Ahead of the Curve: Understanding China’s Social Commerce
August 13, 2024
Hi! Welcome back to our series on digital marketing in China! Today, we’re diving into a phenomenon that has rapidly reshaped the retail landscape: social commerce.
What is social commerce? It blends social media with e-commerce, allowing consumers to discover, review, and purchase products — all within the same app. This seamless integration transforms social platforms into full-fledged shopping destinations.
The Rise and Popularity of Social Commerce in China
Social commerce has rapidly emerged as a favorite in China's retail landscape, fundamentally changing how consumers shop:
- Strong Growth: By 2023, social commerce accounted for nearly 20% of all online retail sales in China, underscoring its growing influence alongside traditional e-commerce platforms like Taobao and JD. With a market size valued at approximately 2.5 trillion RMB (about 300 billion CHF) in 2021, this sector is continuously expanding.
- High Engagement: 84% of Chinese consumers made purchases through social media in 2022. This shift is driven by the evolving role of social media platforms, which now offer a fully integrated shopping experience where users can discover products, read reviews, and make purchases — all without leaving the app.
- Influencer Power: Influencers and live streamers are particularly driving this trend. They engage audiences by showcasing products in real-time, offering an interactive shopping experience that combines entertainment with commerce. This trend has attracted 850 million social commerce users by 2021.
- Convenience: The ability to move from product discovery to purchase in just a few clicks, often with next-day delivery, has made social commerce the ultimate in convenience for Chinese consumers. This seamless experience is a key driver behind the rapid adoption and continued growth of social commerce.
Key Players Shaping Social Commerce in China
China's social commerce ecosystem is thriving, thanks to several key platforms that have successfully integrated e-commerce with social media. Each of these platforms offers unique features and opportunities that brands can leverage to connect with their audiences. Here’s a closer look at the major players:
1. WeChat Mini Programs
- In-App Shopping: WeChat Mini Programs are apps embedded within WeChat that allow businesses to create customized e-commerce experiences. Brands can set up Mini Programs to sell products directly to consumers, offering a seamless shopping experience without ever leaving WeChat.
- Personalized Engagement: Mini Programs enable brands to interact with customers through tailored content, loyalty programs, and targeted promotions based on user behavior and preferences.
- Integration with WeChat Pay: The integration with WeChat Pay facilitates instant transactions, reducing friction in the purchasing process.
Pay Attention to:
- User Experience: The success of a Mini Program often depends on how user-friendly and how well it integrates with the overall WeChat ecosystem. A non-intuitive interface can deter users.
- Data Insights: Brands must leverage the data collected from Mini Programs to refine their marketing strategies and better understand customer behavior.
2. RED (Xiaohongshu)
- User-Generated Content: With over 300 million monthly active users, RED is particularly popular among young, urban users. RED’s community thrives on user-generated content, where users share their experiences and reviews of products. It’s a go-to destination for beauty, fashion, and luxury brands.
- Influencer Collaborations: Brands often collaborate with influencers on RED to reach their target audience. These influencers, known as "Key Opinion Leaders" (KOLs), play a significant role in driving purchasing decisions.
- Shopping Integration: RED allows users to directly purchase products mentioned in posts, creating a seamless transition from discovery to purchase.
Pay Attention to:
- Authenticity: RED users value authenticity. Brands must focus on building genuine relationships with their target group and encouraging authentic reviews.
- Content Strategy: Given the platform’s visual nature, high-quality, aesthetically pleasing content is essential to stand out. Brands need to invest in creating visually compelling content that resonates with the RED community.
3. Douyin
- Shoppable Videos: Douyin's e-commerce integration allows users to purchase products featured in videos with just a few taps, creating an immediate and interactive shopping experience.
- Live Streaming: Douyin is a leader in live-streaming commerce, where influencers and brands host live shows to showcase products, offer discounts, and interact with viewers in real time. This format has proven highly effective in driving sales.
