Top 10 Marketing Trends in China

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Elfrieda Bond
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1 Top 10 Marketing Trends in China

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3 Invented by: Raymond Samuel Tomlinson (a MIT PhD) Time: 1971 The first was sent by Mr. Tomlinson to a nearby computer through ARPAnet (world s first core network that came to compose the global internet, funded by US Department of Defense) First address: tomlinson@bbn-tenexa (BBN: name of Tomlinson s employer; tenexa: name of the operating system) Tomlinson was the first person to because this sign was not used very frequent anywhere else back then First message: QWERTYUIOP (Tomlinson commented later that test messages were entirely forgettable and I have, therefore, forgotten them )

First email address: tomlinson@bbn-tenexa (BBN: name of Tomlinson s employer; tenexa: name of the operating system) Tomlinson was the first person to put

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5 Time: Sep 14, 1987 The father of China Professor Qian Tianbai( ) First was sent to Karlsruhe University in Germany A prophesied message from China: Across the Great Wall we can reach every corner in the world A symbolic step for China to enter the internet age An image of China First

message from China: Across the Great Wall we can reach every corner in the

6 Some mega trends.

7 1 Marketing is still and will continue to be the dominate strategy to convert customers In USA Among the US enterprises surveyed, 85% of them said they will continue to use marketing as a primary way to convert potential customersin 2011; Compared with the survey conducted in 2010, the willingness of using marketing is simply increasing No big surprise, SNS has the fastest growing trend for marketersalong the side line Source: Chief Marketer 2011 How will US enterprises convert their potential customers in 2011?

with the survey conducted in 2010, the willingness of using email marketing is simply increasing No big surprise, SNS has the fastest

8 In CHINA: Marketing should also be the most powerful strategy for enterprises in China and will keep its sustainability in future A rich soil for -marketing, with 457 million netizens and an estimation of 302 million users in 2010 China users will continue to increase, expected to reach 375 million in 2013; formed an attractive client base for -marketing to tap into In fact, Chinese consumers are mostly inclined to be impacted by s; such shopping nature will not change in the short run Cross Countries Comparisons for consumers attitude of Product Purchase After Receiving a Marketing Source: CNNIC 2011, edialog 2010; iresearch 2010 (in % internet users in select countries)

client base for email-marketing to tap into In fact, Chinese consumers are mostly inclined to be impacted by emails; such shopping nature will not change in the short run Cross

9 2 Marketing is getting more and more mobile In US An increasing number of people will now use mobile phones, especially smart phones to access their s mobile users give primary concern to messages: statistics showed that in 1 hour, 25 minuteswill be dedicate to , 6.18 minutes on social sites, and the rest on various other activities Source: Nielson 2010

primary concern to email messages: statistics showed that in 1 hour, 25 minuteswill be

10 In China The tendency of Marketing adapting to mobile s users is also emerging More and more users are accessing s via mobile phonesin China Marketing needs to be designed and tailored for mobile users, i.e. fitting for small screen, quick and easy to read Market Scale of Mobile Users in China Source: iresearch 2010

needs to be designed and tailored for mobile email users, i.e. fitting for small screen,

11 3 Marketing is getting really social In US s sent to consumers are asked them to share among friends,face book and twitter Gilt :an online luxury retailer in US An example of Gilt s promotional to its customers Highlights: Ask consumers to invite friends, follow Guilt via Facebookand twitter

luxury retailer in US An example of Gilt s promotional email to its customers

12 Marketing in China is also embracing the social element, and will be a rising and strong trend So far only minority of the Chinese enterprises are integrating social elements into their advertising We expect more and more companies will follow this surging tide Ask customer to share the information via Kaixin001, Renren, QQ, Baidu, and Google Ask customers to become the fans of its microblogging sites on sinaand QQ

expect more and more companies will follow this surging tide Ask customer to share the information via

13 4 Unlike US, marketing strategy in China should be radiated to at least these top 5 SNS Certain unique landscape of China SNS decides marketing should be integrated with more SNS Unlike US in which Facebookaccounts for two thirds of market share (64.15%), China SNS market presented a dispersed and fragmented distribution marketing strategy in China should be radiated to at least these top 5 SNS Source: Eguan.cn2011, 1 st quater

Facebookaccounts for two thirds of market share (64.

