A holiday to sweep the tombs
Chinese traditionally bury the dead. However, after the enlightened communists took reign of the country, they very rationally declared that the priority for the land is for the living and not the dead. Chinese were told to cremate the dead, burials were banned as was the erection of tombs. Given this, it seemed surprising when earlier this month, the Chinese government declared Tomb-sweeping day to be a new holiday in China. Along with the Tomb-sweeping day, holidays were also declared for two other traditional festivals of Dragon Boat festival and Mid-Autumn festival. Are the Chinese re-discovering their traditions? After years of efforts to obliterate the traditional shackles, is the Chinese government now encouraging the people to celebrate their traditions? What makes it even more surprising is the fact that these holidays will replace the three day holiday observed for the May Day celebration – an occasion of symbolic importance to socialism, whose ideals the Chinese government still claims to espouse.
The three day May Day holiday was, in fact, used to be extended into a “golden week” by adding the intervening days to the weekend (the additional holidays compensated for by working on the preceding or following weekend). Before this declaration, China observed three “golden weeks” in a year – three week long holidays for the Chinese New Year, the National Day in October and the May Day celebration. This has been the policy since 1999, when the Chinese government decided that the citizens must get an opportunity to spend their new wealth and in the process further boost the economy. Now China retains two of these golden weeks, but has substituted the third with three one-day holidays for traditional festivals.
Rediscovering the traditions
The Chinese government, as one would expect, is governed more by practical logic than tradition or sentiment. The real reason for this change perhaps lies in the fact that the three golden weeks had started to create a mayhem by the en masse movement of millions of Chinese . The populace takes the opportunity to get out of their homes, visit their families or go for vacations. This causes an immense strain on transportation (most painfully witnessed during the Chinese new year, when thousands were stranded because of snow cased disruption) and other services, and people started complaining about the exorbitant prices, traffic snarls and poor service during these weeks. Additionally, for a country so dependent on foreign trade, it is perplexing as well as vexing for its international trade partners when they see the frenetic trade coming to an abrupt halt as often as three times a year.
However, apart from the rational, there are also emotional factors guiding the change. The Chinese, with their new found wealth and prosperity, now have a reason for celebration and pride. Embracing the old traditions, and practising the associated rituals with openness and confidence is a part of that resurgence of national pride. Chinese today not only want acknowledgment for their economic success, but they also wish to be applauded for their history and traditions. Chinese have set up Confucius Institutes in 50 countries, sent their terracotta warriors for display in the British Museum - all in an attempt to demonstrate that not only is this a country of extraordinary manufacturing prowess and technology, but also has a cultural richness which deserves noticing and appreciation.
Embracing the West
Not only does China seem to be rediscovering its own traditions, it seems to be embracing the ones from the West with equal gusto and enthusiasm. Christmas celebrations begin early and cut-out figures of Santa Claus started appearing in shop windows of departmental stores from the middle of November. The silver bells, figures of reindeers, elves and snowmen jostle each other in almost a chaotic, almost desperate representation of the Christmas spirit. In a rousing finale, large pictorial displays of Christmas scenes appear in office buildings and a Christmas tree with twinkling lights, encircled with gold paper covered pots of poinsettia embellish the entrance of every office or hotel.
For a country of atheists, this celebration of a Christian festival with such enthusiasm is perhaps baffling. However, Christmas in China is not about religion, but a modern paean to consumption and fun. Masses of people throng the streets, visit bars and haunt the stores for discounted products. Chinese celebration of Christmas, is a typical example of how China embraces the West to its own advantage and adapts it to selectively pick its best from their own point of view. So no Christmas cake or plum pudding – we prefer our dumplings (according to a TNS survey, Chinese consider no food in the world to be anywhere near their own) and no midnight mass – religion has no part to play here. But shopping, gifting, drinking and merry making is embraced with zest and passion.
The marketing challenge of understanding the Chinese consumer
Neither burdened with strong traditions and rituals, nor under the blind sway of the West, Chinese are behaving in an eclectic way in deciding what to embrace and what to discard. Their decisions are based on practical logic, commerce and now also a sense of national pride. For marketers it is essential to understand how the Chinese weigh several, often contradictory, arguments and pulls to make the decision. This is as true for which festivals to celebrate as it is for which products and brands to adopt. Only keeping a hand permanently on the Chinese consumers’ complex pulse can guide the marketers in the right direction.
Thursday, March 20, 2008
Wednesday, March 19, 2008
The China Opportunity
The Unknown India
What do the Chinese think about India? Well, they don’t. 398 urban Chinese were asked to associate 24 attributes with 14 nations, including the US, Japan, Korea and India. 58% of the people associated no attribute whatsoever with India. By no stretch of imagination is India a salient nation in the mind of today’s Chinese. Among the younger generation, at best, it brings up image of excellence in software. Some envy the facility of Indians with the English language and wonder whether English is the mother tongue of many Indians. The older generation, particularly the taxi drivers, spontaneously start humming “awala hoon” on the discovery that their fare hails form India, bringing memories of a time when Raj Kapoor’s Awara was perhaps one of the five films that the Chinese government allowed its citizens to watch in a year.
