Football Brands in China:

Understanding the EnvironmentA Brief: by Patrick Crowe

Contents

Introduction: What does China represent for football brands?................... 2

Engagement in China’s digital environment………………………………… 3

The key digital platforms………………………………..….…………...……. 5

How to successfully engage with Chinese fans……………….………..…. 9

Content design………………………………………….....………………...... 11

Summary………………………………………………………..………..……. 14

Contact Information………………………………………………....………... 15

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Introduction: What does China represent for football brands?

China is in the midst of a football revolution. In 2015, President Xi Jinping stated his inten-

tion for China to become a “soccer powerhouse” and began projects aimed at improving

Chinese football all the way from the pinnacle of the country’s professional game down to

grassroots ventures in schools and community centres. “Revitalising soccer”, Xi said, “is a

must to build China into a sports powerhouse as part of the Chinese dream. It is also what

the people desire.”

Indeed, the Chinese people have shown this desire for the game through a recent, intense

interest in the major European stars, clubs, and competitions. Leading football brands have

already built up significant fanbases in the country. At the same time, there is still consider-

able room for growth and for more entrants into the market.

As China focuses on the beautiful game, there are great opportunities for western football

brands looking to build equity. The country holds a vast supply of football fans who are vigi-

lant, connected, and looking to give their support to the brands that capture their imagina-

tion.

However, western football brands cannot simply use the same methods of marketing and

customer relationship management as they do in their home territory. In China, the rules of

engagement are markedly different. This brief will give western football brands a better un-

derstanding of these rules. With that in mind, it will discuss:

Engagement in China’s digital environment•

The key digital platforms•

How to engage successfully with Chinese fans•

Content design for brands looking to engage with Chinese fans•

Engagement in China’s digital environment

With the bases of their favourite stars, clubs, and competitions being thousands of miles

away, Chinese fans rarely have opportunities to engage with football brands using tradi-

tional methods. For example, buying tickets and going to a match is a huge undertaking.

For Chinese satellite fans, the best way they can engage with their favourite football brands

is through online digital platforms.

In addition to having the world’s largest internet user base – over 670 million as of Novem-

ber 2015, more than double the amount of active users in the USA at 281 million1 - China

also has the world’s most active digital environment. For example, it is estimated that

around 650 million Chinese use online social media platforms2, roughly ten times the popu-

lation of the UK.

China has a unique and insular digital landscape. A lot of the digital platforms popular in the

west are not popular in China. In fact, many of them are banned through the Chinese gov-

ernment’s strict regulation of the internet.3 The image on the following page is a snapshot

of the state of Chinese social media in 2015. (Figure 1) The graphic splits platforms into

categories based on function. In the center ring we have the major western platforms for

each category. The second ring shows us the numerous Chinese equivalents for these plat-

forms. The outer ring shows us Chinese digital platforms dedicated solely to certain recre-

ational interests rather than function. As we can see, there are a dizzying array of

platforms. Not all of them are applicable to western football brands and so we must look for

the ones that are in order to pinpoint our target audience.

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1 Source: http://www.internetworldstats.com/top20.htm

2 Source: http://makeawebsitehub.com/chinese-social-media-statistics/

3 In May 2010, the government issued a white paper on the Internet that emphasized the

concept of “Internet sovereignty,” requiring all Internet users in China, including foreign

organizations and individuals, to abide by Chinese laws and regulations.

Figure 1: China’s digital platforms

Source: Kantar Media CIC (2015)

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The key digital platforms

Next, I will discuss a few of the key platforms used by football brands to engage with Chi-

nese fans. To help with our understanding, we will look at what these platforms are, con-

trast them with western counterparts, and how football brands can use their features to

engage with Chinese fans.

Weibo

Weibo is a microblogging site that has been described as the Chinese Twitter. A group of

similar core features have allowed comparisons to be made between the two sites. For ex-

ample, both sites use hashtags to link cross-platform discussions, and both sites employ a

verification policy used to authenticate accounts.

However, there are a multitude of additional features available for use on Weibo that make

it a more dynamic and diverse platform than Twitter. This vast array of features may seem

daunting to new users, but once studied and understood present themselves as a valuable

set of tools for brands to use in their efforts to engage with fans in new and exciting ways.

The following list is a brief overview of some of the unique features Weibo has and how

they could be used to engage with fans and build brand equity.

Expansive Posting

Weibo has a 140 character limit on standard posts, just like Twitter. However, you can say a

lot more in 140 Chinese characters (around 70 or 80) words than you can in English. This

allows for more detailed posts that can tell followers more than the slender snippets offered

up on Twitter. Also, there is the option of posting a long-form post on Weibo with an unlim-

ited word count and full formatting options.

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Polls and Surveys

Should a brand wish to get their follower’s opinion on something, they can upload a poll or

survey onto their Weibo page. The content will show up on follower’s timelines, making par-

ticipation only one easy click away. This feature allows brands to get an almost instant idea

about what their fans are thinking and feeling.

