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Capture Chinese love for storytelling: Content your brand !

 “Drive brand awareness through movie properties”

 Sirena Liu, CEO Filmworks China Entertainment Marketing (video conference)

–        Marketing boom in China is effective but is still immature

–        Product placement drive brand awareness through film properties

–        Film piracy is viewed as a good thing since it extends the product placement awareness

–        The cost of product placement is estimated to be above 1M RMB

Play Big via Video Marketing in China

 Leo Liang, Senior Director of National Business Development Youku-Tudou

 

–        Online video views surpassed online search queries in China

–        370M netizens visits on Youku Tudou online videos every months, 60M everyday

–        70% of visitors come from copyrighted contents

–        Youku Tudou is different from Youtube: « We don’t consider ourselves as Youtube, moreover, only a small amount of YT’s content is UGC. »

–        2013 is the year of the mobile videos watching boom

–        15M views for Chanel in 2012 on YT

–        YT is more a brand content platform rather than just a video platform

–        But social TV isn’t already a trend in China at the moment

 

 “Brands & Music: Tapping China’s Youth Consumer”

– Jean Hsiao Wernheim, Chief International Executive a-Peer Synergy Culture & Technology

 

–        History of the music industry in China

–        Access to the international music scene is authorized only since the 90’s

–        “China was closed to Western music, in the 90’s international music were permitted to be licensed”

–        No paid download market exists in China because pirate sites dominate the market

–        90% of searches on Baidu are music or entertainment in china

–        Music festivals are also booming in the country

–        Chinese favorite music style is pop music (57% of search queries)

–        Radiohead is the n°1 brand on live wishlist for Chinese audience

–        List of the most famous foreign artists in China (including banned artists like Lady Gaga)

–        Chinese music mobile sales generate strong revenues, not redistributed to the music industry

–        Jolin Tsai is considered as the Chinese Beyoncé

  

 Q&A with Eric Briones, Strategic Planning Director PublicisEtNous, @Darkplanneur

“Perception and decoding of branded content and video in China”

– Laurence Lim-Dally, CEO Cherry Blossoms – Hong Kong

 

–        Playful, young and innovative content converging the idea of western luxury are engaging and appealing for the Chinese audience

–        Contents containing happy, sophisticated and creative animations combined with storytelling are a luxury marker for chinese: there’s an existing gap in China toward animation which is a field they’re late in

–        Content containing nude scenes/celebs are perceived as too provocative and not as luxurious and elegant

–        Brands need to be very careful of the perception: fashion vs. cosmetics vs. perfumes are misleading elements because consumers in China don’t easily differentiate them

–        The glamour effect is really important in China, there’s a real need to embody the product with an aspirational figure or a celebrity who are a key driver of glamour in the country

–        The image of a strong, assertive woman is appealing but too strong for chinese

–        L’Odyssée de Cartier was a huge hit in China for production values, storytelling content, elegance, glamour and drama

–        To target younger audiences in China, the content has to be urban, tech-savvy and design conscious

–        Craftsmanship is also at the core of value for money: in-store demos of it are particularly popular in China. It also creates a value of authenticity and reassurance toward the products, conveying an idea of important know-how and heritage.

–        The idea of contemporary is also seen as appealing and adds value to the brand

–        Burberry’s 1995 ad was a huge hit: a classic East meets West (Shanghai is a particular symbol of this double culture), Hollywood and melodramatic story

–        Burberry manage to create a resonance with Chinese’s most important values (heritage, transmissions and intergenerational relations)

–        Plus, they leveraged a poetic and universal language/emotions

–        Discrete evocations of westerness and placing product as characters in the movie is particularly important (Make it subtle!)

–        Pepsi’s and Lays Chinese New Year TVC was also another hit: warmly raising emotions, family values are really important to Chinese consumers

–        Mixing modernity and traditions also works well for content in China, conciliating them enables to tap into youngsters aspirations

–        Chinese don’t want to see the real aspects (of the family,…) in ads: they crave fictional storytelling and super famous actors

–        An example of manliness done right in China : Johnnie Walker’s commercial 

Leverage China’s consumers dynamics and brand advocacy

Q&A with Normandy Madden, Thoughtful China

 

“The multi-headed dragon. Boosting growth by customizing consumer engagement across China’s diversity”

 Erik Roth, Partner, and Nathalie Remy, Principal McKinsey&Company, China & France

 

–        400M chinese migrated to cities in 30 years. In the same period, China’s GDP was equal to Greece’s GDP today

