The event opened with a Panel Session: ‘Entering and succeeding in the Chinese market – Hear from companies in the market’ – in which CBBC’s Director, Consumer Economy, Antoaneta Becker chaired a discussion with Joanna Zhou, China Commercial Manager, Holland & Barrett; Arjun Koyappalli, Managing Director of Napiers the Herbalist; and Sarah Armstrong, Founder and Creative Director of lifestyle brand, Pinyin Press.

This discussion introduced the scale and size of the China market opportunity and the ‘new normal’ in China following the Pandemic. Despite changes to the market, growth remains incredible - with consumer spending outstripping China’s overall economic growth - and the market is packed with potential for UK brands. The market is characterised by a trend for ‘Rational Consumption’ with consumers carefully planning spending due to economic pressures and societal trends. Consumers are also spending as an escape from pressures and a means to pursue wellness – which is a key buzzword in China’s consumer landscape right now. Trends to watch include the rise of Chinese whisky – which will be an interesting to see how this will reshape the global distillery market.

Sharing her view of opportunities in China, Holland and Barrett’s Joanna Zhou remarked:

“It has been a good three years… but we can definitely see the changes in the consumer market following Covid-19 and economic changes, but we have found when working with the right channels the opportunities are still available.”

She also introduced to guests the trending phrase in the Chinese market, ‘Morning C Evening A’:

“Morning coffee and evening alcohol, or morning vitamin C and evening vitamin A – which symbolises Chinese consumers’ desire for fun as well as wellness”.

In regard to Holland & Barrett’s entry strategy into the Chinese market, she shared how the company entered the China market via leveraging both B2B and B2C channels in the market.  It was easier for the company to start with cross-border ecommerce due to selling regulated vitamins and health products, however they have since branched into B2C with Tmall and Alibaba. For other channels the company works with distributors, and she recommends to keep a close working relationship with distributors, continuously evolving and adapting the relationship.

In regard to Chinese consumers’ experiences Joanna noted the importance of making the consumer journey as fast and streamlined as possible, with as few clicks to purchase as possible. She shared how Holland & Barrett have worked with UK and Europe based influencers to tap into the Chinese consumer market in the UK as well, with KOLs driving huge sales for Holland & Barrett which has nearly 800 stores in the UK.

The audience also heard from Sarah Armstrong, Founder and Creative Director of lifestyle brand, Pinyin Press. She shared with attendees her brand’s journey in the China market and its cross-cultural design concept – which filled a gap in the market to create an affordable gift brand accessible to all.

She noted how it is: “interesting seeing a progression and seeing that Chinese consumers are appreciating Chinese imagery and symbols like dumplings and lucky cats” – with homeware and home gifting becoming increasingly popular.

Currently, Pinyin Press sells its products on Taobao and WeChat as well as via offline channels. Sarah noted that she doesn’t work with KOLs currently as a small brand, but reaffirmed the value of meeting consumers face to face and selling products at craft markets, saying:

“I put quite a lot of time into offline events, festival events, shopping events in Shanghai. They attract an excellent audience of Gen Z and Millennial consumers; I can talk to them face to face and get them engaged with my brand story and products”.

She also noted how localisation never stops – a point that was reinforced by Antoaneta who observed that the rise of ‘Guochao’ in the Chinese market, means that brands can no longer simply replicate western products for Chinese consumers but instead must work to understand cultural relevance and the importance of Chinese culture in order to win over Chinese shoppers and avoid faux-pas.

Above: Pinyin Press’ products were on display for guests to see

Arjun Koyappalli, Managing Director of Napiers the Herbalist also shared his insights with our audience. He explained how Napiers has accelerated its growth and development over the last two years in China by working with parent company Samarkand.

The company has tailored its marketing and branding strategy in Scotland to target local Chinese consumers, and he explained that:

“Edinburgh has many Chinese students and tourists, we have tapped into that audience via Xiaohongshu, and have run many offers like a special Chinese New Year offer to bring in Chinese student consumers based in Edinburgh”.

“Chinese consumers have much higher standards for packaging and presentation of products, this has helped Napiers to level-up our packaging and presentation of products”.

Arjun also spoke about how the brand has adopted a multi-channel approach to the Chinese market, using livestreaming, social media platforms, offline and other online channels: with Napiers’ first livestream on Douyin doing an amazing three years’ worth of sales in one session. As Napiers is a medium-sized business it has a steep learning curve and therefore the support of its partner, Samarkand has provided an excellent boost to the brand.

Iain Stirling, Commercial Director, Arbikie - sat in the audience - also joined in to share his insights on China’s beverages market, sharing how CBBC supported him to enter the market via China’s CIIE tradeshow. He described how Arbikie is a “family-run and legacy business so it suits the Chinese market well” – with Chinese consumers valuing brand story and integrity highly. He stated that face-to-face engagement is key to unlocking the Chinese market and observed the increasing interest amongst Chinese consumers in whisky, stating that UK distilleries should get ready for an influx of Chinese whisky lovers!

To round off what had been a thought-provoking session, each speaker shared their one key tip for success in the China market: Joanna Zhou shared her advice: “Don’t work with people you don’t trust, don’t doubt the people you work with”. Sarah Armstrong stated: “keep adapting and start small. Even with a small slice of the market, brands can do well in China”. And Arjun Koyappalli shared his tip with brands to: “Make sure you tailor your strategy to the Chinese consumer”.

