Taking chinese brands global barney loehnis
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Body level Taking China Brands to the world Bringing Global Brands to China In a digital and social world Barney Loehnis ASIA PACIFIC Digital Strategy ASIA PACIFIC Head of Mobile @barneylo 1
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Only 75 companies in the Fortune 500 and only 12 of the Top 100 worldwide brands are Chinese. This is about to change dramatically. In this presentation I exlpore some of the most successful Chinese brands and look at what has brought them success. I also review some of the challenges of launching International brands in China. What do CMO's need to know?How should digital, social and mobile play a role?
Transcript of Taking chinese brands global barney loehnis
Body level
Taking China Brands to the worldBringing Global Brands to ChinaIn a digital and social world
Barney LoehnisASIA PACIFIC Digital StrategyASIA PACIFIC Head of Mobile
@barneylo1
Brand China
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China is simply returning to its historical position
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China has 75 Co. in Fortune 500 & 12 in Global 100 top Brands
Millward Brown: BrandZ Chinese Brands
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TNS - Chinese brands going global
91% consumers think “brand China” lags global brands
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TNS - Chinese brands going global
This is the negative image that Brand China must “shake”
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"The so-called Chinese Dream, it's as fragile as this papercut. It's an illusion” Ai Wei Wei
There is so much desire in China to have a bright future
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THE BLUEPRINT8
OEM / Factory
Local ProductLocal Expansion
Establish Brand
Global Expansion
Brand Adaptation
Distribution Product DesignLocal AcquisitionMarketing Management
Appoint KOL’sSponsor Sport/eventDevelop ContentSocial Community
Product AdaptationINTL AcquisitionINTL ManagementDistributionecommerce/ CRM
CelebritiesCultural DriversKOL’sBranded ContentSocial Community
QualityCostSpeed
CostValue
MANUFACTURERS & SHOPKEEPERS
BRAND BUILDING & INNOVATION
BUSINESS AND MARKETING
Evolutionary path from a local to a global brand
Demonstrate Quality
Establish Marketing
Develop Brand
Global Marketing
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DIFFICULTY RATING10.0
1.INTERNATIONAL EXPERIENCED MANAGEMENT
2.Expanding DISTRIBUTION CHANNEL+ R&D
3.Demonstrable CONSUMER INSIGHT
4.Adaptation of PRODUCT DESIGN
5.Established CULTURAL ASSIMILATION / SPONSORSHIPS
6.Active SOCIAL & BRANDED CONTENT PLATFORM
7.INTEGRATED MARKETING / SERVICES SYSTEM
How hard is the task? How big is the achievement?What are the drivers that lead to building successful brands?
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8% WW white goods SALES1984 2011Bust & Broken
PRODUCT DRIVEN
"The way we sell online is to be transparent. We tell users everything about the phone. Telling them fully about the CPU, display, that it uses an LG battery. We give the good and the bad. And tell them how we'll fix the bad." Bin Lin, Founder
CONSUMER DRIVEN
“Taobao does not belong to China. It comes from
China but belongs to the whole world. Taobao
belongs to this generation.”
SERVICE DRIVEN
2,000 outlets and featuring in every town in China generating almost US$2BN
CULTURALLY DRIVEN
DIFFICULTY RATING
9.8
DIFFICULTY RATING
8.1
DIFFICULTY RATING
6.9
DIFFICULTY RATING
7.1
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The VICES & the VIRTUES
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Greed
Vanity
Arrogance
Assumption
Hope
Prioritization
Education
Humility
Insight
Honesty
Vices Virtues
Big brands want global domination too fast
Brands must establish a foothold 4irst, then scale.
