China Trends: E-Commerce in the Middle Kingdom
When this blogger moved to China way back in 2008, online shopping was not only in its infancy, but it didn’t seem to be something that would catch on anytime soon. In a country where relationships are everything, buying things from strangers behind an electronic screen sounded like something that would be incompatible with the culture and that e-commerce would not be as fully embraced as it had been in the West. What’s more, the Chinese tend to prefer cash transactions over credit or debit cards, so the odds were totally stacked against web transactions taking off. Boy, did China ever surprise us all. In five short years, according to reports by consulting firms PwC and iResearch, Inc., the value of China’s e-commerce market has soared more than 10-fold, from RMB121 billion ($19.7 billion) in the year of the Olympiad to over RMB1.3 trillion ($211 billion) in 2012. That’s beyond outstanding; it’s unprecedented. Not only is there more growth to come from further gains in the middle class population, but dependable logistical chains have not been developed in most Tier 3 and Tier 4 cities. There are tens of millions of consumers that don’t have access to the virtual marketplace yet simply because goods can’t be reliably sent to them. Given the projected growth of both personal wealth and e-commerce volume in China, companies can position themselves to benefit handsomely if they can penetrate this market. Currently, the two largest players, by far, in the e-commerce space are Tmall and 360Buy (now JD.com). Combined, they control almost 55% of the market. Amazon is the only Western brand in the top 10, coming in at #4 with a 2.2% market share. Those seemingly monopolistic numbers notwithstanding, there is still a huge opportunity for Western brands to plant a flag in this rapidly growing space. While Chinese people have been eager to embrace online retailing, they are still notoriously choosy about from whom they buy. It turns out that they base many of their decisions on recommendations and reviews from their circle of friends online. Nearly half of all Chinese consumers are active marketplace users. That is, they not only shop, but they take time to read and write reviews. And they share them. 41.8% of e-consumers in China say that they have first heard about a product or sale via social media, while 61% say that they have made purchasing decisions at least partially based off of a social media campaign. In a country where 95% of the online population in Tier 1, Tier 2 & Tier 3 cities is using some form of social media, establishing your company’s presence in that space is crucial not just for branding purposes, but for marketing and sales as well. Like in the West, establishing a social media presence in China isn’t as simple as setting up a Weibo account and posting ads. Perhaps even more so than Western consumers, Chinese netizens respond to interaction. They want to engage. Maintaining an active, dynamic social media presence is no small feat, of course, but logistical chains are maturing quickly and plugging into a network is nowhere near as hard as establishing a physical presence. For those companies that do not have the resources - or the desire - to build up a robust China team, a whole new class of companies willing to help has arisen. These third-party outsourcing firms specialize in helping Western brands gain access to the lucrative Chinese market. They can be especially helpful in working with companies to adapt their practices to best fit the needs of Chinese consumers. As one industry watcher was quoted in The China Daily, the challenges faced by Western brands require more than just linguistic and social media skills: "The online shopping market in China is quite different from the rest of the world. The key drivers are service and timely delivery. Customers are unhappy if the products are not delivered immediately and as such it would be difficult for big brands to undertake these services on their own.” As the same article notes later, there is still incredible room for growth, both for companies who can establish a presence themselves, and for smaller firms who need assistance from Chinese firms: But there is still a long way to go before companies fully realize the potential of e-commerce outsourcing, experts say. A recent survey from Tmall shows that of the more than 70,000 brands that have online stores in Tmall, only 2 percent have actually availed the outsourcing services. The same survey also indicated that nearly 86.5 percent are keen on outsourcing all or part of their online operations to third-party companies. The real boom for e-commerce outsourcers will come when more companies ride the online retail wave in tandem with the surge in Internet traffic. With growth so astounding and future prospects so good, this is an exciting time for Western brands to consider entering the Chinese market. The hurdles are high, but there is a pathway to success for those who are willing to take the chance.
There's More to the Game Than Just A Name
Foreign brands are taking off in China. It seems that anybody who has money in this growing market is clamoring to buy imported goods. This makes China a very enticing market for Western companies to enter, and success stories abound of corporations who have brought their brands to China and have achieved great success. But there are even more stories of disastrous, and even comical failures. A recent posting on our sister site talked about the importance of translating your marketing materials and even your brand name into Chinese before entering the China market. Above and beyond simple things like easier marketing and SEO benefits, translating your brand name into Chinese is a chance to define yourself in a whole new light. Even hugely successful Western brands have taken their entry into China as an opportunity to position themselves in the market with a whole new brand identity and vision. One of the most interesting Western name brands to pop up in China in recent years is a small restaurant chain in Beijing called Gung Ho Pizza: The New Zealand-born partners who founded this chain didn’t bring an established brand into China, but they did assume a distinctly Western name that has been common parlance here for more than half a century and automatically gives them a unique identity in the eyes of Chinese consumers. Their website notes the history of "Gung Ho": The term was picked up by United States Marine Corps Major Evans Carlson from his New Zealand friend, Rewi Alley, one of the founders of the Chinese Industrial Cooperatives. Carlson explained in a 1943 interview: “I was trying to build up the same sort of working spirit I had seen in China where all the soldiers dedicated themselves to one idea and worked together to put that idea over. I told the boys about it again and again. I told them of the motto of the Chinese Cooperatives, Gung Ho. It means Work Together…” This combination of English and Chinese is a linguistic jackpot. But just as you can’t judge a book by its cover, you can’t judge a brand by its name alone- even if it’s as cool a name as “Gung Ho”. To truly stand out you need to incorporate a set of core values into your brand that can then be identified with your product. To wit, the boys behind this funky chain have made a list of commitments that they stand behind and live by with each transaction. It's a list that, in China at least, is as unique as their name. It includes: Using fresh, high quality food (which is a huge concern in China): We do gourmet pizza. Great tasting healthy gourmet pizza. Pizza made from the freshest high-quality ingredients, thrown together with almost Zen-like carelessness… Our wholewheat flour is organic… Our cheese is imported... from New Zealand, a country known for the cleanest skies and purest water in the world. The cheeses on our Four Cheese pizza are all imported specialty cheeses from Europe. Making investments in local talent: We teach our team life skills like personal finance and goal attainment, we send them to school to learn new skills and accreditations in areas like cuisine, accounting and human resources. We teach our young leaders the latest bleeding edge global management techniques like the Rockefeller Habits, Good to Great and Topgrading. When they have family problems we’ll help them out and when they’re sick we’ll take them to the hospital. And if they rock it hard enough, for long enough, we make them partners. And having fun: Sure, we work hard. We work hard for the pride of a job well done, but also because that’s what we do. We work to the best of our abilities. But we also make sure we take time for ourselves. We’re just as serious about our personal lives, our friends and family, as we are about our work. How many brands in China put those kinds of values front and center? It’s no wonder that they’re making waves. In just 2 1/2 years they’ve gone from a risky venture in a single store to their delivery bikes being ubiquitous on the streets of central Beijing, coming from 3 delivery centers, 2 of which are in the heart of the city. Their vision is expansive, ambitious and delicious. They’re clearly committed to China and to adapting their Western business know-how to the local community’s needs. It’s this laser-like focus on the Chinese market -along with their consistent delivery of quality food- that has been their biggest driver of success. They stand out so much amongst the glut of Western food brands and restaurant chains in Beijing that CCTV did a glowing in-depth piece on them last fall. This is PR that you simply can't buy. The road to riches in China is full of potholes and dead ends, but for any businesses thinking about trying their luck here Gung Ho is a great example of how to establish your brand the right way and how doing so will make you well-positioned to succeed.
How do you integrate public relations and marketing efforts?
