The U.S. real estate market is well on its way to recovering from the 2008 collapse and in part, has China to thank. In 2015, according to a study from the Asia Society and Rosen Consulting Group, Chinese investors pumped $37.1 billion into American commercial and residential properties. By 2020, that total is projected to reach a staggering $218 billion.
As the population of China’s high net worth individuals continues to grow at rates which exceed the world average, American real estate agents can capitalize on their known propensity to invest in opportunities abroad. Here are some ways that you can be sure potential Chinese investors will keep you in mind when looking for overseas properties.
1. Establish a Presence
Studies have shown that about 45% of Chinese consumers learn about products through social channels, websites or blogs so it’s crucial that you utilize these owned touchpoints to connect with buyers. Customized landing pages featuring well-designed listings give your brand credibility and blogs are great for educating investors about what you’re selling. Social media is now an absolute necessity as it’s ideal for interacting directly with prospects. The key is to make yourself accessible. Because if your exes can’t track you down on the Internet, then your buyers won’t be able to find you either.
2. Know the Influencers
Luxury brands have found great success leveraging the impact that online influencers have on Chinese consumers, not only by utilizing key opinion leaders but also by working with “Micro-Influencers” who enjoy fewer but more devoted enthusiasts. China has the largest population in the world so marketing to its entirety is like casting your net in a giant ocean. Instead try hitting a much smaller pond by targeting the niche audiences of lesser known fan favorites. You should seek out and then build a relationship with a personality that has some established following as well as expertise in applicable areas like real estate, architecture, etc.
3. Be Culturally Sensitive
Though Chinese buyers often purchase American properties sight unseen, they are known for being cautious consumers. To help them feel comfortable, you should be aware of their customs and prepare to answer their questions in appropriate ways. You should also tailor your pitch to ensure it resonates with this audience or, more importantly, that it doesn’t scare them off. For instance, the number 4 is a homonym for the word “death” in Chinese. So you should avoid using this number whenever possible in pricing or marketing materials lest these targets associate your listings with their own demise. Ultimately, educating yourself on the specific needs and spending habits of China’s luxury goods consumers will pay off when it comes time to close long-distance deals.
4. Climb the Firewall
Targeting Chinese investors means working around China’s very strict laws about Internet content and usage. For example, your marketing efforts should avoid incorporating platforms such as YouTube, instead using Chinese video hosting sites like Youku, Qiyi or Tudou. You’ll also want to make sure your site is optimized for Baidu, China’s version of Google. And as for that social media presence we suggested you establish, consider building one on popular networking sites like WeChat or Weibo. Just be sure to keep in mind that half of all Chinese citizens use the Internet, so presenting unique content is imperative to cutting through the clutter. For example, because these consumers have shown to be drawn to narratives about things like love and success, consider incorporating such forms of storytelling to make your listings come to life and draw prospects into your pitches.
5. Embrace Mobile Marketing
China is now home to over 1.3 billion mobile users and nearly everyone in the country owns a cell phone. Therefore it’s no surprise that mobile advertising spends make up over 22% of total ad spends there, a higher level than any other market in the world. When building out your Chinese marketing strategy, be sure to include mobile marketing opportunities that will showcase your available properties to investors on the go.
Given that in 2015, the average price for an American home purchased by Chinese buyers was $831,000, this is a group clearly ready and willing to make large investments in U.S. real estate and one that you should absolutely target with culturally appropriate efforts that will reach potential consumers in China.
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.
With: Alexandra Thielke, Co-Founder of Twentyfive & Thirty
After this year’s installment of Cannes Lions, we had the pleasure to do a 1-on-1 interview with the co-founder of “world-traveling” agency Twentyfive & Thirty, Alexandra Thielke. Haven’t heard of the 2-person creative agency? Check out their feature in AdWeek!
Here’s the scoop:
Was this your first time at Cannes Lions? Would you agree that this festival is the most rewarding annual event creative professionals can attend?
“This was our 3rd time at Cannes Lions. This is definitely an inspiring event to attend for all creative professionals. This event sets the tone of what is trending and what will be the tendencies in the year to come. So many inspiring people are gathered to share and discuss their point of view of the creative industry. We believe that this is one of the most educating events you can possibly attend.”
In 3 words, please describe this year’s festival.
“International. Inspiring. Rosé.”
Major brands like Burger King and John Lewis brought home the Lions Grand Prix. Out of all participating campaigns, which one stood out to you the most?
“The Swedish number – A campaign created for the Swedish Tourist Association, where they made a number anyone in the world can call to ask about Sweden, which will be connected to any random Swede who have signed up to participate and represent their native country.”
“Breast cancer awareness – The Manboobs campaign takes on social media censorship of female breasts by demonstrating how to do a breast self-exam using a man. We just thought it was so well made, clever and hilarious!”
What was the overarching topical theme at this year’s festival? What was the buzz?
“Virtual reality and 360 video was to be found everywhere – It is really taking off! Passion that beats talent, and the collaboration between agencies and clients was a strong topic at this year’s festival as well”
Cannes Lions always attracts a plethora of celebrities. From Will Smith to Martha Stewart. Would you say that any of this year’s keynote speakers managed to capture what branding and creativity means today?
