Retail in Asia

In Markets

WeChat’s transformative role for beauty brands in China

Shiseido WeChat China beauty brands - Retail in Asia

Both beauty and luxury fashion brands in China have been utilizing WeChat—Chinese consumers’ all-in-one mobile app—to promote brand awareness and interact with their audiences. A new finding on audience engagement with beauty brands on WeChat in 2016 challenges the traditional role of the app as a content-producing platform. The emerging trend seems to suggest that content is no longer as important as it used to be, leading beauty brands to use a number of alternative methods to drive engagement. From a one-sided, brand-directed conversation to a more interactive, one-on-one communication tool, the change of users’ preference along with the evolving platform itself has shaped the app’s new identity—a central hub that encompasses customer relationship management (CRM), commerce, online-to-offline (O2O), content, and more.

In the latest “Beauty China 2017” report that studies the Digital IQ Index of 98 beauty brands in China, digital intelligence firm L2 found there was a dramatic drop in viewership of WeChat posts by these brands. Statistics show 84 percent of all posts accumulated less than 25,000 views. In previous years, posts by well-known brands, including Shiseido and Lancôme, could easily generate more than 50,000 views. These brands accordingly decreased the frequency of their posts from 2.78 times per week in Q4 2015 to 1.73 in Q3 2016. In spite of the dramatic drop in post viewership, the overall level of engagement between brands and customers on the app was still able to increase slightly from the year before.

SEE ALSO: Highest conversion rate for beauty amongst Chinese

A basic interpretation of the figures suggests that followers of these beauty brands on WeChat seemed to lose interest in reading posts in 2016. Indexed brands thus recognized the lackluster response early on and pushed out a number of alternative ways to interact with their audience so that the overall level of engagement was not largely affected. According to the report, brands that have performed well digitally have used diverse ways to prevent a sharp drop in audience engagement due to decreasing interest in blog posts last year. The methods range from sampling campaigns and live-streaming events, to daily check-ins, loyalty programs, and gamification.

Ever since WeChat became one of the most powerful communication platforms in China, blog posting has been frequently used by brands to interact with their audience. This one-sided, content-dominated method of communication helps many brands grow their number of followers and raise brand awareness among Chinese consumers when they’re starting out.

However, late last year, digital marketing agency Curiosity China noted that the value of WeChat had shifted away from “pushing as many messages as we can to an underdetermined audience.”

In a content-saturated media world, Chinese WeChat followers expect to receive more value-added services and experiences from brands. A close look at the digital strategy of premium cosmetic brand Estée Lauder, the “sole genius” brand in L2’s 2016 Digital IQ Index, can provide insights into what Chinese customers like. On WeChat, the brand offers a wide range of customer-centered services. For example, followers can easily enroll in its loyalty program simply by providing their phone number.

In 2017, if beauty and luxury brands hope to continue to benefit from WeChat, it is time for them to recognize “(the app) is not a mass communication platform, but instead ideal for one-on-one communication,”. “Instead of being a content-driven platform, for brands it is ideal for CRM and commerce.”

Jing Daily logoThis article was written by Yiling Pan for Jing DailyJing Daily is the leading digital publication on luxury consumer trends in China. Professionals seeking to understand China’s complex and rapidly evolving luxury industry look to Jing Daily for fresh and accurate insights. We publish up-to-the-minute news updates, reports on key trends, insights from leading industry figures, and in-depth analysis on this vitally important market.