- Algorithmic Recommendations: Douyin’s powerful algorithm suggests content based on user preferences, which can help brands reach highly targeted audiences.
Pay Attention to:
- Engagement vs. Sales: While Douyin excels at driving engagement, turning that engagement into actual sales requires a strategic approach. This includes using convincing calls to action, limited-time offers, and ensuring that your content resonates with the audience.
- Live-Streaming Quality: The quality of your live-streaming production plays a crucial role in its success. High-quality streams and hosts who can genuinely connect with the audience are key to boosting engagement and driving sales. However, it’s important to note that working with influencers can quickly become expensive, so it’s important to choose the right partners who align with your brand and offer the best return on investment.
Wrapping up, social commerce is revolutionizing digital marketing, requiring brands to become more agile, creative, and deeply connected with their audiences through interactive content. This shift is not just a trend—it’s a fundamental change in consumer behavior. Brands that embrace social commerce can expect significant boosts in engagement, making it essential to stay ahead in this dynamic market.
At Think East, we specialize in guiding brands through the evolving landscape of social commerce. We offer tailored services that include crafting compelling social media campaigns, finding the right influencers for your brand, setting up effective KOL collaborations, and providing strategic consulting to help you identify the right platforms and approaches for your brand.
Which social commerce platform do you think would best suit your brand? How are you currently leveraging influencers in your digital marketing strategy?
Stay tuned for our next post, and connect with us on LinkedIn or via email — we’d love to hear your thoughts and questions.
See you next time!
Banner Image Credit: All screenshots taken from RED, WeChat, and Douyin showcasing content by Balenciaga, Shake Shack, and Jacquemus.
Der Zeit Voraus: Einblick in Chinas Social Commerce
Hi! Willkommen zurück zu unserer Serie über digitales Marketing in China. Heute tauchen wir in ein Phänomen ein, das die chinesische Handelslandschaft rasant verändert hat: Social Commerce.
Was ist Social Commerce? Social Commerce vereint soziale Medien mit E-Commerce und ermöglicht es den Konsumenten, Produkte zu entdecken, Bewertungen zu schreiben und zu lesen und Käufe zu tätigen – alles innerhalb der gleichen App. Diese nahtlose Integration macht soziale Plattformen zu vollwertigen Einkaufserlebnissen.
Warum ist es so beliebt in China?
Social Commerce hat sich schnell zu einem Favoriten in Chinas Handelslandschaft entwickelt und verändert grundlegend, wie Konsumenten einkaufen:
- Starkes Wachstum: Bis 2023 machte Social Commerce fast 20% des gesamten Online-Handels in China aus, was seine wachsende Bedeutung neben traditionellen E-Commerce-Plattformen wie Taobao und JD unterstreicht. Mit einem Marktvolumen von etwa 2,5 Billionen RMB (rund 300 Milliarden CHF) im Jahr 2021 wächst dieser Sektor kontinuierlich.
- Hohe Beteiligung: 84% der chinesischen Konsumenten kauften 2022 über soziale Medien ein. Diese Entwicklung wird durch die zunehmende Rolle der Social-Media-Plattformen angetrieben, die jetzt ein vollständig integriertes Einkaufserlebnis bieten, bei dem Nutzer Produkte entdecken, Bewertungen lesen und Einkäufe tätigen können – alles ohne die App zu verlassen.
- Einfluss durch Influencer: Influencer und Live-Streamer stehen im Zentrum dieses Trends. Sie fesseln das Publikum, indem sie Produkte live präsentieren und ein interaktives Einkaufserlebnis schaffen, das Unterhaltung und Einkauf vereint. Dieser Trend hat bis 2021 850 Millionen Social-Commerce-Nutzer angezogen.
