from made in china to brands from china
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From Made in China to Brands from China
Stephany ZooGuohe Ad
Social Media Week 20129/26 Shanghai, China
≠Brand Equity
Brand Awareness
37 Chinese companies on the fortune 500 list
No Chinese brands on Interbrand’s list of top
100 top brands
VS
Forbes
American Brands in China have helped
Chinese brands understand what
branding is
Chinese Market: Low Brand Loyalty
65% of Chinese consumers often purchase a different brand than they intendedTraditional marketing tactics proven effective in China:• Celebrity endorsement• White papers• Pro bono work• ...
Less than 15% of US consumers purchase a different brand than they intended
VS
Starbucks: What They Have Done
• Selling the idea of being "cool", "sophisticated"
• Moderate localization emanated from its core brand
• The high price becomes a prestige symbol, a "face" that China folks would want to have
• Market position: a daily luxury and an affordable premium experience
WESTERN SOCIAL MEDIA LOCAL SOCIAL MEDIA
Facebook: 31M
Twitter: 3M
YouTube: 8M video views & 14K subscribers
RenRen: almost 80K
Sina Weibo: 0.5M
Youku: 21K visits
• 1st global brand to jump aboard the messaging app WeChat
• Targeting Chinese customers who are young, moneyed, and urban
• Promoting its WeChat presence using the distinctive customized QR codes
• Involving users in special deals, perhaps via sending coupons as messages
Starbucks: What They Are Doing Now
• Partnered with JiePang, China’s leading LBS application
• Created seasonal campaigns and special events, for example, Valentines’ Day and Christmas
• Allowed JiePang users to get discounts, free drinks and unlock virtual badges through check-ins at a Starbucks location
Starbucks: What They Are Doing Now
Newcomer: Abercrombie & Fitch
Opened its first Hollister store in Mainland China and Abercrombie & Fitch store in Hong Kong
Internationally adopted store features
In China: frequent appearances of Abercrombie & Fitch beside the Hollister logo
Use A&F’s prestigious name to push Hollister To test the market and build up the momentum to
open A&F stores in the future
New comer: Abercrombie & Fitch
Strong presence on Sina Weibo
Abercrombie & FitchWeibo contest to win a trip to the grand opening of Hong Kong’s flagship store
HollisterFrequent updates on #Hollister Fashion#, #Hollister Lifestyle#...
Challenges for Chinese Brands
Irrational sinophobia
Perceptions of Bad Quality
Worries about Intellectual Property
Whatever.
30 years ago
Today
Samsung Hyundai
HTC
South Korea + Taiwan = Cheap and Inferior Products
What Does it all come down to?
Trust
Two things Impede:
1. Chinese Brands need to discover the value of market research to identify opportunities
2. Develop Matrix management structure, to define global to local interactions
-Miles Young, CEO of OGilvy
Li ning
Made in New China
Combating preconceived notions of china in a Cunning way
Why are they still struggling?
Unclear brand positioning
Haier
• 6% global market share for whiteline goods
• 1990’s: niche markets• Now: Acquisitions• Why brand when you can buy?
• 5-6% Marketing expense
Haier
What Can Social do for
me?
A couple of numbers
of Consumers 18-25 have positive sentiment towards Chinese brands
of Consumers making more than $225k (¥1432k) reported the quality of Chinese goods have improved
or remained consistent
80%
92%
Mediapost
50%> Of Americans think that chinese goods will be
up to par with american goods in 5 years
Social and Digital targets Millenials
Empower yourself with
social
“It Took the Japanese car manufacturers 20 years to establish themselves in this country. It took the Koreans 10 years. It would take
the Chinese less than 5 years once they rev up the brand export Machine.”
-Jim Press, Chrysler Vice Chairman, former head of toyota NA
Thank [email protected]