Omnichannel marketing 4th summit 2014

By
Kestrel Lee
How digital advertising ﬁts in with omni-
channel shopper marketing

What We Do

Integrated Digital
VIP Hospitality
Tournament Management
Golf Hospitality
Sports Activation
Press Launches
Product Launches
Conferences
Retail Roadshows
Auto shows
Store Openings & Test Drives
Packaging Design
Below-the-line Marketing
Retail Shopper Marketing
Multimedia Interactive
Campaign Strategy and Planning
Social Media Marketing

Beijing

Shanghai

Taiwan

Guangzhou

Hong Kong

Across

5

Markets in the Greater China Region

300

Our People

Our
Point of View
What and why Omni-channel retail marketing is
the answer to China’s ecommerce challenge

Omni-channel or Online to offline consumer marketing?
-  In China O2O has increasingly been viewed as a way to drive brand
activation from online to offline channels for lead generation & conversions.
-  For example: Starbucks: https://www.youtube.com/watch?v=p48ZkNKzD64
-  For example: Nippon Paint: http://v.youku.com/v_show/id_XNTg4NDU0MTAw.html
-  For example: British Airways: http://mumbrella.asia/2014/01/british-airways-takes-wechat-chinese-new-year-promotion/

Omni-‐channel
marke.ng
approach
to
user-‐centric
shopping
behavior

Create

memorable

social
campaigns

around
brand
values
to

create
buzz,
raise

product
awareness

and
drive
lead

genera.on

Provide
product

content
to
emphasize

the
lifestyle,
consumer

and
strategic
benefits

of
using
our
client’s

brands.

Sampling
at
stores
and

road
shows
for
drive
to

trial
programs

Use
social
media
to

drive
TA
aFer
engaging

with
the
brand
online,

to
buy
from

ecommerce
shops
or

actual
stores.

Tracking
Internet

Word-‐of
Mouth

(IWOM)
and
organic

search
traffic
for

brand/
product
queries

or
ecommerce

transac.ons.

SPARK
SEEK
SAMPLE
SHOP

SHOWROOMING

BLUE
=
ATL
SOCIAL
PROGRAM
GREEN
=
POS/SOCIAL/Drive
to
Trial
PROGRAM

6GPJ Experience Marketing proprietary and strictly confidential. Copyright reserved 2014.

Omni-‐channel
marke.ng
approach
to
user-‐centric
shopping
behavior

Bought
Media

(Display,
Facebook

Ads)

Created
Media

(Facebook

updates).

Bought
media

(Search).

Earned
media

(PR/Blogger

Outreach).

Created
Media

(Digital
screens)

Owned
Media

(Mobile)

Earned
Media

SPARK
SEEK
SAMPLE
SHOP

SHOWROOMING

BLUE
=
ATL
SOCIAL
PROGRAM
GREEN
=
SHOPPER
&
DRIVE
TO
TRIAL

PROGRAM

7GPJ Experience Marketing proprietary and strictly conﬁdential. Copyright reserved 2014.

China’s domestic shopping behavior is now driving its
growth of its economy and its brands
Nearly a quarter of Chinese shop on the toilet, and over half admit to shopping
while at work. Highly contagious, online shopping is hitting epidemic levels, with
over half missing sleep to shop late, and more than one in five saying their
shopping addiction is negatively affecting “family harmony”.
“Although some of our survey questions were tongue-in-cheek, we cannot
overemphasize the importance of online shopping for brands in China,” said
Tony Chen, Chief Digital Officer GroupM China. “The top e-commerce sites are
no longer mere sales channels, but media in their own right, with hundreds of
millions of visitors ripe for brand communication.” - Group M
http://www.wpp.com/wpp/press/2014/jun/20/groupm-charts-china-e-commerce-frenzy/
http://v.youku.com/v_show/id_XNzI4NjkwODU2.html

Brand casualties are starting to appear even in growth areas
As the world’s second largest cosmetics market, China market has reached 200 billion Yuan in 2011. Besides, it is
also one of the fastest developing markets with a 15% annual growth. National Bureau of Statistics of China also
shows that the revenue of above-norm cosmetics enterprises has also reﬂected the trend. Over 80% of China
cosmetics market is dominated by foreign brands. And yet Garnier and Revlon had to leave the market?

