Selling to Chinese Customers: Tips & Strategies for Australian & NZ Businesses

In an environment where consumers are subjected to a high volume of communications and marketing messages, Chinese consumers crave content which is genuine and engaging, rather than straight-up sales-driven material.

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If you're  reading this you've probably identified a great opportunity for your  Australian/New Zealand business to engage with Chinese consumers. You're  already off to a great start - being aware, receptive and open to change will  put you in a great position to grow with the growing Chinese market in a  meaningful way.

In this guide  we'll discuss the size of the opportunity, breaking down Chinese consumer  behaviour trends and preferences across online marketing, key occasions on  the Chinese calendar and the impact of offering familiar and frictionless  payment methods.

The Size of the  Opportunity

Chinese born and  Chinese descendants make up a significant portion of Australia's population.  At the end of June 2022 there were 597,440 Chinese born people living in  Australia (Department of Home Affairs, 2022) and 1.4 million people with  Chinese ancestry (Lowy Institute, 2023).

Many  Chinese spend time in Australia for studying, as of July 2023, there were  approximately 152,000 Chinese international students (Statista, 2024). Australia is also a top holiday destination, with 535,000 Chinese tourists  visiting Australia in 2023 (Statista, 2024). This was lower than the  pre-COVID peak of 1.438 million in 2019 but still represents significant  growth from 2020-2022 levels and is encouraging considering the economic  climate. When Chinese tourists visit Australia, they will often bring their  family, visit multiple cities and spend about $9000 per visitor (AFR,  2023).

Ignore these consumers at your own peril!

Strategies for Success

Many  Australian businesses have excellent opportunities to engage with Chinese  customers - and don't even realise it! These are some strategies that'll give  you a headstart on your competitors.

Use  Mandarin Where Possible

While most Chinese-Australians can read and speak English well, half would like to  see more Australian companies communicate in Mandarin (The University of  Sydney, 2023). Many Australians are surprised to learn that Mandarin is the  second most spoken language in Australia. Ignore this and it becomes a  hurdle, factor this into your marketing strategy and it becomes your key  strength.

Use Mandarin for written  communications such as your website or landing page translations and in-store  promotional materials. For sales and customer service, hire an employee who  is fluent in Mandarin who can make customers feel welcome, engaged and properly supported.

Build Trust  with Key Opinion Leaders

In an environment where consumers are subjected to a high volume of communications  and marketing messages, Chinese consumers crave content which is genuine and  engaging, rather than straight-up sales-driven material. This is especially  important for online marketing, where users are exposed to high levels of  marketing messages and instinctively fail to engage and swipe past content  that fails to engage and offer  value.

Chinese consumers often  follow and trust user generated content from Key Opinion Leaders (KOLs) on  platforms like Little Red Book (also known as RED). KOLS are considered to be  informed and trustworthy and have large, loyal followings. They achieve this  by creating content that tells stories that share experiences and display  personality. This content is more effective at hooking people in and holding  them, as it doesn't appear to be about  selling.

Choose the Right Platforms

There are great opportunities to engage with  Chinese consumers on social media. While many countries use Instagram,  Facebook, X or LinkedIn, Chinese consumers also use different platforms.  Whether you're targeting Chinese consumers living or travelling in Australia,  or targeting those living in China, it's worth spending time to develop your  presence in these spaces.

WeChat

WeChat  (or Weixin in Chinese) is a social media, instant messaging, e-commerce and  payment platform that is commonly referred to as China's ˜app for everything'  (Fast Company, 2017). There are over 1 billion monthly active users globally,  while in Australia 54% of all Chinese-Australians aged 18 to 44 use WeChat  daily (Lowy Institute,  2023).

WeChat's Moments and News  Feeds are similar to that ofInstagram and Facebook, with endless  opportunities to engage users with text, image and video content. Like the  Meta platforms, content can be organic (non-paid) or businesses can use the  WeChat advertising platform, targeting audiences by demographics, interests,  device, time, behavioural characteristics and specific  exclusions.

Little Red Book

Little Red  Book (or Xiaohongshu in Mandarin) is a popular Chinese social shopping app  that offers great opportunities for popular and luxury fashion, beauty,  retail, furniture, as well as cafes, bars and even real estate  brands.

Users share content such  as product photos, reviews and tips, with Key Opinion Leaders engaging their  loyal followers. Like Pinterest and Instagram, there's lots of likes,  comments and shares and users even use it as a search engine for related  products.

Like WeChat, Little Red  Book also offers an ad platform for brands who wish to consistently and  reliably reach a relevant audience of significant  size.

