TABLE OF CONTENTS
3
INTRODUCTION
5
Market Trends and New Wisdom
6
7
8
9
10
11
LABELS are in China before they know it
Executives must be more accountable
BRANDS NEED MORE THAN WEIBO AND WECHAT
TRUE ADVOCATES ARE CRITICAL
Chinese consumer SPEND IS INCREASING methodology 15
Top 300 BRAND RANKINGS
20
Category Breakdown: Rankings, Insights and Success Stories
20
23
26
29
32
35
38
Luxury
Accessible Luxury
Contemporary
High Street
Beauty and cosmetics
Jewelry, Watches and Accessories
MULTI-BRAND Retailers
41
CONCLUSION
42
About us
42
43
overview of BOMODA GROUP
key contributors
44
44
45
45
47
APPENDIX: GLOSSARY
INDUSTRY AND MARKET TERMS
ALIBABA OPERATED
SOCIAL PLATFORMs
baidu services
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2
introduction
Welcome to the 2014 Bomoda BRAND INDEX.
The Bomoda Brand Index is the definitive guide to brand
achievement in China, evaluating both activity and impact
among Chinese consumers. The core of the report is an index of
300 prestige brands in China, based on their performance across
three major dimensions: brand awareness, brand engagement, and
consumer experience.
• We built an algorithm that scores a brand’s total aggregate performance in China.
•The algorithm incorporates more than 250 unique data points from social media, online fashion press, KOL mentions, mobile, website, and e-commerce sources.
•If it’s included, it matters: these data points were selected and
weighted through years of research and correlation with brand equity and measurable metrics.
We found that extraordinary success with the Chinese
consumer is achievable – if brand leaders understand
where to focus and which resources to leverage. This
report reveals which common brand behaviors do not
correlate with growth, while shedding light on those that
create measurable accomplishment.
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3
INTRODUCTION
Our Approach
Overwhelmingly, brands understand the relative value of China to the future
of their businesses. But companies often make investments that are too small
or based on bad assumptions. Even with thoughtful strategies in hand, unreliable
data, outsourcing and siloed planning can undermine operations. Unrealistic
expectations at the executive or board level often compound these challenges.
Brand reach, engagement, and experience in China are incredibly challenging
for brands to measure and track. Each comprises hundreds of supporting
data points that varyingly reveal the effectiveness of a brand’s marketing spend,
expansion strategy, and product development. The right data and insights can
clarify these concepts – and their supporting KPIs – providing a firm foundation
for growth.
The rankings in this report show the extent to which any single brand has
achieved across these KPIs – and where opportunities for improvement exist.
Towards a More Profitable Future...
As brands look to orient themselves to this critical market, the underlying
strategies and tactics must be based on the data that define them. We
conducted months of modeled data analysis and research to pinpoint what
drives success in reaching, engaging and converting the Chinese consumer
into a strong brand advocate.
Despite its opacity, China does allow for replicable and significant brand success.
The companies that rate highly in our rankings have achieved excellence through
flexibility, commitment, and an understanding of China’s unique cultural dynamics.
In doing so, they have not sacrificed their brand story.
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4
market trends and new wisdom
As China emerges, China changes. Even as brands look to achieve a functional
command of the market, the dynamics shift. In a rapidly evolving nation of nearly
1.5 billion, our data shows the extent to which the development of new channels,
new demographics and new behaviors is a daily occurrence, undermining even
the most well-considered quarterly planning process.
The consequence? Brands build and execute strategies atop outdated data,
stale positioning, and misaligned initiatives. It’s difficult enough in a stable
model to understand reach, engagement and experience. To make these concepts
actionable in a continually-shifting, culturally-divergent marketplace is akin
to attempting to land a probe on an asteroid, blindfolded.
In such a challenging environment, brands look to
other brands for guidance.
This creates an echo chamber of conventional wisdom that
is often at odds with the changing realities on the ground.
Here are five notable examples of recent shifts
in this conventional wisdom surrounding China...
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5
MARKET TREnds and new wisdom
#1/ LABELs are in china before they know it
Conventional Wisdom
If a brand is not yet ready to enter China, it can wait until it has figured out its
long-term strategic plan before it participates.
New Wisdom
Even if a brand does not think it is in China, it is. And the costs of ignoring the
Chinese market ripple across the globe.
• Resellers are selling every single
major luxury and fashion brand on Taobao and Tmall, defining market perceptions and creating product dialogue even in the absence of formal brand participation.
• Consumers are discussing every brand on social media and searching each brand on Baidu
(China’s key search engine). Brands that fail to leverage these channels can be sure that their competitors will.
• If brands are not engaged because they are not currently focused on China domestic sales, they will consequently suffer in other Asian markets, in Europe and increasingly in America as the Chinese come to dominate international travel and retail tourism.
Chatter over 2 weeks in China around 40 brands in our Index with no visible local investment
8,479,307
KOL IMPRESSIONS *
IN THE LAST 2 WEEKS,
40 brands (of 300) with no
targeted investments in China
have had significant chatter
among local consumers
and KOLs.
657,575
RESULTS
WEIBO SEARCH
13
,475 ,860
897,482
PRODUCTS ON TAOBAO
BRAND MENTIONS IN TOP 6 FASHION
DISCUSSION FORUMS
We define brands with no targeted investment in China as those that meet ALL of the criteria: no official Mandarin language website,
no official Weibo presence, does not ship to China, does not have a Tmall presence, and does not have a Douban presence.
*KOL impressions is the product of a KOL’s fan base multiplied by his/her number of Weibo posts about a brand
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6
MARKET TREnds and new wisdom
#2/ executives must be more accountable
Conventional Wisdom
Brand executives can make strategic decisions from afar, trusting junior teams and
agencies on the ground to get it right.
New Wisdom
Western executives must be fluent in the key channels, in tune with their company’s
KPIs, and intimately involved in its strategic direction.
• Brands often invest in specific
channels without requisite
investment in complementary
channels, leading consumers down
sub-optimal paths as they begin to
explore and engage.
• Agencies in China frequently
optimize for short-term goals but
do not understand the unique
challenges brands face to build
long-term, profitable relationships.
• The impact of these missteps is
revealed in the data – significantly
reduced resonance, awareness,
and engagement with the targeted
Chinese consumer.
New Balance makes targeted investment in Search without Mobile follow-up
Step 1:
Consumer searches
“New Balance” on her
mobile (42% of Baidu
searches are from
mobile).
Step 2:
New Balance’s Chinese
website ranks #1
organically in Baidu when
searching for brand name.
Step 3:
New Balance’s
Chinese website
is not mobileoptimized.
Step 4:
Weibo is promoted
on brand website,
but the link to Weibo
is broken (returns an
error page).
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7
MARKET TREnds and new wisdom
#3/ BRANDS NEED MORE THAN WEIBO AND WECHAT
Conventional Wisdom
Weibo and WeChat are the only social channels that brands need to reach the Chinese consumer.
New Wisdom
Secondary channels such as Dianping, Douban, Meilishuo, Toutiao and even Instagram provide
critical, targeted reach to over 500 million Chinese consumers.
•Investment and participation
in social channels should
coincide with the Chinese
consumers’ evolving online
behavior.
• Leading brands like Converse
• These secondary channels
and Coach understand that
pockets of significant value
exist outside the obvious
channels, representing a
profitable arbitrage opportunity.
have defined user bases
relative to mass channels
such as Weibo, providing
brands with targeted outreach
opportunities to consumers.
#5
Four representative secondary social channels delivering large targeted consumer bases
DIANPING
MEILISHUO
DEMOGRAPHICS
Educated (80% are college +)
Young (over 40% less than 25)
Tier 1 Residents
DEMOGRAPHICS
Young Female (18 to 35)
Opinion leaders within social circle
Tier 1 Residents
WHY THIS PLATFORM IS
IMPORTANT
China’s version of Yelp; enables
brands to monitor user reviews &
ensure accurate listing information
Similar to Fancy or Polyvore;
allows brands to identify organic
brand advocates & commerce
MOST EFFECTIVE FOR
Brands with any retail footprint
or location within China
MOST EFFECTIVE FOR
High Street & Luxury (currently
most mentioned categories)
NICE
DEMOGRAPHICS
Majority trendy, affluent females
Tier 1 Residents
WHY THIS PLATFORM IS
IMPORTANT
Brand-name focused Instagram
model; encourages brands to
identify grassroots consumers
MOST EFFECTIVE FOR
Accessible Luxury, Jewelry, Watches
and Accessories, Contemporary
WHY THIS PLATFORM IS
IMPORTANT
HUABAN
DEMOGRAPHICS
66% Female, 34% male with males
trending upward
20-29 Working professionals
WHY THIS PLATFORM IS
IMPORTANT
China’s version of Pinterest;
brands may showcase seasonal
collections of products
MOST EFFECTIVE FOR
Multi-brand Retailers, Beauty &
Cosmetics
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8
MARKET TREnds and new wisdom
#4/ true advocates are critical
Conventional Wisdom
Key Opinion Leaders (KOLs) are an important and necessary mechanism to build
relationships with the Chinese consumer.
New Wisdom
Creating direct relationships with informal brand advocates on user-generated platforms like
Meilishuo may be a better path to finding future consumers than costly celebrity endorsers.
• Brands often invest in
• For brands that are more established • Many KOLs have inflated
in China (e.g., Beauty brands that entered China earlier), KOL discussions have diminishing impact on consumer perceptions.
audiences with fake fans – comprising mostly bot traffic and
faux accounts. Additionally, many
have begun feigning legitimate engagement, further reducing
their actual correlation with brand
revenues.
building relationships with
certain KOLs based on his/
her perceived fan base size
and cachet, yet the returns in
terms of reach and
awareness have historically
proven uneven.
