Product, place, price, promotion… the original marketing mix needs constant assessment. Yet, China brings added layers of complexity into the mix, due to the vast size, disparate nature, and technologically advanced nature of this huge and exciting market.

Why Audience Segmentation Matters in China

Because China is so vast and varied, Western marketers must work hard to segment their audiences accurately, and then target them carefully.

This means factoring in various demographic factors, including the generation of customers. Generational differences greatly affect the purchasing behaviours of Chinese customers, in the same way they do in the West.

For example, baby boomers love nostalgia, family values and quality, whereas Gen Z buyers focus on unique and personalised experiences, sustainability and brand values that align with personal beliefs.

That’s not to say that the generations don’t align on certain key areas; they do! For example, all Chinese customers want quality, reputable products from excellent brands, regardless of their age!

However, by understanding generational differences, Western marketers can become far smarter about how they think about their Chinese digital marketing campaigns to meet the specific needs of generational groups.

Generational Differences and Chinese Digital Marketing

Each generation and age group in China has its own values, priorities, spending habits and preferred marketing channels, particularly when it comes to digital engagement.

For marketers, this means carefully tailoring campaigns to reach each generation in the way that will resonate with them.

For example, older generations may prefer a focus on quality, heritage and value, rather than passing trends.

Gen Z may prefer unique experiences and online platforms, over traditional marketing approaches.

What to Know about Each Chinese Generation

Here are some of the main things to consider about the different generations and their needs, before planning your marketing strategy in China:

Chinese Baby Boomers (up to mid-1960s)

Baby Boomers value tradition and family, prefer established brands, and may require more straightforward messaging.

They love quality, established brands, craftsmanship ship and heritage. In terms of interests, they enjoy self-improvement in retirement, health and comfort, and are less interested in social media trends.

In terms of spending power, baby boomers have significant leverage, particularly when it comes to discretionary spending. They like to buy luxury items as a reward.

For baby boomers, Western marketers can consider targeting this market with a portfolio of products, and using more traditional Chinese digital marketing channels such as email, newsletters, websites and carefully chosen social media channels, with content delivered simply and without gimmicks.

Gen X (mid-1960s to early 1980s)

Gen X in China shares many characteristics with Gen X customers in the West. They are practical, love value and quality (often translating to luxury products), and they aren’t necessarily won over by digital tactics alone. For example, they also still enjoy physical stores.

For marketers, it’s worth tailoring a Chinese digital marketing strategy to include more ‘traditional’ methods such as PR and physical events, where appropriate. For high-involvement products (education and training, premium skincare, automobiles and jewellery for example), other forms of marketing, such as print, are also still be relevant.

Chinese Millennials (early 1980s to mid-1990s)

Chinese Millennials are very active online and respond highly to social media. They are focused on achieving a healthy work-life balance and love shopping online. Chinese millennials also value high-quality, luxury products and experiences and place a premium on brand recognition.

This generation greatly values influencer marketing, and personalised, unique experiences they can share online. They love apps and technology, and are interested in sustainability, ethics and the value propositions of brands.

Bear in mind that millennials may not be particularly loyal to brands, so work harder with engagement strategies such as loyalty schemes, private online communities, rewards and so forth.

Gen Z (Born after 1996)

Gen Z customers are true digital natives and they love personalised, exciting and authentic online experiences. They love interactive content, value sustainability and want brands that support their own values and beliefs.

As with older Chinese customers, younger Chinese customers trust recommendations from their own network. Gen Z also trust influencers, and KOL marketing can be extremely effective for this group. They also love fun experiences such as pop-up events, gamification, live streaming and anything that offers a sense of community.

What does this mean for Chinese Digital Marketing strategies

As Generation Alpha (more on these to come!) says – flex! Western marketers must tailor and adjust their Chinese digital marketing strategies to meet the needs of each generation of customers.

This needn’t be as daunting as it sounds, as there are crossovers in any omnichannel marketing strategy. For example, customers of all ages want slick, carefully optimised websites that work perfectly and look great. Similarly, all customers want to shop with brands who offer great customer service and quality products, at the right price. The original marketing mix still applies!

Beyond this however, these are important factors to consider for your multi-generational Chinese marketing strategies:

Research first and do it well

Good research is always time and money well spent, particularly for audience segmentation and targeting. For example, in China, other demographics such as city tiers and disposable affect target markets as well as customer age. The right research can help you pin down accurate customer groupings for your products.

Tailored research also allows you to create customer personas. These are highly valuable, intuitive models that make it so much easier to target your marketing messages and tactics.

Consider Omnichannel Marketing

It’s sensible to consider a broad range of marketing channels and select those which will work best for your target audience. This doesn’t mean doing everything, but it does mean offering several options, where appropriate, to groups that value them (for example, Baby Boomers and Gen X customers.)

Consider too, all the ways to reach Chinese customers. Yes, Gen Z loves social media, but your results will be amplified if you are also thinking about Baidu PPC marketing, SEO, ePR, website optimisation and KOL relationships.

Get the Basics Right

Invest time in creating an excellent, smartphone friendly, optimised and locally-hosted Chinese website for your products. (Yes, you can also create apps and Mini Program versions, but start with your main site.)

Clarify your messaging, ensure your customer service function is excellent (ChatBots can be useful) and check the basics are in place before you begin to branch out. Remember that Chinese customers of all generations love to refer and share brand experiences to their network. Work hard to gain trust and loyalty!

Measure!

The beauty of Chinese digital marketing is that China’s technologies are so incredibly sophisticated. For marketers, this means that campaigns can be constantly adjusted and optimized for better results, without any need to wait.

With the right Chinese language skills and digital marketing know-how, vital metrics are always available. It’s important to leverage these metrics to keep improving your results.

Use a Chinese Digital Marketing Agency

An experienced Chinese digital marketing agency can be a huge asset for your Western brand. At Market Me China, we offer the services of highly-skilled Chinese digital marketing professionals with native language skills.

We are here to amplify your results and make everything easier; from managing Baidu PPC campaigns (which are run in Chinese), to negotiating the right KOL relationships for your brand.

Contact us to find out how we can help you maximise your ROI for even better results in China!

The post How do generational differences affect Chinese marketing strategies? appeared first on Market Me China®.

Successful Chinese digital marketing requires deeply understanding the unique characteristics of each Chinese generation, and knowing how to adjust the marketing mix accordingly.

Furthermore, although Western and Chinese customers share certain characteristics by generation, it’s important to avoid making assumptions about where these groups converge – and diverge.

With this in mind, let’s take a look at Chinese Generation X, and ask, what do they want from brands they choose to shop with?

Characteristics of Chinese Generation X

Generation X comprises people born from 1965 to 1979. This generation shares many of the following characteristics:

Respect For Material Wealth

Chinese Generation X customers are characterised by a combination of material wealth and a cautious approach to spending.

Having come of age during China’s economic boom period, they are usually well-established in their career path and earning well.

Savvy Spenders

Chinese Generation X customers are known for being financially prudent and smart decision-makers when it comes to spending.

They are naturally conservative with money but will choose products that offer quality; so much so, that they will usually pay a premium for high-end, or luxury items, that represent that this intrinsic value.

Premium Product Seekers

Generation X customers in China love to buy status symbols that are also inherently reliable, such as luxury goods, premium dining and travel, luxury skincare, and quality cars.

