China Day’s five-day May Day ‘Golden Week’ has seen the full use of the revenge money, with home trips predicted to see the 265 million trips made during this period, exceeding 2019 levels. In addition, a few Chinese municipalities such as Shanghai have launched the ‘Double Five Shopping Festival’ with more than 1,900 events and a two-month symbolic partnership with shopping, tourism, and entertainment. Beijing’s consumer season ‘2021’ also saw the government distribute billions of yuan in various coupons to promote offline and online consumer spending. Many large commerce platforms such as Tencent, JD.com, Pinduoduo, and others also support the program with their digital coupons.
Throughout the epidemic, enduring styles have been shaped as no less than 70% of Chinese citizens say they plan to buy online in the future than ever before. Increasing reliance on technology has also raised alarms for Chinese executives, as they begin to flood the world’s largest tech companies with private actions, but also with data collection and deceptive advertising.
Since May 1, China’s top regulators – Cyberspace Administration, Department of Industry and Information Technology, Department of Public Safety, and State Administration for Market Regulation – have made it illegal for apps to collect sensitive personal information such as location or biometric, while the country was targeted. ‘Big Brother’ for decades, the new generation of China knows and is sensitive to data abuse. Keith Yuen, EY shareholder in Greater China Cybersecurity Leader, said Chinese consumers no longer care about the misuse of personal information (PI), and whether consumer PI can be legally and effectively protected has become an important factor in business integrity. ”.
Now having a series of laws and regulations issued by the Chinese government to protect consumers with their rights will put businesses at a disadvantage over how much data they can collect, and filter out any illegal means such as selling information to third parties. Recently, several international brands – Kohler, Max Mara, BMW, and Infiniti – were unveiled by CCTV to gain acceptance for tracking consumer behavior, which led to public scrutiny, with an apology letter outlining innovative and transformative actions. To protect consumer rights, retailers are busy capturing unlimited data – an important product function that you can use to identify their customers. The new rules establish the standards and obligations that businesses must follow in managing personal information and cybersecurity. “Lawmakers are expected to clean up the competitive market, and help law-abiding businesses build consumer confidence and competitive advantages in order to achieve sustainable business growth in China.”, Explains Yuen. The scourge of progress and great success has also been addressed by Chinese market managers through a set of rules to regulate misleading practices and data privacy. A set of new rules for live streaming will take effect on May 25, cracking down on counterfeit products, sleeping on new numbers, announcing pyramid schemes, and any other gambling content.
Platforms are required to hire trained moderators to analyze user and user content and take the necessary steps to protect user personal information. Sharry Wu, Director of Greater China Consulting Business Transformation for EY, says, “Internet performance will need more control and we have seen that businesses are already embroiled in e-commerce in public marketing strategies.” However, Wu believes that consumers and assistants will ultimately maintain and comply with new regulations under a safe and fair, commercial environment where consumer confidence will gradually increase, especially in the health-focused sectors.
The short-term impact of the new government will end cyberbullying – Alibaba BABA -0.5%, Kuuaishou, Bytedance, among many others – as online activities are heavily regulated, preventing any commencement of commercial assets. Therefore, sales volume and strategies can be transferred to offline channels to minimize online changes under the protection of consumer data and privacy.