Emerging Insider, already the international communications firm for brands and startups around the globe, is scaling the Great Wall to establish a team of agents with expertise in creating culturally appropriate marketing content that resonates with Chinese audiences. That’s right! We’re headed east. Way east. Here is everything you need to know about our exciting new operations in China…
WHAT WE’LL DO: We’ll make your entrance into this huge consumer market simple and painless. You don’t even have to learn Chinese! We’ll handle everything, including the translations, while introducing your offerings through:
From WeChat to Baidu, we understand how to navigate some of the world’s largest social media and eCommerce sites to ensure you’re building relationships with customers ready and willing to spend their hard-earned yuan on your products or services.
WHERE WE’LL BE: Our agents are on the ground in Shanghai, where they have established relationships with media partners and platforms able to serve up your messaging with a distinctly Asian flair sure to connect with Chinese consumers.
WHY THIS MAKES SENSE: Because we love Chinese food. And because with the world’s biggest population, second largest GDP, a rapidly growing middle class and unparalleled affluence, China is the place to be for brands and startups seeking unlimited growth opportunities. We’re ready when you are and happy to put together a plan that will take your intercontinental marketing efforts to the next level.
At Emerging Insider, we have always prided ourselves on providing PR and advertising services to organizations across the B2B and B2C landscapes. Now we’d like to help you take your marketing communications across the Atlantic.
To take advantage of this chance to reach a new audience within the world’s largest growing economy contact firstname.lastname@example.org.
With its rapidly growing middle class and their increasing disposable incomes, it’s easy to understand why your organization should consider advertising in China. But it’s quite difficult for a brand to effectively expand into this market with no knowledge of its unique customs and tastes. Once you’ve established a budget for your marketing yuan and figured out the differences between Renren and Tencent, it’s time to familiarize yourself with the cultural distinctions that could make or break your interactions with Chinese consumers.
1. DO present e-commerce opportunities.
Increased access to smartphones and social media among the country’s burgeoning middle class means the Chinese are now able to buy products online…and that they’re even more glued to their devices than we are. Pricewaterhousecoopers found that 75% of consumers in China shop online weekly, compared with a global average of 21%.
2. DON’T forget about “Singles’ Day.”
This Chinese shopping holiday was supposedly started by university students celebrating their independence by buying themselves presents on November 11th. While American retailers focus on Black Friday or Cyber Monday, Chinese brands know Singles’ Day is their time to cash in, with $20 billion in sales projected for 2016.
3. DO understand the importance of relationships.
Confucius knew his stuff and based on the principles of Confucianism, the Chinese value harmonious relationships. Therefore, they may respond better to marketing messages that place emphasis on family and friendships as opposed to those accentuating individual pride and autonomy.
4. DON’T ignore your new customer feedback.
Chinese consumers rely heavily on product recommendations from online reviews and are very likely to post their own. With over 200 million users, China’s Dianping could give Yelp a run for its money. According to Forbes, about 75% of all online users provide purchase feedback at least once a month, compared to less than 20% in the U.S.
5. DO take advantage of their tastes.
Tmall.com is China’s largest website for authentic branded goods and its shopping patterns indicate that Chinese consumers choose American brands for several reasons including better quality, product safety and lack of domestic availability. In fact, per a report from the Boston Consulting Group, 61% of China’s consumers are willing to pay more for a product made in the U.S. so if you sell it, they will come.
Due to the distinct behaviors of its consumers, entering the Chinese market may at first seem daunting. But by adopting a culturally sensitive approach to marketing, outside brands can capitalize on the opportunity to expand into this lucrative emerging market.
As the Chinese middle and upper classes enjoy increased disposable income, their tastes have grown more expensive. In 2015, luxury good spending in mainland China reached $19.3 billion or about 31% of the global market. But before you rush to get your pricey products listed on Alibaba or Tmall, consider these interesting facts about Chinese buyers willing to shell out more yuan for international indulgences.
1. They’re not just shopping in China.
Many Chinese consumers now buy luxury items in Europe and other parts of Asia, where lower taxes make prices significantly cheaper than in the mainland. In fact, it was estimated that 80% of China’s total luxury spending was made overseas in 2015. Though efforts are being made to slow down the “gray market” that has arisen for international purchases, for now Chinese travelers are as likely to buy expensive items abroad as they are cheap souvenirs.
2. It isn’t about logos.
Chinese consumers have evolved beyond simply loving labels, so brand alone no longer determines a product’s success in this market. A survey conducted by Simon-Kucher & Partners showed that China’s luxury buyers now place the highest value on product quality (74%), style (70%) and comfort (70%) when making fashion purchases, while Bain & Company found that 39% of wealthy Chinese don’t find logos to be a priority. That collective sigh you hear in the distance is from Louis Vuitton’s marketing department.
3. The consumers are younger than you’d think.
The average age of Chinese luxury consumers, at home or abroad, is 33.1 years. And more than 80% of all Chinese luxury consumers are between the ages of 25 and 44. This is a generation of shoppers that has grown up on luxury marketing campaigns and which embraces the concept of “Treat Yo’ Self.” But in China they call it Singles’ Day.
4. The Internet is where you’ll find them.
Chinese consumers are quite likely to research luxury brands on the Internet or apps, and are open to developing a relationship that goes beyond the point of sale with the companies behind them. Albatross Global Solutions found that about 75% of China’s most affluent consumers follow brands online and that almost 90% of them want to be contacted by brands they have purchased. Organizations now take advantage of these stats by allocating about 35% of their marketing budget to digital efforts, and that number is growing.
5. The brand story matters.
According to McKinsey&Company, Chinese consumers are now finding that the allure of luxury products can be driven by a brand’s cultural heritage. For that reason, outside luxury brands have found success in promoting their history and craftsmanship as selling points. But there’s also something to be said for assimilation as one-third of luxury consumers expressed a preference for items that incorporated Chinese imagery or that were designed specifically for China.
Thanks to rising incomes, the availability of products online and more openness towards displaying wealth, Chinese consumers now feel increasingly comfortable investing in luxury items. This presents an incredible opportunity for marketers accustomed to targeting less cost-conscious consumers if they’re willing to take the time to understand the nuances of this growing market.