They like to display their economic position (and financial stability) in life, and prefer to buy ‘quality over quantity.’

Fans of Luxury and Authentic brands

Chinese Gen X customers like brands that are reputable, designed to last, and have a premium aspect to their offer. If they can discreetly show off their social cachet, then all the better. They also appreciate authentic brands with a heritage aspect.

But They Are NOT in the Market For…

Brands and products that appeal far less to this generation include fast-fashion, deep discounting brands, and high-turnover, disposable items.

The value of Chinese Market research

So what does this mean for Western marketers? As with domestic marketing campaigns, the key to success lies in understanding what makes this generation tick and factoring these themes into market research, target market analysis, and customer segmentation efforts.

A target persona for a Chinese Generation X customer can be effectively guided by understanding the generational characteristics above, and then further refined by factoring in other influences, such as geography (city tier for example), specific demographics, preferences, and so forth.

Market research is of prime importance to successful Chinese digital marketing, especially when this market is so vast and incredibly diverse. Western brands that invest in quality market research typically enjoy better results, as they are primed to effectively reach their target audience at the start of every campaign.

How Western Marketers Can Appeal to Chinese Gen X Customers

These approaches and considerations will all help you position your Western brand effectively for Chinese Gen X customers.

Focus on quality attributes for better Chinese digital marketing

If your brand has a quality ethos with values such as durability, prestige and heritage, you will be a in good position to appeal to the values of this generation of savvy spenders.

Offer rewards for brand loyalty

Chinese Gen X customers like to be loyal to brands that consistently deliver quality products, and which have excellent reputations. So build this relationship by offering brand loyalty benefits.

This could be in the form of gifts, targeted promotions and thoughtful extras (beautiful and complimentary gift packaging, printed for Chinese special holidays, for example.)

If your Western brand has a physical retail presence, invite your Gen X customers in for a special event, to recognise and appreciate their loyalty and invest in the relationship with a personal touch.

Provide In-Depth Information

Because Chinese Gen X customers love to do thorough research before they choose a product, brands can show respect for their preferences by providing plenty of information in different formats.

For example, have an in-depth FAQ, host explainer videos, offer a downloadable brochure, and create an immersive and exploratory app (for involved purchases such as luxury holidays, cars and skincare).

Remember to provide an excellent customer service team, who are ready to answer queries and provide guidance.

Focus on What Matters

Remember that this generation prioritises quality, durability and functionality, and focus on these attributes. Gen X customers are less interested in novelties, trends and fads.

With this in mind, choose your KOLs carefully too, to reflect the values and preferences of this group.

Be Transparent

Chinese Gen X customers also want to choose brands that are authentic and transparent about their business models, sustainability and ingredients. This generation has questions and likes to have them answered!

So again, anticipate these needs and provide open, validated and useful information about what goes into the products, from technology to ingredients, and explain your business model as well as your approaches to sustainable, ethical business.

(Arguably, this generation is less intrinsically motivated by sustainability as it grew up before environmentalism was as high-profile as today, but Gen X customers are now also keen to choose brands which have quality approaches across every aspect of their business model, including ethics and sustainability.)

An interesting point; if your brand can show a unique commitment to relevant social projects, corporate responsibility, research and development or other ‘value add’ purposes that go beyond consumer economics, all the better. This shows your commitment, authenticity and intrinsic quality as a brand, and it will appeal to Gen X customers.

Provide Quality Chinese Digital Marketing Experiences

Chinese Gen X customers didn’t grow up with the internet, but they have rapidly adapted to its use. Western brands that offer high-quality digital experiences will find a ready audience in this generation.

Again, think carefully about the quality attributes of your digital offer. Gimmicks and fads are less likely to appeal to this audience, but slick customers journeys, excellent payment processing integration, and superb content marketing really will.

Really invest in an optimised and integrated digital hub with slick user journeys, careful messaging, fast loading times and quality features.

Invest in Expert Help

Chinese Gen X customers are a fascinating audience and they can be incredibly rewarding for brands who offer quality-driven, reliable and authentically valuable products.

A Chinese digital marketing agency can help you to really understand the unique characteristics of this generation, and create effective digital marketing campaigns that build brand awareness, engage and convert.

Our team of native language speakers and Chinese digital marketing professionals works with Western brands to help their budgets go further and to create a sustainable, rewarding presence in the Chinese market for better ROI.

We evidence our results and we work on a flexible partnership basis according to our clients needs.

Contact Us

Interested? Please contact us to find out more, and discover how the right Chinese digital marketing agency partner can amplify your results in this exciting, lucrative and rapidly-growing market!

The post What do Chinese Gen X Customers Want? appeared first on Market Me China®.

In fact, there are over 400 million millennials in China – currently aged between 28-43, representing a huge opportunity for Western brands!

However, although Chinese millennials share the same age band as their Western counterparts, their marketing demographics can differ. In this article, we’ll cover some of the key things you should know.

Characteristics of Chinese Millennials

Of course, it’s almost impossible to categorise any audience of more than 400 million people! But these characteristics are key:

• Chinese millennials have very different socio-economic backgrounds, but they are invariably tech-savvy and highly educated.
• This generation has transformed consumerism in China by demanding personal expression and customisation.
• They are highly connected, notably diverse and invested in self-expression and personal experiences.
• Chinese millennials are also very concerned about sustainability, environmentalism and social responsibility.
• Their consumer preferences are diverse, as are their regional differences.
• Although this generation loves unique self-expression, Chinese millennials still value traditional cultural values including respect and the importance of family.

The Economic Power of Chinese Millennials

Chinese millennials are a huge consumer base and they have real spending power. They are prepared to be loyal to brands that meet their needs and pay more for high-quality products and services.

It’s interesting to note that Chinese millennials will often show great loyalty to high-end (particularly luxury sector) brands, once they have established a connection with them.

Chinese Millennials and Technology

This generation helped to make social e-commerce successful in China. The famous Alibaba Singles Day annual event has been driven by millennials, who have helped the platform achieve successively record-breaking sales figures each year.

This generation loves their smartphones, far more than Gen X customers. Millennials need to feel constantly connected and informed, with information at their fingertips in just a few clicks.

Having grown up with technology on tap, they use it to do everything, from shopping and life administration to socialising, dating and ordering food, cabs and services.

Chinese Millennials and Self-expression

This generation was the first in China to prioritise self-expression and personal experiences when it comes to shopping. They are less interested in traditional advertising and look for highly targeted, unique and exciting experiences that are meaningful to them. For brands that can get this right, millennials will spend more.

Another key value for this generation is ‘authenticity’ and they choose brands that support their beliefs and values. They choose brands with strong corporate values; particularly of sustainability, environmentalism and social responsibility.

This generation votes with its spending, and millennials expect brands to hold themselves to a high standard. It’s useful to know, for example, that Nielsen found that 75% of young consumers in China rank corporate sustainability strategies above brand names when it comes to loyalty.

Chinese Millennials and Exclusivity

These younger consumers crave exclusivity, which means they prefer brands that offer customised or limited-edition products and services. They also love luxury goods and services and will pay more for them.

Luxury travel is a great example here. Chinese millennials love international travel and want experiences that are very niche. If they can share these beautifully on social media, all the better!

