Slide 1

How to Successfully Market to inbound Chinese Consumers

Agenda

Key differences between Chinese & UK digital landscape.What influences Chinese to buy?Top 5 tips to market your brands to inbound Chinese including leverage Social Media Marketing.Case studiesQ&A

Chinas E-commerce Craze

http://v.youku.com/v_show/id_XNzI4NjkwODU2.html

China is different It is not just one country

Chinas GDP by Province

China is Big Chinese internet users = 10% of world population*

Canada 33mRussia 103mBrazil 117mIndia 375mUSA 280m721mNetizens

UK 60mVS

http://www.internetworldstats.com/stats.htmhttp://www.census.gov/popclock/5

China is different Western social sites are blocked

There is no FacebookThere is no TwitterThere is no YouTube

Chinese are good at copying but now they invented platforms that are better than the western versions.

China is different - Social drives salesEdelman Digital

Weibo users access E-commerce after noticing Relevant info on Weibo Pre-PurchasePost-Purchase66% of Chinese use social media to interact with brands

Social Commerce is 10 years ahead of Western world

China is different They love online shopping!

Source iResearch, 2013 eCommerce market core value analysis

Online transactions reached $301.9 billion USD in 2013. It is expected to surpass $651 billion USD in 2017

China is different They shop on 3rd party sites & go big on 11th of Nov$14.3bn Singles day total sales was bigger than Facebooks revenue in 2015

Growth rate is slowing but adoption and sales higher than ever

What Influences Chinese to buy?

196,000 visits in 2013 (Source: VB)Holidays are key shopping periods

Most sales predicted 27th Sept -7th October and 8-13 Feb 2016

This means you have 3 opportunities to capitalize on visiting Chinese

11

Gifting is Big in China

Purchase ChannelsDuring Overseas TravelOnlineGifts from family or friendsSupermarketsMega supermarkets

On average, a Chinese family receive 12Gifts per yearOver 33% received imported food as gifts from family or friendsHowever, overseas purchase showed the strongest growth

http://www.foodaily.com/market/show.php?itemid=12752

12

Key reasons to buy British GoodsKey trends for imported food in China:

European craftsmanship, biscuits and chocolates are in high demand amongst Chinese. European dairy products are considered a higher quality. Natural, organic products gain huge popularity, Chinese are more concerned about the product origins and ingredients.

Visitors tend to be younger and Shopping is top activity 2/3 book Travel themselves & consult social media before planning travel 42% They spend up to 2,700 per headChinese visitors account for almost a quarter of spending in the UKThey pay with UnionPay/Alipay

Key States of Inbound Chinese

Chinese visitors in 2015269,631Chinese Students in 201589,540

56% of shoppers are young, born after 1980! Luxury brands must placegreater emphasis on younger and exclusivity both in product design and store footprint.Up to 60% of Chinese consumers buy via overseas channels which will stabilized (daigou will decline). Chinese travelling abroad use UnionPay/AlipayLuxury brandsshould strengthen both digital platformbuilding anddigital content creation, with an emphasis on localization

More and more holiday's are now booked online but influenced by offline and online methods! Having an online presence at the point of planning and booking is recommended, or at the very least a social media presence.Our visa system makes it more difficult to travel to the Uk say vs Paris, but we should see more relaxed rules leading to even higher tourist numbersFor the 1/3 that book through agents, having your brand as front of mind is very important as the tour guide will inform a lot of purchasing decision's

In a bid to boost visitor numbers ahead of Chinese new year on 8 February, the UK introduced a new two-year visitor visa for Chinese nationals earlier this month. The new visa will cost 85, the same as the previous six-month visa, and enables holders to make multiple trips to the UK.

89,540 Chinese students enrolled in 2014/2015 UK universities and colleges, so dont forget to target UK based Chinese!

http://institutions.ukcisa.org.uk//info-for-universities-colleges--schools/policy-research--statistics/research--statistics/international-students-in-uk-he/

https://www.theguardian.com/business/2016/jan/27/chinese-tourist-numbers-coming-to-uk-up-nearly-40

14

Top 5 Tips on how To Market Your Brand to Chinese

Brand or competitors video content? Video views?

