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Marketing in China involves different challenges than marketing in the western world. We take a look at 8 marketing myths in China and how to overcome them.
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©2010
The Eight Myths of Marketing in ChinaMENG WebinarSeptember 23, 2010
©2010
Speaking: @brandranter
#mengonline
@theduffyagency
©2010
China in perspective:The basics
Official name: The People's Republic of China (PRC)
not to be confused with The Republic of China, a.k.a. Taiwan
Rule: The Communist Party of China (CPC) under a single-party system since 1949
Led by Mao Zedong from1949 until his death in 1976
Capital: Beijing
Divisions: 22 provinces5 autonomous regions4 directly administered municipalities: Beijing, Tianjin, Shanghai, and Chongqing
2 highly autonomous special administrative regions (SARs): Hong Kong and Macau
Population: over 1.3 billion 20% of Earth’s population
China has 56 ethnic groupsThe Han Chinese make up 92% of the population and dominate all culture and politics.
Oldest continuous civilization
Largest standing army
Reforms from Mao began in 1978:
market-based economic reforms
the one-child policy
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China in perspective(BRIC + USA)
Russia USA ChinaBrasil India0
0.03
0.06
0.09
0.12
RUS USA CHI BRA IND
% of Global Landmass 2010
0
0.05
0.1
0.15
0.2
CHI IND USA BRA RUS
% of Global Population 2010
USA0
0.063
0.125
0.188
0.25
CHI BRA RUS IND
% of Global GDP 2010
USA
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Different China’s
Our parents’ China: “Red China”
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Different China’s
Our parents’ China: “Red China”
Our China: “Made in China”
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Different China’s
Our parents’ China: “Red China”
Our China: “Made in China”
Our kids’ China:?????????
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1. Background
8
BBDO Knight The Lowe Group The Duffy Agency
Planner Creative Director / PlannerCreative DirectorCopywriter
1991 200119871983
BOSTON SAN FRANCISCO STOCKHOLM MALMÖ / BOSTON
Sean Duffy – Strategic Planner, The Duffy Agecny
@brandranter
©2010
2. Resume
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3. Areas of interest
Tactics > Messaging > Execution
Helping your brand communicate
with impact, clarity and relevance
Advertising in all media
Websites / assets
SEO strategy & execution
Social media / digital marketing
Sales support material
Trade show material
Training > Systems > Strategy
Helping you achieve your full potential
with strategy, training and research
Brand identity & positioning
Web 2.0 strategies and tactics
Internal training and workshops
Business intelligence
Market research
Online Reputation Management
Check > Adaptation > Production
Preserving impact, clarity and
relevance across all markets
Language check
Cultural check
Copy adaptation
Art/layout adaptation
Local liaison
Local production
REATE
©2010
3. Areas of interest
Tactics > Messaging > Execution
Helping your brand communicate
with impact, clarity and relevance
Advertising in all media
Websites / assets
SEO strategy & execution
Social media / digital marketing
Sales support material
Trade show material
Training > Systems > Strategy
Helping you achieve your full potential
with strategy, training and research
Brand identity & positioning
Web 2.0 strategies and tactics
Internal training and workshops
Business intelligence
Market research
Online Reputation Management
Check > Adaptation > Production
Preserving impact, clarity and
relevance across all markets
Language check
Cultural check
Copy adaptation
Art/layout adaptation
Local liaison
Local production
REATE
©2010
Update thi smap or create a new onw with SJN agecncies and our three locations in a different color
©2010
4. Location, location , location
Offices in Boston and Malmö with representation in Shanghai. EU President of TAAN network:
65 affiliate ad agencies on 6 continentsreaching a market of 3.5 billion peopleAnnual billings of 1.5 billion USD
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Confession
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MYTH #1:Translation
is one of the biggest challenges
of marketing in China
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What can go wrong
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Translator Adaptor Copywriter
‣ Linguistic experts‣ Executional focus‣ Minimum writing skill‣ No advertising skills‣ Grammar and clarity
‣ Linguistic experts‣ Executional focus‣ Good writing skill‣ Some advertising skills‣ Grammar and clarity‣ Preserving clarity, style, sell
‣ Advertising experts‣ Conceptual focus‣ Excellent writing skill‣ Solid advertising skills‣ Creating concept‣ Creating clarity, style, sell
Factual Motivational
(Not suitable for conceptual mass communication) (Suitable for conceptual mass communication)
Conceptual
What’s the difference between translation and adaptation?
