Mobile Marketing Data for the Affluent in China

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.


Lost in Translation: How NOT to Market in China

If you’re looking to reach China’s massive luxury goods market, you can’t just translate your ads into Chinese. Of course, good translations are very important and can help avoid unfortunate mistakes like that time Pepsi accidentally claimed to bring dead people back to life. But translations alone simply aren’t enough to be successful. The key to an effective communications plan for business opportunities abroad is cultural sensitivity.

China’s consumers have unique feelings about social status, relationships and even leisure activities that necessitate a tailored approach to advertising. If you don’t take the time to understand and then incorporate these tastes into your messaging, you will alienate your audience and eliminate ROI. You will also end up featured as a “Chinese Marketing Fail” on a fine blog like this one. On that note, here are three examples of brands that screwed up launching campaigns in China:

1. eBay

When eBay came to China in 2004, the brand hoped to take customers away from e-retailer Alibaba which at the time was helping small companies run online businesses. In an effort to dominate the market, eBay launched aggressive campaigns, even signing exclusive rights with major web portals that would block their competitors’ ads. It was a savage move that didn’t pay off and the reason they say “know your audience.” Because Alibaba executives recognized that China’s small business people preferred watching TV over surfing the Internet during their downtime. So they invested heavily in television campaigns promoting their new auction site, Taobao. These efforts soon made Taoboa a household name, allowing it to heavily outpace its American counterpart and forcing eBay to wave the white flag in 2006.

2. Home Depot

With home ownership on the rise in China, entering this market seemed like a no-brainer to Home Depot. But six years later, they managed to evict themselves. The company failed on several fronts including a lack of marketing that targeted Chinese women, who often make the final decisions about home décor purchases. Home Depot also greatly overestimated these consumers’ desires to “do it yourself,” a major messaging point in much of the brand’s advertising. Because manual labor is considered the trade of lower-class citizens, this was off-putting to new home buyers. By ignoring these important aspects of local culture, and trying to make middle class Chinese people do their own renovations, Home Depot never effectively connected with this audience.

3. Groupon

Despite spending a whopping $432 million on marketing, Groupon failed in China and it wasn’t because the people there didn’t want to pay deeply discounted prices for concert tickets and hair removal services. They already had successful group-buying sites. Groupon was unable to bite into that business due to a lack of cultural understanding reflected in many aspects of their downfall, from their inability to steal executive talent away from competitors to their difficulty trying to build vendor partnerships. Not only did they scare off prospects during sales pitches by demanding much higher percentages than typical of the market, they also insisted on using mass email campaigns to target business owners because this had worked for them when expanding into Europe. But because Chinese small business owners do not typically read such marketing emails, Groupon’s efforts in China fell flatter than an unstuffed dumpling.

Chinese consumers can differ greatly from those in America. Ultimately, if your organization wants to capitalize on advertising opportunities in China, you’ll make efforts to understand the needs and preferences of its citizens. Because as even some of the biggest U.S. brands like Pepsi have learned, cultural sensitivity can make or break a campaign…especially when you promise to reincarnate your consumers.


Advertising Do’s and Don’ts of Chinese Consumer Culture

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.