Two active Nice app users easily outpace a “KOL” on Weibo with 2 million fans
KOL on weibo
Nice app users
VS.
40
A KOL with ~2M Weibo fans posts Roger Vivier products, generating
40 likes, 159 reposts and 65 comments from her fan base.
483
342
In contrast, two active NICE app users who
posted Roger Vivier shoes received 483 and
342 likes respectively.
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9
MARKET TREnds and new wisdom
#5/ chinese consumer spend IS INCREASING
Conventional Wisdom
Domestic consumer growth in China is slowing – we should reduce investment.
New Wisdom
Chinese consumers are spending more than ever, the majority of it outside of
mainland China. Investment must evolve to match their unique spending patterns.
• Savvy brands understand
that China’s “2%” domestic
growth is misleading; when
international purchases are
considered, that number is
significantly higher as China’s
spend abroad is 66% of total outlays.
• Additionally, Daigou – or
unauthorized resellers – are a
$15-20Bn business that is growing
nearly 33% per annum and is
both international in nature and
nearly impossible to track
effectively.
• Holidays like Golden Week
yield a significant bridge
opportunity to impact
consumer spending abroad
and build CRM capability to
drive loyalty and lifetime value
when they return home.
Daigou fill the gap between domestic prices and international prices for prestige brands
¥
30-60%
is the typical price markup for
luxury goods in China driving
consumers to alternative
purchasing options
(Business of Fashion)
60%
50%
(Bain & Company)
(Bain & Company)
of consumers have made luxury
purchases through Daigou
channels rather than from
brands or department stores
of consumers who have
never purchased from
Daigou would consider
doing so in the future
GROWTH RATE
>285,000
ACTIVE DAIGOU AGENTS
CURRENTLY ON TAOBAO
33%
2013
2014
(Jing Daily)
$ Billion
10
12
14
16
Daigou market was $12 billion in 2013 and is forecasted to exceed $16 billion in 2014
(China E-commerce Research Center)
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10
METHODOLOGY
Selection
The focus of this report is on Western brands – specifically those
headquartered in Europe, North America and Australia. Relative to
brands based in Asia, we believe those in the West face greater
cultural and business challenges in establishing brand relevancy
among Chinese consumers.
We compiled our final list of 300 companies following our evaluation
of hundreds of companies through an algorithmic scan of the
market. Those included had the highest degree of impact on the
Chinese consumer.
Brand Categories
The list of 300 brands were
placed into 7 categories:
Luxury
Chanel, Prada, Hermes
Accessible Luxury
Coach, Marc Jacobs, Kenzo
Contemporary
Kate Spade, Longchamp,
Tory Burch
High Street
Zara, Adidas, H&M
Categorization
After compiling our list of 300 brands, we organized them into
comparable peer sets, built on three dimensions:
•Primary Product Line: We recognize that many of our profiled brands sell multiple product categories like apparel, fragrances and timepieces. However, most brands selling to Chinese consumers are predominantly known for certain product types.
Beauty and Cosmetics
Clinique, Sephora, Lancôme
Jewelry, Watches,
Accessories
Cartier, Rolex, Swarowski
Multi-brand Retailers
Asos, Galeries Lafayette,
Neiman Marcus
•Brand vs. Retailer: Retailers and classic brands have different characteristics and must be evaluated accordingly.
•Pricing Category: Many brands have multiple lines at various price points ranging from the most prominent label to diffusion
labels (e.g., Burberry Prorsum vs. Burberry vs. Burberry Brit).
For the purpose of this report, we considered the most prominent line for the brand (e.g., Burberry) in the context of the Chinese market.
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11
METHODOLOGY
Inputs and Outputs
About the Algorithm
•Incorporating Disparate Data Sets: To control for the many different types of variables in our data set, we normalized all the data points according to the distribution of the variables. Using factor analyses, our Data Science and Analytics team isolated weights for different clusters
of variables.
•Defining Sub-Categories: Separate factor analyses were run for each of the dimensions (Reach, Engagement and Experience). We then used logistic regression analyses to determine Reach, Engagement
and Experience sub-scores for each brand.
•Outlier Management: In parallel, we ran a second model that standardized the value of each data point around its mean to account
for outliers. We then combined the two statistical models to derive three sub-scores (one for Reach, one for Engagement and one for Experience)
for each brand.
Data Sources
Our scan revealed over 250 discrete data points that provide a cohesive look
into how brands are interacting with the Chinese consumer. A data taxonomy
was created to map each data point to the most relevant channels.
•Social Media: Weibo, WeChat, Youku, etc.
•Search: Organic ranking, Baidu Knowledge, Baidu Brandzone, etc.
•PR/KOL: Top KOL mentions, Nice app fans, KOL blogs, etc.
•Mobile: Availability of mobile app, Quality of mobile experience,
Availability of click-to-call feature, etc.
•Website: Load time, ICP license, Availability of Chinese language
website, etc.
•E-commerce: Price markup, Delivery time, Acceptance of Chinese credit
cards, etc.
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12
METHODOLOGY
DIMENSIONS
REACH
ENGAGEMENT
EXPERIENCE
Definition
Degree to which the brand has
achieved awareness with the
Chinese consumer.
Cumulative interaction
and affinity consumers
demonstrate towards the
brand.
Extent to which the brand is
providing a positive platform
for target consumers.
Sample
Evaluative
Questions
• What is your Baidu Search
Index on PC and mobile devices?
• How actively engaged are
your Weibo fans with the
content you provide?
• How long does it take to
receive your products from
order time to delivery?
• Are popular KOLs talking
about your brand?
• How many brand fans do
you have on different social media channels?
• Do you accept Alipay?
• How many (authentic and
fake) products related to your
brand are on Tmall and on
Taobao?
• Are consumers currently
discussing and generating
content on your brand?
• Are there any “viral” videos
of your brand on Youku? 1
• What do consumers
think about your in-store
experience?
• Baidu Search Index (PC and
Mobile) – for a brand’s
English and/or Chinese name
• Average number of Weibo
comments and reposts (over
last 100 posts)
Sample
Data
Points
• Number of brand mentions by
top fashion KOLs
• Number of products related
to your brand on Taobao and
on Tmall 2
• Number of Youku videos about
your brand that have generated
over 200,000 views
• Number of brand mentions on fashion-focused forums such as Melishuo or Nice
• Whether brand has an
updated Baidu Bai-ke
• How much does it cost to
purchase your product(s)?
• Do you provide Chinese
language customer support?
• Typical delivery time
• Whether the brand accepts
Alipay
• Average price markup 3
• Availability of Chinese
language customer service
options (e.g., local phone support, live chat, email)
• Average rating on Dianping
Footnotes:
1:We define “viral” as any video with over 200,000 views
2: Even though some brand-related products on Taobao are not authentic, the total number of products on Taobao (including fake products) serve as an indicator for the popularity of the brand
3:In calculating this price markup, we took a basket of the most popular products from the brand and determined the average “all-in” price including shipping, duties, etc.
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13
METHODOLOGY
understanding the score
How we ranked the 300 brands (pages 15-19):
For each brand, we first determined 3 sub-scores that independently measure a brand’s
Reach, Engagement and Experience with the digital Chinese consumer. To fully reflect the
gradations in brand performance, the three sub-scores and final score were individually
normalized on a scale from 0 to 1000. Each brand then received a composite final score
that factored in the three sub-scores. The composite score determined the brand’s
final ranking.
We recognize important differences exist among the categories. However, we believe there
are some critical, objective measures of success for which all brands can strive.
How to interpret the category-specific rankings (see table below for page numbers):
We also separated the 300 brands into 7 categories with more comparable peers, and
re-ranked them within the category. We then assigned letter grades based on an academic
distribution curve to assess each brand’s Reach, Engagement and Experience performance.
Category Rankings Page Numbers
Luxury
p20
Accessible
Luxury p23
Interpreting Category Ranking Table
RANK
1
BRANDS
score
780
Reach
A+
Engagement
Experience
A+
A
F
Contemporary
p26
High
Street
p29
p32
Beauty
Jewelry, Watches,
Accessories
p35
Brand rank
within the
category
Total
composite
score
Brands received individually
normalized scores for Reach,
Engagement and Experience. We
converted the scores to letter grades
using academic distribution curves.