Hashtag Proprietorship

Weibo allows users to claim ownership of a hashtag through an application process on the

website. This allows for brands to fully control the usage of a hashtag, allowing for greater

regulation of content.

File-Sharing

Weibo allows users to upload and share files directly onto their follower’s timeline. Whether

it’s a viral marketing campaign, information about ticketing, or the annual accounts, football-

brands can use this feature to release files relating to any aspect of their operations.

Video Streaming

Weibo allows users to upload or stream videos directly onto their pages. Football brands

could use this feature to share anything from match highlights to ad-campaigns, or even

live interviews with players.

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Baidu

Baidu is China’s answer to Google, it is by far the most popular search engine in the coun-

try. In 2015, it held 79.81% of China’s search market. Any club looking to build digital visibil-

ity with Chinese fans needs to tailor its Chinese marketing efforts to fit in with Baidu’s

output, framework, and algorithms.

Like Google, Baidu has a number of spin off products in addition to their search features,

including everything from Baidu Cloud (digital storage) to Baidu Wallet (online payment pro-

cessing) There are also popular online communities such as Baidu Space (social network)

and Baidu Tieba (web forums) These communities are significant in China’s digital world

and brands that successfully build a strong presence within these communities will reap the

benefits in the form of a burgeoning fanbase.

Brands also need to conduct thorough Search Engine Optimization (SEO) in order to

achieve a good level of visibility on Baidu. Baidu’s search algorithms are complicated, con-

stantly evolving, and catered to Chinese users. It is not enough for brands to simply trans-

late their English language websites into Chinese and expect it rise to the top of Baidu’s

search results. It is recommended that brands invest in a tailor made Chinese web-page,

using design and content aimed at appealing to the mind-set of Chinese football fans.

There is the option to invest in Baidu’s Paid Search feature, which allows anyone with a

website to pay a fee and swiftly move to the top of any searches using certain key words.

This is a big advantage in terms of building up a web-page’s visibility.

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WeChat

WeChat started out as a communication application in a similar vain to Whatsapp. How-

ever, it has grown from a simple communication application to a multi-platform service.

Over 650 million daily users4 control various facets of their lives through the application.

It is a one-stop mobile shop, on which users can do everything from book airplane tickets to

pay their utilities bill. In 2015, WeChat reported that it had been a direct driver in bringing in

$1.76 billion in entertainment and lifestyle spending over the course of the year.

Brands can have their own official accounts on WeChat and it is common for brands to

launch mobile marketing campaigns through the application. Through WeChat, football

brands have the opportunity to market everything from merchandise up to travel, tickets,

and hospitality for a match.

Although no football brand has opened up a WeChat store as of yet, there are excellent op-

portunities to commercialize brand presence on the application. In the future, we may well

see a framework in which Baidu is where fans will search for information on a brand, Weibo

is where they connect with other fans, and WeChat is where they spend money on brand

products.

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4Source: Sheng-Li Digital (2015)

How to successfully engage with Chinese fans

Most pieces looking at marketing western brands in modern China, including this one, will

tell you the same thing; some things work, some things don’t. There is no definitive list of

principles we can use to craft content that will hit the mark every time.

What we can do is look at both the failures and success stories of football brands in China

and what they can tell us about the mindset of Chinese football fans. This should give us a

good idea of what brands need to do in order to successfully engage with Chinese fans.

On the field success definitely helps football brands to engage with Chinese fans. We can

see this in Mailman Group’s trusted China Digital Football Index, or the Red Card 5, which

ranks football clubs’ digital performance in China. The top of their league table contains the

usual suspects from the England’s Premier League, Spain’s La Liga, and Germany’s Bun-

desliga.

However, it is interesting to note that winning the most trophies does not automatically

mean a club will have the best online performance. For example, we might expect FC

Barcelona’s haul of two Champions League trophies in the last five years to put them at the

very top of the list, should the algorithm be as simple as success on the pitch equals suc-

cess across China’s digital landscape. In fact, FC Barcelona sit in sixth place on the Red

Card’s league table, a full 51 points behind Arsenal FC in fifth place.

The list utilises a metric centred on clubs’ “engagement” with fans across Chinese social

media. This not only counts followers on official accounts, but mentions, reads, e-com-

merce, and the activeness of official websites and video accounts.

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5Source: http://www.mailmangroup.com/red-card-2016/

Germany’s Bayern Munich top the list. Looking at why Bayern’s engagement with Chinese

fans is better than other clubs provides brands with a framework for successfully building

equity through China’s digital environment.

The answer seems to be that Bayern are more simply more thorough in their efforts than

anybody else. The club developed a high quality Chinese language website and an official

video account on Youku, China’s answer to Youtube. Their accounts on Weibo and WeChat

featured consistent, quality updates tailored specifically to their Chinese fan-base.

All their major stars have their own official accounts as well. Playing on the observation out-

lined in the Red Card that Chinese fans are often “more attracted to star players than the

team they represent.” (Mailman Group, 2015) Bayern’s club accounts and their player’s ac-

counts make sure to share content between each other, allowing fans to engage with both.

