Welcome to the August edition of our newsletter! As we step into the heart of summer, August brings with it a sense of renewal and boundless energy. Let’s dive into the highlights of August together!
In this issue:
LATEST TREND
China’s Gen Z is revolutionizing health and wellness by blending innovative and traditional practices, with a strong focus on personal and community well-being. This includes the “lazy health” trend for low-effort wellness, stress-relieving activities, and a resurgence of Traditional Chinese Medicine, all while fostering community connections and embracing eco-conscious consumption…
SOCIAL MEDIA
Xiaohongshu’s mid-year 2024 report reveals that China’s youth are increasingly turning to the platform for lifestyle inspiration, with significant trends in home-based fitness, small-town tourism, and pet parenting. The report underscores a broader cultural shift towards authenticity and self-improvement, offering valuable insights for brands to connect with this demographic amid evolving consumer preferences.
FASHION
As Qixi Festival, China’s Valentine’s Day, approaches, luxury brands are launching campaigns that blend Western aesthetics with Chinese cultural elements to engage local consumers. Featuring popular celebrities and traditional narratives, these campaigns highlight the importance of cultural sensitivity and storytelling in resonating with the Chinese market.
TRAVEL
Mainland Chinese consumers led global tax-free spending in July 2024, with a 33% year-on-year increase, driven by new duty-free quotas in Hong Kong and increased travel to popular Asian destinations like Japan and Thailand. This surge highlights a strong rebound in international travel and luxury goods spending, with younger, tech-savvy Chinese tourists favoring immersive brand experiences and premium travel options.
TECHNOLOGY
Nearly a month after Apple’s Vision Pro launched in China, Douyin has introduced Douyin VR Live, offering panoramic livestreaming and 3D effects. While the headset has garnered significant attention and brand collaborations, its high price and shifting consumer spending patterns pose challenges to widespread adoption.
LATEST TRENDS
Revolutionizing Wellness: How China’s Gen Z Blends Tradition and Innovation for Holistic Health
China’s Gen Z is reshaping the health and wellness landscape with a mix of innovative and traditional practices, prioritizing personal and community well-being. This transformation includes the “lazy health” trend, which focuses on low-effort methods like foot soaking and health supplements to fit busy urban lives. Stress-relieving activities such as temple visits and micro-short dramas offer quick mental breaks, addressing feelings of loneliness.
Community connections are fostered through local wet markets, new social hubs celebrated on platforms like Xiaohongshu and Douban. Health trends include “sudden death prevention packages” with supplements, and integrating Traditional Chinese Medicine ingredients into daily diets. Slow-paced exercises like Baduanjin are popularized by influencers.
Gen Z also embraces creative convenience, with health products like vitamin-infused gummies and greens-packed ice cream. The “punk health” trend balances healthy living with occasional indulgences. Preventative wellness products and eco-conscious shopping reflect a commitment to sustainability and overall wellness.
QUICK WIN FROM RETEX CHINA: Brands aiming to engage China’s Gen Z should emphasize value, practicality, and convenience, while also fostering a sense of community and connection to address their social needs.
SOCIAL MEDIA
Xiaohongshu Report Highlights Evolving Trends Among China’s Youth in 2024
Xiaohongshu’s mid-year 2024 report highlights significant shifts in the search habits of China’s youth, particularly Gen Z and Millennials, with a strong focus on women.
- The platform, with 300 million monthly active users by the end of 2023, reveals key trends such as a preference for comfort in fashion, with trainers far outpacing heels, and the viral #tingquan trend attracting nearly 20,000 young men seeking style makeovers. Fitness and wellness searches have surged, with 1.57 million users pledging to slim down by March 2024 and 60,000 people favoring home workouts, reflecting a broader cultural shift towards holistic well-being.
- Young Chinese are increasingly seeking authentic and tranquil travel experiences, driving a surge in museum visits with over 12 million searches in H1 2024. Culinary trends show a preference for discovering hidden street food gems and engaging in cooking tutorials, with #ColaChickenWings being the most-searched dish, garnering 354.7 million views, reflecting the platform’s influence on culinary creativity.
- Pet parenting has emerged as a major lifestyle trend, with content related to pet care and pet-friendly travel gaining popularity. The popular #PetNamingBible has seen users contribute names for almost 5,000 cats in the first half of 2024, indicating the growing community of pet parents on the platform. This trend intersects with wellness and small-town tourism, as demand for pet-friendly wellness retreats and travel experiences increases.
At the core of these trends is a desire for authenticity and self-improvement, with nearly 950,000 male users searching for ways to reconcile with partners after breakups.
QUICK WIN FROM RETEX CHINA: Xiaohongshuhas seen a rise in content related to mental health, mindfulness, and relationship advice, offering brands valuable insights to connect authentically with Chinese consumers. As trends evolve, brands must adapt to connect authentically with Chinese consumers, especially amid economic uncertainty and retail shifts.