p38
Multi-brand
Retailers For further inquiries, email info@bomodagroup.com
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14
Top 300 brand rankings
Rank
brand
Rank
brand
Rank
1
21
41
2
22
42
3
23
43
4
24
44
5
25
45
6
26
46
7
27
47
8
28
48
9
29
49
10
30
50
11
31
51
12
32
52
13
33
53
14
34
54
15
35
55
16
36
56
17
37
57
18
38
58
39
59
40
60
19
brand
LOUIS VUITTON
20
Footnote: Color shading denotes decile
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15
Top 300 brand rankings
RANK
brand
Rank
brand
Rank
61
81
101
62
82
102
63
83
103
64
84
104
65
85
105
66
86
106
67
87
107
68
88
108
69
89
109
70
90
110
71
91
111
72
92
112
73
93
113
74
94
114
75
95
115
76
96
116
77
97
117
78
98
118
79
99
119
80
100
120
brand
Footnote: Color shading denotes decile
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16
Top 300 brand rankings
Rank
brand
Rank
brand
Rank
121
141
161
122
142
162
123
143
163
124
144
164
125
145
165
126
146
166
127
147
167
128
148
168
129
149
169
130
150
170
131
151
171
132
152
172
133
153
173
134
154
174
135
155
175
136
156
176
137
157
177
138
158
178
139
159
179
140
160
180
brand
Footnote: Color shading denotes decile
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17
Top 300 brand rankings
Rank
brand
Rank
brand
Rank
181
201
221
182
202
222
183
203
223
184
204
224
185
205
225
186
206
226
187
207
227
188
208
228
189
209
229
190
210
230
191
211
231
192
212
232
193
213
233
194
214
234
195
215
235
196
216
236
197
217
237
198
218
238
199
219
239
200
220
240
brand
Footnote: Color shading denotes decile
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18
Top 300 brand rankings
Rank
brand
Rank
brand
Rank
241
261
281
242
262
282
243
263
283
244
264
284
245
265
285
246
266
286
247
267
287
248
268
288
249
269
289
250
270
290
251
271
291
252
272
292
253
273
293
254
274
294
255
275
295
256
276
296
257
277
297
258
278
298
259
279
299
260
280
300
brand
Footnote: Color shading denotes decile
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19
LUXURY
RANKINGS
RANK
BRANDS
score
Reach
Engagement
Experience
1
780
A+
A+
F
2
777
A+
A+
F
3
762
A
A+
F
4
739
B+
A-
A
729
A
A
F
6
708
A-
A
F
7
696
A-
A-
D-
8
687
B-
B-
A+
9
685
A-
A-
F
10
672
B-
A
F
11
671
C
A
F
12
671
B
C
A
13
650
B
B
F
14
644
C-
A
F
15
615
B-
B-
F
16
602
C-
C-
A+
17
586
C-
B-
F
18
583
C
C+
F
19
571
C
C
F
20
565
C+
D
A
21
559
D-
A
F
22
559
D
C
A
23
551
C-
C-
F
24
541
D+
C-
F
25
522
D
B-
F
5
LOUIS VUITTON
1. CHANEL
2. DIOR
3. GUCCI
4. ARMANI
5. LOUIS VUITTON
6. HERMES
7. VALENTINO
8. BALENCIAGA
9. GIVENCHY
10. VERSACE
11. CHLOE
12. DOLCE & GABBANA
13. FENDI
14. PRADA
15. SALVATORE FERRAGAMO
16. BALLY
17. LANVIN
18. VICTORIA BECKHAM
19. BOTTEGA VENETA
20. ALEXANDER MCQUEEN
21. CELINE
22. MONCLER
23. ERMENEGILDO ZEGNA
24. LOEWE
25. SAINT LAURENT
26. ROGER VIVIER
27. MARNI
28. TOM FORD
29. JEAN PAUL GAULTIER
30. ETRO
31. LA PERLA
32. ALFRED DUNHILL
33. EMILIO PUCCI
34. GOYARD
35. MANOLO BLAHNIK
36. CHARLOTTE OLYMPIA
37. CAROLINA HERRERA
38. MAISON MARTIN MARGIELA
39. BALMAIN PARIS
40. MISSONI
41. JIMMY CHOO
42. JIL SANDER
43. LORO PIANA
44. CHRISTIAN LOUBOUTIN
45. OSCAR DE LA RENTA
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20
LUXURY
INSIGHTS
Reach:
Highest average Baidu Search Index score among all fashion brand categories
Luxury brands must pay more attention to their visibility within Baidu. Today, 44% of Luxury brands do not rank first
organically for their brand name within Baidu, and 42% of them have yet to establish a Baidu Brandzone.
High Correlation (.86) between Baidu Search Index & Baidu Bai-ke
Popular channels for Luxury brand research (e.g., Baidu Bai-ke) must reflect the desired brand image—and companies
must maintain them. Although all Luxury brands have a Baidu Bai-ke page, 71% have not been updated since 2013.
Engagement:
Highest correlation between Number of Weibo Fans & Fan Engagement
Across the 300 brands, correlation between the “Number of Fans” and “Fan Engagement” on Weibo is insignificant
(.49). However, this correlation is much stronger and significant within Luxury brands (.83).
Highest correlation between Baidu Search Index & Mentions in Secondary UGC Social Platforms
Luxury consumers searching for brands become consumers who show off their products online. There is a strong
correlation between Baidu Search Index and social sharing / photo sites such as Topit.me (.84).
Experience:
71% of Luxury brands have a Chinese language website
Luxury brands have developed localized experiences and performed solidly in this area. The majority (60%) have
developed Chinese names and 76% offer Chinese language customer support.
Only 28% of Luxury brands currently ship to China and even fewer price effectively
After successfully courting fans, Luxury brands leave those fans “at the altar” when they fail to facilitate transactions.
Of the 28% of Luxury brands that ship to China, only 4% provide a price markup of 35% or lower.
Grey and black market for Luxury goods dwarf other categories on Taobao
Average Number
of Products per
Brand on Taobao
Average Number
of Sellers per
Brand on Taobao
SUMMARY
Fans in the Luxury category are engaged, loyal and act as brand advocates. Luxury brands must
capitalize on opportunities to convert these enthusiasts into buyers. Because Luxury brand
loyalists often cannot shop directly online, resellers and non-authorized merchants have profited
within China’s e-commerce industry.
For further inquiries, email info@bomodagroup.com
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21
LUXURY
success STORY
Strength
OPPORTUNITY
REACH
Generated the most exposure by leading
KOLs on Weibo based on KOL mentions
and size of fan base, edging out Christian
Louboutin.
It’s the #1 Luxury brand sold on Taobao
stores – while it demonstrates popularity,
this is most likely not how Chanel
leadership is looking to promote its brand.
ENGAGEMENT
Most represented Luxury brand on premier
Chinese photo sharing site, Topit.me
(Chinese version of Luvocracy), with more
than double the number of images of the
runner-up, Valentino.
Relative to the size of its Weibo fan base,
engagement level per follower is well below
competitors, with average comments per
Weibo fan only 10% of Chloé’s and less
than category average.
EXPERIENCE
One of only a handful of Luxury brands to
have both a Chinese language mobile app
and a Chinese mobile-optimized site.
Chinese mobile optimization is a strong
plus, but mixing simplified Chinese
with traditional Chinese, news columns
in English and YouTube videos are all
missteps.
Weibo brand impressions for leading luxury players in 2 weeks in August
Footnote: Weibo brand impressions is a measurement of KOL contribution to brand awareness. We define it as the
number of mentions on Weibo by 154 leading Chinese KOLs multiplied by the number of each KOL’s Weibo followers
SUMMARY
Chanel is the most desired and discussed brand in our analysis. As in the West, the brand
communicates its story and values effectively. However, a lack of commitment to e-commerce
will continue to embolden Taobao operators to grow the black market for Chanel’s products.
For further inquiries, email info@bomodagroup.com
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22
accessible LUXURY
RANKINGS
RANK
BRANDS
SCORE
Reach
Engagement
Experience
1
791
A+
A
A-
2
785
A
A
A+
3
649
B-
C-
A
4
642
B
B
F
5
625
C+
B
F
6
619
C
B
F
7
613
C
C+
D-
8
601
D+
C-
A
9
557
D+
D+
A+
10
556
D+
C+
F
11
555
C-
C
F
12
544
D-
B+
F
13
544
D+
C-
D-
14
538
C-
C-
F
15
520
D+
C-
F
16
519
D-
B
F
17
514
D+
D+
F
18
511
D
C
F
19
505
D+
D+
F
20
482
D-
C-
F
21
455
D
D+
F
22
454
D+
D
F
23
453
D
D+
F
24
440
D-
D+
F
25
429
F
C-
F
1. BURBERRY
2. COACH
3. ALEXANDER WANG
4. KENZO
5. VERA WANG
6. MARC JACOBS
7. MICHAEL KORS
8. HUGO BOSS
9. STELLA MCCARTNEY
10. TOD’S
11. MOSCHINO
12. MIU MIU
13. 3.1 PHILLIP LIM
14. PORTS 1961
15. PAUL SMITH
16. RALPH LAUREN
17. MAX MARA
18. VIVIENNE WESTWOOD
19. MULBERRY
20. HOGAN
21. JASON WU
22. CARVEN
23. ROBERTO CAVALLI
24. DSQUARED2
25. JEREMY SCOTT
26. Acne 27. ESCADA
28. DEREK LAM
29. HELMUT LANG
30. SERGIO ROSSI
31. TRUSSARDI 1911
32. Viktor & rolf
33. PROENZA SCHOULER
34. AGENT PROVOCATEUR
35. NICHOLAS KIRKWOOD
36. DONNA KARAN
37. SPORTMAX
38. BADGLEY MISCHKA
39. MSGM
40. PREEN
41. REED KRAKOFF
42. JOHN VARVATOS
43. PETER PILOTTO
44. BELSTAFF
45. SMYTHSON
.
For further inquiries, email info@bomodagroup.com
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23
accessible LUXURY
INSIGHTS
Reach:
Very strong correlation (.93) between Baidu Search Index & Weibo fan count
As search interest increases, this category’s users become more engaged by joining a brand’s Weibo account.
Fan interest generally centers around a particular line or product rather than brand itself
Consumer interest is narrowly focused on a hot item. For example, the Pashli bag makes up a significant
percentage of all 3.1 Phillip Lim products on Taobao and is mentioned 1.6x more than the brand name itself
among KOLs on Weibo.
Engagement:
Luxury fans comment or repost 2.8x more often than Accessible Luxury fans
Relative lack of consumer understanding of the brands in this category makes them difficult to discuss.
