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Innovation and the
Earned Brand
China
The Earned Brand | Edelman 2015 | pg 2
Four insights:
People believe in
the promise of
innovation.
Consumer
acceptance of
...
The Earned Brand | Edelman 2015 | pg 3
What is innovation?
A re-imagination of categories, products, services, operations,...
And yet the Chinese consumers feel the pace
of business innovation is too fast
Q349-351. Below are a number of statements....
The Earned Brand | Edelman 2015 | pg 5
And what can the
rest of us learn
from this?
How do consumers see innovation?
What ...
The Earned Brand Methodology
Timing
April – May 2015
Quantitative Online Survey
10 countries: U.S., Mexico, Brazil,
France...
The Earned Brand | Edelman 2015 | pg 7
People believe in the
promise of innovation.
Insight 1
Q5P1: Please select the statement from each group that best represents how you feel.
(Innovation is just an overused term,...
In China, consumers believe that business has
the biggest role in finding the next big thing
Q15. Where do you think the n...
They believe that brand innovation should have
big goals with societal impact
Q14. What do you think the role of innovatio...
57% 54%
37%
24%
14% 14%
47%
40%
47%
43%
20%
35%
Technology Mobile Energy Healthcare Food and beverage Education
They want ...
And they question your motives
66%
70%
65%
69%
67%
61%
65% 65%
67%
62%
65%
Global Australia U.K. U.S. Japan France Germany...
The Earned Brand | Edelman 2015 | pg 13
Insight 2
Consumer acceptance
of brand innovation
cannot be bought.
It must be ear...
The stakes:
Because of their concerns, they’re not buying
Q27. Thinking about the below, please indicate which of the foll...
3 in 5 have privacy concerns
Privacy concerns are especially strong in
Germany, the U.K., the U.S. and Australia.
Q22. Thi...
1 in 3 are concerned about
having to be always on
Germany and Brazil are most concerned;
Japan and China are less so.
Q22....
1 in 3 have security
concerns
Security concerns are highest in Japan
and the U.S., and less of an issue in
China.
The Earn...
And the majority have
concerns about the
impact on the environment
Environmental concerns are global,
but strongest in Eur...
The Earned Brand | Edelman 2015 | pg 19
Insight 3
While the promise of
innovation inspires,
people first need
to be reassu...
Consumers are twice as likely to want to be
reassured than inspired by a brand
Q35: When a brand tells me about something,...
We may be innovating,
but we are failing them as marketers
The Earned Brand | Edelman 2015 | pg 21
say brands are not movi...
They feel like brands are shouting at them.
In most markets, what brands say doesn’t feel real
Q21: Please indicate how mu...
The Earned Brand | Edelman 2015 | pg 23
Insight 4
“I rely on my peers to
reassure me. Because
their experience is
my evide...
We’ve always known that peers provide
recommendations, but today peers also help
convert purchasers
Q41: Thinking about th...
The channels consumers rely on to be reassured are
peer-to-peer, rather than brand-to-consumer
When millennials want to le...
Brands win if they power the peer conversation
“Our unique
asset is our host
community.”
Nathan
Blecharczyk,
founder of Ai...
The Earned Brand | Edelman 2015 | pg 27
The Earned Brand | Edelman 2015 | pg 28
The Earned Brand | Edelman 2015 | pg 29
The Earned Brand | Edelman 2015 | pg 30
Recommendation of
four brand behaviors
Two-thirds of consumers are undecided about
innovation. What do they need from brands?
Last mover First mover
8% 15%
Perce...
What undecided consumers need
from brands when it comes to innovation
The Earned Brand | Edelman 2015 | pg 32
Statistical ...
The 4 brand behaviors
that address consumer needs around innovation:
Have a
Purpose
Inform
and Educate
Make
your Mark
Live...
Inform
and Educate inform transparently so that
you can educate consumers
and help them make choices
The Earned Brand | Ed...
Have a
Purpose
operate with purpose
to show how you fit into
the bigger picture and
are an active participant
in society
T...
Make
your Mark
make your mark by
doing something unique
or differentiating that is
worthy of attention
The Earned Brand | ...
Live your
Character
live with character that is
true to your brand and has
a personality that consumers
can buy into
The E...
The Earned Brand | Edelman 2015 38
Case Study:
The Freshest Orange Juice
The Earned Brand | Edelman 2015 39
Case Study:
Samsung Safety Truck
Case Study:
Adobe Photoshop
Murder Mystery
The Earned Brand | Edelman 2015 41
Case Study:
Dove #Choosebeautiful
Recommendation: Four brand behaviors
The Earned Brand | Edelman 2015 | pg 42
Statistical analysis of consumer groupings ba...