It is interesting to note that some star player’s do not have official accounts at all, even if

their clubs do have one. For example, Cristiano Ronaldo, Neymar, and Luis Suarez are still

without official Weibo accounts at the time of writing. Offline, Bayern have dedicated them-

selves to facilitating growth by touring China in the summer of 2015 and by signing a live-

rights deal with China’s biggest broadcaster, CCTV.

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Content Design

I will now outline a few key theories regarding content design for football brands looking

to engage with the Chinese market. These theories are based upon my personal expe-

rience and observations.

Change the practices, not the identity

Understanding China’s digital platforms, language, and the motivations of its football fans is

key, but you do not need to reinvent your brand’s entire image. China’s escalating eco-

nomic and social developments encourages consumers to seek out aspirational trade ups

to heighten their status amongst peers. A good way for them to do this is by associating

themselves with exclusive foreign brands. Football brands are very much a part of this ex-

clusive group. It is often the exotic nature of these foreign brands, and their perceived

higher quality in comparison with Chinese brands, that gives them this exclusivity.

For example, Giorgio Armani says that when his brand first entered China, he painted the

door of the store in Beijing red as he thought it would appeal more to his customers.6 How-

ever, this seemed to have little effect on his brand’s engagement with Chinese consumers.

Now, Armani says he doesn’t really change his offering in China from other markets as the

customers want the Western style he sells internationally.

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6 Source: http://www.bbc.co.uk/news/business-23364230

It most certainly is a competition

A particular difference between Chinese social media and western social media is the pres-

ence of ranking systems and rewards. On Weibo, for example, users are ranked by activity

and can receive rewards for various digital achievements in the shape of “merits” which are

badges and symbols that appear on the user’s homepage. This system appears across

various Chinese social media platforms and might tell us something interesting about the

Chinese mindset. Namely, that the Chinese can be quite competitive, and like to receive

recognition for their accomplishments. This effects the way they engage with football

brands.

In 2014, Havas Sports & Entertainment group conducted a global study into fan behaviour,

attitudes, and perceptions, in order to identify a new set of principles about how people en-

gage with sports brands.7 Whilst other nations advocated the logic of entertainment in en-

gagement, meaning the overall experience and atmosphere of a sport (France & the UK),

or immersion, losing themselves in the emotion and plot of a contest (Brazil & Portugal),

China stood out as a unique outlier amongst the nations surveyed. China was the only

country that advocated the logic of engagement through mastery, or learning and under-

standing the details of sports strategy or the history behind a contest or brand.

We can liken this method of engagement to a test, in which fans are applicants hoping to

achieve a good score and do better than their peers. It makes sense then that content

based on a competition or quiz format will resonate with Chinese fans, and that prizes or

public recognition should be given to those who achieve the top scores or win.

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7http://www.havas-se.com/uploads/news/89def337a92eff46662cebf72df9483e9f8b29e1.pdf

Keep it light

China sits at a delicate point in its history in which government reforms and their subse-

quent effects on China’s economic and cultural performance have changed both the way

other nations look at China and the way China looks at itself. As such, the current political

and social situation in China is quite sensitive. It is advised that western brands hoping to

enter the Chinese market be careful when releasing any content based on social issues

and to stay away from politics altogether.

A good example of social content that might not work or at the very least needs to be care-

fully tailored to the Chinese audience is anything to do with charity. As well as tackling so-

cial issues, charitable enterprises by football brands have helped to engage with fans and

build equity. Brands gain the respect, admiration, and trust of fans through being seen to

help people. For example, the work done by Everton F.C’s Everton in the Community has

won plaudits from the British government and across the world, as well as a host of awards.

Any efforts from football brands centered on charitable activities in China may not receive

the same adulation. This is not because Chinese people are uncharitable, far from it, but

because they don’t want to be seen as needing help and don’t want the less prosperous

aspects of their society to be advertised. As we previously mentioned, it is a sensitive time

and China wants to be seen to be doing well.

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Summary

To summarise the key points:

China offers football brands unparalleled opportunities to build brand equity•

The Chinese market is insular and has unique mechanisms. Therefore, the rules for en-•

gaging with fans in the Chinese market are markedly different from the rules for engag-

ing with fans in the west.

The best way for football brands to engage with fans in China is through online digital•

platforms. Brands must learn how to use and exploit the features of these platforms.

Successful engagement through these digital platforms comes from catering to Chinese•

needs and producing a through, interesting profile of content spread over many plat-

forms.

In attempting to produce content that resonates with Chinese fans, football brands do•

not need to change their whole identity, but do need to look at what Chinese fans are

motivated by and be wary of social and cultural differences.

I hope this brief will give western football brands a better understanding of how to build

brand equity in China. If you wish to ask me any questions about this brief, or would like

more personalised research and advice, feel free to contact me using the contact details on

the following page.

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Contact Information

Patrick Crowe

5 Druids Cross Road

Liverpool

England

L183EA

Email: patrick1crowe@gmail.com

Tel: 07512071348

Linkedin: www.linkedin.com/in/patrick-crowe-965571b3

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