A missed opportunity
The obscure status of India in the Chinese minds is a missed opportunity for India. There is much that India could achieve by raising their profile among the contemporary Chinese, as they gaze at the external world with awe and bewilderment and whose view of the world is yet to fully crystallize. It is the appropriate time to invest in creating a clear image and a distinctive identity for India, and by doing so, benefit from the momentum of the fastest growing economy in the world. While there are many areas of opportunity, the following do stare prominently as the ones that India is particularly well suited to exploit.
Tourism
34.5 million Chinese visited a place outside China in 2006 – not even a small fraction of these visited India. To the Chinese today, the most attractive tourist destinations are the European countries such as France, Italy and the UK as also Australia.
How can India start to attract the Chinese tourists? There is a seed of a perception which could be exploited - according to a survey of Chinese attitudes towards different countries, while as a country with rich culture and traditions, the Chinese are proud of their own place – India and UK are at the second place. This perception of culture and tradition could be built upon to attract the Chinese tourists. While the Chinese material needs are being satisfied, little sustenance is available for their spiritual needs. Yoga is already a bond (albeit still a weak one today) which attracts the Chinese to India, as thousands of Chinese have taken to yoga it all its forms and exotic variants. These elements of Indian tradition and culture could be effectively marketed to attract a fair share of the Chinese tourists.
Software
In the field of computer hardware and software, US is the clear leader in the Chinese minds – but India is rated next – though a distant next. However, a foundation already exists for India to exploit this image with a mild recognition that the Chinese give to Indian software expertise. Perhaps this is one area that the Indian software companies are already acknowledging and have taken steps to exploit. Infosys, TCS and Satyam have set up development centres in China and are gearing up to carve a share in the huge domestic Chinese software market. Chinese service industry is still in a primitive state in China and to grow and enhance its quality, software is perhaps one of the more important tools that it needs. Indian companies are in a good position to carve out a niche for themselves in this market – provided they build further on the existing image, make their presence felt in China and invest in learning about the needs of the Chinese industry.
Managerial expertise
While the economic growth of China is clearly because of policies of the Chinese government, the Indian acceleration is perhaps in spite of the Indian government. The Indian growth is clearly attributable to the private sector and their ability to efficiently exploit both the domestic opportunities and the export potential of Indian services. On the other hand, the big corporations of China are still largely state owned behemoths. The growth in the size and profitability of Chinese companies and the huge Chinese banks, is not because of their skills and innovation, but because of their monolithic position coupled with increasing money in the hands of the Chinese consumers. Few Chinese have heard of the Tata’s and their purchase of global companies and brands or the Ambani’s who seem to be expanding their skills to touch every area of Indian life. A knowledge in China of the proficiency of Indian private enterprise and the skills and expertise of the Indian manager, will create a huge opportunity for Indian talent and businesses.
Entertainment
Karishma (translated into Chinese as Qi Ji or miracle) has been on the air on several Chinese television channels. A few other Indian serials have also hit the Chinese television. The most popular Asian cultural imports in China are, however, Korean. Korean films, television drama and music are a rage in China (as they are in many other Asian countries). Korean films and drama, offer plots of family intrigue and romance, that are quintessentially Indian, indicative of the fact that Indian storylines and plots are likely to appeal to the Chinese audience. In fact Indian entertainment industry, given their experience and expertise could even develop special programmes for the Chinese audience. India is in a better position to do this than any other country - both in terms of the technical prowess and creativity, as well as their ability to understand what will move their Asian neighbours.
Education
While India has always prided itself on its education institutions, the irony is that Indian students are coming to China for higher education in medicine and there is practically no reverse flow. Indian Institute of Science at Hyderabad gets more MBA applications from Asia than any other management school other than Harvard. Indian Institutes of Management and Indian Institutes of Technology are often rated as among the best in their class globally – a fact that India could gain tremendously by advertising to the Chinese. Chinese are travelling all over the world in quest of higher education, often enrolling themselves at poor quality institutions in obscure locations. While it is true that India is hardly able to meet the demand of its own citizens for high quality higher education, attracting international students is sorely required to raise the profile of Indian education. India needs to actively market its education institutions in China. While success may be limited in the short run, the long term potential is extremely attractive.
Need to create the Indian image and identity
Chinese do not have a high opinion of Indian products. For quality products they look up to Germany, the US and Scandinavian countries. When it comes to perfumes and luxury products, they think of France and for consumer electronics Japan and Korea dominate their thinking. However, India has a foundation of an opinion which could serve as a basis for creating a unique image and identity for India and what it can offer to China. India stands to gain immensely from embarking upon this effort – or in omitting to do so faces an enormous opportunity cost of further growth and international prominence.
