Page 244 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
Merchandising in the Metaverse Alibaba is also investing in virtual and
augmented realities to help lure more shoppers
Throughout 2022, China has been quite to its platform. One of the ways of engaging
proactive in preparing for and paying close these new-age luxury consumers is with "Timo,"
attention to the metaverse, the so-called vision a virtual influencer that will advertise brands and
for the next generation of the internet. In March, their products, such as 3D digital collectibles, a
during the "Two Sessions” plenary meeting, two home-made variation of non-fungible tokens
of China's major political bodies discussed the that is compatible with Taobaolife, Alibaba's own
metaverse on a national level; this was the first virtual world within the metaverse. According
time it was considered at this scale. In order to Nicholas Cano, a development director at
to keep China's digital economy competitive, Alibaba, the characteristics that really stand out
delegates of both gatherings recommended in the luxury market are brands with a captivating
dedicating more resources to nurturing talent presence and solid principles. Examples of these
and encouraging technological advancements in are Christophe Lemaire, Courbet, and La Bouche
the metaverse. As the metaverse evolves, we can Rouge. He emphasizes the consumer's desire
expect more legal and regulatory obstacles. Before for improved environmentalism, diversity, and
investing, investors should assess metaverse- transparency – more so than design quality
related companies against the larger legal context. (Guinebault). Overall, the future of the Chinese
Although there are many challenges, investors are metaverse industry looks extremely bright with
eager to get into the metaverse space. However, projected sales of US$ 28 billion over the next
they should remember that “mainstream adoption five years (Yiran).
of the metaverse will likely take a considerable
amount of time given the potential legal and New Retail
regulatory hurdles” (Pan).
During the Year of the Tiger, the “China Chic”
China’s largest online commerce company, phenomenon exploded in popularity with the
Alibaba, wasted no time in preparing for the younger generation to celebrate their culture
metaverse in 2022. For its “11.11 Global Shopping and distinguish themselves from others. The
Festival,” a single-day discount event, Alibaba guochao, or “China Chic” fashion blend, has
celebrated the fifth anniversary of its luxury and become a global sensation ever since Li-Ning's
premium product offerings. This “Luxury Pavilion” debut at New York Fashion Week in 2018. It
has attracted numerous Western brands, such as couples stylish, modern designs with elements
LVMH, Richemont, Kering, Chanel, and Hermès. from Chinese culture. After the Li-Ning show,
Brands that specifically target Chinese millennials many Chinese brands emerged to join the wave
have been turning to “live shopping” and the of China Chic. The 2022 Winter Olympic Games
metaverse. The pavilion is a separate entity on in Beijing allowed young people to display
Tmall, the marketplace which reaches 800 million their love for China Chic. The sports apparel
customers amongst 290,000 brands. The Luxury for athletes featured Chinese symbols, such as
Pavilion seeks to capture a fraction of this audience dragons, pandas and tigers, while the designs at
as well, with active consumer count significantly Olympic venues included pictures of the Great
increasing by 153 percent between 2019 and 2021, Wall and auspicious patterns. A display of China
while business volume jumped by 309 percent. Chic can be seen during the opening and closing
Yoox Net-a-Porter and Farfetch have both joined ceremonies, plus in the design of medals and
the Pavilion as well. The Pavilion is an attractive souvenirs. And, pop culture designer Yu Yang,
destination for luxury brands, as 67 percent of its known as the “China Chic” artist had a busy year
customers are Chinese millennials. Alibaba has as he released a lineup of jackets in collaboration
experienced the highest growth in young adult with K-Boxing menswear. Other artists such
consumers who use social media frequently, as Gong Xu even rolled out designer toys with
dubbed “Gen Zs.” In fact, 17 percent of those who interesting, innovative styles that help young
visit the Pavilion are Gen Zs, which has increased people “dig deeper into the culture” (Zhangyu).
by two points from 2020 to 2021 (Guinebault).
