Eye on china – Andrea Fenn


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Slides from the event: "Digital In The Round: An eye on China", February 21, 2013 – Milan.

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Eye on china – Andrea Fenn

  1. 1. An eye on ChinaSocial Media communication in the Middle KingdomMilan/Shanghai, February 21, 2013
  2. 2. Agendawho we arehow it all startedwhy you should carelooking ahead
  3. 3. Who we are
  4. 4. Andrea Fenn – 安仁 Strategy Director – Fireworks Andrea helps brands build communication strategies on Chinese social media. As one of the early researchers of Chinese social media, he was one of the founding members of the Asia Pacific social media team at Ogilvy in Hong Kong. Now based in Shanghai, he crafted and executed social media strategies for brands of thelikes of Ford, Hennessy, Trussardi, Armani, Ferragamo, Bulgari, and more.Prior to his work at Fireworks, he was a research staff specialized in Chinese social media atLeiden University, and a journalist for CNN and China Daily among others.Andrea comes from Florence, Italy, lives in China since 2005 and is fluent in written andspoken Mandarin Chinese.
  5. 5. How it all started
  6. 6. Photo of backwards China!
  7. 7. Photo of wangba!
  8. 8. Photo of SARS!
  9. 9. Photo of automobile forums!
  10. 10. Chinese are not on traditional media anymore PRINT VOLUMES43% OF CONSUMERS DECREASE BY 10.4%WATCH LESS TV (between 2008 and 2010) A YEAR (to go down 20% by 2014) Sources: CTR China, DCCI 2010
  11. 11. And increasingly more online10,000,000 (new Inter net users per month) Sources: CNNIC 2012
  12. 12. With 54.7% increase in 2012, now 58.7% ofChinese internet users have weibo MORE PEOPLE USE WEIBO (than live in the United States) Sources: CNNIC 2013
  13. 13. And there is already a new star in the socialmedia sky 300m WEIXIN USERS (up by 100m in just four months) Sources: Tencent Tech 2013
  14. 14. Why you should care
  15. 15. Virtual media, real impact: how social mediaimpacts perception, preference and decision of Chinese consumers
  16. 16. What the Chinese trust “”   15% 45% Recommendation from Consumer review on a person in a bar social website Source: Global Web Index, 2010
  17. 17. Chinese are most eager to look for corporateinformation onlineUsers joining Social Networks for information about brands and products Source: TNS Digital Life Report 2010
  18. 18. Chinese social media are a powerful way to reachout to audiences 77% of Chinese web users believe a social mediapresence makes a brand more attractive Sources: CNNIC 2012
  19. 19. And to obtain a tangible return After a positive brand experience online 13% Consider purchasing product 18% Purchase product 42% More aware of product Recommend product to others 27% Source: OgilvyOne Connected Report 2010
  20. 20. 230,000+ (cor porations have a registered Sina Weibo page) Sources: Sina 2013
  21. 21. From the most diverse industries Sources: Sina 2012
  22. 22. 你呢?(and you?)
  23. 23. Car brands and “social media homework” My new steering wheel, exactly like the 2.0l version! I attach here the fuel consumption table of Just added xenon lights, my little Focus… looking good! Sources: real online conversations, April 2011
  24. 24. Bridge the gap: cultural differences make yourbrand obscure to China, but social media can help you
  25. 25. Images of fake brands
  26. 26. Images of fake brands
  27. 27. Images of fake brands
  28. 28. Listening to Chinese audience can teach youunexpected things The difference between Armani and Zegna? That Armani is a real Italian brand, while Zegna is a brand created by Wenzhounese and sold as Italian. To be frank, there are In China, LV bags are so in too many LV fakes, bad taste that even cleaning which does not make me ladies own at least one. look good even if I carry a real one. Sources: real online conversations, May 2012
  29. 29. And sometimes misperception can take anuncontrolled extent
  30. 30. And a more tailored communication strategy toyour specific audience From Zero…   …to Hero. 183m media impressions on Sina Weibo at the Beijing Fashion Show in May 2012  
  31. 31. E-luxe: luxury consumption on social media, and how premium brands can benefit from it
  32. 32. Social media is increasingly a gentrified platform 大学生 3.3% 2.7% 3.6% IT行业 4.2% 27.0% 私营业主 6.0% 制造业 金融房产 67% of Weixin users 6.3% 政府部 电信网络 6.6% 24.0% 服务行业 传媒娱乐 are white collars 7.2% 能源采矿 9.1% 农林化工 Weibo users earn 30% than the average chinese Source: Tencent 2012, Sina 2012
  33. 33. 40% of Chinese millionaires use microblogs and 33% of them have more than 1,000 FOLLOWERS Source: GroupM Hurun Media usage report 2012
  34. 34. 80% of luxury consumers are under 4585% of them already engage with premium brandsonline
  35. 35. An increasing number of premium brands usessocial media in China Sources: L2 Luxury Report 2011
  36. 36. With visible effects on their business Burberry spends 60% of its marketing budget in digital in China. In 2011, Burberry sales in China went up 30%. In a BBC interview, CEO Angela Ahrendts said: “You have to be totally connected with anyone who touches the brand, if you don’t do that – I don’t know what your business model is in five years”
  37. 37. Burberry Case Study: championingcommunication in China through social media
  38. 38. Burberry Case Study: championingcommunication in China through social media
  39. 39. Looking ahead
  40. 40. Trendcatching: What will happen in 2013
  41. 41. Chinese social media are dominated by localplayers Sources: Ogilvy 2012
  42. 42. And will continue to be in the near future The War of the Wei Weibo   Weixin  • One-to-many communication with the • One-to-one communication withgeneral public individual customers • Only able to share short messages and • Able to share longer messagesnews • Narrow but precise fan base; fans can• Can gather large fan base share more information with the brand
  43. 43. Companies that localize their communicationwill be most successful Smart group buying on Taobao: 305 cars sold in 89 minutes
  44. 44. Companies that localize their communicationwill be most successful Lamborghini’s one million dollar car on Taobao
  45. 45. But remaining true to oneself is key Nokia International   Nokia China  
  46. 46. E-commerce is continuing to grow China E-commerce sales volume, in billions US$ 2010 – 2016 (projection)   500 457.6 450 400 372.73 350 300 284.84 250 200 177.4 150 107.48 100 55.37 50 27.18 0 2010 2011 2012 2013 2014 2015 2016 Source: eMarketer, November 2012
  47. 47. But a monopolized market makes it hard forstandalone brands to succeedOne pre-purchase One e-commerce Just a few social media search platform   conglomerate   platforms for post- purchase discussion  
  48. 48. Closing the loop: Can Chinese social media impact real business?
  49. 49. How to usesocial media to impact the “last mile”?
  50. 50. E-commerce in China has a very strong socialcomponent 48.7% have known about online shopping sites via friends and family
  51. 51. And social commerce is quickly becoming realityin China
  52. 52. 56% of Chinese luxurypurchases are made abroad, but only 58% Chinesewebsites of internationalbrands have U.S. or Europeanstore locator
  53. 53. Using Weixin to close the social loopA long-term vision for premium brands to utilize Weixin to nurture their top audience,increase their loyalty towards the brand and ultimately encourage sales. Evaluate Trigger Purchase Post-purchase
  54. 54. How some might be doing it soonThe Weixin online stylist  
  55. 55. 有问题吗? (got questions?)
  56. 56. Contact me:email: af@fireworks.cn.comskype: andrew.fennweibo: andreafenn