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©2010
The Eight Myths of
Marketing in China
MENG Webinar
September 23, 2010
©2010
Twitter
Speaking: @brandranter
#mengonline
@theduffyagency
©2010
China in perspective:
The basics
Official name: The People's Republic
of China (PRC)
not to be confused with The
Repub...
©2010
China in perspective
(BRIC + USA)
Russia USA China
Brasil India0
0.03
0.06
0.09
0.12
RUS USA CHI BRA IND
% of Global...
©2010
Different China’s
Our parents’China:
“Red China”
©2010
Different China’s
Our parents’China:
“Red China”
Our China:
“Made in China”
©2010
Different China’s
Our parents’China:
“Red China”
Our China:
“Made in China”
Our kids’China:
?????????
©2010
1. Background
8
BBDO Knight The Lowe Group The Duffy Agency
Planner
Creative Director
/ PlannerCreative DirectorCopyw...
©2010
2. Resume
©2010
3. Areas of interest
Tactics > Messaging > Execution
Helping your brand communicate
with impact, clarity and relevan...
©2010
3. Areas of interest
Tactics > Messaging > Execution
Helping your brand communicate
with impact, clarity and relevan...
©2010
Update thi smap or
create a new onw with
SJN agecncies and our
three locations in a
different color
©2010
4. Locatio...
©2010
Confession
©2010
MYTH #1:
Translation
is one of the
biggest challenges
of marketing
in China
©2010
What can go wrong
©2010
Translator Adaptor Copywriter
‣ Linguistic experts
‣ Executional focus
‣ Minimum writing skill
‣ No advertising skil...
©2010
©2010
©2010
MYTH #2:
China is an
emerging nation
©2010
China has been the world’s largest
economy for 18 of the past 20
centuries. (Financial Times)
Until 1500, China also...
©2010
Present
©2010
Present:
London T5 vs. Beijing T3
Opened:
Size:
Time:
Cost:
February 2008
353,020 m2
19 years
£4 B
March 2008
986,00...
©2010
Future:
The world’s second largest economy
©2010
Future:
The world’s second largest economy
©2010
New World Order
0 3750000 7500000 11250000 15000000
USA
CHINA
JAPAN
GERMANY
UK
2010
0 18750000 37500000 56250000 750...
©2010
China has been the world’s largest
economy for 18 of the past 20
centuries. (Financial Times)
Until 1500, China also...
©2010
China has been the world’s largest
economy for 18 of the past 20
centuries. (Financial Times)
Until 1500, China also...
©2010
Past:
A look back at the Chinese economy
China has been the world’s largest
economy for 18 of the past 20
centuries....
©2010
MYTH #3:
Digital marketing
& social media
don’t work in China
©2010
Does the web work in China?
Comparatively
low internet
penetration
0
22.5
45
67.5
90
Sweden
US
China
Internet Penetr...
©2010
Does the web work in China?
China has
more internet
users that the
US has people
0
100000000
200000000
300000000
400...
©2010
Does the web work in China?
200M
Chinese have
broadband vs
80M
Americans 0
100000000
200000000
300000000
400000000
S...
©2010
MYTH #4:
China’s web is
just like the rest
of the world
©2010
Is China’s web like the rest of the world?
©2010
Who needs Google?
Sina Weibo (Twitter) Youku (YouTube) Kaixin001 (FaceBook)
TaoBao (Ebay) QQ (MSN)Baidu (Google)
©2010
©2010
A strategy for
Creating a Web Presence in China
= FaceBook
=Twitter
Blog
Blog
©2010
MYTH #5:
China is becoming
“Westernized”
©2010
Is China is becoming“Westernized”?
Modernization
=Westernization
©2010
Is China is becoming“Westernized”?
China is
actually
becoming
more Chinese
©2010
It’s actually
the West that
is becoming
Easternized
Is China is becoming“Westernized”?
©2010
MYTH #6:
Our strategies and
tactics will work in
China
©2010
0
30
60
90
120
PDI IDV MAS UAI LTO
USA China
PDI - Power Distance Index: The degree to which the
masses accept unequ...
©2010
0
30
60
90
120
PDI IDV MAS UAI LTO
France China
PDI - Power Distance Index: The degree to which the
masses accept un...