- Bequemlichkeit: Die Möglichkeit, in nur wenigen Klicks von der Produktentdeckung zum Kauf überzugehen und oft am nächsten Tag die Lieferung zu erhalten, hat Social Commerce zur ultimativen Bequemlichkeit für chinesische Konsumenten gemacht. Dieses nahtlose Erlebnis ist ein Haupttreiber für die schnelle Akzeptanz und das kontinuierliche Wachstum von Social Commerce.
Wichtige Player im Social Commerce in China
Das Social-Commerce-Ökosystem in China boomt, dank mehrerer Schlüsselplattformen. Jede dieser Plattformen bietet einzigartige Funktionen und Chancen, die Brands nutzen können, um mit ihrem Publikum in Kontakt zu treten. Hier ein genauerer Blick auf die wichtigsten Akteure:
1. WeChat Mini-Programme
- In-App Shopping: WeChat Mini-Programme sind in WeChat eingebettete Apps, die es Unternehmen ermöglichen, massgeschneiderte E-Commerce-Erlebnisse zu schaffen. Marken können Mini-Programme einrichten, um Produkte direkt an Konsumenten zu verkaufen und ein nahtloses Einkaufserlebnis zu bieten, ohne WeChat verlassen zu müssen.
- Personalisierte Interaktionen: Mini-Programme ermöglichen es Marken, durch massgeschneiderte Inhalte, Treueprogramme und gezielte Promotionen auf Basis des Nutzerverhaltens mit Kunden zu interagieren.
- Integration mit WeChat Pay: Die Integration mit WeChat Pay erleichtert sofortige Transaktionen und reduziert Reibungen im Kaufprozess.
Wichtig zu beachten:
- Nutzererlebnis: Der Erfolg eines Mini-Programms hängt oft davon ab, wie benutzerfreundlich es ist und wie gut es sich in das WeChat-Ökosystem integriert. Eine nicht intuitive Benutzeroberfläche kann Nutzer abschrecken.
- Datenanalyse: Marken müssen die gesammelten Daten aus den Mini-Programmen nutzen, um ihre Marketingstrategien zu verfeinern und das Kundenverhalten besser zu verstehen.
2. RED (Xiaohongshu)
- User-Generated Content: Die RED-Community lebt von nutzergenerierten Inhalten, bei denen Nutzer ihre Erfahrungen und Bewertungen zu Produkten teilen. Mit über 300 Millionen monatlich aktiven Nutzern ist RED besonders beliebt bei jungen, urbanen Nutzern. Es ist die Anlaufstelle für Marken aus den Bereichen Beauty, Mode und Luxus.
- Zusammenarbeit mit Influencern: Marken arbeiten oft mit Influencern auf RED zusammen, um ihre Zielgruppe zu erreichen. Diese Influencer oder "Key Opinion Leaders" (KOLs), spielen eine entscheidende Rolle bei der Beeinflussung von Kaufentscheidungen.
- Shopping-Integration: RED ermöglicht es den Nutzern, Produkte, die in Beiträgen erwähnt werden, direkt zu kaufen, was einen nahtlosen Übergang vom Entdecken zum Kauf schafft.
Wichtig zu beachten:
- Authentizität: RED-Nutzer legen grossen Wert auf Authentizität. Marken müssen sich darauf konzentrieren, echte Beziehungen zum Publikum aufzubauen und authentische Bewertungen zu fördern.
- Content-Strategie: Angesichts der visuellen Natur der Plattform ist hochwertiger, ästhetisch ansprechender Content entscheidend, um herauszustechen. Marken sollten in die Erstellung visuell überzeugender Inhalte investieren, die bei der RED-Community gut ankommen.
3. Douyin
- Shoppable Videos: Die E-Commerce-Integration von Douyin ermöglicht es den Nutzern, Produkte, die in Videos präsentiert werden, mit nur wenigen Klicks zu kaufen und so ein sofortiges und interaktives Einkaufserlebnis zu schaffen.
