This report is about how and why young Chinese women are using e- commerce and social media to make their shopping choices. We conducted ethnographic research with 10 young women who are avid online clothing shoppers in Beijing, Shanghai, and Chongqing. This report is all about young women and clothes, but the conditions and drivers behind the behavior have implications well beyond cheap and cheerful online fast fashion. Because what we see is that for young consumers in China, the starting point for shopping is shifting from advertising, brands, and retailers… to people.

1. ONLINE SHOPPING
NEIGHBORHOODS
How young Chinese consumers
navigate the online marketplace
Jay Mark Caplan
Helen Yu

2. CONTENTS
Part 1: INTRODUCTION
Part 2: ONLINE SHOPPING
Part 3: ONLINE SHOPPING NEIGHBORHOODS
Part 4: KEY FEATURES
Part 4: SUMMARY

3. Part 1:
INTRODUCTION

4. In China,
the neighborhood
where you go shopping
says a lot about who
you want to be.

5. For example…
Shanghai Beijing Chongqing
Grand Gateway Xidan University City

6. Choosing districts to shop
helps young consumers
look, learn, and explore
different classes and
cultures, even if they
don’t know exactly what
they’re shopping for.

7. But what about shopping online?

8. This report is about how and why young Chinese women are using e!
commerce and social media to make their shopping choices.
We conducted ethnographic research with 10 young women who are
avid online clothing shoppers in Beijing, Shanghai, and Chongqing.
This report is all about young women and clothes, but the conditions
and drivers behind the behavior have implications well beyond cheap
and cheerful online fast fashion.
Because what we see is that for young consumers in
China, the starting point for shopping is shifting from
advertising, brands, and retailers… to people.

9. Part 2:
ONLINE SHOPPING

10. For young Chinese
women, shopping online
is not a channel choice.
It’s a hobby.

11. Although I seldom go shopping
now, in fact, I am shopping
everyday...
Every morning, the first thing for me is to
open my browser and click the websites in
my favorite shopping folders one by one,
browsing blogs and favorite Taobao shops.
I check if there is anything new, and find
the things that I want to buy.
Online shopping is the happiest
moment for me!
! Guoguo, 26 Beijing

12. ECOMMERCE = NEW LIFE HOBBY
Shopping any time, anywhere
Avid online shoppers don’t just shop for the clothes, they shop
because they love the experience.
I love shopping on Taobao. I use Taobao mobile app on the way to work,
at lunch check the sales at all my favorite shops, and buys loads of gifts for
family as an excuse to shop more. I love the moment of going to work and
seeing my desk covered with parcels.
- Linda, 24, Shanghai

13. What is the
advantage of online
versus offline?

14. MORE
CHOICES

15. ECOMMERCE = MANY NEW CHOICES
Diversity of products unavailable offline
Most young consumers shop online to save money, but increasingly
they go online to find products they cannot get locally, especially
cheap clothes in premium design styles, and branded goods
imported from abroad.
“Up to a quarter of e-commerce demand in China is, in fact, for products
that consumers cannot find in physical stores—a circumstance rather unique
to China, where… the country’s immensity limits the coverage of many
physical retailers.”
- Boston Consulting Group

16. Too many
choices?

17. ECOMMERCE = HARD TO FILTER
Long and unreliable search process
Online shoppers have a serious pain point when it comes to
navigating through the clutter of options, unable to find the right
keywords for products, and overloaded with way too many vendors
offering similar stuff.
“Sometimes I try to search on Taobao, but it’s so hard to figure out the
keywords. Even when I get it, there are so many vendors claiming to sell the
same thing. Usually I just go back to big retailers like Vancl.”
- Faye, 26, Beijing

18. Search woman, coat on Tabao, there Even using brand name as keywords,
are over 800,000 results in 100 pages still there are a lot of shops using the
to view. same product picture.

19. How can young consumers gain the
advantage of the diversity and abundance
of choice online, filtered in an orderly way so
they can browse and explore just like at an
offline shopping destination?

20. Part 3:
ONLINE SHOPPING
NEIGHBORHOODS

21. ONLINE SHOPPING
NEIGHBORHOODS =
Online destinations created by
social media sharing where
consumers can explore a
curated selection of choices.

