6 trends of china social media and consumer insights

11#ALL RIGHTS RESERVED

China Consumer Sophistication Social Media

6 trends

22Prepared by Edelman Digital #CONFIDENTIAL #ALL RIGHTS RESERVED

RISRING DRAGON •Understand Riseof Social Media in China

CHINA HAS THE LARGEST ONLINE POPULATION IN THE WORLD. EVERYDAY, 400 MILLION + CHINESE PEOPLE USE QQ TO COMMUNICATE WITH FRIENDS, FAMILIES AND COLLEAGUES; 100 MILLION + PEOPLE USE SOCIAL NETWORKING SERVICES; 50 MILLION + PEOPLE POST TWEETS IN SINA WEIBO……

THIS CREATE GREAT OPPORTUNITIES FOR BRANDS TO COMMUNICATE DIRECTLY WITH THOSE NETIZENS, WHO ACCOUNTS NEARLY HALF OF WHOLE CHINESE POPULATION AND HAVE MUCH MORE POWER THAN WHO ARE NOT ONLINE IN CHINA……

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THE ONLINE WORLD OF CHINA

485 M NETIZENS 318M MOBILE NETIZENS 250M+ SOCIAL MEDIA USERS

Source: China Internet the 28th Survey Report, CNNIC, July 2011

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THE ONLINE WORLD OF CHINA: CHINA POPULATION OF NETIZENS


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THE ONLINE WORLD OF CHINA: CHINA POPULATION OF MOBILE NETIZENS


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CHINESE NETIZEN SOCIAL GRAPH

Source: Global Trends in Online Shopping A Nielsen Global Consumer Report, AC NIELSON, June 2010

Age

Education

Primary school

Middle school

High school College University +

Device

Desktop Mobile Laptop Others

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CHINESE NETIZEN SOCIAL GRAPH: CAREER BREAKDOWN


Students

White collars

Self-employed

Managers

Government officials

Jobless

88

CHINESE NETIZEN SOCIAL GRAPH: MONTHLY INCOME BREAKDOWN


RMB

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CHINESE NETIZEN ONLINE BEHAVIORS: GENERAL


June 2010 June 2011Online Behaviors Number of users

(million)Percentage(of total online population)

Number of users (million )

Percentage(of total online population)

Change

Searching Engine 386.06 79.6% 374.53 81.9% 3.1%

Instant Message 385.09 79.4% 352.58 77.1% 9.2%

Online Music 381.70 78.7% 362.18 79.2% 5.4%Online Radio 362.30 74.7% 353.04 77.2% 2.6%Blog/QQzone 317.68 65.5% 294.50 64.4% 7.9%Online Game 311.37 64.2% 304.10 66.5% 2.4%Online Video 301.19 62.1% 283.98 62.1% 6.1%Email 251.72 51.9% 249.69 54.6% 0.8%Social Networking

229.89 47.4% 235.05 51.4% -2.2%

Online Books 194.97 40.2% 194.81 42.6% 0.1%

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CHINESE NETIZEN ONLINE BEHAVIORS: ONLINE SHOPPING AND E-COMMERCE


June 2010 June 2011Online Behaviors Number of users

(million)Percentage(of total online population)

Number of users (million )

Percentage(of total online population)

Change

Online Shopping 172.66 35.6% 160.51 35.1% 7.6%

Online Payment 153.26 31.6% 137.19 30.0% 11.7%

Online Bank 150.35 31.0% 139.48 30.5% 7.8%BBS 144.05 29.7% 148.17 32.4% -2.8%Online Stock Trade

56.26 11.6% 70.88 15.5% -20.6%

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HOW BIG IS SOCIAL MEDIA IN CHINA

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SOCIAL MEDIA LANDSCAPE

TRU

ST

FREQUENCY

Sina Weibo

Renren

BBS

Taobao

KAIXIN001

LBSJiepang

Douban

LinkedIn

0

Trust measures the level of trust in a certain social media channelFrequency measures how often students use a certain social media channelThe size of each circle measures the popularity of a certain social media channel.

QQ Weibo

Groupon

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CHINESE NETIZEN ONLINE BEHAVIORS : ONLINE SHOPPING


1414Prepared by Edelman Digital #CONFIDENTIAL #ALL RIGHTS RESERVED

CRUNCHING TIGER •Understand Consumer Sophistication

While highly engaged with brands, Chinese consumers become more sophisticated, doubtful and independent.

They demand not only quality but also styles and values represented by a brand. For 8095s, they treat relationships with brands as a PARTNERSHIP and FORM OF SELF-EXPRESSION. . WHILE ADAMANTLY INDEPENDENT, THEY OFTEN MAKE DECISIONS WITH INPUT FROM MULTIPLE SOURCES

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CHINESE CONSUMER PROFLE

These eight archetypes can be grouped into three spending tiers

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CHINA CONSUMER SOPHISTICATION

November 10, 2010

Actively Involved and Highly Engaged1

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November 10, 2010

Engaging with online communities Engaging with trusted brands

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November 10, 2010

Recommended Actions by Brands

1. Listen first 2. Launch real-time monitoring system and build

social media response/action mechanism 3. Develop a social media strategy aiming at

expanding social media presence 4. Establish social media branded accounts 5. Put the training person as the account manager

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November 10, 2010

Independent but Information is Key to Influence2

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November 10, 2010

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November 10, 2010


1. Use multi-points story telling strategy • Train employees to become brand

ambassadors with a strict social media policy

• Engage social media influencers 2. Facilitate consumer experience sharing 3. Curate social media content that will be shared

on social, paid and earned media channels

Consumer will search and buzz about you either on domain or off domain and initiatives which include any form of media or content can fall into the following categories.

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Share Experience and Take Actions 3

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Chinese consumers want their social networks to know about their brand experiences online.

Chinese consumers do not hesitate to write positive experience but are also mostly like to share negative comments and join online boycott again brands they do not like

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November 10, 2010


1. Initiate social media campaigns to facilitate story telling and experience sharing by Chinese consumers

2. For foreign brands, while presenting the culture and quality traits as a international brands, deliver In China, For China message

3. Develop a healthy community with core fans to defend your brands

4. Establish social media crisis mitigation and management strategy and system

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While Online Entertainment Widely Embraced, Demand Valued-Added Content Rise4

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November 10, 2010


1. Involve all the business units/departments into your social media strategy

2. Create valued-added and informative content through working with sales/marketing/HR and legal departments

3. In China, understand how your brands are talking online and consider to embed the culture and Chinese elements into your story telling

4. Be fun but not entertaining.

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Purchase or not: they need real-time engagement; they want your response and want it now5

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November 10, 2010


1. Real-time motnirong 2. Real-time engagement with an efficient internal

response approval process 3. Maintain consumer interest and continuously

keep online buzz going by planning online campaigns and incentive programs

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Experience offline and place the order on line6

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November 10, 2010


1. Establish presence in B2C shopping and E-commerce websites in China

2. Develop APPs in Sina Weibo and Renren page to faciliate online purchase

3. Intregrate social media accounts with branded/owned online shopping websites. Facilitate information searching and encrourage sharing.

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Contact information Direct talk

Vincent LeeEdelman Digital [email protected]

Sina Weibo: @liblog