FASHION
Luxury Brands Capture Hearts Ahead of Qixi Festival with Culturally Resonant Campaigns
As Qixi Festival, often referred to as China’s equivalent of Valentine’s Day, approaches, luxury brands are unveiling their latest campaigns and collections to capture the hearts and wallets of Chinese consumers. This year’s offerings showcase a harmonious blend of Western luxury aesthetics and Chinese cultural elements, reflecting the brands’ deep understanding of the local market.
Gucci‘s romantic portrayal of actor Zhang Linghe and supermodel He Cong highlights the brand’s craft heritage and Chinese romance, while Bottega Veneta‘s star-studded campaign features Zhou Yutong, Mika, and Du Juan, drawing inspiration from the traditional Qixi Festival story of the Cowherd and Weaver Girl. Miu Miu‘s collection, photographed by Alessandro Fuchino Capria, features confident Miu Miu girls in distinctive outfits, and Prada‘s campaign, set in the ancient village of Xingxi, Huizhou, bridges past and present with actor Li Xian and model Xie Xin.
These luxury campaigns not only showcase the latest products but also weave in elements of Chinese romance and tradition, creating a powerful connection with local consumers. By leveraging popular local celebrities, incorporating storytelling elements that resonate with traditional Chinese narratives, and demonstrating cultural sensitivity, these brands are navigating the delicate balance between global brand identity and local cultural resonance, setting a benchmark for others to follow.
TRAVEL
Chinese Tourists Drive Global Tax-Free Spending Surge and Redefine Luxury Travel
Mainland Chinese consumers led the world in tax-free spending for July 2024, with a 33% year-on-year increase, surpassing the 31% growth in Q2 2024, according to Global Blue. They dominated the Asia-Pacific region with a 97% revenue boost and a 107% increase in tax-free shoppers, driven by Hong Kong’s new duty-free quotas and a surge in travel to Japan, Thailand, South Korea, and Malaysia.
- Global tax-free shopping revenues rose by 25% in July, down from a 41% increase in Q2. In Europe, growth was 12%, affected by France’s Olympic preparations. Mainland Chinese shoppers have returned to pre-pandemic levels, reaching 132% of 2019 figures in June.
- China’s outbound travel market, expected to hit 130 million this year, is led by a younger, tech-savvy demographic. Popular destinations include Japan and Thailand, with South Korea also seeing a resurgence. In May, Japan saw a 305.5% increase in visitors from Mainland China.
- Europe is attracting more Chinese tourists seeking premium experiences, with Belgium, Spain, the UK, and Italy as top choices. Germany is leveraging digital tech to attract Chinese tourists, collaborating with Alipay and Baidu.
- In May, global tax-free shopping recovery hit 172% of 2019 levels, led by Mainland Chinese shoppers. Spending soared 250% year-on-year in the Asia-Pacific, with a 272% increase from Mainland Chinese consumers.
QUICK WIN FROM RETEX CHINA: The future of luxury travel lies in creating immersive brand experiences that resonate with Chinese consumers. Fashion brands like Jacquemus are leading the way by turning resorts into branded experiences, fostering stronger connections and loyalty among Chinese travelers.
TECHNOLOGY
Douyin Launches VR Live as Apple’s Vision Pro Gains Traction in China
Nearly a month after Apple’s Vision Pro was officially released in China, Douyin, China’s version of TikTok, has introduced Douyin VR Live, a feature that enables users to experience panoramic livestreaming and gift 3D effects to creators. The Vision Pro, which entered the Chinese market on June 28 at a price of 29,999 RMB (approximately $4,128), has also seen interest from other platforms. For instance, Taobao launched a beta version of its e-commerce application for the headset in April, allowing users to test drive cars and redecorate rooms virtually. Kuaishou, another popular video-based social media channel, released its own virtual experience for the headset, offering features like simultaneous video browsing and immersive video layouts.
Despite the Vision Pro making international headlines and attracting brands like Balenciaga, Gucci, and MyTheresa to develop exclusive applications, it is expected to sell fewer than 500,000 units this year according to research firm IDC. Chinese netizens have been actively discussing the headset, with the hashtag #VisionPro amassing over 42.24 million views on Xiaohongshu.
While some tech enthusiasts praise its technological advancements, others are cautious about its high price. This mixed reception comes amid a broader trend of Chinese consumers shifting their spending from entertainment and tech products to travel, food, and clothing, as noted in a recent Mintel report. The initial scarcity of the Vision Pro drove up demand, with resale prices reaching as high as 36,000 RMB ($5,000) on platforms like Taobao. However, now that the headset is readily available, the novelty may be wearing off.
QUICK WIN FROM RETEX CHINA: To combat slow sales, experts like Dr. Helen Papagiannis suggest that companies focus on creating highly personalized experiences through the Vision Pro, such as virtual private shopping sessions. She cites J.Crew’s trial of virtual stylist appointments as an example of how personalized, immersive experiences can enhance customer engagement.
