China’s frequently growing middle class and younger generation are continually contributing to the rapid growth of the luxury goods market. Just as e-commerce is becoming more social — social media is becoming more sales centric and word-of-mouth is one of the most convincing approaches for this phenomenon called social shopping. Social shopping has gone from being a nice thought up idea to a vital asset in any company’s toolkit when expanding to China, but if any one type of platform is best suited to ride the wave then it’s the Little Red Book (RED), locally known as Xiao Hong Shu.
The vast and lucrative Chinese market offers a wide range of opportunities for B2B businesses. With a population of over 1.3 billion, breaking into the Chinese market can be very attractive to almost any business, but there have been a few notable companies that have come short trying to expand in the industry. As you might expect, B2B marketing operates differently in China than it does in the West.