Engage Chinese Consumers Through Digital Marketing Channel. David Zhou Director of Overseas Business adsage Corporation 1

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1 Engage Chinese Consumers Through Digital Marketing Channel David Zhou Director of Overseas Business adsage Corporation 1

2 Benefits of SEMPO Membership Expand Your Knowledge with webinars, hangouts, and annual survey results Engage With Industry Leaders at local networking events and through committee involvement Grow Your Business and Maximize Your Career Growth through the job board, writing for the blog or newsletter, and promoting your brand 2

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5 WHO WE ARE adsage is a leading online advertising agency and technology company in China. adsage positions itself as a performance advertising agency, because adsage commits to provide the best ROI for client s digital marketing campaign in China. adsage has cutting edge data analytical tools and intelligent auto bidding/optimization technologies. Founded in 2007 by ex-microsoft managers Have over 550 employees (280 software developers) in 6 cities in USA and China The largest online advertising technology company and SEM/SEO agency in China since 2010 Manages over 1,000 premier advertisers digital campaigns in China The largest partner of Baidu and Qihoo 360 in China. The exclusive Baidu and Qihoo 360 reseller in North America There are over 2,000 advertisers and agencies are using adsage s software globally Owns the largest mobile ads network in China covering 90% ios users Advertising technology vendor of Microsoft and Yahoo for over 5 years Built the most comprehensive software for Baidu SEM campaigns The first Facebook advertising API partner since 2010 The first Sina Weibo and Tencent Weibo content and advertising API partner since

6 OUR CLIENTS RETAIL and BRANDING TOURISM

7 ADSAGE SERVICE ADVANTAGES Technology People Service Scale Leading ads management and analytical technologies Accurate data tracking system and mechanism Multiple optimization tools: Rule based Position based Portfolio based Creative based Search Engine Optimization analysis tools Intelligent decision technologies Rich experience in various industries 120+ Baidu certificated account managers in China 20 professional designers 300 experienced developers Responsibilities are clearly defined Keep the high customer satisfactions for years English and Chinese language support Solid industry experience and insight From business analysis to technical solutions Covering major search engines, popular publishers, social media and mobile networks Including creative design, website localization, campaign management, performance analysis, optimization and reporting Efficient communication and campaign operation Technology + Experience + Efficient Operation = Professional Agency Service

8 CHINA THE LARGEST LUXURY MARKET IN THE WORLD By 2015, Chinese consumers will contribute 1/3 of global luxury products sales >50% of the purchase takes place outside of China 8

9 CHINESE TOURISTS AT GALERIES LAFAYETTE Tour bus bring Chinese tourists to visit Lafayette Everyday, over 2,000 Chinese consumers visit Galeries Lafayette at Paris. Most of them are tourists. In peak season, there were over 4,000 Chinese consumers shopping at that store in a single day. Average spending is Euro 1,500 per visitor. In 2012, 20% of European luxury brands report that their major sales are from Chinese travelers Lafayette becomes the must stop destination at Paris for Chinese tourists

10 CHINESE TOURISTS AT GALERIES LAFAYETTE Famous tourist s blog has detail introduction about Galeries Lafayette Chinese consumers are waiting to enter the Louis Vuitton s store at Lafayette

11 WHY CHINESE CONSUMERS LOVE GALERIES LAFAYETTE Branding is the key Galeries Lafayette is a must stop destination of any Chinese tourist in Paris. Everyone has a long shopping list to buy the luxury brands for their family, friends, colleagues, business relationships and themselves. Chinese consumers trust Lafayette brand, and believe the products that they bought from there are best quality with the best services. Lafayette has tried to open a retail store in Beijing 15 years ago, but was failed. In this year, a brand new store is reopened in Beijing downtown Value proposition of Galeries Lafayette Lafayette has really good reputation on Chinese Internet Lafayette has good partnership with local Chinese tourism agencies, which bring over 20 tour buses of consumers to Lafayette in daily basis. Hiring Chinese speaking shopping guides Supporting Chinese banking card UnionPay Having Chinese signs in the store Paris has the most of the top tier luxury brands Lafayette has the best collection of those top luxury brands Chinese consumers love luxury brands Lafayette offers the best shopping experience for Chinese consumers 11

12 GALERIES LAFAYETTE ON BAIDU Search 老佛爷百货 (Galeries Lafayette in Chinese) on Baidu The official website has really good presentation to deliver the right messages to consumers. Sponsor links for its joined venture in China Map of Galeries Lafayette in Beijing Official Chinese website Baidu Baike Wikipedia owned by Baidu Official French website News about Galeries Lafayette Baidu Zhidao asking owned by Baidu 12

