This document provides an overview of key considerations for selling to Chinese consumers. It discusses how China's market is large and complex, with significant regional differences. Some key points made include:
- By 2025, China will have over 200 cities with over 1 million people, vastly more populated than many countries.
- Chinese consumption is growing rapidly, especially for consumer goods. Chinese consumers increasingly prefer global brands.
- Understanding regional differences within China is important, as consumer preferences vary significantly between north and south China.
- Social media has a huge influence on brands in China. Any issues can quickly spread online.
- To be successful in China, companies need a deep understanding of the market through extensive local insights and research
The document discusses the Company's financial results for 1Q12. Net revenue increased 16.4% to R$161.4 million, while gross profit grew 19% to R$67.2 million. EBITDA was R$14.7 million, but excluding a non-recurring expense would have been R$22.7 million. Net income totaled R$10.9 million or R$16.1 million excluding the non-recurring impact. The company saw strong growth in owned stores and franchises as well as its brands, with an emphasis on expanding its distribution channels.
The document summarizes a meeting between TIM Brasil and investors in September 2012.
1) TIM Brasil's mobile business revenue grew 11% while Brazilian GDP grew only 1.9%, showing that mobile is driving economic growth.
2) Fixed to mobile substitution continues to impact fixed line incumbents, benefiting the mobile segment. TIM's mobile revenue grew 7.9% in 2Q12 while fixed revenue declined for competitors.
3) TIM's 2Q12 results met guidance, with total revenue up 7% and EBITDA up 6%. Revenue was impacted by MTR cuts but growth was driven by prepaid and data. Fiber deployment
This document provides an analysis of the Auroch Portfolio for August 2010. It summarizes the performance of various asset classes and funds, showing that Auroch portfolios outperformed all asset classes for the quarter ending June 2010. It then describes the Alpha strategy, noting it uses macro indicators to overweight sectors, focuses on business outperformance, and tends to invest in dominant companies exhibiting a competitive advantage. Charts show the Alpha strategy outperforming the Nifty index since December 2009.
A framework for social media and corporate strategyKantar Media CIC
1) The document presents a framework for using social media for corporate strategy, covering areas like insight, inspiration, innovation, engagement, and evaluation.
2) It provides examples of how to gain insights from social media on topics like industry trends, purchase decisions, product attributes driving buzz, and influencer mapping.
3) The framework also covers how to plan social media campaigns for areas like inspiration, innovation, execution of campaigns and launches, and measuring campaign performance.
This document discusses the impact of a brand identity strategy on consumer perceptions. It begins with an introduction explaining the importance of understanding how consumers perceive brands. The research aims to determine the impact of a specific brand's identity strategy on shaping consumer perceptions. The objectives are to assess any differences between the brand image as perceived by consumers and the brand identity envisioned by the company's strategy. Qualitative research methods, including focus groups and an open-ended questionnaire, are used to explore consumer perceptions and analyze the impact of the brand's identity strategy. The results are then used to identify any gaps between current perceptions and the strategic identity, and provide recommendations to better align the two.
Chris Taylor, Ofcom, Consumer presentationdcmsdigital
The document discusses trends in communications services and their implications. It notes that consumers are accessing services in new ways like bundling, using smartphones for longer contracts, and accessing the internet on different devices. Overall, consumers are getting more for less as average monthly spending is decreasing while usage increases. Looking ahead, the trends may lead to more targeted pricing, new services from various providers, and essential services moving online. This could impact competition, privacy, and digital inclusion. Regulators may need to address questions around equivalent treatment of bundled services, jurisdiction over new providers, data protection, an "open internet," and ensuring access to essential online services.
Eletropaulo reported strong financial results in the 2nd quarter of 2005. Net income increased significantly to R$136.8 million compared to a loss in the previous quarter, due to higher operating revenue and lower net financial expenses. Revenue grew due to a tariff adjustment and the completion of a tariff review from 2003. The company also issued bonds of R$474 million in the international market and had its credit rating upgraded.
