DIGITAL AGENCY SPECIALISES CHINESE

Transcription

1 WELCOME TO THE DIGITAL JUNGLE Advantage Austria 24 February 2016 Vienna WE RE A DIGITAL AGENCY THAT SPECIALISES IN CHINESE LANGUAGE MARKETING China is in the midst of one of history s most dramatic consumer revolutions. We have the opportunity to do more than just localize products and brands for Chinese consumers. We have the chance to innovate for a consumer who is becoming increasingly sophisticated and demands the things they buy, satisfy emotional, intellectual, Dr. Mathew McDougall and social needs. Founder & CEO WAS FOUNDED IN 2011 TO CONNECT WESTERN BRANDS WITH A CHINESE SPEAKING AUDIENCE; LIVING IN CHINA OR ABROAD. 1

2 WHAT WE DO FULL SERVICE DIGITAL AGENCY 3 RESEARCH & INSIGHTS BRANDING & LOCALISATION DIGITAL MARKETING WEB & APP DEVELOPMENT Chinese Internet use and online behaviour is rapidly evolving. Using advanced data mining techniques, the data informs our strategy & insight reports. We identify and establish key brand values and goals for the Chinese consumer. Building the brand through strong recognition and influencing loyalty with these consumers. Providing campaign & project based programs that include multi-channel tactics. i.e., Social (WeChat/Weibo) Search (Baidu/ Qihoo), DSP, KOL s EDM Designing and developing Chinese language websites.; From branded, to content to ecommerce sites. TEAM INTRODUCTION 4 Dr. Mathew McDougall CEO, Brand & Digital Strategist With 25 years of working in the Internet technology space and digital marketing areas, Dr. McDougall boasts over 11 years living and working in China and time spent working in Australia, UK, US and Japan. He is a renowned expert on digital marketing, especially in the area of Chinese digital marketing. Recognized for his published articles, his frequent speaking engagements, as well as his prestigious consulting and teaching programs. Dr. McDougall thrives in entrepreneurial environments, where fast-paced change and continually evolving technology is the norm. Dr. McDougall founded "Digital Jungle" in early This multicultural digital Agency wanted to exploit the needs of Western organisations that needed support in marketing to a Chinese audience. Over the short number of years, Digital Jungle has grown to now have offices in China (Beijing & Shanghai), Australia and New Zealand and the United Kingdom. Additionally, their exist partnerships with Agencies around the world. Dr. McDougall is also the editor of the "Digital Marketing Inner Circle" blog on digital marketing, author of "The Chinese Social Media Universe", a frequent spokesperson on Internet issues and guest speaker at Internet industry forums worldwide. 2

3 TEAM INTRODUCTION 5 Roy Graff Managing Director, UK Roy is an 'old China hand' with over 20 years of experience working in and with China in the tourism, hospitality, luxury retail and digital marketing sectors. Based in London, UK, Roy heads Digital Jungle's UK and European business offering full service digital marketing support for Chinese audience. He is Author of the book 'China, the Future of Travel' (2015) and an experienced consultant, strategic advisor and speaker on Chinese business, marketing, distribution and business etiquette. Roy has held senior management and director roles at multinational travel companies (wholesale/retail and online) in business development, marketing, sales, distribution and product development and was the founder of ChinaContact and China Edge. Chinese Visitors to Europe: Demographic sub-market profiles 6 Demographic Group/Independent Trend Mass affluence Group International sophisticate Independent Officials Group Second generation wealthy Independent Modern entrepreneurs Independent Traditional elites Group Nouveau riche Group 3

4 Spending culture of Chinese outbound tourists to the West 7 Nouveau Riche spending Officials Traditional Elites Second Generation Entrepreneurs International Sophisticates Aspirational Sophistication Mass Affluence 8 Disproportionate spending on consumer goods abroad Avid consumers of social media and celebrity trends Share and show off Still mostly travel in groups Choose cheaper hotels, out of city centre 4

5 International Sophisticates 9 Mid and High level management in multinational corporations Highly educated abroad or in top Chinese universities Fluent English & other languages Sophisticated, international, more individualistic tastes Prefer smaller central boutique and design hotels Officials 10 Travel in groups or with helpers Extremely private and well-connected Combine work with sightseeing and shopping Gift giving crucial Many have children going to school overseas Prefer known international 5 star chains 5

