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Introducing the Chinese Digital Jungle

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Introducing the Chinese Digital Jungle

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An event hosted in London, UK by Digital Jungle (www.digitaljungle.agency) to outline the key facts on the Chinese social and digital landscape. Additionally, Digital Jungle CEO & Founder, Dr. Mathew McDougall provided practical ideas and tips for brands looking to enter this market from a brand and eCommerce perspective. Mr Roy Graff, Digital Jungle's UK Managing Director provided the audience with Chinese insights related to the tourism and inbound marketing.

An event hosted in London, UK by Digital Jungle (www.digitaljungle.agency) to outline the key facts on the Chinese social and digital landscape. Additionally, Digital Jungle CEO & Founder, Dr. Mathew McDougall provided practical ideas and tips for brands looking to enter this market from a brand and eCommerce perspective. Mr Roy Graff, Digital Jungle's UK Managing Director provided the audience with Chinese insights related to the tourism and inbound marketing.

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Introducing the Chinese Digital Jungle

  1. 1. WELCOME TO THE DIGITAL JUNGLE CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE
  2. 2. WE’RE A DIGITAL AGENCY THAT SPECIALISES IN CHINESELANGUAGE MARKETING China is in the midst of one of history’s most dramatic consumer revolutions. We have the opportunity to do more than just localize products andbrands for Chinese consumers. We have the chance to innovate for a consumer who is becoming increasingly sophisticated anddemands the things they buy, satisfy emotional, intellectual, and social needs. DIGITAL JUNGLE WAS FOUNDED IN 2011 TO CONNECT WESTERN BRANDS WITH A CHINESE SPEAKING AUDIENCE; LIVING IN CHINA OR ABROAD. Dr. Mathew McDougall Founder & CEO
  3. 3. WHAT WE DO FULLSERVICEDIGITALAGENCY 03 BRANDING & LOCALISATION We identify and establish key brand values and goalsfor the Chinese consumer. Building the brand through strong recognition andinfluencing loyalty with these consumers. RESEARCH & INSIGHTS Chinese Internet use and on-line behaviour is rapidly evolving. Using advanced data mining techniques, the data informsour strategy & insight reports. DIGITAL MARKETING Providing campaign& project based programsthatinclude multi-channel tactics. i.e., Social(WeChat/Weibo) Search(Baidu/Qihoo) ,DSP, KOL’sEDM WEB & APP DEVELOPMENT Designing and developing Chinese languagewebsites. From branded, to content to eCommerce sites. CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE
  4. 4. THE CHINESE DIGITAL LANDSCAPE IS DIFFERENT
  5. 5. 5 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE A Northeast China 3 provinces, 8.10% of population, 8.64% of GDP North China 5 provinces, 12.58% of population, 14.54% of GDP Central China 3 provinces, 16.16% of population, 12.91% of GDP South China 3provinces, 12.00% of population, 12.65% of GDP Southwest China 5provinces, 14.45% of population,9.44% of GDP Northwest China 5 provinces, 7.26% of population, 5.61% of GDP East China 7 provinces, 29.45% of population, 36.21% of GDP CHINA – A DIVERSIFIED MARKET 05
  6. 6. A 6 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE Population1.361 billion 668 million Internetusers 659 million activesocial mediausers 574 million mobile internetusers 54% UrbanVs.46% Rural 49% Penetration 48% Penetration 49% Penetration Source: CNNIC Statistical Survey on Internet Development in China CHINA SOCIAL MEDIAMARKETING – 2015 SNAPSHOT 06
  7. 7. 7 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITALJUNGLE INTERNET USERS ONLINE ACTIVITIES 0% 25% 50% 75% 100% Baidu Sogou 360 Google Shenma Search Engine Usage A Instant Messaging - 91% Search – 80.5% Music – 74% Online Shopping – 56% Social Networking – 41% Travel bookings - 34% Baidu still dominates the Search market in China, with increasing pressure from Sogou and 360 (Haosou). 07
