Time for Brands to Do a Discount Detox? With Jacques Roizen

11/15/24 • 41 min

ShanghaiZhan: All Things China Marketing, Advertising, Tech & Platforms

We’re unpacking a critical issue affecting luxury and prestige brands operating in China’s discount-heavy e-commerce landscape. With platforms like Tmall and JD and emerging competitors like Douyin and Pinduoduo, brands are constantly pressured to use aggressive discounting strategies to boost sales and visibility.
Jacques Roizen, managing director of China Consulting at Digital Luxury Group, joins us as an industry expert who guides some of the world’s top prestige and luxury brands through these challenges. Together, we’ll explore the long-term impact of discount culture on brand equity, why some brands are starting to ‘detox’ from discounts, and how the rise of the gray market is reshaping consumer expectations.
1. How did you enter the e-commerce luxury business in China?
2. Give us the history of premium/luxury e-commerce and how it evolved from its early days.
3. How important is e-commerce for new consumers to learn about new brands?
4. Where's the pressure for brands to discount so much?
5. Is GMV still an effective measure of performance in e-commerce?
6. How can brands discount detox?
7. Who in the organization can orchestrate a discount detox?
8. What should brands do to improve brand equity? Is livestream a way to do this?
Jacques on LinkedIn: https://www.linkedin.com/in/jacquesroizen/
About DLG: http://www.digitalluxurygroup.com/
For everything ShanghaiZhan: http://zhanstation.com/
Got a Question? Access Our Mailbox: https://syracuseuniversity.qualtrics.com/jfe/form/SV_6StjsljIEPkXt3M
ShanghaiZhan Theme Music: by Bryce Whitwam
https://soundcloud.com/bryce-r-whitwam/bad-cough-syrup?si=cfb30a6e0c0e459da78b912bf60825ac
Got a Question? Access Our Mailbox: https://syracuseuniversity.qualtrics.com/jfe/form/SV_6StjsljIEPkXt3M
ShanghaiZhan Theme Music: by Bryce Whitwam
https://soundcloud.com/bryce-r-whitwam/bad-cough-syrup?si=cfb30a6e0c0e459da78b912bf60825ac
Bryce on Linkedin: https://www.linkedin.com/in/brycewhitwam/
Ali on Linkedin: https://www.linkedin.com/in/alikazmi/

Previous Episode

Targeting Outbound Chinese Travelers with Subramania Bhatt and Mark Shrives

Chinese outbound travel is returning, which is great news for luxury brands. To many brands, overseas travel has always been a source of awareness, validation and purchase. How can brands take advantage of this opportunity? We speak to Subramania Bhatt, CEO of the China Trading Desk, a digital marketing and research firm targeting these travelers. Subbu's company recently published a travel insights study that shows a changing Chinese travel demographic. Joining Subramania is Mark Shrives. Mark leads Marriott Digital Services for Asia, which is based in Bangkok. Alongside his team of 35 digital consultants, Mark guides Marriott International's APEC portfolio of hotels in directly implementing cutting-edge digital strategies.
1. What's the latest about the Chinese overseas travel situation? Has it bounced back to its pre-COVID levels?
2. From the hotel side, how might travelers be changing?
3. How have influencers impacted travel experiences?
4. What's a typical traveler customer journey?
5. What's the hotel's strategy in targeting Chinese tour groups to overseas hotels?
6. How much differentiation can you offer on an OTA platform?
7. What motivates people to shop outside China? Is it all about saving money?
8. What is the importance of using influencers to target travel experiences?
9. How have hotels integrated their offerings to the new wave of Chinese tourists looking for experiences?
10. Are we seeing an overlap in age groups and craving experiences? And why so many Chinese women?
11. Are we seeing more Chinese taking advantage of hotel loyalty platforms?
12. Do you have a hidden gem travel destination?
13. Shanghai Zhan Mailbox: Will Xiaohongshu go global?
Subbu on LinkedIn: https://www.linkedin.com/in/subramania/
The China Trading Desk: https://www.chinatradingdesk.com/
Travel Survey Link: https://survey.chinatradingdesk.com/
Mark on LinkedIn: https://www.linkedin.com/in/markedwardshrives/
For everything ShanghaiZhan: http://zhanstation.com/
ShanghaiZhan Theme Music: by Bryce Whitwam
https://soundcloud.com/bryce-r-whitwam/bad-cough-syrup?si=cfb30a6e0c0e459da78b912bf60825ac
Bryce on Linkedin: https://www.linkedin.com/in/brycewhitwam/
Ali on Linkedin: https://www.linkedin.com/in/alikazmi/

Next Episode

From Mass Appeal to Micro Moments: The Future of China Livestream E-Commerce

We're thrilled to re-broadcast an insightful episode from the Sinica Podcast, where host Kaiser Kuo sits down with Bryce Whitwam to delve into the ever-evolving world of Chinese livestream e-commerce. Bryce's latest research highlights a fascinating shift: Chinese consumers increasingly gravitate toward smaller, more personalized livestream shows that foster greater interaction with hosts. While large-scale shows with millions of viewers still exist, they’re gradually being replaced by micro-targeted streams on platforms like Xiaohongshu and Douyin, which offer a more authentic and engaging experience. This evolution carries significant implications for brands looking to connect with highly targeted audiences in China. It could hint at the future of livestream shopping in the West, especially as TikTok explores similar trends.
1. How did you first engage with the livestream e-commerce trend in China?
2. What’s the history of livestream commerce, and how has it evolved since its inception?
3. How does livestreaming contribute to consumer engagement compared to traditional retail?
4. What differentiates Douyin, Xiaohongshu, and Taobao as livestream platforms?
5. What role does authenticity play in driving consumer trust in livestreaming?
6. How do demographics like age, gender, and location influence livestream shopping behavior?
7. What are the key differences between China’s livestream strategies and the U.S.’s early adoption of TikTok Shop?
8. How are niche and microtargeted livestreams reshaping consumer behavior?
9. What challenges or disruptions could affect livestream commerce’s growth in China?
10. What does the rise of livestreaming tell us about broader changes in Chinese consumer culture?
11. Recommendations
Sinica Podcast on Substack: https://www.sinicapodcast.com/
Sinica Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/sinica-podcast/id1121407665
Sinica Podcast on LinkedIn: https://www.linkedin.com/company/sinicapodcast/posts/
Kaiser Kuo on LinkedIn: https://www.linkedin.com/in/kaiserkuo/
For everything ShanghaiZhan: http://zhanstation.com/
Got a Question? Access Our Mailbox: https://syracuseuniversity.qualtrics.com/jfe/form/SV_6StjsljIEPkXt3M
Bryce on Linkedin: https://www.linkedin.com/in/brycewhitwam/
Ali on Linkedin: https://www.linkedin.com/in/alikazmi/