Chinese Millennials and Wellness

This generation is also the first to prioritise a balanced lifestyle; mirroring a global trend amongst younger workers. They invest in self-care and wellbeing practices such as mindfulness and yoga and look for personal growth opportunities in courses, workshops and therapy.

This extends into mindful consumption, and the desire to buy products that align with their values, such as vegan or organic food, and sustainable beauty with recyclable packaging.

What this Means for Western Marketers

1. Deeply understand your audience

Understand that millennials seek to be seen, heard and deeply understood. They expect an emotional connection with the brands they choose to shop with. Market research and user persona development are well worth the investment for your brand.

2. Show your values

Demonstrate your corporate values, focusing on sustainability practices and social responsibility. You must demonstrate that your business is ethical, because – unlike the Boomer generation – Millennials will not be loyal to a brand simply out of habit.

3. Personalise your Chinese digital marketing

Successful digital marketing in China will rely on personalised storytelling, localised content, nuanced marketing and unique campaigns. Take care to regionalise your marketing and advertising too, as this level of detail will show respect, understanding and sophistication; something that this group values.

4. Consider limited editions

Consider limited edition product releases, targeted ‘special’ products and options for personalisation. Experiences are also key.

For example, some traditional jewellery brands now run bespoke jewellery-making workshops to engage with this audience. Burberry also collaborated with WeChat to let customers personalise its range of luxury trench coats with monograms and emojis.

5. Understand where differences exist

Although Chinese Millennials share broad characteristics and preferences, it’s important to understand where there are differences. For example, customers in Beijing, Shanghai and other first-tier cities love high-status luxury fashion, but in second and third-tier cities they may place a higher value on affordability and practicality.

This doesn’t mean luxury goods brands should only market in first-tier cities, but they might offer instalment payments, for example.

6. Focus on digital marketing channels

90% of young Chinese customers are active on social media daily. But it’s insufficient to simply have a brand presence; brands must also engage with followers, create relevant and valuable content, and be active in delivering those meaningful experiences. KOL relationships can greatly help with this.

7. Invest in research

Chinese millennials are evolving, like all generations, and they love new trends. For example, sneaker culture is now a big trend in China, driven by Douyin and other Chinese social media sites. Brands that stay ahead of the research curve are always better prepared to meet this generation’s needs!

8. Work with a Chinese digital marketing agency

Working with a Chinese digital marketing agency can help you to navigate some of the complexities of successfully marketing to the millennial audience in China. Market Me China offers flexible and expert support when you need it most.

Our team of highly skilled and native-speaking digital marketing professionals works with Western brands across all industries, helping them to achieve measurable results in the China market. To find out more, and for a chat about your needs, please contact us!

The post Key things to know about Chinese millennials appeared first on Market Me China®.

1. The average Chinese millennial has no student debt and is already making $22,000 a year (as of 2021). 70% also own their own home.
2. This group has only known economic boom years in China, developing consumerist skills and aspirations to match! Around 70% list shopping as their favourite leisure activity.
3. Over 90% own a smartphone and most rely on digital services to shop, share, network and amuse themselves.
4. They are cashless and not prepared to queue – during Singles Day in 2017, Alipay handled 1.48 billion payments, of which 90% were made by phone.
5. They’re all about luxury goods and personalised experiences. This group are already driving 58% of luxury goods purchases (bearing in mind that the Chinese market overall is expected to represent 40% of global luxury goods sales by next year), and heading overseas to study at tripling volumes – particularly to the UK for Masters’ degrees, the US/Canada and Australia.

Where customisation comes into the mix

For this energetic, high-achieving generation, the pressure is on to look and be successful. As the first generation to grow up amongst material wealth within a boom culture, Chinese millennials are expected to build strong careers, buy their first home and be married by the time they are 30 – and luxury goods, overseas study and international travel are all ways that they can demonstrate their success and achievement.

Customisation is a key element here as this generation also wants to show its discernment, taste and comfort with top-of-the-range international products and services, such as fashion, electronics, experiences and higher degrees. Millennial customers love to display their nuanced and individualised sophistication, and smart brands are working hard to meet this demand with advanced personalisation techniques.

Customisation – whether that’s in the form of footwear or handbag designs or a bespoke travel experience – creates unique items that deliver a sense of cachet to this audience, and allows Chinese Millennial shoppers to express themselves in an individual way; something that is highly important to them, particularly in the age of social media.

This approach makes sense to brands too, especially in markets where there are ready global competitors offering similar products at similar price points. Young Chinese customers love heritage luxury and exciting breakthrough brands in equal measure – ‘me too’ brands just don’t cut it in the same way, so customisation offers that chance to create something meaningful and unique – not to mention something infinitely sharable online with friends and family, to display that sense of taste and success.

It’s interesting to see how the market is changing. Chinese luxury customers once loved loud branding and overt logos, but now they are moving beyond traditional designer brands. Research suggests for example that 86% of millionaires in China actively seek out customisation when buying luxury experiences and goods. Other studies suggest that the majority of millennial shoppers and high-net-work customers in China are now seeking out unique goods from niche and boutique labels, rather than big-name brands.

Case studies

Fendi offers online customisation options for made-to-order handbags with a choice of logo styles, colour options and hardware. Every bag is individually created for each customer, to offer a sense of unique luxury. Gucci has offered similar services with their online DIY collection, allowing customers to choose their fabric, embroidery and patches for certain products. However, the Gucci creative director has to sign off the finished request before it is made – further leveraging that sense of power, success and exclusivity. After all, how many customers can say they collaborated with a designer brand’s creative lead to produce their piece?

What this means for Western brands

If you can offer a degree of customisation, you have a far better chance of being relevant, enticing and on-trend in the Chinese millennial category. And there are various ways that you can give these discerning – and affluent young customers the personalised experiences and individuality they crave, recognising too that brand engagement at this stage can translate into long-term custom.

Strategies to consider:

1. Offer customisation options

Offer options for personalisation to some degree with your products and services. This could be in the form of physical attributes or the nature of the service with ‘pick and mix’ options. An example could be entirely customised travel itineraries or a designer makeup product in custom packaging and colours.

The key is to have a beautifully slick digital offering that enables this service and is perfectly optimised for experience, enjoyment and ‘single click’ fulfilment.

2. Limit the customisation offer by time

Upgrade the value of the customisation by making it scarce. For example, Burberry launched their DK88 bag with 18 options for customisation – but for only a very short period. Fans raced to get their hands on one before the limited service came to a close.

3. Consider the experience angle

Chinese consumers are spending more on experiences and lifestyle services, so many brands are factoring this in, especially with any offline/in-store presence. Again, Burberry offered a customised fragrance within their bespoke range, but only within a very small number of physical stores to enhance the collaborative, exciting interaction between brand and customer.

4. Limit the customisation offer by geography

Consider only offering customisation in certain markets. Some brands are testing marketing strategies whereby they don’t actually offer a certain customisation option in Mainland China, but in other select markets – knowing that this will entice interest from affluent Chinese Millennials to seek out the item abroad.

By combining a purchase with a travel experience, the customers experience a far greater degree of meaning and satisfaction, and they can share their travel experience with friends and contacts, again demonstrating their success, sophistication and ease of navigating the modern world. This can be an interesting strategy to consider after thorough research and analysis into your particular market, business plan and operating model, and Market Me China can support you with the necessary strategic development.