What do the Chinese think about India? Well, they don’t. 398 urban Chinese were asked to associate 24 attributes with 14 nations, including the US, Japan, Korea and India. 58% of the people associated no attribute whatsoever with India. By no stretch of imagination is India a salient nation in the mind of today’s Chinese. Among the younger generation, at best, it brings up image of excellence in software. Some envy the facility of Indians with the English language and wonder whether English is the mother tongue of many Indians. The older generation, particularly the taxi drivers, spontaneously start humming “awala hoon” on the discovery that their fare hails form India, bringing memories of a time when Raj Kapoor’s Awara was perhaps one of the five films that the Chinese government allowed its citizens to watch in a year.
A missed opportunity
The obscure status of India in the Chinese minds is a missed opportunity for India. There is much that India could achieve by raising their profile among the contemporary Chinese, as they gaze at the external world with awe and bewilderment and whose view of the world is yet to fully crystallize. It is the appropriate time to invest in creating a clear image and a distinctive identity for India, and by doing so, benefit from the momentum of the fastest growing economy in the world. While there are many areas of opportunity, the following do stare prominently as the ones that India is particularly well suited to exploit.
Tourism
34.5 million Chinese visited a place outside China in 2006 – not even a small fraction of these visited India. To the Chinese today, the most attractive tourist destinations are the European countries such as France, Italy and the UK as also Australia.
How can India start to attract the Chinese tourists? There is a seed of a perception which could be exploited - according to a survey of Chinese attitudes towards different countries, while as a country with rich culture and traditions, the Chinese are proud of their own place – India and UK are at the second place. This perception of culture and tradition could be built upon to attract the Chinese tourists. While the Chinese material needs are being satisfied, little sustenance is available for their spiritual needs. Yoga is already a bond (albeit still a weak one today) which attracts the Chinese to India, as thousands of Chinese have taken to yoga it all its forms and exotic variants. These elements of Indian tradition and culture could be effectively marketed to attract a fair share of the Chinese tourists.
Software
In the field of computer hardware and software, US is the clear leader in the Chinese minds – but India is rated next – though a distant next. However, a foundation already exists for India to exploit this image with a mild recognition that the Chinese give to Indian software expertise. Perhaps this is one area that the Indian software companies are already acknowledging and have taken steps to exploit. Infosys, TCS and Satyam have set up development centres in China and are gearing up to carve a share in the huge domestic Chinese software market. Chinese service industry is still in a primitive state in China and to grow and enhance its quality, software is perhaps one of the more important tools that it needs. Indian companies are in a good position to carve out a niche for themselves in this market – provided they build further on the existing image, make their presence felt in China and invest in learning about the needs of the Chinese industry.
Managerial expertise
While the economic growth of China is clearly because of policies of the Chinese government, the Indian acceleration is perhaps in spite of the Indian government. The Indian growth is clearly attributable to the private sector and their ability to efficiently exploit both the domestic opportunities and the export potential of Indian services. On the other hand, the big corporations of China are still largely state owned behemoths. The growth in the size and profitability of Chinese companies and the huge Chinese banks, is not because of their skills and innovation, but because of their monolithic position coupled with increasing money in the hands of the Chinese consumers. Few Chinese have heard of the Tata’s and their purchase of global companies and brands or the Ambani’s who seem to be expanding their skills to touch every area of Indian life. A knowledge in China of the proficiency of Indian private enterprise and the skills and expertise of the Indian manager, will create a huge opportunity for Indian talent and businesses.
Entertainment
Karishma (translated into Chinese as Qi Ji or miracle) has been on the air on several Chinese television channels. A few other Indian serials have also hit the Chinese television. The most popular Asian cultural imports in China are, however, Korean. Korean films, television drama and music are a rage in China (as they are in many other Asian countries). Korean films and drama, offer plots of family intrigue and romance, that are quintessentially Indian, indicative of the fact that Indian storylines and plots are likely to appeal to the Chinese audience. In fact Indian entertainment industry, given their experience and expertise could even develop special programmes for the Chinese audience. India is in a better position to do this than any other country - both in terms of the technical prowess and creativity, as well as their ability to understand what will move their Asian neighbours.
Education
While India has always prided itself on its education institutions, the irony is that Indian students are coming to China for higher education in medicine and there is practically no reverse flow. Indian Institute of Science at Hyderabad gets more MBA applications from Asia than any other management school other than Harvard. Indian Institutes of Management and Indian Institutes of Technology are often rated as among the best in their class globally – a fact that India could gain tremendously by advertising to the Chinese. Chinese are travelling all over the world in quest of higher education, often enrolling themselves at poor quality institutions in obscure locations. While it is true that India is hardly able to meet the demand of its own citizens for high quality higher education, attracting international students is sorely required to raise the profile of Indian education. India needs to actively market its education institutions in China. While success may be limited in the short run, the long term potential is extremely attractive.