22. ONLINE SHOPPING
NEIGHBORHOODS

23. TAOBAO HERS.COM RENREN J MEILISHUO
WOW BBS forum SNS! based Social
Retailer! shopping
based network

24. ONLINE SHOPPING NEIGHBORHOODS ARE ALL ABOUT
PHOTOS
Photo content from other consumers creates the
tangible feel of wandering around a neighborhood.
Photos present the place, the people, the lifestyle,
and the choices in vivid context.
Providing an ongoing stream of true- to- life photo
content is the key feature of online neighborhoods.

25. TONS OF
PHOTOS

26. “I spend several hours on Meilishuo browsing every day.
They update all the time, so there is always new stuff.”
“The online shops never have enough photos. I want to
see all the product details, and how they match with
other products, and where the model wears it, and how I
can use it in my life.”

27. REAL LIFE CONTEXT:
Honest and relevant
“I hate those Korean- looking fake
models, I want to see the model in
real situations!”
IDEAS FOR USAGE:
Show the possibilities
“I like when the models
have their own personal
style, you can get great
ideas from their outfits.”

28. ANY SOCIAL MEDIA
CAN BECOME AN ONLINE NEIGHBORHOOD
From official sites to popular SNS, there is always potential
for young consumers to share their shopping choices.
Social media on Social shopping Ecommerce links
ecommerce sites networks on social media
Renren
Taobao WOW Meilishuo
Douban
Guang Taobao Mogujie
Hers.com
VANCL Star Voguemate
55BBS

29. Why do young Chinese
consumers need
Online Shopping
Neighborhoods?

30. Part 4:
KEY FEATURES

31. 1. SOCIAL AUTHENTICITY
THE RIGHT PEOPLE
Exclusive group with clear relevance that
provides true! to! life shopping guidance. Not
anonymous crowdsourcing, establish the social status and
lifestyle shoppers can associate with products and styles.

32. TENSION
STANDING FITTING
OUT IN

33. TENSION
Young consumers want to express their personal style by purchasing unique things,
but they also want to fit in with the right group and learn the ‘right’ way to dress.
Social authenticity means showing users choices curated by a group
of peers whose identity fits with their style agenda, to establish trust
and relatable life context.
LIKE OFFLINE: Learn from others in the context of real daily life occasions
BETTER THAN OFFLINE: Easily close the aspiration distance and follow any
group you like without feeling shy.

34. EXPERIENCE THE AUTHENTIC LIFESTYLE
I used to follow a Hongren called Tokyopanda. She isn’t like other Hongren who
are only showing clothes and products. I think she writes her blog with her whole life
and whole heart. I can see where she travels, what delicious foods she eats, what
interesting small accessories she buys... I enjoy reading her like I am there too.

35. Different networks establish different kinds of social authenticity:
Renren: “I use Renren to see what the normal girls wear, to choose
outfits that are appropriate for the office.”
55BBS: “Those rich youth live abroad, they know lots of foreign
brands and recommend them.”
Douban: “Creative youth who love arts and life, we share the same
interests and the same vintage style.”
VANCL Star: “I check the fit on others who have the same body type
as me to make sure the clothes will fit me too.”

36. The further users are from their aspired
group, the more they rely on social
media to establish social authenticity.
Guoguo has been shopping online for six years, and
considers herself an ecommerce expert.
She follows online celebrities to find budget
alternatives that represent premium style.
“[She] wears a lot of luxury brands,
she has decent taste. I trust her
products reflect the trends and styles
from big brands.”

37. KEY INSIGHT:
Young Chinese women want to be special, but not too special! They
want to explore new choices that express their individuality, and yet ultimately want
to feel like they belong and the choices they are making are right.
KEY IMPLICATION:
Community matters, and make it exclusive! Building customer community
and helping them share lifestyle and product choices can create important social
context for your brand. Just make sure sharing isn’t random: the point is not to help
anybody and everybody get together, but to build the identity of an exclusive and
attractive group that your customers want to join.

38. 2. CULTURAL FILTERING
FOR BETTER BROWSING
Organize products by cultural categories instead
of product categories, connecting selections of products
around styles, outfits, occasions, celebrities, etc.

39. TENSION
SOMETHING SOMETHING
NEW I KNOW

40. TENSION
Young consumers want to try tons of new things, but without strong category
expertise, don’t know exactly what they are looking for, or how to put it all together.
They want cultural inspiration and guidance that connects them with new visions of
themselves, searchable by influences they are familiar with.
Cultural filtering provides a relatable starting point for browsing and
exploring for young consumers based on cultural outcomes.
LIKE OFFLINE: Shop multiple retailers at one accessible destination.
BETTER THAN OFFLINE: Browse by culture across many retailers at once.