The Earned Brand | Edelman 2015 | pg 43
Thank you.
Innovation and the
Earned Brand
The Earned Brand | Edelman 2015 | pg 44
For new business requests, please contact :
Sanjay Nair, Managing Director, Edelma...
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Edelman - Innovation China

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Innovation and earned media in China.

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Edelman - Innovation China

  1. 1. Innovation and the Earned Brand China
  2. 2. The Earned Brand | Edelman 2015 | pg 2 Four insights: People believe in the promise of innovation. Consumer acceptance of brand innovation cannot be bought. It must be earned. While the promise of innovation inspires, people first need to be reassured. “I rely on my peers to reassure me. Because their experience is my evidence.” 1 2 3 4
  3. 3. The Earned Brand | Edelman 2015 | pg 3 What is innovation? A re-imagination of categories, products, services, operations, models, design, etc. that create more value, for the brand and for consumers.
  4. 4. And yet the Chinese consumers feel the pace of business innovation is too fast Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, China. (2015 Edelman Trust Barometer) 19% TOO FAST The Earned Brand | Edelman 2015 | pg 4 JUST RIGHT 21% 59% TOO SLOW 28% 19% 51%
  5. 5. The Earned Brand | Edelman 2015 | pg 5 And what can the rest of us learn from this? How do consumers see innovation? What are the factors that stop consumers accepting and embracing innovations? What are consumers’ real feelings about innovation?
  6. 6. The Earned Brand Methodology Timing April – May 2015 Quantitative Online Survey 10 countries: U.S., Mexico, Brazil, France, Germany, U.K., China, Japan, India and Australia 10,000 respondents, nationally representative of age, gender, and region based on most recent country status data Mobile Diaries 25 millennials, with them on their mobiles, for 2 weeks, in Brazil, U.K., India, China and the U.S. The Earned Brand | Edelman 2015 | pg 6
  7. 7. The Earned Brand | Edelman 2015 | pg 7 People believe in the promise of innovation. Insight 1
  8. 8. Q5P1: Please select the statement from each group that best represents how you feel. (Innovation is just an overused term, it’s not leading to anything) vs. (Innovation is essential for us today and it’s helping us to progress). Q5P4: Please select the statement from each group that best represents how you feel. (Innovation is making us more and more like robots) vs. (Innovation is opening the human spirit) 10-country global total and in China. The Earned Brand | Edelman 2015 8 Innovation inspires people “When you look at anything innovative, it will inspire you and make you feel more energetic.” Zhu X, 22, China 92% innovation opens the human spirit innovation is essential and it’s helping us to progress 77% 94% 90%
  9. 9. In China, consumers believe that business has the biggest role in finding the next big thing Q15. Where do you think the next big thing will come from? In China. The Earned Brand | Edelman 2015 | pg 9 BUSINESS INDIVIDUALS/ PEOPLE LIKE ME ACADEMICS/ UNIVERSITIES 15% 87% 45% 30% 79% 36%
  10. 10. They believe that brand innovation should have big goals with societal impact Q14. What do you think the role of innovation is for brands today and in the future? (in the future)10-country global total and in China. to improve society to push our thinking as a society 69% 66%63% The Earned Brand | Edelman 2015 | pg 10 agree that brand innovation needs to impact societyin9 10 73% 65% 71% to let us be one step ahead of other countries
  11. 11. 57% 54% 37% 24% 14% 14% 47% 40% 47% 43% 20% 35% Technology Mobile Energy Healthcare Food and beverage Education They want more innovation to come from traditional industries Q65: Thinking more specifically about the innovation in the products and services you use throughout your life, what industries do you see the most innovation in TODAY? Q66: … what industries do you want to see innovation in TOMORROW? In China. Percentage of China’s consumers who say they see innovation coming from each industry sector today, and who want to see it from each sector tomorrow: INNOVATION GAP 10 19 The Earned Brand | Edelman 2015 | pg 11 21 6 INNOVATION TODAY INNOVATION TOMORROW WANT LESS TOMORROW WANT MORE TOMORROW
  12. 12. And they question your motives 66% 70% 65% 69% 67% 61% 65% 65% 67% 62% 65% Global Australia U.K. U.S. Japan France Germany Brazil China India Mexico Q14. What do you think the role of innovation is for brands today and in the future? (today) 10-country global total and in China. The Earned Brand | Edelman 2015 | pg 12 consumers believe brands are innovating to make more money for the company in2 3 Global Australia U.K. U.S. Japan France Germany Brazil China India Mexican
  13. 13. The Earned Brand | Edelman 2015 | pg 13 Insight 2 Consumer acceptance of brand innovation cannot be bought. It must be earned.