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Brands entering China must decide where to focus. Entering China is like entering 100 markets simultaneously
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Worked around communica.ons posi.oning as being “Unexpected”:
– Launch the product but adapt it to the Brazilian market: 240 changes to the original spec – Combine compe..ve pricing and op.mal configura.on: good value-‐for-‐money with affordable, quality products
– Introduce a 6-‐year warranty, to ease concerns of “low price, low quality” with skepBcal consumers
– Increase credibility through celebrity endorsement: Brazilian TV show host, Fausto Silva•Outcome: In 2 weeks 2500 sales; 10,000 vehicles sold in two months.•Sells more cars than all other Chinese brands put together
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JAC Motors Entering Brazil Market
Highly compeBBve market within this segment
Vs
Subcompact Haches segment
Chery QQ Nissan March Hyundai HB20Fiat Uno Kia Picanto
Consumer impression of Chinese products are: “cheap” “imitations” “unreliable”
DIFFICULTY RATING
8.5
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Greed
Vanity
Arrogance
Assumption
Hope
Prioritize
Educate
Humility
Insight
Honesty
Vices Virtues
Big domestic brands struggle to know how irrelevant they are in new markets
Develop new cultural reference points that can help build the right image
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KPMG, Global Reach China Luxury, 2013
Brands need to understand where national brand adds value
How do you market the “British” in British Airways if people don’t understand “British”... If they
associate Britain with Mr Bean and Crap food?
EXAMPLE
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Chengdu Pambassador
The cutest job in the world
CHALLENGELow overseas awareness of Chengdu makes it di!cult to a"ract FDI and tourism. The city needed a globally impactful campaign to put Chengdu on the map.
STRATEGY/EXECUTIONWe executed a 3-month global competition to raise awareness of Chengdu as the hometown of giant pandas. A creative, integrated 360-degree approach, focusing on local market penetration, drove global awareness.
RESULTS
2,800 media reports
128 million YouTube views
410,000 Facebook likes
2012 growth of international visitors to Chengdu: 30.3% (compared to 1.2% national growth)
2012 FDI growth: 31.1% (compared to -3.7% national growth)
CHENGDU
DIFFICULTY RATING
8.0
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Greed
Vanity
Arrogance
AssumptionHope
Prioritization
Education
Humility
Insight Honesty
Vices Virtues
Leading brands can struggle to adapt marketing models
Redesign the marketing mix and mentality to a challenger position
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DIFFICULTY RATING
8.3
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Greed
Vanity
Arrogance
Assumption
Hope
Prioristisation
Education
Humility
Insight
Honesty
Vices Virtues
It is wrong to assume one market’s consumers will respond similarly in another
Start from scratch to 4ind insights for the market, competitors, & consumers
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Spanish basketball team.
Norway javelin champion
NBA: signed an old star Shaquille O'Neal
Follower 6,880
Follower 121,208
Lack of Management Maturity, Local insight and local culture knowledge
DIFFICULTY RATING
5.7
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Five Pillars - the systemFirst is the platform. Second, our procurement systemThird, the logistic systemFourth is our distribution systemFifth is CRM system.
ValuesIntegritycustomersexecutioninnovation.
“ Too many people focus too much on the benefits directly before their eyes, which prevent them from seeing a bigger future. Only by giving up the benefits now, can you build a long-lasting course for the future.” Yu Gang, CO-Founder
DIFFICULTY RATING
7.2
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Greed
Vanity
Arrogance
Assumption
Hope
Prioristisation
Education
Humility
Insight
Honesty
Vices Virtues
Partnerships and made too readily in the hope things turn out well.
Be paranoid and act like a start-‐up. Move management to where it needs to be
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60 countries Sells products in 160 countries. Founded in Beijing in 1984HQ - MorrisVille N CarolinaMarketing base in India. HKINTL Mgmt
DIFFICULTY RATING
9.2
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PR StakeholdersSocial PresenceBasic Ecosystem
Campaign focusSales Drivers
Build CommunityIdenBfy Champions
Always On
Paid Owned Earned
IntegraBng with Customer Service& eCommerce
Mobile backbone
Expansion of distribuBon
channels & strategic partners
Full integrated ecosystem
Social CRM
Content CreaBon
Fully Integrated
Always On
Brand Programs
Demand Programs
Initial Developing Defined Managed Optimised
Evolution of digital and social in brand building
Presence Relevancy Bonding Structural Loyalty
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Slowly the world will develop a deeper understanding of “China”
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THE END@barneylo
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