Only 75 companies in the Fortune 500 and only 12 of the Top 100 worldwide brands are Chinese. This is about to change dramatically. In this presentation I exlpore some of the most successful Chinese brands and look at what has brought them success. I also review some of the challenges of launching International brands in China. What do CMO's need to know?How should digital, social and mobile play a role?
Marel Q1 2024 Investor Presentation from May 8, 2024
Taking chinese brands global barney loehnis
1. Body level
Taking China Brands to the world
Bringing Global Brands to China
In a digital and social world
Barney Loehnis
ASIA PACIFIC Digital Strategy
ASIA PACIFIC Head of Mobile
@barneylo
1
4. China has 75 Co. in Fortune 500 & 12 in Global 100 top Brands
Millward Brown: BrandZ Chinese Brands
4
5. TNS - Chinese brands going global
91% consumers think “brand China” lags global brands
5
6. TNS - Chinese brands going global
This is the negative image that Brand China must “shake”
6
7. "The so-called Chinese Dream, it's as fragile as
this papercut. It's an illusion” Ai Wei Wei
There is so much desire in China to have a bright future
7
9. OEM / Factory
Local Product
Local Expansion
Establish Brand
Global
Expansion
Brand
Adaptation
Distribution
Product Design
Local Acquisition
Marketing Management
Appoint KOL’s
Sponsor Sport/event
Develop Content
Social Community
Product Adaptation
INTL Acquisition
INTL Management
Distribution
ecommerce/ CRM
Celebrities
Cultural Drivers
KOL’s
Branded Content
Social Community
Quality
Cost
Speed
Cost
Value
MANUFACTURERS
& SHOPKEEPERS
BRAND BUILDING
& INNOVATION
BUSINESS AND
MARKETING
Evolutionary path from a local to a global brand
Demonstrate Quality
Establish Marketing
Develop Brand
Global Marketing
9
10. DIFFICULTY
RATING
10.0
1.INTERNATIONAL EXPERIENCED MANAGEMENT
2.Expanding DISTRIBUTION CHANNEL+ R&D
3.Demonstrable CONSUMER INSIGHT
4.Adaptation of PRODUCT DESIGN
5.Established CULTURAL ASSIMILATION / SPONSORSHIPS
6.Active SOCIAL & BRANDED CONTENT PLATFORM
7.INTEGRATED MARKETING / SERVICES SYSTEM
How hard is the task? How big is the achievement?
What are the drivers that lead to building successful brands?
10
11. 8% WW white goods SALES1984 2011Bust & Broken
PRODUCT
DRIVEN
"The way we sell online is to be transparent.
We tell users everything about the phone.
Telling them fully about the CPU, display,
that it uses an LG battery. We give the good
and the bad. And tell them how we'll fix the
bad." Bin Lin, Founder
CONSUMER
DRIVEN
“Taobao does not belong
to China. It comes from
China but belongs to the
whole world. Taobao
belongs to this
generation.”
SERVICE
DRIVEN
2,000 outlets and featuring in every town
in China generating almost US$2BN
CULTURALLY
DRIVEN
DIFFICULTY
RATING
9.8
DIFFICULTY
RATING
8.1
DIFFICULTY
RATING
6.9
DIFFICULTY
RATING
7.1
11
14. Brands entering China must decide where to focus.
Entering China is like entering 100 markets simultaneously
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15. Worked
around
communica.ons
posi.oning
as
being
“Unexpected”:
– Launch
the
product
but
adapt
it
to
the
Brazilian
market:
240
changes
to
the
original
spec
– Combine
compe..ve
pricing
and
op.mal
configura.on:
good
value-‐for-‐money
with
affordable,
quality
products
– Introduce
a
6-‐year
warranty,
to
ease
concerns
of
“low
price,
low
quality”
with
skepBcal
consumers
– Increase
credibility
through
celebrity
endorsement:
Brazilian
TV
show
host,
Fausto
Silva
•Outcome:
In
2
weeks
2500
sales;
10,000
vehicles
sold
in
two
months.
•Sells
more
cars
than
all
other
Chinese
brands
put
together
•
JAC Motors Entering Brazil Market
Highly
compeBBve
market
within
this
segment
Vs
Subcompact
Haches
segment
Chery
QQ Nissan
March Hyundai
HB20Fiat
Uno Kia
Picanto
Consumer impression of Chinese products are: “cheap” “imitations” “unreliable”
DIFFICULTY
RATING
8.5
15
18. KPMG, Global Reach China Luxury, 2013
Brands need to understand where national brand adds
value
How do you market the “British” in
British Airways if people don’t
understand “British”... If they
associate Britain with Mr Bean and
Crap food?
EXAMPLE
18
19. Chengdu Pambassador
The cutest job
in the world
CHALLENGE
Low overseas awareness of Chengdu makes it difficult to
a ract FDI and tourism. The city needed a globally impactful
campaign to put Chengdu on the map.
STRATEGY/EXECUTION
We executed a 3-month global competition to raise awareness
of Chengdu as the hometown of giant pandas. A creative,
integrated 360-degree approach, focusing on local market
penetration, drove global awareness.
RESULTS
2,800 media reports
128 million YouTube views
410,000 Facebook likes
2012 growth of international visitors to Chengdu: 30.3%
(compared to 1.2% national growth)
2012 FDI growth: 31.1%(compared to -3.7% national growth)
CHENGDU
DIFFICULTY
RATING
8.0
19
25. Spanish
basketball
team.
Norway
javelin
champion
NBA:
signed
an
old
star
Shaquille
O'Neal
Follower
6,880
Follower
121,208
Lack
of
Management
Maturity,
Local
insight
and
local
culture
knowledge
DIFFICULTY
RATING
5.7
25
26. Five Pillars - the system
First is the platform.
Second, our procurement system
Third, the logistic system
Fourth is our distribution system
Fifth is CRM system.
Values
Integrity
customers
execution
innovation.
“ Too many people focus too much on the benefits directly before their
eyes, which prevent them from seeing a bigger future. Only by
giving up the benefits now, can you build a long-
lasting course for the future.” Yu Gang, CO-Founder
DIFFICULTY
RATING
7.2
26
29. 60 countries
Sells products in 160 countries.
Founded in Beijing in 1984
HQ - MorrisVille N Carolina
Marketing base in India. HK
INTL Mgmt
DIFFICULTY
RATING
9.2
29
31. PR
Stakeholders
Social
Presence
Basic
Ecosystem
Campaign
focus
Sales
Drivers
Build
Community
IdenBfy
Champions
Always
On
Paid
Owned
Earned
IntegraBng
with
Customer
Service
&
eCommerce
Mobile
backbone
Expansion
of
distribuBon
channels
&
strategic
partners
Full
integrated
ecosystem
Social
CRM
Content
CreaBon
Fully
Integrated
Always
On
Brand
Programs
Demand
Programs
Initial Developing Defined Managed Optimised
Evolution of digital and social in brand building
Presence Relevancy Bonding Structural Loyalty
31
32. Slowly the world will develop a
deeper understanding of “China”
32