©2010
Understanding masculinity
©2010
Biotherm
©2010
Clarins
©2010
Understanding the market
©2010
Long-term brand vs short-term sales
©2010
MYTH #7:
China’s regional
differences are as
great as Europe’s
national differences
©2010
Are regional differences like the EU?
©2010
Are regional differences like the EU?
©2010
MYTH #8:
There is no
number 8
©2010
Thank You
www.brandrants.com
©2010
Web: www.theduffyagency.com
Blog: www.brandrants.com
Twitter: @brandranter
LinkedIn: Sean Duffy
Facebook: Sean Duffy
em...
©©©©©©©©©©© LEGAL STUFF ©©©©©©©©©©©©
This presentation is the property of Duffy Consult and The Duffy Agency AB. We shared i...
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8 Myths of Marketing in China

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Marketing in China involves different challenges than marketing in the western world. We take a look at 8 marketing myths in China and how to overcome them.

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8 Myths of Marketing in China

  1. 1. ©2010 The Eight Myths of Marketing in China MENG Webinar September 23, 2010
  2. 2. ©2010 Twitter Speaking: @brandranter #mengonline @theduffyagency
  3. 3. ©2010 China in perspective: The basics Official name: The People's Republic of China (PRC) not to be confused with The Republic of China, a.k.a. Taiwan Rule: The Communist Party of China (CPC) under a single-party system since 1949 Led by Mao Zedong from1949 until his death in 1976 Capital: Beijing Divisions: 22 provinces 5 autonomous regions 4 directly administered municipalities: Beijing, Tianjin, Shanghai, and Chongqing 2 highly autonomous special administrative regions (SARs): Hong Kong and Macau Population: over 1.3 billion 20% of Earth’s population China has 56 ethnic groups The Han Chinese make up 92% of the population and dominate all culture and politics. Oldest continuous civilization Largest standing army Reforms from Mao began in 1978: market-based economic reforms the one-child policy
  4. 4. ©2010 China in perspective (BRIC + USA) Russia USA China Brasil India0 0.03 0.06 0.09 0.12 RUS USA CHI BRA IND % of Global Landmass 2010 0 0.05 0.1 0.15 0.2 CHI IND USA BRA RUS % of Global Population 2010 USA 0 0.063 0.125 0.188 0.25 CHI BRA RUS IND % of Global GDP 2010 USA
  5. 5. ©2010 Different China’s Our parents’China: “Red China”
  6. 6. ©2010 Different China’s Our parents’China: “Red China” Our China: “Made in China”
  7. 7. ©2010 Different China’s Our parents’China: “Red China” Our China: “Made in China” Our kids’China: ?????????
  8. 8. ©2010 1. Background 8 BBDO Knight The Lowe Group The Duffy Agency Planner Creative Director / PlannerCreative DirectorCopywriter 1991 200119871983 BOSTON SAN FRANCISCO STOCKHOLM MALMÖ / BOSTON Sean Duffy – Strategic Planner, The Duffy Agecny @brandranter
  9. 9. ©2010 2. Resume
  10. 10. ©2010 3. Areas of interest Tactics > Messaging > Execution Helping your brand communicate with impact, clarity and relevance Advertising in all media Websites / assets SEO strategy & execution Social media / digital marketing Sales support material Trade show material Training > Systems > Strategy Helping you achieve your full potential with strategy, training and research Brand identity & positioning Web 2.0 strategies and tactics Internal training and workshops Business intelligence Market research Online Reputation Management Check > Adaptation > Production Preserving impact, clarity and relevance across all markets Language check Cultural check Copy adaptation Art/layout adaptation Local liaison Local production REATE
  11. 11. ©2010 3. Areas of interest Tactics > Messaging > Execution Helping your brand communicate with impact, clarity and relevance Advertising in all media Websites / assets SEO strategy & execution Social media / digital marketing Sales support material Trade show material Training > Systems > Strategy Helping you achieve your full potential with strategy, training and research Brand identity & positioning Web 2.0 strategies and tactics Internal training and workshops Business intelligence Market research Online Reputation Management Check > Adaptation > Production Preserving impact, clarity and relevance across all markets Language check Cultural check Copy adaptation Art/layout adaptation Local liaison Local production REATE