5 important memes for the digital advertising industryEric Picard
This document discusses 5 important memes for the digital advertising industry.
1. The power base in the advertising ecosystem has shifted due to media fragmentation, with buyers (large agencies) now driving the market due to their consolidation and control over most advertising spend.
2. Market complexity is driving automation to decrease the cost of media buying, selling, and management as agencies can no longer rely on billable hours to manage the fragmented digital landscape.
3. Market inefficiency has created arbitrage opportunities for ad exchanges and networks to capture unsold inventory in real-time and reduce risk.
4. Consolidation is imminent in the hundreds of vendors in the ad tech ecosystem, with a few large platform stacks
The document discusses the Company's financial results for 1Q12. Net revenue increased 16.4% to R$161.4 million, while gross profit grew 19% to R$67.2 million. EBITDA was R$14.7 million, but excluding a non-recurring expense would have been R$22.7 million. Net income totaled R$10.9 million or R$16.1 million excluding the non-recurring impact. The company saw strong growth in owned stores and franchises as well as its brands, with an emphasis on expanding its distribution channels.
The document summarizes a meeting between TIM Brasil and investors in September 2012.
1) TIM Brasil's mobile business revenue grew 11% while Brazilian GDP grew only 1.9%, showing that mobile is driving economic growth.
2) Fixed to mobile substitution continues to impact fixed line incumbents, benefiting the mobile segment. TIM's mobile revenue grew 7.9% in 2Q12 while fixed revenue declined for competitors.
3) TIM's 2Q12 results met guidance, with total revenue up 7% and EBITDA up 6%. Revenue was impacted by MTR cuts but growth was driven by prepaid and data. Fiber deployment
This document provides an analysis of the Auroch Portfolio for August 2010. It summarizes the performance of various asset classes and funds, showing that Auroch portfolios outperformed all asset classes for the quarter ending June 2010. It then describes the Alpha strategy, noting it uses macro indicators to overweight sectors, focuses on business outperformance, and tends to invest in dominant companies exhibiting a competitive advantage. Charts show the Alpha strategy outperforming the Nifty index since December 2009.
A framework for social media and corporate strategyKantar Media CIC
1) The document presents a framework for using social media for corporate strategy, covering areas like insight, inspiration, innovation, engagement, and evaluation.
2) It provides examples of how to gain insights from social media on topics like industry trends, purchase decisions, product attributes driving buzz, and influencer mapping.
3) The framework also covers how to plan social media campaigns for areas like inspiration, innovation, execution of campaigns and launches, and measuring campaign performance.
This document discusses the impact of a brand identity strategy on consumer perceptions. It begins with an introduction explaining the importance of understanding how consumers perceive brands. The research aims to determine the impact of a specific brand's identity strategy on shaping consumer perceptions. The objectives are to assess any differences between the brand image as perceived by consumers and the brand identity envisioned by the company's strategy. Qualitative research methods, including focus groups and an open-ended questionnaire, are used to explore consumer perceptions and analyze the impact of the brand's identity strategy. The results are then used to identify any gaps between current perceptions and the strategic identity, and provide recommendations to better align the two.
Chris Taylor, Ofcom, Consumer presentationdcmsdigital
The document discusses trends in communications services and their implications. It notes that consumers are accessing services in new ways like bundling, using smartphones for longer contracts, and accessing the internet on different devices. Overall, consumers are getting more for less as average monthly spending is decreasing while usage increases. Looking ahead, the trends may lead to more targeted pricing, new services from various providers, and essential services moving online. This could impact competition, privacy, and digital inclusion. Regulators may need to address questions around equivalent treatment of bundled services, jurisdiction over new providers, data protection, an "open internet," and ensuring access to essential online services.
Eletropaulo reported strong financial results in the 2nd quarter of 2005. Net income increased significantly to R$136.8 million compared to a loss in the previous quarter, due to higher operating revenue and lower net financial expenses. Revenue grew due to a tariff adjustment and the completion of a tariff review from 2003. The company also issued bonds of R$474 million in the international market and had its credit rating upgraded.