  8. 8. A MOBILE INTERNET USERS 8 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITALJUNGLE 0% 23% 45% 68% 90% 113% 0 150 300 450 600 750 Jun 2010 Dec 2010 Jun 2011 Dec 2011 Jun 2012 Dec 2012 Jun 2013 Dec 2013 Jun 2014 Dec 2014 Jun 2015 Millions mobile Internet users proportion in Internet users 89% of Internet users in China use their smart devices to access the internet. ACTIVITIES Instant Messaging - 91% Search – 77% News – 75% Music – 66% Video – 56% 08
  9. 9. 9 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITALJUNGLE 0 175,000,000 350,000,000 525,000,000 700,000,000 Qzone WeChat Weibo RenRen Millions QQ is the top social site with more than 800M active users. However, WeChat has seen explosive growth to reach 650 million active users, and is quickly becoming the central pillar of Chinese and international social media innovation. Even Facebook is taking notes- its roadmap for the next two years is a carbon copy of what WeChat has already pioneered. TOP SOCIAL BRANDS TOP SOCIAL MEDIA NETWORKS 09
  10. 10. 10 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITALJUNGLE FACTS: • 176 million of active users per month • Female/Male at 50/50 • 70.8% users had tertiary education • 76% users access Weibo from apps, and 29% from PC • 58% Weibo users are positive towards ads, and 23% of users don’t like ad 0% 15% 30% 45% 60% Born after 1990 Born between1980and 1990 Born between1970and 1980 Born before 1970 Weibo users age profile change Year 2013 Year 2014 Source: Weibo Data Centre 2014 SINA WEIBO 10
  11. 11. 11 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITALJUNGLE FACTS: At the beginning of 2014 WeChat had 396 million active users. Today, they have over 650 million, and over 1.1 billion registered accounts. Text Messaging - 92% Voice Messaging – 90% “Moments” Sharing – 75% Group Chatting – 62% WECHAT ACTIVITIES USERS BY AGE GROUPWECHAT 11
  12. 12. SOCIALMEDIA IS CHANGING THEWAY YOU DO BUSINESS IN CHINA CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE
  13. 13. A CHINESE SOCIAL MEDIA 1 3 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE 13 Most prominent Chinesesocial media platforms Sina Weibo / Tencent WeChat Twitter equivalent platforms in China are called “WeiBo” in Mandarin (Wei means micro, Bo is blog). Sina Weibo was launched in August 2009, and Tencent WeChat in April 2012, both support multimedia sharing including photos, music and videos. Sina Weibo is linked with Taobao; most popular Chinese ecommerce platform. WeChat has expanded the functionality from a communications platform to including payment gates, gamification, coupons and mapping/GPS Video sharing platforms: Youku/Tudou Youku and Tudou are among the most popular video sharing websites in China, Youku is the leading video network in China. Tudou was ranked 5th in 2013. The two companies announced their merger into Youku Tudou Inc. in August 2013. Both offer user generated content, full length videos of TV series, TV shows and licensed movies from all over the world. Youku also broadcast its own original content.
  14. 14. A CHINESE SOCIAL MEDIA 1 4 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE 14 Key Opinion Leaders The value and influence of Key Opinion Leaders (KOLs) in China is unprecedented in the West. Once again, heavily routed in Chinese culture, having the right champions backing a brand provides a powerful message and enables companies to reach target audiences in a very positive light. The investment in gaining the support of KOLS can pay for itself many times over. Consider KOL’s as paid media. Internet Word of Mouth The growth of peer to peer knowledge sharing presents both an opportunity and a threat. The key to taking advantage of this fast paced environment is representation, engagement and honesty through Internet Word of Mouth (IWOM).
