Presentation Tze Kiat Tan - BBDO


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Presentation Tze Kiat Tan - BBDO

  1. 1. Consumer Market in China
  2. 2. Happening China
  3. 3. The new China
  4. 4. The new China 1,000 new public toilets ready in BJ for Olympic
  5. 5. The new China 4,500 cars sold everyday
  6. 6. The new China Miss World 2007
  7. 7. Breaking Records Economically • Over the last 22 years, total annual growth exceeds 9% (2-3% in France, 4-5% in USA & 1% in Japan) • 2007 GDP grew by 11.4 percent reaching RMB24.66 trillion (US$3.52 trillion) • 2008(Q1) grew at 878.4US $ billions, forecast at 9.9% • The growth rate is not forecast to slow before 2020 Source: the website of National Bureau of Statistics of china
  8. 8. Rapid Growth 1990 2007 3 CCTV channels 16 CCTV channels Less than 1,000 local TV channels 2,700 local TV channels None provincial satellite stations 32 provincial satellite stations 110 national newspapers 220 national newspapers <1,000 local newspapers 1,835 local newspapers 270 radio stations 282 radio stations 2,800 consumer magazines 9,000 consumer magazines 140 Mandarin websites 843,000 Mandarin websites 20,000 of OOH media vendors 125,000 of OOH media vendors Highest CCTV bid 26.6 million (1994) Highest CCTV bid 420 million Advertisers with >100M budget - 4 Advertisers with >200M budget - 112
  9. 9. Explosive Web Growth 53% growth in 07 online users vs 06 210mil users (16% of population) 163mil access through broadband 50mil are mobile netizen 49.3mil bloggers – Online users spend average 16.2hrs / week online Data as of Feb’08 from OMD China
  10. 10. China Mobility • World largest mobile phone owners - 565mil owner 98% ownership in Urban Growth in usage application, such as WAP, Online, • Video , GPRS & Email where the current users base at 8mil • Supplement and compliment online/TV as source for news/entertainment • Increasing media (print) providing wap version Data as of Feb’08 from OMD China
  11. 11. WHO
  12. 12. Total Population of 1.30 billion From 22 provinces, 4 municipal cities, 5 autonomous regions and 2 special administrative regions More than 80 dialects Different races, climates and degree of economic development
  13. 13. the average “Chinese Consumer” does NOT exist
  14. 14. the “Tier 1 Consumer” the “Tier 2 Consumer” does NOT exist does NOT exist
  15. 15. There still are Chinese People There are trends which we can Feel, See and Track
  16. 16. Patriotism
  17. 17. (L) China blooms 2008 • When the outside world criticism on the Tibet situation, young Chinese are displaying their anger and patriotism online through a campaign using Microsoft's MSN China homepage • More than 10M Chinese worldwide uses the red heart to express their love for China and to support Beijing's Olympic Games • This campaign is still going on
  18. 18. Earthquake 512 • Olympic Torch Relay was delayed for 3 days; TV station logos and online media limit their displays to black and white. Online advertisements removed, cheerful TVC’s scaled down. • Philanthropy kick-started • Nationalist sentiment further fuelled • Open questioning of which companies are stepping up ; e.g.,王老吉; “Metal Rooster”
  19. 19. McDonalds Under Attack, People Are Unhappy About Its Donation Source:
  20. 20. Boycotts McDonalds Source:
  21. 21. Big M Faces The Patriots Source:
  22. 22. Implication • The impact of social network in China (largest in the world) is powerful • Strong among the young generation • Making how to seed and manage messages in this space essential but difficult Carefully watch out on patriotism and nationalism pride
  23. 23. CASE REFERENCE Toyota 2003
  24. 24. CASE REFERENCE Big M 2005 Big M
  25. 25. Self - expression
  26. 26. The Shift In Authority user user user user user user
  27. 27. The old authority model has changed Consumers now have the power
  28. 28. This impact is global The changes are global changes But nowhere are the changes more pronounced than in China
  29. 29. So what are the implications of the new empowered and self – expressive consumers for marketing and brands?
  30. 30. As a brand, you must be willing to let go of your authority and allow the consumers to own your brand
  31. 31. Pepsi Creative Challenge
  32. 32. Empowerment
  33. 33. ▪ China is the 3rd largest global market for luxury goods after Japan and the US ▪ The annual sales of luxury products is estimated to grow 20% till 2008 and then 10% till 2015 when sales will exceed USD 11.5 billion ▪ Chinese luxury consumers are between age of 20 to 40 while those in the west are between 40 to 60. ▪ Luxury car sales are rising at twice the pace of the overall car market. Currently at c.210,000 units the number of luxury cars is forecast to be 800,000 by 2014* Source: TNS survey, Oct. 2007; Luxury brands in China, KPMG, Nov. 2007
  34. 34. Spending Power Shopping and beauty are the largest areas of spending – Increase of 39% from 2006 to 2007 – Housing necessity comes in second to beauty – Other areas of expenditure  Self fulfillment  Learning  Social activities  Evening fun (restaurants, bars)  Health and body (yoga, health clubs, spas)  Children (educational expenses)
  35. 35. Implication • Chinese today (especially the young adult) KNOW themselves, CARE about themselves, RECOGNIZE themselves, EXPRESS themselves, INSIST on themselves, and REWARD themselves • The anxiety of being left behind is a fierce motivation Thus, building brand relationship is important
  36. 36. CASE REFERENCE Branding ad? This CNY, Chinese saw a Hit back shocking ad; The TVC • They have forgotten about the taste of Chinese basically says the following consumer today and the power of Chinese consumer online, after the launch of this series of ads, quot;Hengyuanxiang, Yang Yang interviewed 57,505 internet user about this ad, Yang!quot; (恒源祥,羊羊羊!) herewith the result: slogan by looping it 12 times for every animal in the • 88.53% felt disgusted with the ad Chinese Zodiac. • 78.94% felt that ad like this will damage the brand image • 74.34% said they will never want to be associated or buy the product
  37. 37. To communicate with them Not guideline but suggestions
  38. 38. Understand their Culture Don’t blindly adapt
  39. 39. CASE REFERENCE 不怕生坏命最怕改错名 •维体 Wei Ti in Mandarin literarily means “Vitamin Body” •However, in Cantonese it sounds like “Yi Ti” which means dead body
  40. 40. Surprise them, show them something new An average consumer sees about 400 messages a day - they have a Phd. in advertising
  41. 41. CASE REFERENCE • To have a WOW effect • Engage them, they will buzz it for you • Should always be fun with light sense of humor  • Drive their curiosity. Draw them to you • Should speak to them with the same language • Make your product a part of the brand 