Branding on Bilibili: Key Principles and Bridging the Generation Gap
Plus: The livestreaming edge, China's film business on the ropes, and our Report Corner.
Though it lacks the user numbers of the video-streaming platforms controlled by China’s internet giants, the youth-oriented Bilibili (NASDAQ: BILI) — previously covered by CCI — has arguably been more successful in keeping its audiences engaged, stemming from its origins in the ACG (anime, comics and games) subculture.
Its distinctive interactive on-screen comment feature, rigorous membership test, and concentration of user-generated content underpin the sense of community, and more Gen Z and millennial Chinese want in. The platform saw significant growth in user numbers in 2019, with a 41% year-on-year increase in monthly users during the fourth quarter of 2019, to 130.3 million, and a doubling of its paid members, to 8.8 million and has drawn investment from Tencent, Alibaba, and Sony.
Bilibili is often compared to YouTube, though an important distinction is that it has long resisted the temptation to disrupt the viewer experience with ads, so brands seeking to reach its viewers must make greater efforts to integrate with content on the platform, generally by either establishing their own channels or working with popular creators.
As recent examples from Alibaba and McDonald’s show, these are becoming increasingly elaborate, showing sensitivity to what is likely to appeal to audiences that are more resistant to commercialization and have high-quality standards.
Authenticity: Commercial content must meet viewer expectations for honesty and trustworthiness. When brands work with creators, content that shares their actual experiences is more likely to succeed, allowing viewers to feel a personal connection with the individual on-screen.
Memes and subcultures: Content should fit with Bilibili platform, whether focused on ACG themes, trending memes, interactive video formats, or popular lifestyle subjects emphasized by creators such as travel, food, and beauty.
Evidence: When content is focused on product testing or “unboxing,” viewers tend to prefer an educational focus with fun facts or an in-depth analysis of features. Read more in Chinese.
Bilbili’s strong youth orientation has made some brands hesitant to invest in the platform amid concerns that its core demographic is still years away from having significant spending power. Yet the platform’s appeal to middle-aged audiences is growing as well, as evidenced by a recent video released for China’s Youth Day on May 4 that went viral.
In the four-minute clip, which was aired before state broadcaster CCTV’s nightly news program and promoted by other official media outlets, actor He Bing, 52, gives a motivational speech praising the younger generation, with clips paying homage to the creative spirit embodied by Bilibili’s core demographic. But while his words were criticized by some of the intended audience, they resonated more strongly with older viewers, who could become the next wave of Bilibili’s community as it seeks to diversify. Read more in Chinese from Media 360.
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Mentioned in today’s newsletter: Bilibili, Bona Film Group, Dingtalk, Huayi Brothers, Ketang, Taobao Live, Yintemate.
How China’s Top Livestreaming Platforms Seek to Stand Out
Even before the coronavirus outbreak in China, e-commerce livestreaming was surging, with the epidemic hastening its development — market leader Taobao Live reported a more than sevenfold increase in new merchants on the platform between January and February.
Meanwhile, rival platforms are developing their own strategies to drive consumption of social and economic recovery under “new normal” conditions:
Taobao is investing RMB 50 billion ($7 billion) into its livestreaming business. Apart from hosting top livestreamers Viya and Li Jiaqi, Taobao aims to support the development of 100,000 new livestream anchors with smaller followings. Taobao is also emphasizing the offline-to-online push with a goal of bringing 200,000 merchants to sell via 100 “cloud markets” spanning a range of product categories.
JD.com (NASDAQ: JD) is investing in multichannel network (MCN) partners and merchant stores, offering customized support services and added incentives such as subsidies and increased commissions. Its “2+2 Plan” includes a merchants’ conference and livestream business school.
Pinduoduo (NASDAQ: PDD) launched its livestreaming feature publicly in January and is still developing its base, opening the channel for all of its 536 million users to host livestreams while partnering with MCNs to develop a stable of online celebrities. The platform is leveraging social e-commerce to promote livestreaming, encouraging users to invite friends to watch broadcasts together in order to enjoy greater discounts.
Douyin has raised the threshold for e-commerce livestreamers to limit their numbers, and is relying on the star power of fewer big names to draw livestream audiences, though it may prove to be a risky strategy. Entrepreneur Luo Yonghao drew 48 million viewers for his debut livestream on April 1, but his subsequent broadcasts have seen audience and sales figures plummet.
Kuaishou users have long used the platform to sell products, and it is now focusing on developing its proprietary store to keep users from going to third-party platforms to complete sales. Kuaishou aims to merge content with e-commerce by investing in popular creators and IP to drive sales, and recently released a new plan to encourage more beauty livestreaming. Read more in Chinese from Media 360.
How Will the Movie Business Survive the Coronavirus?
China’s box office is expected to plummet to $4.2 billion this year, less than half of 2019’s $9.2 billion. With theaters shuttered indefinitely and no release dates in sight for completed films, thousands of production companies have gone out of business, and those that remain must focus on how to “rescue and sustain themselves.”
