You would have to be oblivious to the daily business news not to be aware of China’s explosive economic growth. The relaxation of investment laws, the insatiable desire for technology, inexpensive labor, and an urban market with developing Western tastes are fueling great demand for multinational brands, which now compete with local brands throughout China.
Doing business in China may seem like a daunting challenge, like the proverbial task of trying to eat an elephant—doable only if you take it one bite at a time. The reality is that China is now becoming susceptible to the same kind of marketing “bites” deployed in the U.S.A., where each planned effort targets a particular consumer group with specific needs.
Marketing in China is a matter of understanding the market. China is no longer a one-size-fits-all market. Differentiation and market segmentation are taking hold in what used to be a very monolithic market. What people eat, wear, and drive differ greatly from north to south, east to west, rich to poor, young to old, city to countryside.
Recognizing both the new and old China is vital to successful marketing efforts. Tier one marketing is done in Beijing, Shanghai, and Guangzhou, followed by large cities, small cities, towns, and finally rural villages. Marketing in these different areas can vary depending upon respective category development.
Urban Chinese teens are not what they seem. They may appear to be Westernized with their cell phones, Nike shoes, and taste for McDonald’s fries, but that appearance is deceiving. Five thousand years of Confucian values run deep. China’s young people want to express themselves, but only in a safe, socially acceptable way. They’re not as rebellious as American teens; they study hard and are committed to not only get ahead, but also to please their parents.
My vision for China is to approach it through building relationships with the new Chinese advertising agencies that are trying to figure out how to establish their brands in the U.S. market. By sharing information and clients, we can serve each other and develop agency alliances based on the need to eat a couple of very big elephants.
That’s it, from the edge of the world.
Bob
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