Group Think, a community dedicated to developing the next generation of strategists, recently hosted an event centred around marketing to Chinese audiences. With expert speaker Ying Tiun, business and digital director at Hylink, the conversation touched on East meets West philosophies, covering the highs and lows of introducing Western brands to the region. Canvas8 attended the talk and took away some key brand insights.
Considering the idiosyncrasies of China’s major cities, Ying began the conversation discussing bike-sharing schemes. With a vast number of bicycles on the streets, she noted that newer companies would struggle to break through and distinguish their brand – in an already saturated market, picking a ‘new’ and distinct colour would prove challenging. What’s more, with ever-changing regulations, some of these bike-sharing schemes are struggling to stay afloat as various permit fees are put into place.
Regardless of industry, brands looking to enter China need an awareness of commonly used payment methods and digital communications, with platforms like Alipay, WeChat, Weibo, and Bytedance dominating the market. With internet regulations meaning that platforms like Facebook and Instagram are blocked, any ads linking to these sites – even via WeChat – will be automatically closed off.
Beyond advertising and e-commerce, some Western brands have taken the plunge of setting up physical stores in China. H&M and Zara seem to have gained popularity, but other companies haven’t been so lucky. With strategies like H&M’s ‘Kung Fu’ designs and KFC’s adapted menu, it’s apparent that localised innovation can be fruitful. With KFC’s profit from China having grown by 11% in 2018, the brand is coming to make its mark on the region’s fast food landscape.
When it comes to naming conventions, brands should have an awareness of what works and what sometimes gets lost in translation. With a slight misuse of Mandarin characters potentially resulting in a major misunderstanding, it’s essential to communicate with a native voice to gain an idea of what your brand message is really saying. One success story here is IKEA’s alteration of its name – selecting Chinese characters to translate into the term ‘comfortable homes, home furniture’.
British retailer M&S has struggled to tap the market correctly after failing to offer correct sizing options to Chinese consumers, as well as having a lack of online presence in the region. Meanwhile, Forever21 has opted to exit China after its initial launch in the tier-four city of Changshu – over an hour and a half from Shanghai – proved to be a bad move. And e-commerce giant Asos lost around £10 million after failing to take off following three years in the market.
With these examples in mind, one of the key thoughts from the Group Think conversation was the idea that ‘if you’re not willing to invest in Chinese consumers, why should Chinese consumers be willing to invest in you?’
Abi Buller is the editorial assistant at Canvas8, which specializes in behavioral insights and consumer research. She holds a degree in Creative Direction for Fashion from the University of the Arts London. Outside of work, you'll find her wandering around art galleries, practising yoga and seeking out new pastel-coloured garments to add to her collection.
