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Being able to operate on a global stage is now a necessity for success in business. It is not enough to simply expand to another country, but understanding cultural norms will make the transition much easier. China is a large economy and many western business have tried to expand into this arena without success. Chinese demographics are complex and the culture is unique. This presentation is a brief overview based on a thesis study conducted to find effective marketing strategies for marketing to Chinese consumers.
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MARKETING TO CHINA:
The Next Frontier for Western
Business
Developed by Kimberly D. HardyMarketing professional & graduate student at Colorado State
University – Global Campus
MARKETING TO CHINA: THE NEXT FRONTIER FOR WESTERN BUSINESS
• WHY CHINA & WHY NOW
• USING SOCIAL MEDIA TO CRUSH THE COMPETITION
• MARKETING IN CHINA IS ABOUT RELATIONSHIPS
WHY CHINA & WHY NOW
• China is now the largest economy in the world
• China has the capacity to purchase 14% of the worlds products
• Younger generation embraces western lifestyle and views foreign products as “safer”
WHY CHINA & WHY NOW
• Chinese incomes are on the rise
• Increased spending on toys, cosmetics, and snack foods
WHY CHINA & WHY NOW
• Increased spending on pet products, baby products, & products for elderly
• Chinese greatly value “face” and will spend more to avoid appearing cheap
WHY CHINA & WHY NOW
• Migrant workers, which amount to over 100 million, are breaking down the dual urban structure with a transformation in values and want to keep up with trends
WHY CHINA & WHY NOW
• Population control policies have had a significant impact on the elderly market
• Rich Chinese consumers are open to new products
• Chinese market is male dominated
USING SOCIAL MEDIA TO CRUSH THE COMPETITION
USING SOCIAL MEDIA TO CRUSH THE COMPETITION
• China had 420 million netizens by the first half of 2010
• Most netizens experience the internet only through social media
• Chinese netizens are on the internet an average of 2.7 hours a day
USING SOCIAL MEDIA TO CRUSH THE COMPETITION
• Facebook is banned in China, along with Youtube and Twitter
• Government policies are strict on advertising
USING SOCIAL MEDIA TO CRUSH THE COMPETITION
• Sina Weibo is Facebook’s equivalent in China and is the most used platform
• With 700 + million users, it is the preferred network for professionals
USING SOCIAL MEDIA TO CRUSH THE COMPETITION
• Nearly half of Weibo’s updates are sent by mobile, contributing to the mobile explosion in China
• Chinese equivalents of Youtube are Tudou and Youku
USING SOCIAL MEDIA TO CRUSH THE COMPETITION
• QQ is one of the oldest Chinese social media platforms
• Another Facebook’s equivalent, it is the entry point for Qzone and can work on any phone
USING SOCIAL MEDIA TO CRUSH THE COMPETITION
• Ushi is China’s equivalent to Linkedin but professionals still prefer Weibo
MARKETING IN CHINA IS ABOUT RELATIONSHIP BUILDING
MARKETING IN CHINA IS ABOUT RELATIONSHIP BUILDING
• Business negotiation is seen as a type of marketing platform
• Success factors of business marketing in China are patience, flexibility, and plenty of negotiation
MARKETING IN CHINA IS ABOUT RELATIONSHIP BUILDING
• Chinese have a strong attachment to the past
• Chinese have deeply held Confucian values that display an emphasis on collectivism and harmony
MARKETING IN CHINA IS ABOUT RELATIONSHIP BUILDING
• If the brand has a unique appeal, it will create a bond with the Chinese consumer
• During negotiations, transaction cost and access to partner’s resources are high priority
MARKETING IN CHINA IS ABOUT RELATIONSHIP BUILDING
• The cosmetics market in China reached $34 billion in 2013
• L’Oreal is highly successful in China’s cosmetics market, which accounts for $29 billion in revenue
MARKETING IN CHINA IS ABOUT RELATIONSHIP BUILDING
• The cosmetics market in China is male dominated
• More than 260 L’Oreal scientists are based in Shanghai researching and incorporating local ingredients for products
MARKETING IN CHINA IS ABOUT RELATIONSHIP BUILDING
• Localization and adaptation to Chinese values will guarantee increased success.
• Chinese demographics are complex and partnering with local government entities will help in adjusting to cultural norms.
MARKETING TO CHINA:The Next Frontier for Western Business
Kimberly Hardy is a graduate student at Colorado State University – Global Campus studying
Organizational Leadership with an emphasis in Global Management. She received her BA in Business with an emphasis in Marketing from California State
University San Bernardino and has worked in the field for 7 years. The information in this slide is
derived from a thesis study of marketing to Chinese consumers. All information is derived from scholarly
journals and peer reviewed articles. For questions or more information you can contact
Kimberly at [email protected].
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