Brand casualties are starting to appear even in growth areas

Our
Point of View
Why omni channel marketing is necesary

1. E-Commerce and Brand Building
Are Colliding in China
Essentially, China’s large and growing middle-class
have become accustomed to making frequent e-
commerce purchases. Furthermore, as in many
longer-standing e-commerce markets, they are also
developing brand awareness, an increasing proclivity
to purchase high quality and/or individually satisfying
products, and showing a commitment to brand loyalty
and repeat business:
The future development of China’s e-commerce
channel is closely linked to technology developments
and also the behaviors of Chinese consumers,
including the way they research and order products
online, and their preference for speed and
convenience.
- KPMG’s China 360 report: E-commerce in China:
Driving a new consumer culture, 14 Jan 2014.

2. E-Commerce growth is offset by economic weakness in
traditional Chinese economic drivers
China’s growth in terms on online retail sales grew from 4.3% in 2012 to
6.3% by August 2013.

3. B2C ecommerce has yet to prove itself against B2B
ecommerce and C2C ecommerce

l  Government policy to encourage public consumption
l  Higher government spending on health care and
pensions encourage households to save less and
China has little debt.
l  Rising wages and an ageing population will also shift
the balance towards consumption rather than saving.
l  “A massive push to urbanise is also under way, which
should produce tens of millions of richer citizens
seeking retail therapy. McKinsey, a consultancy,
forecasts that consumption by urban Chinese
households will increase from 10 trillion yuan in 2012 to
nearly 27 trillion yuan in 2022 (see chart 1).”
http://www.economist.com/news/briefing/21595019-market-
growing-furiously-getting-tougher-foreign-firms-doing-it-
their-way
4. Increasing consumption demand driving desire for
more customer touch-points
GPJ Experience Marketing proprietary and strictly conﬁdential. Copyright reserved 2014.

5. New consumer media habits in mobile, digital, social
media are on the rise

6. Media fragmentation is on the rise
Attention span has split. People
needed to hear something multiple
times from different media sources
– to believe anything these days.
Most of the time they are getting their
news from social media on the brands
and products they care about.
SOCIALOWNED
HYBRIDTRADITIONAL

7. Social media marketing is on the wane due to censorship,
over-advertising etc

8. Your
millennial
strategy
is also
your
social and
retail
strategy

Our
Point of View
The Consumer Segment targeted by
Onmi-channel marketing

2 Similar Brands in China = 2 Very Different Market Results
l  Adidas gained 11% of the sportswear market
compared to Nike’s 12.1%
l  12% rise in fourth-quarter China sales for a
15% climb during the full year
l  Nike is setting up more discount stores to get
rid of its inventory which started stockpiling
after Beijing Olympics
l  Nike + did not take off in China

Retail store counters report that they see
more women walking into shop. Anecdotally,
tracking of online buzz show "fairly positive"
comments written about the campaign, like
"This is exactly how I feel", "This
encourages me to do sport", "Sports doesn't
have to be hard", "This isn't like the brand
that I had in mind before"
Adidas Adapted to an
Increasingly Sedentary Consumer Segment

McKinsey reports that China's emerging consumer
class is more emotional than previous generations of
shoppers and ﬁrms must shift their marketing
strategies to keep pace with them i.e. 51 per cent of
city-dwellers by 2020, up from 6 per cent in 2010

http://in.reuters.com/article/2012/09/25/china-
economy-consumers-survey-
idINL5E8KP0OQ20120925

Group M China’s Dec 2013 Study also
stressed the importance of building emotional
connections with their consumers. Emotions
impact consumers differently with market
maturity. Respondents aged 15 to 64 in Tier
four cities are the most bonded with brands,
citing feel good factors such as 'make me feel
more conﬁdent and attractive'."