- Live-Streaming: Douyin ist führend im Bereich des Live-Streamings im Handel, bei dem Influencer und Marken Live-Shows veranstalten, um Produkte zu präsentieren, Rabatte anzubieten und live mit den Zuschauern zu interagieren. Dieses Format hat sich als äusserst effektiv erwiesen, um Verkäufe zu steigern.
- Algorithmische Empfehlungen: Der leistungsstarke Algorithmus von Douyin schlägt Inhalte basierend auf den Vorlieben der Nutzer vor, was Marken helfen kann, hochgradig zielgerichtete Zielgruppen zu erreichen.
Wichtig zu beachten:
- Engagement vs. Verkäufe: Während Douyin hervorragend geeignet ist, um Engagement zu fördern, erfordert die Umwandlung dieses Engagements in tatsächliche Verkäufe einen strategischen Ansatz. Dies beinhaltet überzeugende Call-to-Actions oder zeitlich begrenzte Angebote.
- Qualität des Live-Streamings: Die Qualität Ihrer Live-Streaming-Produktion spielt eine entscheidende Rolle für den Erfolg. Hochwertige Streams und Moderatoren, die authentisch mit dem Publikum in Kontakt treten, sind der Schlüssel, um Engagement zu steigern und Verkäufe anzukurbeln. Allerdings kann die Zusammenarbeit mit Influencern schnell teuer werden, daher ist es wichtig, die richtigen Partner auszuwählen, die zu Ihrer Marke passen und das beste Preis-Leistungs-Verhältnis bieten.
Social Commerce revolutioniert das digitale Marketing und erfordert von Marken, agiler, kreativer und stärker mit ihrem Publikum verbunden zu sein – durch interaktive Inhalte. Dieser Wandel ist nicht nur ein Trend, sondern eine grundlegende Veränderung im Konsumverhalten. Marken, die Social Commerce nutzen, können mit erheblichen Steigerungen bei Engagement rechnen. Es ist daher entscheidend, in diesem dynamischen Markt einen Schritt voraus zu sein.
Bei Think East unterstützen wir Marken dabei, sich in diesem dynamischen Social-Commerce-Umfeld zurechtzufinden. Wir bieten massgeschneiderte Dienstleistungen an, von der Erstellung überzeugender Social-Media-Kampagnen über die Auswahl passender Influencer bis hin zu strategischer Beratung, um die richtigen Plattformen und Ansätze für Ihre Marke zu finden.
Welche Social-Commerce-Plattform passt am besten zu Ihrem Brand? Wie setzen Sie Influencer derzeit in Ihrer digitalen Marketingstrategie ein?
Bleiben Sie dran für unseren nächsten Beitrag und kontaktieren Sie uns auf LinkedIn oder per E-Mail – wir freuen uns auf Ihre Gedanken und Fragen.
Bis zum nächsten Mal!
