With China moving up to
become the world’s largest economy in GDP,
how Chinese people’s consumption behaviors have transformed with the new
digital ecological system, a growing local economy and the global integration
are important criticalities for any company to enter Chinese market.
1) Capacity Building
Over the last few years,
China has seen an explosion in the number of internet and mobile users. Rapid
development in communications infrastructure has provided millions of Chinese
access to broadband connectivity and 3G networks. Advances in technology have
enabled local hardware manufacturers to produce sub-$150 smartphones which have
become popular across China and are used by consumers for socializing, entertainment,
information search and shopping. This has given birth to a plethora of mobile
internet services in the country.[1]
2) Chinese Disparity
There are 618 m Internet
users across the country where 500m access Internet via their mobile phones,
with a 10% growth rate over the past year[2]. This is
about 80% of mobile internet users accounting for its total internet population
in China compared against only 60% in the US.
Over 70% of Chinese mobile
internet users have used m-commerce compared to about 31% in the USA. In
addition, more consumption will be coming from non tier-one cities. Ten years
ago, 40% of the spending power is from tier-one cities and this number is
reduce to only 20%[3].
3) Three Pillars of the
new marketing strategy
The growth of social media
and its popularity in China, or even in the global market, the new marketing
strategy should take into the followings considerations - speed of digital
sector growth, the competition in the market, and the requirement for OTO
integration.
Case Study[4]
Tencent
conducted a campaign with Mercedes-Benz around their Smart car line. A limited
edition version was made available only through WeChat. More than 600,000 users
followed the launch, while 6,677 qualified sales leads were generated. More
than 1,751 people paid a deposit on a Smart car through the app itself.
Most impressively, 338
Smart cars were sold within three minutes of the purchase option being made
available. This represented a staggering return on investment for
Mercedes-Benz, while it also showcased how flexible WeChat could be in
delivering marketing campaigns.
[1] Research and Markets: Chinese Mobile Media Digital
Marketing Strategies http://www.digitaljournal.com/pr/2040756
[2] We-chat Owner Tecent on China’s impact on
international marketing – not vice-versa
[3] We-chat Owner Tecent on China’s impact on
international marketing – not vice-versa
[4] We-chat Owner Tecent on China’s impact on
international marketing – not vice-versa
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