Search indexes have a high correlation (.76) with Nice App
As the Nice app focuses on products to tag with brand names, Accessible Luxury brands greatly benefit through
their popular “it” items.
Experience:
High price markups have led to 39% more products on Taobao than their fashion peers
Popularity of “it products” and high all-in prices through official channels create a feeding frenzy on Taobao
where sellers compete with one another on price.
Customers are dismayed about limitations of in-store experience
Category has the lowest in-store rating on Dianping (2.9 stars out of 5). Most complaints involve the price
differentiation between Chinese and international stores.
Accessible Luxury brands trail peers in user engagement and satisfaction on Dianping
Average Number of
Reviews per Store
Listing
7.9
11.5
21.6
CONTEMPORARY
LUXURY
92.2
Average Store Star
Rating
ACCESSIBLE LUXURY
HIGH STREET
SUMMARY
Accessible Luxury brands are, for many Chinese, “the new kid on the block.” They have specific
products breaking through consumers’ consciousness. The key is to turn product awareness
into overall brand loyalty.
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24
accessible LUXURY
success STORY
Strength
OPPORTUNITY
REACH
Burberry is the top overall performer in
video. Burberry Brit’s 2014 Spring/Summer
collection received a high of 5.6M Youku
views.
WeChat and Weibo posts are sporadic and
can go dormant for periods of time.
ENGAGEMENT
Burberry is the #1 brand on the 6 leading
Bulletin Board Systems with 16x more
mentions than its category peer average.
Can increase fan activity, which is low on
a per-fan basis on multiple social channels
compared to competitors like Kenzo and
Alexander McQueen.
EXPERIENCE
Out of the 90 Luxury and Accessible
Luxury brands in our Index, Burberry alone
has an official Tmall store.
Tmall store is innovative, but lacking. The
same Bloomsbury handbag has 4 styles
showing on its Tmall store, but 27 on
Burberry’s Chinese website.
Top 10 Accessible Luxury brands by number of mentions on 6 leading Bulletin Boards
1.8M
JEREMY
SCOTT
17.8M
COACH
3.9M
VERA
WANG
8.9M
MIU MIU
3.3M
KENZO
21.5M
BURBERRY
1.3M
MOSCHINO
1.6M
TOD’S
3.7M
MARC
JACOBS
2.0M
MICHAEL
KORS
SUMMARY
Burberry is the #1 brand overall on our list for good reason; it leverages many channels
and has a consistent voice and engaging content. At the bottom of the funnel, it converts
the customer via a fully localized website and Tmall partnership.
For further inquiries, email info@bomodagroup.com
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25
CONTEMPORARY
Rankings
RANK
BRANDS
SCORE
Reach
Engagement
Experience
1
687
D+
A
A-
2
681
B-
B-
A-
3
669
C+
B+
D+
4
654
C+
A
F
5
644
B
B
F
6
629
C+
B
F
7
622
C-
C
A+
8
606
C-
B+
F
9
604
C
B-
F
10
602
C-
B-
F
11
570
C-
C
F
12
566
C-
C
F
13
558
D+
C+
F
14
553
D+
B-
F
15
544
D+
C
F
16
533
D+
D+
B+
17
519
D+
D+
F
18
515
D
C
F
19
507
D+
C-
F
20
495
D
C-
F
21
475
D+
D+
F
22
470
D-
C-
F
23
462
D+
D+
F
24
460
D+
D+
F
25
451
F
D+
D
1. UGG
2. LACOSTE
3. JUICY COUTURE
4. ECCO
5. CALVIN KLEIN
6. GUESS
7. TOMMY HILFIGER
8. DIESEL
9. KATE SPADE
10. LONGCHAMP
11. FURLA
12. TORY BURCH
13. ANNA SUI
14. ASH
15. ABERCROMBIE & FITCH
16. 7 FOR ALL MANKIND
17. NAUTICA
18. TUMI
19. STUART WEITZMAN
20. CLUB MONACO
21. DIANE VON FURSTENBERG
22. THEORY
23. AGNES B.
24. ALICE + OLIVIA
25. J.Crew
26. BEBE
27. HUNTER
28. REBECCA MINKOFF
29. MASSIMO DUTTI
30. TED BAKER LONDON
31. REPETTO
32. SANDRO
33. MAX&CO.
34. EQUIPMENT
35. KENNETH COLE
36. VINCE CAMUTO
37. FRENCH CONNECTION
38. COLE HAAN
39. VINCE
40. J BRAND
41. BROOKS BROTHERS
42. AllSaints
43. BANANA REPUBLIC
44. JEFFREY CAMPBELL
45. RAG&BONE
46. DESIGUAL
47. ST.JOHN
48. SAM EDELMAN
49. BCBGMAXAZRIA
50. ANNE KLEIN
51. ANN TAYLOR
52. BETSEY JOHNSON
53. THOMAS PINK
54. DIRK BIKKEMBERGS
55. ELIZABETH AND JAMES
56. REISS
57. L.K.BENNETT
58. VANESSA BRUNO
59. IVANKA TRUMP
60. NANETTE LEPORE
61. NICOLE MILLER
62. REBECCA TAYLOR
63. COMPTOIR DES COTONNIERS
64. GANT
65. WHISTLES
66. AG ADRIANO GOLDSCHMIED
67. LAFAYETTE 148 NEW YORK
For further inquiries, email info@bomodagroup.com
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26
CONTEMPORARY
INSIGHTS
Reach:
Only 58% of Contemporary brands have a Weibo presence and less than 33% have an official Chinese website
Contemporary brands have the lowest investment in setting up official brand presences in China across social, search
and branding.
Exceptionally weak correlation across all major variables
Contemporary brands have the lowest correlation among peers due to often unintegrated marketing and their ineffective
use of complementary platforms.
Engagement:
Compared with other fashion brand categories, Contemporary brands see on average 40% less engagement
Brand outreach is the main reason: Contemporary brands on average respond less to fan comments on social platforms
than their peers.
Correlation between KOL mentions and user discussions is virtually non-existent
Contemporary brands are often mentioned only by specific shopping-related KOLs who post frequently (~30 posts per
day) about deals and promotions.
Experience:
While over 40% ship to China, over 3/4 of those brands place a high price markup frequently hidden in the form of
exorbitant shipping fees
Chinese consumers are sensitive to the “all-in” price of a product, which includes any potential shipping and duties costs.
Only 19% of Contemporary brands have Chinese language customer service, while only 15% provide email support
in Chinese
Given the high price markup for products, Chinese consumers need better customer support to understand shipping
policies. Yet Contemporary brands offer the lowest service levels.
Contemporary brands lag peers in key Reach categories
Brandzone
Presence
Weibo
Presence
WeChat
Subscription
Account
Presence
WeChat
Service
Account
Presence
Youku
Presence
Douban
Presence
Has An
Official
Chinese
Name
Has
Chinese
Language
Website
Contemporary
3%
58%
27%
9%
3%
2%
16%
33%
Accessible Luxury
7%
61%
29%
5%
5%
10%
21%
34%
Luxury
31%
82%
29%
18%
20%
4%
60%
71%
High Street
22%
78%
42%
20%
5%
20%
34%
66%
SUMMARY
Contemporary brands as a whole look to “get married” before the first date — they want consumers
to commit first before they make a reciprocal investment. They need more upstream activity to
create brand interest and greater investment downstream to turn interest into purchases and loyalty.
For further inquiries, email info@bomodagroup.com
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27
CONTEMPORARY
success STORY
Strength
OPPORTUNITY
REACH
UGG has approximately 4 million Baidu
Bai-ke views, 10x the average of its peers.
UGG’s number of Nice fans trail category
average by 33% and peers like Juicy
Couture and Diesel by a wider margin.
Nice is the perfect app for UGG’s target
consumer base.
ENGAGEMENT
Very respectable 49 user reviews per
location across its Shanghai stores on
Dianping, 2.2x higher than the average
brand within this category.
Weibo user discussion is 10.4x higher than
the average brand in this category. But
Daigou resellers lead the discussions. They
are 15 of the first 20 users displayed when
searching for UGG within Weibo; 12 of them
have larger fan followings than UGG’s official
account.
EXPERIENCE
Differs from other brands within this
category with an editorialized tone of
voice on its WeChat. Includes inspirational
photos to help illustrate its brand story,
which complement its clever use of
WeChat features.
Most products have a 95%+ price markup
in China compared to the U.S. price. Given
Chinese consumers’ awareness of foreign
prices, the high markup has yielded 24K
products on Taobao sold by over 3K
unauthorized sellers (2.8x the average).
UGG leverages emotional imagery and voice on Wechat to
entice user
UGG Moment - “Experience
the Irreplaceable”
Nautica – “Evolution of
the Classic Stripes”
VS.
UGG = Inspirational and
emotion focused
SUMMARY
UGG reflects the common
challenge for this category relative
to its peers. UGG outperforms its
category competitors with a true
investment in online and offline
markets. Yet, UGG struggles to
get consumers to “lean in” and
engage at the same level as other
category leaders. A common
refrain in user feedback is the
“lack of differentiation” as either
an aspirational line or fast fashion
that can consistently excite
younger consumers.