  12. 12. ©2010 Update thi smap or create a new onw with SJN agecncies and our three locations in a different color ©2010 4. Location, location , location Offices in Boston and Malmö with representation in Shanghai. EU President of TAAN network: 65 affiliate ad agencies on 6 continents reaching a market of 3.5 billion people Annual billings of 1.5 billion USD
  13. 13. ©2010 Confession
  14. 14. ©2010 MYTH #1: Translation is one of the biggest challenges of marketing in China
  15. 15. ©2010 What can go wrong
  16. 16. ©2010 Translator Adaptor Copywriter ‣ Linguistic experts ‣ Executional focus ‣ Minimum writing skill ‣ No advertising skills ‣ Grammar and clarity ‣ Linguistic experts ‣ Executional focus ‣ Good writing skill ‣ Some advertising skills ‣ Grammar and clarity ‣ Preserving clarity, style, sell ‣ Advertising experts ‣ Conceptual focus ‣ Excellent writing skill ‣ Solid advertising skills ‣ Creating concept ‣ Creating clarity, style, sell Factual Motivational (Not suitable for conceptual mass communication) (Suitable for conceptual mass communication) Conceptual What’s the difference between translation and adaptation?
  17. 17. ©2010
  18. 18. ©2010
  19. 19. ©2010 MYTH #2: China is an emerging nation
  20. 20. ©2010 China has been the world’s largest economy for 18 of the past 20 centuries. (Financial Times) Until 1500, China also had the highest income per capita and was the world’s technological leader. (The Economist) China's share of world output peaked in 1820 at about one-third of the global total. (OECD) China’s global economic leadership ended around 1850 when they failed to partake in the industrial revolution. (Mark Elvin) Past: A look back at the Chinese economy 0 2010 1850 100 2010 1500 1000 500
  21. 21. ©2010 Present
  22. 22. ©2010 Present: London T5 vs. Beijing T3 Opened: Size: Time: Cost: February 2008 353,020 m2 19 years £4 B March 2008 986,000 m2 4 years £2 B
  23. 23. ©2010 Future: The world’s second largest economy
  24. 24. ©2010 Future: The world’s second largest economy
  25. 25. ©2010 New World Order 0 3750000 7500000 11250000 15000000 USA CHINA JAPAN GERMANY UK 2010 0 18750000 37500000 56250000 75000000 CHINA USA INDIA BRAZIL MEXICO 2050 GDP GDP Source: International Monetary Fund, World Economic Outlook Database of April, 2010
  26. 26. ©2010 China has been the world’s largest economy for 18 of the past 20 centuries. (Financial Times) Until 1500, China also had the highest income per capita and was the world’s technological leader. (The Economist) China's share of world output peaked in 1820 at about one-third of the global total. (OECD) China’s global economic leadership ended around 1850 when they failed to partake in the industrial revolution. (Mark Elvin) Past: A look back at the Chinese economy 0 2010 1850 100 2010 1500 1000 500
  27. 27. ©2010 China has been the world’s largest economy for 18 of the past 20 centuries. (Financial Times) Until 1500, China also had the highest income per capita and was the world’s technological leader. (The Economist) China's share of world output peaked in 1820 at about one-third of the global total. (OECD) China’s global economic leadership ended around 1850 when they failed to partake in the industrial revolution. (Mark Elvin) China’s global economic leadership is restored around 2050. 0 1850 100 2000 1500 1000 500 2050 Past: A look back at the Chinese economy
  28. 28. ©2010 Past: A look back at the Chinese economy China has been the world’s largest economy for 18 of the past 20 centuries. (Financial Times) Until 1500, China also had the highest income per capita and was the world’s technological leader. (The Economist) China's share of world output peaked in 1820 at about one-third of the global total. (OECD) China’s global economic leadership ended around 1850 when they failed to partake in the industrial revolution. (Mark Elvin) China’s global economic leadership is restored around 2050. 0 1850 100 2000 1500 1000 500 2050 2500
  29. 29. ©2010 MYTH #3: Digital marketing & social media don’t work in China
  30. 30. ©2010 Does the web work in China? Comparatively low internet penetration 0 22.5 45 67.5 90 Sweden US China Internet Penetration
  31. 31. ©2010 Does the web work in China? China has more internet users that the US has people 0 100000000 200000000 300000000 400000000 Sweden US China Internet Users
  32. 32. ©2010 Does the web work in China? 200M Chinese have broadband vs 80M Americans 0 100000000 200000000 300000000 400000000 Sweden US China Broadband Dial Up 35% 50%
  33. 33. ©2010 MYTH #4: China’s web is just like the rest of the world
  34. 34. ©2010 Is China’s web like the rest of the world?