The lengthy (and in some cases permanent) theater closures are pushing some studios to devote more attention to producing content for TV and streaming video platforms, which could give a major upgrade to the quality of productions. Beijing Enlight Media, one of the few studios to turn a profit in 2019, has a slate of 14 dramas planned. Huayi Brothers, Bona Film Group, and Beijing Culture are among other big players turning to smaller screens.
Studios are also looking at the MCN business to tap into the potential of online celebrities for more diversified revenue streams. In February, Wanda Media cofounded one such firm, called Yintemate, which focuses on short video, e-commerce, livestreaming, advertising, and gaming. Actress Li Xiaolu signed on with the company and made a beauty-focused e-commerce livestreaming debut on Douyin, meshing with the short video platform’s turn to hosting celebrity-driven sales.
Meanwhile, cinemas have been forced to make even bigger pivots, from offering their spaces for photoshoots and basketball practice to engaging in livestreaming to sell snacks and derivative products. Read more in Chinese from Entertainment Capital.
Brand Film Pick: Tencent’s Lesson in Online Education
With schools across China shuttered for months due to the coronavirus outbreak, demand for online education services — already robust to begin with — has surged, reaching 423 million users as of March 2020, more than double the number at the end of 2018. Alibaba’s productivity platform Dingtalk has been widely adopted, with some 140,000 schools and 120 million students using it to hold classes.
Rival Tencent’s offering in this space, Ketang (腾讯课堂, “Tencent classroom), recently released a brand film to highlight how the platform can be used by older learners as well. Set during the coronavirus quarantine period, “There Are Always More Algorithms Than Bugs” (算法总比问题多) borrow’s the “desktop movie” format of the 2018 U.S. film “Searching,” with all of the action unfolding on the screen of one man’s computer, as he chats with family and friends, searches for a job, and learns new skills via Ketang.
The desktop setting showcases how many Chinese spent their time during quarantine (in front of screens) while offering an inspiring message of perseverance on both individual and social levels. Though the protagonist lost his job due to the epidemic, he took the opportunity to improve his coding skills through Ketang’s course offerings, and the audience gets a demo of the platform as he works his way through frustrating bugs (and dealing with the additional “bugs” of constant interruption) until he prevails by landing a coveted job interview that results in an offer.
The film was produced by Soulo, a Shanghai-based marketing and advertising firm. And while the concept and format are effective, some viewer comments on Weibo pointed out that the Ketang platform itself is quite buggy, undermining the image created by its film.
Report Corner
GroupM looks at trends in gaming during and after the coronavirus epidemic: Mobile games revenue rose by 37.6% in the first quarter, and since March Pinduoduo has seen a 2105 increase in sales of gaming equipment.
Chinese consumers remain cautiously optimistic, according to McKinsey’s latest survey of consumer sentiment, which finds that roughly half see the economy rebounding within two to three months.
JD.com’s report on consumption from January to April notes increased spending on outdoor goods, beauty products, and appliances in the last month.
News in English
Shanghai’s expansive 5.5 shopping festival may offer some lessons for how global brands can boost sales in the post-coronavirus recovery — though it should be noted that the Chinese model includes a heavy dose of government-led coordination. WWD
Luxury brand participation in the 5.5 shopping festival is booming, with major conglomerates such as LVMH, Kering, Richemont, and L'Oréal planning to launch hundreds of new products in China during the two-month-long event. WWD
How Chinese platforms have made e-commerce palatable to luxury brands wary of diluting their images through online sales. SCMP
Tmall’s head of fashion and luxury in Europe explains that the new Luxury Soho outlet platform can help brands use content to drive sales of excess inventory through livestreaming, augmented reality, and 3D interactive technologies. Alizila
Video platforms will move to the forefront of China’s film industry in the post-coronavirus era, following the seismic changes in the entertainment sector over the past few months. Variety
MAC Cosmetics debuted its second collaboration with the popular Tencent game “Honor of Kings,” as other beauty brands flock to esports as a way of connecting with consumers. Glossy
More advice for brands looking to get into gaming: It’s not a fad, and it’s necessary for brands to understand which platforms are best suited to their purposes. AW Gaming
Supreme is the latest overseas brand to win out on the trademark front against would-be competitors in China. Hypebeast
A look at five of China’s leading trendy tea shop chains, which have been at the forefront of innovative marketing through digital content and collaborations. Pandaily
Oreo collaborated with C-beauty brand Perfect Diary on a limited edition cookie-and-cosmetics gift box featuring seasonal flavors and matching compacts. Food Navigator
Chinese travelers made 115 million trips during the five-day Labor Day holiday, somewhat more than earlier forecasts in the 90 million range, spending $6.79 billion, or nearly 60% less than in 2019, when the holiday was one day shorter. CNBC
Mickey Mouse and friends will maintain social distancing when Disney reopens its Shanghai theme park on May 11 with strict limits in visitor numbers. Reuters
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Thank you for reading! We will be back next Tuesday, but in the meantime, reach out with any questions, comments, or advertising inquiries!