“Absolutely. One of our favorites was Will Smith. Besides his amazing ability to capture his audience and set a relaxed “down to earth” mood, he had some really good points on how to manage a brand and how social media has changed the entire ball game. One of his main points was the change in running a company, and the increased expectancy of full transparency where companies these days are forced to be completely honest and create good wholesome products. If they don’t, their flaws run the risk of being spread across social media in no time.”
What was the most extravagant occurrence during the festival? Any helicopter entrances or outdoor cirque du soleil performances?
“Our most extraordinary experience was delivered by SNASK who made their talk dressed as a rock band. They just look cool and make great work.”
Lastly, what are the thoughts and ideas you will bring back with you to your creative agency?
“We found the subject on collaboration between agency and client very interesting. We had many discussions about this and how relationships need to change to be more honest and close. There were definitely points that support the way we want to – and already work. Especially the thoughts on working “as a team” instead of accepting the traditional client – supplier relationship.”
“The possibilities with Facebook live and 360 video was also very inspiring and is something that we were already looking into before, but now something we will be looking even closer to get involved in. It is clear that advertising is changing from “making ads” to “solving problems”. As creatives, this is something we maintain a strong focus on so it was very inspiring to see and seeing what others are doing gave us tons of inspiration.”
Alexandra Thielke, Co-Founder & Strategic Planner of Twentyfive & Thirty
Twentyfive & Thirty is the world’s smallest global creative agency set out to challenge the way traditional ad agencies work while fulfilling a dream of traveling the world. It is an agency without a fixed address, without fixed work hours but with the flexibility to work whenever they are needed, wherever they want, and with clients from all over the world. This means they often work with their clients without ever meeting them in person.
What a week – full of new reports on ad blocking, digital video and mobile ad spend. But the report that captured my attention a bit extra this week was a study released by Borrell.
The report claims that out of all traditional advertising mediums the Internet is slowly killing off, Out-Of-Home (OOH) has not only manage to survive – it is the only ad vehicle, outside of online advertising, that has shown consistent growth since 2008 and the only one expected to show year-to-year growth over the next 5 years.
Now why is OOH doing so extraordinary compared to print and radio? There is a one word answer to this – Technology.
Technology, digitalization and the explosive development of digital video has turned what used to be flat posters into interactive branded experiences that produces sights, sounds and even smells! Based on the eye-grabbing nature new technology brings to what tend to be dull settings (bus stops), OOH ads are poised to see increasing investments and enlarged budgets.
Have a look at some stunning examples of Out-Of-Home ads here.
$533 million. Sounds like a hefty number right? This was the number recently reported by Videology and White Ops claiming the equivalent of how much money they have saved their clients from wasted digital video ad spend over a year.
The fact remains, this is only a small number of the total digital video ad spend in the US alone. 5.6% – this is the number Videology and White Ops were able to spare advertisers from wasting their ad dollars on.
A valiant feat by the two partners. However, while they are blocking bots from viewing ads, consumers will block ads from being viewed and this will cost advertisers 687% more in lost ad spend.
So in this case, pick your poison..
By: Colin Petrie-Norris, CEO of Xumo
As well-adjusted adults, we may have learned to suppress our self-indulgent tendencies in favor of social etiquette, but that doesn’t mean the inner voice demanding instant gratification is ever truly silenced. I don’t know about you, but my inner voice sounds remarkably like Queen:
“I want it all.
I want it all.
I want it all.
And I want it now!”
The time has come to take these words to heart.
“On-demand” (as it relates to products and services) is something that has characterized the last couple of decades, but the truth is, we—as a consumer culture—have always desired and championed on-demand access to the various things we consume. This is why disruptive tech and business models like Amazon Prime and Uber are so successful. Today’s connected consumers know exactly what they want, when they want it, and where to get it—and successful brands are the ones that are able to deliver on all counts. This intersection of technology and an on-demand culture represents a great shift in how brands win customers. The customer experience is paramount, and convenience is the name of the game—and this attitude is changing the parameters of success across all industries.
The television industry is no exception. Not only do people watch less TV than they used to, cable companies are raising prices in a desperate attempt to offset demand, pushing viewers even further away. Still, TV revenue is expected to grow by five percent until 2017. Why, despite lower viewership, is TV still likely to come out a winner? Because consumers’ appetite for unique engaging content is increasing and digital services are picking up the slack that traditional multichannel video programming distributors (i.e. cable and satellite providers) are leaving behind. In fact, eMarketer estimates that 93.7 percent of millennial Internet users will watch digital video content in 2016, a number that is expected to grow as digital content becomes more relevant and accessible.
In response to this upswing in interest for on-demand content, major players in the publishing sphere are stepping up their digital video presence and increasing production on the kinds of content viewers want to consume. Hugely popular digital brands like Buzzfeed, Vogue, and GQ now have channels that are accessible directly on TVs, with no cable bill required. This content extends beyond movies and traditionally formatted shows, and encompasses everything from news, podcasts, educational videos, and more—all of which can be viewed on connected TVs, on demand, and across devices with seamless viewing experiences.