13 THE VALUABLE CHINESE CONSUMER Wealthy mid-class Chinese Consumers The rich bar in China: household wealth is over USD 1.6M (CNY 10M) In 2012, there are over 1.02 million Chinese people have achieved that bar, 6.02% annual increase Beijing: 179K Guangdong: 167K Shanghai: 140K Investment area (interest online community or topics) Real Estate, Stock market, Precious metal Averagely, each rich person has 2.4 bank accounts Demographics Average age: 39 Male : Female = 6:4 50% are entrepreneur, 20% professional stock trader, 15% real estate investors, 15% are executives in SOE or multinational companies 63% have ipad, 40% have Weibo accounts, 86% have online purchase experience Averagely travel 8 days/month 85% like to send children to study overseas 16% have done or are in process of immigration, 44% consider to immigrate to other countries Chinese population in US have strong buying power In 2012, Chinese made over 80 million outbound trips, 75%+ Chinese tourists report luxury products purchase from trips 1.1 million Chinese tourists visited USA. The average spending per Chinese tourist per trip is USD 6,000 (not count the airfare and hotels). There are over 4 million Chinese people living at US temporarily (students, visitors, travelers, business, ) So there are three groups of Chinese consumers need to get Nordstrom s special attention: A: Wealthy Chinese tourists B: Second generation of riches living in US C: Business travelers from China Demographics Most of Group A and C have high education background and basic English communication skills They have traveled to multiple countries and know very well about most of the luxury brands retail price 49% of them enjoy discovering new brands, even-more luxurious items or rare offerings. They have international credit cards (Visa or Master) and high credit level They are loyal to some brands, but they want some exclusive model that others cannot find in China 13

14 UNDERSTAND CHINESE CONSUMERS Target customers shopping behavior 39% of Chinese luxury product buyers said they made impulse decision They have good business sense, and have clear judgment about the commercial promotions They make purchase decision not only by price, but also considering with the customized service, risk, shopping experience, shopping environment, privacy information protection They agree that higher quality of products/service will cost higher price They are popular on social media in China, and like to post purchase pictures or share shopping experience with their social network on Weibo and WeChat They love coupons or discount code! They will ask about discount, it is not only because they like to buy with cheaper price, but because it is their habit. They are Chinese! They need to be traded as the local consumers, but not as foreign tourists Their expectation about stores 52% prefer stores that are large, wieth very grand decoration They trust the stores branding and reputation Target customers online behavior They are intensive Internet users, and will make lots of research online before their US trip They also go to the brands and fashion media website to look the newest products They use the newest version of iphone/ipad and Android smartphones They are familiar with online shopping and have registered for many membership discount enewsletters Although they can speak or read English, they prefer to use Chinese language on the internet 14

15 FOUR CHANNELS TO COVER CHINESE CONSUMERS Search Engine catch consumers who have intention about the travel destination General Web Portal impact tourists decision by Chinese content Mobile Apps push the advertising to target customers Social Media keep the customer loyalty All traffic will go to your website! Search Engine Baidu, Qihoo 360, Google, Sogou App on ios and Android Mobile trading site General Media Mobile Devices Official Website Sina, QQ, Taobao, Chinese Consumers Social Media Weibo, WeChat, Renren.com, Mobile Website

16 CHINESE WEBSITE SERVICES CASE STUDY Global Blue is a EU company provide the fashion and international travel shopping tax refund services Functions Content management Add-ins installation Online calculator for tax refund Contact Me form Social log in External links direction Display advertising space reserved Language selection In site search

17 SEO ON BAIDU Search Global Blue on Baidu Paid search ads SEO works Organic search result Social Media adsage services

18 MOBILE ADVERTISING Localize and promote mobile apps Translate the UI and content into Chinese language Promote those apps on AppStore and PlayStore in China to increase the app s ranking and drive the download Track the app usage and provide the upgrading recommendations Mobile advertising Create banner advertising to promote any specific brand or special offers Coordinate interactive marketing activities on mobile platform to increase the users loyalty and improve the brand images Collect consumer behavior information and make analysis adsage is the exclusive channel to promote Amazon s mobile app. In two months, Amazon s App entered top 2 in living category, and top 10 overall ranking

19 CASE STUDY: BORDEAUX WINE ASSOCIATION Phase3 App interaction This phase, the previously collected 100 ways to enjoy Bordeaux were made into interactive APP, to enhance the interaction with the fans, amplify Campaign's influence, and push the entire campaign to a climax. New fans: Reposts: Comments: Page PV: Page UV : APP users: Database: adsage Confidential 19

20 Q & A 20

21 Thank You! David Zhou