Need to create the Indian image and identity
Chinese do not have a high opinion of Indian products. For quality products they look up to Germany, the US and Scandinavian countries. When it comes to perfumes and luxury products, they think of France and for consumer electronics Japan and Korea dominate their thinking. However, India has a foundation of an opinion which could serve as a basis for creating a unique image and identity for India and what it can offer to China. India stands to gain immensely from embarking upon this effort – or in omitting to do so faces an enormous opportunity cost of further growth and international prominence.
Tuesday, March 11, 2008
A Porcine Issue
China Daily, the leading English language daily newspaper in China, reported some time ago that a hog weighing more than 1,040 kg was crowned the “king of pigs” in Ningxiang County, Hunan province over the weekend. To the best of my recollection, PG Wodehouse, while describing the adventures of the Empress of Blandings, never really mentioned her precise weight, but it would perhaps be a fair assumption that Lord Emsworth would have been proud of this achievement, if his own sow had reached such heights (or weights, to be more precise).
The story on the fattest pig is not the only porcine story in the Chinese papers. In fact, pig and pork have been extremely salient in china for some time. China’s consumer price index (CPI) jumped 4.7% in 2007, with the price of food showing particularly ballistic tendencies. Specifically pork prices almost doubled last year due to short supply and mounting feedstuff costs. Apart from rising prices for grain used as feed, blue ear disease - also known as porcine reproductive and respiratory syndrome - killed a large number of pigs nationwide last year. As a result, the Chinese farmers, despite their love for pigs and their meat, were less enthusiastic in rearing them than in the past. The central and local governments plan to launch a concerted effort to rekindle their enthusiasm for raising pigs and boosting pork supplies. China is on a comfortable and steady growth path and maintaining stability – whether it is in currency valuation, consumer incomes, political climate or pork prices – is of the essence.
The year of the golden pig
Ironically the scarcity of pigs came in the year of the pig (there was no shortage of chicken in the year of the rooster in 2005, and no shortage of dragons is expected in the year of the dragon in 2012) – though rat population hopefully would be contained in the year of the rat which started this February. In Chinese tradition, each year is cyclically assigned one of the 12 animals, each of whom are believed to bestow some specific benedictions and character idiosyncrasies on the humans born in that specific twelve month period. The year of the pig is one of the more cherished ones and thought to bring luck, prosperity and ampleness (like itself). A person born this year is likely to be intelligent, honest, courageous, gallant, and sincere. They are good implementers can be relied on to see things through. They also tend to be popular and make lasting friendship and are good neighbors.
The years also rotate through five elements of metal, wood, water, fire and earth – and when pig and metal (gold really) coincide (as it was believed to have happened this year) the floodgates of fortune are expected to open like never seen before (or only seen 60 years ago, as that is when it would have occurred before).
It was under this expectation, that the youth of China timed their sexual activity to ensure the arrival of their off-springs in this auspicious period. It is reported that this year saw the birth of a lot more babies than the previous years. Of course, none thought about the pressure it will bring to the lives of the Chinese obstetricians, who were getting used to an easy life, thanks to China’s one child policy. Similarly, the supply of maternal beds and other wherewithals related to child birth are also reported to be strained. On the happier side, figures indicate that the companies manufacturing diapers, baby foods and other goods of “little” interest upped their advertising and reaped generous rewards.
The marketing opportunity
Marketing companies often struggle with the extent to which they need to balance their global strategies with the subtleties of local culture and traditions. The fervent communist era in China and the cultural revolution did its best to liberate the Chinese from the shackles of their traditions and beliefs. However, the interest in Chinese Zodiac, the strong beliefs about lucky and unlucky numbers (most Chinese buildings do not number the 4th floor, as number 4, because of the similarity of its Chinese pronunciation with death, is believed to bring misfortune) and the increasing enthusiasm with which Chinese traditional festivals are celebrated, seems to suggest that companies will be well advised to take cognizance of the traditions, and develop their marketing campaigns to take advantage of the consumer interest in these. The more marketing savvy companies in China are already launching special communication and marketing campaigns around traditional festivals. The festival related marketing activities are likely to receive a further boost from the recent government decision to declare three additional holidays for the Chinese festivals of Tomb-sweeping day, Dragon Boat festival and Mid-autumn festival.
The fattest pig in China
While marketing companies deliberate on appropriate strategies to win the hearts of the Chinese consumers, it is reported that the owner Xiao Shahong of the Chinese “king of pigs” apparently declined an offer to part with her precious animal, at a record of more than 50,000 yuan ($6,730). It is befitting that the prized pig is preserved, loved and cherished while the Chinese just finished celebrating the last few months of the year symbolized by it.
