Transcript of "eCMO 2010 Internet Marketing Trends in the Chinese Mainland: Implications for Hong Kong businesses"
Major Trends of Internet Marketing in Mainland China: Implications for Hong Kong Businesses A Presentation Made at HKAIM eCMO Forum June 2010 Dr. Wenyu Dou, Associate Professor of Marketing Associate Head, Department of Marketing City University of Hong Kong
About the Speaker <ul><li>Dr. Wenyu Dou is considered a pioneering researcher and leading expert on Internet Marketing. He has published extensively on this topic since 1998 and taught this course many times at Universities in the U.S. and China. </li></ul><ul><li>He is also a frequent speaker on this topic at various industry conventions and top companies in the region (e.g., Ping An, ICBC, ctrip.com) </li></ul>
Status of Internet Usage in Mainland China <ul><li>Report by CNNIC (Jan. 2010) </li></ul><ul><ul><li>384 million Chinese internet users. </li></ul></ul><ul><ul><li>Big jump in usage of social networking sites. </li></ul></ul><ul><ul><li>Huge increase in the number of internet users that access the internet via mobile devices (about 46% of all net users). </li></ul></ul><ul><ul><li>Value of online shopping transactions doubles! </li></ul></ul>
What’s new <ul><li>the categories with the highest number of users were online music, online news and search engines. </li></ul><ul><li>Implication: </li></ul><ul><ul><li>“ due to the low-cost of search engine marketing, highly targeted customers, and their advantage of bringing easily seen marketing results, they are becoming more-and-more trusted by advertisers.” (comScore) </li></ul></ul>
What’s new <ul><li>108 million online shoppers in China pushed the total value of online shopping transactions in China to 250 billion Yuan (about 36.5 billion USD) – double what it was in 2008! </li></ul><ul><li>Implications: </li></ul><ul><ul><li>Hong Kong businesses need to embrace the e-commerce trends in China (e.g., Taobao Hong Kong street) </li></ul></ul>
What’s new: 176 million users in China’s social networking sites, local players rule
Ho to Grab China’s Social Shoppers <ul><li>Chinese consumers are using multiple sources of online information to learn about products. </li></ul><ul><li>Netpop found that user-generated content, including consumer reviews, forum discussions and blog entries, influence 58% of purchase decisions in China, </li></ul><ul><ul><li>compared to 19% in the United States </li></ul></ul>
Firm Strategies: Monitor or Contain the Negatives <ul><li>To keep tabs on consumers' conversations, companies can use software to sift through blogs, BBSs and other social network channels to find out what people are saying about their products. </li></ul><ul><li>Monitor negative word-of-mouth and take measures to prevent public relations crises from breaking out on the Internet. (Starbucks in the Forbidden City) </li></ul>
Firm Strategies: Promote the Positives <ul><li>Apple launched a marketing campaign on the popular social networking site for university students called RenRen . </li></ul><ul><li>“ Apple College,” a page providing information about its products, tutorials for switching from PCs to Macs and monthly prizes for members. </li></ul><ul><li>RenRen members were also encourage to become “iPod Spotters” and use their iPods to upload photos they take with their iPods to share with an online photo community. </li></ul>
Advices for Hong Kong Businesses <ul><li>Change in the mindset of corporate market departments ---new forms of social media encourage a two-way dialogue where consumers 'talk back‘ and share their impressions about brands. </li></ul><ul><li>Monitoring consumer conversations is only the beginning, join the conversations </li></ul><ul><li>adapting online strategies to local tastes is critical </li></ul>
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