London, 10 April 2023 | | 1

China Global

Going Global - Advertising Works UK China 2010 Conference

Overview

• To showcase the UK ad industry and what it can offer Chinese brands wanting to go global.

• Chinese exporters are embracing the UK as vital to success in the European market

• Speakers were all high profile representatives from top agencies in the UK

Highlights

Highlights

• HSBC ads (JWT) (video)

• Culture sensitive communication for global brands

Highlights

• Social media (Profero)

Highlights

• Olympic 2012 (McCann Erickson)

• How they promote Olympic 2012 to the world

• Partnerships with McDonalds to recruit volunteers

From the conference

• China Advertising Association

• Majority of International agencies are already dominating the advertising industry in China

• WPP, Omnicon, Interpublic, Densu etc

• Internet only 3.1% of overall ad turnover

• 170,000 ad agencies

• 11,000 media companies

• 2500 other related companies

• 300 ad college

Our thoughts..

Chinese global brands - Now

• From low value-added short term price competition to high value-added innovation

• Acquisitions is the fastest way to establish a global presence. Nearly half of Chinas outbound corporate investment focused on securing natural resources mostly through acquisitions

• Lenovo in 2005 acquired IBM’s personal computer business. Now its worlds number 3 computer maker after Dell and Hewlett Packard

Chinese global brands

• Haier

• Lenovo

• Huawei

• Tsingtao

• Alibaba.com

Chinese global brands

Take aways

• Taking Chinese brands global, is this way to go forward?

• Are global marketing agencies best suited to facilitate this?

• Is there another way to promote and develop Chinese brands to enhance their international presence?

Before we look at how we can help Chinese brands go global…

420 million

420 million netizens

70%

70% engaged in social

media

30%

30% managed a

social network profile

30

70% of Chinese Internet users are under 30 years

old

Key output for self

expression

Less than 7%

Less than 7% Marketing

Spend Online

How does that influence web design•Entertainment - primary motivation to go online

•Very localized

•Web 2.0, websites in China - looking for useful and helpful content, and they want to contribute to the websites

•Technical knowledge - Chinese designers are on par with designers in Western countries

•Limited budgets

Flash

Entertainment

Clicks

Culture

The Challenges

Challenges•Government censorship and Compliance

YouTube, Twitter, Facebook, and Flickr are all blocked in China

Baidu blocks pornography or references to topics such as Taiwanese independence, the Dalai Lama, and the 1989 Tiananmen Square massacre.

Determined users find workarounds to avoid the GFW

♯GFW

http://twitter.com/#search?q=%23GFW

Challenges•Convince stakeholders that a design is right?

“Guanxi” and trust

Perception of the concept of A/B and multivariate testing as being “Western” and might yield a “low ROI.”

The Opportunities

Opportunities•E-commerce Taobao - the market in China, one of the largest shopping platforms in China to connect buyers and sellers of "baobei" (treasures)

•Moving towards integrating user-generated content Douban, an online book and movie club – existed before YouTube!

•Online trends develop own Web design style using the backdrop of Chinese culture.

•In line with the mainstream world, creating more user-centered designs and offering a better user experience.

Opportunities•Focus on users and your service

•Focuses on user essentials and react quickly

Grass roots user centered design, in

China?

“Shangzhai”

iOrgane

Mobiles marketDesigned "Bird Nest" and "Fuwa" ( 福娃 ) cell phones in light of the Beijing Olympic Games.

BaiGooHoo

To be continued…• Is Shanzhai an emerging model of innovation?

• Can imitation become innovation?