The event’s second Panel Session focused on the theme: ‘Top tips to build a successful China strategy – the views from Chinese importers and retailers’ with CBBC’s Chief Commercial Officer, Claire Urry hosting a discussion with William Dunne, Senior Business Development Manager, Poizon; Isabella Liu, International Brands Director, Matro Group; and David Hampstead, CEO and Co-Founder of Samarkand Group plc.

William Dunne, Senior Business Development Manager at Poizon – ‘the go-to Luxury marketplace for Gen-Z in China’ - described the value of China’s social media platform, Xiaohongshu: stating how Xiaohongshu originated as a means for Chinese consumers to find niche brands. With Poizon’s key demographic being 25-year-olds seeking individualism, Xiaohongshu has allowed Poizon to reach and connect with consumers interested in its unique products.

He also described the role of Social Commerce in China, with shoppers often engaging with KOLs that they trust more than they do with brands. Consumer trust is key to cracking the China market and therefore livestreaming with trusted KOLs is great means for brands to do this.

“For us livestreaming is a big part of our business it’s how we started...and KOLs have more of an impact in China when it comes to driving sales than in other markets…Social commerce is an ecosystem that you have to buy into in order to do well in China”.

William shared that consumers in China are very savvy and do a lot of research prior to purchase compared to their international counterparts, and therefore having an established brand presence and transparent supply chain in the UK is a huge advantage for brands interested in exporting to China.

With 100 million monthly active users on Poizon, the company currently only sells to China, however it will expand its app into the US and EU eventually. The company is also trying to tap into the Chinese diaspora in the UK now. In addition, Poizon is also seeing an increased demand for in ‘real life experiences’ amongst its Chinese consumers that span beyond what just an app can offer.

He noted the importance of taking risks in the China market saying:

“You have to be willing to take a calculated risk in China, but with the right positioning, China is definitely capable of being unlocked”.

Isabella Liu, International Brands Director, Matro Group - one of China’s leading retailers - shared with the audience her view that sustainability is a key trend inspiring Chinese consumers’ purchasing behaviour. With Matro Group based in Suzhou, a world-heritage site, she shared how the city’s well educated and relatively affluent local population is invested in the sustainability of their purchases.

Being a heritage brand, she shared how Matro Group continues to adapt and evolve in the Chinese market to remain innovative. Part of this adaptation was the company’s establishment of its app, ‘Boundless Matro’, which supports international brands with cross-border e-commerce. She described how Matro’s strong reputation ‘rubs off’ on brands featured on its app – winning trust amongst Chinese consumers, and how the company is also making strides to “Develop and incorporate VR technology to present the authenticity of brands”.

Looking to the future, Isabella stated the importance that brands “Think global act local”: and consider future trends and what consumers need - with experience-oriented consumption being a key trend for the future.

Also on the panel, David Hampstead, CEO and Co-Founder of Samarkand Group plc stated that Scottish brands need to find a partner that matches their appetite for the Chinese market, not one that will push brands too hard to enter and expand in-market.

He stated that it is useful to look at the brands that your selected partner works with, to see if they will be a good fit for you. Having a strategy based on any one platform is a risky strategy as channels change and grow constantly, and therefore having a multi-channel strategy is key. He also noted that, for Scottish brands, it would be a benefit to find a partner that understands Scotland and can help you optimise according to your brand’s Scottish identity. It can also be good to work with multiple partners to address multiple needs in the Chinese market, however this presents a challenge when it comes to ensuring harmony amongst partners and stable pricing.

David noted that “Chinese consumers are a very astute consumer group” and the rise of consumer nationalism: “National brands are growing in popularity, 50% of beauty brands are now Chinese brands in China, and Chinese brands can react much quicker to trends in social media in China”. He echoed William’s point that investment in Social Commerce is vital to success in China, with Xiaohongshu being key to the market as it is a first point of contact and research for Chinese consumers interested in your brand.

With the conclusion of the second Panel Session, the audience had the chance to pose questions to all of the speakers: addressing issues such as budgeting, how best to work with partners, brand visibility and case studies such as that of Tangle Teezer who achieved success in China via organic online endorsements via KOLs.

After the Panel Sessions finished, the audience enjoyed two Deep Dive presentations: ‘Cracking the Chinese Market: Proven tips for new and seasoned exporters’ - delivered by Woodburn Accountants & Advisors’ Head of Business Advisory, Kristina Koehler-Coluccia, and ‘Unlocking China's Digital Frontier: Navigating Trends, Influencers, and E-Commerce Triumphs’ - Delivered by Bark Media’s Managing Partner, Dora Zhou.

And following a light lunch and networking, Scottish consumer brands in attendance took part in CBBC’s Meet the China Buyer and Meet the China Expert sessions, with opportunities to meet buyers and panellists one-to-one to collect further insights, establish partnerships and receive individualised advice and recommendations.

The event was a great success, and we look forward to holding the next one! 

In the meantime should you have any consumer enquiries please don’t hesitate to contact Antoaneta.Becker@cbbc.org or Celine.Tang@cbbc.org and we would be happy to assist you.