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Although China's economic growth is slowing down, China is still an economic powerhouse. China's economy grew 6.2 percent in the second quarter of this year, down from 6.4 percent in the previous quarter. This is the slowest pace since 1992, and is clearly a significant drop from the 14.2 percent growth rate 12 years ago. However, a January study from eMarketer predicts that China will overtake the United States as the world's largest retail market this year. That's why it remains crucial for brands and retailers to stay connected to China, especially on e-commerce platforms.

According to the data released at the 2019 Gartner Marketing Forum held in San Diego, considering that Chinese consumers shop online and shop through mobile phones more often, and China's population is close to 1.4 billion, according to Statista statistics, there are nearly 1.6 billion mobile phone users registered in China, and the Chinese market is obviously full of opportunities. According to eMarketer, China's total retail sales this year are expected to exceed $5.6 trillion, $100 billion more than the United States.

David Liu, an analyst at Shanghai-based China Market Research Group (CMR), said that when buying new clothes, "Chinese consumers are increasingly interested in clothing brands and retailers that not only offer fashion products, but also provide a different product experience from other brands."

According to the Chinese consumer survey conducted by the Cotton International Association (CCI) and Cotton Incorporated of America, e-commerce has grown across China in the past three years, with mobile being the most significant. Last year, 64% of consumers purchased clothing online through their mobile phones, up from 55% in 2017 and 50% in 2016. In contrast, clothing purchases through tablets (13%) and through desktops (30%) increased by only about 2% over the same period.

According to the Chinese consumer survey, more than 1/3 (34%) of Chinese consumers buy clothes through their mobile phones about every 2 to 3 months. Another 21% buy once a month through their mobile phone, 18% buy every 4 to 5 months, and 14% buy every 2 to 3 weeks.

According to the China Consumer Survey, clothing consumers in China are inspired by the people around them, such as friends and colleagues (67%) and family (62%), in-store displays and windows (53%), and in-store sales (45%).

Unlike American consumers, Chinese people rarely rely on emails sent by brands. According to a study by the Sales Tracking Generation Software Optinmonster, 60% of U.S. consumers say they buy products because of email marketing messages. In contrast, only 1% of Chinese consumers say they get their clothing inspiration from marketing emails. Only 2% of people start their online clothing shopping experience by receiving emails from retailers and brands.

The Chinese consumer survey also shows that the vast majority of Chinese consumers (96%) start shopping from websites like Tmall (e-commerce only). This is followed by retailer or brand websites (39%), social media websites (23%), search engines (21%), fashion or fashion trend websites (18%) and blogs (5%).

The Gartner report describes Tmall as the "Chinese version of Amazon" because it is a huge e-commerce platform that does not keep inventory, but provides a marketplace platform for others. In addition, WeChat was originally a one-to-one information platform, but now it has become a comprehensive consumer service platform. For example, Gartner said, users can find car-sharing services in the app, make a ride request and pay for everything. In addition, WeChat also provides brand-sponsored applets through which consumers can view products and promotions.

But brands must also recognize that "everything in China is paid," according to Gartner ". On social media, for example, brands pay if they want their messaging and marketing campaigns to go smoothly.

But, says CMR's David Liu, social media is very good for the apparel industry.

He said: "Social media enables both big and small brands to have greater flexibility and efficiency in their marketing activities." Social platforms and apps like Red and Tik-Tok work with influencers of all kinds, including celebrities, movie and TV stars, and fashion/food/lifestyle bloggers. In this way, the brand can choose to work with the most popular influencers among the target consumers to deliver the brand's message in the most effective way. In addition, because there are various influencing factors to choose from, brands can always find the best plan to influence consumers within their budget."

Chinese consumer surveys show that Chinese consumers mostly use social media sites to watch videos and read, rather than buy clothes. However, as social media is a tool for information sharing and interaction, more and more consumers expect brands and retailers to use these platforms to provide ideas and suggestions on what to wear (48%), share their latest clothing styles (44%), share coupon information, promotion and discount information (41%), and provide exclusive discounts and coupons for loyal fans (36%), and release entertainment videos about their products. Slightly more than 1/4 of consumers (27%) want social media sites to buy clothing.

For consumers, it is fake reviews, advertisements, social accounts and counterfeit products. This type of information can have a negative impact on brands, with only 53 percent of consumers saying they trust brands, compared with 65 percent two years ago, Gartner said. The company said that blockchain offers a unique opportunity for brands to address these trust issues, especially when it comes to supply chain and transparency.

Major Chinese companies are already addressing these consumer concerns, Liu said.

"Major online shopping platforms like Tmall and JD, as well as brand marketing-focused social platforms like Red, are working hard to reduce the number of fake reviews and counterfeit products," Liu said. Consumers are increasingly aware of buying products from authorized channels (such as Tmall and Jingdong's brand flagship online stores) and shopping malls. The decline in brand trust means that consumers are more aware of fake reviews and fake and shoddy products."

While it is not easy to restore trust, Liu agrees with Gartner that steps can be taken to improve the situation.

"Brands should better manage and maintain their online stores and avoid fake reviews," he said. They should also provide quality products and after-sales services to ensure consistency between actual consumer experience and reviews to build consumer trust. Blockchain technology offers a solution to the trust problem. Every transaction can be tracked through the blockchain, so if any link on the transaction line is identified as containing false information or products, we can dig out the entire line."