Marketing in China involves different challenges than marketing in the western world. We take a look at 8 marketing myths in China and how to overcome them.

1. ©2010
The Eight Myths of
Marketing in China
MENG Webinar
September 23, 2010

2. ©2010
Twitter
Speaking: @brandranter
#mengonline
@theduffyagency

3. ©2010
China in perspective:
The basics
Official name: The People's Republic
of China (PRC)
not to be confused with The
Republic of China, a.k.a. Taiwan
Rule: The Communist Party of China
(CPC) under a single-party system
since 1949
Led by Mao Zedong from1949 until
his death in 1976
Capital: Beijing
Divisions:
22 provinces
5 autonomous regions
4 directly administered
municipalities: Beijing, Tianjin,
Shanghai, and Chongqing
2 highly autonomous special
administrative regions (SARs): Hong
Kong and Macau
Population: over 1.3 billion
20% of Earth’s population
China has 56 ethnic groups
The Han Chinese make up 92% of
the population and dominate all
culture and politics.
Oldest continuous civilization
Largest standing army
Reforms from Mao began in 1978:
market-based economic reforms
the one-child policy

4. ©2010
China in perspective
(BRIC + USA)
Russia USA China
Brasil India0
0.03
0.06
0.09
0.12
RUS USA CHI BRA IND
% of Global
Landmass 2010
0
0.05
0.1
0.15
0.2
CHI IND USA BRA RUS
% of Global
Population 2010
USA
0
0.063
0.125
0.188
0.25
CHI BRA RUS IND
% of Global
GDP 2010
USA

5. ©2010
Different China’s
Our parents’China:
“Red China”

6. ©2010
Different China’s
Our parents’China:
“Red China”
Our China:
“Made in China”

7. ©2010
Different China’s
Our parents’China:
“Red China”
Our China:
“Made in China”
Our kids’China:
?????????

8. ©2010
1. Background
8
BBDO Knight The Lowe Group The Duffy Agency
Planner
Creative Director
/ PlannerCreative DirectorCopywriter
1991 200119871983
BOSTON SAN FRANCISCO STOCKHOLM MALMÖ / BOSTON
Sean Duffy – Strategic Planner, The Duffy Agecny
@brandranter

9. ©2010
2. Resume

10. ©2010
3. Areas of interest
Tactics > Messaging > Execution
Helping your brand communicate
with impact, clarity and relevance
Advertising in all media
Websites / assets
SEO strategy & execution
Social media / digital marketing
Sales support material
Trade show material
Training > Systems > Strategy
Helping you achieve your full potential
with strategy, training and research
Brand identity & positioning
Web 2.0 strategies and tactics
Internal training and workshops
Business intelligence
Market research
Online Reputation Management
Check > Adaptation > Production
Preserving impact, clarity and
relevance across all markets
Language check
Cultural check
Copy adaptation
Art/layout adaptation
Local liaison
Local production
REATE

11. ©2010
3. Areas of interest
Tactics > Messaging > Execution
Helping your brand communicate
with impact, clarity and relevance
Advertising in all media
Websites / assets
SEO strategy & execution
Social media / digital marketing
Sales support material
Trade show material
Training > Systems > Strategy
Helping you achieve your full potential
with strategy, training and research
Brand identity & positioning
Web 2.0 strategies and tactics
Internal training and workshops
Business intelligence
Market research
Online Reputation Management
Check > Adaptation > Production
Preserving impact, clarity and
relevance across all markets
Language check
Cultural check
Copy adaptation
Art/layout adaptation
Local liaison
Local production
REATE

12. ©2010
Update thi smap or
create a new onw with
SJN agecncies and our
three locations in a
different color
©2010
4. Location, location , location
Offices in Boston and Malmö with representation in
Shanghai. EU President of TAAN network:
65 affiliate ad agencies on 6 continents
reaching a market of 3.5 billion people
Annual billings of 1.5 billion USD

13. ©2010
Confession

14. ©2010
MYTH #1:
Translation
is one of the
biggest challenges
of marketing
in China

15. ©2010
What can go wrong

16. ©2010
Translator Adaptor Copywriter
‣ Linguistic experts
‣ Executional focus
‣ Minimum writing skill
‣ No advertising skills
‣ Grammar and clarity
‣ Linguistic experts
‣ Executional focus
‣ Good writing skill
‣ Some advertising skills
‣ Grammar and clarity
‣ Preserving clarity, style, sell
‣ Advertising experts
‣ Conceptual focus
‣ Excellent writing skill
‣ Solid advertising skills
‣ Creating concept
‣ Creating clarity, style, sell
Factual Motivational
(Not suitable for conceptual mass communication) (Suitable for conceptual mass communication)
Conceptual
What’s the difference
between translation and adaptation?

17. ©2010

18. ©2010

19. ©2010
MYTH #2:
China is an
emerging nation

20. ©2010
China has been the world’s largest
economy for 18 of the past 20
centuries. (Financial Times)
Until 1500, China also had the highest
income per capita and was the world’s
technological leader. (The Economist)
China's share of world output peaked
in 1820 at about one-third of the
global total. (OECD)
China’s global economic leadership
ended around 1850 when they failed
to partake in the industrial revolution.
(Mark Elvin)
Past:
A look back at the Chinese economy
0
2010
1850
100
2010
1500
1000
500

21. ©2010
Present

22. ©2010
Present:
London T5 vs. Beijing T3
Opened:
Size:
Time:
Cost:
February 2008
353,020 m2
19 years
£4 B
March 2008
986,000 m2
4 years
£2 B