The story on the fattest pig is not the only porcine story in the Chinese papers. In fact, pig and pork have been extremely salient in china for some time. China’s consumer price index (CPI) jumped 4.7% in 2007, with the price of food showing particularly ballistic tendencies. Specifically pork prices almost doubled last year due to short supply and mounting feedstuff costs. Apart from rising prices for grain used as feed, blue ear disease - also known as porcine reproductive and respiratory syndrome - killed a large number of pigs nationwide last year. As a result, the Chinese farmers, despite their love for pigs and their meat, were less enthusiastic in rearing them than in the past. The central and local governments plan to launch a concerted effort to rekindle their enthusiasm for raising pigs and boosting pork supplies. China is on a comfortable and steady growth path and maintaining stability – whether it is in currency valuation, consumer incomes, political climate or pork prices – is of the essence.
The year of the golden pig
Ironically the scarcity of pigs came in the year of the pig (there was no shortage of chicken in the year of the rooster in 2005, and no shortage of dragons is expected in the year of the dragon in 2012) – though rat population hopefully would be contained in the year of the rat which started this February. In Chinese tradition, each year is cyclically assigned one of the 12 animals, each of whom are believed to bestow some specific benedictions and character idiosyncrasies on the humans born in that specific twelve month period. The year of the pig is one of the more cherished ones and thought to bring luck, prosperity and ampleness (like itself). A person born this year is likely to be intelligent, honest, courageous, gallant, and sincere. They are good implementers can be relied on to see things through. They also tend to be popular and make lasting friendship and are good neighbors.
The years also rotate through five elements of metal, wood, water, fire and earth – and when pig and metal (gold really) coincide (as it was believed to have happened this year) the floodgates of fortune are expected to open like never seen before (or only seen 60 years ago, as that is when it would have occurred before).
It was under this expectation, that the youth of China timed their sexual activity to ensure the arrival of their off-springs in this auspicious period. It is reported that this year saw the birth of a lot more babies than the previous years. Of course, none thought about the pressure it will bring to the lives of the Chinese obstetricians, who were getting used to an easy life, thanks to China’s one child policy. Similarly, the supply of maternal beds and other wherewithals related to child birth are also reported to be strained. On the happier side, figures indicate that the companies manufacturing diapers, baby foods and other goods of “little” interest upped their advertising and reaped generous rewards.
The marketing opportunity
Marketing companies often struggle with the extent to which they need to balance their global strategies with the subtleties of local culture and traditions. The fervent communist era in China and the cultural revolution did its best to liberate the Chinese from the shackles of their traditions and beliefs. However, the interest in Chinese Zodiac, the strong beliefs about lucky and unlucky numbers (most Chinese buildings do not number the 4th floor, as number 4, because of the similarity of its Chinese pronunciation with death, is believed to bring misfortune) and the increasing enthusiasm with which Chinese traditional festivals are celebrated, seems to suggest that companies will be well advised to take cognizance of the traditions, and develop their marketing campaigns to take advantage of the consumer interest in these. The more marketing savvy companies in China are already launching special communication and marketing campaigns around traditional festivals. The festival related marketing activities are likely to receive a further boost from the recent government decision to declare three additional holidays for the Chinese festivals of Tomb-sweeping day, Dragon Boat festival and Mid-autumn festival.
The fattest pig in China
While marketing companies deliberate on appropriate strategies to win the hearts of the Chinese consumers, it is reported that the owner Xiao Shahong of the Chinese “king of pigs” apparently declined an offer to part with her precious animal, at a record of more than 50,000 yuan ($6,730). It is befitting that the prized pig is preserved, loved and cherished while the Chinese just finished celebrating the last few months of the year symbolized by it.
Thursday, February 28, 2008
New slogans for the new times
The 17th National Congress of the Communist Party of China took place in Beijing late last year, with over 2000 delegates attending from all over the country. In his two and a half hour address to the delegates, President Hu Jintao described several important achievements as well as several significant challenges facing China today. The speech clearly exhibits the pride that China feels in its achievements as well the candid concern for the current issues and problems. However, it was interesting to see that while China has made immense strides in many spheres, the tradition of the rhetoric and the use of slogans is firmly in place. Of course, the old slogans have been replaced by the new. The current rage propounded by President Hu Jintao is “harmonious society”. Some time ago when the government abolished the agricultural tax, the move was accompanied by a slogan of “new countryside”. Also talked about for quite some time is China’s ambition to achieve a “moderately prosperous society” (xiao kang). President Hu added a few more in this congress – scientific outlook on development (implying balanced and sustainable development) and socialism with Chinese characteristics (implying that China is different and outsiders should stop telling it what it should do!).
Slogans or biayo yu as they are called in Chinese, have been integral to life in China since the communists took over in 1949. In fact during the earlier days of communism, the country was practically wired up through public address systems which incessant broadcast of slogans, exhortations, party doctrine and even threats. Prominent slogans from that time are – down with imperialist running dogs, suppress counter revolutionaries, serve the people. From time to time new slogans made their way and the one which really changed the country and paved the way for rapid economic strides was the one proclaimed by Deng Xiao Ping when he said “to get rich is glorious” (or words to that effect).