There are new product launches every day in all parts of the world. If you’re in charge of a global product launch, how do you make sure you reach the right audience, at the right time, through the right channels, on a globally scale? RØDE Microphones faced this challenge earlier this year. They are pioneers in the audio industry in the design, manufacture, installation and servicing of audio products. Since opening for business in 1967, they have never produced a consumer product. However early this year they decided to crack the consumer market and launched their new product, the iXY, which is a stereo microphone that is compatible with the iPhone®, iPad® or iPod touch®. Scott Emerton, the Marketing and Communications Manager at RØDE, told us they wanted to “wow” the world when they unveiled the innovative device at the International Consumer Electronics Show in Las Vegas, while simultaneously reaching the global market outside the show. With the media and end-users in mind, they have to be strategic and integrate their public relations and marketing efforts, in order to capture as much attention as possible. We helped RØDE to get their message across to thousands of media outlets and websites. Their announcement of the new product made use of high-quality photographic and video mediums, and was: (1) targeted to the general and industry media, (2) syndicated to our multimedia distribution network, (3) “share-able” on social media, and (4) optimized for search engines. The result was impressive with 1,300+ page views on the first day and attracted 46,000 video viewers in the first week. To achieve this kind of success, of course the product itself has to have a strategic value proposition, however the “when, how and where” aspects of the announcement also affects its acceptability and pick-up rate. [caption id="attachment_701" align="aligncenter" width="500"] The Multimedia News Release (MNR) announcing RØDE Microphones's first ever consumer product - iXY.[/caption] When you integrate your public relations and marketing efforts, the effect and impact can be huge. In Asia, we are seeing more and more integration which, our clients tell us, is not an easy task. You have to align your content, channels, and internal teams to tie your public relations and marketing campaigns together. I believe it is the way to go and we will get there, especially when we see more and more success stories from brands and organizations that adopt this approach. The business result? The product was consistently sold out for the first four months, and the demand for the product is still very high. Go to RØDE's Facebook page and see the comments and you'll know what I mean. Read more on how RØDE Microphones did it from our client story , enjoy reading! Sarah Tam is the Regional Marketing Director for PR Newswire. Follow her on Twitter at @sarah_tam.
The Multiple Meanings of ‘Media’
"The media". It's a simple term embedded with tessellations of meaning that become all the more elaborate when one expands the view to include different countries, yet around the world, those in the PR industry and their clients often refer to "the media" very generally, assuming that everyone’s on the same page. Yet media operations in China and North America, for example, could not be more different, and while companies in both countries fundamentally realize this, there are still areas where assumptions are made about the function of media that impairs companies’ abilities to bring their newsworthy stories to journalists’ attention. The US can be highlighted as a country in which "the media" triggers strong connotations, from the halcyon days of grizzled reporters barking into phones over the clack of typewriters, to its association as a benchmark of freedom of speech and a font of information that the people have the right to know. China has no such legend built up around its media; while newspapers are still major players with massive distributions, their contents are not necessarily expected to be free of bias, and with the exception of a handful of trailblazing publications, most of what ends up on newsprint is dry Official-ese once it has been filtered for acceptability. As a result, newspapers and magazines are often not considered trusted sources of information. Motivation makes the media Journalists’ motivations are one reason among many for the different ways that companies feel they need to interact with media in each environment. In the US, for example, many aspiring reporters attend journalism schools, where they are reminded constantly that their role is to serve the people as well as to get the story. “Comfort the afflicted and afflict the comfortable” is one of the first sentences young reporters are taught. But those who go on to pursue careers in journalism often do so only to find themselves in an industry fraught with closures, mass layoffs and depressing salaries. As a result, the people who stay in the industry tend to be passionate and driven in spite of the industry struggles. The situation in China is quite different, although not because journalists make good money. Actually, they do not, and they operate in a far more dangerous environment to boot, with fewer of the protections journalists are assumed to have in the West. All this, on a salary that often is barely enough to scrape by. Unsurprisingly, this environment is one that has allowed kickbacks to flourish. Companies in China have been known to offer reporters envelopes of cash for providing positive coverage of an event (or even just for showing up). It’s a firmly established practice, one that Chinese companies take as fact, but also one that can get Western companies in China in a lot of hot water with the Foreign Corrupt Practices Act should they attempt to emulate it. Likewise, Chinese companies entering the Western market thinking that they can establish a paid relationship with journalists for coverage are in for a rude awakening. Getting attention while staying out of trouble Once operators in each country have this understanding of the ground rules and how to work within them, they have a much better chance of getting media attention more effectively (not to mention legally). Maintaining social media accounts on the platforms most often used in the target country is essential; a Chinese company hoping to enter US markets needs to start getting the attention of journalists and potential clients through Twitter, for example, rather than Weibo. For those with the resources to invest, it only takes one viral video to catch the attention of a whole new target audience, as athletic brand Li Ning did in 2010 when it went after more attention for its shoes in the US. Once a journalist has heard of a company, he or she will be more receptive to a well-crafted press release. A journalist who has been approached by a company with offers of financial gain also will remember that company, but for all the wrong reasons, as will his editors and colleagues, all of whom will now be inclined to keep their distance. Even under the best of circumstances, newspapers and magazines still can be put in the position of having to defend themselves against accusations that their reporters took or gave bribes. Chinese companies eager to make headway with journalists best remember that regardless of location, reporters are under pressure to get hits for their stories; a good story needs no bribe and offering one only undermines all those involved. Those who work closely with the Western media may think this is a point that doesn’t even need addressing, yet a surprising number of companies in China, when thinking of extending a media presence overseas, will ask about who they should be seeking out to pay. Rather than watching them get burned, PR companies out to see this as an excellent opportunity to guide Chinese companies as they take their first steps into Western markets, helping them gain the media familiarity they need while generating content that translates for the target audience. Image by Flickr user Philippe Moreau Chevrolet
The New Corporate Governance Code Provision on Board Diversity for all Companies Listed in Hong Kong
Around the world, companies are embracing sustainability like never before, and the issue of corporate social responsibility is now included in policy debates and on corporate agendas. While organizations are strategizing and implementing their sustainability policies, the media, investors, and the general public are already demanding higher transparency and accountability from organizations on issues such as organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement. Every year PR Newswire helps numerous public companies to distribute their news and engage with their stakeholders. We distribute and syndicate their material information and corporate messages to media points and online channels worldwide, helping them achieve greater transparency and increase engagement. Issues related to corporate governance and disclosure have always been on our radar. In 2010, the International Organization for Standardization (ISO) launched an international standard (ISO 26000) and released a 106-page guidance document to assist organizations in contributing to sustainable development, as well as addressing the increasing demand for standardization around sustainability. In 2011, the Hong Kong Exchanges and Clearing Limited (HKEx) published a consultation paper and an ESG (Environment, Social and Governance) Reporting Guide which spurred a market response demanding amendments to the Corporate Governance Code with respect to board diversity. HKEx decided to address this issue as a separate exercise, and so in Q32012 they published another consultation paper focusing on board diversity, promoting this agenda and proposing in the paper to introduce a new mandatory disclosure provision (instead of a recommended best practice) in the Corporate Governance Code. Again, in a strong market response from issuers, market practitioners, professional bodies, institutional investors, individuals and others, almost all respondents welcomed the proposal to promote board diversity. With the broad support, HKEx adopted the proposal and the new code provision will become effective on 1 Sept 2013. This will affect more than 1,500 listed companies in Hong Kong. I had the honor last week to attend an event aimed at helping people understand the new board diversity policy. Community Business, the organizer of the event and a non-profit organization focusing on corporate responsibility, published a ‘How to' guide to encourage meaningful compliance and recommends a process for companies to improve governance through board diversity. They also hosted a panel discussion on “Towards Better Board Effectiveness through Boardroom Diversity” and released some insightful research results. [caption id="attachment_653" align="aligncenter" width="300"] Picture from the Panel Discussion on "Towards Better Board Effectiveness through Boardroom Diversity" hosted by Community Business and Sponsored by Standard Chartered Bank.[/caption] We had the honor to interview Ellie Pang, Assistant Vice President, Listing Division for HKEx, and Shalini Mahtani, Founder & Board Director for Community Business, who shared their insights and discussed how Hong Kong can keep up with global trends to enhance board effectiveness and promote the development of stronger corporate governance. You can watch the interview from the video below: HKEx deliberately did not create a guide and left it to the companies to work out their own board diversity policy. This is to encourage companies to think about what board diversity means to them, be it gender, age, cultural/ educational/ professional backgrounds, or any other relevant factors, so that they can create a policy that fits their own business requirements and goals. One of the important points that Ellie made was that the new code provision is not a prescription for corporate structure from HKEx, but represents a means of communication between the listed companies and their stakeholders, because what companies disclose on this subject matter and the explanations they give will speak for themselves. This goes back to the principles of corporate governance related to disclosure and transparency which are to encourage organizations to communicate to investors, shareholders and other stakeholders their company values, policies, who they are and how they would like to operate. As one of the businesses under the UBM plc. group of companies, we are committed to sustainability, and, here at PR Newswire, we are proud to be the regional news distribution partner for the Diversity on Board campaign initiated by Community Business. On a personal note, kudos to the catalysts of better corporate governance at HKEx and Community Business, as well as the other individuals behind the scenes. Sarah Tam is the Regional Marketing Director for PR Newswire. Follow her on Twitter at @sarah_tam.