5 important memes for the digital advertising industryEric Picard
This document discusses 5 important memes for the digital advertising industry.
1. The power base in the advertising ecosystem has shifted due to media fragmentation, with buyers (large agencies) now driving the market due to their consolidation and control over most advertising spend.
2. Market complexity is driving automation to decrease the cost of media buying, selling, and management as agencies can no longer rely on billable hours to manage the fragmented digital landscape.
3. Market inefficiency has created arbitrage opportunities for ad exchanges and networks to capture unsold inventory in real-time and reduce risk.
4. Consolidation is imminent in the hundreds of vendors in the ad tech ecosystem, with a few large platform stacks
Cia Hering presented operational and financial results for 3Q07, highlighting a 22.2% increase in domestic market gross revenue. Same-store sales grew 30.6% at owned Hering Stores and 20.7% at franchises. EBITDA was up 17% in August-September over the prior year. The company opened 5 new stores in 3Q07 as part of its expansion plan and saw a strong increase in stock market indicators as shares rose 189% over the period. Cia Hering also outlined its business strategy, which includes launching a Hering Store credit card and hiring new executives to support growth initiatives.
This presentation provides an overview of Cia. Hering's operational and financial performance in 4Q07 and full year 2007. Some key highlights include revenues and EBITDA exceeding targets, strategic initiatives around brand positioning, marketing, and store expansion, and continued strong growth in the stock market with increased trading volumes and market capitalization. The presentation also outlines the company's strategy and outlook, focusing on expanding its Hering store network, launching new products and financial services, and increasing marketing investments to drive further revenue growth.
The CMO Survey Highlights and Insights February 2012christinemoorman
The CMO Survey collects opinions from top marketers to predict market trends. The February 2012 survey was the eighth administration with 269 respondents. It asks questions about marketplace dynamics, firm growth strategies, marketing spending, performance, social media, jobs, organization, leadership, analytics, and more. Key findings include that marketer optimism for the US economy rebounded to its highest level in 3 years, optimism for firms' revenue growth exceeded that for the overall economy, and marketing budgets continue growing with B2B product firms expecting the most growth. Traditional advertising spending is expected to decline further.
The document discusses Cia. Hering's 4Q08 and full year 2008 operating performance. Some key highlights include gross revenue increasing 53.0% in the domestic market in 4Q08, with Hering brand sales rising 63.7%. For the full year, domestic market revenue grew 52.5% led by a 64.3% increase in Hering brand sales. The number of Hering stores increased by 27.1% in 2008, with same store sales growth of 32.4%. Adjusted EBITDA margin expanded to 31.6% in 4Q08 from 19.6% in 4Q07.
Information Inflation Can The Legal System Adaptlegalinfo
The survey of 126 Chief Legal Officers addressed plans to hire additional in-house lawyers or outside counsel. 49.2% plan to hire more in-house lawyers primarily in the US. 26.2% plan to increase use of outside counsel while 63.5% plan no change. 48.4% fired or considered firing a law firm, most often for poor quality legal work or mishandling critical matters. Outside counsel can improve relationships most by improving communication, responsiveness, project staffing and learning the client's business.
This document summarizes the proposed combination of Bank of America and MBNA. It highlights that the combined company would have the largest credit card portfolio in the US and worldwide, with significant scale, revenue opportunities, and financial strength. The transaction values MBNA at a 29% premium to its market value and 12.5 times its estimated 2006 earnings. The combination is expected to be modestly dilutive to Bank of America's earnings in 2006 but accretive by 2% in 2007, once cost savings of $850 million are fully realized.
This document discusses strategies for introducing the Lee Cooper brand into the Russian market. It analyzes economic and consumer spending trends in Russia, finding signs of recovery despite declines in GDP. Key retail channels for middle-income consumers are identified as shopping malls and boutiques. The most viable regions are said to be Central Russia and the Urals. Potential partners discussed include VF Corporation, Fiba Holding, and Jamil Co. Group. Major cities and retailers are evaluated for their suitability, with an emphasis on department stores and independent brands stores in major cities.