Nautica = Standard productoriented images
For further inquiries, email info@bomodagroup.com
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28
high street
Rankings
RANK
BRANDS
SCORE
Reach
Engagement
Experience
1
789
A
A
A-
2
787
B
A+
A+
3
770
A-
A
A+
4
758
B+
A
A
5
721
B
B+
A+
6
714
B
B
A+
7
706
C+
B+
A+
8
698
A-
A
F
9
693
C
A+
F
10
692
A
B+
F
11
683
C
B+
A
12
681
D+
A-
A+
13
655
B-
A-
F
14
633
D+
B
C
15
571
C-
C+
F
16
556
D-
B+
F
17
549
D+
B-
F
18
539
D+
C-
D-
19
517
D
C
F
20
500
D+
D
C-
21
495
D+
D+
F
22
487
D-
D
A+
23
486
F
B-
C-
24
480
D+
D
C-
25
471
D
C-
F
1. ADIDAS
2. NIKE
3. CONVERSE
4. ZARA
5. PUMA
6. LEVI’S
7. MANGO
8. NEW BALANCE
9. LEE
10. VANS
11. FOREVER 21
12. GAP
13. H&M
14. CROCS
15. TOPSHOP
16. VICTORIA’S SECRET
17. NINE WEST
18. AMERICAN APPAREL
19. C&A
20. FREE PEOPLE
21. BERSHKA
22. OLD NAVY
23. NEXT
24. AMERICAN EAGLE OUTFITTERS
25. STEVE MADDEN
26. ROXY
27. PULL & BEAR
28. SUPERDRY
29. WILDFOX
30. TOMS
31. HAVAIANAS
32. NEW LOOK
33. QUIKSILVER
34. JOAN & DAVID
35. RIVER ISLAND
36. UNITED COLORS OF BENETTON
37. PRIMARK
38. ANTHROPOLOGIE
39. MISS SELFRIDGE
40. LUCKY BRAND
41. JOE FRESH
For further inquiries, email info@bomodagroup.com
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29
high street
INSIGHTS
Reach:
High Street brands have the highest average number of Weibo fans among fashion brands
On average, High Street brands have ~254,000 fans on Weibo, 40% higher than the average brand. High Street brands with a
Weibo account have total scores that are 20% higher than competitors without Weibo accounts on key search indexes.
High Street brands are not leveraging the full extent of search services
Only 28% of High Street brands invested in Baidu Brandzone, and only 7% have used Baidu’s Official Customer Support Listing.
Engagement:
High correlation between number of physical retail stores and user-generated engagement
High Street brands have the highest average number of physical locations, which has a strong and positive correlation to
online engagement in areas such as Weibo mentions by users (.79).
Although brands without retail locations have a lower fan count, their fans are 1.3x more likely to repost, and 3x as likely
to comment as brands with a retail footprint
Topics such as cross-border commerce, also known as Haitao, are growing as discussion points.
Experience:
Only 7% of High Street brands with retail presence provide store directions with a China map plug-in
Lack of use of China map plug-ins and other physical location tie-ins confuse the user.
High Street brands with a 35%+ price markup have almost twice as many products on Taobao
21% of High Street brands charge over 35% in price markup when shipping into China. However, only half accept Alipay or
Chinese credit cards.
Price markup compared with level of payment services provided
SUMMARY
High Street brands that have
invested in retail locations in China
should pay attention to online/offline
integration. Even high-performing
brands like Converse—with stores in
31 provinces and an active presence
on Weibo, WeChat, Douban and
Youku—fail to make references to
local store locations across all their
digital channels. In the last year, this
has led to over 25,000 questions on
Baidu Knowledge about where to
find Converse stores.
For further inquiries, email info@bomodagroup.com
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30
high street
success STORY
Strength
OPPORTUNITY
REACH
Most Weibo followers in category (6x more
than Nike’s main Weibo). Average of 8x the
reposts per post and 7x the comments per
post of its peers.
Currently much lower KOL amplification
than other leading High Street brands;
Forever 21 has 10x and Converse 8x more
KOL impressions than Adidas.
ENGAGEMENT
Tied with Zara for most brand-related
photo posts on leading UGC platform,
Meilishuo, with more than 38K pictures,
miles ahead of its closest competitor
Topshop with 7K.
Brand-related content is not getting the
same level of reception on Toutiao relative
to peers in the category. Adidas has
9.3 saves and 7.3 likes in brand-related
articles, which are 75% and 30% lower
than the category averages, respectively.
EXPERIENCE
Provides key options including a highquality, fully mobile-optimized version of its
Chinese website, click-to-call in Chinese,
and a Chinese-language mobile app.
Doesn’t provide consumers estimated
delivery time even after placing an order*
or accept payment on delivery, unlike other
competitors such as Converse and Nike.
* Note: our staff attempted to contact via email and Weibo but did
not receive a reply
Top 5 Brands’ Weibo Engagement Metrics by:
Number of comments per post
1
2
3
4
5
Number of reposts per post
244
190
123
96
44
1
2
3
4
5
97
95
75
64
21
SUMMARY
Adidas was an early mover in owning its China retail presence, establishing a position that
entrenched it against large aggressive challengers (such as Nike) in consumers’ hearts and
minds. Consumers have welcomed the move into fashion with Adidas Originals, ensuring fresh
positioning and continued brand loyalty.
For further inquiries, email info@bomodagroup.com
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31
BEAUTY & cosmetics
Rankings
RANK
BRANDS
SCORE
Reach
Engagement
Experience
1
768
A
A
A
2
753
A-
A-
A+
3
752
A-
A-
A+
4
750
A
A-
A
5
736
B
A-
A+
6
733
B+
A-
A
7
730
B
A-
A
8
729
C+
A
A
9
693
A-
A-
F
10
686
B-
B-
A
11
681
C-
B+
A
12
673
A
B
F
13
661
B+
B+
F
14
658
B-
C
A
15
639
C
A-
F
16
632
C-
C
A+
17
617
D
B-
A+
18
600
B-
C+
F
19
590
C-
D+
A+
20
580
C-
C
F
21
551
C-
C-
F
22
447
D
D+
F
23
427
D
D
F
24
390
F
D+
F
25
384
D
D-
F
1. LANCOME
2. ESTEE LAUDER
3. SEPHORA
4. KIEHLS SINCE 1851
5. CLINIQUE
6. LA MER
7. BENEFIT
8. M.A.C
9. L’OREAL
10. CLARINS
11. ORIGINS
12. MAYBELLINE
13. GUERLAIN
14. SISLEY PARIS
15. FRESH
16. BOBBI BROWN
17. L’OCCITANE
18. MARY KAY
19. CLARISONIC
20. JURLIQUE
21. ELIZABETH ARDEN
22. NARS
23. JO MALONE
24. PHILOSOPHY
25. MAKEUP FOREVER
26. LAURA MERCIER
27. URBAN DECAY
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32
BEAUTY & cosmetics
INSIGHTS
Reach:
Among all the categories, Beauty has the highest Reach footprint
93% of beauty companies have a Weibo presence compared to only 69% of all companies in our index.
Beauty brands have the best known Chinese names
Chinese name searches for Beauty brands are 2-3x higher than other categories, reflecting their localization efforts.
Engagement:
Consumers have greater accessibility and more favorable in-store experiences with Beauty companies, which is
reflected in their Dianping rating
In Shanghai, there were on average 9 Dianping store listings for Beauty brands - 33% more than all brands. Sephora leads the
category with 30 store listings. Consumers also gave beauty brands 39% higher ratings than their peer average.
Some user-generated platforms provide less upside for Beauty brands
Social channels that focus on highly visual images, such as Meilishuo, Mogujie and Nice, are less effective
for Beauty brands since their products are more difficult to display.
Experience:
Reflecting their maturity in China, Beauty brands provide the greatest level of localization in both positioning and
product curation
Beauty brands are 2x more likely to have both an official Chinese name and a Chinese website. Both their e-commerce and
retail stores cater to their target consumers’ preferences, with a much more tailored offering.
Beauty is the dominant category leader in providing a positive e-commerce experience
Beauty brands are 2x more likely to have payment and delivery options that are friendly to the consumer (e.g., accepting
Alipay, posting prices in RMB, and shipping to China). 48% of Beauty brands have an e-commerce FAQ, and they are 4x
more likely to have Chinese live chat options.
The strength of Beauty brands in key experience metrics
Payment and Delivery
Place Orders
in RMB
Prices Displayed
in RMB
Accepts
Alipay
Accepts Chinese
Billing Address
Ships to
China
Beauty Brands
52%
52%
52%
52%
52%
All Brands
24%
24%
18%
38%
39%
Customer Service and Localization Efforts
Availability of Chinese
Customer Service Line
Availability of
Chinese Live Chat
Chinese
E-Commerce FAQ
Has Official
Chinese Name
Has Chinese
Website
Beauty Brands
81%
30%
48%
81%
93%
All Brands
34%
7%
20%
40%
55%
SUMMARY
Reflecting their tenure in the Chinese market (the first foreign cosmetics company entered
China in 1980), Beauty is the clear leader across all 7 categories, with 75% of Beauty brands in
the top third of our rankings. This raises the bar for new entrants and smaller brands to compete
effectively, as the incumbents have invested significantly in localization and consumer outreach
and engagement.
For further inquiries, email info@bomodagroup.com
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33
BEAUTY & cosmetics
SUCCESS STORY
Strength
OPPORTUNITY
REACH
Given its high search volume, Lancôme
has invested wisely in its search strategy.
It has an optimized Baidu Brandzone that
links to popular products and promotions,
and its official Chinese website appears 4
times within first page of Baidu (vs. category
average of 2.7).
Its English-language website (which does
not geo-direct China-based users to the
Chinese website) appears as the second
result on the first page of Baidu search
results. This is a disruption to its otherwise
good search performance.