6 Modern Entrepreneurs 11 Owners of new generation private businesses Millionaires are on average 15 years younger than in the West Involved in high-tech, IT and energy Highly educated, well travelled and sophisticated More individualistic, discreet Look for modern business hotels, convenient for work and leisure Traditional Business Elites 12 Typically older and male, hold senior positions in Chinese companies and MNCs Have been consuming luxury for longer than other segments and are comfortable with their wealth Less adept at foreign languages, prefer Chinese culture Stay in 5 star hotels, prefer large chains 6

7 The Nouveau Riche 13 Self-made and/or with Party/Army background Often coming from poor background, low education level Down-stream manufacturing, food, real estate, stock investment, mining, trading. No foreign language rely on assistants/fixers Buying into trend investments (Stocks, Property etc.) Choose 5 star deluxe international brand hotels Second Generation 14 Children of Government officials, Traditional Elites and the Nouveau Riche, educated at top Chinese universities or overseas schools Heavily controlled by their parents High propensity to show off with friends and online Influenced by brands and celebrities Will choose design-minded or ultra-luxury hotels 7

8 Chinese market is a demographic, not a geography 15 Motivations for Outbound Travel 16 Ø Extend Business / Asset Portfolio Ø Education for Self / Children Ø Relaxation or Adventure Ø Shopping for Self / Gifting Ø Health and Beauty 8

9 Ø Extending one s business and asset portfolio 17 Combining business and leisure Seeking to secure investments Leveraging Chinese network Ø Education and self improvement 18 Investing in a better future for their children Self improvement process Foreign passport or residency as insurance 9

10 Ø Relaxation, Recharge and Experience 19 Hectic life and little vacation time Lack of contact with nature Activities and Experiences Ø Shopping for Self and Others 20 Shopping is an important, clear goal Buying branded goods that others recognise Gift giving culture 10

11 18/02/16 Ø Health and Beauty care 21 ü Food scares, air and water ü Believe that money can buy short-cuts ü Strong belief in traditional Chinese medicine Influencing Chinese Travel and Spending Decisions 22 Ø Their sources for research and information Ø Where should you engage them? Ø Priorities of the Chinese when travelling 11

12 18/02/16 Ø Source of information for travel research and inspiration 23 ① Friends and Family recommendations ② Online travel forums ③ Review sites ④ Mobile content apps ⑤ Travel agents ⑥ Official Destination websites Ø Where and when should you engage them? 24 ü Inspiration stage ü Planning stage ü Booking stage ü Pre-travel ü On the road ü Post-travel 12

13 Ø Priorities of Chinese while travelling 25 Sales staff must never be pushy Allow picture taking and sharing in-store Stress your brand story (heritage, history, human touch) VIP treatment, gift with purchase Avoid stereotypes, know some customs and regional differences Never underestimate importance of food culture Relationships GuanXi 26 Nothing replaces direct face to face meeting and relationship building Market visit Client orientation Gift giving Negotiation techniques 13

14 Case study: 27 Set up and managed Eurostar s Weibo activity, conducting an online and focus-groups\ research in summer of 2014, leading to a social video campaign which went live from September 2014 to February The campaign utilised competitions and incentives such as free tickets and video promotions. It generated a reach of 50 million Weibo page-views, 600% growth in direct online bookings, top trending search term on Baidu and major media interest in the brand Case study: 28 Eurostar partnered with a number of KOL, living in Europe and/or interested in UK and European travel. Post boosts through KOL resulted in immediate traffic spikes and higher engagement. Example: A single post mentioning the online research led to 500 questionnaires completed and 400 new Weibo followers within 4 hours. 14

15 VisitBritain GREAT China Welcome Charter 29 The GREAT China Welcome Charter helps Chinese visitors to easily find China-ready UK tourism providers, and vice versa. Effectively it s a partnership between VisitBritain and those British tourism businesses who are committed to providing exceptional service to Chinese travellers THE CHINESE DIGITAL LANDSCAPE IS DIFFERENT 15