PR Newswire Waives Distribution Fees for Sichuan Earthquake Related News Releases
A 7.0-magnitude earthquake hit Lushan, Sichuan Province in China last Saturday. According to the Sichuan Provincial Government Emergency Management Office, around 180 people have been killed, nearly 12,000 people injured, and 1.5 million people have been affected. PR Newswire announced on Monday that we will offer complimentary press release distribution service to organizations in Asia that wish to communicate their efforts of assistance in rescue and recovery efforts for the Sichuan earthquake crisis. We will waive fees through midnight on Sunday, May 5 for organizations to communicate their efforts of assistance to the media and public audiences in China. News releases from organizations announcing help to relief the disastrous situation, e.g. provision of money, goods or services, will be eligible for distribution at no charge*. Contact us at query@prnasia.com or +852.2572-8228 if you have any question. * Note: Please note that majority of the media in China receive news in Simplified Chinese, translation fee applies if you submit release to us in other languages. Our editorial team reserves the right to review releases, and will reject release that heavily promotes goods or services in the release content. Sarah Tam is the Regional Marketing Director for PR Newswire. Follow her on Twitter at @sarah_tam.
Marketing and PR: The Lines Have Blurred
For the diligent members of the marketing and PR workforce, the digital era has caused the lines between their formerly distinct roles to blur. On Wednesday, March 6, PR Newswire CEO Ninan Chacko spoke before Beijing members of the American Chamber of Commerce as part of the organization's Marketing, Advertising and Public Relations Forum (MAP) to try and elucidate the changes within and challenges posed to two industries that increasingly overlap. Also presenting: Thomas Mattia, Chairman of the Daniel J. Edelman China Group, June Jin, chief marketing officer and vice president of AutoNavi, and prolific IT microblogger and former Donews editor Keso (Hong Bo). PR Newswire China's managing director Chen Yujie stepped in at the last minute to moderate the discussion. Mr. Chako kicked off the discussion with a brief look at how media breaks down and how PR and marketing's relationships with media are evolving. Historically, he explained, marketing always focused on paid media – that which could be controlled, such as advertising. Owned media consists of the outlets that are 100% controlled by the brand or company itself, like corporate blogs and website. Earned media is what Mr. Chacko explained as everything outside the ads on a site like Yahoo.com. "It's really the editorial content and all other forms of content." But as social networks have become pervasive, consumers are now more plugged in and aware, morphing the category of earned media and requiring companies to talk back to audiences rather than just broadcast at them. Social and mobile media work as a separate layer transcending earned, owned and paid media, and they too are evolving. Content that reaches across the three categories is the driving force in starting and maintaining the conversation between companies and their prospective audience members, Mr. Chacko explained. A campaign that merges all drives impact, but “typically, most organizations aren’t structured in a way that allows them to participate in an integrated way across paid, earned and owned.” And since consumers now have the full ability to exercise their interest in content, a successful campaign is predicated on being able to deliver the right content for them. "As communicators, as marketers, as PR professionals, as IR professionals, as reputation professionals, we need to be thinking about the holistic nature of this broad environment in terms of where best to drive our brand, our reputation, our impact our outcomes ultimately in terms of the audience that we're seeking to connect with," Mr. Chacko says. The "humble press release" has thus evolved into a container for rich content – everything from videos to iPhone apps. In order for press releases to remain relevant, they must continue adapting to meet the needs of today’s environment. "The consumer’s in control," Mr. Chacko elaborated during the panel discussion. "They want to be able to find content that’s appealing and relevant to them where they want to consumer it, how they want to consume it, and that means being able to make that content available on different devices, different platforms, tablets, in different locations, whether it’s in search or social channels." For the suppliers of that content, he explains, "It begs the question, is this really a press release, or is it marketing?" Thomas Mattia, Chairman of Edelman China, followed with a brief presentation and a different sort of breakdown of the evolution of communication. Where once we had top-down broadcasts, now there is what he referred to as a "sphere of engagement", where everyone has an equal voice in the conversation. "I think the biggest challenge for all of us as communicators is getting the rest of our teams to understand, 'You don't own anything anymore. You don't control anything anymore. If you're going to be successful you have to engage,'" Mr. Mattia says. "Engage means you give up some control in order to invite people into the discussion." Not only that, but the engagement has to be maintained: "You can't stand up your Weibo account, say something and then walk away. You have to be ready to engage." One way in which Edelman helped client Volvo to engage was through their “Operator Idols” campaign, a competition held to showcase China’s best equipment operators that drew thousands of entrants and drove massive online conversation. Such campaigns require a close partnership with both PR and marketing sides of a business in order to create content that stretches across mainstream, social and hybrid media, he notes. “PR and marketing work best together, and they work worst when one reports to the other… But if you’re viewing it as a partnership, you’re coming to the table together, you really can do some tremendous things.” AutoNavi’s June Jin has worked in both marketing and PR, and now both divisions of her company report to her. She cited three books to help understand the transition that is taking place: The fall of Advertising and the Rise of PR, by Al Ries and Laura Ries The New Rules of Marketing and PR, by David Meerman Scott Siblings without Rivalry, by Adele Faber and Elaine Mazlish The last one, while seemingly unrelated to the business world, actually is a very apt addition as many companies see marketing and PR reporting to the same person and competing for resources and attention. They also now have the same customers and audiences, and thus have to learn to work together. “Even if you are a PR professional or a marketer, how are you going to win your customers or consumers?” Ms. Jin asks. “You deliver them great content.” She also noted the importance of staying social-media savvy. “Most major companies have their own IDs on Weibo… IF you wanted to complain about any company in the world, you can directly comment or write a Weibo on any social media.” Social networks like Weibo are the stomping ground of Hong Bo, who offered a less corporate viewpoint during the panel discussion following the presentations. "There are only two kinds of people in the world," he began. "The first are people, and the second are Chinese people. And there are a lot of differences between Chinese people and the rest of the world." The priorities that people have in China – such as getting their hands on poison-free milk – are unfathomable to the West, he joked. Yet the West is the source of much of the technology that is having a huge impact on the lives of Chinese, who increasingly are looking toward the West in how they approach their lives and work. But the disappearance of traditional rules has led to new ones, he said, and some of these, such as the need to be "shameless" in pursuit of success, are difficult for people to stomach. "Western companies have principles and bottom lines," Mr. Hong explains, "but for Chinese companies, the bottom line and principle are something that can be discussed after money's been made." As a result, the Chinese PR and marketing industries face different, more difficult challenges than their Western counterparts. West or East, PR or marketing, Mr. Hong made a point that resounded with the panel: the need to do away with the term "audience," which implies passivity. "It's a mistake to take the point of view that 5 million followers of your microblog account are an 'audience' who passively receive your information." As time goes on, people will increasingly become each others' content providers and media channels, and PR and marketing will need to evolve and collaborate in order to keep up. To download the presentations from the event, please visit PR Newswire's website. Photo courtesy of the American Chamber of Commerce China
China Trends: Giving Up The Bubble Ghost