23. ©2010
Future:
The world’s second largest economy

24. ©2010
Future:
The world’s second largest economy

25. ©2010
New World Order
0 3750000 7500000 11250000 15000000
USA
CHINA
JAPAN
GERMANY
UK
2010
0 18750000 37500000 56250000 75000000
CHINA
USA
INDIA
BRAZIL
MEXICO
2050
GDP
GDP
Source: International Monetary Fund, World Economic Outlook Database of April, 2010

26. ©2010
China has been the world’s largest
economy for 18 of the past 20
centuries. (Financial Times)
Until 1500, China also had the highest
income per capita and was the world’s
technological leader. (The Economist)
China's share of world output peaked
in 1820 at about one-third of the
global total. (OECD)
China’s global economic leadership
ended around 1850 when they failed
to partake in the industrial revolution.
(Mark Elvin)
Past:
A look back at the Chinese economy
0
2010
1850
100
2010
1500
1000
500

27. ©2010
China has been the world’s largest
economy for 18 of the past 20
centuries. (Financial Times)
Until 1500, China also had the highest
income per capita and was the world’s
technological leader. (The Economist)
China's share of world output peaked
in 1820 at about one-third of the
global total. (OECD)
China’s global economic leadership
ended around 1850 when they failed
to partake in the industrial revolution.
(Mark Elvin)
China’s global economic leadership is
restored around 2050.
0
1850
100
2000
1500
1000
500
2050
Past:
A look back at the Chinese economy

28. ©2010
Past:
A look back at the Chinese economy
China has been the world’s largest
economy for 18 of the past 20
centuries. (Financial Times)
Until 1500, China also had the highest
income per capita and was the world’s
technological leader. (The Economist)
China's share of world output peaked
in 1820 at about one-third of the
global total. (OECD)
China’s global economic leadership
ended around 1850 when they failed
to partake in the industrial revolution.
(Mark Elvin)
China’s global economic leadership is
restored around 2050.
0
1850
100
2000
1500
1000
500
2050
2500

29. ©2010
MYTH #3:
Digital marketing
& social media
don’t work in China

30. ©2010
Does the web work in China?
Comparatively
low internet
penetration
0
22.5
45
67.5
90
Sweden
US
China
Internet Penetration

31. ©2010
Does the web work in China?
China has
more internet
users that the
US has people
0
100000000
200000000
300000000
400000000
Sweden
US
China
Internet Users

32. ©2010
Does the web work in China?
200M
Chinese have
broadband vs
80M
Americans 0
100000000
200000000
300000000
400000000
Sweden
US
China
Broadband Dial Up
35%
50%

33. ©2010
MYTH #4:
China’s web is
just like the rest
of the world

34. ©2010
Is China’s web like the rest of the world?

35. ©2010
Who needs Google?
Sina Weibo (Twitter) Youku (YouTube) Kaixin001 (FaceBook)
TaoBao (Ebay) QQ (MSN)Baidu (Google)

36. ©2010

37. ©2010
A strategy for
Creating a Web Presence in China
= FaceBook
=Twitter
Blog
Blog

38. ©2010
MYTH #5:
China is becoming
“Westernized”

39. ©2010
Is China is becoming“Westernized”?
Modernization
=Westernization

40. ©2010
Is China is becoming“Westernized”?
China is
actually
becoming
more Chinese

41. ©2010
It’s actually
the West that
is becoming
Easternized
Is China is becoming“Westernized”?

42. ©2010
MYTH #6:
Our strategies and
tactics will work in
China

43. ©2010
0
30
60
90
120
PDI IDV MAS UAI LTO
USA China
PDI - Power Distance Index: The degree to which the
masses accept unequal distribution of power and are
content with it.
IDV - Individualism: The degree to which people expect
to look after themselves as opposed to being looked after
in a collectivist sense.
MAS - Masculinity: The degree to which male behavior
differs from female behavior and traits such as
assertiveness and competitiveness are accepted.
UAI - Uncertainty Avoidance Index: The degree to
which uncertainty, differing opinions, lack of structure
and “coloring outside the lines” is tolerated.
LTO - Long-Term Orientation: Versus short-term
orientation, the degree to which the society tends to take
a long-term view of issues when deciding.
Hofstede Cultural Equivalence Scale

44. ©2010
0
30
60
90
120
PDI IDV MAS UAI LTO
France China
PDI - Power Distance Index: The degree to which the
masses accept unequal distribution of power and are
content with it.
IDV - Individualism: The degree to which people expect
to look after themselves as opposed to being looked after
in a collectivist sense.
MAS - Masculinity: The degree to which male behavior
differs from female behavior and traits such as
assertiveness and competitiveness are accepted.
UAI - Uncertainty Avoidance Index: The degree to
which uncertainty, differing opinions, lack of structure
and “coloring outside the lines” is tolerated.
LTO - Long-Term Orientation: Versus short-term
orientation, the degree to which the society tends to take
a long-term view of issues when deciding.
Hofstede Cultural Equivalence Scale

45. ©2010
Understanding masculinity

46. ©2010
Biotherm

47. ©2010
Clarins

48. ©2010
Understanding the market

49. ©2010
Long-term brand vs short-term sales

50. ©2010
MYTH #7:
China’s regional
differences are as
great as Europe’s
national differences

51. ©2010
Are regional differences like the EU?

52. ©2010
Are regional differences like the EU?

53. ©2010
MYTH #8:
There is no
number 8

54. ©2010
Thank You
www.brandrants.com

55. ©2010
Web: www.theduffyagency.com
Blog: www.brandrants.com
Twitter: @brandranter
LinkedIn: Sean Duffy
Facebook: Sean Duffy
email: sean@TheDuffyAgency.com

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