Xiaohongshu (RED) has evolved from a China-based shopping guide into a global lifestyle hub with over 300 million monthly active users. RED has also become China's number one search engine app, and is gaining international attention recently, especially as “TikTok refugees” in the U.S. search for alternative platforms amidst TikTok’s uncertain future. For international brands and organizations, RED offers a powerful opportunity to establish credibility, visibility, and trust with a sophisticated audience. Why RED Matters for Everyone RED is a lifestyle-focused, user-driven platform where content and conversations shape public perception. This makes it invaluable for seeding awareness, whether for global institutions, luxury brands, or niche organizations entering the Chinese market. With its foundation in trust and user-driven content, RED positions organizations as leaders in their space. Here’s how institutions can leverage this unique platform for growth: Discovery : RED’s users actively seek fresh ideas, meaningful insights, and reliable recommendations. Whether exploring lifestyle trends, educational initiatives, or cultural content, users engage deeply with curated posts. Trust Through Content : Over 80% of posts are user-generated, creating an environment of authenticity. For institutions, this opens the door to connect with audiences by sharing real, relatable content that resonates with their values. A Gateway to China’s Urban Population : RED’s audience consists largely of female professionals and students in first- and second-tier cities, giving institutions access to influential and forward-thinking demographics. For example, a museum or cultural institution could use RED to showcase exclusive exhibitions, share behind-the-scenes content, or highlight global partnerships. This not only builds awareness but also sparks curiosity and fosters engagement with urban audiences interested in arts and culture. Why RED Is Essential for Brand and Institutional Growth RED provides a low-barrier entry point to build visibility in one of the world’s most competitive digital spaces. Its focus on authentic discovery and trust helps organizations gain traction with the right audiences. Seeding Awareness : RED allows organizations to position themselves as thought leaders or trusted entities. Whether through knowledge-sharing, success stories, or behind-the-scenes glimpses, it’s ideal for creating a lasting impression. Building Conversations : RED fosters meaningful interactions. Institutions can start discussions around shared values, research, or initiatives that align with the platform’s focus on thoughtful content. Leveraging Local Influence : RED’s ecosystem of influencers, including Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs), amplifies visibility and credibility. Strategic partnerships with the right influencers can elevate messaging and build connections with targeted audiences effectively. Pro Tip : Many brands succeed by employing the KFS Strategy: a combination of Key Opinion Leaders (KOLs), Feeds, and Search Ads. This multi-pronged approach ensures visibility across key touchpoints. Advertising and Influencer Partnerships on RED RED’s advertising and influencer tools work best when integrated into a broader content strategy. Ads are not just about visibility but about positioning your institution or brand authentically within the platform’s ecosystem. In-Feed Native Ads : These ads appear seamlessly in users’ feeds, blending with organic content while carrying a “sponsored” tag. Institutions can use in-feed ads to promote educational content, events, or campaigns, aligning with the platform’s focus on meaningful interactions. Search Ads : By targeting specific keywords, these ads connect organizations with users actively seeking related content. Though they involve higher costs, they are highly effective for driving action and intent. Influencer Partnerships : RED’s 6,000+ KOLs and KOCs offer an array of collaboration opportunities. While micro-influencers charge between 2,000–5,000 RMB per post, top-tier KOLs can command hundreds of thousands of RMB or more per campaign, making influencer partnerships scalable to any budget or goal. RED’s Unique Role as a Seeding Platform Whether you’re a global brand or an institution promoting education, culture, or research, RED allows you to: Seed ideas and spark curiosity that lead to organic engagement. Build recognition and trust over time by prioritizing authenticity. Cultivate meaningful connections in China’s ever-evolving digital landscape. For example, a university could use RED to promote cultural exchange programs, showcase student testimonials, or highlight partnerships with Chinese academic institutions. This type of content resonates with RED’s audience, who value both inspiration and credibility. Final Thoughts RED is a space where any entity can amplify its visibility and credibility in China. By focusing on storytelling, authenticity, and community engagement, RED bridges the gap between global values and local aspirations, making it an invaluable tool for seeding awareness. 💡 At Think East, we specialize in strategy, account setup, and management of RED accounts for international institutions and brands. Interested in exploring RED for your institution or organization? Let’s build a tailored strategy to help you succeed. Stay tuned for our next post, and connect with us on LinkedIn or via email — we’d love to hear your thoughts and questions. See you next time!
