#ALL RIGHTS RESERVED China Consumer
Sophistication Social Media 6 trends

Prepared by Edelman Digital #
CONFIDENTIAL #ALL RIGHTS RESERVED RISRING DRAGON <ul><li>Understand Riseof Social Media in China </li></ul>CHINA HAS THE LARGEST ONLINE POPULATION IN THE WORLD. EVERYDAY, 400 MILLION + CHINESE PEOPLE USE QQ TO COMMUNICATE WITH FRIENDS, FAMILIES AND COLLEAGUES; 100 MILLION + PEOPLE USE SOCIAL NETWORKING SERVICES; 50 MILLION + PEOPLE POST TWEETS IN SINA WEIBO…… THIS CREATE GREAT OPPORTUNITIES FOR BRANDS TO COMMUNICATE DIRECTLY WITH THOSE NETIZENS, WHO ACCOUNTS NEARLY HALF OF WHOLE CHINESE POPULATION AND HAVE MUCH MORE POWER THAN WHO ARE NOT ONLINE IN CHINA……

THE ONLINE WORLD OF CHINA
485 M NETIZENS 318M MOBILE NETIZENS 250M+ SOCIAL MEDIA USERS Source: China Internet the 28th Survey Report, CNNIC, July 2011

THE ONLINE WORLD OF CHINA:
CHINA POPULATION OF NETIZENS Source: China Internet the 28th Survey Report, CNNIC, July 2011

THE ONLINE WORLD OF CHINA:
CHINA POPULATION OF MOBILE NETIZENS Source: China Internet the 28th Survey Report, CNNIC, July 2011

CHINESE NETIZEN SOCIAL GRAPH Source:
Global Trends in Online Shopping A Nielsen Global Consumer Report, AC NIELSON, June 2010 Age Education Primary school Middle school High school College University + Device Desktop Mobile Laptop Others

CHINESE NETIZEN SOCIAL GRAPH: CAREER
BREAKDOWN Source: Global Trends in Online Shopping A Nielsen Global Consumer Report, AC NIELSON, June 2010 Students White collars Self-employed Managers Government officials Jobless

CHINESE NETIZEN SOCIAL GRAPH: MONTHLY
INCOME BREAKDOWN Source: Global Trends in Online Shopping A Nielsen Global Consumer Report, AC NIELSON, June 2010 RMB

CHINESE NETIZEN ONLINE BEHAVIORS: GENERAL
Source: Global Trends in Online Shopping A Nielsen Global Consumer Report, AC NIELSON, June 2010 June 2010 June 2011 Online Behaviors Number of users (million) Percentage(of total online population) Number of users (million ) Percentage(of total online population) Change Searching Engine 386.06 79.6% 374.53 81.9% 3.1% Instant Message 385.09 79.4% 352.58 77.1% 9.2% Online Music 381.70 78.7% 362.18 79.2% 5.4% Online Radio 362.30 74.7% 353.04 77.2% 2.6% Blog/QQzone 317.68 65.5% 294.50 64.4% 7.9% Online Game 311.37 64.2% 304.10 66.5% 2.4% Online Video 301.19 62.1% 283.98 62.1% 6.1% Email 251.72 51.9% 249.69 54.6% 0.8% Social Networking 229.89 47.4% 235.05 51.4% -2.2% Online Books 194.97 40.2% 194.81 42.6% 0.1%

CHINESE NETIZEN ONLINE BEHAVIORS: ONLINE
SHOPPING AND E-COMMERCE Source: Global Trends in Online Shopping A Nielsen Global Consumer Report, AC NIELSON, June 2010 June 2010 June 2011 Online Behaviors Number of users (million) Percentage(of total online population) Number of users (million ) Percentage(of total online population) Change Online Shopping 172.66 35.6% 160.51 35.1% 7.6% Online Payment 153.26 31.6% 137.19 30.0% 11.7% Online Bank 150.35 31.0% 139.48 30.5% 7.8% BBS 144.05 29.7% 148.17 32.4% -2.8% Online Stock Trade 56.26 11.6% 70.88 15.5% -20.6%

HOW BIG IS SOCIAL MEDIA
IN CHINA

SOCIAL MEDIA LANDSCAPE TRUST FREQUENCY
Sina Weibo Renren BBS Taobao KAIXIN001 LBS Jiepang Douban LinkedIn 0 Trust measures the level of trust in a certain social media channel Frequency measures how often students use a certain social media channel The size of each circle measures the popularity of a certain social media channel. QQ Weibo Groupon

CHINESE NETIZEN ONLINE BEHAVIORS :
ONLINE SHOPPING Source: Global Trends in Online Shopping A Nielsen Global Consumer Report, AC NIELSON, June 2010