Mainstream Social Media Platforms

Popular mainstream  social media platforms such as YouTube, TikTok and Instagram are also widely  used by Chinese-Australians and can be factored into your customer  acquisition strategy. YouTube has similar levels of usage to WeChat with 58%  of Chinese-Australians using the platform daily, with Facebook at 49%,  Instagram at 38% and TikTok at 26% (Lowy Institute,  2023).

Given that these platforms  are also used by consumers from other backgrounds, your content and  advertising may need to be more targeted to stand out to Chinese audiences,  including targeted hashtags can also be helpful for  search.

Due to China's censorship  laws, you won't be able to reach people in China via Instagram, Facebook or  YouTube.

Key Dates on the Chinese  Festive Calendar

Depending on the  type of product/service you offer, there may be excellent opportunities to  reach Chinese customers in the leadup and during key festive occasions.

Retail  and hospitality businesses in particular have excellent opportunities to  engage with Chinese consumers. Mark these dates on your  calendar:

Chinese New Year

The  exact date of this is determined by the lunar calendar and usually falls  between 21 January and 20 February each year. The 2025 Chinese New year is on  29 January. During this time family and friends will gather, pay respect to  their deceased ancestors and enjoy each other's company over food,  particularly dumplings and seafood. Celebrations can last for about two  weeks, commencing on Lunar New Year's Eve and finishing up at the Lantern  Festival.

<img width="600" height="400"  src="https://www.novatti.com/wp-content/uploads/2024/07/chinese-new-year-dragon.jpg"  alt="selling to Chinese consumers in Australia at Chinese New Year"  loading="lazy"  srcset="https://www.novatti.com/wp-content/uploads/2024/07/chinese-new-year-dragon.jpg  600w,  https://www.novatti.com/wp-content/uploads/2024/07/chinese-new-year-dragon-300x200.jpg  300w" sizes="(max-width: 600px) 100vw, 600px"  />

618 Shopping  Festival

This festival is similar  to Black Friday and takes place from 1 - 18 June each year. Initially created  by ecommerce retailer jd.com to celebrate their anniversary, this has grown  into a major Chinese shopping event with many retailers partaking in  large-scale sales and promotions (Marketing to China,  2024).

Chinese Valentine's  Day

Chinese Valentine's Day  (known as Qixi or Double Seven's Festival), typically falls on the 7th day of  the 7th lunar month.

Two things to remember - don't promote umbrellas or shoes as gifts.  Giving an umbrella is considered a bad omen as the Chinese name for umbrella  sounds similar to ˜breaking up', while giving shoes implies ˜packing off your  love'.<img width="154" height="83" src="https://www.novatti.com/wp-content/uploads/2024/07/china-highlights-top-navigation-logo.png"  alt="" loading="lazy" />     China Highlights

Moon Festival

Moon  Festival (also known as Mid-Autumn Festival or Mooncake Festival) is a  harvest festival that is celebrated on the 15th day of the eighth month in  the Han calendar. The 2024 Moon Festival is on 17 September. This popular  festival has been celebrated for over 3000 years, celebrating the three core  concepts of gathering, giving thanks and  praying.

Brands that have  successfully catered to this festival include GODIVA and their chocolate mooncake  gift boxes and Chinese Tea Cafe brand HEYTEA who launched a new drink called  ˜Moon Gazing' (Chin Communications,  2024).

Singles Day

Also  known as ˜Double 11', this anti-Valentines Day celebration occurs on 11  November each year, with the date 11/11 cryptically representing ˜single  sticks', a Chinese slang term for bachelors. This date is celebrated by  single Chinese individuals buying themselves a present. While not as big as  Black Friday or other big Chinese festivals, it's worth noting for  retailers.

<h2>The Right Payment  Methods</h2>

A key part of  understanding Chinese consumer behaviour is to understand their common  preferred payment methods. There are differences in the common payment  methods used in China and Australia, and limits Chinese nationals face when  spending overseas. For Chinese mainland residents, there is a USD $50,000  annual limit on money transferred outside of mainland China.

Businesses  that are financially inclusive and provide payment methods familiar to  Chinese consumers have opportunities to stand out from their competitors,  increase customers and obtain larger transactions. It goes beyond these  benefits and demonstrates that you understand and welcome Chinese consumers, which is a worthwhile statement to make.

Chinese consumers are  advanced in the usage of electronic wallets such as Alipay, WeChat Pay and  Union Pay. These are the preferred payment methods for Chinese people  visiting Australia and spending RMB. 59 per cent of Australian-Chinese are  more likely to buy from a shop that offers the WeChat service (The University  of Sydney, 2023).

This is much  more than reaching tourists and includes a vast audience when you consider  the amount of students, newly arrived migrants and others who are staying for  an extended period for business or family  reasons.

