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China Marketing Trends 2020

With a population of over 1.3 billion and rapidly increasing consumerism, there is little doubt China offers an unparalleled opportunity for Australian brands. While the market can be challenging due to a unique digital ecosystem and the pace of change, the rewards are there for brands who are prepared to invest, test and learn.

China-mobile-2020

3 marketing trends for China in 2020.

China's unique digital ecosystem means that Australian brands will need to virtually completely re-engineer their marketing approach in order to reach Chinese consumers. There has never been a market where it has been more important to deeply understand the market segment you are targeting, what moves them, and where to reach them, both online and offline. And with China now leading the world in marketing innovation its no longer enough to think "mobile first", companies with an eye on being global now need to be thinking "China first".

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One of the main challenges Australian marketers face in China is adapting to the rapid pace of change. While traditional western marketing practice prioritises spending time perfecting strategy, China marketers more often take a test-and-learn-in market approach, seeing them frequently take market share and share of voice from their international competitors.

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So here are three trends that should be considered when designing a marketing campaign in China in 2019.

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1. WeChat is an Operating System for life, powered by Mini Programs

Consider:

Impact on customer experience.

Even a small amount of research will quickly convince you that WeChat is ubiquitous in China. Regarded as a “super app”, it has a Chinese user base of more than a billion people – and still growing.  WeChat is used for both personal and business communications. More and more frequently instead of exchanging business cards, business contacts will simply connect over WeChat.

 

But increasingly, WeChat is being considered as more than an app, and rather as an “operating system for life”. That is, completing everyday tasks can be made simpler and more convenient through the support of WeChat functionality, and when it comes to taking an action, users turn to WeChat.

 

As well leading in messaging capability, WeChat offers so much more; you can make payments directly from the app using WeChat Pay, hail a cab, order a meal delivery or book a holiday.

 

The backbone of the concept of WeChat as an OS for life is their Mini Program functionality. Launched in January 2017 (with a slow start), 2019 has been a huge year of growth for Mini Programs, being adopted by both brands and government services in the name of providing a convenient customer experience for their users.

 

So, what are WeChat Mini Programs?  Simply put, they are “light” apps which are built and hosted in the WeChat ecosystem, rather than being a separate app on your mobile phone. This removes the frustration of having to download and install separate applications and removes the need to move in and out of different apps on the phone.  They load quickly, use minimal phone data and can be shared in conversations.

 

Best-practice WeChat Mini Programs should provide a utility, rather than be a gimmick or solely for product promotion. When considering implementing a Mini Program, brands should ask the question – how can I add convenience or improve the customer experience? A well-considered, genuinely useful Mini Program can provide true value to your customers and through this, increase their connection with your brand.

 

Please Contact Us if you would like to consider how a Mini Program might support your brand in China.

2. WeChat Private Traffic

Consider:

Content marketing strategy, brand personality and customer journey.

In addition to WeChat Mini Programs, WeChat Private Traffic is a marketing strategy that is quickly taking hold in China. The main benefit of using this strategy is that it allows brands to communicate with their customers and prospective customers in what is effectively a closed, branded “owned” channel.

 

WeChat Private Traffic has evolved as a way to nurture prospects or increase retention with existing customers in a digital ecosystem where building email lists is completely ineffective. Where marketers from Western countries would commonly strive to obtain a prospect or customer’s email address (via social media, point of sale loyalty program registrations or other tactics) and then send them follow up communications and offers via email, this is pointless in China, as consumers do not have or regularly access email accounts.

 

Instead, using marketing best practice, brands have decided to reach out to their customers where they already are and therefore the concept of WeChat Private Traffic evolved.

 

One of the most common executions works like this: At an appropriate touchpoint along the customer journey, the prospect/customer is invited to follow a personal account of someone who is connected to the brand, perhaps the retail assistant who is helping them in store, or another staff member. As the account is a personal account (not the Official Account of the brand) updates will go into the prospect/customers Moment’s feed, and therefore are likely to be more visible and personal.  Execution is important here – posts need to be in keeping with those from genuine friends and comprise a majority of non-brand related posts. This means when the “friend” does make a post relating to the brand it carries the same impact as a recommendation from a friend would.

 

This approach is proving more successful than we would see through the traditional email nurture approach. It has the benefit of creating greater customer intimacy and allowing highly personalised one-to-one dialogue, where despite the best of intentions, most email campaigns remain limited to one-way customer broadcasts.

 

A common problem for small-to-medium Australian companies looking to market in

China is the comparatively expensive costs of advertising in China – for example the minimum ad spend for a Moments ad is currently $RMB 50,000 which must be spent in 4 days. Employing a Private Traffic strategy may be a way that these brands can test the interest of the Chinese market for a lower cost-of-entry, though it is critical to factor in sufficient budget for the human resources required, as well as content creation.

 

There is no one-size-fits-all approach to a successful WeChat Private Message campaign. Please contact us to discuss the benefits of a bespoke campaign design for your brand.

3. C2B replaces B2C

Consider: Customer experience, customer journey, data touchpoints.

“C2B means that business design and produce according to what the consumers request...this is revolutionary...business should be closely connected with the market and communicate with consumers flexibly via the Internet.” Chinese Premier Li Keqiang

 

In this model, customers communicate their personalised needs or product concepts, may participate in the design, and even dictate how much they will pay.  Brands customise based on identified requirements, determine how much to produce and launch rapidly based on flexible production lines. Brands can be more confident they are meeting the needs of their customers, therefore reducing the risk of launching a new product.

 

A C2B strategy puts customer insights at the forefront – after all, it is the customer dictating the products they need. Data from every touchpoint of the customer journey is analysed to produce products that better meet customer needs.  Through these insights as well as closely tracking consumer trends, Chinese companies are taking products from concept to launch in a matter of months, rather than weeks or years, further proving their customer responsiveness.

 

Of course, the success of a C2B approach lies in being able to both capture and interpret customer data. And this is where Chinese brands are doing things differently to many in the west. Instead of engineering gimmicky, inconvenient or cumbersome opportunities to obtain customer data, such as irrelevant questions in online forms, they are putting the customer experience first. This means designing Mini Apps that improve convenience, or entertaining assets that increase the amount of time spent with the brand. Increased engagement across all stages of the customer journey enables more opportunity to collect data. Social media platforms, and strategies such as Private Traffic, ensure communication between customers and brands is two-way, rather than focusing on push messaging to only promote the brand’s interests.

 

If we can help you better understand your customer journey and customer data, please contact us.

China Resources

China Resources

680: How China Is Upending Western Marketing Practices with Prof Kimberly Whitler.

Dedicated to promoting business and trade between Australia and China

Report: Kantar unveils predictions for 2019 media landscape

China market profile assisting Australian businesses to succeed in trade and investment.

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