eye on china – andrea fenn
DESCRIPTION
Slides from the event: "Digital In The Round: An eye on China", February 21, 2013 – Milan.TRANSCRIPT
An eye on China�Social Media communication in the Middle Kingdom �Milan/Shanghai, February 21, 2013
Agenda�
who we are�how it all started�why you should care�looking ahead �
Who we are
Andrea Fenn – 安仁
Strategy Director – Fireworks
Andrea helps brands build communication
strategies on Chinese social media.
As one of the early researchers of Chinese social media, he was one of the founding members of the Asia Pacific social media team at Ogilvy in Hong Kong.
Now based in Shanghai, he crafted and executed social media strategies for brands of the likes of Ford, Hennessy, Trussardi, Armani, Ferragamo, Bulgari, and more.
Prior to his work at Fireworks, he was a research staff specialized in Chinese social media at Leiden University, and a journalist for CNN and China Daily among others.
Andrea comes from Florence, Italy, lives in China since 2005 and is fluent in written and spoken Mandarin Chinese.
How it all started
Photo of backwards China!
Photo of wangba!
Photo of SARS!
Photo of automobile forums!
43% OF CONSUMERS WATCH LESS TV (between 2008 and 2010)
PRINT VOLUMES DECREASE BY 10.4% A YEAR (to go down 20% by 2014)
Sources: CTR China, DCCI 2010
Chinese are not on traditional media anymore
10,000,000 (new Internet users per month)
Sources: CNNIC 2012
And increasingly more online
MORE PEOPLE USE WEIBO (than live in the United States)
Sources: CNNIC 2013
With 54.7% increase in 2012, now 58.7% of Chinese internet users have weibo
300m WEIXIN USERS (up by 100m in just four months)
Sources: Tencent Tech 2013
And there is already a new star in the social media sky
Why you should care
Virtual media, real impact: how social media impacts perception, preference and decision of
Chinese consumers
Source: Global Web Index, 2010
Recommendation from �a person in a bar
Consumer review on social website
15% 45%
What the Chinese trust
“ ”
Users joining Social Networks for information about brands and products
Source: TNS Digital Life Report 2010
Chinese are most eager to look for corporate information online
Sources: CNNIC 2012
77% of Chinese web users believe a social media presence makes a brand more attractive
Chinese social media are a powerful way to reach out to audiences
Source: OgilvyOne Connected Report 2010
42%
27%
18%
13%
Consider purchasing product
Purchase product
More aware of product
Recommend product to others
After a positive brand experience online
And to obtain a tangible return
230,000+ (corporations have a registered Sina Weibo page)
Sources: Sina 2013
Sources: Sina 2012
From the most diverse industries
你呢? (and you?)
Car brands and “social media homework”
Sources: real online conversations, April 2011
My new steering wheel, exactly like the 2.0l
version!
I attach here the fuel consumption table of
my little Focus… Just added xenon lights, looking good!
Bridge the gap: cultural differences make your brand obscure to China, but social media can
help you
Images of fake brands
Images of fake brands
Images of fake brands
To be frank, there are too many LV fakes,
which does not make me look good even if I carry
a real one.
In China, LV bags are so in bad taste that even cleaning
ladies own at least one.
Sources: real online conversations, May 2012
Listening to Chinese audience can teach you unexpected things
The difference between Armani and Zegna? That Armani is a real Italian
brand, while Zegna is a brand created by Wenzhounese and sold as Italian.
And sometimes misperception can take an uncontrolled extent
And a more tailored communication strategy to your specific audience
From Zero… …to Hero. 183m media impressions on Sina Weibo at the Beijing Fashion Show in May 2012
E-luxe: luxury consumption on social media, and how premium brands can benefit from it
Source: Tencent 2012, Sina 2012
Social media is increasingly a gentrified platform
27.0%
24.0%
9.1%
7.2%
6.6%
6.3%
6.0%
4.2%
3.6% 3.3% 2.7% 大学生
IT行业
私营业主
制造业
金融房产
政府部門
电信网络
服务行业
传媒娱乐
能源采矿
农林化工
67% of Weixin users are white collars
Weibo users earn 30% than the average
chinese
Source: GroupM Hurun Media usage report 2012
40% of Chinese millionaires use microblogs
and 33% of them have more than
1,000 FOLLOWERS
80% of luxury consumers are under 45
85% of them already engage with premium brands online
Sources: L2 Luxury Report 2011
An increasing number of premium brands uses social media in China
Burberry spends 60% of its marketing budget in digital in China. In 2011, Burberry sales in
China went up 30%.
In a BBC interview, CEO Angela Ahrendts said: “You have to be totally connected with
anyone who touches the brand, if you don’t do that – I don’t know what your business model is
in five years”
With visible effects on their business
Burberry Case Study: championing communication in China through social media
Burberry Case Study: championing communication in China through social media
Looking ahead
Trendcatching: What will happen in 2013
Chinese social media are dominated by local players
Sources: Ogilvy 2012
And will continue to be in the near future
The War of the Wei
• One-to-many communication with the general public
• Only able to share short messages and news
• Can gather large fan base
• One-to-one communication with individual customers
• Able to share longer messages
• Narrow but precise fan base; fans can share more information with the brand
Weibo Weixin
Smart group buying on Taobao: 305 cars sold in 89 minutes
Companies that localize their communication will be most successful
Lamborghini’s one million dollar car on Taobao
Companies that localize their communication will be most successful
But remaining true to oneself is key
Nokia International Nokia China
E-commerce is continuing to grow
27.18 55.37
107.48
177.4
284.84
372.73
457.6
0
50
100
150
200
250
300
350
400
450
500
2010 2011 2012 2013 2014 2015 2016
China E-commerce sales volume, in billions US$ 2010 – 2016 (projection)
Source: eMarketer, November 2012
But a monopolized market makes it hard for standalone brands to succeed
One pre-purchase search platform
One e-commerce conglomerate
Just a few social media platforms for post-purchase discussion
Closing the loop: Can Chinese social media impact real business?
How to use social media to
impact the �“last mile”?
E-commerce in China has a very strong social component
48.7% have known about online shopping sites via friends and family
And social commerce is quickly becoming reality in China
56% of Chinese luxury
purchases are made abroad, but only
58% Chinese
websites of international brands have U.S. or European store locator
A long-term vision for premium brands to utilize Weixin to nurture their top audience, increase their loyalty towards the brand and ultimately encourage sales.
Trigger
Evaluate
Purchase
Post-purchase
Using Weixin to close the social loop
How some might be doing it soon
The Weixin online stylist
有问题吗? (got questions?)
Contact me:
email: [email protected] skype: andrew.fenn weibo: andreafenn