Eight rules to success in China's evolving market

 

Marketers who get on board with the new rules for product branding and sales will have the greatest opportunity to take advantage of what is still expected to be at or near double-digit economic growth in 2009.

These were the dominant themes from The Economist's fifth China Branding Roundtable held in Beijing from the 18 to 19 of September attended by more than 150 marketing executives and companies including Adidas, Coca-cola, Little Sheep, LVMH, Nokia, P&G, Samsung and TNS.

Professor Sun Baohong, associate professor of marketing from Carnegie Mellon University and visiting professor from Cheung Kong Graduate School of Business, argued that today Chinese consumers are far more savvy and switched on to marketing and advertising messages, making it harder for Western brands to break into China's market.

"Today's consumer is smart, sophisticated, demanding, inquisitive, engaged, connected and very busy. They see an average of more than 230 marketing messages blasted at them every day and they can easily grow numb to it," he says.

Sun argues that Chinese consumers have more disposable income than ever before, but far less time to enjoy it.

Sun joined Steven Xu, director of advisory services in China for The Economist Intelligence Unit and chief representative in China of the Economist Group, as co-chairs of the annual branding conference and identified eight rules marketers in China should observe when developing branding strategies.

China is changing, have you?

Are we experiencing a resurgence of nationalism? Or are Chinese consumers no longer enamored with products just because they are Western? Either way, there appears to be a trend taking shape with local consumers showing a newly found preference for local brands. For multinationals, it means the bar is raised on the challenge to establish a genuine, credible brand image with Chinese consumers.

Don't blindly follow your intuition. Take the time to learn

Marketers willing to go against their intuition, to study and understand the unique dynamics of consumer groups, whether by geographic, demographic or psychographic differences, and apply those learnings to new market development strategies are the ones who will win in China's new marketplace.

Understand the power of word of mouth

Digital media and social networking have created an environment where word spreads through consumer communities as fast in China as anywhere in the world. Companies caught ignoring issues, responding slowly to consumer concerns or worst of all misleading the market are getting pummeled online.

Don't just talk at me. Talk with me

It's hard to ignore the numbers. More people spending more time online than anywhere else. How are companies tapping social networks to better engage consumers on their terms? Turn them on and cut them loose, and you will get that all-powerful social network WOM so many marketers are struggling to achieve.

Are you ready to lead in new era of innovation?

Companies like Haier, Lenovo, Taobao, Baidu and China Mobile, which in recent years has ranked among the most well known brands in the world, are showing that you can be true to your heritage and belief system and still build powerful and meaningful brands.

Going Green? Prove it!

The new China Green Brands study shows 69% of Chinese consumers would pay a premium for products that demonstrate true environmental sensitivity. That's higher than both the US and UK. Consumers are showing more than ever they want the companies and brands that they shop to share their values. And they will reward those that do with price premium and brand loyalty. But don't even try greenwashing in this market.

The Yao Ming effect

Yes, China loves its celebrities as much as anywhere in the world, and the Olympics really put a marketing spotlight on use of athletes and celebrities to endorse products. But it also put a spotlight on the right and wrong use of celebrity endorsements. It got consumers talking about credibility of brands and the faces they pay to hawk their products.

Quality products, quality service

Chinese consumers today want to know where you are adding value. What additional services are you bringing to the table to enhance user experience, make life easier or just demonstrate that you not only you value your relationship but you will continue to work hard to earn and keep their loyalty.