16 CHINA A DIVERSIFIED MARKET 31 A Northwest China 5 provinces, 7.26% of population, 5.61% of GDP Southwest China 5 provinces, 14.45% of population, 9.44% of GDP North China 5 provinces, 12.58% of population, 14.54% of GDP Central China 3 provinces, 16.16% of population, 12.91% of GDP South China 3 provinces, 12.00% of population, 12.65% of GDP Northeast China 3 provinces, 8.10% of population, 8.64% of GDP East China 7 provinces, 29.45% of population, 36.21% of GDP CHINA SOCIAL MEDIA MARKETING 2015 SNAPSHOT 32 A Population billion 54% Urban Vs. 46% Rural 668 million Internet users 49% Penetration 659 million active social media users 48% Penetration 574 million mobile internet users 49% Penetration Source: CNNIC Statistical Survey on Internet Development in China 16

17 INTERNET USERS ONLINE ACTIVITIES 33 A Instant Messaging - 91% 100% Search Engine Usage Search 80.5% 75% Music 74% 50% Online Shopping 56% Social Networking 41% Travel bookings - 34% 25% 0% Baidu Sogou 360 Google Shenma Baidu still dominates the Search market in China, with increasing pressure from Sogou and 360 (Haosou). MOBILE INTERNET USERS 34 A 89% of Internet users in China use their smart devices to access the internet. ACTIVITIES Instant Messaging - 91% % % Search 77% Millions % 45% News 75% % Music 66% 0 Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun % Video 56% mobile Internet users proportion in Internet users 17

18 SOCIAL MEDIA IS CHANGING THE WAY YOU DO BUSINESS IN CHINA TOP SOCIAL MEDIA NETWORKS 36 TOP SOCIAL BRANDS 700,000,000 QQ is the top social site with more than 800M active users. However, WeChat has seen explosive growth to reach 650 million active users, and is quickly becoming the central pillar of Chinese and international social media innovation. Even Facebook is taking notesits roadmap for the next two years is a carbon copy of what WeChat has already pioneered. Millions 525,000, ,000, ,000,000 0 Qzone WeChat Weibo RenRen 18

19 SINA WEIBO 10 FACTS: 176 million of active users per month Female/Male at 50/ % users had tertiary education 76% users access Weibo from apps, and 29% from PC 58% Weibo users are positive towards ads, and 23% of users don t like ad 60% 45% 30% 15% 0% Born after 1990 Weibo users age profile change Born between1980 Born between1970 Born before 1970 and 1990 and 1980 Year 2013 Year 2014 Source: Weibo Data Centre 2014 CHINESE SOCIAL MEDIA 13 A Most prominent Chinese social media platforms Sina Weibo / Tencent WeChat Twitter equivalent platforms in China are called WeiBo in Mandarin (Wei means micro, Bo is blog). Sina Weibo was launched in August 2009, and Tencent WeChat in April 2012, both support multimedia sharing including photos, music and videos. Sina Weibo is linked with Taobao; most popular Chinese ecommerce platform. WeChat has expanded the functionality from a communications platform to including payment gates, gamification, coupons and mapping/gps Video sharing platforms: Youku/Tudou Youku and Tudou are among the most popular video sharing websites in China, Youku is the leading video network in China. Tudou was ranked 5th in The two companies announced their merger into Youku Tudou Inc. in August Both offer user generated content, full length videos of TV series, TV shows and licensed movies from all over the world. Youku also broadcast its own original content. 19

20 CHINESE SOCIAL MEDIA 14 Key Opinion Leaders A The value and influence of Key Opinion Leaders (KOLs) in China is unprecedented in the West. Once again, heavily routed in Chinese culture, having the right champions backing a brand provides a powerful message and enables companies to reach target audiences in a very positive light. The investment in gaining the support of KOLS can pay for itself many times over. Consider KOL s as paid media. Internet Word of Mouth The growth of peer to peer knowledge sharing presents both an opportunity and a threat. The key to taking advantage of this fast paced environment is representation, engagement and honesty through Internet Word of Mouth (IWOM). WECHAT FACTS: At the beginning of 2014 WeChat had 396 million active users. Today, they have over 650 million, and over 1.1 billion registered accounts. More than 70 million users outside China, fastest growing social app in Africa. USERS BY AGE GROUP 11 WECHAT ACTIVITIES Text Messaging - 92% Voice Messaging 90% Moments Sharing 75% Group Chatting 62% 20