So what’s making this new way to TV possible? The answer is OTT (over-the-top) services that are surfacing content that more and more people actually want to watch and making it easily accessible all in one go. It’s estimated that 72.1 percent of US Internet users will use OTT video services by 2019 (nearing saturation of the market), indicating a dramatic new direction for television as we know it. Indeed, consumers are no longer bound by (or bundled into paying for) the programs and schedules mandated by cable and satellite providers. Instead, they’re gravitating towards technology that enables them to access the exact types of content they want, when and how they want to view it. This is the reason that cord-cutting attrition more than doubled in 2015, netting pay-TV companies a loss of 385,000 subscribers—and it also explains why Internet-connected TV ownership saw a 14 percent surge between 2014 and 2015.
The Digital Age has granted each of us greater access to information and insights into pretty much everything we could ever want, which provides us with valuable leverage against competing brands; those that can’t give individual consumers more of what they want will lose out to brands that can. The new era of TV is a perfect example. Instead of being stuck watching and paying for content that isn’t relevant, technology is helping to create platforms that are united for the purpose of delivering the best experience for each individual consumer. These collaborative partnerships help both brands and consumers get a step closer to the promise of “I want it now.” It is definitely an exciting time for the empowering Freddie Mercury voice in all of us and it means that instead of resentfully paying for a bunch of programs and services we don’t care about, we can all sit back, relax, and be free to TV any way we want.
Colin Petrie-Norris, CEO of Xumo
As CEO of Xumo, Colin believes that getting content to television needs to be democratized. He has successfully partnered with the world’s largest television manufacturers to revolutionize the way TVs are programmed. With traditional Linear TV viewership declining, he recognized the need to change things up. As a result, he spearheaded an initiative that combined Linear TV with over-the-top (OTT) content creating a viewing experience that put content and the viewer first. Colin has led a team of engineers to create Xumo, an intelligent and intuitive application that seamlessly integrates with Smart TVs, smartphones, tablets and desktops. Colin has also demonstrated expertise in content development by successfully brokering several relationships with Digital Networks, Traditional Media Brands, multi-channel networks and individual Makers to make the most sought after digital content available through Xumo—streamable on any device. His extensive background in establishing and building worldwide advertising networks has afforded him insider knowledge on how to best monetize digital content that is then passed along to each partner. To learn more about Xumo and Colin’s plans for the company, visit www.xumo.com.
Photo Source: Gable Denims
History will now confirm that 2015 truly was the year ad blocking came to stay. It stole the spotlight mid year and numbers were released that had marketers at the edge of their seats. Ad blocking usage had grown 41% in the last 12 months and $10.7 billion in U.S. ad revenue was expected to be lost throughout the year. A staggering 2/3 of Millennials block ads, which is a legitimate concern considering that advertisers spend 500% more of their ad budgets on Millennials than all other generations combined. Piece this together with a significant lack of interest and engagement we can argue that the chunk of campaign spending on display ads is money thrown into the fire.
With Apple embracing ad-blocking software in September, consumers were left with a voracious appetite to utilize it and became far more cognizant of their abilities. At this point the concern amongst marketers led to novel viewpoints that shifted into opportunism and sparked a sense of rethinking. A higher awareness for user experience and an increased affinity for creativity has steamrolled marketers to turn their heads 180 degrees – Content marketing, native and social initiatives are now in full view of marketers’ eyesight. These practices are laying the foundation for a vast market with many niche branches.
Ad blocking is not only contributing to these practices flourishing but has opened up the room for an entirely new sub segment of digital analytics – ad-blocking analytics. A study conducted by Cxense and Editor & Publisher found that only 16.9% of publishers are able to track the ad-blocking activity occurring on their websites. Compounding this information, those using Google Analytics can track the use of AdBlock, but not any other ad-blocking software. This causes a transparency issue for publishers whom are unable to demonstrate if and how many ads are blocked. Now, will we see a wave of ad blocking analytics software breeze in to the market? Numerous digital marketing analytics companies may only be a few steps away from creating an additional solution or add-on that will measure ad-blocking activity.
Let’s also take into account that ad blocking is a global occurrence. With 668 million online users, China is now quickly raising its awareness towards ad blocking. Reports confirm that 10-12% of ads delivered to personal computers are being blocked. In Europe ad blocking is being highly embraced with countries like Sweden and Germany both boasting a +30% ad-blocking rate. Where ad blocking lives, so does the need for ad blocking analytics software, presenting innovators with a worldwide selection of markets to explore.
Publishers also revealed that they are in dire need of consulting, with 52.8% reporting a complete lack of strategy to address ad blocking and 32.6% reporting that they are unaware if a strategy is in place.
Publisher uncertainty and inability is fueling a new development of analytics. Keep eyes and ears open – this new wave of analytics integration, consulting and a plethora of new market activities may just be around the corner.
Photo Source: Hero Images