244
Merchandising in the Metaverse Alibaba is also investing in virtual and
augmented realities to help lure more shoppers
Throughout 2022, China has been quite to its platform. One of the ways of engaging
proactive in preparing for and paying close these new-age luxury consumers is with "Timo,"
attention to the metaverse, the so-called vision a virtual influencer that will advertise brands and
for the next generation of the internet. In March, their products, such as 3D digital collectibles, a
during the "Two Sessions” plenary meeting, two home-made variation of non-fungible tokens
of China's major political bodies discussed the that is compatible with Taobaolife, Alibaba's own
metaverse on a national level; this was the first virtual world within the metaverse. According
time it was considered at this scale. In order to Nicholas Cano, a development director at
to keep China's digital economy competitive, Alibaba, the characteristics that really stand out
delegates of both gatherings recommended in the luxury market are brands with a captivating
dedicating more resources to nurturing talent presence and solid principles. Examples of these
and encouraging technological advancements in are Christophe Lemaire, Courbet, and La Bouche
the metaverse. As the metaverse evolves, we can Rouge. He emphasizes the consumer's desire
expect more legal and regulatory obstacles. Before for improved environmentalism, diversity, and
investing, investors should assess metaverse- transparency – more so than design quality
related companies against the larger legal context. (Guinebault). Overall, the future of the Chinese
Although there are many challenges, investors are metaverse industry looks extremely bright with
eager to get into the metaverse space. However, projected sales of US$ 28 billion over the next
they should remember that “mainstream adoption five years (Yiran).
of the metaverse will likely take a considerable
amount of time given the potential legal and New Retail
regulatory hurdles” (Pan).
During the Year of the Tiger, the “China Chic”
China’s largest online commerce company, phenomenon exploded in popularity with the
Alibaba, wasted no time in preparing for the younger generation to celebrate their culture
metaverse in 2022. For its “11.11 Global Shopping and distinguish themselves from others. The
Festival,” a single-day discount event, Alibaba guochao, or “China Chic” fashion blend, has
celebrated the fifth anniversary of its luxury and become a global sensation ever since Li-Ning's
premium product offerings. This “Luxury Pavilion” debut at New York Fashion Week in 2018. It
has attracted numerous Western brands, such as couples stylish, modern designs with elements
LVMH, Richemont, Kering, Chanel, and Hermès. from Chinese culture. After the Li-Ning show,
Brands that specifically target Chinese millennials many Chinese brands emerged to join the wave
have been turning to “live shopping” and the of China Chic. The 2022 Winter Olympic Games
metaverse. The pavilion is a separate entity on in Beijing allowed young people to display
Tmall, the marketplace which reaches 800 million their love for China Chic. The sports apparel
customers amongst 290,000 brands. The Luxury for athletes featured Chinese symbols, such as
Pavilion seeks to capture a fraction of this audience dragons, pandas and tigers, while the designs at
as well, with active consumer count significantly Olympic venues included pictures of the Great
increasing by 153 percent between 2019 and 2021, Wall and auspicious patterns. A display of China
while business volume jumped by 309 percent. Chic can be seen during the opening and closing
Yoox Net-a-Porter and Farfetch have both joined ceremonies, plus in the design of medals and
the Pavilion as well. The Pavilion is an attractive souvenirs. And, pop culture designer Yu Yang,
destination for luxury brands, as 67 percent of its known as the “China Chic” artist had a busy year
customers are Chinese millennials. Alibaba has as he released a lineup of jackets in collaboration
experienced the highest growth in young adult with K-Boxing menswear. Other artists such
consumers who use social media frequently, as Gong Xu even rolled out designer toys with
dubbed “Gen Zs.” In fact, 17 percent of those who interesting, innovative styles that help young
visit the Pavilion are Gen Zs, which has increased people “dig deeper into the culture” (Zhangyu).
by two points from 2020 to 2021 (Guinebault).
244
