Arabica coffee has opened few days ago its new store into the Rockbund area in Shanghai. This is already its second shop in Shanghai since February 2018. With a surface of 265 square meters (5 times bigger than its previous store located at Shanghai, Wu Kang Road), this one is Arabica’s biggest store in the world. Arabica coffee is known by Chinese consumers as a “Wang hong dian” or a store popularized on internet. It is not possible to go 10 minutes before your work and get your coffee. Consumers have normally to line up and wait about 2 hours before getting their beverage…
Besides talking about Arabica success in China, this article will give you some of key success factors in China.
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Chinese consumers like brands that are dedicated and faithful
Recently, a survey on young Chinese consumers showed that Sixty percent of them like brands that show unique insights. As they are the growing future consumers, brands who want to settle in China have to take in account their tastes. The most appreciated brands have often a well-visible personality. The Branding become something important in China.
Junichi-yamaguchi is one of the barista working in Arabica coffee. In 2014, he has won a Latte art competition and became well-known. Chinese people appreciate people or brands which are truthful to their interests.
Design and appearance drive your promotion in China
Design is important to make the difference from your competitors. China is a huge market with a lot of opportunities. However the competition is important and you need to attract the attention of consumers. As Junichi Yamaguchi said during an interview “the main difference between Chinese consumers and Japanese consumers is that Chinese consumers like to take photos”. They share a lot on internet, that is how a lot of stores became popular in China.
Arabica has a simple but elegant design which suit exactly with Chinese customer’s taste. Also the layout of the new store offers a wide space to its customers. They don’t need to queue packed like sardins as it was the case in the first store.
Bad quality product will be eliminated in the market
With the development of the country, the increase of purchasing power, Chinese people are seeking for better living conditions and also better quality products. There is a rising of high-end products and shops in China, eliminating the ones which provide low quality services or products.
You have to get a good word-of-mouth from the Chinese consumers in social media platforms, supporting your products worth the expectation and the queue.
Earlier we talk about “Wang Hong Dian” which is using to design popular shops in China. How they become popular ? Because of internet. Chinese people have the tendency to share products or place on their social media account, to tell their friend or their family (the power of word-of mouth is as important as online reputation in China).
For new brands, the online reputation is even more important. Chinese consumers don’t trust a lot on brands because of several scandals happened in the past in the country. They prefer to rely on online recommendations or to the brands they have heard about.
Even if the place is popular, people will do some research before going (of course yes when you have to spend more time for a beverage than for a Disney attraction !). They often refer to Xiaohongshu App (the Little Red Book) to see other consumer’s reviews and rating.
In addition, the Chinese market is turning into a O2O system (Online-to-offline). Brands have to catch their consumers online in order to bring them in their physical store or to their offline activities. In fact, Chinese people are spending most of their time online, chatting with their friends, surfing on different forums and apps, seeking for the last trends.
They define where they want to eat, what film they want to watch, what products they want to buy after their research on internet.
Use the e-commerce platforms
If you want to sell product online in China, taking care of your online presence will be one of the main task. The other one is to settle in e-commerce platform. The most popular ones are Tmall and JD.Com
E-commerce is the new way to do business in China. It is more convenient as the delivery service is quite developed in China. No need to go away and search for the product, it is almost possible to get all online as e-commerce platforms are offering a large range of choice to consumers. In this context of fast pace of work in China, using e-commerce platforms also allow consumers to save their time.
Chinese consumers can have access nowadays more easily to foreign products, which are appreciated. Products from abroad is often linked with the label of “better quality”. The development of e-commerce also allowed many brands and companies to enter more easily in the Chinese market. Instead of going to China and invest on a store (which is very expensive in big Chinese cities), brands could choose e-commerce solutions to start their business in China.
Need some help to develop your project in China ?
GMA is one of the most powerful marketing agency in China. We are specialized on the digital field and on Chinese consumers. If you have a project to enter in China, whether it is to sell products or services, we bring you the solutions.
Find on sentences below what you need. GMA can help you to :
- Build your Chinese website : in order to increase your brand credibility and visibility online, to have a website in China is essential
- To launch your store on Tmall or JD.com : we talk about some of the advantages to settle on Tmall or JD.com. In China, you have to choose the right channels for your brand in order to preserve your reputation. Tmall and JD are trusted by Chinese consumers for selling authentic products, but it is not the case for all e-commerce platforms.
- To increase your brand awareness : we have developed many successful e-commerce projects because we know how to effectively promote your (e-commerce) business in China by using the latest digital tools and the right social media platform.
- To find KOL (key influence leaders) : besides “Wang hong Dian”, there are also “Wanghong” in China. It is the name of Chinese internet celebrities. They are very active online and often have a huge number of followers. To collaborate with them can boost your brand’s activities, reaching Chinese consumers in a more fast way.
- … and that is not all, do not hesitate to check our solutions section to get more information.
You can also leave a comment below if you have any question or contact us for further discussions.