China: social networks are key tools for selling and building a reputation

What do you need to know about e-commerce in China?

The specificity of e-commerce in China lies in the importance of social networks. Unlike Western models, where sales sites and social networks are separate, in China these two worlds are deeply integrated. Consumers discover, discuss and buy a product directly on WeChat, Douyin, Xiaohongshu and other social platforms, without ever leaving the application.

Social e-commerce and livestream shopping are revolutionising shopping behaviour. Xiaohongshu (RED), in particular, is emerging as the go-to platform for young urban consumers, combining authentic content, community reviews and one-click shopping.

In this article, Chloé Berndt, Associate Director of VVR International, explains how these platforms are shaping Chinese e-commerce and why Xiaohongshu has become essential for brands (particularly in the cosmetics sector).

China’s e-commerce giants: Tmall, JD.com and Pinduoduo

E-commerce is generating a growing share of consumption in China. Platforms play a major role in retailing, and brands need to be present capture the attention of Chinese consumers.To find out more about the specifics of e-commerce in China, read our article: https://globallians.com/reussir-sur-le-marche-chinois-comprendre-les-specificites-et-les-atouts-du-e-commerce-en-chine/

Tmall: the benchmark for international brands

Tmall, a subsidiary of Alibaba, is China’s leading e-commerce platform. It enables brands to sell directly to Chinese consumers via two models:

• Tmall Classic: for local businesses with a presence in China.
• Tmall Global: a cross-border e-commerce solution, ideal for foreign brands wishing to test the market without having a distribution partner or legal entity in China, or having had their products certified in accordance with Chinese regulations…

Its strength lies in the guaranteed authenticity of its products, a key criterion for Chinese consumers who fear counterfeits. With events such as 11.11 (Singles’ Day), Tmall generates billions of dollars in sales in a single day.

JD.com: logistical excellence and premium service

JD.com, China’s second-largest e-commerce player, is renowned for its integrated supply chain.Unlike Tmall, which operates like a marketplace where sellers manage their own stocks, JD.com has its own warehouses and delivery systems, enabling deliveries to be made within 24 hours or even 12 hours of placing an order in certain cities.

JD.com is targeting consumers who are concerned about quality and speed of service, in particular through its JD Plus programme.

Pinduoduo: the success of group buying and bargain prices

Pinduoduo has introduced the concept of community group buying to China.Its model is based on ultra-competitive prices: the more consumers buy the same product together, the lower the price.

Initially focused on essential products (food, household appliances), Pinduoduo has expanded its offering to include premium brands and even luxury goods,, rivalling Tmall and JD.com. Its application has over 900 million active users.

The impact of social networks on e-commerce in China

In China, social networks are no longer simply communication tools, but strategic purchasing channels.Chinese consumers discover products via Chinese consumers discover products via ‘professional’ influencers (KOLs Key Opinion Leaders), influencers (KOCs Key Opinion Consumers), digital word-of-mouth and community recommendations.

The most influential social networks for your communication and sales development in China:

• WeChat: a Tencent application, WeChat integrates mini-programmes that enable brands to create online shops that can be accessed directly from the application.
• Douyin (Chinese TikTok) is a key platform for short videos and livestream shopping.More than 500 million users interact with promotional content every day.
• Weibo is China’s historic social network, useful for viral communication and large-scale marketing campaigns.
• Kuaishou is a competitor of Douyin.

Livestreaming: a must for selling in China

What is Chinese livestream shopping?

Livestreaming combines live sales and real-time interaction. An influencer or seller presents a product, answers viewers’ questions and offers exclusive promotions for instant purchase. In 2017, the gross value of goods sold via livestreaming was 20 billion yuan. By 2022, this figure has exploded to 3,500 billion yuan!

(To find out more about the 11.11 trade fair, read VVR International’s analysis: 11.11 in China: a look back at the transformation of an event)

Why does livestreaming work so well in China?

• Immersive, interactive experience: the audience can ask questions and see the products being demonstrated.
• Sense of urgency: time-limited promotions encourage impulse buying.
• Trust in KOLs and KOCs: : collaborating with KOLs and KOCs is a powerful lever for gaining visibility. These influencers play a crucial role in China, as their opinion is often perceived as more reliable than traditional advertising. While KOLs are influential figures capable of having an impact on trends, KOCs are micro-influencers, real users of products, who share authentic and credible recommendations, often on niche products.

Xiaohongshu: the leading social network for shopping in China

Xiaohongshu, nicknamed RED, is a social network where users share their experiencesgive their opinions on products and can buy directly from the application. Somewhere between Instagram, Pinterest and Amazon, this hybrid approach based on user-generated content has transformed Xiaohongshu into a must-have platform for Chinese consumers, who seek inspiration and recommendations before making their shopping.

The growing number of Xiaohongshu users in China:

In 2024, Xiaohongshu will have 300 million monthly active users, most of them women. In fact, 79% of users are women, mainly from China’s major cities, making the platform a veritable relay for fashion, beauty and lifestyle brands.

Aware of this high concentration of women, Xiaohongshu recently implemented a strategy aimed at attracting a wider male audience. To achieve this, the platform has diversified its content, particularly in the areas of sport, technology and cars, in order to reach new users. Thanks to this initiative, the proportion of male users, although still a minority, is growing steadily.

Why is Xiaohongshu central to selling in China?

Xiaohongshu owes its success to its authentic, community-based approach. Unlike traditional advertising, which is often perceived as overly commercial, the content shared on RED is based on genuine opinions and recommendations from users. In China, where consumers attach crucial importance to feedback, brands need to adopt an engaging and interactive approach.

Xiaohongshu’s other strength lies in its seamless integration of discovery and purchase. A user who consults a post about a beauty product or a trendy outfit can, with one click, access the official shop and place an order without leaving the application. This social ultra-integrated commerce considerably simplifies the purchasing process and encourages spontaneous purchases.

Finally, Xiaohongshu has established itself as a key platform for foreign brands wishing to penetrate the Chinese market. Many international companies use RED to increase their visibility, interact with their target audience and build a loyal community. Thanks to its intelligent algorithm, Xiaohongshu highlights relevant content, enabling brands to reach potential consumers more effectively.

Social networks: an asset for successful business development in China

E-commerce in China is no longer limited to traditional platforms such as Tmall or JD.com. Social networks, livestreaming and applications such as Xiaohongshu are redefining the shopping experience.