How Chinese brands are using Digitalisation to adapt to coronavirus conditions

This article was originally published in Direct Commerce Magazine.

As the coronavirus continues to spread around the world, retailers are making contingency plans for a scenario in which foot traffic at their offline retail stores falls to zero.

Halfway around the world in China, such a scenario is already in play. Most shopping malls and stores in China are closed, except for a handful of grocery stores and convenience store chains deemed to supply basic necessities.

But its retailers are bouncing back, using online marketing to keep in touch with their customers. China’s internet ecosystem is far more integrated with offline channels and content marketing is more synchronized with e-commerce than it is in the West. We take a look at some of the unique tactics Chinese brands are using and how Western players can learn from them.

Unknown skincare brand CEO goes on Taobao Livestreaming to save his business

A camellia oil skincare brand, Lin Qingxuan, was in dire straits at the beginning of the coronavirus crisis in late January. Before the crisis, approximately 75 per cent of its sales were derived from offline retail stores and distributors. Those sales dropped by 95 per cent in just a few short weeks, putting the company in serious financial trouble. 

To save his business, CEO Laichun Sun personally went on Taobao Livestreaming to appeal to customers on Valentines Day in a 2.5-hour live video session titled, “214 Wuhan, My Lover”. In a live streaming session, the brand usually has employees or influencers present the brand story and products in a live video session in which viewers can directly ask questions about the products and interact with the host. Read more on Direct commerce magazine.