For all too long, marketing has focused on customer satisfaction as the end goal. But ‘satisfaction’ should be the basic goal. By delighting a customer, you have the opportunity to create far richer engagement, greater conversions and a higher degree of loyalty.

But although ‘how do we delight Chinese customers?’ is the right question to ask, it’s essential to remember that China is a vast, complex and extremely differentiated market, and the attributes and trends that may define your Western audiences won’t necessarily map across to your Chinese target markets.

The importance of good Chinese market research

Good market research is the foundation of all targeting, positioning and overall marketing to the China market, but there are certain things you can learn in advance and bear in mind as you become more familiar with your Chinese customers. China is a blend of the ancient and the modern, it is a rapidly moving and evolving market and it’s a fascinating one too. Here are some things that every Western marketer should know when considering how to delight their Chinese customers.

Ways to delight Chinese customers

1. Show that you really understand your target audience

Over the years, many Western brands have made the mistake of trying to simply shoehorn their Western campaigns into Chinese markets. At best, these efforts simply have no benefits, but at worst they can be offensive. It’s essential to show understanding and respect to your Chinese target audience by researching their needs, wants and desires first, beyond basic demographics.

2. Be culturally aware

The Chinese culture is extremely contextual and driven by symbols, ideas, traditions and concepts that are largely unfamiliar in the West. For example, the Chinese festival calendar includes far more festivals than most Western nations celebrate. Colours, numbers and dates have different significances, and often contradict each other between East and West. For example, white is a symbol of purity and joy in the West, but is associated with death and mourning in China, and is considered unlucky.

3. Make things easy

Chinese customers are used to engaging with the most cutting-edge levels of technology and the types of apps, platforms, social media and websites that they are used to often far exceed comparable digital experiences in the West. Chinese customers are heavy smartphone users and they expect faultless user journeys, with familiar technologies such as Chinese social media platforms and payment processing software. As a Western brand, you can greatly enhance engagement, as well as your brand’s reputation, by making sure your digital assets are as smooth, seamless and trouble-free as possible.

The key to getting this right? Using a Chinese digital marketing agency that can optimise every element, from ensuring your Chinese characters load quickly and correctly and that your user journeys map Chinese reading patterns, to checking that your website is correctly hosted and in line with strict censorship protocols.

4. Integrate your digital assets

Similarly, it’s vital to ensure your digital assets – website, app, social feeds and so forth – are integrated into a single, clear and holistic digital ecosystem that allows your customers to easily move and switch between different forms of content and functionality.

5. Go the extra mile

Depending on their age, socio-economic grouping, location, income band and education, your Chinese customers will have certain demographics that are distinct. This allows you to delight them in meaningful ways. Some customers will love perks such as branded digital games, digital stickers, phone filters and other online gimmicks or competitions. Others will adore shareable, viral content, and other groups will be looking for benefits such as special edition product launches to tie in with festivals, personalisation or ‘freebies’ such as beautiful complimentary gift wrapping, miniature sizes and thoughtful extras.

Chinese customers are sophisticated and extremely able to find alternative products and services from competitors. Many are now seeking brands that are ethical, sustainable and have clear values that are in line with their own. This offers as many opportunities to Western brands as it does challenges. For example, Quality Western brands can leverage their heritage and luxury brand values to great effect in this market, as many Chinese customers have been stung by cheap counterfeit goods.

6. Show that you listen

Sophisticated Chinese customers want to feel heard – and responded to. So when you create social content, be sure to engage with it in a meaningful way. When you collect feedback, take the time to respond to it with either thanks or a commitment to improve and resolve any issues. This shows that you really value your customers and it can be a powerful strategy for building their trust and loyalty. As part of this, consider adding elements of automation for feedback collection, thank you notes and other touchpoints, and speed up your response times when it comes to providing human engagement.

7. Create the right content

Content is king in China, much like it is in the West. So poor translations or cheap dubbing will instantly turn off the very customers you want to attract. Either localise your content with the expert help of a Chinese marketing agency or take the time and investment to generate your own targeted, Chinese-language content that is truly designed to meet the needs of your Chinese customers. They will appreciate the consideration and respect.

8. Have values

Many of today’s Chinese customers are ethical consumers who are interested in shopping with brands that are environmental, sustainable and ethical. So be clear about your values and humanise your brand as much as possible by sharing the good things that you do, promoting your people and making your brand individual, personable and meaningful. This will attract and engage young, sophisticated Chinese customers with an international outlook.