  14. 14. The stakes: Because of their concerns, they’re not buying Q27. Thinking about the below, please indicate which of the following you feel is happening in the world today. … IMPACT ON PURCHASING DECISION 1 = Has no impact on what I buy … 4 = Makes me not want to buy something. In China. say they will not buy because of their concerns The Earned Brand | Edelman 2015 | pg 14 90% Privacy issues Being always on Security Environment
  15. 15. 3 in 5 have privacy concerns Privacy concerns are especially strong in Germany, the U.K., the U.S. and Australia. Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total and in China The Earned Brand | Edelman 2015 | pg 15 Privacy issues 58%
  16. 16. 1 in 3 are concerned about having to be always on Germany and Brazil are most concerned; Japan and China are less so. Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total and in China The Earned Brand | Edelman 2015 | pg 16 Being always on 36%
  17. 17. 1 in 3 have security concerns Security concerns are highest in Japan and the U.S., and less of an issue in China. The Earned Brand | Edelman 2015 | pg 17 Security 33% “Some back door issues may leak personal information, including personal banking details.” Yao, China Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total and in China
  18. 18. And the majority have concerns about the impact on the environment Environmental concerns are global, but strongest in Europe and Latin America. The Earned Brand | Edelman 2015 | pg 18 Impact on environment 52% “Technology and innovation bring convenience, but it brings problems, too. Cars change my life, but too many cars result in air pollution, traffic jams and parking problems.” Yao, China Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total and in China
  19. 19. The Earned Brand | Edelman 2015 | pg 19 Insight 3 While the promise of innovation inspires, people first need to be reassured.
  20. 20. Consumers are twice as likely to want to be reassured than inspired by a brand Q35: When a brand tells me about something, I want it to… “Reassure me of quality,” “Inspire me” 10-country global total The Earned Brand | Edelman 2015 | pg 20 people want to be REASSURED in2 3 people want to be INSPIRED in1 3
  21. 21. We may be innovating, but we are failing them as marketers The Earned Brand | Edelman 2015 | pg 21 say brands are not moving in the right direction in how they communicate in2 3 Q20: Thinking about change in the past 5 years, how do you feel the [ … ] industry has evolved in relation to the following factors: How brands in this sector…(communicate with me) / (listen to me) // (moving in wrong direction) 10-country global total.
  22. 22. They feel like brands are shouting at them. In most markets, what brands say doesn’t feel real Q21: Please indicate how much you agree or disagree with the following statements. (I’m getting bored/frustrated by constantly being told I need to upgrade/update the products I already have.) (Top 2 box) 10-country global total and in China. The Earned Brand | Edelman 2015 | pg 22 57% are bored/frustrated by constantly being told they need to upgrade/update 52%
  23. 23. The Earned Brand | Edelman 2015 | pg 23 Insight 4 “I rely on my peers to reassure me. Because their experience is my evidence.”
  24. 24. We’ve always known that peers provide recommendations, but today peers also help convert purchasers Q41: Thinking about the conversations you have online and offline with friends and other people like you about brands, products and services you purchase, what impact do they have on you? Build inspiration Push consideration The Earned Brand | Edelman 2015 | pg 24 8% 18% 18% 36% 41% 31% 30% 37% They get me They give me a sense community They suggest products/services They push me to try new things They make me trust the brand more They help me make decisions They help me overcome my concerns about the product / service They warn me about the risks The impact of online/offline conversations about brands with friends and other people like me: Moment of truth
  25. 25. The channels consumers rely on to be reassured are peer-to-peer, rather than brand-to-consumer When millennials want to learn about brand innovation, their go-to channels are peer-to-peer. The Earned Brand | Edelman 2015 | pg 25
  26. 26. Brands win if they power the peer conversation “Our unique asset is our host community.” Nathan Blecharczyk, founder of AirBnB Q36. How much do you agree or disagree with the following statements? in China. The Earned Brand | Edelman 2015 | pg 26 67% I trust a brand more if it encourages me and and other customers to review its products and services I trust a brand more if I find it easy to review its products and services 64% 82% 81%
  27. 27. The Earned Brand | Edelman 2015 | pg 27
  28. 28. The Earned Brand | Edelman 2015 | pg 28
  29. 29. The Earned Brand | Edelman 2015 | pg 29
  30. 30. The Earned Brand | Edelman 2015 | pg 30 Recommendation of four brand behaviors
