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Luring Chinese consumers needs direct engagement
By Diane Long |
April 15, 2013, Monday
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Print Edition
Print Edition
CHINESE businessmen will be the largest group of business travelers in the world by 2015. They will spend time on those things to have "been there" as well as really appreciate great meals at good restaurants. There is overlap.
California wine is a particularly iconic product from the State. I was curious as to why California wine has had a challenging entry into the Chinese market. While price does play into the equation, its not as simple as how much the wine costs. It is also about the value for the price that the product is on the market. The French wine industry has done an excellent job over 20 years to build their image and link it with the luxury brands of France. They are not selling wine; they are selling France in a bottle. We realized that there has been little to no support of a California brand in China.
The trade associations representing the various businesses have decided to focus their market dollars on distributors, travel agents and importers. Is this really the best use of marketing dollars? The Chinese consumers are incredibly savvy shoppers. They do not rely on only one source of information for any purchasing decision. They have for centuries used word of mouth as their network. Social media platforms like Weibo and internet search engines, and now, WeChat, allow them to continue that tradition in a modern, and much broader way. They would never buy a particular brand just because they saw an advertisement or read a public relation article in a magazine. They will also go to websites, actively check with friends and listen to what other potential buyers are saying. This approach is the same for a vacation destination decision or what foods to feed their families.
Of course marketing support for distributors or agents is critical as that is the sales channel. But they have their own agendas. By speaking directly to the consumer one can engage them in the decision making process about their choices. Enable them to ask for products and services they aspire to.
The entire State of California must work together to make California an attractive destination - whether for investment, tourism or source of innovative and creative products. The focus should be on how to raise awareness of "Brand California" to ensure it is top of mind when a consumer is making spending decisions. The State of California reopened the trade office in Shanghai last week. That is great as government endorsement and leadership is necessary in this market.
Xanadu Enterprise Shanghai Ltd is a business consultancy bridging China and the US.
California wine is a particularly iconic product from the State. I was curious as to why California wine has had a challenging entry into the Chinese market. While price does play into the equation, its not as simple as how much the wine costs. It is also about the value for the price that the product is on the market. The French wine industry has done an excellent job over 20 years to build their image and link it with the luxury brands of France. They are not selling wine; they are selling France in a bottle. We realized that there has been little to no support of a California brand in China.
The trade associations representing the various businesses have decided to focus their market dollars on distributors, travel agents and importers. Is this really the best use of marketing dollars? The Chinese consumers are incredibly savvy shoppers. They do not rely on only one source of information for any purchasing decision. They have for centuries used word of mouth as their network. Social media platforms like Weibo and internet search engines, and now, WeChat, allow them to continue that tradition in a modern, and much broader way. They would never buy a particular brand just because they saw an advertisement or read a public relation article in a magazine. They will also go to websites, actively check with friends and listen to what other potential buyers are saying. This approach is the same for a vacation destination decision or what foods to feed their families.
Of course marketing support for distributors or agents is critical as that is the sales channel. But they have their own agendas. By speaking directly to the consumer one can engage them in the decision making process about their choices. Enable them to ask for products and services they aspire to.
The entire State of California must work together to make California an attractive destination - whether for investment, tourism or source of innovative and creative products. The focus should be on how to raise awareness of "Brand California" to ensure it is top of mind when a consumer is making spending decisions. The State of California reopened the trade office in Shanghai last week. That is great as government endorsement and leadership is necessary in this market.
Xanadu Enterprise Shanghai Ltd is a business consultancy bridging China and the US.
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