eye on china – andrea fenn

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An eye on China Social Media communication in the Middle Kingdom Milan/Shanghai, February 21, 2013

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Slides from the event: "Digital In The Round: An eye on China", February 21, 2013 – Milan.

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Page 1: Eye on china – Andrea Fenn

An eye on China�Social Media communication in the Middle Kingdom �Milan/Shanghai, February 21, 2013

Page 2: Eye on china – Andrea Fenn

Agenda�

who we are�how it all started�why you should care�looking ahead �

Page 3: Eye on china – Andrea Fenn

Who we are

Page 4: Eye on china – Andrea Fenn

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.

Page 5: Eye on china – Andrea Fenn

How it all started

Page 6: Eye on china – Andrea Fenn

Photo of backwards China!

Page 7: Eye on china – Andrea Fenn

Photo of wangba!

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Photo of SARS!

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Photo of automobile forums!

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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

Page 12: Eye on china – Andrea Fenn

10,000,000 (new Internet users per month)

Sources: CNNIC 2012

And increasingly more online

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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

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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

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Why you should care

Page 16: Eye on china – Andrea Fenn

Virtual media, real impact: how social media impacts perception, preference and decision of

Chinese consumers

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Source: Global Web Index, 2010

Recommendation from �a person in a bar

Consumer review on social website

15% 45%

What the Chinese trust

“ ”  

Page 18: Eye on china – Andrea Fenn

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

Page 19: Eye on china – Andrea Fenn

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

Page 20: Eye on china – Andrea Fenn

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

Page 21: Eye on china – Andrea Fenn

230,000+ (corporations have a registered Sina Weibo page)

Sources: Sina 2013

Page 22: Eye on china – Andrea Fenn

Sources: Sina 2012

From the most diverse industries

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你呢? (and you?)

Page 24: Eye on china – Andrea Fenn

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!

Page 25: Eye on china – Andrea Fenn

Bridge the gap: cultural differences make your brand obscure to China, but social media can

help you

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Images of fake brands

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Images of fake brands

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Images of fake brands

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Page 30: Eye on china – Andrea Fenn

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.

Page 31: Eye on china – Andrea Fenn

And sometimes misperception can take an uncontrolled extent

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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  

Page 33: Eye on china – Andrea Fenn

E-luxe: luxury consumption on social media, and how premium brands can benefit from it

Page 34: Eye on china – Andrea Fenn

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

Page 35: Eye on china – Andrea Fenn

Source: GroupM Hurun Media usage report 2012

40% of Chinese millionaires use microblogs

and 33% of them have more than

1,000 FOLLOWERS

Page 36: Eye on china – Andrea Fenn

80% of luxury consumers are under 45

85% of them already engage with premium brands online

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Sources: L2 Luxury Report 2011

An increasing number of premium brands uses social media in China

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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

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Burberry Case Study: championing communication in China through social media

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Burberry Case Study: championing communication in China through social media

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Looking ahead

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Trendcatching: What will happen in 2013

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Chinese social media are dominated by local players

Sources: Ogilvy 2012

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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  

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Smart group buying on Taobao: 305 cars sold in 89 minutes

Companies that localize their communication will be most successful

Page 46: Eye on china – Andrea Fenn

Lamborghini’s one million dollar car on Taobao

Companies that localize their communication will be most successful

Page 47: Eye on china – Andrea Fenn

But remaining true to oneself is key

Nokia International   Nokia China  

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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

Page 49: Eye on china – Andrea Fenn

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  

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Closing the loop: Can Chinese social media impact real business?

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How to use social media to

impact the �“last mile”?

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E-commerce in China has a very strong social component

48.7% have known about online shopping sites via friends and family

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And social commerce is quickly becoming reality in China

Page 54: Eye on china – Andrea Fenn

56% of Chinese luxury

purchases are made abroad, but only

58% Chinese

websites of international brands have U.S. or European store locator

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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

Page 56: Eye on china – Andrea Fenn

How some might be doing it soon

The Weixin online stylist  

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有问题吗? (got questions?)

Page 58: Eye on china – Andrea Fenn

Contact me:

email: [email protected] skype: andrew.fenn weibo: andreafenn