  31. 31. Two-thirds of consumers are undecided about innovation. What do they need from brands? Last mover First mover 8% 15% Percent of respondents who fall into each consumer innovation typology: The Earned Brand | Edelman 2015 | pg 31 Methodology: Statistical analysis of consumer groupings based on their attitudes to brand innovation showed that 66% of consumers are open to innovation—but have concerns that need to be addressed before they will buy. They also have specific expectations for how brands must behave to address those concerns. Other consumers were either “first movers” (15%), “last movers” (8%), or resistant to innovation (11%). 66% Undecided Consumers
  32. 32. What undecided consumers need from brands when it comes to innovation The Earned Brand | Edelman 2015 | pg 32 Statistical analysis of consumer groupings based on their attitudes to brand innovation, and their risk concerns. Source: mobile diaries, qualitative groups and quantitative segmentation Reassure me about my personal concerns Inspire me by doing something new and different Show me how I can participate in your brand Reassure me about my societal concerns
  33. 33. The 4 brand behaviors that address consumer needs around innovation: Have a Purpose Inform and Educate Make your Mark Live your Character Reassure me about my personal concerns Inspire me by doing something new and different Show me how I can participate in your brand Reassure me about my societal concerns The Earned Brand | Edelman 2015 | pg 33 Brand Behaviors Source: mobile diaries, qualitative groups and quantitative segmentation
  34. 34. Inform and Educate inform transparently so that you can educate consumers and help them make choices The Earned Brand | Edelman 2015 | pg 34 Brand behaviors: •  Explain your motive for innovating. •  Address concerns about the social and environmental impacts. •  Engage and educate consumers across different channels and platforms. Consumer need: I am empowered by information. Give me all the details and let me go as deep as I want. To reassure me about my personal concerns Source: mobile diaries, qualitative groups and quantitative segmentation
  35. 35. Have a Purpose operate with purpose to show how you fit into the bigger picture and are an active participant in society The Earned Brand | Edelman 2015 | pg 35 Consumer need: I believe in progress— but not at the cost of hurting my community or compromising my values. Brand behavior: •  Be authentic. •  Show that you value human interaction and have respect for tradition and heritage. •  Add value beyond your product and service. To reassure me about my societal concerns Source: mobile diaries, qualitative groups and quantitative segmentation
  36. 36. Make your Mark make your mark by doing something unique or differentiating that is worthy of attention The Earned Brand | Edelman 2015 | pg 36 Consumer need: I like to be inspired by new ideas—as long as they really are new and different. Let’s solve a problem in a cool, creative way! Brand behaviors: •  Show how you stand out from the crowd. •  Offer engaging content that is timely, has resonance, and is entertaining. •  Spark peer conversations and debate on many channels with a clear and consistent brand voice. To inspire me by doing something new and different Source: mobile diaries, qualitative groups and quantitative segmentation
  37. 37. Live your Character live with character that is true to your brand and has a personality that consumers can buy into The Earned Brand | Edelman 2015 | pg 37 Consumer need: Brands can help me express my identity. I want to look smart, creative and connected. Brand behaviors: •  Be transparent when it comes to consumer privacy and sharing of data. •  Offer inspirational, exciting brand experiences in which consumers can participate. And show me how I can participate in your brand Source: mobile diaries, qualitative groups and quantitative segmentation
  38. 38. The Earned Brand | Edelman 2015 38 Case Study: The Freshest Orange Juice
  39. 39. The Earned Brand | Edelman 2015 39 Case Study: Samsung Safety Truck
  40. 40. Case Study: Adobe Photoshop Murder Mystery
  41. 41. The Earned Brand | Edelman 2015 41 Case Study: Dove #Choosebeautiful
  42. 42. Recommendation: Four brand behaviors The Earned Brand | Edelman 2015 | pg 42 Statistical analysis of consumer groupings based on their attitudes to brand innovation, and their risk concerns. Brand Behaviors Source: mobile diaries, qualitative groups and quantitative segmentation Have a Purpose Inform and Educate Make your Mark Live your Character
  43. 43. The Earned Brand | Edelman 2015 | pg 43 Thank you. Innovation and the Earned Brand
  44. 44. The Earned Brand | Edelman 2015 | pg 44 For new business requests, please contact : Sanjay Nair, Managing Director, Edelman Beijing (Sanjay.Nair@edelman.com) Sonny Shen, Managing Director, Edelman Shanghai (Sonny.Shen@edelman.com) For all other inquiries, please contact: Rannie Boydston, Senior Marketing Manager, Edelman China (Rannie.Boydston@edelman.com)

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