Find out more

Keen to learn more about effectively delighting your Chinese customers? Market Me China can help you to get it right! Please contact our team for a chat about your needs, and to find out how we can help you to find success in this vast, challenging and extremely attractive growth market.

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Unfortunately, that’s just not the case! China isn’t just a vast, complex (and lucrative) market – it’s also very different from the West in terms of its cultural factors. The better you can understand these different cultural differences and nuances, the more effectively – and successfully – you can market your products and service to this fast-growing market.

What to know about Chinese culture

Chinese culture is incredibly nuanced, and it’s a fascinating blend of the ancient and traditional and the incredibly modern. For example, in the West, we may instantly think of dragons, festivals, fireworks and complex history, but the reality is that China is also one of the most cutting-edge nations when it comes to digital marketing, social media, AR, VR and technology in general. This is truly a nation that embraces the new whilst cherishing its history – and this represents fantastic opportunities, and challenges, to Western marketers.

If you are new to digital marketing in China, did you know that colours and numbers have a far higher degree of significance than they do in the West? For example, in China, white is associated with death and funerals and the number eight is considered the luckiest number. There are layers of symbology to consider too. The number three is considered to be neutral or positive in most situations, but not in relationships, where it signifies being apart.

Along with these cultural factors, there are local or geographic differences not to mention generational differences that marketers need to know about. For example, older luxury lovers may still prefer more traditional advertising campaigns in China and turn off from the types of ‘sulky-faced’ models that we see in Western advertising campaigns. But younger Chinese customers may enjoy the cosmopolitan and international feel of these types of aesthetics.

A case study: Why luxury matters

‘Mianze’ or ‘face’ is a central concept in China. It means prestige or social standing and is incredibly ingrained in the culture, encouraging Chinese customers to buy things (including services such as education) that showcase their success. This translates into high demand for luxury goods and other kinds of status symbols, such as overseas travel and children studying in high-profile Western universities.

Because of this love of luxury, Chinese customers also value designer Western brands because they are authentic, are of top quality and have heritage. In a market that has often been flooded with counterfeits, these are brand values that Western marketers can leverage for success.

Case study two: festivals matter

In the West, brands often run special promotions for occasions such as Christmas and Valentine’s Day. But in China, the festival calendar is packed and it includes plenty of festivals that aren’t celebrated or recognised in the West. Successful brands know that they can delight customers and grow their sales by launching exclusive products, personalisation and collections that celebrate Chinese festivals. For example, for Chinese New Year, many brands repackage their products in holiday red. Maybelline launched its ‘Red on Fire’ lipstick series, for example, which included Chinese zodiac signs and characters printed across the packaging and product.

Ways to be more culturally sensitive when marketing in China

There are various ways to become more culturally sensitive when you market in China. One of the most important focus areas is to choose your medium and messaging extremely well. Here are our top tips for success:

1. Do your market research carefully

Before devising and launching a Chinese digital marketing campaign, carry out targeted research on your intended audience to really understand their characteristics, likes, wants, needs and turn-offs. You can then use this to create your user persona.

2. Localise your content

Where you already have content that you plan to map into the Chinese market, spend time carefully localising it so that it is relevant, culturally sensitive and of very high quality. Chinese customers are used to rich, immersive and cutting-edge digital experiences, so they are likely to turn off content that doesn’t meet their needs and expectations.

3. Use the right platforms

Most Western marketers know that social media is huge in China, but it’s also vital to know which channels will work best for your China. For example, younger users love Douyin (TikTok), and most people are on WeChat and Weibo. Little Red Book is particularly popular with affluent, educated younger women who want to know about experiences, travel, fashion, beauty and luxury.

4. Understand changing trends

In the West, women led the #MeToo movement, but in China, the younger generations, in particular, have forged ahead with a drive to achieve financial independence and to break traditional gender norms. For example, SK-II launched its #ChangeDestiny campaign which encouraged unmarried Chinese over the age of thirty to feel in control of their destiny, happy to be single and ready to enjoy successful, financially independent lives.

However, it is very important to avoid taboo topics such as politically sensitive content. Only recently a number of global brands including Zara and Delta Airlines were forced to change their websites after they categorised Taiwan and Hong Kong as being separate from China.

5. Use a Chinese digital marketing agency

When you use a Chinese digital marketing agency, you can fast track towards digital marketing success in China. At Market Me China we have a team of highly experienced, knowledgeable Chinese digital marketing professionals with native language skills. Our team works with your business on a flexible basis to deliver culturally sensitive, impactful marketing campaigns that really work – attracting target Chinese customers, and building long-term profitable relationships with them for ongoing success.