Are your products being sold by agents, is there any indication of sales volume? Any counterfeits?Brand mentions, brand sentiments, identify any copycats or buying agents who sell your products, competitive analysisbrand search volume, sentiments, basic user profile and search trends, competitive analysis

1. Do Your Market AssessmentFree channels to gain insights

2. Build Presence on Social

Lenovo 11.65%Samsung 14.38%Apple 11.48%Huawei 10.18%

+

Essential for building credibilityInteractionVerified weibo platform- 198 m active monthly usersLatest weibo and we chat figures- 180m outside china, total 650 million, increase 34% since 201417

Develop your content so that it resonates well with your target audience

3. Create Compelling Content Strategy Utilize video, infographic and gif format of content for sharing

Brand Heritage: Authentic British, Royal family connection and Craftsmanship

Leverage Celebrities content

Run Regular Social Activation Campaign

4. Think Mobile First

79Percent69Percent38Percent78Percentof Chinese Internetusers access the interneton Mobile, Compared to70% on PC.of Chinese hadpurchased a productvia their smartphone, compared to 46% of the US.of globalsmartphoneshipments are to China.of Chinese smartphone usersincreased purchase intention with mobile ad.Source: CNNIC (2012 2013) ; We are social (2013)

Smartphone ownership is near-universal. 98% of Chinese consumersown a smartphone. Laptops are the second-most commonly owned device (82%).25% Chinese research products to buy on their mobiles27% Chinese purchase products on their mobilesChinaHas 160 Million ActiveAndroid Users, 85 Million oniOS GlobalWebindex q4 2014Techasia

Apple only accounts 11.48% handset market share

557m mobile internet users

19

5. Use a QR codeQR code is a daily essential in ChinaTo Chinese, using a phone to scan a code, comes more naturally than typing a web address.

The # of QR Code Scanned by Chinese Mobile users in Mar, 2014 has 18 times the # in Mar, 2013

Code GeneratedCode ScannedMillion

Despite their poor standing in the minds of many western marketers, the QR code is a daily essential for brands in China, and the distinctive black and white images can be found on billboards and products all over the country. This is partly thanks toWeChats adoption using a QR code and a WeChat wallet, consumers can buy goods from physical stores in China instead of using cash or a credit card. This year, Alibaba launcheddotless visual codesfor brands to place on product packaging so that consumers can use their phone to check a products authenticity and get information, discounts and recommendations based on their preferences. Just because something is out of fashion in the west, dont assume the same is true for China.

http://wearesocial.com/uk/thought-leadership/marketing-china-fivestep-guide

O2O Strategy Using QR CodesBrands are using QR codes to drive online to offline (O2O) sales, especially in retail.

WeChat makes it super easy

Virtual Shopping on the go

Event InvitationEngagement CampaignBrand WeChat Subscription

Every brand should know about WeChat

Case Studies

Case Study - Golden Week CampaignPromotion Period: 27th September - 10th October, 2015

Objectives:To drive footfall and offline sales to The Cambridge Satchel Company UK stores during promotional periodHost an in-store event on 1st Oct to generate campaign buzz and customer engagement with the brand

Target Audience: Chinese Students and ChineseProfessionals in UK

Tactics: Social campaign, KOLs and Event

Results:Total Sale Revenue: over 60,000 , 80% in-storeTotal Unit of Sales: 36% above target

Be creative

Dont be afraid to use celebrity connections/ endorsement

Can you believe that such a premium / weird supermarket is existing in the world?!

Waitrose uses social media to announce e-Commerce launch

Utilize social to introduce the brand (in a humorous way) with celebriti (royal family) content, promoted with UK based KOL to intrigue users to visit their Tmall store.

Brands should strengthen both digital platform building (e.g., Weibo WeChat, apps) and digital content creation, with an emphasis on localization to reflect local market preferences.

25

Q&A