–        We expect China’s GDP to reach 17 Trillion €, 5 times France

–        There are more than 200 cities with more than 1 millions inhabitants

–        140M more consumers expected in 2025

–        45% of consumers are aged 15-25 years old

–        Chinese consumers might be the savviest in the world

–        5 trends in Chinese shopping: retail-tainment, functional products, trust in social media, value driven

–        Brands must segment Chinese consumers using geographical, generational and socioeconomic metrics; resulting in a segmenting by clusters rather than tiers

–        Consumption habits are different in wealth and geographies : there are massivly struggling households in Eastern China in comparison with North-East China where ¼ of the country’s HNWIs live

–        Going beyond regional differences is becoming key: there is a continued massive urbanization in the country (there will be 900 million chinese urban inhabitants in 2025, 20% from the 1st generation of migrants from urban areas), Megacities will rise (there are already 15 megacities (cities as big as countries) + Shanghaï is the 3rd biggest woldwide and Tianjin is also equivalent to Sweden in terms of size and purchasing power)

–        The importance of Middleweight cities are also increasing

–        228 chinese cities = 45% of the countries GDP growth

–        There’s a need to go beyond physical stores to monetize this shift

–        China’s e-tailing > UK+US+Germany+France

–        Taobao is dominating the market (C2C model like eBay), representing 2/3 of the e-tail landscape today (products of western companies are already on Taobao)

–        The B2C model is still the strongest and generates bigger growth rates, being present in this field is therefore critical

–        Social media is also imperative: Chinese consumers rely on it to make purchase decisions (They spend 46 minutes daily and 66% among them rely on recommendations)

–        Mobile is going to be huge: people possess only traditional flip-phones at the moment but 300/400 million smartphones are awaited in the country

–        What they do on mobile? Mainly shopping, reading and socializing

 

The Chinese consumer multi-channel Journey :

Starts with online search => Store visit to touch and feel the real product => online search on product features => Store visit to check price and product features => Online price comparison => Store visit to make final purchase

 

–        The winning equation consists in associating tailored products and the right distribution channel

–        You have to make your product available, which means being ubiquitous, and the right consumers know about it. If not, then you don’t exist in the eyes of consumers in China. Your presence defines the size of your brand in China

 

“Wine: When the Luxurious West meets the Thirsty East”

– Simon Tam, Head of Wine, Christie’s, China

 

“Cross-Media Marketing : Insight on the Chinese delicatessen market”

– Yueping Wang, Public Relations Manager Sopexa Group , China and Arnaud Pignol, Delegate Director Inter-Rhône, France

 

“Challenging Tastes: winning the Chinese Palate”

– Simon Tam (Christie’s), Yueping Wang (Sopexa Group), Arnaud Pignol (Inter Rhone), Erik Roth, Nathalie Remy (McKinsey&Company)

 

–        Wine growth is organic in China

–        China’s billionaires have no time to waste with non-exceptional products and their n°1 travel destination is France

–        Chateau laTour and Pétrus have dominated the market in the past 3 years

–        Hong-Kong, fueled by mainland China, is now the fine wine centre of the world according to Christie’s

–        “You have to know your clients and see things from their own perspective, know them better than your own mother”

–        Champagne has opportunities in China, but you have to find a way to make it relevant to local people’s live so it will take time to boom

–        When a product is good in China, it sells itself

–        Wine sophistication has significantly improved: they want to be able to recognize, decant and age a wine well

–        There is no male/female bias in this regard. Money is there to be spent

–        Côte du Rhône’s ad is popular in China because it is full of cultural symbols and references

–        Make efforts to adapt commercials to local references without giving up your history, find the link between them

–        Symbols insures a wider, richer and more percussive message

–        Communicating about wine in China, it’s making sure that the consumer is able to find himself his own words to define what he feels while tasting it

–        Cultural difference: Chinese drink afer they eat (while we westerners drink while we eat) 

“Embracing China’s Challenges at a Fast Pace”

 Laurent Malaveille, Global Head – Digital, CRM & E-Commerce Clarins Group, France

 Q&A with David Klingbeil, Co-founder Web&Luxe

–        Skincare dominates the beauty market in China, beauty has been more resilient than fashion, jewelry and watches

–        Internet is the primary source of information on luxury goods in China capturing more than 80% of luxury consumers, more than 60% for magazines

–        Clarins’ “China Ready” policy: adjust products to local laws and taste, listen to Chinese women, localise poduct development in order to become Chinese friendly everywhere in the world

–        Clarins’ website integrates chinese online specificities: live chat customer service, alongside phone and email, and multiple means of payment (C.O.D, AliPay, Union Pay…): CRM is key!

–        SEM & e-mail marketing are less effective in China than SMS campaigns, Weixin and WeChat: it’s all about mobile!

