L E V E RAG I NG  HONG   KONG

FOR   BU S I N E S S  A C C E L E RAT I ON  

I N   C H I N A

Prof  Royce  Yuen            28.9.2016

HONG   KONG   I S  A S I A ’ S  WOR L D   C I T YT HE   I D E A L  HU B   T O  E X PAND   I N TO  A S I A

UNDE R   ON E   C OUN T RY  TWO   S Y S T EM SHK   I S   T HE   B R I DGE   AND   GAT EWAY   T O   C H I N A

CH I N A   I S   C R I T I C A L   F O R   G L O B A L  E X PA N S I O NCA S E   :   M O N T B L A N C ’ S   G L O B A L  F L A G S H I P         S A N L I T UN ,   B E I J I N G

B EWARE   O F   T HE   C U LT U RA L  D I F F E R E N C E

Be  aware  of  the  different  :

-­‐ Rules  &  regulations-­‐ Distribution   network-­‐ Competition-­‐ Culture-­‐ Consumer   taste  &  expectation-­‐ Understanding  of  your  brand

East,  Central

North  East

North,  North  West

South  WestSouth,  South  East

• Trend  &  fashion  conscious• Detailed,  discerning• Sociable• Ambitious  &  progressive• Femininity  influence

• Down-­to-­earth,  pragmatic• Hardworking• Flexible• Detailed• Entrepreneurial• Masculinity  dominate

• Modest,  down-­to-­earth• Straight  forward

• Friendly• Conservative

• Loyal,  patriotic

• Laid  back,  leisurely• Environmental  friendly

• Detailed• Femininity  influence

• Straight  forward• Outgoing• Explicit,  face  conscious• Ambitious  &  progressive• Masculinity  dominate

Understanding  the  Chinese  Consumers

1920 1930 1940 1950 1960 1970 1980 1990 2000

New  ChinaRepublic Jap  War

Manchukuo

CulturalRevolution

Xi’an  Event

Economic  reform

One-­child  policy

University  resumed

Great  Leap  Forward

Long  March3  yrs  famine

Economy  Take-­off

Age75+

Political  OrphanSuffered  all  major  wars  &  reformsFormative  years  in  early  PRC  –believer  of  communismPrime  years  lost  in  Cultural  RevolutionIdeology  dissonance  by  economy  reformBut  left  behind  on  economy  reform  – too  late  to  adjust  already

Age55-­75

White  Cats  Black  CatsHigher  education  interrupted  by  Cultural  RevolutionUse  of  guanxi  to  achieve  goalsFirst  batch  to  enjoy  economic  reformIdeology  shifts  from  socialist  to  capitalistThe  core  group  of  businessmen  of  China  today

Age37-­55

Connected  CapitalistFirst  batch  to  grow  in  an  open,  safe  environmentFirst  batch  of  “White  Collars”Embraces  consumerism  &  capitalism  to  the  fullestMaterialism  the  dominating  ideology

Age18-­37

Princes  &  PrincessesGrown  up  in  materially  abundant  environment  &  spoiled  by  1-­child  policySelf-­centricImmediate  gratificationWell  informed,  Internet  generationConfident,  aggressiveRisk  taking

Digital  era

Protected  digital  environment  with  BAT  dominating

2016

Age18

Lazy/  smart  economyKids  grow  up  with  digital  environment  +  princess/  prince  character.    Independent   and  heavily  influenced  by  social  communication

Digital  Take-­off

Understanding  the  Chinese  Consumers

1 0   S T RAT E G I C  C ON S I DE RAT I ON S  FOR   OP E N I NG  T HE   DOOR   O F  T HE   C H I N A  MARK E T

1. Market  entry  study

2. Local  partner

3. Local  production

4. Brand  localization

5. Customized  communications

6.      Channel  of  distribution

7. E-­‐commerce  &  m-­‐commerce

8. User  experience

9. Research  &  development

10. Effective  management  team

C A S E S T U DY ON E

BRAND  EVALUAT ION

• Childish  image• Not  attractive• Failed  to  communicate  its  innovation

BRAND  EN FORCEMENT

• Project  a  professional  image• Emphasize  its  scientific  and  patented  formula

• Make  it  more  appealing  and  trustworthy

C A S E S T U DY T WO

CO N VE R T I N G   T H E   YO UN G   A F F L U E N T   CH I N E S E  COM E S   F R OM   UN D E R D TA N D I N G  O F   W HO   T H E Y   A R E  

INS IGHT  ONEYoung  generation  is    no  longer  labeled  by  mono-­‐dimensional  definition

INS IGHT  TWOSocial  media  has  nurtured  a  sharing  community  and  people  are  cross-­‐fertilizing  hobbies  and  interest

INS IGHT  THREEPeople  want  the  “best  of  both  worlds”  hence  the  emergence  of  “fusion  food”  and  “4  door  sports  car”

INS IGHT  FOURStatus  is  no  longer  defined  by  “what  you  own”  but  “what  you  know”

T H E  D E R I V E D  CO N S UM ER  I N S I GH TH A S  CO N T R I B UT ED  T O  P R O DUCT  D E V E L OPM ENT  A S  W E L L  A S  

CU S T OM E R  E N GA GEME NT

C A S E S T U DY T H RE E

A S K I NG   C H I N E S E  C ON S UME RS  T O  TA K E  P I L L SI S AN   U P H I L L  B AT T L E

Step  1  – Invite  

S HOP   F RON T   R E S EMB L E S  T HE   L OOK  O F   A   C A K E  S HOP

Step  2  -­‐ Embrace

A  MORDEN   E N V I RONMEN T  A L L OWS  YOU   T O   C ONDU C T  S IM P L E  HE A LT HC HE C K

Step  3  -­‐ Immerse

C ON T EMPORARY  PA C K AG I NG  T U RN I NG   T H I S  I N TO  A   L I F E S T Y L E  E X P E R I E N C E

Step  4  -­‐ Remind

MU LT I P L E  C OMMUN I C AT I ON  T OU C H  P O I N T S

Step  5  -­‐ Reinforce

L I T E RATU RE  C ON T R I BU T E D  BY   HE L AT HC A R E  P ROF E S S I ONA LS

Step  6  -­‐ Consult

NU T R I T I ON I S T  O F F E R I NG   HE A LT H  T I P S

For  full  transcript  and

China  market  report,  please  contact  :

royce.yuen@malogic.xyz

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