Prepared by Edelman Digital #
CONFIDENTIAL #ALL RIGHTS RESERVED CRUNCHING TIGER <ul><li>Understand Consumer Sophistication </li></ul>While highly engaged with brands, Chinese consumers become more sophisticated, doubtful and independent. They demand not only quality but also styles and values represented by a brand. For 8095s, they treat relationships with brands as a PARTNERSHIP and FORM OF SELF-EXPRESSION. . WHILE ADAMANTLY INDEPENDENT, THEY OFTEN MAKE DECISIONS WITH INPUT FROM MULTIPLE SOURCES

CHINESE CONSUMER PROFLE These eight
archetypes can be grouped into three spending tiers

CHINA CONSUMER SOPHISTICATION November 10,
2010 Actively Involved and Highly Engaged 1

CHINA CONSUMER SOPHISTICATION November 10,
2010 Engaging with online communities Engaging with trusted brands

CHINA CONSUMER SOPHISTICATION November 10,
2010 Recommended Actions by Brands <ul><li>Listen first </li></ul><ul><li>Launch real-time monitoring system and build social media response/action mechanism </li></ul><ul><li>Develop a social media strategy aiming at expanding social media presence </li></ul><ul><li>Establish social media branded accounts </li></ul><ul><li>Put the training person as the account manager </li></ul>

CHINA CONSUMER SOPHISTICATION November 10,
2010 Independent but Information is Key to Influence 2

CHINA CONSUMER SOPHISTICATION November 10,
2010

CHINA CONSUMER SOPHISTICATION November 10,
2010 Recommended Actions by Brands <ul><li>Use multi-points story telling strategy </li></ul><ul><ul><li>Train employees to become brand ambassadors with a strict social media policy </li></ul></ul><ul><ul><li>Engage social media influencers </li></ul></ul><ul><li>Facilitate consumer experience sharing </li></ul><ul><li>Curate social media content that will be shared on social, paid and earned media channels </li></ul>Consumer will search and buzz about you either on domain or off domain and initiatives which include any form of media or content can fall into the following categories.

CHINA CONSUMER SOPHISTICATION Share Experience
and Take Actions 3

CHINA CONSUMER SOPHISTICATION Chinese consumers
want their social networks to know about their brand experiences online. Chinese consumers do not hesitate to write positive experience but are also mostly like to share negative comments and join online boycott again brands they do not like

CHINA CONSUMER SOPHISTICATION November 10,
2010 Recommended Actions by Brands <ul><li>Initiate social media campaigns to facilitate story telling and experience sharing by Chinese consumers </li></ul><ul><li>For foreign brands, while presenting the culture and quality traits as a international brands, deliver In China, For China message </li></ul><ul><li>Develop a healthy community with core fans to defend your brands </li></ul><ul><li>Establish social media crisis mitigation and management strategy and system </li></ul>

CHINA CONSUMER SOPHISTICATION While Online
Entertainment Widely Embraced, Demand Valued-Added Content Rise 4

CHINA CONSUMER SOPHISTICATION

CHINA CONSUMER SOPHISTICATION November 10,
2010 Recommended Actions by Brands <ul><li>Involve all the business units/departments into your social media strategy </li></ul><ul><li>Create valued-added and informative content through working with sales/marketing/HR and legal departments </li></ul><ul><li>In China, understand how your brands are talking online and consider to embed the culture and Chinese elements into your story telling </li></ul><ul><li>Be fun but not entertaining. </li></ul>

CHINA CONSUMER SOPHISTICATION Purchase or
not: they need real-time engagement; they want your response and want it now 5

CHINA CONSUMER SOPHISTICATION

CHINA CONSUMER SOPHISTICATION November 10,
2010 Recommended Actions by Brands <ul><li>Real-time motnirong </li></ul><ul><li>Real-time engagement with an efficient internal response approval process </li></ul><ul><li>Maintain consumer interest and continuously keep online buzz going by planning online campaigns and incentive programs </li></ul>

CHINA CONSUMER SOPHISTICATION Experience offline
and place the order on line 6

CHINA CONSUMER SOPHISTICATION

CHINA CONSUMER SOPHISTICATION November 10,
2010 Recommended Actions by Brands <ul><li>Establish presence in B2C shopping and E-commerce websites in China </li></ul><ul><li>Develop APPs in Sina Weibo and Renren page to faciliate online purchase </li></ul><ul><li>Intregrate social media accounts with branded/owned online shopping websites. Facilitate information searching and encrourage sharing. </li></ul>

Contact information Direct talk Vincent
Lee Edelman Digital Vincent.lee@edelman.com Sina Weibo: @liblog