How Chinese Wallets Improve in-store Transactions

It's important to  understand the differences in the evolution of in-store payment methods in China and Australia. While Australians have experienced a gradual evolution  from cash, to cards, to mobile phone payments, Chinese consumers lept from  cash to mobile payments, many skipping cards entirely (We are Planet,  2024).

There has been significant  growth in this space, with over 10,000 Australian retailers accepting at  least one Chinese wallet.

In-store  payments can be made by enabling clients to scan a QR code that  allows users to pay using a Chinese wallet (instead of using a card at an  EFTPOS terminal) and send funds to the retailer.

How Chinese Wallets Improve Online Transactions

Online transactions  from a Chinese bank account to an Australian business can be difficult for numerous reasons.

Chinese mainland  residents are restricted by an annual limit of $50,000 USD on funds  transferred outside of mainland China. These restrictions are in place due to  China's anti-money laundering regulations and those who wish to transfer  depreciating RMB funds into USD.

These  restrictions can cause difficulties for those who transfer funds frequently  or make larger transactions for items such as school or university tuition,  rent, car or the purchase of a home. Even if Chinese payer's are not concerned  about the $50,000 USD limit, they face significant costs from bank transfers,  or alternatives such as Paypal or Western Union where they face high  fees.

Fortunately there is a  solution which enables Chinese consumers to make these payments without  contributing to the $50,000 USD limit and without excessive fees. Novatti has  worked with a number of businesses with high value Chinese customers to  implement white-label Chinese payments platforms which allow people in China  to pay via BPay from either the Alipay, WeChat Pay or Union Pay Chinese  wallets. Chinese customers benefit from these easy, lower cost methods and  the Australian businesses benefit from the increased speed in which they  receive payments and handle  reconciliation.

One example of  this is Unilodge, a leading provider of university student housing for most  universities throughout Australia and New Zealand. These payments are usually  made from family members in China, who are able to make these payments from  their Chinese Wallets, with ease and without impacting the $50,000 USD limit.  This enables Unilodge to receive payments quicker, results in less time  following up on outstanding payments or discussing payment issues with  families and enables efficient payment  reconciliation.

Mistakes to  Avoid

When conducting business  with different cultures it's important to recognise and be mindful of  cultural differences and being seen to exploit those of a particular  background for financial gain (Chin Communications, 2024).

Key mistakes to avoid when  marketing and conducting business with Chinese consumers include:

Misuse of Cultural  Symbols

Icons like Mooncakes, the full moon, Jade Rabbits, and Chang'e hold deep cultural significance. It's  important to ensure that these are used for the correct festive events and  are not overused e.g. displaying Mooncakes for general always-on marketing  materials.

Language and  Translation

The big tip here is to avoid using online  translation tools. These are not always accurate and don't always understand  cultural nuances that may cause certain communications to be fine in one  country, but off-putting or offensive in others. If you don't know someone  fluent in Mandarin and English who is capable of translating, it's best to  source a NAATI certified translator (the highest level of translator  certification in Australia).

Getting Your Business Ready for Chinese  Consumers

Are you ready to make your business more inclusive for Chinese consumers? Novatti works with  businesses throughout Australia and New Zealand to ensure they're able to  offer familiar and easy-to-use payment methods for Chinese  consumers.

Offering acceptance of Chinese wallet payments through in-store QR codes and online  payment gateways enables you to receive more frequent and higher value  transactions from Chinese consumers, greater customer satisfaction and  simplified payment reconciliation processes.

If  you have any questions or would like to have a friendly chat, please contact  us.

Source

https://www.homeaffairs.gov.au/research-and-statistics/statistics/country-profiles/profiles/peoples-republic-of-china

https://interactives.lowyinstitute.org/features/chinesecommunities/reports/2023%20Being%20Chinese%20in%20Australia%20Poll%20%E2%80%93%20Lowy%20Institute.pdf

https://www.statista.com/statistics/1315806/australia-number-of-visitors-from-china/

https://www.afr.com/companies/retail/can-chinese-tourists-help-save-australian-retailers-20230201-p5ch3s

Can Chinese tourists help save Australian retailers? Carrie LaFrenz and Simon  Evans, Feb 3 2023.

https://www.statista.com/statistics/980655/number-international-students-australia-country/#:~:text=As%20of%20July%202023%2C%20there,Australian%20universities%20as%20of%202023

https://www.fastcompany.com/3065255/china-wechat-tencent-red-envelopes-and-social-money

https://www.chinahighlights.com/festivals/valentine-day.htm

https://www.weareplanet.com/blog/most-popular-chinese-payment-methods

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