Get the help you need

For Western brands considering their options for customisation, the starting point is to really understand this market and to carefully pinpoint the right target audience within it. With the right market research and data, a sound and successful strategy can be created that offers sophisticated and highly engaging customisation options to these modern young consumers – whilst maintaining that high degree of luxury. With this kind of strategy, brands can enjoy high margins and build a powerful brand in the China market.

The route to success can be greatly aided with the help of an expert and experienced Chinese digital marketing agency. Market Me China offers a full spectrum of Chinese digital marketing services delivered by highly skilled native Chinese speakers with targeted expertise in their field. We work with clients from all across all industries to help them achieve the success that they need in this exciting, affluent and rapidly growing economy, and naturally, we are proud to evidence our results. Please contact us in the first instance for a no-obligation chat about your needs.

The post Why customisation matters to Chinese millennials appeared first on Market Me China®.

What is the Chinese city tier system?

China has around 600 cities that are split into different tiers. These tiers were primarily driven by the financial sector to offer guidance to overseas investors by explaining a city’s financial and economic performance (measured via GDP), its infrastructure and location convenience for trade and city.

For example, China’s coastal megacities are home to international airports, vast trading ports and global businesses. These tier 1 cities also have populations of 15 million people or more. Tier 2 cities have between 3-15 million citizens and tier 3 cities have 150,000 to 3 million citizens. In total, the government recognises a categorisation system of nearly 20 tiers.

It’s important to know that the Chinese tier system is constantly updating to reflect changing needs and methods of measurement. Different industries may have their own classification systems too. For example, real estate markets sometimes refer to tier 1.5 cities. Others rank cities by broader factors that include citizen vitality, flexibility for the future and lifestyle diversity. More recently, some assessments have considered ranking factors such as the number of Starbucks in a particular city, to assess the penetration of Western brands.

How does the Chinese tier system help marketers?

China is a vast, fragmented and complex market filled with regional variations that impact marketing strategies. The tier system can help marketers to begin their market segmentation as part of their targeting strategies. It is an intuitive and usable way for marketers to get a high-level view of China’s myriad markets, as a preliminary means of secondary market research, before commissioning more detailed primary market research.

Why lower-tier cities matter

Increasingly, lower-tier cities are important because of their first growth and potential. Until now, any brands have focused their attention and budgets on tier 1 megacities and tier 2 cities, both of which are vast, economically-successful, mature markets. Bear in mind, for example, that the population of Shanghai is equivalent to the population of Australia, and its GDP of US$469 billion is equal to the GDP of the Philippines.

But lower-tier cities offer all of the advantages of a fast-growth, less mature market. Brands have an opportunity to build their presence in a market without stiff incumbent competition, within markets filled with young people whose incomes are growing – and whose desire for Western, luxury and high-quality goods is high. Consumers in lower-tier cities are rapidly accessing the same technologies, opportunities, earning power and sophistication as Chinese consumers in higher-tier cities, and they are keen to discover Western brands that resonate with their values, wants and desires. Those lower-tier and emerging cities may have been largely overlooked until now, but in the coming years, they will contain increasingly large proportions of affluent middle-class customers. In fact, Morgan Stanley has estimated that lower-tier cities are expected to have a collective consumer spending power of US$6.9 trillion by 2030!

How the tier system influences marketing

Western marketers will need to adjust their marketing strategies for the city tiers that they operate in. For example, a luxury beauty brand will already have a sophisticated, informed and highly-connected audience in a Tier 1 city, where consumers are already switched on to buying cutting-edge international brands. But in a lower-tier city, that brand might need to make greater efforts to inform consumers about its products, with explainers, tutorials and positioning.

A case study: Tuborg beers

Danish brewing firm, Tuborg, originally entered Tier 1 cities, following the market strategy of its parent firm, Carlsberg. However, these tier 1 markets were already saturated with competitors and the brand struggled to gain a foothold. Instead, it pivoted and relaunched its products in Tier 2 and 3 cities. This allowed it to become an early player in less competitive markets. In these cities, Tuborg partnered with cultural, music, arts and entertainment festivals, galas, showcases and events to build awareness and engagement, and to become synonymous with growing youth and consumer culture. This proved to be a successful strategy.

Why primary research still matters

It’s important to note however that the tier system should only be used as initial guidance for market positioning and targeting. China really is a hugely complex and varied country and local cultures are unique. For example, for food, drink and hospitality brands, marketers will find that taste preferences vary between cities, even where they fall within the same tier. It’s also vital to assess factors such as socioeconomic trends, cultural preferences, international trend exposure, geography and other factors before considering your marketing strategy.

How Western brands can find success in lower-tier Chinese cities

The first step is to recognise that China’s vast market includes huge numbers of lower-tier cities; all of which represent a lesser tapped potential for your brand to gain a foothold and grow. You may decide, through research, that tier 4 cities represent a fantastic opportunity for growth over time, recognising the increasing affluence and sophistication of local target markets. It’s vital to carry out additional research as part of your marketing strategy, to use the tier system as a quick indicator and then to drill down to your ideal markets based on your brand, product or service. A Chinese marketing agency such as Market Me China can assist you with this research, and then the development of your ongoing marketing strategy.

For example, your choice of lower-tier city will influence the social media platforms and influencers that you choose (depending on what your target audience in that particular city is using), it will influence your e-commerce strategy (including factors such as logistics and fulfilment), and affect your Chinese SEO, online advertising like Baidu PPC, content strategy, digital presence and so forth.

By investing adequately in your insight and research, you can position your Western brand perfectly to enjoy success in China’s exciting, fast-growth lower-tier cities, and gain that vital early advantage that allows you to grow with your market and enjoy a profitable future in this fascinating, fast-growth and lucrative market.

Find out more

Keen to find out more? Market Me China works with Western brands across all industries to help them achieve marketing success in China. Contact our friendly and professional team of digital marketing experts and native Chinese speakers today, for a no-obligation chat about your needs.

The post Why do lower-tier cities matter in Chinese marketing? appeared first on Market Me China®.

Yes, this audience can be demanding, but the potential rewards for successful Western brands are huge, especially as China’s younger consumers cement their position as truly global citizens, with money to spend! So what are some of the key things that Western marketers should know when trying to understand what Chinese Millennial and Gen Z customers want from brands?

Luxury brands

Research by Bain & Co has found that China’s younger markets are expected to consume 45% of the global luxury product market by 2025. Dealmoon, the luxury online Chinese-American retailer, has found that Chinese millennial and Gen Z customers love high-ticket brands such as Hermès, Gucci and Balenciaga, as well as edgier high street brands such as Converse and Zara. Trainers are a hot category but handbags remain the most coveted status symbol, with the classic Chanel quilted leather always being eminently covetable.

This cohort of buyers demonstrates a tendency to impulse shop, wield significant buying power, and be extremely empowered and confident in their consumer choices. When it comes to luxury markets, they love big names, big celebrities and big campaigns – but increasingly they also want to discover interesting and unique brands that are highly relevant to their lifestyles. Gen Z and Millennial buyers also want to show off their luxury purchases, to display their style credentials and affluence. They do this on social media, sharing posed content that incorporates their brand choices, and which gives marketers a fantastic chance to engage, share and make their customers into micro-influencers.

