Alicast From Alizila

Brands are rethinking their marketing tactics in China, as the world’s second-largest retail market matures and customer behavior evolves.Instead of chasing growth through discounting drives, brands are turning to customer membership programs to generate revenue over the long term, according to a new report by consultancy Bain & Co.We sat down with one of the report’s authors, Bain Partner James Yang, to discuss what makes a winning loyalty program.James draws on examples from global marquee brands such as Costco, an American multinational corporation that operates membership-only big-box retail stores, French beauty products retailer Sephora and e-commerce giant Alibaba Group’s 88VIP program to illustrate how brands should design rewards programs.