To find out more, please contact us for a no-obligation chat about your needs and your business. We look forward to hearing from you!

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But many forget to consider the essential topic of cultural sensitivity. And when you market in another country without the necessary cultural insights and sensitivity, it is extremely easy – and expensive – to make mistakes!

For example, are you aware of which colours, numbers and symbols should be avoided in Chinese marketing? Are you also aware of how contextual the Chinese language is? Let’s look at some of the challenges in closer detail…

Case studies – Western brands that got it wrong

Dolce & Gabbana, the luxury Italian brand, fell foul of Chinese social media after releasing an advertising campaign in 2018 that was felt to be offensive. The adverts showed a Chinese model trying (and failing) to eat Italian food with chopsticks, and many Chinese customers felt that it was racist and insensitive. (Particularly as modern Chinese people are extremely sophisticated, well-travelled and educated global consumers.) AS a result, various Chinese retailers pulled the plug on the brand’s products and the company lost sales in China.

An older, but legendary example of a huge brand that got things very wrong, relates to a campaign run by Pepsi some years ago. It previously had difficulties connecting with younger customers, who saw its products as being inferior to Coca-Cola. So Pepsi planned to change perceptions with a campaign that invited customers to “Come Alive! You’re in the Pepsi Generation.”

Unfortunately, despite success with this messaging in Western markets, Pepsi inaccurately translated the message to say that its drink ‘brings your ancestors back from the dead’! Not ideal…

Easy mistakes to make when marketing in China

1. Piling on ‘traditional’ Chinese cultural images and motifs

Prada’s expensive holiday campaign flopped after it bombarded viewers with outdated outfits, an excess of red colours and visuals which its viewers complained were more appropriate to a horror movie! Remember, Chinese customers are sophisticated. Yes, they love holiday red but don’t make the mistake of piling on Chinese dragons, red lanterns, blue porcelain, phoenixes and so forth. You wouldn’t simply market to an American with images of cowboys, burgers and the Stars ‘n Stripes!

2. Misusing numbers

Did you know that the number four is one of the unluckiest in Chinese culture – because it sounds like the word for death. Other homophones – or superstitious numbers – can be good or bad depending on the context (a nod to the number five here!) But the number eight tends to be a lucky number in China, which implies prosperity and is usually used in the product prices, such as 668 RMB, 888 RMB, 928 RBM; and the number six, and multiples of six, are considered lucky – unlike in the West where 666 is associated with horror films!

3. Getting colours wrong

Did you know that you should be very careful about using the colour yellow in your marketing campaigns? In China, ‘yellow’ types of media are pornographic, and other uses of yellow are historically associated with emperors and reserved for royalty! And did you know that you should never use white for a product launch? As for gold and red – colours which Western marketers instinctively go for – these are very popular in China, but discretion and care must still be used or your campaigns can look cheap and gaudy. Expert advice from a Chinese marketing agency can really help you in this area!

4. Symbolism

Just when you thought things couldn’t be any trickier… did you know that in China, a black border around a photograph means that the person shown in it has died? Or that an individual shown wearing a green hat doesn’t know that his/her partner is cheating? Or that white gift wrap is suggestive of death? Did you also know that there is nothing worse than a holiday campaign showing models with miserable faces (more than one luxury Western fashion brand has fallen foul of this by using ‘sulky face’ family adverts!) Chinese culture is still extremely symbolic and it helps to work with a native Chinese marketer to avoid these kinds of cultural faux-pas – noting that symbolic meanings may vary across generations and regions in China too.

Positive steps to take to avoid cultural insensitivity

1. Really research your audience and market before launching a new campaign
2. Seek to understand and respect cultural differences
3. User test your campaigns with a small, discreet (& understanding!) audience of Chinese customers before launch. This could very well be a Chinese digital marketing agency with native staff, such as Market Me China.
4. Research China’s history, customs and ideas of beauty – which are often very different to modern Western ideals.
5. Adapt product formulations where necessary for beauty, food, beverages and so forth – and be mindful of Chinese differences for clothing sizes and average height.
6. Leverage your Chinese social media channels for market research, early feedback and community building – not just for push marketing.
7. Avoid errors by using a Chinese marketing agency!

The value of using a Chinese marketing agency

A Chinese marketing agency can help you to avoid the challenges of cultural differences, and help you to market in a way that is sensitive, compelling and culturally appropriate. It is incredibly easy to make a mistake when marketing to any new market, especially in a culture as large, ancient, diverse and intriguing as China – and your errors will only be amplified in China’s immediate, digital world where vast numbers of customers can instantly learn about ‘insults’ or cultural insensitivity – no matter how inadvertent!