–        “With the planet’s center of gravity moving East, we must take more inspiration from asian tastes”

“Deciphering online interest at a local level to optimize luxury watch brands expansion within China” 

 Florent Bondoux, Head of Strategy & Intelligence Digital Luxury Group,Switzerland

Q&A with Normandy Madden, Thoughtful China

–        There is a 4B $ watch market in China

–        There’s a growing scrutiny on extravagant gift-buying and government corruption

–        Overseas buyers spend on average 11,000 € per year, with pre-purchase info done in China and purchasing made in the E.U/U.S

–        Current state: increase in searches and interest in luxury watches in China despite a macroeconomic downturn (especially for Prestige brands)

–        Omega is on top of all brands (benefiting of a 15 years presence in China) and the top 10 most sought-after brands totalize 80% of the search market

–        Chinese consumers’ tastes evolution? First they look for the brand, then the price, then the style

–        There’s especially a boom in style related searches, revealing tastes that are more and more sophisticated

–        Location is key: promoting watch models, educate them and adapt packaging by understanding local preferences

 

Day Two – March 29th

Embrace online shopping frenzy to reach the masses, Harness The Power of Mobile & Social Marketing /

 

“Reaching China’s lower-tier masses through e-Commerce: a revenue and marketing channel”

– Angela Au-Yeung, eCommerce Manager Lee JeansChina

 Q&A with Normandy Madden, Thoughtful China 

 

–        32% of Chinese shop online and there’s huge room for growth

–        Tmalls perform better than brick&mortar shops in China

–        The e-commerce landscape is vast and diverse: major comes from C2C, B2C represents 30%

–        Tapping into B2B e-commerce could generate fast and high revenues

–        Luxury brands normally don’t want to be associated with T-malls

–        D2C e-commerce site is the key for a long term growth and to collect your own data

–        Chinese consumers mainly do instant messaging and searches with their mobiles

–        China has its own Cyber Monday, Price War Day on 11/11th, which is superior to U.S Cyber Monday in terms of sales

–        Chinese are in fact the most social online shoppers in the world

 

“Beyond Fans”

– Ken HongGeneral Manager, Weibo Marketing Strategy Sina Weibo, China

 Q&A with Normandy Madden, Thoughtful China

 

–        500 M users on SW spent an average 90 minutes per day and generate 135 M posts per days, making it the most influential platform in China

–        80% of users are millennials

–        Marketers focus to much on gaining fan numbers and not enough time engaging with them

–        85% of consumers talk about events and brands on SW

–        66% of social media users follow brands (300 M users)

–        SW users spend 54% of China Goods and Services every month

–        Only 400k posts daily from brands for 3.6M daily impressions

–        “A fan must become a customer, we want BFF’s”

–        Not only your fans will see your brand content if they share your posts: reaching engaged fans + engaged non-fans (network of fans) + potential target audience (which is bigger than you think if your fans share your posts)

–        How to engage your audience on Sina Weibo? Conversation > Interaction > Relationship > Purchase

–        Think about customers in 2D

–        SW also drives trafic for e-commerce: 52M visits from SW for Taobao on Price War Day

–        Not all fans should be treated equals

–        Brands can encourage loyalty with passbook (enabling the use of coupons, discounts, QR codes…)

–        Best brands to use SW: BMW, Nike and Burberry

 

“Coding Fashion in China: Social, Vertical, e-Commence”

– Dan Xu, Vice President MeilishuoChina

Q&A with Christian Radmilovitch, Luxury and Digital Marketing Expert (France)

 

–        The Chinese e-commerce market is the largest in the world (564 M netizens)

–        Mainly a “She” economy: 60% of users are female

–        Meilishuo = Pinterest + eBay => is about inspiring more purchase desire

–        What does she want/like? => The most sought-after brands/products (Chanel, Nike Zara, H&M)

–        What’s popular/chic ? => New and hot things: following individual recommendations

–        Meilishuo is UGC centric: it’s Pinterest like and then based on individual recommendations

–        User paths = Attention => Interest => UGC => Share => Comment => Purchase

–        Content is also translated from foreign language to Chinese

–        Mobilizing KOL (key opinion leaders): Celebs, Super users and active users

–        It is a 32M female community (active users) with 100M potential users (unique visitors)

–        Data are ranked by user behaviors

–        The platform’s next step is about going mobile

–        There are existing trial club + brand pages

–        Enables interactions with leading brands (200 brands at the moment)

–        The Lancôme Case: the objectives are building awareness and preferences by using KPIs in order to drive video views and traffic to the website => using WOM, fostering engagement and creating loyalty to the brand

