Andrea Fenn | How the New Rich Changed Luxury Fashion Marketing and the Phenomenon of Live Streaming for Commerce

Today on The Negotiation, Todd speaks with Andrea Fenn, a sinologist and journalist who regularly publishes articles and conducts lectures on China’s fast-paced, ever-evolving digital ecosystem. Andrea is also the founder and CEO at Fireworks, which he refers to as a “post-digital agency”. This is due to his belief that brand growth in today’s digital landscape should go beyond vanity metrics such as likes and followers. Instead, Fireworks focuses on actual conversions.

Andrea sheds light on how luxury fashion marketing has changed dramatically in China when the advent of the “new rich” coincided with the rise of social media and eCommerce solutions. Now that there is less exclusivity in the market and more transparency among buyers, improving one’s sense of style is less about showing off one’s status and more about expressing one’s unique personality.

Much like in other parts of the world, influencer marketing is also on the rise. Todd points out a few outrageous internet personalities who sell millions of dollars worth of product on a daily basis by the sheer power of their personal brands. Andrea replies that “there is a constant need for reassurance; a constant need for establishing trust in Chinese consumers.” He goes on to quote a certain Chinese scholar who said that “the Chinese are suspicious yet gullible.” This attitude, says Andrea, applies to both published news and consumption choices among the Chinese.

There is no “standard marketing protocol” in China. Digital trends are always changing depending on whichever direction the largest eCommerce companies (ex. Alibaba, Tencent, etc.) choose to take. In the West, brands build their audiences from scratch using their unique, individual platforms, Chinese businesses, on the other hand, are beholden to established third-party platforms.