When it comes to entering and staying in the Chinese market, few Swiss brands have navigated the landscape as thoughtfully as Weleda . A pioneer in organic skincare, Weleda first stepped into China two decades ago, long before "clean beauty" became a trend. The brand’s journey is a masterclass in adapting to evolving regulations, market trends, and consumer behavior while staying true to its core identity. 2 0 Years of Organic Presence Weleda initially found success in China with its baby care products - a category that is very popular with Chinese parents seeking safe, organic solutions for their infants. Offline stores stocked their products, and items like nappy creams quickly became household staples. However, 2015 marked a turning point. Stricter regulations in China requiring animal testing for product registration created barriers for international brands. Rather than retreating, Weleda pivoted. They leveraged cross-border e-commerce , an opportunity allowing products to be sold without animal testing, launching an online shop that would define the next chapter of their growth. A Strategic Shift to Cross-Border E-Commerce By 2016, Weleda’s nappy cream had become a big success, consistently ranking in the top three brands in the category , even against strong domestic competitors. Up until 2022, the brand’s reputation revolved around being a trusted provider of organic baby products. During this time, Weleda worked to encourage adult consumers to use organic skincare for themselves. Many Chinese adults perceived organic products as premium-priced and prioritized purchasing them for their children rather than for themselves. The pandemic marked a turning point, boosting awareness and interest in health and wellness products. This shift set the stage for Weleda to expand beyond baby care and build a foundation in organic beauty and cosmetics. Breaking Into the Beauty Category In 2021, Weleda launched its cosmetics line on Tmall Global , a crucial step into China’s competitive beauty market. They focused on body oils , tapping into an underserved niche. Products like Arnica Massage Oil and Birch Oil became wintertime favorites, particularly among women seeking relief from stress and muscle tension. By 2022, however, a seasonal challenge emerged: body oils saw limited demand during warmer months, as many Chinese consumers avoid oily products due to their skin type. Weleda adapted once again, promoting lightweight, high-performing alternatives like the Rosemary Hair Tonic . This product addressed widespread concerns such as hair loss and oil control , offering a watery texture that suited local preferences. The tonic resonated with stressed, image-conscious consumers, helping Weleda strengthen its position in the beauty category and expand its customer base to include male consumers and year-round buyers. Weleda's growth strategy in China offers a clear framework for success: Start with Cross-Border E-Commerce : Cross-border e-commerce offers an efficient, cost-effective entry point for international brands. Weleda’s consistent focus on this channel minimized risk while building a loyal customer base. Leverage Social Media for Seeding and E-Commerce : Platforms like RED are instrumental for educating Chinese consumers. Weleda seeded content featuring authentic reviews and product usage tips before moving to Douyin (TikTok) and WeChat for broader e-commerce campaigns. Focus on Core Products: Rather than launching a full product line, Weleda introduced one hero product at a time - nappy cream, body oils, and hair tonic - allowing them to build traction and loyalty organically. Collaborate Strategically : From working with KOLs to sponsoring events like the Montreux Jazz Festival in Suzhou or the Shanghai Fashion week, Weleda smartly balanced niche collaborations with broad market appeal. Sustainable Growth Over Hype: Unlike brands chasing instant fame, Weleda prioritized sustainable growth. With a medium-range price point, consistent product efficacy, and high customer retention, they’ve cultivated a loyal audience that champions the brand. Looking Ahead In 2024, Weleda continues to ride the wave of success. Revenue from the recent 11/11 shopping festival grew 15% year-over-year, a testament to the brand’s refined approach to e-commerce and social media marketing. Baby care remains the cornerstone of their business, but beauty products are rapidly gaining ground. As more Chinese consumers seek organic niche brands that align with their values, Weleda’s organic promise resonates deeply. Yet, challenges remain, from managing stock levels to competing with other international clean beauty brands. Still, Weleda’s 20-year journey in China proves that with patience, adaptability, and a sharp focus on consumer needs, brands can carve out a meaningful space in this complex market. At Think East, we keep you updated on the strategies brands use to succeed in China’s dynamic market. If you’re a new brand looking to enter the Chinese market or refine your approach, reach out to us. We’re here to help you craft a strategy that works for your goals. Stay tuned for our next post, and connect with us on LinkedIn or via email—we’d love to hear your thoughts and questions. See you next time!