14 5 Instant messaging is an incomparable rival of in China Internet Usage User Size Penetration Rate User Size Penetration Rate Growth Rate Search engine % % 33.1% Online music % % 12.9% Online news % % 14.7% Instant message % % 29.5% Online game % % 15.0% Blog % % 33.0% Online video % % 18.1% % % 14.6% SNS % % 33.7% Online literature % % 19.8% Online shopping % % 48.6% Forum/BBS % % 26.6% Online bank % % 48.2% Online payment % % 45.9% Stock exchange % % 24.8% Microblog % Travel booking % % 19.5% Group buying % - - -

4% 221.40 57.7% 33.0% Online video 283.98 62.1% 240.44 62.6% 18.1% E-mail 249.69 54.6% 217.97 56.8% 14.6% SNS 235.05 51.4% 175.87 45.8% 33.7% Online literature 194.81 42.6% 162.61 42.3% 19.

15 6 Open rate will be challenged by the inbox revolution In future the tough battle of marketing is about increasing open rate due to inbox revolution Waves of inbox Revolution will indirectly impact the way of doing Marketing in future Smarter inbox: prioritize all your incoming s, put your connectionsfirst, i.e. Yahoo mail Social Inbox of collaborate SMS, s and IM for all your contacts in one place Brand trust, attractive subject line and content relevancy are the keys to stand out

prioritize all your incoming emails, put your connectionsfirst, i.e. Yahoo mail Social Inbox of Facebook( @facebook.

16 7 The design of China Promotional s will catch up the similartrend in US, and shall be more stylish and personalized in the future as well So far the display of China promotional s are often not very attractive while also not well targeted at individual customer marketing comparison between Amazon.cn and Amazon.com Joyo Amazon.cn: A cookie-cutter style to the customers Amazon.com: a personalized to remind customer that her friend s birthday is approaching with an awesome shopping list

individual customer Email marketing comparison between Amazon.cn and Amazon.com Joyo Amazon.

17 8 marketing will increasingly become a dynamic and personalized content platform Continuously incorporate product review, recommendation and personalization technologies Videowill be a favorite tool to add into campaign as marketersbelieve it can significantly increase conversion rate Source: GetResponse 2010

personalization technologies Videowill be a favorite tool to add into email

18 9 is one of the primary Information sources for Chinese consumers is ranked the third most popular destination for consumers to acquire information in China Promotional s should still be a good channel for companies to reach their Chinese consumers Participation rate for Chinese consumers to acquire information via various channels in 2010 Source: DCCI 2010

emails should still be a good channel for companies to reach their Chinese consumers

19 10 -Marketing is the most favored advertising option for SMEsin China Due to -Marketing s cost minimization advantage, it will continue to be the best method for SEMsin China in the near future The usage rate of e-marketing options for SMEs in China 2010 Source: CNNIC 2011

continue to be the best method for SEMsin China in the near future The

20 For more than 30 years, L Atelier has been working as an innovation enabler for international groups and mid-cap companies. L Atelier provides to companies its expertise to identify and understand the major upcoming trends related to the digital economy. L Atelier is an independent consulting firm, part of BNP Paribas Group. L Atelier (Shanghai) Ltd. 哲翰管理咨询 ( 上海 ) 有限公司 asia@mail.atelier.net Phone: (8621) vision is the international leader in software as a service (SaaS) for , mobile and social media marketing. The vision mission is to provide excellence in software and services for online relationship marketing. With offices and client service teams in 18 countries, vision delivers 5 billion messages per month on behalf of 4,000 clients worldwide. This unprecedented quality of service is driven by 12 years of research and development and by vision s600 passionate employees. The company is privately owned by Francisco Partners. and

L Atelier is an independent consulting firm, part of BNP Paribas Group. www.atelier.

Fortune Cookies on China. Source: http://www.flickr.com/photos/news46/2199460575/in/pool-fortunecookie

Fortune Cookies on China. Source: http://www.flickr.com/photos/news46/2199460575/in/pool-fortunecookie Search Inside China Fortune Cookies on China Lies, Lies and More Lies: China s Online User Behaviors are like the West Source: http://www.flickr.com/photos/news46/2199460575/in/pool-fortunecookie News