Last night, CBS's 60 Minutes did a great two-part report on the real estate industry in China and the growing sense that there is a huge bubble that is about to burst here. Part 2 is an especially good eye-opener to anyone who hasn’t heard of the "Ghost Cities" being built all around the country: (Part 1 was a fabulous profile of one of China's most famous real estate moguls, Zhang Xin. You can see it here.) Given the time difference, the report aired at what amounts to the start of the business day on Monday in China and the reaction here has been swift. The chattering class lit up social media and blogs (including this one) are posting like crazy, making China's property bubble the topic du jour. In what may have been a coincidence, just after 60 Minutes aired their report, share prices of Chinese property builders started tanking everywhere, causing CNBC's Deirdre Wang Morris to nearly jump out of her Twitter feed in shock: Then the obvious cause-and-effect speculation started. Developers ended up having their worst day since June 2008. But as good as the report was, and its possible effect on Chinese stock markets notwithstanding, it was really kind of old news. Questions about the viability of China's real estate sector have been around for years. Way back in 2009 Al Jazeera's Melissa Chan did what was then a groundbreaking report on the "Ghost Cities" that were starting to pop up everywhere. But the fears are understandable. Real estate is the lynchpin of any modern economy. Eleven years ago The Economist ran a cover story about how the housing markets in the west were pretty much propping up what should have been down economies all around the world, which were either in a post-9/11 slump, or still recovering from the Asian Financial Crisis. They called it, "The Houses That Saved the World." Looking back, it seems a little foolish. America's - and Europe's - housing market was at the start of an historic rise that would dwarf any in history… and that would eventually crash spectacularly, dragging down almost the entire world with it. Real Estate giveth, and real estate taketh away. So it's no wonder that today people have the same fears about what's happening in China. Is there a housing bubble here? Yup. But the fundamentals of the market here are much more sound than they were the in US. People don't go into debt here; they buy their homes in cash, as it's almost impossible for consumers and small businesses to get loans from the state-owned banks. 50%-60% down payments are the norm. Also, the nature of home buying is radically different than the US. It's not fair to make comparisons between the pre-2008 market in the US and what's going on in China today. People here aren’t buying investments that they're looking to flip in short order. They're buying homes to live in and to fund their retirements with. Furthermore, there are actually people who could fill all of the apartments being built. The problem isn’t a lack of demand; it's that the prices for these apartments are too high, making them inaccessible to the hundreds of millions of rural people who are flooding into cities. There are even some who don’t see Ghost Cities as a completely negative phenomenon. Jonathan Anderson of Emerging Advisors Group had this to say to the Wall Street Journal just last week: They’ve certainly been a black hole, he says, but a hole that has emptied largely into the equally dark vaults of China’s state-owned banks, where bad debts can remain buried for a long time. The fundamental issue in China that is fueling this dangerous growth is that there is no other way for Chinese people to invest. Banks offer measly interest rates, and given the pace of inflation here, anybody who parks their cash into a bank ends up seeing the value of their savings decline over time. There are no mutual funds. Money can’t be moved overseas. The stock market is inaccessible (and even if it was its so rigged as to be laughable). The only thing that people have left to invest in are homes. They have become, in effect, China's 401K program. Since everybody's home is basically a piggy bank, when values go down, it's like your retirement fund deflating. A collapse here wouldn’t mean that people will be foreclosed upon and put out into the streets. Most who own aren't carrying much in the way of debt. The banks will not go under because of bad consumer loans. The problem, which they allude to in the 60 Minutes piece, is the social stability angle of people losing the value of their life's savings and potentially rioting in the streets. We've seen shades of this already in Shanghai. The Chinese real estate market is showing signs of real strain right now and local governments are having funding problems because their main source of income (land sales) is starting to dry up. But there's no way that the new government coming into power this week is going to let the engine that has been driving China's growth sputter to a halt. What you'll probably see over the next year are their attempts to engineer a soft landing and give the Chinese people new ways to effectively save for their future. Right now is probably a GREAT time to be in the business of creating legal investment alternatives for middle class Chinese who need a place to put their cash.
China Trends: Trending Towards the Chinese Consumer
China may not be projected to be the world's number 1 economy for another 15-20 years, but this month, as Flurry points out, China has officially surpassed the US as the world's biggest tablet and smartphone market: Just days into the Chinese New Year (Year of the “Snake” for anyone keeping track), China has passed the U.S. to become the world’s top country for active Android and iOS smartphones and tablets. This historic milestone takes place a year after Flurry first reported that China had become the world’s fastest growing smart device market. Since then, it took China’s rapidly growing middle class just twelve months to close the gap on the U.S. This is more than a symbolic statistical milestone. It is a harbinger of a massive shift in consumer market strength and will start to greatly affect the products that companies all over the world develop in the future. As China's economy and middle class grows, more and more products will be designed with consumers there in mind. And, like with technology that first caught on in Japan and Korea in the 1980s & 1990s, over the coming decades people in America are going to be dealing with a deluge of new toys and entertainment options to choose from that have their origins in places such as India, eastern Africa and China. It's already happening. Last year, China became the #2 movie market in the world by revenue by recording $2.74 billion in ticket sales. What's really astounding is that was an increase of more than 30% over 2011's figures. Meanwhile, in the US total ticket sales have been on the decline since 1995 (though there was a small uptick in 2012). Right on cue, James Cameron, fresh off of his box office-shattering Avatar and Titanic 3D releases, led a cavalcade of Hollywood types to China. Their mission: To secure more slots for foreign-produced films in Chinese theatres, snapping up for themselves a larger slice of this ever-growing pie. The result has been a series of deals between various studios, production houses and the Chinese government. Now, Hollywood will be tailoring some of their biggest films, the movies with the widest audiences and that are expected to have the highest grosses, to suit Chinese audiences… and censors. This year Iron Man 3 will be the most prominent film that has a Chinese co-production attached to it and will have passed muster with the censors there before it is ever seen by Western audiences. It has yet to be seen if global economic forces will be able to overwhelm the Chinese government's predilections for censorship and script-tampering, and we don’t know how Western audiences will react to films that they know have been pre-approved by Beijing. In any event, the end result s the same: Production of many studios' products are now being driven by the desires of not just US audiences, but Chinese movie-goers as well. And moves are just the tip of the iceberg. Given the dominance of State-owned Enterprises (SOEs) and the influence that the government often exerts over the market, sometimes they can create markets seemingly out of thin air. Witness the global price declines of solar panels over the past few years. To wit, the central government seems to be making a big bet on electric cars and companies there are jumping at the chance, as a recent Wall Street Journal post noted, to buy up defunct Western manufacturers. China’s Wanxiang Group received U.S. government approval just last month to purchase A123 Systems for $256 million. Before bankruptcy, A123 Systems had been America’s most advanced developer of batteries for electric cars and a recipient of $133 million in grants from the federal government. And smart Western companies are continuing their product development based not on what they might be able to sell to the US market, but on what they can gain by selling to China. This week, Geely Automobile, Dongfeng Motors and other Chinese automotive firms are bidding to take over Fisker, maker of the Karma premium electric sedan. And Buffett-owned BYD plans to launch the Denza — a brand new electric car developed in a joint venture with Daimler – later this year. So does China's smartphone dominance, their new influence in Hollywood and their drive for more electric cars suddenly mean that US consumers are irrelevant? Of course not. But it does mean that just because US consumers may reject a product or idea that there isn’t a huge amount of money to be made elsewhere. US consumers aren’t the biggest kids on the block anymore.