Social Media for B2B Technology Marketers (originally presented to Cisco's SMB global marketing team.) More social media and marketing content at http://gregverdino.typepad.com.
The cmo survey_highlights_and_insights-aug-2011_finalchristinemoorman
The survey found that marketer optimism for the overall U.S. economy reached its lowest point in two years, with an average rating of 55.6 out of 100. Most marketers (57.4%) said they were less optimistic about the economy compared to the previous quarter. However, marketer optimism for their own company's revenue prospects weakened less, with an average rating of 66.4 out of 100. While 51.4% saw no change in optimism for their company, 25.7% felt more optimistic and 22.8% felt less optimistic about their company's revenue prospects.
Promotional products are an effective marketing tool. Studies show that over 80% of people remember brands on promotional items they receive. These items are typically kept for 7 months or longer. Promotional products provide better cost per impression than traditional marketing channels. Receiving a promotional item can increase consumers' favorable perception of a business by up to 57%. Over 50% of consumers may do business with an advertiser after receiving a promotional item. Bags are very effective promotional items as they provide high exposure through a large number of impressions and are well-kept by consumers. Choosing a promotional item that customers will find useful can help prevent items from being thrown out.
The document discusses social media marketing and provides examples of how companies can use social media platforms like Facebook for brand awareness and engagement. It first provides background on the history and growth of social media. It then gives statistics on Facebook usage globally and in South Korea. The rest of the document offers suggestions for content strategies on Facebook brand pages, including sharing ordinary updates, industry-specific strategies, and examples of brand pages for fashion, finance, travel, and airlines. The overall purpose is to illustrate how businesses can leverage social media, specifically Facebook, for marketing and communication with customers.
This document contains a summary of Cia. Hering's 2Q09 performance and business outlook:
- Gross revenue grew 48.9% in the domestic market and Hering brand sales increased 57.7%. Same-store sales grew 29.3% and EBITDA margin increased 4.1 percentage points.
- 14 new Hering stores and 2 new PUC stores were opened in 2Q09. The expansion plan aims to open 81 new stores by the end of 2010.
- Capex was invested in store openings, remodels, and industrial equipment upgrades. Financial results improved due to exchange rate variations and derivative reversals.
- Shareholders were paid dividends and interest on
This document discusses how social media can be used by businesses to connect with other businesses and customers. It provides statistics showing that many business professionals use social media platforms like blogs, videos and social networks. These channels can influence business purchasing decisions. The document advocates that businesses shift from one-way communication to two-way conversations through community building, dialogue and partnerships. It provides examples of how businesses can measure their social media efforts based on engagement rather than just impressions or clicks.
This document discusses strategies for optimizing online advertising in both the short and long term. It outlines risks such as initiatives cannibalizing revenue and complexity, as well as opportunities like improved targeting and reporting. The author recommends a two-step approach: 1) Short-term tactical optimizations through data analysis and improvement projects to directly boost revenue over 3-6 months. 2) Developing a long-term advertising strategy and action plan through further analysis to best capitalize on advertising opportunities.
Worldwide Mesh - Weaving the Context into Content #2Kantar
Integration across disciplines is increasingly important for understanding consumer behavior in today's Attention Economy. Brands must go beyond short-term "projects" and forge deeper relationships with consumers to stand out. While Indian advertising is effective at driving awareness, creative impact and branding could be improved to better engage consumers in this fragmented media landscape.
The GoodWorks “Engagement Platform” is a web-based enterprise social network that
inspires spontaneous collaboration, empowers action, and stimulates innovation.
Take the Guesswork Out of Measuring ROI for Sales TrainingCorporate Visions
The document discusses measuring the potential return on investment (ROI) from various activities like haircuts, shoes, teeth brushing, ski lessons, and dinner dates. It encourages brainstorming which activity has the greatest potential ROI. It suggests that even small, everyday activities can provide returns if measured properly, as people are already experts in measurement from experiences in their daily lives.
