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Chinese ecommerce: How brands are exploiting the O2O trend
Low Lai Chow, Warc Exclusive, December 2013
This article looks at the fast expansion of online commerce in China, which has been supported by widening internet access and an underdeveloped physical retail environment.
This article looks at the fast expansion of online commerce in China, which has been supported by widening internet access and an underdeveloped physical retail environment. Traditional retailers are being forced to adopt an "O2O" model, that is, offline-to-online and online-to-offline. This model is particularly relevant to the automotive category. Penetration of ecommerce does vary depending on the city, but despite low internet penetration and limited infrastructure, third, fourth and fifth tier cities still have vast potential for brands. Mobile commerce is also gaining ground, with the demand for mobile payments high. Examples of brands leading in ecommerce include Tmall, the online retail site, Burberry, the luxury goods manufacturer, and adidas, the sportswear retailer.
Busting "myths" about China's low-income consumers: Learnings from P&G
Low Lai Chow, Event Reports, Qualitative 360 Asia, November 2013
This event report looks at qualitative research conducted by Procter & Gamble as it sought to understand Chinese consumers living on less than $2 per day.
This event report looks at qualitative research conducted by Procter & Gamble as it sought to understand Chinese consumers living on less than $2 per day. The firm discovered that quantitative studies can sometimes be misleading, as shown by the gap between the number of people who own a washing machine and those that had a water supply allowing them to use it. Further "myths" included the assumptions that cheap products would automatically be preferred, that authority figures lacked influence, and that low-income consumers would have a limited input when it came to talking about potential innovations.
China's silver surfers
Theresa Loo and Sirius Wang, Admap, December 2013, pp. 42-43
This article discusses the changing behaviour of people aged over 55 in China, arguing that using age alone to target consumers is ill-advised as there is much diversity within this group.
This article discusses the changing behaviour of people aged over 55 in China, arguing that using age alone to target consumers is ill-advised as there is much diversity within this group. Older people in China tend to be more financially secure, active and digital-savvy than previously. A significant number of products older people consume are bought for them by someone else and marketing should allow for this. There is a strong tendency towards rational, money saving purchasing habits, but an exception is often made when purchasing for grandchildren. Older Chinese consumers are increasingly shopping online, presenting an opportunity for marketers to gather data and deliver appropriate communications.
The last word from the East: Solace and liberation
Barney Loehnis, Admap, December 2013, pp. 50-50
This article argues that marketers must fully understand the role of digital, social and mobile in Chinese people's lives in order to utilise them effectively.
This article argues that marketers must fully understand the role of digital, social and mobile in Chinese people's lives in order to utilise them effectively. Four tensions in China which are important to digital are explained: population shift to urban areas is splitting up families, with grandparents and children often left behind in rural areas; people expect their situation to improve financially and look for small signs and moments of joy to indicate this; growth in the elderly population is expected to put pressure on families; and the power of the internet will reveal food and product safety problems. Brands can take a role in alleviating some of these tensions.
Warc Trends: Asia Strategy Report - Explore the smartest thinking in Asian marketing
David Tiltman, Warc Trends, November 2013
The Asia Strategy Report explores the smartest thinking in marketing across Asia. The report demonstrates how smart strategy can unlock brand growth, global brands are rethinking their strategy to gain greater cultural relevance in the region, locally owned brands, particularly in India, are raising their game and social media is now the most-used channel in the region.
The Asia Strategy Report explores the smartest thinking in marketing across Asia. The report demonstrates how smart strategy can unlock brand growth, global brands are rethinking their strategy to gain greater cultural relevance in the region, locally owned brands, particularly in India, are raising their game and social media is now the most-used channel in the region. Across six chapters, it features all of the winning cases from the 2013 Warc Prize for Asian Strategy and puts the thinking behind them into context. The 18 featured brands include the Department of Tourism in the Philippines, Nike, Pepsi, Lifebuoy, Gillette and McDonald's.
