Adding some timely cultural touches to your marketing in China shows you are making an effort to fit in. It helps to win customer loyalty by showing that you care about what is important to them. Here are some Chinese New Year traditions you could try incorporating into your Spring Festival marketing.

Hongbao

The Hongbao (红包), or red envelope, is traditionally filled with money and given as a gift to children, friends, family, and business partners. With companies running special promotions, discounts, and freebies throughout the New Year period, Hongbao have become a common theme for marketing in China.

As a Western company, there is an obvious culture barrier. The big global companies that have failed to gain a foothold in the Chinese market have often done so because they did not adjust their offerings for Chinese consumers. Using the Hongbao in your marketing shows your customers that you understand and value their traditions. You can also use the symbol ‘Fu (福)’, which is often displayed upside down to express good wishes of fortune to others.

Chinese New Year Dinner

Over a billion people in China travel to be with family or friends over the New Year period. With many family members living away from home, this meal will be a major family reunion. Fish is normally served, and dumplings are an important dish in northern China; both of these things signify prosperity. These are two more elements that can be incorporated into your marketing to China, and messages that signify and enforce the value of the family unit, and of staying in to enjoy some time together, will be particularly well-received.

Shou Sui

‘Shou Sui (守岁)’ means to stay up late or all night on Chinese New Year’s Eve. According to Chinese mythology, ‘Nian (年)’ or ‘Year’, is in fact a mythical creature or beast. On the night of New Year’s Eve, the ‘Year’ comes to bring harm to people, properties, and animals. It was discovered that the ‘Year’ was frightened away by the colour red, and by loud noises such as fireworks. People traditionally stay up past midnight on New Year’s Eve to ensure that Nian stays away.

Your marketing in China may not centre around scaring away terrifying monsters. In the UK we have no real reason other than to celebrate for staying up past midnight and watching a firework display. In China these things have a grounding in mythology and tradition, and knowing this can help you to lend significant credence to the tradition.

Little touches can make a big difference. A small gesture of understanding can go a long way towards earning the trust and loyalty of Chinese consumers.
(Image source: “New Year Ornaments” | www.freedigitalphotos.net)

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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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