Cia Hering presented operational and financial results for 3Q07, highlighting a 22.2% increase in domestic market gross revenue. Same-store sales grew 30.6% at owned Hering Stores and 20.7% at franchises. EBITDA was up 17% in August-September over the prior year. The company opened 5 new stores in 3Q07 as part of its expansion plan and saw a strong increase in stock market indicators as shares rose 189% over the period. Cia Hering also outlined its business strategy, which includes launching a Hering Store credit card and hiring new executives to support growth initiatives.
This presentation provides an overview of Cia. Hering's operational and financial performance in 4Q07 and full year 2007. Some key highlights include revenues and EBITDA exceeding targets, strategic initiatives around brand positioning, marketing, and store expansion, and continued strong growth in the stock market with increased trading volumes and market capitalization. The presentation also outlines the company's strategy and outlook, focusing on expanding its Hering store network, launching new products and financial services, and increasing marketing investments to drive further revenue growth.
The CMO Survey Highlights and Insights February 2012christinemoorman
The CMO Survey collects opinions from top marketers to predict market trends. The February 2012 survey was the eighth administration with 269 respondents. It asks questions about marketplace dynamics, firm growth strategies, marketing spending, performance, social media, jobs, organization, leadership, analytics, and more. Key findings include that marketer optimism for the US economy rebounded to its highest level in 3 years, optimism for firms' revenue growth exceeded that for the overall economy, and marketing budgets continue growing with B2B product firms expecting the most growth. Traditional advertising spending is expected to decline further.
The document discusses Cia. Hering's 4Q08 and full year 2008 operating performance. Some key highlights include gross revenue increasing 53.0% in the domestic market in 4Q08, with Hering brand sales rising 63.7%. For the full year, domestic market revenue grew 52.5% led by a 64.3% increase in Hering brand sales. The number of Hering stores increased by 27.1% in 2008, with same store sales growth of 32.4%. Adjusted EBITDA margin expanded to 31.6% in 4Q08 from 19.6% in 4Q07.
Information Inflation Can The Legal System Adaptlegalinfo
The survey of 126 Chief Legal Officers addressed plans to hire additional in-house lawyers or outside counsel. 49.2% plan to hire more in-house lawyers primarily in the US. 26.2% plan to increase use of outside counsel while 63.5% plan no change. 48.4% fired or considered firing a law firm, most often for poor quality legal work or mishandling critical matters. Outside counsel can improve relationships most by improving communication, responsiveness, project staffing and learning the client's business.
This document summarizes the proposed combination of Bank of America and MBNA. It highlights that the combined company would have the largest credit card portfolio in the US and worldwide, with significant scale, revenue opportunities, and financial strength. The transaction values MBNA at a 29% premium to its market value and 12.5 times its estimated 2006 earnings. The combination is expected to be modestly dilutive to Bank of America's earnings in 2006 but accretive by 2% in 2007, once cost savings of $850 million are fully realized.
This document discusses strategies for introducing the Lee Cooper brand into the Russian market. It analyzes economic and consumer spending trends in Russia, finding signs of recovery despite declines in GDP. Key retail channels for middle-income consumers are identified as shopping malls and boutiques. The most viable regions are said to be Central Russia and the Urals. Potential partners discussed include VF Corporation, Fiba Holding, and Jamil Co. Group. Major cities and retailers are evaluated for their suitability, with an emphasis on department stores and independent brands stores in major cities.
Social Media for B2B Technology Marketers (originally presented to Cisco's SMB global marketing team.) More social media and marketing content at http://gregverdino.typepad.com.