  35. 35. ©2010 Who needs Google? Sina Weibo (Twitter) Youku (YouTube) Kaixin001 (FaceBook) TaoBao (Ebay) QQ (MSN)Baidu (Google)
  36. 36. ©2010
  37. 37. ©2010 A strategy for Creating a Web Presence in China = FaceBook =Twitter Blog Blog
  38. 38. ©2010 MYTH #5: China is becoming “Westernized”
  39. 39. ©2010 Is China is becoming“Westernized”? Modernization =Westernization
  40. 40. ©2010 Is China is becoming“Westernized”? China is actually becoming more Chinese
  41. 41. ©2010 It’s actually the West that is becoming Easternized Is China is becoming“Westernized”?
  42. 42. ©2010 MYTH #6: Our strategies and tactics will work in China
  43. 43. ©2010 0 30 60 90 120 PDI IDV MAS UAI LTO USA China PDI - Power Distance Index: The degree to which the masses accept unequal distribution of power and are content with it. IDV - Individualism: The degree to which people expect to look after themselves as opposed to being looked after in a collectivist sense. MAS - Masculinity: The degree to which male behavior differs from female behavior and traits such as assertiveness and competitiveness are accepted. UAI - Uncertainty Avoidance Index: The degree to which uncertainty, differing opinions, lack of structure and “coloring outside the lines” is tolerated. LTO - Long-Term Orientation: Versus short-term orientation, the degree to which the society tends to take a long-term view of issues when deciding. Hofstede Cultural Equivalence Scale
  44. 44. ©2010 0 30 60 90 120 PDI IDV MAS UAI LTO France China PDI - Power Distance Index: The degree to which the masses accept unequal distribution of power and are content with it. IDV - Individualism: The degree to which people expect to look after themselves as opposed to being looked after in a collectivist sense. MAS - Masculinity: The degree to which male behavior differs from female behavior and traits such as assertiveness and competitiveness are accepted. UAI - Uncertainty Avoidance Index: The degree to which uncertainty, differing opinions, lack of structure and “coloring outside the lines” is tolerated. LTO - Long-Term Orientation: Versus short-term orientation, the degree to which the society tends to take a long-term view of issues when deciding. Hofstede Cultural Equivalence Scale
  45. 45. ©2010 Understanding masculinity
  46. 46. ©2010 Biotherm
  47. 47. ©2010 Clarins
  48. 48. ©2010 Understanding the market
  49. 49. ©2010 Long-term brand vs short-term sales
  50. 50. ©2010 MYTH #7: China’s regional differences are as great as Europe’s national differences
  51. 51. ©2010 Are regional differences like the EU?
  52. 52. ©2010 Are regional differences like the EU?
  53. 53. ©2010 MYTH #8: There is no number 8
  54. 54. ©2010 Thank You www.brandrants.com
  55. 55. ©2010 Web: www.theduffyagency.com Blog: www.brandrants.com Twitter: @brandranter LinkedIn: Sean Duffy Facebook: Sean Duffy email: sean@TheDuffyAgency.com
  56. 56. ©©©©©©©©©©© LEGAL STUFF ©©©©©©©©©©©© This presentation is the property of Duffy Consult and The Duffy Agency AB. We shared it with you in good faith. If you want to use any part of this presentation please call us and ask us first. We’ll probably say OK. You can contact Grant Adams through our Swedish office. Better yet, why not have us present it? THEDUFFYAGENCY / DUFFYCONSULT Ängelholmsgatan 1A 214 22 Malmö, Sweden Tel: (+46) 40 123451 Fax: (+46) 40 978585 Email: grant@theduffyagency.com Web: www.theduffyagency.com

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