Big Idea 4: Understanding Digital China was delivered by Razorfish's Royce Lee on April 22, 2009, at the 9th Annual Razorfish Client Summit (#rzcs on Twitter).

1. Understanding Digital China
Royce Lee

2. The Multiple Faces of China
TIP #1
WHAT IT MEANS
TO MARKETERS
Keep in mind that
those top tier 1 cities
only account for less
10% of the total
internet population.
It is important to craft
your internet strategy
according to these
different consumer
needs.
Page 2© 2009 Razorfish. All rights reserved.

3. In China, Internet is equal to trust
TIP #2
TRUSTWORTHY MEDIA CHANNELS
Here is a list of different forms of communication. How much do you trust each of them?
Recommendations from friends and family
Consumer product review from website
Product labels on packaging
Expert product review from website
Consumer opinion in blogs
Independent reviews in publications
Consumer opinion on message boards
Consumer opinion in chat rooms
Manufacturers / brands websites
Email newsletters
Magazine ad
TV ads
Products/brands that appear in movies or within TV programs
Ads that appear on search engines
Newspaper ads
Radio ads
Page 3© 2009 Razorfish. All rights reserved.

4. Style or Culture? Why Portals look “busy” in China
TIP #3
WHAT IT MEANS TO
MARKETERS
Yes, it is not pretty, but it
is very functional and
practical. When
marketers try to build
their websites, they
should always balance
between the needs from
top cities and those from
less advanced ones (tier
1 and 2).
Remember, content is
still king for Chinese,
especially in text.
Page 4© 2009 Razorfish. All rights reserved.

5. Digital Measurement is Different due to Business Climate
TIP #4
WHAT IT MEANS TO MARKETERS
Be persistent. Keep asking your
agency to push publishers to
implement third party tracking, such
as Atlas. At least something basic,
like clicks. This little step actually
makes huge difference in your
marketing decision, but be ready to
have surprises
Page 5© 2009 Razorfish. All rights reserved.

6. Investing in Guanxi (Partnerships)
TIP #5
WHAT IT MEANS TO MARKETERS
Be open and creative. Understand how
your partners’ needs can give you some
advantage.
For instance, if you are from Levi’s, you
may offer the right for QQ to
“manufacture” virtual versionsof your
latest jeans to sell to members in
exchange formore advertising
dollarsand exposure.
This may explain why many Chinese
publishers prefer to give out inventory
as a “bonus” to their partners, instead of
aggressively selling.
Page 6© 2009 Razorfish. All rights reserved.

7. Consumers are Shopping Online
TIP #6
WHAT IT MEANS TO
MARKETERS
Many marketers are closely
monitoring thistrend, and
some have even started
doing their own eCommerce
experiments.
For instance, Nike launched
itsNikeiD in 2007, Nestle
plans to launch the first
eCommernce site for Dreyers,
and Dell has even built an
eShop in Taobao.
Page 7© 2009 Razorfish. All rights reserved.

8. Mobile is Bigger than the PC
TIP #7
WHAT IT MEANS TO MARKETERS
With the 3G launch in 2009, expect to see more mobile usage in China. Studies show that teenagers
are no longer checking their email regularly, instead they connect to their friends either through a
social network (like Kaixian) or mobile. Crafting a strategy where users live in the digital world is key.
Page 8© 2009 Razorfish. All rights reserved.

9. Search Beyond Google
TIP #8
WHAT IT MEANS TO MARKETERS
Search is important. While many marketers
are focusing on doing Paid Search,
youmay want to take a more “holistic”
approach in terms of a Search Strategy in
China.
Page 9© 2009 Razorfish. All rights reserved.

10. Social media as Validation
TIP #9
WHAT IT MEANS TO MARKETERS
Like Search, social media is going mainstream in China. Communities are actually welcome to
interactionwith brands, and often come up with good opportunities.
Page 10© 2009 Razorfish. All rights reserved.

11. Pay Attention or Get Replaced
TIP #10
WHAT IT MEANS TO MARKETERS
Branding is important, so marketers need to build their brand before others can copy their products.
Also, be really flexible and open, in order to succeed in China- or you will get duplicated and replaced.
Page 11© 2009 Razorfish. All rights reserved.

12. Thank You
Royce Lee
royce.lee@razorfish.com