With the opening up of China to the rest of the world in 1978, the scale and shrillness of slogans substantially decreased. Over a period of time political slogans have been replaced by commercial advertising and messages of indoctrination gave way to messages of inducement of unspeakable joys of consumption or unthinkable relief on usage of various products. Coming from the tradition of sloganeering, it was not surprising that the initial advertising often resembled the tone and form of traditional slogans. Even now a large proportion of advertising seen on the Chinese television comprises models holding the brand to the camera and ecstatically recounting its virtues.
It was thought that the Chinese consumer is a simple soul and can not understand the subtlety of soft advertising which attempts to endear the brand through use of emotions or clever creative devices. Direct communication of the benefits in unambiguous terms was considered the safe route of communication. As a result while advertising in many other markets is as much entertainment as brand communication and attempts to engage the consumer through subtle creative devices, in China it is often a direct onslaught with the core benefit – often repeated several times within the same advertisement.
However, research done in China shows that this direct route does not have to be the one that an advertiser needs to embrace to succeed. Emotional advertising works and so does humour, endorsement or any of the other genres of advertising practiced elsewhere. The success of advertising in China, as elsewhere, depends on the ability of the advertisement to address the key consumer concerns, to overcome the deterrents for use and offer persuasive motivations for adoption of the brand. It also depends upon the extent to which the advertising portrays a social imagery that the target group can identify with and its ability to reflect consumer culture and aspirations.
It is interesting that it is not only the commercial world which is changing its attitude and strategy of communication. The Chinese government’s adoption of the one-child policy in late 1970’s was accompanied by strident and heavy handed communication. The slogans at that time included – “one less child is one less tomb”, “have less children and more piggies” or even "houses toppled, cows confiscated, if abortion demand rejected". In an effort to reflect the modern times, the National Population and Family Planning Commission in early August decided to begin replacing offensive slogans with new, more gentle communication. The new messages revolve around positive motivations of "healthy childbearing," "reproductive health," "rearing better children," and "care for girls," and focus on expressions like "life," "health," and "happiness". The new kinder messages like "Mother Earth is too tired to sustain more children" and "Both boys and girls are in parents' hearts" reflect the changing mood of the nation and a population which is demanding and getting more and more respect, consideration and a distinct voice.
Slogans or biayo yu as they are called in Chinese, have been integral to life in China since the communists took over in 1949. In fact during the earlier days of communism, the country was practically wired up through public address systems which incessant broadcast of slogans, exhortations, party doctrine and even threats. Prominent slogans from that time are – down with imperialist running dogs, suppress counter revolutionaries, serve the people. From time to time new slogans made their way and the one which really changed the country and paved the way for rapid economic strides was the one proclaimed by Deng Xiao Ping when he said “to get rich is glorious” (or words to that effect).
With the opening up of China to the rest of the world in 1978, the scale and shrillness of slogans substantially decreased. Over a period of time political slogans have been replaced by commercial advertising and messages of indoctrination gave way to messages of inducement of unspeakable joys of consumption or unthinkable relief on usage of various products. Coming from the tradition of sloganeering, it was not surprising that the initial advertising often resembled the tone and form of traditional slogans. Even now a large proportion of advertising seen on the Chinese television comprises models holding the brand to the camera and ecstatically recounting its virtues.
It was thought that the Chinese consumer is a simple soul and can not understand the subtlety of soft advertising which attempts to endear the brand through use of emotions or clever creative devices. Direct communication of the benefits in unambiguous terms was considered the safe route of communication. As a result while advertising in many other markets is as much entertainment as brand communication and attempts to engage the consumer through subtle creative devices, in China it is often a direct onslaught with the core benefit – often repeated several times within the same advertisement.
However, research done in China shows that this direct route does not have to be the one that an advertiser needs to embrace to succeed. Emotional advertising works and so does humour, endorsement or any of the other genres of advertising practiced elsewhere. The success of advertising in China, as elsewhere, depends on the ability of the advertisement to address the key consumer concerns, to overcome the deterrents for use and offer persuasive motivations for adoption of the brand. It also depends upon the extent to which the advertising portrays a social imagery that the target group can identify with and its ability to reflect consumer culture and aspirations.
It is interesting that it is not only the commercial world which is changing its attitude and strategy of communication. The Chinese government’s adoption of the one-child policy in late 1970’s was accompanied by strident and heavy handed communication. The slogans at that time included – “one less child is one less tomb”, “have less children and more piggies” or even "houses toppled, cows confiscated, if abortion demand rejected". In an effort to reflect the modern times, the National Population and Family Planning Commission in early August decided to begin replacing offensive slogans with new, more gentle communication. The new messages revolve around positive motivations of "healthy childbearing," "reproductive health," "rearing better children," and "care for girls," and focus on expressions like "life," "health," and "happiness". The new kinder messages like "Mother Earth is too tired to sustain more children" and "Both boys and girls are in parents' hearts" reflect the changing mood of the nation and a population which is demanding and getting more and more respect, consideration and a distinct voice.