41. CULTURAL FILTERING QUOTE:
The vintage style is quite hot recently, I heard everywhere. I log on to Meilishuo to
check the vintage albums, and it s like oh I see, this is vintage and they even have
different categories in vintage style. I can make my own vintage look from here.

42. MEILISHUO:
• By Theme: User! generated ‘magazines’ collected around a wide
variety of themes, such as occasion and popular styles
• By Influencer: Choices searchable by online celebrity ‘hongren’
YOKA:
• By Style: Editors pick out the latest global trends and select
similar items from the mall with links.
• By Outfit: Editors pick out some inspired looks from global
snapshots website, and select similar items from the mall with links.

43. KEY INSIGHT:
Young online shoppers want to browse outcomes, not products! They
are still experimenting with their styles and want visions of potential selves with a
ready! made package of products attached.
KEY IMPLICATION:
Provide vast selection, but organize it around influences relevant
and inspiring to your audience! Know the cultural influences that matter to
your target, and present selection smartly around making inspiration a reality.
Remember, it’s not about values and ideas: young consumers want tangible
lifestyle results.

44. 3. SHARABLE SHOPPING
FOR INFLUENCE ACHIEVEMENT
Enable online shoppers to share their choices and
influence peers to add extra emotional benefits and
experience incentives to shopping online.

45. TENSION
MORE LESS
SHOPPING EMOTIONAL

46. TENSION
Young consumers love shopping online, and want an emotionally! satisfying social
shopping experience.
They want a more thrilling and involved life habit that provides a sense of
accomplishment and belonging.
Sharable shopping makes online shopping a more satisfying hobby
by adding group engagement and influence power to the process.
LIKE OFFLINE: Makes shopping a sharable leisure activity
BETTER THAN OFFLINE: More involvement, more accomplishment, more influence!

47. GROUP BUY FOR STATUS, NOT JUST SAVINGS
I organize group buys, and buy stuff for my friends... They consider me an online
expert, and I love that! They know I recommend the right styles and always have the
best deals.

48. DIYIDATUAN:
• Exclusive buyer membership: Enforces strict filtering of new
entries, including a test! Once admitted, participants have first
access to great deals and limited editions.
MOGUJIE:
• Group Buy Voting: Users can ‘like’ potential group buys, and if
enough users vote, the sale goes on and they get exclusive first
access to the limited item.

49. KEY INSIGHT:
Shopping sharing is about influence, not intimacy! Most online shoppers
don’t care about making close friends in these networks. What they want is group
participation, the opportunity to influence an audience of peers, and a feeling of
exclusivity from being part of a shopping! savvy group.
KEY IMPLICATION:
Purchase is a new touch point for social engagement! Consumers don’t
need you to help them post pictures of themselves, and this is just one form of
social sharing, mostly for aspiring web celebrities. Add value and social status
based on the group buy model with exclusive sales and limited items that reward
participation, and allow participants to pass great choices on to their peers.

50. Part 5:
SUMMARY

51. ONLINE SHOPPING NEIGHBORHOODS are online destinations created by
social media sharing where consumers can explore a curated selection of choices.
ONLINE SHOPPING NEIGHBORHOODS meet the emerging needs of high!
involvement online shoppers in 2 ways:
1. Filtering the right choices that meet their needs and expectations
2. Creating a deluge of photo content and purchase choices to browse and get
steady daily doses of new ideas.

52. WHY DO YOUNG CONSUMERS NEED ONLINE NEIGHBORHOODS?
1. SOCIAL AUTHENTICITY – ESTABLISH THE STATUS ATTACHED TO PRODUCTS
Young Chinese women want to be special, but not too special, and exclusive groups of
content creators establish social context and lifestyle associations for clothes.
2. CULTURAL FILTERING! BROWSE PRODUCTS BY CULTURAL INFLUENCES
Young Chinese women want to shop for desired results, not specific products. Provide vast
selection organized around influences that inspire your audience.
3. SHARABLE SHOPPING – INFLUENCE PEERS FOR ACCOMPLISHMENT SENSE
Young consumers want to influence others, so provide plenty of ways to share purchase
choices among peers.

53. Thanks!
China Youthology
Brand!Youth Connection Consultancy
email: jay.caplan@chinayouthology.com
www.chinayouthology.com
www.openyouthology.com