The cmo survey_highlights_and_insights-aug-2011_finalchristinemoorman
The survey found that marketer optimism for the overall U.S. economy reached its lowest point in two years, with an average rating of 55.6 out of 100. Most marketers (57.4%) said they were less optimistic about the economy compared to the previous quarter. However, marketer optimism for their own company's revenue prospects weakened less, with an average rating of 66.4 out of 100. While 51.4% saw no change in optimism for their company, 25.7% felt more optimistic and 22.8% felt less optimistic about their company's revenue prospects.
Promotional products are an effective marketing tool. Studies show that over 80% of people remember brands on promotional items they receive. These items are typically kept for 7 months or longer. Promotional products provide better cost per impression than traditional marketing channels. Receiving a promotional item can increase consumers' favorable perception of a business by up to 57%. Over 50% of consumers may do business with an advertiser after receiving a promotional item. Bags are very effective promotional items as they provide high exposure through a large number of impressions and are well-kept by consumers. Choosing a promotional item that customers will find useful can help prevent items from being thrown out.
The document discusses social media marketing and provides examples of how companies can use social media platforms like Facebook for brand awareness and engagement. It first provides background on the history and growth of social media. It then gives statistics on Facebook usage globally and in South Korea. The rest of the document offers suggestions for content strategies on Facebook brand pages, including sharing ordinary updates, industry-specific strategies, and examples of brand pages for fashion, finance, travel, and airlines. The overall purpose is to illustrate how businesses can leverage social media, specifically Facebook, for marketing and communication with customers.
This document contains a summary of Cia. Hering's 2Q09 performance and business outlook:
- Gross revenue grew 48.9% in the domestic market and Hering brand sales increased 57.7%. Same-store sales grew 29.3% and EBITDA margin increased 4.1 percentage points.
- 14 new Hering stores and 2 new PUC stores were opened in 2Q09. The expansion plan aims to open 81 new stores by the end of 2010.
- Capex was invested in store openings, remodels, and industrial equipment upgrades. Financial results improved due to exchange rate variations and derivative reversals.
- Shareholders were paid dividends and interest on
This document discusses how social media can be used by businesses to connect with other businesses and customers. It provides statistics showing that many business professionals use social media platforms like blogs, videos and social networks. These channels can influence business purchasing decisions. The document advocates that businesses shift from one-way communication to two-way conversations through community building, dialogue and partnerships. It provides examples of how businesses can measure their social media efforts based on engagement rather than just impressions or clicks.
This document discusses strategies for optimizing online advertising in both the short and long term. It outlines risks such as initiatives cannibalizing revenue and complexity, as well as opportunities like improved targeting and reporting. The author recommends a two-step approach: 1) Short-term tactical optimizations through data analysis and improvement projects to directly boost revenue over 3-6 months. 2) Developing a long-term advertising strategy and action plan through further analysis to best capitalize on advertising opportunities.
Worldwide Mesh - Weaving the Context into Content #2Kantar
Integration across disciplines is increasingly important for understanding consumer behavior in today's Attention Economy. Brands must go beyond short-term "projects" and forge deeper relationships with consumers to stand out. While Indian advertising is effective at driving awareness, creative impact and branding could be improved to better engage consumers in this fragmented media landscape.
The GoodWorks “Engagement Platform” is a web-based enterprise social network that
inspires spontaneous collaboration, empowers action, and stimulates innovation.
Take the Guesswork Out of Measuring ROI for Sales TrainingCorporate Visions
The document discusses measuring the potential return on investment (ROI) from various activities like haircuts, shoes, teeth brushing, ski lessons, and dinner dates. It encourages brainstorming which activity has the greatest potential ROI. It suggests that even small, everyday activities can provide returns if measured properly, as people are already experts in measurement from experiences in their daily lives.
2. Agenda
1. China: Land of Opportunities
2. The China Market is Different, Differentiated, and Complex
3. Form an Effective Insight‐Driven Strategy
4. Overall Thoughts / Q&A
1
3. China versus Denmark
Copenhagen
Denmark
China Shanghai
By 2025, China will have 219 cities with more than one million inhabitants – 219 Copenhagens!
and 24 cities with more than five million people – 24 Denmarks!