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MYTH #2:China is an
emerging nation
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China has been the world’s largest economy for 18 of the past 20 centuries. (Financial Times)
Until 1500, China also had the highest income per capita and was the world’s technological leader. (The Economist)
China's share of world output peaked in 1820 at about one-third of the global total. (OECD)
China’s global economic leadership ended around 1850 when they failed to partake in the industrial revolution. (Mark Elvin)
Past:A look back at the Chinese economy
0
2010
1850
100
2010
1500
1000
500
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Present
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Present:London T5 vs. Beijing T3
Opened:Size: Time:Cost:
February 2008353,020 m2 19 years£4 B
March 2008986,000 m2 4 years£2 B
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Future:The world’s second largest economy
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Future:The world’s second largest economy
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New World Order0 3750000 7500000 11250000 15000000
USA
CHINA
JAPAN
GERMANY
UK
2010
0 18750000 37500000 56250000 75000000
CHINA
USA
INDIA
BRAZIL
MEXICO
2050
GDP
GDP
Source: International Monetary Fund, World Economic Outlook Database of April, 2010
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China has been the world’s largest economy for 18 of the past 20 centuries. (Financial Times)
Until 1500, China also had the highest income per capita and was the world’s technological leader. (The Economist)
China's share of world output peaked in 1820 at about one-third of the global total. (OECD)
China’s global economic leadership ended around 1850 when they failed to partake in the industrial revolution. (Mark Elvin)
Past:A look back at the Chinese economy
0
2010
1850
100
2010
1500
1000
500
©2010
China has been the world’s largest economy for 18 of the past 20 centuries. (Financial Times)
Until 1500, China also had the highest income per capita and was the world’s technological leader. (The Economist)
China's share of world output peaked in 1820 at about one-third of the global total. (OECD)
China’s global economic leadership ended around 1850 when they failed to partake in the industrial revolution. (Mark Elvin)
China’s global economic leadership is restored around 2050.
0
1850
100
2000
1500
1000
500
2050
Past:A look back at the Chinese economy
©2010
Past:A look back at the Chinese economy
China has been the world’s largest economy for 18 of the past 20 centuries. (Financial Times)
Until 1500, China also had the highest income per capita and was the world’s technological leader. (The Economist)
China's share of world output peaked in 1820 at about one-third of the global total. (OECD)
China’s global economic leadership ended around 1850 when they failed to partake in the industrial revolution. (Mark Elvin)
China’s global economic leadership is restored around 2050.
0
1850
100
2000
1500
1000
500
2050
2500
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MYTH #3:Digital marketing
& social media don’t work in China
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Does the web work in China?
Comparatively low internet penetration
0
22.5
45
67.5
90
SwedenUS
China
Internet Penetration
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Does the web work in China?
China has more internet users that the US has people
0
100000000
200000000
300000000
400000000
SwedenUS
China
Internet Users
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Does the web work in China?
200M Chinese have broadband vs
80M Americans
0
100000000
200000000
300000000
400000000
SwedenUS
China
Broadband Dial Up
35%50%
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MYTH #4:China’s web is
just like the rest of the world
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Is China’s web like the rest of the world?
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Who needs Google?
Sina Weibo (Twitter) Youku (YouTube) Kaixin001 (FaceBook)
TaoBao (Ebay) QQ (MSN)Baidu (Google)
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A strategy forCreating a Web Presence in China
Blog
Blog
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MYTH #5:China is becoming
“Westernized”
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Is China is becoming “Westernized”?
Modernization
= Westernization
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Is China is becoming “Westernized”?
China is actually
becoming more Chinese
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It’s actually the West that is becoming Easternized
Is China is becoming “Westernized”?
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MYTH #6:Our strategies and tactics will work in
China
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0
30
60
90
120
PDI IDV MAS UAI LTO
USA China
PDI - Power Distance Index: The degree to which the masses accept unequal distribution of power and are content with it.
IDV - Individualism: The degree to which people expect to look after themselves as opposed to being looked after in a collectivist sense.
MAS - Masculinity: The degree to which male behavior differs from female behavior and traits such as assertiveness and competitiveness are accepted.
UAI - Uncertainty Avoidance Index: The degree to which uncertainty, differing opinions, lack of structure and “coloring outside the lines” is tolerated.
LTO - Long-Term Orientation: Versus short-term orientation, the degree to which the society tends to take a long-term view of issues when deciding.
Hofstede Cultural Equivalence Scale
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0
30
60
90
120
PDI IDV MAS UAI LTO
France China
PDI - Power Distance Index: The degree to which the masses accept unequal distribution of power and are content with it.
IDV - Individualism: The degree to which people expect to look after themselves as opposed to being looked after in a collectivist sense.
MAS - Masculinity: The degree to which male behavior differs from female behavior and traits such as assertiveness and competitiveness are accepted.
UAI - Uncertainty Avoidance Index: The degree to which uncertainty, differing opinions, lack of structure and “coloring outside the lines” is tolerated.
LTO - Long-Term Orientation: Versus short-term orientation, the degree to which the society tends to take a long-term view of issues when deciding.
Hofstede Cultural Equivalence Scale
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Understanding masculinity
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Biotherm
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Clarins
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Understanding the market
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Long-term brand vs short-term sales
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MYTH #7:China’s regional
differences are as great as Europe’s
national differences
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Are regional differences like the EU?
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Are regional differences like the EU?
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MYTH #8:There is no number 8
©2010
Web: www.theduffyagency.com
Blog: www.brandrants.com
Twitter: @brandranter
LinkedIn: Sean Duffy
Facebook: Sean Duffy
email: [email protected]
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