Wednesday, February 20, 2008
Guanxi on the Net
From China to Spain
Tuangou.es is a team buying website in Spain. Consumers who want to buy a particular product, register on the website, the group of consumer interested in the same product then flexes its muscle and wrings the retailer’s arm to secure unimaginable bargains. Tuangou.es is managed by Sonia who lives in Alicante in Southern Spain. However you will not find the word “tuangou” in the Spanish dictionary – nor in fact in the Catalan or any of its variations heard in Spain. You will, however, be able to locate “tuan” and “gou” separately in a Chinese dictionary, meaning “group” and “buy” respectively, which have come together to mean group buying, which combines the power and reach of internet with the bargaining power of a group.
Tuan gou (team buying in Chinese), emerged from China in online chat-rooms, and graduated to more organized websites, such as 51tuangou.com and www.teambuy.com.cn. Tuangou marries innate Chinese propensities for social-networking and haggling in a contemporary bundle to the advantage of the consumer. This has now spread to Spain, indicative of the fact that not only are the Chinese consumers exploiting the power of the Internet to the hilt, they are also setting trends and examples for the rest of the world to follow.
The power of Internet in China
Xu Jinglei, a popular Chinese actress and film director, has the world’s most visited blog (sina.com.cn/m/xujinglei) with 86.97 million clicks in 18 months. Blogging is popular in China as it allows an easy avenue for expression, which has traditionally been hard to find in China. Blogging has caught the imagination of the Chinese who use it to express their views, share their feelings and express their personality. Not surprisingly, the Chinese government felt compelled to make some efforts to contain this phenomenon. In an attempt to tighten its grip on bloggers, it demanded that they register in their own names – a move that the authorities quickly reversed on facing the crying protestations from the blogging sites and the bloggers.
Currently a little over 10% of the Chinese population has access to the internet. However this translates into over 130 million internet users, making China the home to the second largest group of internet users in the world. The penetration in the big cities, rivals that of the Western world and internet has gradually become an integral and all-pervasive part of the lives of the urban Chinese. Today the Chinese buy on the net, sell on the net, watch movies and television on the net, seek employment on the net and look for romance and marriage on the net. The recent stock market boom is greatly fuelled by millions of Chinese betting their savings through their accounts on the net.
Need for information
The explosion of the net and the overwhelming acceptance from the Chinese populace needs to be seen in the context of the enormous amount and the incredible pace of change which has taken place in the Chinese society. Change implies an increase of opportunities, a multiplication of choices and the concomitant need for information and advice to exercise these choices. Unlike the countries which developed gradually over a longer period of time, the traditional Chinese information systems could not keep pace with the change. The traditional information network and media was anyway designed to pass the party doctrines to the citizens, and inculcate values of moderation and conformity, not to inform them about how they can improve their consumption of product and services. In other societies, consumption and choice is guided by experience of others, word of mouth, and experience passed down in families and friends. Today multitudes of Chinese are going abroad on holidays, buying automobiles, buying apartments, and have no one to turn to for information and advice in their immediate family of close circle of friends who have done these before. It is not surprising then that the internet fills this vacuum and takes the role of the source of information and the guide.
Implications
To the marketers, the phenomenon of internet offers both an opportunity and a challenge. Clearly no manufacturer can afford to be missing from the net – and that holds true whether the company is a manufacturer of a consumer electronics, household cleaners or a provider of financial services. The presence on the net is required to inform about the products, to advertise their advantages and to encourage user feedback. With the advent of Web 2.0, the flow of information between the manufacturer and the consumer has truly become a two-way phenomenon, and manufacturers need to tap into the enormous bag of consumer creativity and power for innovation. Companies are already using the net to encourage user contribution to the development of the brand, its communication and the product portfolio. The net offers the opportunity to use the consumers, not merely to test products and brands, but to participate in their creation.
Guanxi for sale
It is amazing how China adopts the new while retaining old habits and practices. Guanxi is a much touted concept, and refers to the Chinese predilection for depending upon relationships and connections to move files and get things done. Gaunxi is now for sale on the internet through websites that puts you in touch with the person who could get your child into the best kindergarten in the locality, help in getting an approval secured or a payment expedited or any other similar tasks, both dubious and legitimate, where your normal, unaided efforts may be expected to face difficulties. The opportunities offered by the net are only limited by your imagination – and possibly, your scruples.
Tuangou.es is a team buying website in Spain. Consumers who want to buy a particular product, register on the website, the group of consumer interested in the same product then flexes its muscle and wrings the retailer’s arm to secure unimaginable bargains. Tuangou.es is managed by Sonia who lives in Alicante in Southern Spain. However you will not find the word “tuangou” in the Spanish dictionary – nor in fact in the Catalan or any of its variations heard in Spain. You will, however, be able to locate “tuan” and “gou” separately in a Chinese dictionary, meaning “group” and “buy” respectively, which have come together to mean group buying, which combines the power and reach of internet with the bargaining power of a group.