Given the time and expense involved in any overseas marketing campaign, it makes sense to use a native, specialist marketing resource to advise on the cultural elements of your branded communication and ensure that they hit the mark with your Chinese target audience. Remember, a bad campaign won’t just cost you short-term money – it will also damage your brand; possibly for the longer term.

The help you need

Market Me China works with businesses across all sectors – but especially e-commerce, education, B2B, and travel – to help them create powerful, impactful and resonant marketing strategies that build their brands successfully in the Chinese market place for real returns. We can work on a digital environment and flexibly, according to your needs. Please contact us in the first instance and we will be delighted to assist.

The post When marketing in China – are you culturally aware? appeared first on Market Me China®.

1. The China market is huge

According to CNNIC The 43rd China Statistical Report on Internet Development in Feb 2019, there are now 829 million internet users in China by December 2018, and 817 million mobile internet users in China by December 2018, accounting for 98.6% of the total internet users population. To put this into context, compare the figure to the USA, where an estimated 300 million people are online.

2. The market is growing incredibly fast

The market may already be huge, but it is experiencing rapid further growth thanks to China’s tier 3 and tier 4 cities now coming online. The urbanisation of rural areas means that incomes – and rural middle classes – are growing. With physical retail stores in limited supply, these customers are particularly motivated to shop online.

3. Chinese internet users are sophisticated

Chinese internet users are highly sophisticated. They prefer to use their mobiles to access digital content and to shop – and they expect omnichannel marketing from their preferred brands. They like to use trusted online payment systems to make instant online payments. They also love social media and are excited by digital innovation.

4. Chinese customers like Western brands

Western brands are seen as being desirable and of high quality. Bear in mind that China has long had a problem with counterfeiting, so authentic Western brands are seen as being trustworthy. Brands which can build up their presence in China can leverage this sense of quality to build profitable, long-term relationships with their customer base.

5. Digital marketing channels in China are different

In the West we may talk about Google, Facebook, Instagram, Twitter and Snapchat – but in China, native social and digital channels are different – and their volume dwarfs Western equivalents! Platforms to know include Baidu, WeChat, Weibo, YouKu, Douyin, Little Red Book.

6. Chinese customers like to research

Chinese customers are active on forums, social media, in their own networks and offline when it comes to discussing brands. This means that Western brands must work hard to build consistent, trusted and attractive brands that meet the needs of their target Chinese audience. Brand equity is extremely important in China.

7. KOLS are big news

We have influencers in the West – and China has Key Opinion Leaders (KOLs), who can be extremely powerful. Followers actively value the opinions and recommendations of the KOLs that they follow. Some KOLs even receive gifts from appreciative fans who want to thank them for the services that they offer. Authentic, established and trusted KOLs are big business and can offer excellent partnership and sponsorship opportunities for Western brands.

8. Chinese customers appreciate online advertising

In the West, customers tend to view online advertising in a negative way; seeing it as intrusive and irritating. But Chinese customers often value well-placed and relevant advertising and see it as adding value to their online decision-making process. This links into the Chinese tendency to research potential product or service purchases in-depth beforehand.

9. Numbers, colours, dates and symbols matter in China

You’ll need to know your lucky numbers, colours and symbols in China (and, conversely, those unlucky ones!) in order to market successfully to Chinese customers. This requires local knowledge and insight, which can be provided by a Chinese marketing agency. Get it right and you’ll tap into native feelings of goodwill, luck and success. Get it wrong and you could accidentally cause offence and cause your entire campaign to fail!

10. Chinese has mega shopping festivals that dwarf Black Friday!

The Chinese shopping festival of Singles Day, held on 11 November, delivered sales of over $30 billion in 2019 and dwarfed Black Friday and Cyber Monday in comparison. Around 500 million users made a purchase on the day, spending an average of $181 each. The country has plenty of other big festivals for Western brands to take advantage of as well, including Double Seventh Day (Chinese Valentine’s Day), Chinese New Year, Women’s Day, Children’s Day… and now, increasingly, Christmas!

11. Content matters all the more in China

We’re used to hearing that ‘content is king’ in the West, but it’s even more important in China, where customers are often less price-sensitive, and more interested in the brand experience. In a country where brand loyalty is the holy grail, companies must work hard to deliver engaging, quirky, fun and compelling campaigns across a range of channels. Chinese customers love social campaigns (and integrated social commerce), online competitions, gamification, VR, AR and any kind of technological innovation. This fact also has implications for Western content translation. In most cases, it will be preferable to create targeted China market content for the best engagement and returns. Where existing content is to be translated, it should be done as part of broader content and channel localisation efforts, to ensure that the brand’s website and other digital assets all work as they should in China.