  15. 15. A 1 5 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE 15 Awareness Sales Enablement GrowthandRetention Banners CustomerAcquisition SEO/Pay-per-click Advertorials Podcasts TCO/ROI Tools Analyst Briefings Website Content Customer Case Studies Video Content E-mailNurture Strategy (Automation) E-mailNurture Strategy (Automation) Sales Collateral and Templates Contact Centre Support Whitepapers Whitepapers Webinars Webinars Local Event Support CampaignLanding Pages Analyst Briefings Data Acquisition Telesales Support Online PR Event Support Interactive/Experiential Apps CONTENT DRIVES AN ONLINE FRAMEWORK TO SUPPORT MULTIPLEBUSINESS OBJECTIVES Marketing Support
  16. 16. WECHAT SOLUTIONS WE PROVIDE WECHAT ECOMMERCE & DEVELOPMENT As anofficial WeChat Agent, we work with companies to build apps, develop WeChat Shops andsetup WePay accounts for taking multi- currencypayments. WE PROVIDE WECHAT MANAGEMENT Digital Jungle will verifySubscription and Service accounts for Chinese & International companies. Additionally, provide complete managementand content development of your WeChat account. A B K $ i g DIGITALJUNGLEISAN OFFICALINTERNATIONALPARTNER
  17. 17. 17 APPS E-COMMERCE Best-selling template for companies targeting China REAL ESTATE Promote real estate properties directly via WeChat HOTEL Serve your Chinese customers before and during their stay WeChat apps add functionality and create significant engagement for your WeChat Service and Subscription accounts. WECHAT APPS You cansimply license our industry solutions, andwith some simple customizations you will be up andrunning, ready to engage your WeChat followers. If you wantDigital Jungle to createa new app then no problem. Just let us know your requirements and we will build it for you
  18. 18. 18 SHOP WECHAT SHOP WeChat shop is a simple online shop which allows you to promote your goods to your personal WeChat circle. WeChat shop is a new WeChat function that creates ecommerce capabilities for businesses looking at reaching a WeChat consumer. CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE
  19. 19. 05 PAY WECHAT PAY WeChat payments started asa funway to send “lucky money” to friends, but hasbloomed into a disruptive system- over 200 million users have now bound their credit cardsto WeChat, andthat’s within just 2 yearsof its launch. Now users canmake payments in-store, via a WeChat shop or between users to purchase online goods, order room service and muchmoreall without having to exit the app. As anofficial WeChat Pay Agent, Digital Jungle integrates WeChat Paywith WeChat shops and other WeChat services to better reachanddeliver value to your followers. 19 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE
  20. 20. CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE ECOMMERCEIS CHANGINGTHE WAY YOU DO BUSINESSIN CHINA
  21. 21. 21 WITHIN THE FIRST SIX MONTHS OF 2015, UK EXPORTS TO CHINA INCREASED TO GBP 9 BILLION (A 20% INCREASE ON THE FIRST HALF OF 2014)
  22. 22. BUILD YOUR ECOMMERCE BUSINESS Many Chineseonline shoppers are eager to purchaseproducts from foreign brands, which they typically view as superior in qualityto Chineseproducts. That offers a growth opportunityfor many international brands and retailers. E-commerce in China grew by 31.4 percent, reaching a total market value of more than 13.4 trillion RMB ($2.1 trillion) in 2014, according to data released by the China E-Commerce Research Center (CECRC). Further in 2014, the Chinese government introduced a new policy on what it calls “cross-border e-commerce” (CBEC), which makes it easier for overseas brands to sell online in China. The policy legalizes the sales of products for personal consumption if the products are certified in the manufacturer’s home country. Many Western brands accessed China’s e-commerce market via Tmall and JD.com Global sites. This has a number of advantages but is definitely not right for allbrands. There is no one-size-fits-all solution, as companies have different objectives and resources in their globalization efforts.
  23. 23. A UNDERSTANDING THE PROCESS 2 3 CONNECTING BRANDS TO A CHINESE AUDIENCEDIGITAL JUNGLE 23
  24. 24. PARTING THOUGHT 24 IF YOU WANT TO MARKET TO A CHINESEAUDIENCE THEN DIGITAL JUNGLE IS THE OBVIOUS CHOICE

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