101 Things About China – Holiday Values
With the usual cocktail of eardrum-shattering firecrackers, mass migrations, food-centric family gatherings and endless song-and-dance TV programs, Chinese New Year celebrations – which started on the evening of February 8 – are only just starting to wind down. The holiday serves as a demarcation point for both companies and individuals in China; debts must be paid before the New Year, but any work that requires long-term focus or consideration is often postponed for after the holiday. "We'll take care of it after Chinese New Year," is a common response to enquiries in the days and weeks beforehand. Since so much of the country's activities are framed by these festivities, having an understanding of this holiday and what it represents is essential for companies doing business in China. Pre-Game the Holiday Much in the way that new products are often launched before the Christmas shopping season in North America, the market is ripe for similar promotions in China before the Lunar New Year. This is the time of year when people tap into the money they have saved over the course of the year to buy gifts to take home to their families. Some of them have not returned home in years. As with most Chinese holidays, a huge emphasis is placed on food, both with the nianyefan meal on New Year's Eve and as a form of gift for friends and family. Beyond food, expensive gifts are popular as a way of conveying respect to the recipient, while the gift-giver gains "face", or status, in being able to provide such a fine gift. Children are the lucky recipients of yasuiqian, aka cold cash in red envelopes, a tradition that leaves adults feeling rather deflated by the end of the holidays, depending on how many kids they know. The lunar new year – which falls in January or February – conveniently is always preceded by the Christmas rush in the West, so companies need only tweak their campaigns accordingly to approach the Chinese market at the peak of shopping season. Timing in all of this is key – New Year's Eve and day are the biggest days of celebration, but the holiday extends for 15 days, ending with Lantern Festival. Work may officially resume seven days after New Year's Eve, but many take additional time off to travel to their hometowns, and business activities don't really begin to normalize until the full holiday has passed. TV Takes Over As a result of the urban exodus, the means by which companies usually try to reach audiences – the internet, email, press releases aimed for media outlets – can all fall on deaf ears as urban office workers head back to their hometowns. But while many lose their high-speed internet connections, few are the moments in China when one is not in close proximity to a television, including on all forms of transportation. Television, as has been discussed, is still a viable medium for capturing an audience through loud, splashy ads. It is the constant background of family gatherings – in fact, the tradition on New Year's eve is for families to gather around the TV for over four consecutive hours of entertainment in the form of galas, with state broadcaster CCTV's being the most famous of the bunch. To give a sense of scale, CCTV's performances this year included Celine Dion singing a duet in Chinese with diva Song Zuying. While CCTV's gala, known as the "Chunwan", runs ad-free, the airtime surrounding the event is a different story. With the potential to reach up to 700 million potential viewers, the 10 minutes before the Chunwan commences are what China's famous angel investor Cai Wensheng went so far as to refer to as a "barometer of the economy" determining which industries are profitable. This year, while the nation's populace may have been taking a break from their computer posts, Internet companies still did their best to stay on their minds with an onslaught of TV advertising. Unexpected Factors Even the best-prepared companies cannot always anticipate factors that will influence buyers' decisions during the holiday. In Beijing at least, there were two big ways in which New Year was celebrated differently this year compared to last year for a uniquely Chinese reason: the government. In 2013, authorities asked people to light fewer fireworks to help deal with the capital's burgeoning pollution problem, and people heeded the call. The Wall Street Journal, via Xinhua, reported that people purchased 45% fewer fireworks than last year. Also notable was the news that purchases of expensive hard liquor, or baijiu, were down in the wake of pledges to cut back on the expensive government banquets that often feature copious drinking. Even with stores discounting the prices of the most expensive brands of baijiu, at over USD 200 per bottle, Moutai still remains outside the reach of many consumers. Holiday Exports China is an established factor in the global economy, but soft power exports in recent years have increasingly factored in the day-to-day lives of citizens of other countries. With a huge uptick in the number of Chinese studying abroad or working overseas, as well as rising numbers of Chinese who can afford to travel abroad recreationally, Western companies are seeing an opportunity in holidays like Chinese New Year. This year, Harrods in London sold snake-themed gold bullion, Louis Vuitton offered snake monograms, and Mercedes Benz even launched a snake-themed smart car. While bringing Western holidays to China certainly has seen commercial success, more companies are seeing the value in embracing the holidays already important to the Chinese, a trend we can expect to see continue through the Year of the Snake and beyond.
101 Things About China – Tech in Hand
One could be forgiven for thinking the zombie apocalypse had made an early arrival in Beijing. Every morning, millions of commuters squeeze into the Chinese capital's subways, buses and taxis. Moving as one, they shamble along, and much of the time more heads are bent over smartphones than not. If you peer over the shoulders of your fellow commuters here, it's easy enough to see what they're doing. Some watch movies or play games, but a surprising number of travelers are reading: novels, the morning news, and quite often, microblog feeds. Cell phone market saturation in China is at near totality, and smartphones are set to occupy a larger percentage of that share in the coming year. We've talked about Chinese social media on this blog before, but as we look toward a new year of challenges and opportunities in the country that has taken a strong lead as the world's largest smartphone market, it's time to sneak another peek at how China's mobile online media is evolving, and how companies can make better use of these developing trends. WeChat Many of the major social networking app players in the smartphone market will be familiar to avid China watchers, but there's one rising star that took 2012 by storm: WeChat. Tencent's WeChat (originally known as Weixin) revolutionized communication among urbanites in 2012, with a reported 200 million users signing up for the free text and voice messaging platform in China alone. Any user with an internet connection can send texts to contacts, conduct group chats, send images or post them to a public feed like Weibo's. Regular updates since the app launched have enabled users to sync contacts from Tencent's powerhouse QQ instant messaging service. More recently, the service has started to take off overseas (where it encountered brief controversy over censored search results), with users being able to log into WeChat via their Facebook accounts. How to monetize WeChat is the next big question, and part of what will make their expansion of services something to watch in the coming year. The Wall Street Journal reported that Tencent's online payment platform TenPay will be incorporated into WeChat, enabling users to make purchases in stores by simply scanning a code. Already WeChat has made it possible for account holders – both corporate and personal – to create their own QR codes. With a built-in QR code reader, users simply scan the codes where they find them to start following friends and companies, and rapid adoption has seen the codes popping up everywhere from social media profiles to restaurant menus. Sina Weibo Sina Weibo continues to be a major player both on PCs – where it is still mostly accessed – and on mobile phones. Sina Weibo's registered users tipped 400 million last year, no small number of whom were posting on New Year's Eve, when the microblogging platform logged 729,521 messages in the first minute of 2013. These are landmark figures for what may be a big year for Sina Weibo, as upstarts like WeChat have pushed the company readjusts focus on the mobile internet market. For companies with a China presence, using Weibo is a no-brainer. But those who remain under the impression that all these users and their followers are China based should think twice – plenty of politicians, companies and celebrities from outside the country have recognized the value of keeping Weibo accounts in both English and Chinese. Vancouver mayor Gregor Robertson posts to his Weibo through an assistant in Mandarin to reach his 72,800 "fans", as Weibo followers are termed. Bill Gates' posts also show up in Mandarin for more than 3 million followers. And recently Brad Pitt made waves for opening a Weibo account before even securing a Twitter handle. With services now available in English, expect to see the number of Western users rise as they seek to encourage investment, promote campaigns and spread old-fashioned good will. Utilizing these very popular, and very free means of communication are great ways to hear what people have to say and to respond accordingly, rather than simply talking at customers. The popularity of both shows that Chinese consumers have a continued desire for engagement and interaction through platforms that make them feel like individuals, rather than like faceless members of the morning commute. Through keeping an eye on what's trending, companies have a great chance to position themselves where they want to be, both in the market, and in the hands of their potential customers.