Digital-first

Western brands will find that younger Chinese buyers move seamlessly across a far more complex and technically advanced digital ecosystem than their Western counterparts. This means getting to grips with a far greater array of Chinese social media platforms, AI and VR technologies, live streaming, live gaming, shopping events, Chinese payment platforms, mobile-first optimisation… and more! A Chinese digital marketing agency can make this process far easier, and organise everything from Chinese website hosting and translating through to Chinese user journey optimisation and targeted content creation.

Micro-influencers

This audience is highly mobile and digital and they are increasingly turning to micro-influencers (Key Opinion Consumers, KOCs) who they see as being more authentic. High-profile and celebrity influencers are still valued in the social media world but many trend analysts expect to see Chinese purchasing decisions migrating further and further towards online micro-communities.

Micro-influencers offer exciting benefits to Western brands. Firstly, they are extremely good at developing deep levels of engagement with their followers, who value them greatly – in a way not seen comparably in the West. Micro-influencers also have a far greater degree of product and service knowledge and really understand the brands that they represent. They are also far more cost-effective for brands than large celebrity KOLs, and evidence suggests that they can deliver genuine gains in terms of shifting products. When Dealmoon launched a luxury handbag that didn’t sell, they kickstarted the campaign again using micro-influencers and sold the entire range within a day.

Price consciousness

China’s younger shoppers have money to spend, but they are very price-savvy and understand the value of what they buy. T/his means that they want the best deals at all costs, and they also value ‘tokens of appreciation such as gifts with purchases. They also want to feel valued and rewarded for their custom and they greatly value things such as pre-launch sales and exclusive previews to recognise their loyalty. Brands can avoid the temptation to discount by offering these added-value symbols. Tactics such as thank you notes, digital stickers and wallpapers, free gift wrapping, free trial sizes, shareables and invites to product launches can be very worthwhile.

Values

The younger generation of Chinese customers is also uniquely demanding regarding the brands they choose and the products and services they buy. They want to feel that they really resonate with a brand’s values, energy, passion and true meaning. This means that storytelling is more important than ever, and in a country where digital experiences are ubiquitous, these stories must have the finest production qualities, the best creative concepts and respectful, careful localisation to avoid accidentally causing offence or misinterpretation.

Brands must be clear on the values that they embody and the ways in which they communicate them. Values should be authentic, respectful of Chinese culture (any content criticising the Chinese government, for example, is likely to see a Western brand’s online presence taken offline entirely in China), and tailored to these switched-on, sophisticated and intelligent young buyers. And never miss a Chinese shopping festival if you’re serious about sales!

It’s also interesting to note that Chinese Millennial and Gen Z buyers are becoming particularly passionate about sustainability, environmental issues, veganism and natural or ‘clean’ beauty. These are all attributes that Western brands can consider when developing and marketing their Chinese products and services, to differentiate and engage their target audience.

Find out more

Most Western brands who are seeking to succeed in the Chinese market will first commission tailored market research to truly understand their target audience within the Chinese Millennial and Gen-Z markets – which are huge! This research is a valuable starting point upon which careful digital marketing strategies can be developed and deployed, using omnichannel marketing and exciting, culturally-aware campaigns delivered via optimised Chinese branded digital ecosystems.

To find out more, and to benefit from the partnership of an expert Chinese digital marketing agency with native Chinese language skills and a proven track record, please contact Market Me China today.

The post What do Chinese millennial and Gen Z customers want from brands? appeared first on Market Me China®.

For all too long, marketing has focused on customer satisfaction as the end goal. But ‘satisfaction’ should be the basic goal. By delighting a customer, you have the opportunity to create far richer engagement, greater conversions and a higher degree of loyalty.

But although ‘how do we delight Chinese customers?’ is the right question to ask, it’s essential to remember that China is a vast, complex and extremely differentiated market, and the attributes and trends that may define your Western audiences won’t necessarily map across to your Chinese target markets.

The importance of good Chinese market research

Good market research is the foundation of all targeting, positioning and overall marketing to the China market, but there are certain things you can learn in advance and bear in mind as you become more familiar with your Chinese customers. China is a blend of the ancient and the modern, it is a rapidly moving and evolving market and it’s a fascinating one too. Here are some things that every Western marketer should know when considering how to delight their Chinese customers.

Ways to delight Chinese customers

1. Show that you really understand your target audience

Over the years, many Western brands have made the mistake of trying to simply shoehorn their Western campaigns into Chinese markets. At best, these efforts simply have no benefits, but at worst they can be offensive. It’s essential to show understanding and respect to your Chinese target audience by researching their needs, wants and desires first, beyond basic demographics.

2. Be culturally aware

The Chinese culture is extremely contextual and driven by symbols, ideas, traditions and concepts that are largely unfamiliar in the West. For example, the Chinese festival calendar includes far more festivals than most Western nations celebrate. Colours, numbers and dates have different significances, and often contradict each other between East and West. For example, white is a symbol of purity and joy in the West, but is associated with death and mourning in China, and is considered unlucky.

3. Make things easy

Chinese customers are used to engaging with the most cutting-edge levels of technology and the types of apps, platforms, social media and websites that they are used to often far exceed comparable digital experiences in the West. Chinese customers are heavy smartphone users and they expect faultless user journeys, with familiar technologies such as Chinese social media platforms and payment processing software. As a Western brand, you can greatly enhance engagement, as well as your brand’s reputation, by making sure your digital assets are as smooth, seamless and trouble-free as possible.

The key to getting this right? Using a Chinese digital marketing agency that can optimise every element, from ensuring your Chinese characters load quickly and correctly and that your user journeys map Chinese reading patterns, to checking that your website is correctly hosted and in line with strict censorship protocols.

4. Integrate your digital assets

Similarly, it’s vital to ensure your digital assets – website, app, social feeds and so forth – are integrated into a single, clear and holistic digital ecosystem that allows your customers to easily move and switch between different forms of content and functionality.

5. Go the extra mile

Depending on their age, socio-economic grouping, location, income band and education, your Chinese customers will have certain demographics that are distinct. This allows you to delight them in meaningful ways. Some customers will love perks such as branded digital games, digital stickers, phone filters and other online gimmicks or competitions. Others will adore shareable, viral content, and other groups will be looking for benefits such as special edition product launches to tie in with festivals, personalisation or ‘freebies’ such as beautiful complimentary gift wrapping, miniature sizes and thoughtful extras.

Chinese customers are sophisticated and extremely able to find alternative products and services from competitors. Many are now seeking brands that are ethical, sustainable and have clear values that are in line with their own. This offers as many opportunities to Western brands as it does challenges. For example, Quality Western brands can leverage their heritage and luxury brand values to great effect in this market, as many Chinese customers have been stung by cheap counterfeit goods.

6. Show that you listen

Sophisticated Chinese customers want to feel heard – and responded to. So when you create social content, be sure to engage with it in a meaningful way. When you collect feedback, take the time to respond to it with either thanks or a commitment to improve and resolve any issues. This shows that you really value your customers and it can be a powerful strategy for building their trust and loyalty. As part of this, consider adding elements of automation for feedback collection, thank you notes and other touchpoints, and speed up your response times when it comes to providing human engagement.

