From Made in China to Brands from China

Stephany ZooGuohe Ad

Social Media Week 20129/26 Shanghai, China

≠Brand Equity

Brand Awareness

37 Chinese companies on the fortune 500 list

No Chinese brands on Interbrand’s list of top

100 top brands

VS

Forbes

American Brands in China have helped

Chinese brands understand what

branding is

Chinese Market: Low Brand Loyalty

65% of Chinese consumers often purchase a different brand than they intendedTraditional marketing tactics proven effective in China:• Celebrity endorsement• White papers• Pro bono work• ...

Less than 15% of US consumers purchase a different brand than they intended

VS

Starbucks: What They Have Done

• Selling the idea of being "cool", "sophisticated"

• Moderate localization emanated from its core brand

• The high price becomes a prestige symbol, a "face" that China folks would want to have

• Market position: a daily luxury and an affordable premium experience

WESTERN SOCIAL MEDIA LOCAL SOCIAL MEDIA

Facebook: 31M

Twitter: 3M

YouTube: 8M video views & 14K subscribers

RenRen: almost 80K

Sina Weibo: 0.5M

Youku: 21K visits

• 1st global brand to jump aboard the messaging app WeChat

• Targeting Chinese customers who are young, moneyed, and urban

• Promoting its WeChat presence using the distinctive customized QR codes

• Involving users in special deals, perhaps via sending coupons as messages

Starbucks: What They Are Doing Now

• Partnered with JiePang, China’s leading LBS application

• Created seasonal campaigns and special events, for example, Valentines’ Day and Christmas

• Allowed JiePang users to get discounts, free drinks and unlock virtual badges through check-ins at a Starbucks location

Starbucks: What They Are Doing Now

Newcomer: Abercrombie & Fitch

Opened its first Hollister store in Mainland China and Abercrombie & Fitch store in Hong Kong

Internationally adopted store features

In China: frequent appearances of Abercrombie & Fitch beside the Hollister logo

Use A&F’s prestigious name to push Hollister To test the market and build up the momentum to

open A&F stores in the future

New comer: Abercrombie & Fitch

Strong presence on Sina Weibo

Abercrombie & FitchWeibo contest to win a trip to the grand opening of Hong Kong’s flagship store

HollisterFrequent updates on #Hollister Fashion#, #Hollister Lifestyle#...

Challenges for Chinese Brands

Irrational sinophobia

Perceptions of Bad Quality

Worries about Intellectual Property

Whatever.

30 years ago

Today

Samsung Hyundai

HTC

South Korea + Taiwan = Cheap and Inferior Products

What Does it all come down to?

Trust

Two things Impede:

1. Chinese Brands need to discover the value of market research to identify opportunities

2. Develop Matrix management structure, to define global to local interactions

-Miles Young, CEO of OGilvy

Li ning

Made in New China

Combating preconceived notions of china in a Cunning way

Why are they still struggling?

Unclear brand positioning

Haier

• 6% global market share for whiteline goods

• 1990’s: niche markets• Now: Acquisitions• Why brand when you can buy?

• 5-6% Marketing expense

Haier

What Can Social do for

me?

A couple of numbers

of Consumers 18-25 have positive sentiment towards Chinese brands

of Consumers making more than $225k (¥1432k) reported the quality of Chinese goods have improved

or remained consistent

80%

92%

Mediapost

50%> Of Americans think that chinese goods will be

up to par with american goods in 5 years

Social and Digital targets Millenials

Empower yourself with

social

“It Took the Japanese car manufacturers 20 years to establish themselves in this country. It took the Koreans 10 years. It would take

the Chinese less than 5 years once they rev up the brand export Machine.”

-Jim Press, Chrysler Vice Chairman, former head of toyota NA

Thank you!Stephany.zoo@guohead.com