acbc the china way

ACBC | April 29, 2015

vs. Chinese realityWestern perception

ACBC Event | April 29, 2015

Statistics are exciting

Follow the conversation: #AsiaQ

China’s millionaires increased

82% in 20132,388,000 households**BCG 2014 wealth report

is the average age of super-rich in China

Mercedes Benz made a

29% increaseselling 281,588 cars in 2014

14 million people play tennis

39students went abroad in 2013

Middle class consumers

Larger than entire US population

500 million593,832There are currently Foreigners

living in China

of all consumption in China to come from young (G2) consumers by 2020

35%

390,000


But when it comes to marketing in China, statistics can be a distraction


Behind the mind-boggling statistics China is a country as diverse as Europe, so you must consider: Regional culture

levels of developmenttastes

dialect

Business opportunities may exist away from the highly populated

megacities


New symbols & words every yearOn the Internet or mobile, ‘286’ means you are slow or unresponsive; ‘886’ means good-bye; ‘9494’ means yes, I agree.

http://www.shanzhaimi.com/

The most popular and powerful new word so far is the word

Shanzhài


Until now, everything has a (Shānzhài) version, for it really symbolizes the vibrancy and complexity of the market.


What’s in a name?Auspicious names have a practical application


1.2 billion people are NOT your target audience

GUANGZHOU

SHANGHAI

BEIJING


QINGDAO

8.7 million


CHENGDU

14 million


In the west, it’s pretty simple.

In China, it’s not.

We identify our target audience and focus our efforts on them.

You need to consider and build relationships with multiple stakeholders because success or failure depends on a range of influences.

Different regulatory regimes

More invasive Government policy

Heightened cultural influences

Politics are considered when decision making


Where to focus your business and find the right market?

Opening the right doors to the China market

In the west this would be undue influence; in China, take this approach or you’ll fail.

Supporting a research chair

at an influential university

Participating in a regulatory

committee

In other words, ‘know the right people’


Red tape analysisYou need to get a grip on what’s really happening

R 34 Provincial regions

2862 County-level regions

334 Prefectual level regions

42,000 Township-level regions

and even more at village level...


Hot topic on Baidu & new goverment policy

• New policies and regulations creating business

• Opportunities for international companies

• Increasing complexity & compliance

• Risk & reputation

Tracking water pollution

Go deeper & challenges are revealed


Competition is rising from homegrown brands

Local brands have moved a long way from the negatives of ‘Made in China’

Chinese people take pride in their country’s achievements

Understanding ‘who’ and ‘where’ competitors are is a major consideration

International brands are trusted in China but...


Who is Xiaomi?It released its first smartphone in August 2011. By the end of 2014, Xiaomi overtook Samsung becoming the largest smartphone vendor in China and third largest in the world.With a valuation at more than US$46 billion it became the world’s most valuable tech start-up.

What does this mean for us?

Will Xiaomi crush Samsung and Apple?


K

People believe in key opinion leaders, not the government or media.


Kai Fu Li50, 228, 741 followers

Ex Google and Microsoft head, Kai Fu Li is a very active and vocal technology blogger with over 50 million followers. Just a few positive tweets from Kai Fu Li can create a huge sway in shaping perception in the public.

Most influential KOL?


You need to be there

The pace of change is almost

incomprehensible for westerners


The 3 key success factors

Cairns Tourist Market | 15 April 2015

3You’ll be invisible without a Chinese brand/company name

Position for relevance: localise your brand experience and marketing, while maintaining your brand integrity

Get local, up-to-date insights to base your strategy on1.

3.

2.


tThank you