ENGAGEMENT
Strategically enlists different types of
KOLs at various points in the consumer
journey. Trendsetting bloggers introduce
new products, followed by influential beauty
bloggers posting tutorials and reviews.
Finally, shopping bloggers share promotions.
Frequently uses raffles on Weibo for shortterm benefit. From Aug. 28 to Sept. 1, four
raffles resulted in growth of 500+ new
fans/day. Yet average fan growth dropped
89% the following week.
EXPERIENCE
Capitalized on Chinese consumers’ habit
of giving brand and product nicknames by
creating catchy names for its most popular
products, such as the translated term “Little
Black Bottle” for Advanced Genifique.
Lancôme provides subpar customer
service for first time and mobile users. Live
chat is offered only for members and is not
offered on mobile devices. Click-to-call is
hidden on a dropdown menu on mobile.
Lancôme strategically leverages KOLs to support user journey
1) Inital broadcast to drive Awareness
Fashion/beauty focused website
Haibao with 587K fans on Weibo
posted Lancôme's new summer lip
product for wide broadcast.
2) Makeup tutorial to drive Intent to Purchase
Beauty blogger 讨厌讨厌 5200 with
115K fans posted a tutorial on how to
achieve a highly trendy look using
Lancôme’s new lip products.
3) Promotion to drive Conversion
Shopping blog Deal Moon frequently
posts about the newest Lancôme sales
and promotions, both of which
stimulate conversion.
SUMMARY
With a long history in the China market, Lancôme provides a well-rounded customer experience
with each element in its digital marketing arsenal. This allows potential consumers to have a holistic,
smooth experience throughout the consumer journey.
For further inquiries, email info@bomodagroup.com
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34
Jewelry, watches and accessories
Rankings
RANK
BRANDS
SCORE
Reach
Engagement
Experience
1
744
B
A
A-
2
702
A
A
F
3
693
B
B-
B+
4
680
A-
A-
F
5
677
A-
A-
F
6
670
A
B
F
7
665
B+
B+
F
8
658
A
B-
F
9
640
C
C+
B-
10
625
C+
B
F
11
620
C-
C-
A+
12
618
B
C+
F
13
618
C
B
F
14
599
B-
C+
F
15
559
C-
C-
F
16
558
D+
B-
F
17
552
C+
D+
F
18
542
D
B
F
19
539
D
C+
F
20
506
D+
D+
F
21
501
D+
C-
F
22
498
D+
D+
F
23
489
D+
D+
F
24
485
D
C-
F
25
483
D-
C-
F
1. SWAROVSKI
2. CARTIER
3. RAY-BAN
4. LONGINES
5. OMEGA
6. TIFFANY & CO.
7. BVLGARI
8. PIAGET
9. FOLLI FOLLIE
10. TISSOT
11. FOSSIL
12. MONTBLANC
13. SWATCH
14. VAN CLEEF & ARPELS
15. VACHERON CONSTANTIN
16. PANDORA
17. BLANCPAIN
18. ROLEX
19. CHAUMET
20. TAG HEUER
21. GIRARD-PERREGAUX
22. CHOPARD
23. BOUCHERON
24. TIMEX
25. ZENITH
26. IWC SCHAFFHAUSEN
27. AUDEMARS PIGUET
28. BREGUET
29. HARRY WINSTON
30. PATEK PHILIPPE
31. TUDOR
32. POMELLATO
33. LINKS OF LONDON
34. PAMELA LOVE
35. IPPOLITA
36. TACORI
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35
JEWELRY, WATCHES AND ACCESSORIES
INSIGHTS
Reach:
Chinese names are better known than English names
Most Accessory brand consumers are older and less proficient in English, so these companies have invested more in branding
their Chinese names. This yields better reach and brand recall and allows Western brands to compete with domestic brands such
as Chow Tai Fook.
Accessory brands make a large investment in establishing an official online presence, but they have average scores in Reach
Accessory brands are visible on an average of 4.3 Chinese online social platforms (average for all brands is 2.7). However, their
average Reach score is ranked third, behind Beauty and Luxury brands.
Engagement:
Accessory brands have the highest average number of comments per fan on retailer-focused discussion boards and sites
Accessory consumers predominantly make purchases at offline retail locations across the country, so fans often leave customer
service comments under Weibo posts and want to interact with the brand within their Weibo page. However, even brands that
rank in the top 5 often ignore legitimate complaints and questions.
While Accessory brands have made a significant investment in creating video assets, consumer views and engagement are
relatively low
9 out of 10 Accessory brands have created an official brand channel on Youku. However, only 1% of their videos receive more
than 200,000 views.
Experience:
75% of Accessory brands have a mobile-optimized Chinese website
A majority of Accessory brands have developed a Chinese mobile website to better optimize mobile users’ shopping experience.
Despite the high volume of mobile-generated searches, only 44% of the indexed companies invested in mobile search
advertising
61% of brands who advertise on mobile provide a link to their store locator via the Google Map plugin, which does not function
properly in China.
Mobile user investment largely remains superficial
OUT OF ALL ACCESSORY BRANDS
75%
HAVE
CHINESE
MOBILE SITE
44%
INVESTED IN
PAID SEARCH
ON MOBILE
27%
LINK TO STORE LOCATOR
WITHIN PAID SEARCH
0%
USE VIEWABLE
CHINESE MAP
PLUGIN
SUMMARY
Mobile plays a huge part in how potential Chinese consumers interact with brands, so it is
important for companies to deliver a consistent, premium experience. Although some Accessory
brands have sought to create great user experiences on mobile, there’s still a disconnect between
the online and offline experience. From providing functional directions and store plug-ins to click-tocall opportunities and online customer support, these brands need to better streamline the online
shopping experience for Chinese consumers.
For further inquiries, email info@bomodagroup.com
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36
JEWELRY, WATCHES AND ACCESSORIES
SUCCESS STORY
Strength
Opportunity
REACH
One of the best performers across several
key Baidu metrics including both PC and
mobile Baidu Search Index, Baidu Bai-ke
views, and Baidu News mentions.
While brand is strong in Baidu, it has
not updated its Bai-ke page since 2013.
Consumers are willing and eager to
engage – only to find outdated products
and messaging.
ENGAGEMENT
Users ask 2.7x more questions about
Swarovski on Baidu Knowledge than other
brands in the category. Questions involve
both the brand and its products. UGC
answers typically include “high quality”
and “among best in the world.”
Highly reviewed on UGC review sites,
but the average rating and feedback is
less positive compared to peers like
Pandora, Tiffany & Co., Chaumet and
Van Cleef & Arpels.
EXPERIENCE
Among our 37 Accessory brands that
ship to China, Swarovski is the only brand
that offers dedicated Chinese language
customer service via live chat, email, and a
toll-free line.
While Swarovski uses Alipay as a payment
option, it should join other leading brands
to accept payment via Chinese credit card
(i.e., China UnionPay).
SUMMARY
While Swarovski does an
exceptional job with most
of the key e-commerce
features, to thrive online
in China it needs to
address the large pricing
disparity between their
Chinese and Western
sites. Our calculated
difference for Swarovski
is on average greater
than 50% vs. prices in
the U.S.
Swarovski’s high quality customer service page showing
various contact method options
Two customer
service lines,
(800-819-0021)
one of which is
toll free
Customer
Service Time
Email
Live Chat
Accepts
Alipay and pay
on delivery
For further inquiries, email info@bomodagroup.com
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37
multi-brand RETAILERS
Rankings
RANK
BRANDS
SCORE
Reach
Engagement
Experience
1
667
B-
C+
A
2
551
C-
C-
D-
3
520
D
D+
C-
4
472
D
D
A
5
462
D
D
D+
6
454
F
C+
F
7
433
F
D
A
8
420
D
D
F
9
414
D-
D
F
10
396
F
D+
D
11
387
D-
D-
F
12
377
F
D
F
13
375
F
D+
F
14
373
F
D
F
15
367
F
D
F
16
367
F
D
F
17
342
F
D
F
18
341
F
D-
F
19
339
F
D-
D
20
339
D-
D-
F
21
332
F
D-
F
22
325
D
F
C-
23
323
D-
F
F
24
315
D
F
C
25
311
F
D-
F
1. ASOS
2. SHOPBOP
3. NEIMAN MARCUS
4. the OUTNET
5. NET-A-PORTER
6. 6PM
7. YOOX
8. GALERIES LAFAYETTE
9. HARRODS
10. MACY’S
11. MARKS & SPENCER
12. HARVEY NICHOLS
13. PRINTEMPS
14. OPENING CEREMONY
15. URBAN OUTFITTERS
16. SELFRIDGES & CO
17. ZAPPOS
18. SAKS FIFTH AVENUE
19. BLOOMINGDALE’S
20. BERGDORF GOODMAN
21. BARNEYS NEW YORK
22. REVOLVE CLOTHING
23. FARFETCH
24. LUISAVIAROMA
25. NASTY GAL
26. BLUEFLY
27. SSENSE
28. MYHABIT
29. DOVER STREET MARKET
30. NORDSTROM
31. LORD & TAYLOR
32. MYTHERESA
33. HAUTELOOK
34. MATCHESFASHION
35. MY-WARDROBE
36. INTERMIX
37. PIPERLIME
38. STYLEBOP
39. FORWARD BY ELYSE WALKER
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38
multi-brand RETAILERS
INSIGHTS
Reach:
Reach score for Retailers is 2-3x lower than for brands
Without such staples as a physical presence or a localized Chinese name, Retailers have difficulty increasing awareness of their
unique brand.