McKinsey: China’s Emerging Millennial Consumer Class Are
More Emotional Than Past Generation of Consumers

Pollution, food safety and climate change stand out as major concerns for China’s millennial generation.
While China is raising its profile on the world stage, the study notes 88% of Chinese millennials believe
their country can effect change in the world, “they care more about improving the world than other
generations’.
http://www.jwtintelligence.com/trendletters2/#axzz2fowQpbh4
Chinese millennials will form the largest consumer base  
in China in 2020 i.e. the size of USA’s population

Chinese Millennials Love Brand Experiences That Are
Inline with Their Self Expression
China takes 1st place for going online for
self-expression and transaction. Australia
takes 22nd place for self expression.
Mindshare Digital Normal Index 2013.
The Edelman 203 “BRANDSHARE” also shows that the Chinese expects
the same from brands i.e. to express their brand heritage beliefs, product
development / making approach, product performance, allowing them to
co-create with their favorite brands while providing product inputs.

An exclusive look into
the China millennial
behavior from
Edelman's global 8095
millennial study done in
2010 and updated in
2012:
http://
www.edelman.com/
insights/intellectual-
property/8095-
exchange/
Chinese Millennials Favor and Take Action for Brands
With Experiences Different from Their Parents

An exclusive look into
the China millennial
behavior from
Edelman's global 8095
millennial study done in
2010 and updated in
2012:
http://
www.edelman.com/
property/8095-
exchange/
Chinese Millennial Trust Friends and Search,
Not Brands

An exclusive look into the
China millennial behavior
from Edelman's global
8095 millennial study
done in 2010 and updated
in 2012:
http://www.edelman.com/
property/8095-exchange/
Chinese Millennial Are Strong Brand Influencers
On Friends, Families and Even Elders and Superiors

VIRTUAL ME // REAL ME
“In my real life, I exist as a ‘virtual me.’ I go to
work. I try to live up to the expectations and
pressures from parents, my coworkers and
society. Then, I go home. I open my computer,
I put on some music and I start to dance.
That’s the real me.”
// REBECCA XIA
[Without the Internet] I would lose the passion
to see the world outside of my parent’s eyes.”
// “LIZ,” 22
I would rather be a common person in daily
life, but I have to be uncommon online. It’s my
own choice.
// “CHENG E.T”
Chinese Millennial See Their Online Selves
As Their Real Selves

Chinese millennials are
open to co-creation and
giving product feedback on
the brands they like
An exclusive look into the
China millennial behavior
from Edelman's global
8095 millennial study done
in 2010 and updated in
2012:
http://www.edelman.com/
property/8095-exchange/
Chinese Millennial Are Apt to Take Actions on
Brands Offline Based on What They Read Online

Source: Tong Ji university
Attract Millennial Shoppers to
Increase Your Social Commerce Efforts

Millennial Social & Spending Habits
Driving Social e-Commerce

Social Content Drives Brand Preference
And Buying Decisions for Chinese Millennials

Millennial Social & Spending Habits
Driving Social e-Commerce

Our
Point of View
The Consumer Space targeted by
Onmi-channel marketing

Our
Point of View
Big Data on Designing beyond
The Big Idea, Brand Experiences

Starbucks success has inspired many businesses to copy its third space strategy.The next
move is the Fourth space strategy. Creating cultural movements for Starbucks fans and
customers by integrating social, in-store, technological and

mobile experiences

Integrating retail spaces with millennial consumer behavior is key

IKEA: Third Space for families
Nursing area for games, store sleepovers, café rest stop

Starbucks’ 4th space strategy: Drive brand preference via
GLOCAL initiatives between Starbuck’s in-store and local
culture experiences
Starbucks' new Fuzhou store has a Chinese chess (weiqi) theme with pictures of the
nearby Fushan mountains built into the store murals. Channeling the ambiance of a
thousand-year-old Song Dynasty garden, Starbucks did not ignore Fuzhou's pervasive
cultural norms by embracing Fuzhou's historic ambiance and classical Chinese
architectural themes.

Starbucks’ 4th space strategy: Integrate social and mobile
experiences into the in-store experience to drive traffic and
social engagement
-  The best global digital practices is not to treat social and mobile as standalone channels to a brand’s experience
but to integrate them.
-  Mobile, social and in-store experiences overlap at Starbucks, especially since 50% of Weibo users access WIFI at
Starbucks’ stores via their smart phones. Conversion opportunities arise from campaign with an integrated
customer journey from store to online and mobile

How Online-to-Offline is working out for luxury brands

How Online-to-Offline is working out for F&B brands

THAT’S NOT ALL.
OMNI CHANNEL MARKETING IS RESHAPING RETAIL
MARKETING VIA BIG DATA.
MULTI-CHANNEL MARKETING ONLY WORKS WHEN ALL
CUSTOMER DATA IS COLLECTED TO A SINGLE INTERFACE
FOR ANAYSIS, REPORT AND TRACKING. IN THIS WAY,
YOUR CUSTOMER DATA HAS BECAME BIGGER, INSTEAD
OF BEING SEGMENTED TO DIFFERENT SILOES.