India's soft power as its brand asset
Sangeeta Shrivastava and Pradeep Krishnatray, Warc Exclusive, October 2013
This paper examines the nature of India's 'soft power', arguing that this is a type of national branding, and compares India’s soft power to that of China.
This paper examines the nature of India's 'soft power', arguing that this is a type of national branding, and compares India’s soft power to that of China. Soft power is built on a country's culture, social values, domestic politics, and foreign policy. India is argued to have built soft power through culture, including the popularity of 'Bollywood' films and its cuisine, and through business, with Indian businesses and owners operating around the world. Bollywood, in particular, has helped India to build soft power in Africa and Asia, including the creation of opportunities to promote peace in Afghanistan. The country's low-cost approach to innovation has inspired businesses around the world. India's democracy, free press and independent judiciary are argued to be a soft power advantage over China, though poverty, illiteracy and corruption continue to hold back the country's reputation.
Celebrity in China: Five trends of influence building in the social media age
Penny Du and Sirius Wang, Millward Brown Asia, Point of View, October 2013
This article analyses how social media has changed the way celebrity branding influences consumers and provides recommendations for how to employ celebrities in this arena, drawing on examples from China.
This article analyses how social media has changed the way celebrity branding influences consumers and provides recommendations for how to employ celebrities in this arena, drawing on examples from China. It shows that there are no longer superstars that are universally loved, so there are no celebrities that have high influence across all media platforms. Instead, now many more celebrities have concentrated influence in their own small fields. Celebrities have also become more accessible, displaying personalities that fans are most able to relate to, which is also seen through the rise of talent show stars. Their social media usage has opened a communications channel that consumers are more likely to trust over traditional advertising. However, this also brings new risks, due to the lack of media control. Social media has also created its own grassroots celebrities, through the rise of 'trustworthy experts'. These have established followings in their particular fields and can often provide the best endorsement for certain marketing objectives.
Sharing shampoo socially
Prasanna Kumar, Admap, October 2013 , pp. 38-39
This article describes a campaign by Pantene, the shampoo brand owned by Procter & Gamble (P&G), that targeted young women in China by repositioning the brand as a 'natural' product.
This article describes a campaign by Pantene, the shampoo brand owned by Procter & Gamble (P&G), that targeted young women in China by repositioning the brand as a 'natural' product. Pantene enjoys a high level of brand awareness in China but younger consumers were increasingly trying the many new products entering the shampoo market. This same group of consumers are concerned about the environment and use of chemicals, and prefer 'natural' products. As a result of insight suggesting the target group liked to share experiences on social networks, Pantene launched a campaign encouraging consumers to share experiences of nature through a mobile phone app and a popular micro-blogging website. This was supported by geographically targeted promotions: promotions were pushed to users of the app when they were close to selected stores.
How to reach 'digital divas' in China
Low Lai Chow, Event Reports, Spikes Asia, September 2013
This event reports looks at the behaviour of "digital divas" in China. This group of female early-adopters makes up 18% of women who are now online in the country.
This event reports looks at the behaviour of "digital divas" in China. This group of female early-adopters makes up 18% of women who are now online in the country. They are also among the most digitally-savvy female internet users in the world. More specifically, they own more connected devices, share more content and are especially enthusiastic about ecommerce, whether that be for considered purchases or in categories such as soft drinks. Frequently, they have an online “alter ego” which brands must seek to understand, especially as this persona can frequently differ substantially from real life.
The drivers of digital media use in Asia: Findings from Social Media Matters
Low Lai Chow, Event Reports, Social Media Matters, September 2013
This event report looks at the drivers of digital media use in Asia. Research on the Chinese market shows the internet has a highly-distinctive character in the country.
This event report looks at the drivers of digital media use in Asia. Research on the Chinese market shows the internet has a highly-distinctive character in the country. This is particularly true of the social media space, where global players are usually blocked and consumers are hungry for entertainment, as well as information on subjects ranging from brands to parenting strategies. Mobile phone owners in Hong Kong, South Korea and Thailand are also extremely passionate about these devices, offering marketers a chance to engage them with interesting marketing programmes.
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