Created in 2013, A former couple of Chinese actors, opened his company “Shanghai Dowell Trading”, with partner French producer and trader Haussmann Family. Shanghai Dowell Trading, includes nine sectors of activity, cosmetics including a factory in the Lyon region, home appliances, and fashion. This company employs some 400 employees and sells products in its 75 stores in China and on the internet. WeChat, unlike Facebook and Google, doesn’t offer data to advertisers allowing them to micro-target very specific demographics.
Incredible but true, nearly 450,000 bottles of Bordeaux wine sold in 18 minutes on WeChat
In the castle of Grattequina, in Blanquefort, near Bordeaux, during a gala dinner, more than one hundred “we-shopkeepers”, the best independent sellers from China, have garnered in a wink the orders through their phone portable, a demonstration in France of their sales force. Paid by the commission, they also sold all 30,000 bottles of Heritage Champagne, Prince Henri d’Orléans wine, offered for sale.
After a turnover of 13 billion euros in 2017, the CEO of Shanghai Dowell Trading this year to reach 18 billion euros. This Chinese couple is not his first partnership. In December 2017, he had already sold 500,000 bottles of Italian wine via WeChat in 15 minutes. Similar projects are in development with Spanish, Australian and Chilean wines.
Under the double label Haussmann and Tin’Secret, one million bottles of three red wines will be marketed only on WeChat: Pays d’Oc, Bordeaux superior and Médoc cru bourgeois. “This is not traditional wine, we designed the product for the Chinese market, which likes a wine between 13 and 14 degrees, rather concentrated in color. It does not like acidity at all. work in the cellars “, explained to AFP Pierre-Jean Larraqué, CEO of Larraqué wines international. Haussmann Famille is a subsidiary of this group that sold 2or0 million bottles last year and has 1,450 hectares of vines.
This story shows how important kols are in your marketing Campaign. Kols are very powerful
KOLS: No Longer an Option, Now a Necessity
Given the unique social media landscape and hyper-competition, ‘using’ influencer, or KOLs in China, is seen by many western brands as a high return and a relatively less risky strategy of penetrating this highly competitive market.
People feel more comfortable with the KOLs owing to a strong interaction the influencers build with their followers. when commenting on why KOL marketing works in China. “Followers feel a sense of community and trust the influencer to share accurate information with them”
In an increasingly digital world, traditional media such as radio and TV are losing ground, while the Internet takes an ever-larger role. The Mobile web allows information to spread rapidly and opens the door for anyone who proves capable and trustworthy to enlarge their influence.
A major reason why influencer marketing works are that it lends authenticity to the brand. When a well-known and much loved influencer posts about a brand, he/she transfers its real charisma to the brand. Though the influencer is paid, he or she should not appear bought.
PR campaigns have forever sought to engage with thought leaders to drive favorable opinion and coverage for the brand. The growing power of social media has led to the rise of social media influencers.
Working with influencers in China
Since working with influencers is now a necessary part of a marketing strategy in China, there are some key things marketers should understand in advance.
- Influencer marketing requires a significant budget. Chinese influencers expect international and local brands to pay them outright because product links in posts are restricted on most social media channels and affiliate marketing and profit share models are not as common as in the West. For an effective influencer marketing strategy, brands need to provide sufficient funding and allocate more of their marketing budget to KOL marketing.
- While costs are higher, the return on investment (ROI) is also higher. Marketers should be aware that China is a much more competitive and expensive market so standards and KPIs need to be adjusted so that realistic goals can be established based on the actual situation in China.
- Influencer marketing needs to be done strategically. Working with a well-known KOLs on a one-off campaign won’t create a significant impact. It’s best to collaborate with a variety of influencers who have large and small follower bases. Establishing long-term collaborations with high-quality influencers is also a good way to strengthen a working relationship.