OMNI CHANNEL MARKETING IS RESHAPING RETAIL
MARKETING VIA BIG DATA
From 2013 onwards, Gucci has decided to not open too many new
shops in China in new cities, but to renovate and expend the existing
ones, to raise customer service standards, creatingVIP events, and
creating new promotions. So how is it going to do that?

Reference:
https://www.youtube.com/watch?v=3Vg5idj_590

BIG DATA RESHAPING RETAIL MARKETING
1. BIG DATA ALLOWS US TO CONNECT AT SCALE
STARBUCKS REFERENCE: https://www.youtube.com/watch?v=MSLCCsncJEU

BIG DATA ALLOWS US TO CHANGE PUBLIC PERCEPTIONS
RICE CODE REFERENCE: http://v.youku.com/v_show/id_XNzQwMTIxNTA4.html


BIG DATA ALLOWS US TO CONTROL THE NEWS
RICE CODE REFERENCE: http://v.youku.com/v_show/id_XNzQwMTIxNTA4.html

Adidas wants to own those stories. It wants to ensure that its brand is
front and centre of its audience’s minds as and when the action unfolds
in Brazil and it wants to be central to the successes of its athletes, as it
was when Andy Murray ended that long, long wait for a British
Wimbledon champion.‘Newsjacking’ other people’s news isn’t enough.


Our
Point of View
Omni-channel marketing are best
driven by emotional impulses

Need to create social/emotional relevance into
such experiences to create brand advocates and
drive word-of-mouth.
Once a product is known for being reliable, functional
and usable, what’s next?
Creating Emotion-based Marketing in the age of digital
How?
What?
Why?
“People don’t buy
what you do, they
buy why you do it”
http://www.ted.com/talks/
simon_sinek_how_great_leaders_inspi
re_action.html

Inspired
by
Simon
Sinek.


Emotional stories ignite
integrated communications
programs by answering ‘why’ –
why should people care
(emotional trigger) and then
why should people share
(motivations).
Crafting campaigns based
upon an emotional insight
gives us the best chance to
scale via earned/traditional
media – which is at the center
of every great digital campaign
(e.g. Sketches, World’s
Greatest Job etc).
INTEGRATING PAID, OWNED & EARNED MEDIA

DHL China created a retail experience using World Cup Fever
http://v.youku.com/v_show/id_XNzQwMTIzNjQ0.html

http://v.youku.com/v_show/id_XNzQwMTIzODE2.html

Campaign introduction:
http://v.youku.com/v_show/
id_XMzM3NTM3MzAw.html
1
Dove Art Project
Mars / Dove Chocolates
(China)
2
3-year itch campaign
Continental Tires
(China)
http://v.youku.com/v_show/
id_XNTY4MTMyMDA4.html
3
Spare Space, Spread Love
Johnson & Johnson
(China)
http://www.damndigital.com/
archives/74205
Creating Emotion-based Marketing
Through Social Purpose Branding

Please Consider this document proprietary and strictly Confidential. The Concepts, methodology and information produced by
George P. Johnson (A Project: Worldwide Agency) and Contained in this document shall not be used or adapted in any form,
either in part or as a whole without the written permission of George P. Johnson (A Project: Worldwide Agency). Copyright Reserved 2014.

本文档所述信息须严格保密。文档中所述创意概念、方法、信息属于George P. Johnson (A Project: Worldwide Agency)拥有的知识产权。
未经George P. Johnson (A Project: Worldwide Agency)书面允许，均不得以任何形式（无论局部或整体）使用。版权所有 2014年

Please contact us directly if you wish to learn more about GPJ and the Project Worldwide Group of Companies.
Joe Wong, Business Director, Integrated Marketing Services (Greater China). E: joe.wong@gpj.com

Omnichannel marketing 4th summit 2014

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