If China is Important to You, Sina Weibo is Important to You
One thing journalists really hate is to be told by their editors that they have “buried the lead.” It means the point of the story is not obvious from the first few paragraphs, and that the “lead” or premise of the story is buried too far down in the story. As always there is a lot of news right now about China. These are all important stories. But look closely here, because none of these stories directly affects you or me: · A strike by journalists at a newspaper to protest censorship over their stories. · The government tightening control over the Internet and of Western media. · The air pollution that is literally off the charts and besieging everyone in Beijing. · The challenges facing Yum Brands, particularly in its lucrative KFC unit, in China. · And more. The media have buried the lead. The real story, the only one that really matters to global companies conducting business in China, is tucked inside all the coverage about Yum and the supposedly tainted chicken from one of its suppliers. Are these stories true? It doesn’t matter. Because people spread rumors faster than the flu. Consider this comment deep in a story by The Wall Street Journal … “Companies everywhere have had to adapt to the Internet’s power to affect their reputations. But responding to the growing power of China’s digitally connected and increasingly quality- conscious consumers can be especially tough. Local sites and social media frequently carry allegations against companies, many of them ill-founded and outlandish – thanks in part to skepticism born of the government’s long-standing lack of transparency. Foreign companies face particular scrutiny, and guessing which rumors might mushroom into a crisis isn’t easy.” I don’t agree with that last comment, because actually it is easy to guess which rumors might turn into a crisis. If there is a rumor, there will be a crisis. The reason is Sina Weibo. Sina Weibo is the Chinese version of Twitter, although frankly it might be better. There are more than 400 million people on Sina Weibo. They talk about anything and everything, because they can. That is, Sina Weibo is the one channel most people have available to them to learn what is happening in the country, and to offer comment and opinion on these events. Inevitably, the fact that people talk on this social network about everything that they learn from this social network, spawns rumors as well. This is precisely how news stories broke about the supposedly tainted chicken that KFC was receiving from one of its Chinese suppliers. (Yum and KFC apologized in China, but elsewhere maintained that those food supplies are safe.) Because there are so many people talking about so many topics on Sina Weibo, journalists scour Sina Weibo much as they do social networks here looking for discussions that can yield stories. Sina Weibo is about to launch an English version. That means that not merely Chinese journalists or other journalists who can read Chinese will have opportunity to investigate Sina Weibo for stories. So will anyone who can read English. And that means many, many more journalists trolling for stories. What does this mean for you? You cannot ignore this social network. In fact, you cannot simply monitor conversations about your company in an effort to identify potential problems. That won’t be enough to prevent or mitigate problems that erupt via Sina Weibo. You have to participate on this network. You have to be there, and you have to talk about trending topics on this network with others. If you have Chinese customers and employees, they are already on Sina Weibo. Certainly they will read anything about your company. But more importantly, they will read everything from your company too. And that can keep customers and employees loyal when any rumors start about you on Sina Weibo. If China is important to you, Sina Weibo is important to you. Reproduced with permission from the author
Build a Better Press Release
Engaging readers with concise, consistent, accurate copy There are two false presumptions that prevail when first learning to write press releases: that it will be really easy, or really difficult. Approaching the task with either of these extremes in mind will undermine writers from the get-go, because in fact, the truth lies somewhere in between. With a little preparation and a basic understanding of both your company’s needs and the requirements of your newswire, crafting an effective press release can be speedy and painless. On the other hand, skipping that step – like neglecting to read the manual for your new digital camera or gas-powered barbeque grill – is a recipe for general frustration at best, and a flaming mess at worst. Keep it Snappy and Smart Your headline is the first thing anyone sees, so seize the opportunity to craft a statement that is short, eye-catching, informative and enticing. Subheads, when used, are a chance to provide readers with the extra boost to lure them into the full press release. They too must remain concise. However, brevity is not the only goal here. Headlines and subheads that garner stronger search engine results are those that include the name of the company in question and terms that venture beyond the generic. For example: Weak Headline and Subhead Dumpling-Eating Competition Winner Declared on Saturday Many people participated in the world-famous challenge Better Headline and Subhead Beijing Dumpling-Eating Contest Sees Surprise Winner 7-Year-Old Girl Triumphs Over Hundreds The stronger headline and subhead still manage to convey all the information of the lengthier versions, while doing so in a way that has a better chance of convincing readers that the content is interesting or relevant to them. Journalists who receive your content have a choice in whether or not to run with it, but the majority of content ends up on the web via other channels, so it’s essential that the headline, when viewed as standalone text as on a news page or Twitter feed, be written appealingly in order to encourage readers to click through to the full press release. But the pressure doesn’t end there. You’re reading this on a screen right now, and so you know as well as anyone else how readers are bombarded incessantly with information. Those who make it past a headline and subhead may read the first paragraph and then move on to the next story. It is therefore essential that that first paragraph relays all the information time-strapped readers require, while still trying to draw them further into the story. One way of ensuring readers and journalists don’t toss a release to the side is by keeping the content as newsworthy as possible. Do this by providing information that is useful to the target audience, taking care not to get distracted with overly flowery language or tangential topics. For most subjects, around 400 words is plenty. Consistency and Credibility A company will never need just one press release in its lifetime, so it’s important to maintain consistency in how they are presented. Not only does this increase the company’s credibility in the eyes of journalists, stakeholders and the general public, but making sure certain boxes are ticked each time a release is drafted ensures that it efficiently moves from production to distribution. Basic points to check before sending a press release include: Is the dateline accurate? Is the point person’s contact information appropriate and correct? Is the company or product name correct and used consistently throughout? (It seems straightforward, but this appears as a problem more often than one might think.) Is the source of the release clear? Is the content attributed correctly? Are all URLs and anchor text links configured properly? Are references to celebrities, legal matters or public companies done in accordance with the standards of the newswire? Do you have an appropriate image to include with your release? Sensational content or that which makes unsubstantiated allegations will send up an immediate red flag with readers and reporters, as will broken links or errors in names and contact data. All of this information should be cross-checked during proofreading. Establishing a style guide, while time-consuming at the start, is an extra step that will help you and your proofreaders eliminate many future questions about spelling, punctuation and grammar. As the saying goes, “An ounce of caution is worth a pound of cure.” A lot of trouble can be saved by getting the little things right the first time around. Beyond the Facts Content accuracy is a clear and essential component of any good press release, but a great press release goes beyond presenting readers with a correct but staid blob of text. High-quality content should read like a news story, immediately catching the attention of the journalists who receive it. And what components are needed to make a press release appear most newsworthy? For journalists, the best content is informative and appears to have no bias. The material should not be able to be confused for an advertisement; Content should be clear, straightforward and written in the third person only, with the exception of quotes; Quotes from a relevant and prominent individual in your company give your release authority and provide a space to allow for more opinionated or colorful content. A quote makes a press release far more interesting to journalists than one without, unless that quote is rehashed, generalized information about the company that doesn’t tell readers anything new. Know Your Audience These days, journalists are no longer relied upon as the exclusive gatekeepers of content. The internet enables companies to reach every audience imaginable, but gearing content toward everybody isn’t really an effective strategy for maximizing a press release’s potential. When writing, keep a tight focus and think about keywords – the kinds of words you would enter in a search engine when seeking this content instead of providing it. Try not to think only about what it is the company is trying to say; think as well about what the audience needs to hear. By paying close attention to these details, not only does the process of crafting a press release from start to finish becomes streamlined and painless, but the potential for the information to reach a wider audience is maximized. There’s no reason, then, to allow bad press releases to hold information back when clean, credible and concise content can be boosting your company’s good name.