12. Brands must master Baidu

As China’s main search engine (with more than 80% of online search queries), Western brands must build their online rankings and presence through Baidu’s tools – from SEO to PPC, to Baidu Wiki (the equivalent of Wikipedia in China). The conversion rates of Baidu SEO and PPC can be excellent when the right campaigns are implemented and Baidu Brand Zone is also successfully used by many larger Western brands to unlock value. Again, the key lies in having access to a knowledgeable Chinese online marketer who can create, refine and manage Baidu campaigns for maximum ROI.

Get the help that you need

Whether you’re a new company looking to break into China with your e-commerce offer or an established brand looking to grow your Chinese market, our team of digital marketing professionals are here to help. We work on a flexible basis to provide access to the skillsets that you need – from Chinese online campaign planning through to delivery and post-campaign evaluation. We work with clients from across all sectors, but particularly e-commerce, education, travel and B2B. Please contact us to find out more.

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At first glance it seems as though a frantic American coffee chain would be the worst possible idea for the Chinese market, where consumers mainly drink tea and want to take things at a slower pace. So how did a company, that on paper should have failed, launch its business in China?

Adaptation is key to doing business in China

In order to succeed, Starbucks has customised its menus so that it is offering Chinese consumers something they actually want – as well as local teas and treats, it provides plenty of space to sit and relax. But Starbucks adaptation to the market goes beyond the products it offers. It has taken Chinese culture into account; food items are labelled with their country of origin to address food safety concerns, and they often hold events where their employees’ families can meet the managers and discuss career opportunities.

They looked before they leapt

Starbucks was careful to conduct thorough market research in order to position itself in a way that complimented Chinese culture rather than contrasted. In a large tea-drinking market, heavily marketing coffee chains could have been seen as an aggressive move. Instead, through market research, Starbucks identified key elements of Chinese culture – such as the aspirations towards Western values and lifestyles – that allowed them to present the correct side of their brand identity in order to attract their target market. It wasn’t changing who they were, as they wanted to keep their identity unified across all their markets; Starbucks just chose the right facets of their brand to present to the Chinese market.

Knew where their weaknesses lay

China’s market can be complicated. The cities are divided into a four or six-tier system, categorized by their populations, spending, and political influence. Coastal cities are usually the most affluent, with those inland being lower down the scale. In order to ensure it understood the market, Starbucks enlisted the help of three local partners in different regions in China. The partners Starbucks chose were Beijing Mei Da in northern China, Taiwanese company Uni-President in east China, and Maxim’s Caterers – a Hong Kong firm – to cover southern China. These partnerships gave Starbucks invaluable understanding and knowledge of the local markets (source: Forbes).

What all the businesses that have succeed in China have had in common is that they have taken the time to understand the market. They have recognised that the market is very different, as well as very lucrative. That knowledge alone gave them a strong foundation from which to launch a winning strategy that has allowed them to succeed at business in China.

(Image source: “Starbucks Coffee Cup” | www.freedigitalphotos.net)

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MSN China launches with Chinese website to heighten MSN experience

Microsoft launched MSN China in 2005 by teaming up with domestic company SAIL (Shanghai Alliance Investment Ltd). Although many internet users in China were already using MSN messenger and Hotmail email services, the launch of MSN China aimed to give them a stronger user experience by creating a portal specifically focused on Chinese users (source: Microsoft). Teaming up with a domestic company awarded them greater market insight, and by optimising their offering for the market with a dedicated Chinese website, Microsoft gave themselves a strong foundation from which to launch their offering to the Chinese market.

China’s strict regulations get Microsoft in hot water

How you deal with regulations whilst doing business in China is vital to your success. While Microsoft’s troubles may not be relevant for you, they highlight for any business owner the fact that the local laws can be as much of a PR issue as a legal one. Microsoft found this out the hard way. When it launched its MSN Spaces free blogging tool it decided to abide by the Chinese government’s strict censorship rules, banning users from posting content including words such as ‘freedom’,  and ‘democracy’ (source: The Guardian). This caused widespread discussion, with Western media devoting a lot of attention to the software giant’s actions.

Microsoft partners with popular domestic social network

In August 2011, Microsoft and RenRen announced a new agreement to provide universal access to the two platforms using one login. This allowed the messaging app and social network to closely integrate their features, meaning photos and status updates could be shared across both platforms. This came just a month after Microsoft announced that they had partnered with Baidu to offer English language search functionality for the platform (source: Reuters). Being able to work together with a local firm to create a combined offering can help you to reach local customers and use your partner’s trustworthiness to build a reputation and loyal customer base.