In a city known for its fast-paced, consumer-driven culture, FREITAG has chosen a different path. Known for its bags crafted from recycled truck tarps, the Swiss brand is reshaping the typical retail experience in Shanghai. FREITAG’s approach is rooted in a sustainable, community-focused strategy that doesn’t push for quick sales. Through its first direct store, which opened in early 2023 near Jing’an Temple and close to a residential area, FREITAG is creating a space and a community that think differently about what it means to shop, connect, and consume. A Space with Purpose FREITAG’s location, set in a former towel factory that later served as a hostel, blends heritage with innovation. The renovation preserved much of the building’s original structure, incorporating its high ceilings and industrial features into an open, welcoming space designed for discovery. Each floor has a specific purpose: a repair station on the ground level, where customers can bring their FREITAG bags from anywhere in the world to for repairs. A process that can take up to six weeks, reinforcing the brand’s commitment to sustainable fashion. The first and second floors showcase collections. An essential feature of the store’s design is its vertical storage system, which reflects FREITAG’s focus on transparency and functionality. Products are displayed visibly, giving the space a straightforward, industrial layout that aligns with FREITAG’s minimalist aesthetic and commitment to openness and authenticity. On the top floor, the open rooftop serves as a garden and a social / community space, perfect for workshops and events. It’s a place for community building as much as for shopping. Provide Access, Rather than Ownership Rather than relying on heavy promotional events, FREITAG organizes initiatives that invite their community to engage in meaningful, sustainable practices. For example, during the annual 11/11 shopping festival in China, the biggest shopping day globally, the brand takes a stand by closing its checkout counters, both online and in-store. Instead, FREITAG hosts a S.W.A.P. (Shopping Without Any Payment) event, where customers are encouraged to bring in their pre-loved FREITAG bags to exchange for others. This unique approach reinforces FREITAG’s commitment to “provide access, rather than ownership,” and allows people to experience “new” bags through a circular exchange rather than traditional buying. By shifting the focus from transaction to interaction, FREITAG’s S.W.A.P. event builds community around reuse and resourcefulness, offering a meaningful alternative to consumer culture. Engaging Through Art and Cultural Exchange Earlier this year, Swiss artists Emma Casella and Alix Arto, alongside Chinese designer Zhang Yihan, hosted an immersive workshop at the FREITAG Store that brought together traditional craftsmanship and modern industrial techniques. With support from Pro Helvetia and the Rong Design Library, this workshop wrapped up a three-month residency aimed at reimagining wool’s role in contemporary design. Participants learned about the ancient art of felting, a skill deeply rooted in both Swiss and Chinese heritage, and explored innovative ways to adapt it for today’s sustainable practices. On the store’s rooftop, attendees created a large felt artwork, transforming raw wool through collaborative effort. This collective project allowed participants to experience the energy of shared creation, underscoring how traditional materials and techniques can inspire new applications and connections in a modern context. Balancing purpose and profit FREITAG’s strategy focuses on creating a community and setting a new standard for conscious consumerism in China. By combining heritage, functionality, and a commitment to sustainability, FREITAG has built a retail experience that resonates with a young, purpose-driven audience, offering an alternative to China’s often consumption-focused market. However, finding the balance isn’t always easy. FREITAG’s approach challenges the norms by not prioritizing mass sales, yet it has found a way to succeed by connecting with the right customers: those who value impact. This thoughtful strategy reflects how a brand can stay true to its roots while adapting to new markets. With their Shanghai space, FREITAG invites people to think about their own footprint, using its platform to spark dialogue and inspire change. It’s a compelling example of how retail can be reimagined as a space for engagement and reflection, transforming what it means to be a brand in today’s world. At Think East, we keep you updated on brand strategies like FREITAG’s, showcasing how purpose-driven approaches are shaping retail in China. We’re here to help brands craft strategies that resonate with Chinese audiences, building genuine connections that go beyond transactions. Stay tuned for our next post, and connect with us on LinkedIn or via email—we’d love to hear your thoughts and questions. See you next time!
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