Source: McKinsey Global Institute: Preparing for China’s urban billion 2
4. China will be Consuming More and More
CAGR of Domestic Consumption per Person
%, 2007‐2020
9.0% 8.3%
8.0%
7.0% 6.3%
6.0%
5.0%
3.8%
4.0%
3.0% 2.3% 2.2%
1.9%
2.0% 1.5% 1.5% 1.3% 1.2%
1.0%
0.0%
China India Brazil Mexico US Canada UK France Japan Germany
Source: Global Insight, February 2009; McKinsey Global Institute China model, in February 2009; McKinsey Global Institute analysis
3
5. Chinese Consumer Prefer Global Brands
Chinese Cosmetics Market Share Top Cosmetics Brands in China
By Sales 2008
2008
Brand Loyalty1 Market Share
%
Maybelline
20.27
77.63
Chinese Avon
8.04
Brands 64.22
L’Oreal
7.93
20% 64.23
6.94 Olay
51.77
4.46 Aupres
62.08
Foreign & Joint 3.02
47.6 Yuesai
Venture Brands
2.70
80% 57.95 MaryKay
2.47
48.85 Shiseido
All foreign brands!
Source: 2009 Report on China Consumer Goods Markets Monitoring and Analysis; Sinomonitor.com
1Definition of brand loyalty: (# of consumers who will choose Brand X next time / # of current Brand X users) * 100% 4
6. You Can Influence Chinese Consumers
Whisky was Danone The first PizzaHut • China is becoming the biggest
imported to introduced yogurt restaurant opened Whisky import country.
China. • KFC opened 3,000 restaurants
and created a huge western fast
2010
The first food market in China.
The first KFC
Starbucks • Pizza Hut is one of the most
restaurant
opened common dating restaurant in
opened
China.
• Starbucks has successfully
helped increase the consumption
of coffee among Chinese
1980 1987 1990 1999 consumers.
• Yogurt accounted for 11.7% of
China’s dairy industry in 2008.
Source: SmithStreet Research 5
7. Agenda
1. China: Land of Opportunities
2. The China Market is Different, Differentiated, and Complex
3. Form an Effective Insight‐Driven Strategy
4. Overall Thoughts / Q&A
6
9. China is not one Market
Common Breakfasts Breakfast in North China
Chinese pancakes
Ingredients: Wheat
flour, and variations
of egg, green onion,
sweet/spicy sauce,
fried bread.
Fried dough Porridge
& soy milk (Zhou/Congee)
Ingredients: Wheat flour, soybeans Ingredients: Rice, meats, preserved eggs
and vegetables
Some Chinese like to dip the fried The northeast prefers adding salted Breakfast in South China
bread sticks into soy milk. vegetables whereas the south prefers have
preserved eggs. The southern version also
has more water in it.
Guilin’s rice noodles
Ingredients: Rice
noodles, green onion,
meat (pork, beef, or
lamb)
Starchy rice
dumpling wrapped
in reed leaves
Steamed buns (Mantou) Steamed bun (Baozi) Ingredients: Sticky
Ingredients: Wheat flour Ingredients: Wheat flour, meat rice, meat (pork or
Northerners prefer a steamed bun (pork) , vegetables, bean paste, beef), egg and/or
without any filling while the south mushroom, are all common fillings bean paste
prefers minced pork or vegetables
fillings.
Source: SmithStreet Interview and Analysis, photo (bbs.tom.com; China Commercial Online Tourism Services; www.hljcyw.com, mm616.com) 8
11. The Chinese Consumer is Changing Rapidly
Priorities Fashion & Style
Maintain Apartment Material
Family & Car Loan Goods
Life
Don’t Care Natural
Dolled Up
Much Beauty
Running Lost at the Internet
out of Time Crossroads Dominated
Source: SmithStreet Research 10
12. China has its own Forms of Creativity
“I know a factory that
“This bag is pretty!” “This bag is not sold in
can make it. Who wants
China.”
