Slides from the event: "Digital In The Round: An eye on China", February 21, 2013 – Milan.

1. An eye on China
Social Media communication in the Middle Kingdom
Milan/Shanghai, February 21, 2013

2. Agenda
who we are
how it all started
why you should care
looking ahead

3. Who we are

4. Andrea Fenn – 安仁
Strategy Director – Fireworks
Andrea helps brands build communication
strategies on Chinese social media.
As one of the early researchers of Chinese
social media, he was one of the founding
members of the Asia Pacific social media
team at Ogilvy in Hong Kong.
Now based in Shanghai, he crafted and executed social media strategies for brands of the
likes of Ford, Hennessy, Trussardi, Armani, Ferragamo, Bulgari, and more.
Prior to his work at Fireworks, he was a research staff specialized in Chinese social media at
Leiden University, and a journalist for CNN and China Daily among others.
Andrea comes from Florence, Italy, lives in China since 2005 and is fluent in written and
spoken Mandarin Chinese.

5. How it all started

6. Photo of backwards China!

7. Photo of wangba!

8. Photo of SARS!

10. Photo of automobile forums!

11. Chinese are not on traditional media anymore
PRINT VOLUMES
43% OF CONSUMERS
DECREASE BY 10.4%
WATCH LESS TV
(between 2008 and 2010)
A YEAR
(to go down 20% by 2014)
Sources: CTR China, DCCI 2010

12. And increasingly more online
10,000,000
(new Inter net users per month)
Sources: CNNIC 2012

13. With 54.7% increase in 2012, now 58.7% of
Chinese internet users have weibo
MORE PEOPLE USE WEIBO
(than live in the United States)
Sources: CNNIC 2013

14. And there is already a new star in the social
media sky
300m WEIXIN USERS
(up by 100m in just four months)
Sources: Tencent Tech 2013

15. Why you should care

16. Virtual media, real impact: how social media
impacts perception, preference and decision of
Chinese consumers

17. What the Chinese trust
“”
15%
45%
Recommendation from Consumer review on
a person in a bar
social website
Source: Global Web Index, 2010

18. Chinese are most eager to look for corporate
information online
Users joining Social Networks for information about brands and products
Source: TNS Digital Life Report 2010

19. Chinese social media are a powerful way to reach
out to audiences
77%
of Chinese web users believe a social media
presence makes a brand more attractive
Sources: CNNIC 2012

20. And to obtain a tangible return
After a positive brand experience online
13%
Consider purchasing product
18%
Purchase product
42%
More aware of product
Recommend product to others
27%
Source: OgilvyOne Connected Report 2010

21. 230,000+
(cor porations have a registered Sina Weibo page)
Sources: Sina 2013

22. From the most diverse industries
Sources: Sina 2012

23. 你呢？
(and you?)

24. Car brands and “social media homework”
My new steering wheel,
exactly like the 2.0l
version!
I attach here the fuel
consumption table of
Just added xenon lights, my little Focus…
looking good!
Sources: real online conversations, April 2011

25. Bridge the gap: cultural differences make your
brand obscure to China, but social media can
help you

26. Images of fake brands

27. Images of fake brands

28. Images of fake brands

30. Listening to Chinese audience can teach you
unexpected things
The difference between Armani and
Zegna? That Armani is a real Italian
brand, while Zegna is a brand created by
Wenzhounese and sold as Italian.
To be frank, there are In China, LV bags are so in
too many LV fakes, bad taste that even cleaning
which does not make me ladies own at least one.
look good even if I carry
a real one.
Sources: real online conversations, May 2012

31. And sometimes misperception can take an
uncontrolled extent

32. And a more tailored communication strategy to
your specific audience
From Zero…
…to Hero.
183m media impressions
on Sina Weibo at the Beijing
Fashion Show in May 2012

33. E-luxe: luxury consumption on social media, and
how premium brands can benefit from it

34. Social media is increasingly a gentrified platform
大学生
3.3%
2.7%
3.6%
IT行业
4.2%
27.0%
私营业主
6.0%
制造业
金融房产
67% of Weixin users
6.3%
政府部
电信网络
6.6%
24.0%
服务行业
传媒娱乐
are white collars
7.2%
能源采矿
9.1%
农林化工
Weibo users earn
30% than the average
chinese
Source: Tencent 2012, Sina 2012

35. 40% of Chinese millionaires use microblogs
and 33% of them have more than
1,000 FOLLOWERS
Source: GroupM Hurun Media usage report 2012

36. 80% of luxury consumers are under 45
85% of them already engage with premium brands
online

37. An increasing number of premium brands uses
social media in China
Sources: L2 Luxury Report 2011

38. With visible effects on their business
Burberry spends 60% of its marketing budget
in digital in China. In 2011, Burberry sales in
China went up 30%.
In a BBC interview, CEO Angela Ahrendts
said: “You have to be totally connected with
anyone who touches the brand, if you don’t do
that – I don’t know what your business model is
in five years”

39. Burberry Case Study: championing
communication in China through social media

40. Burberry Case Study: championing
communication in China through social media

41. Looking ahead

42. Trendcatching: What will happen in 2013

43. Chinese social media are dominated by local
players
Sources: Ogilvy 2012

44. And will continue to be in the near future
The War of the Wei
Weibo
Weixin
• One-to-many communication with the • One-to-one communication with
general public
individual customers
• Only able to share short messages and • Able to share longer messages
news
• Narrow but precise fan base; fans can
• Can gather large fan base
share more information with the brand

45. Companies that localize their communication
will be most successful
Smart group buying on Taobao:
305 cars sold in 89 minutes

46. Companies that localize their communication
will be most successful
Lamborghini’s one million dollar car on Taobao

47. But remaining true to oneself is key
Nokia International
Nokia China

48. E-commerce is continuing to grow
China E-commerce sales volume, in billions US$
2010 – 2016 (projection)
500
457.6
450
400
372.73
350
300
284.84
250
200
177.4
150
107.48
100
55.37
50
27.18
0
2010
2011
2012
2013
2014
2015
2016
Source: eMarketer, November 2012

49. But a monopolized market makes it hard for
standalone brands to succeed
One pre-purchase One e-commerce Just a few social media
search platform
conglomerate
platforms for post-
purchase discussion

50. Closing the loop: Can Chinese social media
impact real business?

51. How to use
social media to
impact the
“last mile”?

52. E-commerce in China has a very strong social
component
48.7% have known about online shopping sites
via friends and family

53. And social commerce is quickly becoming reality
in China

54. 56% of Chinese luxury
purchases are made abroad, but only
58% Chinese
websites of international
brands have U.S. or European
store locator

55. Using Weixin to close the social loop
A long-term vision for premium brands to utilize Weixin to nurture their top audience,
increase their loyalty towards the brand and ultimately encourage sales.
Evaluate
Trigger
Purchase
Post-purchase

56. How some might be doing it soon
The Weixin online stylist

57. 有问题吗？
(got questions?)

58. Contact me:
email: af@fireworks.cn.com
skype: andrew.fenn
weibo: andreafenn