Taking chinese brands global barney loehnis


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Only 75 companies in the Fortune 500 and only 12 of the Top 100 worldwide brands are Chinese. This is about to change dramatically. In this presentation I exlpore some of the most successful Chinese brands and look at what has brought them success. I also review some of the challenges of launching International brands in China. What do CMO's need to know?How should digital, social and mobile play a role?

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Taking chinese brands global barney loehnis

  1. 1. Body levelTaking China Brands to the worldBringing Global Brands to ChinaIn a digital and social worldBarney LoehnisASIA PACIFIC Digital StrategyASIA PACIFIC Head of Mobile@barneylo1
  2. 2. Brand China2
  3. 3. China is simply returning to its historical position3
  4. 4. China has 75 Co. in Fortune 500 & 12 in Global 100 top BrandsMillward Brown: BrandZ Chinese Brands4
  5. 5. TNS - Chinese brands going global91% consumers think “brand China” lags global brands5
  6. 6. TNS - Chinese brands going globalThis is the negative image that Brand China must “shake”6
  7. 7. "The so-called Chinese Dream, its as fragile asthis papercut. Its an illusion” Ai Wei WeiThere is so much desire in China to have a bright future7
  9. 9. OEM / FactoryLocal ProductLocal ExpansionEstablish BrandGlobalExpansionBrandAdaptationDistributionProduct DesignLocal AcquisitionMarketing ManagementAppoint KOL’sSponsor Sport/eventDevelop ContentSocial CommunityProduct AdaptationINTL AcquisitionINTL ManagementDistributionecommerce/ CRMCelebritiesCultural DriversKOL’sBranded ContentSocial CommunityQualityCostSpeedCostValueMANUFACTURERS& SHOPKEEPERSBRAND BUILDING& INNOVATIONBUSINESS ANDMARKETINGEvolutionary path from a local to a global brandDemonstrate QualityEstablish MarketingDevelop BrandGlobal Marketing9
  10. 10. DIFFICULTYRATING10.01.INTERNATIONAL EXPERIENCED MANAGEMENT2.Expanding DISTRIBUTION CHANNEL+ R&D3.Demonstrable CONSUMER INSIGHT4.Adaptation of PRODUCT DESIGN5.Established CULTURAL ASSIMILATION / SPONSORSHIPS6.Active SOCIAL & BRANDED CONTENT PLATFORM7.INTEGRATED MARKETING / SERVICES SYSTEMHow hard is the task? How big is the achievement?What are the drivers that lead to building successful brands?10
  11. 11. 8% WW white goods SALES1984 2011Bust & BrokenPRODUCTDRIVEN"The way we sell online is to be transparent.We tell users everything about the phone.Telling them fully about the CPU, display,that it uses an LG battery. We give the goodand the bad. And tell them how well fix thebad." Bin Lin, FounderCONSUMERDRIVEN“Taobao does not belongto China. It comes fromChina but belongs to thewhole world. Taobaobelongs to thisgeneration.”SERVICEDRIVEN2,000 outlets and featuring in every townin China generating almost US$2BNCULTURALLYDRIVENDIFFICULTYRATING9.8DIFFICULTYRATING8.1DIFFICULTYRATING6.9DIFFICULTYRATING7.111
  12. 12. The VICES &the VIRTUES12
  13. 13. GreedVanityArroganceAssumptionHopePrioritizationEducationHumilityInsightHonestyVices VirtuesBig  brands  want  global  domination  too  fastBrands  must  establish  a  foothold  4irst,  then  scale.13
  14. 14. Brands entering China must decide where to focus.Entering China is like entering 100 markets simultaneously14
  15. 15. Worked  around  communica.ons  posi.oning  as  being  “Unexpected”:– Launch  the  product  but  adapt  it  to  the  Brazilian  market:  240  changes  to  the  original  spec  – Combine  compe..ve  pricing  and  op.mal  configura.on:  good  value-­‐for-­‐money  with  affordable,  quality  products– Introduce  a  6-­‐year  warranty,  to  ease  concerns  of  “low  price,  low  quality”  with  skepBcal  consumers– Increase  credibility  through  celebrity  endorsement:  Brazilian  TV  show  host,  Fausto  Silva•Outcome:  In  2  weeks  2500  sales;  10,000  vehicles  sold  in  two  months.•Sells  more  cars  than  all  other  Chinese  brands  put  together  •JAC Motors Entering Brazil MarketHighly  compeBBve  market  within  this  segmentVsSubcompact  Haches  segmentChery  QQ Nissan  March Hyundai  HB20Fiat  Uno Kia  PicantoConsumer impression of Chinese products are: “cheap” “imitations” “unreliable”DIFFICULTYRATING8.515