21 WECHAT APPS 41 APPS WeChat apps add functionality and create significant engagement for your WeChat Service and Subscription accounts. You can simply license our industry solutions, and with simply customizations you will be up and running fast and ready to engage your WeChat followers. If you want Digital Jungle to create a new app then no problem. Just let us know your requirements and we will build it for you E-COMMERCE Best-selling template for companies targeting China REAL ESTATE Promote real estate properties directly via WeChat HOTEL Serve your Chinese customers before and during their stay WECHAT SHOP 42 SHOP WeChat shop is a simple online shop which allows you to promote your goods to your personal WeChat circle. WeChat shop is a new WeChat function that creates ecommerce capabilities for businesses looking at reaching a WeChat consumer. 21

22 WECHAT PAY PAY WeChat payments started as a fun way to send lucky money to friends, but has bloomed into a disruptive systemover 200 million users have now bound their credit cards to WeChat, and that s within just 2 years of its launch. Now users can make payments in-store, via a WeChat shop or between users to purchase online goods, order room service and much more all without having to exit the app. As an official WeChat Pay Agent, Digital Jungle integrates WeChat Pay with WeChat shops and other WeChat services to better reach and deliver value to your followers. ECOMMERCE IS CHANGING THE WAY YOU DO BUSINESS IN CHINA 22

23 18/02/16 45 BUILD YOUR ECOMMERCE BUSINESS Many Chinese online shoppers are eager to purchase products from foreign brands, which they typically view as superior in quality to Chinese products. That offers a growth opportunity for many international brands and retailers. E-commerce in China grew by 31.4 percent, reaching a total market value of more than 13.4 trillion RMB ($2.1 trillion) in 2014, according to data released by the China E-Commerce Research Center (CECRC). Further in 2014, the Chinese government introduced a new policy on what it calls cross-border e-commerce (CBEC), which makes it easier for overseas brands to sell online in China. The policy legalizes the sales of products for personal consumption if the products are certified in the manufacturer s home country. Many Western brands accessed China s e-commerce market via Tmall and JD.com Global sites. This has a number of advantages but is definitely not right for all brands. There is no one-size-fits-all solution, as companies have different objectives and resources in their globalization efforts. UNDERSTANDING THE PROCESS 46 A 23

24 What s next for your business? Small Medium Large Localised Chinese website Localised Chinese website Localised Chinese website Work with association Weibo verified account Weibo verified account Wechat verified account Wechat verified account Full brand audit SEO optimisation SEO optimisation SEO optimisation SEM campaign SEM campaign SEM campaign KOL engagement Branded e-store Own E-Commerce Working together Brand building starts at the top the country, major cities, partnerships and regional cooperation. The inbound sector requires education and training on how to deliver service and hospitality to Chinese. Services should include basic amenities for Chinese visitors, free Wifi and links with Chinese social media and mobile applications, payment facilities for China Union Pay, Alipay and WePay. 24

25 OUR LOCATIONS 49 BEIJING 4/F, Beibiaodecheng Commercial Centre, No.25, Yonganli Middle Street ChaoyangDistrict, Beijing T: SHANGHAI SuiteA07, Block C, InfoShare Business Centre, No.905 Yu Yuan Road, Changning District, Shanghai T: LONDON Level 3, 207 Regent Street LONDON W1B 3HH United Kingdom T: SYDNEY Level 3, Suite Help street Chatswood, 2067 Sydney, Australia T: AUCKLAND Level 1 Suite B, 99 Hurstmere Rd, Takapuna Auckland, 0622 New Zealand T: Contact Roy Graff, MD for Europe to discuss your requirements roy.graff@digitaljungle.agency Phone: Skype: roy.graff_dj Wechat: geruye 25

26 PARTING THOUGHT 24 IF YOU WANT TO MARKET TO A CHINESE AUDIENCE THEN DIGITAL MARKETING IS THE OBVIOUS CHOICE 26