Marketing in China – 5 Pathways to Success
If you need to grow your sales and expand to new markets, China is a must due to the sheer number of people prepared to buy your products. Done right, China sales will dwarf any other market.
Start at Home
The Chinese population in Australia provides plenty of access points and you can leverage them with the right strategy. It’s not as hard as you think. Of course, everything must be in the Chinese language so getting the right professional support will not only perfect your pitch but help you spend your budget wisely.
China and Australia might be at loggerheads at a diplomatic level, but Chinese shoppers choose well-known brands, quality and health above all else and international brands remain popular (including Australian ones). But first things first, your brand needs to become known and found online.
Digital is the Only Game
There are a billion internet users in China and it is a mobile-first market with around 900 million of them accessing via mobile. Coronavirus has accelerated this trend and shopping on mobile and new habits like live streaming (and purchasing). A simple QR code is incredibly powerful to drive digital engagement right to your door.
Spending Wisely and in the Right Order
There are many steps to take to make sure your budget is not wasted and capture the most bang for your buck in your China marketing:
1. Chinese brand – this is one of the easiest things to get wrong, killing your China plans before you even start out. In a nutshell, if you don’t get this right you may not own your own brand, or you might own a brand that is a joke, has negative connotations and which no one will ever buy. Chinese buy brands to elevate their status in social circles. You must create a great Chinese brand name and protect it.
2. Build a digital base of your Chinese content
- Chinese website – designed and written (translated) for the target Chinese audience and mobile-friendly; host the website in China for speed, search/indexing and trust issues. Remember Google is not accessible in China and Baidu is its equivalent. It will be a good strategy to consider some SEO or SEM (search engine optimisation and marketing) on Baidu at a later stage.
- Social media – to build brand awareness and trust, drive traffic, and generate leads – this can be done cost-effectively, including promotions and even influencers who like your products and have followers in your target sectors. WeChat, for example, has over 1 billion active users in China and around 1.5 million in Australia; a recent Lowy Institute survey found that 84% of Chinese in Australia use it. Any brand serious about China MUST have a WeChat official account. A simple QR code can lead connections straight to you and allow you to make offers and speak to them directly.
3. Let your name be heard
a. KOLs and KOCs – you’ve probably heard of Key Opinion Leaders and they can blow the budget; Key Opinion Consumers are more cost-effective and you can target your ideal purchasers more directly with reviews and opinions.
b. Advertising – Chinese regulations are much more stringent than Australia and fines can be hefty. Well-known Australian business Blackmores was fined for misleading advertising (AUD 70,000). Always seek advice on appropriate wording as the rules keep changing.
Spend at the right time – like festivals and shopping days when buyers are more likely to find your special offer. Such promotions will garner attention as the Chinese love an offer.
4. Make your product reachable.
a. Agents or distributors will earn commissions or buy your products; they may also sell competitor products so agreements and territories are important. You’ll need to travel to China to meet them and build relationships. To get a good representative (who may have many offers to choose from) you need to have built up good marketing and brand awareness – at the very least a website and track record in Australia. Trade shows and expos (as well as reaching customers) can be a good way to identify potential representatives for your offering.
b. E-commerce – subject to changing regulations so important to keep up to date. This is the fastest growing and largest marketplace in the world so it is very competitive. Product research and reviews found on social media are really important to prospective buyers.
There are several major platforms like Alibaba and JD which can be expensive and difficult to access; there are plenty of others however that may be better suited to your particular audience, for example, Red (Little Red Book). International brands of high status are popular. You will need to sort out logistics and payment options and don’t use the machine translation option for your important marketing messages – you need to stand out and be professional.
5. Payment methods – need to be digital and on mobile, for example, Alipay (Alibaba) or WeChat pay. Australia has several payment options now.
Written By Chin Communications
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