7. Create the right content

Content is king in China, much like it is in the West. So poor translations or cheap dubbing will instantly turn off the very customers you want to attract. Either localise your content with the expert help of a Chinese marketing agency or take the time and investment to generate your own targeted, Chinese-language content that is truly designed to meet the needs of your Chinese customers. They will appreciate the consideration and respect.

8. Have values

Many of today’s Chinese customers are ethical consumers who are interested in shopping with brands that are environmental, sustainable and ethical. So be clear about your values and humanise your brand as much as possible by sharing the good things that you do, promoting your people and making your brand individual, personable and meaningful. This will attract and engage young, sophisticated Chinese customers with an international outlook.

Find out more

Keen to learn more about effectively delighting your Chinese customers? Market Me China can help you to get it right! Please contact our team for a chat about your needs, and to find out how we can help you to find success in this vast, challenging and extremely attractive growth market.

The post How to delight Chinese customers appeared first on Market Me China®.

Do you know enough to confidently market to Chinese Gen Z customers? Let’s take a closer look at some of their traits:

1. Chinese Gen Z grew up during China’s legendary period of economic expansion and as such, they have witnessed huge improvements to their living standards. They are also the first true generation of digital natives.
2. Research by McKinsey [1] shows that they are impulsive, optimistic and often tend to overspend – buying ‘on the go’ and when the urge takes them.
3. Chinese Gen Z customers call themselves the ‘moonlight clan‘ because they tend to live from paycheck to paycheck and spend what they earn within the lunar month. Saving is not yet high on their agenda, and many are comfortable with debt – perhaps because of their healthy earning expectations.
4. They are more loyal than their Millennial predecessors, and more so than their counterparts from other countries. Once engaged, almost half are prepared to be loyal to a brand.

Takeaways for Western marketers

Products

Chinese Gen Z customers love customised products, tailored products and anything which allows them to add their personalised or ‘unique’ stamp – think custom blends, formulations or options to personalise engraving or printing, for example. This generation also shows specific signs of wanting to prioritise health and wellbeing, particularly after Covid, and they are also ready to engage with digital services for fitness, learning and so forth. From travel to health products, there is plenty of opportunity for savvy Western marketers who can offer high-quality, reputable and desirable products through an enticing, exciting brand.

Price

McKinsey found that there was insufficient evidence to show whether Gen Z customers in China were prepared to pay a premium for the customised products that they love. This is important for Western brands and their pricing strategies; especially for those considering more expensive customisation options to fulfil the ‘uniqueness’ criteria.

Place

It’s all about omnichannel marketing for this generation! China’s Gen Z customers are highly likely to browse for clothing in-store and then buy it online, for example. This group in China still value the offline experience, especially for products such as clothing and makeup, where they like to browse physical products and experience them before making a purchase decision. In fact, a number of online-only apparel brands have already opened physical storefronts to meet these needs.

This generation also loves e-commerce platforms and tends to favour individual merchants on them, where they enjoy high degrees of trust and transparency. Quality assurance is key here.

Promotion

Social media is the key to success here. Successful brands in China are leveraging social platforms to engage with their Gen Z customers and using features such as WeChat mini-programs to offer value-add features, such as exclusive bookings and promotions, online events, mobile games and other loyalty-building services.

People

This generation still looks for personal recommendations – but they look to the online world to find reviews. Gen Z customers will go onto sites such as Tmall, RED and Taobao to look for product reviews and get the opinions of family and friends on social media before making a purchase decision – especially for a big-ticket item such as luxury goods, online education or holiday bookings. Official branded social media accounts are also very important to this age group, along with KOLs and bloggers.

Interestingly, offline opinions from friends and family are waning in importance for Chinese Gen Z – although they will still look for guidance via social media.

Key actions for Western marketers

1. Invest in quality customer research and develop a data-driven marketing approach to deeply understand your target group of Chinese Gen Z customers, and develop your branded offer accordingly. The more you can understand their consumption patterns, brand expectations and shopping pain points, the better you can target your marketing.

2. Tailor your brand and proposition to your target segment of Chinese Gen Z customers specifically – rather than being tempted to map over any approach you currently have with Western Gen Z markets.

3. Focus on online and offline channels alike to meet those omnichannel needs – looking at routes such as partnering and focusing heavily on social media platforms for messaging. Key platforms include WeChat, Weibo, Douyin and RED for consistent digital marketing campaigns, as well as Tmall and JD.com for eCommerce. (Even luxury brands such as Chanel use Tmall for online sales.) Your own website must be extremely smooth and seamless to use via smartphones and designed to be as slick and as fast as possible, with immediate integration to eCommerce and social media functionality for this busy generation of high-expectation digital natives.

4. Use the right KOLs – look for influencers that have congruent brand values, and the ability to connect with your target audience in an effective way. This doesn’t necessarily mean looking for mega influencers – so-called ‘micro-influencer’ networks can also be very powerful, and also cost-effective for brands.

5. Be mindful that data protection and quality issues are very important to Gen Z. Be upfront and transparent about how you manage both aspects and explain how you handle processes such as customer data and privacy, product quality, returns and customer service to build trust.

Get the help that you need

Market Me China is here to help you to enjoy Marketing success in China – wherever your target market falls! Our expert team of digital professionals can assist your brand with any aspect of its Chinese digital marketing from research and strategy formulation through to delivery and results evaluation. Please contact us in the first instance to discuss your needs and we will be delighted to assist.

Source

[1] China consumer report 2021 – Understanding Chinese Consumers: Growth Engine of the World, McKinsey

The post Are you prepared to market to Chinese Gen Z? appeared first on Market Me China®.

The opportunities for Western marketers are also excellent – for those who are prepared to understand their changing target markets and to invest in the right digital marketing strategies.

So with that in mind, what should Western brands know about Chinese customers in the post-Covid world? Here are five things to take on board:

1. Chinese customers are resilient – and optimistic

Chinese customers are hugely optimistic and resilient, particularly compared to their global trends. Research shows that they believe normality will resume in the world far quicker than counterparts from other parts of the world. This confidence has already helped China’s retail markets to rebound, and many analysts believe that Chinese customers could help drive the global recovery, not just their own domestic market recovery. This is great news for Western brands considering either a move into the Chinese market or a further investment to grow their position. China’s customers are open for business and ready to buy – so now really is the time to invest in your digital marketing strategy!

2. Younger Chinese customers are changing the way they shop

Younger Chinese customers are showing a strong desire to look after themselves after the effect of the pandemic. Health and wellness products are on the rise, and Gen Z customers in particular are watching how they spend their cash. This doesn’t mean that they intend to stop spending – many young middle-class Chinese customers enjoy subsidies from their parents as well as their own income – but they will be considering their purchases more carefully and dialling in impulse spending. This means that Western brands will need to build their brand awareness and digital engagement strategies for the longer term, focusing on values and brand credentials that really matter to their target audiences.

At the same time, Chinese customers across all consumer segments have begun to embrace ‘at home products‘ in a new way that has been driven by Covid restrictions. Many have indicated a desire to continue with these flexible digital services, such as at-home fitness streaming, remote learning and education, telemedicine and remote consultations and video chat. Again, this offers interesting opportunities to forward-thinking Western brands looking to build their business in China.