Tailoring product offerings to different markets

In 2012 Microsoft replaced MSN Messenger with their newly acquired Skype in every country in the world apart from China. Ranking fourth in the instant messenger market in China, MSN held a 4.56 per cent share. At its peak, there were 20million users, with the service being favoured by white collar workers, although by 2013 this number had dropped to 15million as rival domestic messaging services like WeChat, QQ, and Sina Weibo challenged MSN’s popularity. In a surprising move, MSN China even released a standalone app for Windows phones (sources: Global Times, China.org, WP Central). Not all Microsoft products have gone down well in China, but by recognising the ones that do and partnering with influential players in the market, they have managed to gain and retain a market share, even if it has not been as successful or as simple as the corporation may have hoped. (Image source: “Internet Explorer Icon” | www.freedigitalphotos.net)

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Coca-Cola expands into China twice

It was in the 1920s that Coca-Cola first entered the Chinese market. However the rise of communism following World War II forced foreign companies to withdraw from the country. When China was opened once again to foreign investors in 1979, the company was the first American brand to open up distribution in the country (source: Just Drinks).

At the time China’s soft drinks market was in its fledgling first stages. In 1980 the market produced 288,000 tons of product. 27 years later, the figure had increased by 176 times (source: Eastday). Currently, Coca-Cola dominates the soft drinks market in China, with a share of over 50%. It also boasts a 12% share of the fruit and vegetable juice market (source: Forbes).

Recognising potential for doing business in China

The fact that Coca-Cola entered China’s soft drinks market at a time when it was only just developing gives us a key insight into the company’s focus, and provides a valuable learning point for anyone considering marketing in China.

When it comes to overseas expansion, a lot of companies focus on Beijing and Shanghai. These are the most developed areas with the biggest existing markets (source: Forbes). However, this makes competition fierce, and the market is crowded. What Coca-Cola did, and still continues to do, is consider the potential of growing markets. They build bottling plants in developing areas, such as Hebei. With a population in excess of 72 million, with a per capita GDP of US$5,259, Coca-Cola understands that Hebei has the potential to become a strong and lucrative market (source: Coca-Cola Company).

Chinese cultural concepts of Face and relationship

A huge part of Coca-Cola’s success in China comes down to its understanding of the important cultural concepts of face and relationship. Coca-Cola’s continued commitment to investing in China, as well as pouring funding into local community projects and environmental causes has helped them to build trust and show their dedication to Chinese consumers, their culture, and their country.

When Coca-Cola entered the market they adopted a policy of ‘Three As’. They made their product available, so that it was there for consumers to try. Second, they were confident their product would be accepted because of its quality and taste. Then they focused on affordability, so that consumers who liked the product would be able to buy it (source: Eastday).

How does Coca-Cola’s story help you when marketing in China?

At the centre of Coca-Cola’s efforts to break into China are some very simple concepts. Firstly, they were prepared to invest in growing areas, rather than chase profits in crowded markets. And secondly, they understood their target consumer, and made their product and business methods work to suit them.

(Image source: “Coca-cola Shield” | www.freedigitalphotos.net)

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We’ve put together four basic tips to get you started thinking about Chinese law. These are in no way definitive, but are designed to show you a few of the many differences you will encounter.

1. Beware grey areas

As China’s economy grows, new laws and regulations have been drawn up, and changes in the old ones made to allow development. What this means is that the legal system in China is somewhat of a work in progress (source: out-law.com). Like any legal system, there are loopholes and gaps in the law which have yet to be addressed. Make you know where they are, and how to avoid them.

2. Protect your trademark

There are two very important things you need to know about trademarks in China. The first is that it can take a very long time between applying for a trademark and it being officially registered. The entire process usually takes between 15 and 18 months (source: chinalawblog.com).

Secondly, China’s trademark laws tend to work on a first-come-first-served basis. Huge companies such as Apple and Starbucks have had to fight lengthy court battles to secure the rights to their trademarks in China, because others have seen the potential for the company to expand and pre-emptively registered their trademarks for themselves, even if they are not using them to do business (source: bbc.co.uk).

Both of these points highlight the need to move fast when it comes to securing your intellectual property in China.

3. Know your standards

If you are planning on selling goods to China, you need to ensure that you are complying with the correct regulations. Chinese import standards take precedence over standards from the rest of the world, even if they are in many cases similar (source: cbbc.org). Just because you adhere to commonly adopted standards worldwide, you may be contravening Chinese law.