Working with the right KOLs can help Retailers establish brand awareness, but there must be follow-up engagement
Revolve Clothing partnered with a KOL known for his knowledge of “handbags,” delivering 400% of the company’s average
daily fan growth and generating more than 800 comments and 1,100 reposts. However soon after, traffic reverted to prior levels.
Engagement:
Retailers are mentioned on leading BBS more than 400,000 times
Despite their difficulties in generating brand awareness, early Haitao adopters have become retailer evangelists, showing off
their purchases on social media and BBS.
Weibo Fan Count is highly correlated with Search performance
For Retailers with physical location, the correlation between Weibo fan count and Baidu Search Index is impressive (0.97). Fan
interest on social media definitively drives brand interest as evidenced in search data.
Experience:
There is a negative correlation between length of brand name in English and Baidu Search Index
Chinese consumers have a difficult time remembering unfamiliar English names of Retailers. Currently, only three Retailers have
a Chinese name, and on average the Baidu Search Index score of their Chinese name is 33% higher than their English name.
Chinese consumers have devised unofficial Chinese names or nicknames for some Retailers that receive 75% higher Baidu
Search Index scores than their official English names.
Only 12% of Retailers have an official WeChat presence
Social platforms help bridge the gap between Chinese consumers and Western Retailers, but very few of them have accounts
on social media. This makes it difficult for consumers to engage in a two-way dialogue with the brand.
The Benefit and Shortcomings of KOL Involvment
Though the KOL generated
400% more new fans after
his mention of the retailer’s
handbags, fan growth
quickly returned to normal
volume after 3 days.
NUMBER OF NEW FANS / DAY
DAY 15
KOL MENTIONS BRAND
DAY O
DAY 18
SUMMARY
Retailers must take advantage of their diverse brands and products to increase consumer
awareness, especially about products difficult to access in China. Retailers should also pay
attention to Haitaos, a growing phenomenon within China where consumers buy from overseas
Retailers as they look for better quality, selection and price. Haitaos are often early adopters and
by interacting with them, Retailers can address areas of confusion and help build a future fan base. For further inquiries, email info@bomodagroup.com
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39
multi-brand RETAILERS
SUCCESS STORY
Strength
Opportunity
REACH
Asos is the most active publisher on
WeChat across all 138 brands that have a
WeChat account, posting 27 times in July.
No dedicated Baidu Bai-ke profile, which
is necessary to establish legitimacy with
prospective customers.
ENGAGEMENT
#1 Retailer on leading UGC social
platforms Meilishuo and Huaban with
over 8K and 12K products displayed
respectively.
Needs to increase engagement rates.
Shopbop has 3-6x higher engagement with
its followers on Weibo than Asos.
EXPERIENCE
Has an excellent e-commerce user
experience on its Chinese language
website with Chinese live chat, pricing in
RMB and Alipay payment option.
Chinese website has most local e-commerce
features, but limited selection. Has only 80
dresses on the Chinese site, but over 2,000
on each of its U.K. and U.S. sites.
Most active brands in Bomoda Brand Index as measured by WeChat Post Frequency per month (July 2014)
25
24
27
23
19
SUMMARY
Asos has made a clear investment in China in both localization and social media. However
compared to its efforts in site merchandising, Facebook / Twitter user engagement and Google
search for its English language site, the overall user experience in China can be improved.
For further inquiries, email info@bomodagroup.com
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40
CONCLUSION
As more Chinese consumers encounter Western brands, first impressions
mean everything. The market is dynamic. But companies that best
engage consumers today will emerge on the fast track with the world’s
biggest market for decades to come.
Through our research and partnerships, we’ve learned several things.
The top-ranked companies in our report share five strategic approaches
that unite their activities. Generally, brands that enjoy the greatest success
in China have the highest alignment with these five principles.
1. They Build for the Chinese Consumer Journey - Chinese consumers have unique paths to discovery, engagement and purchase. Only accurate data and sustained analysis can yield a true view of where, when and how different cohorts buy — and their implications for product and marketing strategy.
2. They Localize - Every element of a brand’s approach must be matched to China’s distinct cultural characteristics. Great brands know how to adapt language, work with neighborhood players, leverage existing platforms and adjust strategy to fit the market.
3. They Price Competitively - Brands must start to compete with their own products’ prices overseas. Chinese consumers research prodigiously; a 30-100% premium is untenable for them. They will simply seek other paths to purchase.
4. They Develop Authentic Brand Advocates - Advocacy overwhelmingly influences consumer behavior in China. Today, most brands seek to buy their way into the hearts of consumers through sponsorship, often to little effect. Savvier brands realize advocacy is best developed through sustained, creative, customized participation across an array of channels.
5. They Embrace Mobile Commerce - Alibaba and WeChat’s dominance have “spoiled” the Chinese consumer, setting an expectation for simple and elegant
mobile commerce experiences. Brands must compete as well as partner with these
bellwethers to own their own destiny.
The Bomoda Brand Index is a blueprint for better brand reach,
engagement and experience in China. It is designed to be thoughtprovoking—and to compel you to put these insights into practice.
Please contact me to learn more about our data, our brand-specific
reports and our services. I look forward to conversing with you about
the world’s most important market.
Brian Buchwald
Bomoda Group Co-Founder and CEO
Email: brian.buchwald@bomodagroup.com
For further inquiries, email info@bomodagroup.com
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41
About us
overview of bomoda group
At Bomoda Group, our mission is to make China simple, clear and profitable
for the world’s best brands.
Bomoda’s team of market experts, data scientists and strategists help companies
make sense of the Chinese market. Our data team partners with brands by
pulling and assessing hundreds of data points from digital and retail. Our
strategists leverage these insights to create a foundation for profitable growth.
SERVICES
ANALYTICS PLATFORM
Bomoda has built a powerful data platform that holistically measures brand
performance in China. Derived from publicly available information, we incorporate
hundreds of data points from social media, search, e-commerce, mobile and more.
Our dashboard yields a clear view of a brand’s traction in-market and abroad,
supported by our algorithms, which helps identify the Key Performance Indicators that
match with success. This dashboard and algorithm can focus on brands, product lines
and individual SKUs.
CLIENT DATA INTEGRATION
Fusing our market intelligence with our clients’ proprietary data, our team partners
with brands to create a fully-realized view of their performance and opportunity. We
integrate with a diverse array of data sources, including CRM, analytics (e.g., GA/
Omniture) and Point-of-Sale systems, gleaning insights that serve as cornerstones
for growth.
COMPETITIVE TRACKING
Moving beyond our clients’ data, we provide critical insight into competitive sets—
helping our clients track specific competitor and general industry performance.
This information is delivered alongside client data, facilitating simple comparison
and trend identification.
STRATEGIC ANALYSIS
With data as our foundation, we partner with clients to create potent, sustainable
approaches to the China opportunity. Our consulting sessions help our customers
develop essential, market-specific roadmaps for measurable improvement, supporting
better decision-making, customer development and product alignment.
For further inquiries, email info@bomodagroup.com
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42
About us
key contributors
Research and Insights
Data Science and Analytics
Brian Buchwald
Co-Founder & Chief Executive Officer
Brian co-founded Bomoda in 2012 after spending over a decade focused
on advertising technology and digital media with notable companies like
NBC Universal and DoubleClick. As an EVP at NBC, Brian helped oversee
the creation of Hulu and led the NBC operations from its conception through
beta launch. He began his career as an investment banker with Morgan
Stanley. Brian has a BA from Dartmouth College.
Lawrence Choi is a Managing Director at YouGov, a preeminent
international online market research firm. He holds 5 patents for
segmentation modeling, and has over 17 years of experience building
statistically-based analytical models to advise senior executives at
leading global companies. Prior to YouGov, he co-founded Clear Horizons
(later acquired by YouGov), a boutique consulting firm focused on using
quantitative methods to support senior marketing executives in financial
services, information technology, e-commerce, healthcare, and news/
media. He has published numerous articles on his research and models
in Pharmaceutical Executive, Journal of Refractive Surgery, and American
Banker. Lawrence graduated summa cum laude from Princeton University.
Suki Sun
Co-Founder & China Research Lead
Suki co-founded Bomoda in 2012, and currently oversees the China
Research team. She has over 13 years of executive experience with
top Chinese fashion and lifestyle media brands and in digital PR. Suki
previously served as Executive Editor-in-Chief of Seventeen Magazine
China, Editor-in-Chief of TimeOut Shanghai, and Features Editor of ELLE
China. Suki has a BA from Fudan University in Shanghai.
Alain Rothstein
Co-Founder & Chief Operating Officer
Alain co-founded Bomoda and serves as our COO. He brings over 20 years
of experience investing in and helping manage high growth businesses. He
was a founding member of Vicente Capital Partners, a $165 million growth
equity fund. Before Vicente Capital, Alain was a principal at Kline Hawkes &
Co. Alain holds a BA from the University of Pennsylvania.
Iris Yen
International Advisory & Client Services Lead
Iris leads Bomoda’s Advisory and Client Services. She has 10 years
experience in quantitative strategy consulting. Previously Iris served
as an Engagement Manager at McKinsey. She also was employed by
Rosetta, leveraging its proprietary algorithm to provide data-driven insights
to Fortune 500 clients. She has BA/BS degrees from the University of
Pennsylvania and a JD-MBA from Northwestern University.
