisticated—or not. Coined in May by Shanghai-based American content creator Paul Mike Ashton, the term exploded after a viral video and has garnered over 43 million views on Xiaohongshu.
The trend evaluates activities based on their alignment with urban life; for instance, drinking iced lattes and biking on Shanghai’s Anfu Road are considered “very city,” while visiting the Great Wall is “not city.” The catchy phrase has gained popularity due to Ashton’s engaging pronunciation, and its fun, spreadable nature.
QUICK WIN FROM RETEX CHINA: Brands looking to connect with digitally-savvy Chinese consumers should integrate such emerging trends into their marketing strategies to remain relevant.
LUXURY
领英推荐
Navigating Uncertainty: Luxury Brands in China Face Mixed Fortunes in 2024
In 2024, China’s consumer confidence remains low, making the recovery of luxury goods consumption unstable. While brands like Miu Miu saw significant growth, others like Burberry struggled, necessitating a reevaluation of their company structure. Social media’s impact on brand performance is critical, with ReHub’s quarterly Compass Index offering insights based on data from platforms like WeChat, Douyin, Xiaohongshu, and Weibo.
The second quarter is crucial for luxury brands due to key shopping festivals and holidays, which can drive immediate returns and set the stage for future growth. This year, the industry experienced significant performance polarization, with some brands thriving in China and globally. The recovery in travel and favorable currency valuations have made markets like Japan attractive for Chinese luxury consumers. Despite shifts in purchase locations, the point of influence remains stable, emphasizing the need for brands to communicate their values effectively in China.
QUICK WIN FROM RETEX CHINA: Brands that have invested in China hope to see returns, indicating the evolving nature of the luxury segment. Thomas Piachaud PhD, Head of Strategy at ReHub, provides these insights.
FASHION
Tenniscore: The Enduring TikTok Trend Taking Over Global Fashion and China
“Tenniscore,” a TikTok micro-trend, has outlasted other internet-driven fashion trends like ‘grandpacore’ and ‘Barbiecore,’ entering the mainstream globally and in China. Originating in the late 1980s, it resurged with Miu Miu’s Fall/Winter 2022 collection.?In March, the trend gained traction due to cultural moments and brand endorsements, leading to over 4,500 tennis fashion-related posts in May, an 18% YoY increase. The hashtag #Tenniscore has over 6.5 million views on TikTok and around 4.8 million on Xiaohongshu.
In China, tenniscore’s popularity is driven by increased interest in tennis, government investment, and local athletic stars like Zheng Qinwen. Post-COVID, tennis events proliferated, and outdoor sports participation grew by over 28% in two years, especially among older generations.
QUICK WIN FROM RETEX CHINA: Unlike short-lived microtrends, tenniscore’s blend of functionality and style, along with its alignment with younger generation preferences for comfort and practicality, has contributed to its enduring appeal. Despite seasonal changes, experts believe tenniscore will continue to remain relevant.
TRAVEL
Trailblazing Travelers: How Affluent Chinese Women Are Redefining Luxury Travel
Affluent Chinese women are revolutionizing the luxury travel industry, leading trends that reshape the market. Predominantly older millennial and Gen X women, born in the 1970s and 1980s, are the primary drivers, significantly outspending their male counterparts on travel. This trend is supported by younger women from the 1990s and 2000s, who show increasing consumption potential, and older women in their 50s and 60s, who also prioritize quality travel experiences.
The luxury travel market for affluent Chinese women is transforming towards experiential luxury, personal growth, and authentic connections.
QUICK WIN FROM RETEX CHINA: Brands must quickly adapt to offer bespoke, immersive experiences, with growing demand for niche destinations, wellness-integrated travel, and technology-enhanced convenience. Success requires crafting personalized itineraries that balance popular landmarks with off-the-beaten-path experiences and prioritizing partnerships with local cultural entities and lifestyle brands. Hotels should differentiate with themed accommodations, enhanced room amenities, and local cultural integration, while travel advisors play a crucial role in pro.
BEAUTY
Navigating Skincare Trends: China’s Generation Alpha and the Impact of Social Media
China’s Generation Alpha (born between 2010 and 2024) has grown up immersed in social media platforms like Weibo, WeChat, and Xiaohongshu, leading to early exposure to vast amounts of online information. One popular beauty trend among them is the “morning C, night A” skincare routine, involving vitamin C in the morning and retinoic acids at night. Despite its popularity, this routine has caused severe breakouts for many young users, highlighting the risks of misinformation and inappropriate product use.
Experts like Davy Huang from Azoya and Sory Park from Daxue Consulting emphasize that young people often misuse skincare products, damaging their skin barriers. Misinformation and deceptive marketing by some domestic beauty brands exacerbate the issue, leading to unnecessary and sometimes harmful product use. These brands often overstate the efficacy of their products, misleading young consumers.
QUICK WIN FROM RETEX CHINA: Gen Alpha’s digital nativity means they spend significant time online, participating in niche subcultures and creating content. Brands aiming to engage with Gen Alpha should focus on building communities and educating young consumers about proper skincare. International brands have an opportunity to build trust and loyalty by providing reliable information and collaborating with credible influencers. Ultimately, educating Gen Alpha about basic skincare needs and avoiding complex routines can cultivate long-term loyalty.