4. Get a Chinese native speaker

Chinese is a very different language to English, and so translating one to the other is often more about giving a ‘feel’ for the sentiment being expressed, rather than a verbatim quote. For this reason, you need to have a Chinese speaker onside to help you understand the laws and how they apply to your business. Written translations may help, but it could get you into trouble because you may not realise you are not following the law.

Ready for China? Set your plans in motion

Once you understand everything that is involved in entering the China market, the next step is to actually do it. We are experts in Chinese culture and marketing, so we are the perfect choice to help you enter the China market in a strong and rewarding way. Contact us today for more information.

(Image source: “Businessman Connect World” | www.freedigitalphotos.net)

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Ebay’s failure serves as a modern fable, warning businesses what happens when you don’t bother to understand your target market. And it is perfect for pressing home the fact that success in the West doesn’t automatically translate to the China market.

Ebay vs. Taobao in the China Market

Jack Ma is the founder of Alibaba, a Chinese company that helps small businesses online. When Ebay set its sights on the China market, Ma knew eventually they would encroach on his territory. To protect his interests from the online auction giant, Ma launched a new site – Taobao, where consumers could sell goods to other consumers.

If Ebay thought that a new site launched by a local Chinese business would prove to be of little threat, they were about to be proved wrong.

Advertising

Ebay’s campaign was very aggressive, and attempted to prevent their competitors from advertising by signing exclusive deals with large web platforms, including major news site Sina. Ebay invested over $100million (source: www.forbes.com) in its expansion into the China market, utilising billboard and poster advertisement in subway stations and on the side of busses.

Jack Ma, however, knew something that Ebay should have known if they had carried out their China market research correctly. Ma knew that his target market would prefer to watch television than go on the internet, and so Tabao started advertising on many major television channels.

Focus

Taobao wasn’t a profit making venture, but a defensive strategy. The site offered free listings, and a range of other features that Ebay didn’t have, such as longer listing periods. Because of this, customers quickly began switch from Ebay to Taobao.

Other factors made it more appealing than Ebay. Taobao means ‘Digging for treasure’, which perfectly encapsulated the concept. Taobao also offered buyers and sellers to chat via instant messaging Aliwangwang (source: www.globalpost.com). If you’ve read our previous post on Guanxi, you’ll know that creating a relationship is vital for business…

Understand the China market

Ebay made several large mistakes when trying to enter the China market. Firstly, the company assumed that consumers in China were the same as in the West. Rather than carry out extensive Chinese marketing research, they made assumptions, allowing Taobao to dominate the channels that actually mattered.

By understanding their customers completely, Taobao were able to offer a heightened level of service that Ebay wasn’t supplying, allowing them to steal customers.

The reason Taobao succeeded was because Jack Ma perfectly understood his customers. He knew what to offer them, and the best ways to reach them with his marketing.

Market Me China can offer you the same understanding and cultural insight into the China market that allowed Taobao to succeed in the face of larger competition. Contact us today to find out more.

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We’ve mentioned these in our recent posts, and now it’s time to go into them in more detail, so you can really build up a strong picture of what they mean.

Mianzi, or Face

China’s is a culture in which reputation and hierarchy are highly valued. How you are perceived by others, and the respect that you command from them is very important to Chinese business. Think of it as being like reputation, except on a much deeper level. In the West, reputations are usually reserved for those who have done extraordinary (or infamous) things. However, everyone has Face. But just like reputation, Mianzi can be positively and negatively affected.

Your Face has as much to do with the actions of others as it does your own. Of course, knowing your place in society and showing respect to those around you is vital in creating Face, but you can easily lose face through the actions of others, and others can lose Face through yours. For example, if your children, employees, spouse or colleagues were to fail to achieve or behave as expected, that would cause you to lose Face as well as them. Chinese people have been known to quit highly paid jobs because of losing Face (Source: www.businessinsider.com).

Guanxi, or relationship

China is a Collectivist culture, which means its people think about the needs of society before their own. This can only work if there is a strong network of deep relationships, or Guanxi, between people. Mianzi plays a large role in this, as does trust (Xin). The Chinese people believe in fostering meaningful long-term relationships, and so you must too. Part of the basis of these relationships is knowing your place in the hierarchy – you will have different relationships with different people depending upon their rank in society, but they must always be approached with respect and humility.

Building Guanxi is about the relationship itself, not the end result. Therefore, when networking in China or engaging your target market, it is important that you approach this from the point of view of creating meaningful connections (Source: www.forbes.com). Being seen to, or acting like you have, an agenda will reflect badly on you, and damage your ability to connect with people.