Q: Why Should I Send a Press Release?
A: There have been many discussions over recent years about the death of the press release, and while I'll be the first to admit that the press release has evolved during this time, it certainly hasn't died. The press release is indeed alive and kicking, and if you are one of the few who truly believe that your organisation can live without sending press releases, here's what you're missing: 1. Press Releases can be the Foundation of Your Content Marketing Content marketing is about driving profitable consumer actions. In order to do that, you need to create and share content, and while the press release is not the answer to everything, there are few tools available that have the reach and staying power of the trusty press release. Using press releases as part of a sustained and integrated content marketing strategy should be the foundation that allows you to build success. Press releases offer a great addition to your link-building and SEO strategies, and if you use the right distribution methods, the number of high quality sites your press release can appear will ensure that your press release is found and well-positioned to drive traffic back to your own website. Press releases also offer an excellent way to build authority, as you use them to start the conversation, and it's this combination of factors that make the press release hard to beat. 2. Press Releases are Great Tools for Storytelling Your company needs to tell a story. It's no longer enough to only send out content that is designed to inform. Your content needs to be attractive, and press releases and storytelling can go hand-in-hand to create content that is both engaging and informative. Whether you're telling people how your business has evolved or the problems your business is trying to solve, press releases provide an opportunity to ensure people not only find your content, but that they also connect with it. If you are looking to captivate, entertain and converse with your stakeholders, you could do a lot worse than send a well-written press release. 3. Press Releases can be Effortlessly Shared Across Social Media Platforms Press releases = content that can be found and engaged with, and this includes social sharing. Today, if you're distributing press releases through services that don't provide social sharing options, you're probably cutting the wrong corners. In order for people to share and engage with your content, they need to be able to take action when they find something of interest, and it's your job to make this as easy as possible. Press release headlines should then also be designed with this sharing in mind. Overly long headlines will not aid your cause because they will require additional work in order for them to be shared successfully, and this is not making it as easy as possible. Just as any good service provider would do, think about your customer, and what makes their life easier. Then, provide a level of service that can meet your customers' needs. Allow them to share across a variety of platforms, and allow them to give you the credit you deserve. If you do, you're on to a winner. 4. Press Releases can be a Hotbed for Multimedia Content There's a lot of data out there now that shows that adding multimedia content to your press release increases user engagement and online visibility. Research has noted that multimedia content can improve visibility by as much as 77%, while 80% of journalists have said it's important to include images with a press release. If you're announcing a new product, why wouldn't you want to show it off? If you're holding an event, why wouldn't you want people to see how great it is? There are so many reasons why you should be distributing images and videos as the growth of visual networks, visual engagement and visual content marketing continues, and press releases offer a great way to not only share your images and videos, but to also add context and supporting information that your stakeholders can soak up and pass along. 5. Press Releases are Still a Great Way to Make Good Ol' Fashioned Announcements Press releases may be seen as the traditional way of doing things, but there's a reason why they've survived these last 100 years, and why they are still going strong. Press releases are a cost-effective way for businesses to let people know what they are up to. Whether you're launching a new service or product, or whether you're opening a new office in a new market, press releases are still the best tool for getting your message out there, and irrelevant of whether you're looking to target print or online media and bloggers, the press release works. Can you think of any other reasons why press releases should remain a key component of your marketing and communications strategies?
#Infographic of the Week: Journalists LOVE Images & Videos
In 1911, Arthur Brisbane was quoted in an article on publicity and journalism saying that pictures speak a thousand words. Fast forward more than 100 years, and while this remains true and more pertinent than ever for PR and communications professionals, the simple truth is that not enough people are taking any notice. As you can see from my #Infographic of the Week, the journalists of this world clearly love images and videos, but the reality for PR and communications folks is that they don't see it. And, I see this reality every day, as only a small percentage of the press releases my team distributes contain images or videos. In a world where journalists have clearly stated they LOVE images and videos, and in a world where social media and online PR are taking over, the need for images and videos is greater than ever. There are so many reasons why your press releases and other content would benefit from an image or a video, and with the growth of visual networks, visual engagement and visual content marketing also highlighting why you need to include images and videos in your content, I think this infographic from PRESSfeed is a sound choice. And so, without further ado, here is my #Infographic of the Week:
101 Things About China - #9 – Television Works
In China, television is king. China may be king of the printed word, and China may have the largest internet population in the world, but it is television that sits at the head of the table. And, as highlighted in my last post, with China having the third largest advertising market in the world, television and its traditional friends play an all-important role in the burgeoning media landscape. Money aside, traditional media also remain the most trusted sources of information. Of course, this is shifting for some demographics, but not enough for you to ignore the traditional kingpins in your marketing and communications strategies. The Networks With over 370 TV channels, it may seem odd that the only national TV network is the state-run China Central Television (CCTV); with 20+ channels under the CCTV brand, it also includes the globally exported CCTV News and their newly announced 3D channel, which is the first of its kind in China. However, many local and regional TV stations can be picked up throughout the country, depending on the satellite and cable services that are available in a given region. China's media is also putting more emphasis on exporting, and television is seen as a key component of plans to expand the reach of Chinese content. This is highlighted in the recent news that China is willing to invest heavily in the digitalization of TV across Africa, and has already been seen in the exporting of CCTV News and Xinhua News Agency's decision to set-up an office in New York's Times Square. The Cost Television advertising is costly. There is no other way to put it. There has been an increase in demand for advertising space as more and more international brands look for ways to reach the ever-more affluent Chinese consumers, and this has also driven more local advertisers to want extra ad time. On top of this, there are also a number of government regulations that have pushed the cost of advertising on television even higher. Therefore, if you can afford it, and if you have the right type of product/service – consumer brands like adidas or global organizations like the WWF, for example – there are certainly benefits to getting your time on TV. The Reach High advertising costs aside, television offers unrivalled reach. With a penetration rate of 97%, television is the centerpiece for many of China's 1.3 billion citizens, and around 200 million of those are cable TV users and 88 million digital TV users; a number that is expected to increase to 268 million by 2017, according to Digital TV Research. Advertisers are clearly aware of its power, as television advertising accounts for 76% of all advertising revenues in China. It's unlikely that television advertising will lose much of its impetus in the coming years, and it will continue to excel in terms of both reach and engagement. That said, many traditional media today now also feature web platforms, like CCTV's CNTV, and these are powerful competitors to the newer online media platforms that are already fighting it out to win Chinese netizens. As touched on earlier, while television remains a trusted source of information, there are more people moving to online sources, especially younger, more educated Chinese. The variety of programming online is much more comprehensive than that available on the main networks, and there are far fewer restrictions on what you can watch and when you can watch it. Watching online is increasingly attractive as it allows netizens to QQ, weibo and catch-up on showbiz gossip while watching the latest episode of Glee. The Conclusion It's certainly wise to think online, to think mobile, and to think about effective two-way communications, but television is not yet ready to be locked up in an old store room and forgotten about. Having an integrated strategy that provides localized content to your stakeholders in China will go a long way, and television is one of the elements you might want to look at. With so many potential customers in China, success comes when you play to the masses, and television is certainly one type of media that allows for that to happen. There are obviously more cost-effective ways to reach large audiences, but few offer the same level of reach as television. And, while younger, more educated Chinese are moving online, television still works.