3. Chinese customers want luxury!

China’s customers still want the luxury, high-quality brands that symbolise status and taste; spelling good news for Western brands which can trade on values such as craftsmanship, heritage branding, authenticity, taste and superior quality. McKinsey estimates that China’s customers will represent 40% of the world market for luxury goods by 2025. Furthermore, 36% of Chinese customers have indicated that they will be willing to pay more money for quality goods that last the test of time in the post-Covid world. [1] For Western brands keen to capture a slice of the luxury goods market, an agency such as Market Me China can help greatly with everything from KOL partnering to branded content creation and online marketing campaigns.

4. Digital engagement is more important than ever

During the pandemic, B2C brands were able to take advantage of digital channels to great effect. Nike used its mobile apps to host home workouts to Chinese customers on lockdown, driving their engagement by 80% and their first-quarter online sales by over 30%. Similarly, Lululemon leveraged WeChat to boost its customer acquisition, and car brands used the live streaming features on Tmall and TikTok to market models to consumers, answer questions, promote key features and ultimately, to sell new cars – which were then dropped off at customer’s homes. It’s worth noting too that Taobao registered 30,000 new branded live-streaming accounts, growing its account volumes by 700%. [1] If you’re a Western brand looking to market in China, now is certainly the time to ramp-up your digital strategy!

5. Poor service is no longer tolerated

Research shows that Chinese customers are becoming tired of low-quality, sub-standard products. For example, customer complaints in Guangdong hit 98,000 in Q1 of 2020; a rise of 40%. [1] Customers in China are no longer willing to put up with bad products – or bad service. Again, this offers excellent opportunities for quality Western brands which are prepared to invest in their entire marketing offer; from product development through to post-purchase customer service. For example, look at beauty brands such as Estée Lauder and L’Oréal. who already use Chinese social channels such as WeChat to enable their Beauty Consultants to reach out and engage with potential customers to offer personalised advice, service, and content. Digital channels offer fantastic opportunities for Western brands who are prepared to invest in a great customer experience, with native Chinese language customer service agents, chatbots, apps, carefully-optimised websites and other digital approaches.

The help that you need

The digital marketing landscape in China can be complex and bewildering! The Chinese digital ecosystem is far bigger and arguably more complex than in the West, with existing competitive players already using sophisticated omnichannel marketing strategies to engage and convert their target audiences. But the good news is that now is the time to launch or grow your brand in China – with huge rewards and opportunities available for those who take the leap – and the team at Market Me China is here to help you succeed.

Our team of digital marketing professionals blend native Chinese language skills with in-depth digital marketing expertise – leveraging significant experience in the field to help our clients in education, eCommerce, B2B, travel and other sectors. We work on a flexible – and socially distanced – basis according to each client’s needs and evidence our value at every turn. Ready to build your brand sustainably and successfully in China? Please contact us for a no-obligation discussion about your needs.

Source
[1] China consumer report 2021 – Understanding Chinese Consumers: Growth Engine of the World, McKinsey

The post Do you really know Chinese customers? 5 key facts in the Post Covid-19 world appeared first on Market Me China®.

The allure of Western brands in China

Chinese customers greatly value Western brands and view them as being of particularly high-quality. Big designer brands do exceptionally well in China, but smaller and newer Western brands can also enjoy real success with the right strategy.

Quality

This is perhaps one of the most important attributes that a Western brand can offer. Whether it comes in the form of a prestigious university course, a boutique hotel or travel experience, or a high-quality physical product, the attribute of quality is one that will greatly interest the sophisticated, discerning and increasingly affluent audience of Chinese buyers.

Authenticity

Most Chinese customers have been burned by Chinese counterfeit fakes, and are naturally suspicious of unbranded, locally-produced goods as a result. Authentic Western brands which maintain total adherence to their values (especially of quality, style, heritage and so forth) will be able to gain the trust of their Chinese audience – both for the initial purchase and for an ongoing relationship.

Performance

Chinese customers expect high-performance from quality brands. They will pay more for luxury materials, sophisticated technologies and premium products which signal their taste and success. For services, the performance attribute can be translated into results – such as onward employment outcomes from a certain higher education programme, or a smooth welcome and superb customer experience at a travel destination. The key is that the actual brand experience must match its promise.

Prestige

Although Chinese customers are generally price-conscious, they are willing to pay more from premium brands which signal their sophistication and economic success to peers. This is particularly the case when it comes to designer brands. Often, Chinese customers will pay for this prestige directly from brands in the West via eCommerce channels, as imported equivalents tend to be more expensive within China.

Choice

Chinese customers also believe that they will enjoy a bigger range of choice, and access to more collections (for example for clothing, accessories, make-up and so forth) if they buy from a Western brand. This offers Western brands of all kinds the chance to offer variety to win new Chinese customers – whether it’s in the form of a series of international business courses or a range of luxury leather handbags.

Heritage

The Western lifestyle, history and culture is of great interest to the outward-facing, sophisticated and increasingly global Chinese audience. Western brands which incorporate elements of heritage – such as Cambridge Satchels or Dior – will find this particular brand value strongly received in this market. Chinese customers love to engage with a brand’s rich, and authentic heritage story, to feel a deep emotional connection to it.

Fresh experiences

Chinese people are fascinated by new experiences and keen to travel. This has led to an increase in demand for Western products that include wine, food and clothing. Western brands have two opportunities to delight and engage new Chinese customers here – from the offer itself which can broaden their horizons, sophistication and aspirations – through to the marketing used to enhance and enrich the experience and the promise of that experience. Thanks to the scope and cutting-edge nature of Chinese digital technologies, Western brands often have a far greater chance for creativity and innovation in their integrated Chinese digital marketing campaigns than they will at home.

Personalised communication

Because Chinese customers are so sophisticated in their online shopping habits, they expect their chosen brands to communicate with them in a highly personalised, relevant and tailored way that meets their interests and needs. Furthermore, they expect these communications to innovative and present across the Chinese social platforms that they use – including WeChat and Weibo. Brands should begin by ensuring that their brand and its values translate effectively to their target Chinese audience’s needs, wants and desires and progress to creating a tailored communications plan and campaign.

Ease of purchase

Along with tailored digital communications, Chinese customers also expect to find that their chosen Western brands have provided a seamless user journey with integrated e-commerce functionality. Western brands should seek to integrated popular Chinese payment platforms into their websites and build eCommerce stores within Chinese social media platforms which offer this functionality. Where possible, purchases should be completed in just a few clicks, via the ubiquitous smartphone.

Service

When Chinese customers choose to patronise a quality Western brand, they expect the brand experience to continue from advertising through to service. Western brands should seek to go above and beyond with their service. This could include gift-wrapping items which are shipped to China via e-commerce sites or including personalised thank you notes. Accessories such as dust bags or care products for luxury bags and shoes are also valued, along with further vouchers and promotions for future sales. Every service touchpoint should be considered as an opportunity to delight and retain the customer.

Consistency

The Chinese market is highly sophisticated, and these customers expect to enjoy a consistent brand experience across all touchpoints. This means that brands need to invest in all of their digital assets, from their Chinese website through to the right KOL partnerships, ePR activity, online advertising and so forth.