Jessica Yao
Insights Lead
Jessica is the Insights Lead at Bomoda. An expert in digital marketing on
China luxury and retail, Jessica specializes in discovering actionable brand
and industry trends. Prior to Bomoda, she oversaw consulting services on
social media, search optimization, and digital marketing at Morpheus Media
for luxury clients entering China, such as LVMH and Gucci Group. Jessica
has a BA from the University of Illinois.
Joshua Neckes
Chief Revenue Officer
Josh brings over 10 years of experience working with major brands on their
digital and geographic expansion opportunities. He led strategic planning
and brand strategy engagements for companies such as Make Up For Ever,
Joe’s Jeans, Danone, Coca-Cola, and FedEx. Previously he served as VP of
Marketing at Group Commerce. Josh has a BA from Oberlin College.
Greg Hochmuth was employee #7 at Instagram where he served in a
variety of roles such as mobile engineer, data analyst and product manager.
Before Instagram, he was a product manager at Google for the Chrome
& AdSense teams. Greg started his career with Hasso Plattner Ventures
in Berlin as the firm’s lead analyst and Entrepreneur-in-Residence. Greg
obtained his BS in Computer Science from Stanford University, where he
also also studied design. He currently serves as the founder of DADA, a
data agency that helps companies build the tools, integrations and internal
capacity to better understand and work with their data.
David A. Schweidel is Associate Professor of Marketing and Co-Director of
Emory Marketing Analytics Center (EmoryMAC) at the Goizueta Business
School of Emory University. David’s research focuses on developing
statistical models to understand customer behavior and inform managerial
decisions. His award-winning research has been published in various
leading academic journals, and he has been recognized as a leading
scholar by the Marketing Science Institute. In addition, he co-authored
Social Media Intelligence, in which he discusses how organizations can
leverage social media data to inform their marketing strategies. David
received his BA in Mathematics, MA in Statistics, and PhD in Marketing from
the University of Pennsylvania.
James Weiss is a seasoned marketing and analytics executive and key
advisor to Bomoda. He is currently a business leader at Palantir, a worldrenowned big data organization. James has been a Board level advisor to
several successful startups and previously co-founded SK Energy, one of
the nation’s fastest-growing beverages. Prior to SK Energy, James was a
Principal with Bain & Company, where he specialized in media and financial
services and counseled many of the nation’s leading companies and private
investors. He graduated from Princeton and has an MBA from the Wharton
School at the University of Pennsylvania, where he was an Omnicom Fellow.
Siwei Zhu is an expert in the field of Chinese consumer behavior,
innovation and digital trends. He co-authored the book Swindlers, Fools and
Maniacs (to be published in fall 2014), in which he discusses the rational
and irrational financial behavior of Chinese investors. Siwei previously
worked for CCTV, the largest national television network in China, where
he developed a deep understanding of consumer behavior and trends
through audience surveys. He received his BS in electrical and information
engineering from Beijing Information Science Technology University, and
a MS in information systems from NJIT. He is currently pursuing his PhD in
innovation management.
Acknowledgements
Bomoda Group would like to thank the following members for their
invaluable contributions: Yu-Hsuan Huang; Jade Wang; Franny Hsiao;
Caroline Chen; Wenna He; Sue Shen; Pengfei Gu; Anna Li; Jueling Li;
Michelle Liu; Luna Lu; Kang Ma; Lisa Quach; Qi Shao; Lingxuan Tang;
Lily Wang; Elvely Xu; Kimi Yao; Diane Zang; Zhen Zhang; Wenqing
Zhuang; and Iris Kong.
For further inquiries, email info@bomodagroup.com
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43
APPENDIX: GLOSSARY
Industry and market terms
DEFINITION
BBS
Acronym for Bulletin Board System, serves as an online discussion forum
focused on a specific topic. Members hold conversations in the form of
posted messages (often with images) on message boards.
KOL
Acronym for Key Opinion Leader, also known as Key Influencer. Often refers to
fashion bloggers and celebrities who can have strong impact on fashion and
market trends due to their large fan following (often on social media platforms).
UGC
Acronym for User-Generated Content, referring to content posted by users
without direct brand interference.
Haitao
海淘
Chinese term for Overseas Online Shopping, which is a growing phenomenon
within China where consumers buy from overseas retailers as they look for
better quality, selection, and price.
Daigou
代购
Chinese term for Unauthorized Independent Resellers, who resell products
purchased overseas to the Chinese consumer. Often active on marketplaces
such as Taobao, and social platforms such as Weibo & WeChat.
Golden Week
十一黄金周
An annual 7-day national holiday in mainland China celebrating National Day
beginning around Oct 1. Paid days off are given during Golden Week, which
results in greatly increased travel and consumption activities among Chinese
residents.
Chow Tai Fook
周大福
Chow Tai Fook Jewelry is a jewelry retailer popular in the Mandarin and
Cantonese-speaking world. The brand has retail locations in several
countries, including over 2,000 retail stores in mainland China.
China UnionPay
中国银联
China UnionPay (also known as CUP) is the only interbank network in China
and a preferred payment method for Chinese consumers.
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APPENDIX: GLOSSARY
ALIBABA operated
DEFINITION
Alipay
支付宝
Paypal equivalent for China
Alipay is China’s leading third-party online payment platform used by
individuals and businesses. Used commonly for online transactions, Alipay
mitigates issues with unsafe online transactions by only releasing payment to
the seller once the consumer has received his/her goods.
Taobao
淘宝
eBay equivalent for China
Taobao is a Chinese consumer-to-consumer online marketplace providing
small businesses or individuals online stores that cater to consumers in China
and overseas.
Tmall
天猫
Amazon Marketplace equivalent for brands
Business-to-consumer online marketplace spun off from Taobao. It differentiates
from Taobao by recruiting international and local brands and authorized
distributors as well as providing privileges to authentic sellers.
SOCIAL PLATFORMS
DEFINITION
Sina Weibo (commonly
referred to as “Weibo”)
新浪微博
Similar to Twitter; web and mobile app
Sina Weibo is a Chinese microblogging website. Akin to a hybrid of Twitter and
Facebook, it is one of the most popular sites in China.
WeChat (Subscription
account)
腾讯微信 (订阅号)
Similar to Whatsapp; mobile app
WeChat is a mobile text and voice messaging communication service
developed by Tencent in China and is the nation’s largest standalone
messaging app by monthly active users. Brands use WeChat subscription
accounts to push content.
WeChat (Service account)
腾讯微信(服务号)
Unique to China; mobile app
While subscription accounts are for pushing content, service accounts are for
advanced features such as interactive menus and payment.
Nice
Similar to Instagram; mobile app
Nice is a platform for users to share their daily lives and styles through photos
and to meet people.
Topit.me
Similar to Luvocracy; mobile app
Topit.me enables users to share and aggregate photos they love and follow the
collections they are interested in.
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45
APPENDIX: GLOSSARY
Huaban
花瓣
Similar to Pinterest; web and mobile app
Members share and collect inspirational images of design, fashion, recipes
and more through website and app.
Meilishuo
美丽说
Similar to Polyvore and Pinterest; web and mobile app
A shopping discovery website and app where young female users who
typically shop on Taobao can recommend and discover trendy products. Since
Nov 2013, Meilishuo has fully incorporated a marketplace of its own, which
combines a shopping guide with e-commerce, and no longer links to Taobao.
Mogujie
蘑菇街
Similar to Fancy; web and mobile app
Mogujie is a buyer-based social network service that provides services to
female internet users in China.
Dianping
大众点评
Similar to Yelp; web and mobile app
Dianping is a UGC platform designed to share locations, contact information,
reviews and ratings for stores and other retail establishments.
Youku
优酷
Similar to YouTube; web and mobile app
Video hosting service based in China where brands can have individual
channels or invest in customizable brand pages.
Douban
豆瓣
Unique to China; web and mobile app
Chinese social networking service that allows registered users to record
information and create content related to film, books, music, recent events
and activities in Chinese cities.
Toutiao
今日头条
Similar to Flipboard; mobile app
Toutiao offers customized news content aggregation based on users’
personal input or their social network activities.
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46
APPENDIX: GLOSSARY
BAIDU services
DEFINITION
Baidu
百度
Similar to Google or Bing; Baidu offers many services, including a Chineselanguage search engine for websites, audio and images. It has several search
and community services and a searchable, keyword-based discussion forum.
Bai-ke
百度百科
Baidu’s form of Wikipedia; where users can create, edit, and update
information on topics of their choice.
Search Index
百度指数
Similar to Google Trends; Baidu Search Index provides insights into a term’s
search popularity within Baidu.
Video
百度视频
Similar to Google Video; Baidu Video Search enables users to search for and
access online video clips that are hosted on third party websites including
Youku, Tudou, PPTV, Sina, and 16 other video hosting platforms.
News
百度新闻
Similar to Google News; Baidu News aggregates news articles and press
releases from the web into a selection of local, national and international
news. Users can search and filter news results to their interests.
Knowledge
百度知道
Baidu Knowledge provides users with a query-based searchable community
to share knowledge and experience. Through Baidu Knowledge, registered
members can post specific questions for other members to respond to and
answer questions of other members.
Official Customer
Support Listing
百度官方客服
A free Baidu service that lists company and business customer support
phone numbers in Baidu Search Results.
Brandzone
百度品牌专区
Baidu’s Brandzone is a paid advertising opportunity where businesses can
own a paid placement that dominates over 80% of the “above-the-fold” area.
Different from SEM ads, Brandzone allows businesses to further customize
what they want users to discover with their brand, including popular link
destinations to: Store Locator, Customer Support, Social Channels, or Latest
Products. Brandzone delivers an average click-through rate of 50% .
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