3. Consumer Market in China

5. Happening
China

6. The new China

7. The new China
1,000 new public toilets ready in BJ for Olympic

8. The new China
4,500 cars sold everyday

9. The new China
Miss World 2007

10. Breaking Records Economically
• Over the last 22 years, total annual growth
exceeds 9% (2-3% in France, 4-5% in USA & 1% in Japan)
• 2007 GDP grew by 11.4 percent reaching
RMB24.66 trillion (US$3.52 trillion)
• 2008(Q1) grew at 878.4US $ billions, forecast
at 9.9%
• The growth rate is not forecast to slow before
2020
Source: the website of National Bureau of Statistics of china http://www.stats.gov.cn

11. Rapid Growth
1990 2007
3 CCTV channels 16 CCTV channels
Less than 1,000 local TV channels 2,700 local TV channels
None provincial satellite stations 32 provincial satellite stations
110 national newspapers 220 national newspapers
<1,000 local newspapers 1,835 local newspapers
270 radio stations 282 radio stations
2,800 consumer magazines 9,000 consumer magazines
140 Mandarin websites 843,000 Mandarin websites
20,000 of OOH media vendors 125,000 of OOH media vendors
Highest CCTV bid 26.6 million (1994) Highest CCTV bid 420 million
Advertisers with >100M budget - 4 Advertisers with >200M budget - 112

12. Explosive Web Growth
53% growth in 07 online users vs 06
210mil users (16% of population)
163mil access through broadband
50mil are mobile netizen
49.3mil bloggers
– Online users spend average 16.2hrs / week online
Data as of Feb’08 from OMD China

13. China Mobility
• World largest mobile phone owners - 565mil owner
98% ownership in Urban
Growth in usage application, such as WAP, Online,
•
Video , GPRS & Email where the current users base at
8mil
• Supplement and compliment online/TV as source for
news/entertainment
• Increasing media (print) providing wap version
Data as of Feb’08 from OMD China

14. WHO

15. Total Population of 1.30 billion
From 22 provinces,
4 municipal cities,
5 autonomous regions and
2 special administrative regions
More than 80 dialects
Different races, climates and degree of economic development

16. the average
“Chinese
Consumer”
does NOT
exist

17. the “Tier 1 Consumer” the “Tier 2 Consumer”
does NOT exist does NOT exist

18. There still are Chinese People
There are trends which we can
Feel, See and Track

19. Patriotism

20. (L) China blooms 2008
• When the outside world criticism on the
Tibet situation, young Chinese are
displaying their anger and patriotism
online through a campaign using
Microsoft's MSN China homepage
• More than 10M Chinese worldwide uses
the red heart to express their love for
China and to support Beijing's Olympic
Games
• This campaign is still going on

21. Earthquake 512
• Olympic Torch Relay was delayed for 3 days; TV
station logos and online media limit their displays to
black and white. Online advertisements removed,
cheerful TVC’s scaled down.
• Philanthropy kick-started
• Nationalist sentiment further fuelled
• Open questioning of which companies are stepping up
; e.g.,王老吉; “Metal Rooster”

22. McDonalds Under Attack, People Are
Unhappy About Its Donation
Source: http://www.topyl.com/view.php?fid=DBXW&id=2741596

23. Boycotts McDonalds
Source: http://www.topyl.com/view.php?fid=DBXW&id=2741596

24. Big M Faces The Patriots
Source: http://www.zonaeuropa.com/200805c.brief.htm#005

25. Implication
• The impact of social network in China (largest in the
world) is powerful
• Strong among the young generation
• Making how to seed and manage messages in this
space essential but difficult
Carefully watch out on patriotism and
nationalism pride

26. CASE REFERENCE
Toyota 2003

27. CASE REFERENCE
Big M 2005
Big M

28. Self - expression

29. The Shift In Authority
user
user user
user user user

30. The old authority model has
changed
Consumers now have the power

31. This impact is global
The changes are global changes
But nowhere are the changes more
pronounced than in China

32. So what are the implications of the
new empowered and self –
expressive consumers for
marketing and brands?

33. As a brand, you must be willing to
let go of your authority and allow
the consumers to own your brand

34. Pepsi Creative Challenge

35. Empowerment

36. ▪ China is the 3rd largest global market for
luxury goods after Japan and the US
▪ The annual sales of luxury products is
estimated to grow 20% till 2008 and
then 10% till 2015 when sales will
exceed USD 11.5 billion
▪ Chinese luxury consumers are between
age of 20 to 40 while those in the west
are between 40 to 60.
▪ Luxury car sales are rising at twice the
pace of the overall car market.
Currently at c.210,000 units the number
of luxury cars is forecast to be 800,000
by 2014*
Source: TNS survey, Oct. 2007; Luxury brands in China, KPMG, Nov. 2007

37. Spending Power
Shopping and beauty are the largest areas
of spending
– Increase of 39% from 2006 to 2007
– Housing necessity comes in second
to beauty
– Other areas of expenditure
 Self fulfillment
 Learning
 Social activities
 Evening fun (restaurants, bars)
 Health and body (yoga, health
clubs, spas)
 Children (educational expenses)

38. Implication
• Chinese today (especially the young adult) KNOW
themselves, CARE about themselves, RECOGNIZE
themselves, EXPRESS themselves, INSIST on
themselves, and REWARD themselves
• The anxiety of being left behind is a fierce motivation
Thus, building brand relationship is important

39. CASE REFERENCE
Branding ad?
This CNY, Chinese saw a Hit back
shocking ad; The TVC • They have forgotten about the taste of Chinese
basically says the following consumer today and the power of Chinese consumer
online, after the launch of this series of ads, Sina.com
quot;Hengyuanxiang, Yang Yang interviewed 57,505 internet user about this ad,
Yang!quot; (恒源祥,羊羊羊!) herewith the result:
slogan by looping it 12 times
for every animal in the • 88.53% felt disgusted with the ad
Chinese Zodiac. • 78.94% felt that ad like this will damage the brand
image
• 74.34% said they will never want to be associated or
buy the product

40. To communicate with
them
Not guideline but suggestions

41. Understand their Culture
Don’t blindly adapt

42. CASE REFERENCE
不怕生坏命最怕改错名
•维体 Wei Ti in
Mandarin literarily
means “Vitamin
Body”
•However, in
Cantonese it sounds
like “Yi Ti” which
means dead body

43. Surprise them, show them
something new
An average consumer sees about 400 messages a
day - they have a Phd. in advertising

44. CASE REFERENCE
• To have a WOW effect
• Engage them, they will buzz it for you
• Should always be fun with light sense of humor 
• Drive their curiosity. Draw them to you
• Should speak to them with the same language
• Make your product a part of the brand 