An article based on Emerging Insider’s deep dive into the purchasing habits of China’s affluent population was just featured by Jen King in Jing Daily. It includes data and insights from our CEO about how wealthy Chinese mobile users interact with brands…and why that should matter to marketers.
To read the full story, click here.
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.
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.
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.