B2B Marketing in China
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B2B Marketing In China Xiaofeng Wang, Senior Analyst August 21, 2019 © 2019 FORRESTER. REPRODUCTION PROHIBITED. China is eclipsing the US and the EU-7 in digital *Source: Forrester Data: Mobile, Smartphone, And Tablet Forecast, 2017 To 2022 (Global) †Source: Forrester Data: Online Retail Forecasts, 2017 To 2022 (Asia Pacific, US, and Western Europe) ‡Source: Forrester Data: Online Retail Forecast, 2017 To 2022 (Asia Pacific); Forrester Data: Mobile And Tablet Commerce Forecast, 2017 To 2022 (EU-7), Q3 2017 Update; and Forrester Data: Mobile And Tablet Commerce Forecast, 2017 To 2022 (US) © 2019 FORRESTER. REPRODUCTION PROHIBITED. 2 The Forrester Wave™: Data Management Platforms In Asia Pacific, Q3 2019 Source: The Forrester Wave™: Data Management Platforms In Asia Pacific, Q3 2019 Forrester report © 2019 FORRESTER. REPRODUCTION PROHIBITED. 3 Key DMP (data management platform) players Australia China Vendors evaluated in Wave • Adobe • iPinYou with strong in-market • Lotame • nEqual presence* • Oracle • TalkingData • Salesforce Vendors evaluated in Wave Cxense • Adobe with limited in-market • Oracle presence** • Salesforce Additional vendors included • Amobee • Gridsum in Now Tech • Neustar • Hypers • Nielsen • iFLYTEK • Tealium *Strong in-market presence means that a vendor gets 10% or more of revenue in Asia Pacific from a specific market. **Limited in-market presence means that a vendor gets less than 10% revenue in Asia Pacific from a specific market. Source: Upcoming “Applying The Forrester Wave™: Data Management Platforms In Asia Pacific, Q3 2019” Forrester report © 2019 FORRESTER. REPRODUCTION PROHIBITED. 4 Domestic brands are now outperforming foreign ones in China © 2019 FORRESTER. REPRODUCTION PROHIBITED. 5 The 10 most relevant brands in China © 2019 FORRESTER. REPRODUCTION PROHIBITED. 6 Foreign brands are facing marketing challenges in China › Foreign brands are failing to keep pace with savvy customers • Lack deep customer understanding to localize products • Charge premium prices without delivering equivalent value • Fail to adapt promotions to a fast-changing digital ecosystem • Are slow to adapt their place strategy to local channel partners › Domestic brands' products and marketing are maturing strongly. › Customer preferences shift due to cultural affinity and other restrictions. © 2019 FORRESTER. REPRODUCTION PROHIBITED. 7 Understand the unique digital ecosystems and business culture © 2019 FORRESTER. REPRODUCTION PROHIBITED. 8 Leverage local digital tools © 2019 FORRESTER. REPRODUCTION PROHIBITED. 9 Alibaba Cloud Summit live streamed 167 sessions © 2019 FORRESTER. REPRODUCTION PROHIBITED. 10 Intel AI gives Chinese singer Li Yuchun 'new faces' in her music video © 2019 FORRESTER. REPRODUCTION PROHIBITED. 11 Recommendations › China-specific marketing strategies. › Local decision-making power. › Deep engagement with local partners. › Be nimble and adaptable. © 2019 FORRESTER. REPRODUCTION PROHIBITED. 12 B2B Marketing in Hong Kong and China Directing marketing at Hong Kong’s oldest and largest law firm Jayson Williams, Head of Business Development, Deacons Social Media ▪ Bringing social media and WeChat to the forefront Deacons’ WeChat journey Launched in June 2019 Posting of a variety of articles each week including legal alerts and firm-wide news such as our CSR activities, awards, event summaries, and media coverage Ensure content is relevant to a China audience or Chinese companies wishing to do business abroad Encourage departments within our business to contribute and approve content (establishment of an editorial board) Promote WeChat account to gain followers (website, email campaigns, LinkedIn, business cards, brochures) Educate, engage and training of staff Reviewing the China market & respecting its culture and traditions ** Check! Don’t make the same mistakes as the companies on the next slides!! Use accurate translations in your marketing campaigns • In the 1960s Pepsi was finding it difficult to connect with younger generations and was mostly viewed as a cheaper alternative to Coca-Cola. Naturally Pepsi wanted to change this perception, and succeeded with its campaign “Come Alive! You’re in the Pepsi Generation.” • Pepsi achieved success in Western markets and believed the campaign would translate to other markets. This may well have been the case - if they had gotten the translation right! Source: Dragon Social Beware the power of social media backlash • In 2018, Dolce & Gabbana launched three short videos on Weibo to promote its upcoming Shanghai runway extravaganza dubbed "The Great Show”. • The videos featured an Asian woman in a lavish Dolce & Gabbana dress attempting to eat pizza, spaghetti and cannoli with chopsticks. The videos purposefully mocked Chinese speech and culture. • The videos went viral on social media and within two hours, hundreds of Chinese actors and models who were due to walk the runway that evening had withdrawn. D&G's Chinese brand ambassador, boy band star Wang Junkai terminated his deal Comments included: with D&G. • "That's explicit racism. D&G is stereotyping China. [The videos] only show the brand's • D&G removed the viral videos from Chinese social media outdated view about China.“ within 24 hours of posting them. The drama was not over yet, though. Just hours before the show, a fashion blogger shared a screenshot of an alleged chat between designer Stefano Gabbana and an Instagram user in which designer Gabbana appeared to call China a "country of [five poop emojis]" and "ignorant dirty smelling mafia.“ Source: National Public Radio Avoid stereotyping • Nike’s 2016 CNY series encompassed the traditional Chinese New Year blessing words “發” (get rich) and “福” (fortune). However, when the two words are combined this translates to “getting fat”. • Many Chinese marketing strategies and campaigns implemented by foreign brands fixate on a stereotypical and often inaccurate and out dated image of the classic tradition of old China. • Chinese consumers expect brands to recognise its current modernity, instead of simply using superficial cultural clichés. Source: Dragon Social China Market localisation ▪ Localisation for the China market Overcoming challenges Cultural Legal Language challenges Diversity - Diverse team brings expertise and experience from different markets and professional backgrounds (Hong Kong, China, Taiwan, Australia, UK, Canada) Language - Strong language capabilities Motivation - Regular team socials help the team to communicate effectively with one another A Hong Kong perspective on Creativity – BD innovation labs high performing teams Culture – Proactivity Support – Showing the business supports the BD function fully Client focus – clarifying who our clients are! Our clients are our clients… Thank you and contact ▪ Thank you for attending today. If you would like more information, please contact us direct. Xioafeng Wang Jayson Williams Senior Analyst Head of Business Development Forrester Deacons Email: [email protected] Email: [email protected].