Chinese customers are extremely active online – sharing reviews on forums, recommendations in private social networking groups, to friends and in comments on social platforms. So Western brands must invest heavily in their digital presence and then seek to manage it, with regular analysis, engagement and ongoing interaction with their online audience. This will be made easier with the help of a Chinese marketing agency who can manage all digital engagements online on behalf of the brand and provide back-end analytics to evidence campaign effectiveness.

Find out more

Market Me China works with Western brands from across all industries, including travel, e-commerce and education, to help them to maximise their returns from the Chinese market. Whatever stage you are at in your Chinese marketing journey, we can help you to get better results. Our team of Chinese digital marketing professionals can act as an expert and flexible extension to your own in-house team for the best possible results. Please feel free to contact us to find out more.

The post What do Chinese online customers want from Western brands? appeared first on Market Me China®.

Let’s take a closer look at some of the features that tend to be present amongst Chinese audiences, for successful marketing in China. Of course, when we talk about an audience, we mean a tightly segmented group of customers with a set of common features, who are likely to want to buy our product or service. There will be a huge variation in the preferences, needs, desires and wants of any audience as a whole. But interesting trends do present themselves, which flag up just how different two customer groups can be. For example:

Online advertising

Western audiences tend to find online advertising irritating and intrusive. Chinese audiences do not have the same negative response and often welcome well-targeted online advertising as a means of learning about new brands.

Social media

Western audiences use Facebook, Instagram, Twitter and Snapchat. Chinese audiences have a far greater array of popular and in-country social media channels at their disposal, including WeChat, Sina Weibo, Tencent QQ and Douyin AKA TikTok (which is now gaining a global following.) Chinese customers also use industry and topic-specific social media platforms, such as Mafengwo for travel and Keep for health and fitness. In terms of segmentation, there are also platforms such as Kuaishou, which is a short-video platform but targeted to users who live outside of Tier 1 cities. Remember though when we talk about a more ‘niche’ platform, the scale of China needs to be considered. Kuaishou, mentioned above, already has over 160 million active daily users in China!

Censorship

Western content isn’t subject to government censorship, but Chinese online content is. This means that rules must be followed to avoid campaign content falling foul of state monitoring and being removed. A Chinese marketing agency can help with this aspect, to ensure that Western marketing in China to Chinese audiences is in line with these strict rules.

Digital adoption

Western and Chinese audiences are both sophisticated netizens who live on their smartphones, but in China, the figures are mind-boggling. Around 74% of the Chinese population use a smartphone, which equates to around a billion people – and the figure is growing. A new generation of digital natives in both countries is redefining what it means to live life online – from buying products and services through to engaging with like-minded people, sharing experiences and enjoying entertainment.

Content

Chinese audiences love entertaining, meaningful, quirky, creative and above all – shareable – content. They are often more likely to engage in digital competitions with brands and to share gifs, stickers, filters and other digital assets with their friends. Western brands need to be highly creative and original in their quest to engage online Chinese customers and to stand out from other brands.

Channels

Chinese customers are also far more inclined to shop online than Western customers, and they are less bothered by traditional bricks and mortar stores, although they do like to visit high-end Western retail brand premises. Chinese customers will buy online using smartphones, tablets and laptops, so Western marketers need to ensure that their campaigns are optimised at all times for different accessibility modes.

Shopping

Chinese customers also love shopping online – after all, this is a nation that has entire national holidays devoted to shopping, such as Singles Day on 11th November which is a 24-hour shopping bonanza that exceeds even Black Friday. Price isn’t always the key factor in a purchase decision for Chinese buyers either. In fact, their purchase decisions tend to be more nuanced compared to the West, where ‘bargains’ are heavily sought after.

Product research

As well as really enjoying their shopping experiences (compared to Western counterparts who may view it as a chore), Chinese customers are very active in seeking out brand information such as product reviews and forum conversations. They like to be informed customers and to display their tastes and credentials through the brands that they buy. Chinese customers can seem to be demanding because they need a lot of information about brands and their product or service offer. This is because Chinese audiences have often had negative experiences with counterfeit goods – so authenticity and quality are key to them. This is one of the reasons why Western luxury brands are always so much in demand.

Chinese audiences will go the extra mile to inform themselves about a brand before they buy from it. They will get advice from friends on social media, engage with the brand online to learn about it, watch explainer videos, read reviews and discuss brands in forums, for example. Chinese audiences are also far more likely to seek advice and guidance from online influencers (KOLs).

Culture

Chinese and Western audiences are both heavily influenced by the complex interplay of culture – from national through to the social groups that they choose to be part of. And the national cultures are very different! For example, Western humour tends to translate badly into Chinese. British sarcasm is likely to fall flat! Certain symbols, numbers and colours have a different significance in China than to the West, and China has a different calendar of festivals.

Overall

It’s important to note, however, that although there are obvious and key differences between Chinese and Western audiences, the drivers that encourage them to buy are very much the same. All customers, whatever their nationality, country of residence or cultural heritage, all want to feel special, and all want to choose brands which reflect their values. All customers want to find quality products and services that meet their needs and which provide an excellent and memorable service. And when customers experience this kind of excellence, they will talk about it with their own network.

Find out more

Market Me China supports Western marketers with all aspects of digital marketing in China. Whether your brand is looking to launch within the market or seeking to grow, our digital marketing experts can assist. From content localisation through to KOL liaison, we act as a flexible resource to provide the expertise and skillsets that you need for a successful campaign. Please contact us to find out more.

The post Marketing in China: How Chinese audiences differ from Western audiences appeared first on Market Me China®.

More than a third of Chinese internet users have a positive world outlook

Out of all the Chinese internet users polled by YouGov, 41% of internet users held positive views of world progress, while just over a third considered that things were getting worse. Of all the countries surveyed, the UK was the fifth most pessimistic, with 65% of adults in Britain believing that the world is deteriorating, despite many leading indicators of progress suggesting things have improved over the last 200 years.

China overwhelmingly optimistic compared to world outlook

The results not only show that the Chinese are the most positive about the world, they also show that China is remarkably optimistic when compared to the other countries in which YouGov conducted the polls. The number of positive respondents to the questionnaire was nearly double the number of Indonesia, the second most optimistic country according to the survey, where 23% of respondents feel positive. Of all the countries participating in the poll, China is the only country in which net positivity (the percentage of positive respondents minus the number of negative respondents) is a positive number.

The result suggests that there is something special about China that is making its citizens particularly positive, and the strong economic growth and growing middle class – both of which are fuelling consumer demand – are likely contenders.

Does China’s growing consumer base make it a more optimistic country?

Another previous poll by YouGov discovered the top aspirations of people in Eastern countries, with China ranking highly in desiring health, power and money, although for all countries the latter two categories had small scores to begin with. However, another survey, also conducted by YouGov, has previously found that positive world outlook is often linked to being young, middle class and well educated. According to the data, the optimists trust large institutions, are highly driven in their careers, and are energised by socialising.

As China’s economy grows, its middle class expands – a middle class with an increasing amount of disposable income and a desire for goods that demonstrate their social status and a lifestyle similar to that of the West. China continues to undergo a historic social change (the government recently removed the restrictions on couples which allows them to have more than one child, for instance), in which they are incorporating some of the material values of the West, yet not at the expense of their rich cultural heritage.

It seems that Chinese consumers aren’t just fuelling growth, they’re also fuelling positivity.

(Image source: Image created by stockimages | www.freedigitalphotos.net)

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