Post on online to buy it?”
forums
User Responses
Get responses
Reply
Users check and
critique sample Factory makes a “Count me in!”
Factory sends sample
quality
sample Contact the factory
Send sample back for
improvements
Deliver
bags to
users
Pay deposit Users receive product “Great bag!”
Product delivery Comment online
Source: SmithStreet Research 11
13. Social Media has a Huge Influence on Brand
P&G’s “Homework” for 2008.12.28 P&G distributed a market research questionnaire
disguised as homework assignment to Hangzhou
Primary School Students primary school students which required them to
use P&G tooth paste.
A parent’s blog + a local community forum
600 comments within 3 hours
2008.12.29
Journalists conduct interviews
P&G denies involvment
Chinese netizens showed strong disapproval
2008.12.30 The education department of Zhejiang Province
announced that it would cease cooperation with
P&G effective immediately.
Source: q.sohu.com 12
14. Agenda
1. China: Land of Opportunities
2. The China Market is Different, Differentiated, and Complex
3. Form an Effective Insight‐Driven Strategy
4. Overall Thoughts / Q&A
13
15. Define your Brand or the Market will do it for You
Brand A and Brand B are the first line and second line brands of a global fashion company, respectively.
Brand A
Millions Most people will search
for Chinese Name A for
both the first and second Differentiation between
2.0 line of products Google sina blog Baidu the first line and the
1,686,805
Taobao Total
1.5
second line is very low
1.0 Most people search only
559,403
for the name of the first
0.5
129,446 40,356 22,780
line
0.0
However, search items
Chinese Name A Chinese Name B Chinese Name C Chinese name D Chinese Name E
skew heavily towards
Chinese Name F. 7 out of
every 10 results are
Brand B Chinese Name F related
products or news.
200,000 Search results for Brand B
172,852 in Chinese on major search Google sina blog Baidu
150,000 engines and portals is only
9.3% of total searches for
the brand in China. There is a lack of
100,000
understanding of the fashion
50,000 company’s brands and the
7,261 1,369 614 21 differences between product
0 lines
Chinese Name F Chinese Name G Chinese Name H Chinese name I Chinese Name J
Source: Google; Baidu; Sina; Taobao; SmithStreet Primary Research 14
16. Understand the Market at a Deep Level
Rated China Hospital System Pricing Analysis
7,000
Market Share of Foreign Brand
1st Class 100% Device B
6,000 2nd Class
90%
Device A
Market Share of Foreign Brand
80%
5,000 3rd Class 70%
60%
Device C
4,000 3,662 50%
40% Device E
Device D
3,000 30%
20%
2,000 2,610 10%
0%
1,000 2,246 0 1 2 3 4 5 6 7
722
328 474 Price Multiple (Price of Foreign Brand/Price of Local Brand)
Price Multiple (Price of Foreign Brand/Price of Local Brand)
‐
Grade III Grade II Grade I
Purchasing Decisions Nominated by Doctors
Price 15
After‐sale service 7
Relationship with supplier 3
Colleagues’ recommendations 5
Overall quality 18
Source: China Ministry of Health 15
17. Governments often Determine the Size of the Market
Beijing, Shanghai and the Chinese Government all pay attention to nursing care and
disease control for Disease X.
• More Channels
• More Aged Care
• More Professionals
Market of Rising Governmental New
Disease X in Awareness at National Market of
China and Local Levels Disease X in
Original Market China
• Public Education
of Disease X in
• Professional Education
China
Source: SmithStreet Research 16
19. Agenda
1. China: Land of Opportunities
2. The China Market is Different, Differentiated, and Complex
3. Form an Effective Insight‐Driven Strategy
4. Overall Thoughts / Q&A
18
22. China is a Freeway…
Shanghai, China
20 Jinchuang Road, 10th Floor
Yangpu, Shanghai 200433
+86 (21) 6565 6533
New York, USA
521 Fifth Avenue, 17th Floor
New York, NY 10175
+1 (212) 292 4420
www.smithstreetsolutions.com
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