  16. 16. 16
  17. 17. GreedVanityArroganceAssumptionHopePrioritizeEducateHumilityInsightHonestyVices VirtuesBig  domestic  brands  struggle  to  know  how  irrelevant  they  are  in  new  marketsDevelop  new  cultural  reference  points  that  can  help  build  the  right  image17
  18. 18. KPMG, Global Reach China Luxury, 2013Brands need to understand where national brand addsvalueHow do you market the “British” inBritish Airways if people don’tunderstand “British”... If theyassociate Britain with Mr Bean andCrap food?EXAMPLE18
  19. 19. Chengdu PambassadorThe cutest jobin the worldCHALLENGELow overseas awareness of Chengdu makes it difficult toa ract FDI and tourism. The city needed a globally impactfulcampaign to put Chengdu on the map.STRATEGY/EXECUTIONWe executed a 3-month global competition to raise awarenessof Chengdu as the hometown of giant pandas. A creative,integrated 360-degree approach, focusing on local marketpenetration, drove global awareness.RESULTS2,800 media reports128 million YouTube views410,000 Facebook likes2012 growth of international visitors to Chengdu: 30.3%(compared to 1.2% national growth)2012 FDI growth: 31.1%(compared to -3.7% national growth)CHENGDUDIFFICULTYRATING8.019
  20. 20. 20
  21. 21. GreedVanityArroganceAssumptionHopePrioritizationEducationHumilityInsightHonestyVices VirtuesLeading  brands  can  struggle  to  adapt  marketing  modelsRedesign  the  marketing  mix  and  mentality  to  a  challenger  position21
  23. 23. 23
  24. 24. GreedVanityArroganceAssumptionHopePrioristisationEducationHumilityInsightHonestyVices VirtuesIt  is  wrong  to  assume  one  market’s  consumers  will  respond  similarly  in  anotherStart  from  scratch  to  4ind    insights  for  the  market,  competitors,  &  consumers24
  25. 25. Spanish  basketball  team.  Norway  javelin  championNBA:  signed  an  old  star  Shaquille  ONealFollower  6,880Follower  121,208Lack  of  Management  Maturity,  Local  insight    and  local  culture  knowledgeDIFFICULTYRATING5.725
  26. 26. Five Pillars - the systemFirst is the platform.Second, our procurement systemThird, the logistic systemFourth is our distribution systemFifth is CRM system.ValuesIntegritycustomersexecutioninnovation.“ Too many people focus too much on the benefits directly before theireyes, which prevent them from seeing a bigger future. Only bygiving up the benefits now, can you build a long-lasting course for the future.” Yu Gang, CO-FounderDIFFICULTYRATING7.226
  27. 27. 27
  28. 28. GreedVanityArroganceAssumptionHopePrioristisationEducationHumilityInsightHonestyVices VirtuesPartnerships  and  made  too  readily  in  the  hope  things  turn  out  well.Be  paranoid  and  act  like  a  start-­‐up.  Move  management  to  where  it  needs  to  be28
  29. 29. 60 countriesSells products in 160 countries.Founded in Beijing in 1984HQ - MorrisVille N CarolinaMarketing base in India. HKINTL MgmtDIFFICULTYRATING9.229
  30. 30. 30
  31. 31. PR  StakeholdersSocial  PresenceBasic  EcosystemCampaign  focusSales  DriversBuild  CommunityIdenBfy  ChampionsAlways  OnPaid  Owned  EarnedIntegraBng  with  Customer  Service&  eCommerceMobile  backboneExpansion  of  distribuBon  channels  &  strategic  partnersFull  integrated  ecosystemSocial  CRMContent  CreaBonFully  IntegratedAlways  OnBrand  ProgramsDemand  ProgramsInitial Developing Defined Managed OptimisedEvolution of digital and social in brand buildingPresence Relevancy Bonding Structural Loyalty31
  32. 32. Slowly the world will develop adeeper understanding of “China”32
  33. 33. THE END@barneylo33
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