–        KOL’s performance: 60M fans w/ 300 pics (there are 30 KOLs w/ 200k fans each), they are fashion editors, celebs, fashionistas, … they have an accurate fashion stance in common

–        Cost for a campaign on a platform: a cost > to Tencent in terms of investment and around 8M RMB in terms of ROI

–        Most of the platform’s content is organic

Q&A with Emmanuel Vivier, co-founder Hub Institute

“Mobilization of Social”

Mykim Chikli, COO ZenithOptimedia, China

 –        Social is a cultural phenomenon in China

–        Mobile + Social = perfect match

–        There are 420M netizens in China for 360M smartphones sold in 2012, making it the 1st country in mobile penetration

–        WeChat is a combination of services, containing everything with one app, making it growing bigger than Weibo

–        Social on mobile overtook desktop in china-users most connected

–        85% of social media users already interacted with a brand in China

–        How men and women interact in China: Men gravitate to brand and like videos while Women like incentive and a little something more from brands

–        67% of Chinese use social media while watching TV

–        Multi-tasking netizens amplify TV and online video content by simultaneously chatting, sharing and involving friends

–        Go straight to the point: Engage, don’t broadcast! Don’t think about campaigns but in sustainable actions! Content and context matter! Be integrated!

–        Online TV is growing fast on tablets

 

 Q&A with Normandy Madden, Thoughtful China

 “Consumer Engagement in China: Social by nature”

Vincent Digonnet, APAC President Razorfish-Digitas, China 

–        Social media is at the center of consumer decision making & behaviors

–        Its population is mainly aged under 25 years old and consumers over 55 years old, different in Western purchasing power but same in China (25-40 years old)

–        Online users are massive content creators of content (creators, curators and spectators)

–        75% of online users post ratings and reviews at least monthly

–        Chinese people don’t trust institutions, government or medias: they trust peers!

–        Social is at the core of every marketing efforts

–        Chinese adults are 52 hours active on consuming medias: 96% active with 85% creators => they are highly connected and social

–        Tier-2 cities engage far more than Tier-1

–        Brands are still not devoting sufficient resources to China given the market size and opportunity, and moreover, are not capitalizing on the social nature of online shoppers in China those are the main reasons why brands fall short in e-commerce!

–        Brands only exist in the heart of customers: consumers create brands and marketers have lost total control of it

  Q&A Brian Buchwald, CEO and Co-Founder Bomoda, USA

“Retail Digitalization: challenges and opportunities”

Vincent Digonnet (Razorfish-Digitas), Dan Xu (Meilishuo), Angela Au-Yeung(Lee Jeans)

 –        In China, shopping is both a social and entertainment experience

–        Technology is available for mobile-social shopping, but companies don’t understand how to use them

Harness The Power of Mobile & Social Marketing

« Create engagement, trust and loyalty through email marketing”

Brian Buchwald, CEO and Co-Founder Bomoda, USA 

–        E-mail boasts the highest engagement rates of all media platforms => 63% agree is the best ROI

–        More tailored to subscribers’ content preferences which drives engagement

–        Takes less time and fewer resources to produce, making them the most cost efficient media platform

–        Images with people perform 120% greater than pictures with products only

–        China is not the West!: email delivery logistics are different in China

–        Possessing a passport is becoming mandatory and a key segmenting element

–        40% of Bomoda Subscribers answer surveys and give detailed information vs. no incentive

 

Alexis de Gemini on Beauty Academy, a Chinese reality Show produced with Sephora

–        There’s a big makeup gap in China: banned since Mao so nobody is doing it in China since 1985

–        China’s female market is learning about makeup: Beauty academy teaches them in a way that’s modern, practical and fashionable

–        Beauty Academy’s success lies in timing and the choice of good people (like in the U.S)

–        From the format creation to the diffusion of the show in China, it took 12 months

–        When you’ve finished the realization of your reality show, everything can still be censored before broadcasting

–        Results of season 1: 25M votes, 15M online views, 60k+ active fanbase on Weibo

–        2M € Budget: 1M for realization and 1M for marketing/media

–        TV is still the main engine to reach audiences: you start watching something and then you start being a social player

–        It’s product placement in a storyline: if you do only product placement, you’re doomed

–        In China, people are more interested in protecting skin than makeup, that’s why it’s the best market for skincare

–        Expectations towar reality TV are quite different in China: Westerners want drama // Chinese people crave for positive stories

–        “There are specific codes in China: if you screw them you’re done, you don’t make it.”

–        Chinese are very good at optimizing and adapting properties from the West

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