Learn Chinese business etiquette with Market Me China

The nuances of Mianzi and Guanxi can be complex to understand, but Market Me China is here to help guide you through them. We know exactly what needs to be done to present you to your target market in the right way. We can help you integrate into the Chinese culture so that you can enjoy the full benefits of doing business in a China.

Contact us today to take the first step.

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So, where is Chinese culture moving, and how does this benefit or hinder your business?

The rise of middle class materialism

A swiftly growing economy is creating a much larger distribution of wealth amongst the Chinese people. The middle class has grown significantly since its emergence two decades ago, growing from 4% to over 60% in just over a decade (Source: www.thediplomat.com). This newly emerging class is very important from an economic point of view, as they are defined by having a large disposable income.

This extra spending money has meant that the middle classes in China now aspire to, and can attain, items and activities that were previously only accessible for the richest in society. Holidays, luxury goods, and education, are all accessible to the middle class. With their higher income, they aspire to the same values as Westerners (Source: www.money.cnn.com); they want to own property, have nice things, and go places.

Developing counter culture

China has its equivalent of Hipster culture. This group of young people go against the materialistic values of the middle classes (despite still belonging to it). They value knowledge and attitude over possessions. They consume culture; art, photography, novels and indie music. Travel and interesting products are likely to appeal to these wenyi qingnian -‘cultured youths’ (Source: www.tealeafnation.com) .

Social media culture

Losing face (Mianzi), is still very much important to Chinese consumers. Balancing their Collectivist cultural values with their own personal wants and desires can be a struggle. Therefore it is important to remember that as a brand you need to address this issue. Social media culture is one of anonymity – where Chinese people can hide behind an avatar and screen name to say and do things that they would not feel comfortable doing (or be allowed to do) offline (Source: online.wsj.com).

New and old

So while the emerging culture in China is one of greater communication, heightened desire, and more self-expression, their traditions and values are still the same. Chinese people respect the hierarchy, value the needs of society over their own, and hold achievement as the measure of success. These cultural differences may seem like major hurdles for your marketing in China, but really they just create the need for a different approach.

Using Market Me China to help you enter the China market

With a keen understanding and experience of Chinese culture, we are experts when it comes to entering the Chinese market. We can carry out Chinese market research, advise you on your options, and help you present the right image to your target market. Call us today to discuss your international ambitions.

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Geert’s categories of Power Distance, Individualism, Masculinity/Femininity, Uncertainty Avoidance, and Long Term Orientation help to give an insight into the values and structure of a certain culture. We look at his results for China (source: geert-hofstede.com), and help you understand how you can apply that knowledge to Chinese business culture.

Power Distance

This category measures people’s attitudes towards distribution of power. A high score demonstrates China’s hierarchical structure, and the belief of its people that you should respect and honour those with higher status than you.

As a foreign business entering the market, you need to understand and honour your place in Chinese society. Respect those who rank higher than you, demonstrate that you understand and appreciate your place, and you will make a positive impression upon the China market.

Individualism

A low score here shows that China is a Collectivist society. The people of China tend to think in terms of ‘We’, and place the needs of others ahead of their own. Guanxi (relationship), is therefore very important to Chines business culture.

This attitude means you have to approach Chinese consumers differently to the Western consumers. Thinking collectively does not meant they do not make personal purchases, but when communicating with Chinese consumers, you need to be aware that different messages will resonate with them.

Masculinity/Femininity

China is society in which success is defined by achievement – categorised as Masculine by Geert. Long working hours, working away from home to achieve higher pay and promotions, and high exam scores are all important to Chinese people, as salaries and results are measures of success.

Chinese people want to be the best at what they do. Appealing to their desire to achieve greater things for themselves could be an effective way of marketing in China.

Uncertainty Avoidance

In the Western, we are quite happy to carry on with things without needing to know what’s going to happen next. The Chinese people are the exact opposite. They need a structure and a plan, and would prefer stability to adventure. Chinese people don’t like taking risks, which is why it is so important to build Xin (trust) with them.

Long Term Orientation

China is a very long term orientated society. This ties in with Chinese people’s drive to succeed in life; they are willing to persevere and work for a long time to achieve. Chinese people are not so much about instant gratification, and when they invest in things, it tends to be for the long term. Conveying the permanence and durability of your product or services is therefore going to be more appealing than short term pleasure.

Market Me China understands Chinese business culture and will help you to present your company and product to the Chinese market in the most appealing and engaging way for Chinese consumers. Call us today to discuss our plans for your company.

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