Australian Business Forum helps Australian SMEs and businesses to understand the Chinese market and refine their China strategy. http://abf.events/ ABOUT THE PRESENTATION BELOW Success in Asia is highly attractive, and fraught with challenges. What works in Western markets doesn't always apply to audiences in China. These markets ranging from the highly sophisticated, like Shanghai and Beijing, to those with 'Tier 3' millionaires who lack international experience. This presentation covers surprising statistics on China and the pitfalls for foreign brands who fail to plan their China approach. Originally presented by the China Way (http://thechinaway.com/) at Australia-China BusinessWeek 2015 Sydney

1. vs. Chinese reality
Western perception

3. Statistics are
exciting

4. China’s millionaires increased
67.2% in 20144,000,000 households*
*BCG 2014 wealth report
14 millionpeople play tennis
of all consumption in China to come
from young (G2) consumers by 2020
35% is the average age of super-rich in China
51
students went abroad in 2014
694,000
1.8%
Luxury CPI
7 of the top 10 on the Hurun Rich List
are popular bloggers
7/10

5. But when it comes to
marketing in China,
statistics can be a
distraction

6. Behind the
mind-boggling
statistics China
is a country
as diverse as
Europe, so you
must consider: Regional culture
levels of
developmenttastes
dialect
Business opportunities
may exist away from
the highly populated
megacities

7. New symbols &
words every year
On the Internet or mobile,
‘286’ means you are slow or unresponsive;
‘886’ means good-bye;
‘9494’ means yes, I agree.
http://www.shanzhaimi.com/
The most popular and powerful
new word so far is the word
Shanzhài

8. Until now, everything has a (Shānzhài)
version, for it really symbolizes the vibrancy
and complexity of the market.

9. What’s in
a name?
Auspiciousnameshave
a practical application

10. 1.2 billion
people are
NOT your
target
audience
GUANGZHOU
SHANGHAI
BEIJING

11. QINGDAO
9 million

12. CHENGDU
14 million

13. In the west,
it’s pretty simple.
In China,
it’s not.
We identify our target audience
and focus our efforts on them.
You need to consider and build
relationships with multiple stakeholders
because success or failure depends on a
range of influences.
Different
regulatory
regimes
More
invasive
Government
policy
Heightened
cultural
influences
Politics are
considered
when decision
making

14. Where to focus your
business and find
the right market?

15. Opening
the right
doors to
the China
market
In the west this would be undue influence;
in China, take this approach or you’ll fail.
Supporting a
research chair
at an influential
university
Participating
in a regulatory
committee
In other words,
‘know the right people’

16. Red tape
analysis
You need to get a grip on
what’s really happening
R 34
Provincial
regions
2862
County-level
regions
334
Prefectual
level regions
42,000
Township-level
regions
and even more at village level...

17. Hot topic on Baidu
& new goverment
policy
• Newpoliciesandregulations
creating business
• Opportunities for
international companies
• Increasingcomplexity
& compliance
• Risk & reputation
Tracking
water
pollution
Go deeper &
challenges
are revealed

18. Competition
is rising from
homegrown
brands
Local brands
have moved a
long way from
the negatives of
‘Made in China’
Chinese people
take pride in
their country’s
achievements
Understanding
‘who’ and ‘where’
competitors
are is a major
consideration
International
brands are
trusted in
China but...

19. Who is Xiaomi?
It released its first smartphone in August 2011.
By the end of 2014, Xiaomi overtook Samsung becoming the
largest smartphone vendor in China and third largest in the world.
With a valuation at more than US$46 billion it became the
world’s most valuable tech start-up.
What does this mean for us?
Will Xiaomi crush
Samsung and Apple?

20. K
People
believe in
key opinion
leaders,
not the
government
or media.

21. Kai Fu Li
50, 228, 741 followers
Ex Google and Microsoft head, Kai Fu Li is a very active and
vocal technology blogger with over 50 million followers.
Just a few positive tweets from Kai Fu Li can create a huge
sway in shaping perception in the public.
Most influential KOL?

22. You need
to be there
The pace of
change is almost
incomprehensible
for westerners

23. The
3 key
success
factors
Cairns Tourist Market | 15 April 2015
3 You’ll be invisible without a
Chinese brand/company name
Position for relevance: localise
your brand experience and
marketing, while maintaining
your brand integrity
Get local, up-to-date insights
to base your strategy on1.
3.
2.

24. tThank you