2023
0
China Private Traffic: Direct-to-Consumer Retailing Market Report 2023
2023-03-30T04:01:12+01:00
OX1155777
3695
161898
[{"name":"Retail","url":"https:\/\/store.mintel.com\/industries\/retail"}]
Report
en_GB
“Despite the enthusiasm surrounding the potential of direct-to-consumer retailing, it has not seen anticipated growth. Brands need to reconsider their strategies on DTC channels in the post-epidemic era. Delivering brand…

China Private Traffic: Direct-to-Consumer Retailing Market Report 2023

£ 3,695 (Excl.Tax)

Description

“Despite the enthusiasm surrounding the potential of direct-to-consumer retailing, it has not seen anticipated growth. Brands need to reconsider their strategies on DTC channels in the post-epidemic era. Delivering brand values and philosophies through high-quality branded content and experience online and offline should be a priority for enhancing consumers’ loyalty through DTC channels. Meanwhile, brands could focus on developing ‘high-value’ consumers who have the potential to become repeat purchasers, innovators or key opinion leaders on their DTC channels to further capitalise on their private domain traffic.”
– Toby Xu, Research Analyst

Key issues covered in this Report

  • Consumers’ interactions with brands’ DTC channels, especially on the online DTC channels of brands
  • Consumers’ spending on brands’ DTC channels and the products they have bought in the past 12 months
  • Aspects that matter the most to consumers’ shopping experiences on brands’ DTC channels
  • Why consumers keep following brands’ official channels

Table of Contents

  1. Overview

    • What you need to know
    • Covered in this Report
  2. Executive Summary

    • The market
    • Consumers are returning to offline in the post-epidemic era
    • Private traffic is integrated into Uni Marketing (全域营销)
    • Brand self-operated live streaming becomes the mainstream
    • More intelligent customer service would empower brands’ private channels
    • Companies and brands
    • Delivering a differentiated customer experience in offline stores
    • Offering content with distinctive brand characteristics
    • Enhancing customer engagement through interest-based community
    • The consumer
    • Brands’ offline direct stores see great potential
      • Figure 1: Consumers’ engagement with brands’ private channels, 2022
    • Content/information is key to attracting consumers to brands’ DTC channels
      • Figure 2: Behaviours on online DTC channels, 2022
    • Beauty and personal care products are most popular on DTC channels
      • Figure 3: Spending on DTC channels by category, 2022
    • Simplifying the purchase journey matters most
      • Figure 4: Aspects important to consumers when shopping on DTC channels, 2022
    • Attractive content is critical to retaining consumers
      • Figure 5: Reasons for continuing to follow brands’ official channels, 2022
    • Enhancing brand-consumer bond in DTC channels
      • Figure 6: Attitudes towards DTC retailing, 2022
    • What we think
  3. Issues and Insights

    • Enhancing trust with quality brand content on DTC channels
      • Figure 7: To summer’ online content and offline experiential store, 2023
    • Focusing on developing “high-value” customers on DTC channels
      • Figure 8: Miniso’s co-creation activities and products, 2023
  4. Market Factors

    • Consumers are returning to offline in the post-epidemic era
    • Private traffic is integrated into Uni Marketing (全域营销)
    • Brand self-operated live streaming becomes the mainstream
    • More intelligent customer service would empower brands’ private channels
  5. Market Highlights

    • Delivering a differentiated customer experience in offline stores
    • Li-Ning
      • Figure 9: Li-Ning’s offline experiential store, 2023
    • Philips
      • Figure 10: VR experience space in Philips’ offline store, 2023
    • Offering content with distinctive brand characteristics
    • Zepp Health
      • Figure 11: Professional content and activities on Zepp Health’s official channels, 2023
    • Tai’er Sauerkraut Fish
      • Figure 12: Attractive cartoons on Tai’er Sauerkraut Fish’s official channel, 2023
    • Enhancing customer engagement through interest-based community
    • Pop Mart
      • Figure 13: Members’ comments and messages posted on Pop Mart mini-program and WeChat fan groups, 2023
    • Wuling Hongguang
      • Figure 14: Wuling Hongguang’s offline community activity, 2023
  6. Engagement with Brand Private Channels

    • Brands’ offline direct stores see great potential
      • Figure 15: Consumers’ engagement with brands’ private channels, 2022
      • Figure 16: Consumers’ engagement with brands’ private channels – have purchased, 2021 vs 2022
    • Brands’ official live streaming needs to show further differentiation
    • Online private channels more popular among tier 1 city consumers
      • Figure 17: Consumers’ engagement with brands’ private channels – have purchased, by city tier, 2022
    • High-income consumers are willing to try different DTC channels
      • Figure 18: Consumers’ engagement with brands’ private channels – have purchased or browsed, by monthly household income, 2022
    • DTC channels with social attributes appeal to females
      • Figure 19: Consumers’ engagement with brands’ private channels – have purchased or browsed, by gender, 2022
  7. Behaviours on Online DTC Channels

    • Content/information is key to attracting consumers to brands’ DTC channels
      • Figure 20: Behaviours on online DTC channels, 2022
    • Older consumers are more straightforward and hesitant to interact, especially males
      • Figure 21: Selected behaviours on online DTC channels, by gender and age, 2022
    • Utilising benefits to get referrals from multi-generation families
      • Figure 22: Selected behaviours on online DTC channels, by living situation, 2022
    • Engaging high-income consumers through shared value
      • Figure 23: Behaviours on online DTC channels, by monthly household income, 2022
  8. Spending on DTC Channels

    • Beauty and personal care products are most popular on DTC channels
      • Figure 24: Spending on DTC channels by category, 2022
      • Figure 25: Changes in spending on DTC channels among purchasers in the last 12 months, 2022
    • High-income consumers at the forefront of spending on DTC channels
      • Figure 26: Consumers who have purchased the following categories from brands’ official channels, by monthly household income, 2022
  9. Areas of Improvement for DTC Channels

    • Simplifying the purchase journey matters most
      • Figure 27: Aspects important to consumers when shopping on DTC channels, 2022
    • Enhancing the pre-purchase experience for consumers
      • Figure 28: TURF Analysis of aspects important to consumers when shopping on DTC channels, 2022
    • Satisfying the needs of multi-generation families
      • Figure 29: Selected aspects of DTC channels for improvements, by living situation, 2022
  10. Reasons for Retention

    • Attractive contents are critical to retaining consumers
      • Figure 30: Reasons for continuing to follow brands’ official channels, 2022
      • Figure 31: TURF analysis of reasons for continuing to follow brands’ official channels, 2022
    • Meeting the social needs of high-income consumers
      • Figure 32: Reasons for continuing to follow brands’ official channels, by monthly personal income, 2022
    • Connecting with non-spenders with promotions, spenders with emotion
      • Figure 33: Reasons for continuing to follow brands’ official channels, spenders vs non-spenders, 2022
  11. Attitudes towards DTC Retailing

    • Consumers trust the information from DTC channels
      • Figure 34: Selected attitudes towards DTC retailing, 2022
    • Enhancing brand-consumer collaboration in private domain
      • Figure 35: Selected attitudes towards DTC retailing, 2022
    • DTC channels should lean on service to stand out
      • Figure 36: Selected attitudes towards DTC retailing, 2022
    • Attracting consumers with more professional sharing
      • Figure 37: Selected attitudes towards DTC retailing, 2022
  12. Appendix – Methodology and Abbreviations

    • Methodology
    • Abbreviations
    • TURF Analysis – Methodology
      • Figure 38: Areas of improvement for DTC channels
      • Figure 39: Reason for retention

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