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Youth want to stand out - and fit in
September 3, 2011, Saturday
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WHATEVER the size of the city, China's youth are setting themselves apart from other global consumers in several ways that are heavily influencing marketing decisions.
For example, there are currently 195 million micro-blogging users in the country - or 40 percent of China's total online population of 485 million, according to the China Internet Network Information Center.
Then there's their adoration for mobile technology. In China, 73 million mobile owners are between the ages of 13 and 17 - that's 20 percent of all teen mobile owners worldwide and three times more than the US mobile teen market, reports mobileYouth, a London-based youth research firm.
"With the importance of mobile phones in China and the fact that they are always on hand, China youth take the time to select the best phone and the best brands carefully, using the phone as their 'social currency'," says Angie Chan, senior research manager at Starcom China, a division of Paris-based advertising and communications firm Publicis Groupe. "They also use it as a fashion accessory, switching phone brands or models often and decorating their phone with gems, 'bling,' accessories and photos."
While that, of course, is a boon for the balance sheets of mobile phone makers, it also has big implications for all kinds of companies and their digital marketing strategies.
But the changes in how marketers are reaching China's youth go beyond gadgets and technology, mobile or otherwise, says Jay Mark Caplan, research manager and head of creative production at China Youthology, a Beijing-based consultancy.
A big difference between China and other markets is that in China, there are few resources for youth to develop interests or hobbies, he says, so brands can play a role in filling that gap. This is where "tribal marketing" comes in. Though not a new concept in global marketing circles, companies in China are just beginning to figure out how to make the most of tribal marketing by joining forces online and offline with communities of young people.
United by a shared lifestyle interest or hobby, such as photography, traveling or skateboarding, these communities are one route for companies to introduce new products and services while getting closer to target customers in ways that go beyond what they sell.
For companies, the big challenge, however, is identifying which tribes to partner with. John Solomon, founder and managing director of Enovate, a Shanghai-based research consultancy focusing on China's youth market, describes a need among China's youth for "individuality within a safety zone of numbers," balancing wanting to both stand out and fit in.
Lonely children
That need is influenced in part by growing up as only children. "There's some loneliness there, and a lot of pressure on that one child," he says. "A lot of people go online because they're looking for people to talk to or relate to, to share ideas with."
That sharing can happen in a number of formats. According to a survey of Chinese youth by Pearl Research, chatting was cited as top reason to go online, following by gaming.
China's youth are drawn to communities to help them express themselves. Those communities can be either online or offline, virtual or physical.
McDonald's, for example, launched a campaign across China in 2009 called "Let's Meet Up," which encouraged online groups to plan activities and meet at their local McDonald's.
Young people took photos together that they posted online, generating a buzz beyond the event.
"That was a great campaign because it bridged the online and offline world," says Solomon. "Viral videos come and go, but having a great experience with a brand is much more powerful... It's got a lot more emotional benefits, and those emotions end up being associated with your brand."
For sure, getting all that right is a tall order for marketers, says Caplan, requiring a deeper knowledge of both their company and their customers than many bargain for.
This is the final of a two-part article adapted from China Knowledge@Wharton, http://www.knowledgeatwharton.com.cn. The first part was published on Wednesday. To read the original, please visit: http://bit.ly/pY1heY.
For example, there are currently 195 million micro-blogging users in the country - or 40 percent of China's total online population of 485 million, according to the China Internet Network Information Center.
Then there's their adoration for mobile technology. In China, 73 million mobile owners are between the ages of 13 and 17 - that's 20 percent of all teen mobile owners worldwide and three times more than the US mobile teen market, reports mobileYouth, a London-based youth research firm.
"With the importance of mobile phones in China and the fact that they are always on hand, China youth take the time to select the best phone and the best brands carefully, using the phone as their 'social currency'," says Angie Chan, senior research manager at Starcom China, a division of Paris-based advertising and communications firm Publicis Groupe. "They also use it as a fashion accessory, switching phone brands or models often and decorating their phone with gems, 'bling,' accessories and photos."
While that, of course, is a boon for the balance sheets of mobile phone makers, it also has big implications for all kinds of companies and their digital marketing strategies.
But the changes in how marketers are reaching China's youth go beyond gadgets and technology, mobile or otherwise, says Jay Mark Caplan, research manager and head of creative production at China Youthology, a Beijing-based consultancy.
A big difference between China and other markets is that in China, there are few resources for youth to develop interests or hobbies, he says, so brands can play a role in filling that gap. This is where "tribal marketing" comes in. Though not a new concept in global marketing circles, companies in China are just beginning to figure out how to make the most of tribal marketing by joining forces online and offline with communities of young people.
United by a shared lifestyle interest or hobby, such as photography, traveling or skateboarding, these communities are one route for companies to introduce new products and services while getting closer to target customers in ways that go beyond what they sell.
For companies, the big challenge, however, is identifying which tribes to partner with. John Solomon, founder and managing director of Enovate, a Shanghai-based research consultancy focusing on China's youth market, describes a need among China's youth for "individuality within a safety zone of numbers," balancing wanting to both stand out and fit in.
Lonely children
That need is influenced in part by growing up as only children. "There's some loneliness there, and a lot of pressure on that one child," he says. "A lot of people go online because they're looking for people to talk to or relate to, to share ideas with."
That sharing can happen in a number of formats. According to a survey of Chinese youth by Pearl Research, chatting was cited as top reason to go online, following by gaming.
China's youth are drawn to communities to help them express themselves. Those communities can be either online or offline, virtual or physical.
McDonald's, for example, launched a campaign across China in 2009 called "Let's Meet Up," which encouraged online groups to plan activities and meet at their local McDonald's.
Young people took photos together that they posted online, generating a buzz beyond the event.
"That was a great campaign because it bridged the online and offline world," says Solomon. "Viral videos come and go, but having a great experience with a brand is much more powerful... It's got a lot more emotional benefits, and those emotions end up being associated with your brand."
For sure, getting all that right is a tall order for marketers, says Caplan, requiring a deeper knowledge of both their company and their customers than many bargain for.
This is the final of a two-part article adapted from China Knowledge@Wharton, http://www.knowledgeatwharton.com.cn. The first part was published on Wednesday. To read the original, please visit: http://bit.ly/pY1heY.
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