#Infographic of the Week: The Inbound Marketing Funnel
This week, I've decided to take a break from storytelling and content marketing and bring you something a little different: The Inbound Marketing Funnel. Created by First10 and Smart Insights, my #Infographic of the Week highlights the five steps of inbound marketing - plan, reach, act, convert and engage. For those who don't know much about inbound marketing, it's essentially the opposite of outbound marketing. Outbound marketing is about cold calls and trying to get your foot in the door in the hope of making your target like you, while inbound marketing is about creating a warm and friendly environment that brings people into your sales funnel. Simply put, the two are in stark contrast to each other. Inbound marketing is a product of the social world we now find ourselves in. It's about two-way, interactive communications; it's about letting customers find you, not dragging them kick and screaming; it's about providing real value to your customers; and it's about entertaining and educating. Of course, inbound marketing starts with content, and to quote the infographic, "Content is the fuel that drives the inbound effect…content is the conversation starter and problem solver…and it's the only way to develop a strong presence in search engines." To put it another way, if you are not creating content, if you are not distributing content to places that people can find it, and if you're not using that content to engage with your customers and other stakeholders, you're really selling yourself short. OK, so I've turned this back into a post on content marketing. Sorry about that, but if you haven't noticed by now, content marketing is essential for your business, and, in my defence, I did say it would only be a "little different." :-D With that in mind, and without further ado, here is my #Infographic of the Week:
#Infographic of the Week: 8 Tips for Telling Your Company's Story
So my search for infographics continues, and while I'm taking a break from content marketing this week, I am visiting my old friend, storytelling. I love the whole concept of storytelling. Stories are what dreams are made of, and just like I remember sitting glued to the TV when Jackanory came on, you too can win over your audience if you know who they are and what they aspire to achieve. With that in mind, my #Infographic of the Week is all about telling your company's story, and how to get started. The eight points within the infographic offer simple, but effective tips on how you can become a corporate storyteller. By doing such, not only can you achieve your goals, but your stakeholders can also achieve theirs. However, while all the points make sense, it was actually point six that stood out the most for me. I've been with PR Newswire now for nine years and nine months, and in that time PR Newswire has definitely changed. In fact, one of the most important stories we tell here at PR Newswire is about exactly how much we've changed and the reasons why. When I joined we were a newswire service that distributed press releases. There were a few other things, but as an editor, my job was simple. Over the years, this has changed; not because I've been promoted, but because PR Newswire is now so much more than a newswire service. I could talk for hours about these changes and how they've helped us become a bigger and better company, but I can honestly say that these changes have also helped our clients achieve their goals, which is just as much the point of it all. It's been quite a ride, and as I look forward to my 10-year anniversary, I can look back with pride at what stories I have to tell, but I can also look forward with excitement about the stories that are still to be written. So, without further ado, please enjoy my #Infographic of the Week. And…kudos to Ann Handley at Marketing Profs, and Veronica Maria Jarski, for putting this together.
101 Things About China - #8 – Print Media for the Masses
As the world's third largest advertising market, traditional media continue to play the all-important role in a burgeoning Chinese media landscape, and despite considerable growth in online news sources and communities, traditional media remain the most trusted sources of information. As a result, any marketing and communications strategies should look to include this vital set of media (this particular post will focus on print media, but look out for my next post on the TV kingpins). The World's Largest Newspaper Market China has over 4,500 publishers and is the world's largest newspaper market, and while many countries have experienced a decline in the number of newspapers and magazines being printed, China has continued to expand. With over 10,000 magazine titles and 2,000 newspapers currently in print, China is king of the printed word. However, it's now difficult to see new newspapers come to press, unless they are simply replacing an existing newspaper, as the market is becoming more saturated, and greater challenges are starting to be witnessed from online news sources. Of the 12,000 publications in print, 5,000 are considered "party publications;" that is official publications of the government across various levels and regions, including the Central, Provincial, Sub-Provincial and Provincial Capital levels. The distribution of such "party publications" is typically done by either street retailers or compulsory readings for all party and government officials. On the other hand, the other 7,000 publications are commercial, or "market-oriented," and while some are still state-run, they include many more industry-specific and professional publications. Commercial Newspapers Growing in Influence While the state-run newspapers tend to be older and more traditional, the newer commercial newspapers showcase a greater freedom, despite being controlled by the same levels of censorship and despite still being owned by consortiums led by the state-run companies. Almost all revenues are generated by circulation and advertisements, irrelevant of the publications' ownership, and there are currently 23 newspapers in print that have a circulation of over one million readers per day. Of course, when looking to generate exposure, it's important that both types of newspapers are targeted. While the commercial newspapers are enjoying growing readership and reputations for more investigative and sensational journalism, the state-run newspapers still wield influence, especially on more sensitive and political subjects. However, this influence is certainly waning in business circles, as trade publications and online sources now enjoy an increasing authority. Magazines and Newspapers Become Online Players It should go without saying that China's long list of newspapers and magazines are not alien to the internet either. With over 520 million internet users, how can they afford to be? As such, many now have online versions that are directly competing against the more well-known online news portals for readers. Some offer subscription content and a much wider range of content than their printed sisters, as they are not limited by the length of the traditional publication. Newspapers and magazines are also becoming more actively involved in social media and mobile entertainment platforms as they look for new ways to expand their readership. A key point to make about how the online media in China works, however, is that government regulations restrict certain websites from producing their own news. Many online-only sites have, therefore, largely become aggregators of content from other media, especially newspapers and magazines. Usually, the online news sites have to acquire news from known print media sources and that’s one reason why the online versions of these print media have advantages created by their strong content sharing networks, helping to expand the readership of an article. For example, if your news is picked up by a certain media point, and if this media point has a strong network, it will be displayed on many other websites and search engines. This is an essential component of the online news environment in China, and it's why PR professionals prefer to build relationships with those kinds of media or use services that already have those established relationships. You'll also find that social media is not only a great place to share your story and engage with consumers, it's a great place to build relationships with key journalists who cover your beat. Platforms like SINA Weibo are perfect for connecting with journalists remotely, and given the importance of "guanxi" (relationships) here in China, this is also something you should pay attention to. And, the fact that traditional media are major players on these platforms, also really emphasises how vital they are. The way in which Weibo is relied upon is quite extraordinary, as the traditional media are using it as a news source and as a tool for breaking news. Overall… Don't underestimate the importance of print media and the benefits of sharing your story with them. Yes, the online space in China is vast, and there are a number of key online players, but a good PR/communications strategy must include both the traditional and new media. If that's not something you can manage on your own, I strongly suggest using a service that can help you. Online only is not the way to go, and nor is print only. You must integrate your messaging across channels and platforms. If you look at it another way, there may be over 520 million internet users in China, but there are 900 million that are not.
#Infographic of the Week: Content Creation
As my ongoing quest for great infographics continues, it seems I am running into more and more about how to master content marketing. While content marketing has been at the forefront of many minds for the last few years, it's clear that as Google continues to revamp its search algorithms, even more focus is being centred on how to make good, quality content that can be both found and shared. And, if you are one of the small number of marketers that isn't thinking about this…oops! Created by Designbysoap, my #Infographic of the Week looks at the six all important components of successful content marketing: Research, Ideas, Placement, Creation, Publishing and Promotion. In doing so, it offers a simple but inclusive approach to producing the right content, as well as ideas on how to ensure it reaches the right audience, providing both structure to your content and useful tips. So, without further ado, please enjoy my #Infographic of the Week: To learn more about the six components, read the In-depth Guide to Content Creation.
