“I just love the CBBC community. Last night, the China Chat event hosted by Antoaneta and Celine, talked about China opening its borders and opportunities in the UK and China, for brands targeting Chinese consumers. Thank you CBBC.” - Domenica Di Lieto, CEO of Emerging Communications

Leading the conversation, the CBBC welcomed the following speakers: Chloé Reuter (Founding Partner & Vice Chair of Gusto Collective), Jon Graham (CEO, Miller Harris Perfumer London), Antoaneta Becker (Director, Consumer Economy, CBBC) and Celine Tang (Retail & E-commerce Sector Lead, CBBC). The meeting agenda was split into three main topics all with the aim to provide our audience the latest updates and trends from the Chinese market; the topics were: the return of Chinese travelers in the UK, the key trends that will drive the luxury consumption this year, the latest trends from this year’s Chinese New Year Campaigns & the advancement and development of the metaverse in China. 

Kicking off the discussion Chloé Reuter addressed the potential return of Chinese tourists and of their demands. UK consumer brands should be prepared to welcome the return of Chinese travelers in the summer of this year. It is expected that Chinese tourists will be seeking to return to the UK for longer durations and the volume is expected to quickly recover back to pre-Covid levels. Whilst we wait for this period, it is important for brands to continue to build on their resources. 

A good example of this is Miller Harris – a British perfumery brand that entered China in 2019. The brand has catered to its Chinese audience in the UK by creating an instore ‘experimental’ fragrance experience. Back in China, the brand successfully built an offline presence without the UK team ever visiting the country. The company has successfully demonstrated to other UK brands that with appropriate cultural training and adaptability it is possible to enter, and succeed, in the Chinese market. The perfumery brand chose to be more ‘playful’ in its marketing towards Chinese consumers and has incorporated elements of Asian culture not specific to China. Indeed, quite a few of its products are not specifically aimed to  Chinese consumers but their products still appeal to that  market because the company uses elements inspired by the territory. 

“Very much enjoyed the evening. There was a good energy. It was great to share our passion for the opportunity that China presents and hopefully offer some very loose guidance for people hoping to make a 1st step into the market or learn a little about how the market growth has accelerated over the past 10 years.”- Jon Graham, CEO, Miller Harris Perfumer London

Miller Harris have also appealed to Chinese consumers by emphasizing the importance of sustainability – a huge factor that people are being increasingly aware as more customers seek for authenticity and trust. It also should be highlighted that the company did encounter challenges as a small and niche brand, but it cleverly relied on its ‘English Heritage’ background and utilized the booming ‘smell’ economy to further appeal to Chinese consumers. 

Moreover, Chloé Reuter’s listed five key factors to watch for in the China market. These were: (1) Travelers coming back but with different demands and expectations; (2) Chinese aesthetics is a luxury; (3) The metaverse acceleration; (4) The localization of Corporate social responsibility (CSR) initiatives & (5) Creative collaboration drives luxury marketing. Chloé emphasized that China’s importance for the luxury market undiminished and that we should expect China to be the largest luxury market by 2025, together with a rise of the middle class and sophisticated consumers. Chloé also continued to  highlight the advancement of China’s technology which  is light years ahead of its time and that UK consumer brands should not be complacent. An example of this fast development is China’s use of the metaverse ‘a collective virtual shared space- which many luxury brands entering China have utilized  via the use of KOLS and digital collectibles and whose market size is forecast to  reach $28 billion dollars by 2028. 

“I loved hearing about Jon and Miller Harris’s China experience. It was honest and entertaining, but also really important to hear first-hand the reality of business there. The work CBBC is doing is so important – we need dialogue and understanding in order to bridge knowledge gaps, to foster relationships between the UK and China. Keep going!” - Chloé Reuter, Founding Partner & Vice Chair of Gusto Collective.

The trends from the recent Chinese New Year Campaigns were also discussed. Celine Tang shared with us some trends and traditions that have changed from the previous year. For example, instead of physically visiting temples during the New Year some have chosen to virtually visit them via the metaverse. Chinese people are proud of their culture, and this is vital for brands to understand as this year there was a debate concerning the difference between ‘Chinese New Year’ and the ‘Lunar New Year’. 

Consumers are continuing to seek to an emotion towards brands and this is important for brands to highlight during the New Year period as there is an importance of ‘going home’ and ‘reuniting with family’. Whilst the metaverse might not seem to embody ‘emotion’, it is also a virtual space where consumers can be sentimental. 

The China Chat ended with a roundup of questions and some further tips on how to survive in China. Some of the key topics of discussion were; How much of capital will flow into UK's luxury houses once travel and visa regimes are fully normalised? With China Duty Free Group emerging as the world's leading travel retailer what would be the incentive for Chinese consumers to come back to London and other European capitals to spend their money?

Moreover, two key survival tips were highlighted, these are – when trading in China it is important to spend time to build up relationships with local Chinese partners, and when entering China, it is vital for brands to be digitally savvy as it is very difficult to get around China without WeChat or Alipay. 

“The event was very informative, with panelists offering their knowledge and the latest insights on how to reach Chinese consumers. At Hawksford, we support many brands with their expansion into China, and therefore keeping up to date with the latest information helps ensure we remain best placed to support our clients needs”. - Winnie Seow Mei, Asia Market Lead, Hawksford

Thank you again to everyone who attended the gathering and to Chloé Reuter of Gusto Luxe and Jon Graham of Miller Harris for making the evening memorable with their wit and wisdom! We look forward to welcoming you all again to the next China Chat. China Chat will be held quarterly to update UK businesses with the latest Chinese market and consumer trends.

Our next meeting is taking place in the second half of May. Please contact us if interested in joining an upcoming China Chat speaker panel and sharing your insights with us. Please contact Antoaneta.becker@cbbc.org.