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Digital Marketing in China: The Middle Kingdom, The Digital Kingdom

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Today at Trusted Conf. we’re talking about Digital Marketing in China: The Middle Kingdom, The Digital Kingdom, with Erran Su, PPC Specialist.

We'll cover:
*Why China?
*Digital Landscape in China
*Top Trends in Digital China
*How to Win in China

Published in: Marketing
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Digital Marketing in China: The Middle Kingdom, The Digital Kingdom

  1. 1. Digital You Can Trust | Digital In China PRESENTER: Erran Su DATE: Sept 2019
  2. 2. Digital You Can Trust | Erran Erran Su PPC Specialist About me: ● Before 2006 - the very south of China ● 2006-2011- Perth, AU/Vermont, USA ● 2012 - present - Sydney, AU/Vienna, Austria ● Former Accountant ● Coffee addict ● Finance Enthusiasts
  3. 3. Digital You Can Trust | The Middle Kingdom, The Digital Kingdom
  4. 4. Digital You Can Trust | Why China? Agenda Digital Landscape in China How to Win in China? Q&A Top Trends in Digital China
  5. 5. Digital You Can Trust | Why Do We Need to Talk About China?
  6. 6. Digital You Can Trust | Australia: 25.2million Shanghai: 26.32million That’s 1.8%of China Internet Penetration & Total Number of Users (2019)
  7. 7. Digital You Can Trust | Average income in China continues to rise at a fast pace, together with government push for “consumption upgrade”, there is enormous potential in this market. Source: Statista Forecast GDP per Capita
  8. 8. Digital You Can Trust | China is home to dynamic digital innovators and is a leading global investor in the latest technologies Source: McKinsey
  9. 9. Digital You Can Trust | Superapp Social +Shopping Live stream/ Short Video Successful Chinese digital model are being copied worldwide
  10. 10. Digital You Can Trust | Massive volume of data generated, the size of population allows big scale R&D Strong policy support from the government for tech & innovation Consumers are increasingly well- off and sophisticated
  11. 11. Digital You Can Trust | What does the digital landscape look like?
  12. 12. Digital You Can Trust | You’ve heard of FAANG, now it’s time for…. Baidu Alibaba Tencent Toutiao Meituan Didi
  13. 13. Digital You Can Trust | Each of BAT TMD has built an ecosystem of their own
  14. 14. Digital You Can Trust | Search - Baidu still wins but plagued by poor experience Baidu is still the top search engine in China thanks to the exit of Google. However, lack of innovation and a series of scandal has cost popularity and trust of the platform. Traditional PPC ads are still important and effective but marketers have a wider range of options beyond search.
  15. 15. Digital You Can Trust | Search - Google is back in the game, officially…... Google is back in China, with new initiative to help domestic companies expand overseas.
  16. 16. Digital You Can Trust | Social - The superapp WeChat miracle continues WeChat hit 1 billion daily active user in 2019 and continues to grow. The platform has become an essential tool for marketers to promote products & service through paid news feed, sponsored content and mini-program.
  17. 17. Digital You Can Trust | E-Commerce - There is no place like Alibaba China’s E-commerce sector has grown exponentially over the last 10 years and Alibaba is by far the biggest player in the space with over 10 million Annual Active Sellers over 300 million number of orders per year. Alibaba annual gross merchandise volume
  18. 18. Digital You Can Trust | Short Video - What’s your TikTok strategy? TikTok has seemingly exploded from nowhere to become one of the most downloaded apps in the world. The app allows user to upload up to 15-seconds long videos and targets a younger generation. Recently, the app hit 400 million MAU in China. ● They can create their own channel and upload relevant videos through their channel ● They can work with influencers to spread content to a broader audience ● They can pay to advertise on TikTok How can brands market on TikTok?
  19. 19. Digital You Can Trust | KOL - From Search-based Shopping to Recommendation-based Shopping Influencers are more effective at driving purchases and are becoming the most popular advertising method. KOL, also known as an influencer, is the most preferred marketing format by advertisers. Li Jiaqi, a beauty vlogger, who has 24 million followers on TikTok and 4 million followers on Taobao livestream, holds a record of selling 15,000 lipsticks within 5 minutes.
  20. 20. Digital You Can Trust | What’s happening in Digital China?
  21. 21. Digital You Can Trust | China is racing ahead with 5G revolution:
  22. 22. Digital You Can Trust | China is going big on AI Paying subway fare: At the Futian station in Shenzhen, instead of presenting a ticket or scanning a QR code on their smartphones, commuters can scan their faces on a tablet-sized screen mounted on the entrance gate and have the fare automatically deducted from their linked accounts. Shopping: JD.com’s 3D Fitting Room gives shoppers the ability to try on clothes through a customised avatar with similar hair, face and body dimensions. Browsing content: Chinese news aggregator Toutiao recommends personalised news articles to people with different interests based on its AI-driven algorithms. Customized recommendations: AI-driven recommendation engines offer users products and content tailored to their preferences. Access control: Facial recognition and machine learning technology grant users faster and more reliable access to certain places, resources and information.
  23. 23. Digital You Can Trust | New Retail - Online + Offline Led by Alibaba, “New Retail” which combines online and offline shopping experience is starting to emerge across China in ways that promise big gains for consumer product companies that act decisively and systematically while causing others to lag behind.
  24. 24. Digital You Can Trust | How to win in China?
  25. 25. Digital You Can Trust | China is a lucrative market, but it’s increasingly difficult to crack Don’t be lazy, localise Do the research, talk to locals and don’t make assumptions Stay on top of the latest trends & development Know where your consumers are, both online and offline
  26. 26. Digital You Can Trust | A localised name, logo, experience and even business model can define your brand’s success
  27. 27. Digital You Can Trust | It’s a vast but complicated market. It’s hard to understand it from the outside, so don’t just make assumptions. Chinese consumers are all the same Chinese love all foreign brands Chinese don't care about privacy Chinese are no longer poor
  28. 28. Digital You Can Trust | The spending power, shopping habits, taste and favourite digital platforms can vary greatly depending on who your target customers are. Living in: Shanghai Occupation: Management Consultant Salary: CNY 40,000 /month Shops on: Taobao (Alibaba) Favorite brands: Channel, Starbucks, Lululemon Living in: Zhengzhou Occupation: Office Admin Salary: CNY 45,00 /month Shops on: Pinduoduo Favorite brands: Prefer value over brand
  29. 29. Digital You Can Trust | The speed of change in the digital landscape and consumer trends in China is so fast that things might have changed when this presentation ends. Luckily, there are more resources than ever for us to stay on top of the trends. Consultancy Podcasts Blogs
  30. 30. Digital You Can Trust | Thank you!

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