Tuan gou (team buying in Chinese), emerged from China in online chat-rooms, and graduated to more organized websites, such as 51tuangou.com and www.teambuy.com.cn. Tuangou marries innate Chinese propensities for social-networking and haggling in a contemporary bundle to the advantage of the consumer. This has now spread to Spain, indicative of the fact that not only are the Chinese consumers exploiting the power of the Internet to the hilt, they are also setting trends and examples for the rest of the world to follow.
The power of Internet in China
Xu Jinglei, a popular Chinese actress and film director, has the world’s most visited blog (sina.com.cn/m/xujinglei) with 86.97 million clicks in 18 months. Blogging is popular in China as it allows an easy avenue for expression, which has traditionally been hard to find in China. Blogging has caught the imagination of the Chinese who use it to express their views, share their feelings and express their personality. Not surprisingly, the Chinese government felt compelled to make some efforts to contain this phenomenon. In an attempt to tighten its grip on bloggers, it demanded that they register in their own names – a move that the authorities quickly reversed on facing the crying protestations from the blogging sites and the bloggers.
Currently a little over 10% of the Chinese population has access to the internet. However this translates into over 130 million internet users, making China the home to the second largest group of internet users in the world. The penetration in the big cities, rivals that of the Western world and internet has gradually become an integral and all-pervasive part of the lives of the urban Chinese. Today the Chinese buy on the net, sell on the net, watch movies and television on the net, seek employment on the net and look for romance and marriage on the net. The recent stock market boom is greatly fuelled by millions of Chinese betting their savings through their accounts on the net.
Need for information
The explosion of the net and the overwhelming acceptance from the Chinese populace needs to be seen in the context of the enormous amount and the incredible pace of change which has taken place in the Chinese society. Change implies an increase of opportunities, a multiplication of choices and the concomitant need for information and advice to exercise these choices. Unlike the countries which developed gradually over a longer period of time, the traditional Chinese information systems could not keep pace with the change. The traditional information network and media was anyway designed to pass the party doctrines to the citizens, and inculcate values of moderation and conformity, not to inform them about how they can improve their consumption of product and services. In other societies, consumption and choice is guided by experience of others, word of mouth, and experience passed down in families and friends. Today multitudes of Chinese are going abroad on holidays, buying automobiles, buying apartments, and have no one to turn to for information and advice in their immediate family of close circle of friends who have done these before. It is not surprising then that the internet fills this vacuum and takes the role of the source of information and the guide.
Implications
To the marketers, the phenomenon of internet offers both an opportunity and a challenge. Clearly no manufacturer can afford to be missing from the net – and that holds true whether the company is a manufacturer of a consumer electronics, household cleaners or a provider of financial services. The presence on the net is required to inform about the products, to advertise their advantages and to encourage user feedback. With the advent of Web 2.0, the flow of information between the manufacturer and the consumer has truly become a two-way phenomenon, and manufacturers need to tap into the enormous bag of consumer creativity and power for innovation. Companies are already using the net to encourage user contribution to the development of the brand, its communication and the product portfolio. The net offers the opportunity to use the consumers, not merely to test products and brands, but to participate in their creation.
Guanxi for sale
It is amazing how China adopts the new while retaining old habits and practices. Guanxi is a much touted concept, and refers to the Chinese predilection for depending upon relationships and connections to move files and get things done. Gaunxi is now for sale on the internet through websites that puts you in touch with the person who could get your child into the best kindergarten in the locality, help in getting an approval secured or a payment expedited or any other similar tasks, both dubious and legitimate, where your normal, unaided efforts may be expected to face difficulties. The opportunities offered by the net are only limited by your imagination – and possibly, your scruples.
China's View of the World
In 1773, King George III dispatched Lord McCartney as his ambassador to China to present himself at the court of the Qing Emperor, Qianlong. Emperor Qianlong, widely considered as an enlightened ruler, dismissed the ambassador by saying, “As your ambassador has seen for himself, we possess all things. I set no value in objects strange and ingenious and have no use for your manufactures”. It is not without reason that the Chinese name of the country means the “middle country”. Chinese have traditionally considered their place right at the centre of the universe and historians and commentators often ascribe to the Chinese attributes of an enormous self-pride, bordering on xenophobia. However, if there is one attribute which a modern historian will ascribe to China, it is “change”. China has changed beyond recognition since Deng Xiao Ping opened its doors to the external world, while at the same time proclaiming that “to be rich is glorious”. The change is not only evident in gleaming new highways and sky caressing towers, but also in the people’s minds. TNS set about to investigate the contemporary urban Chinese view of the world, and also their own place in it.
World leadership
On the criteria of economic development and world leadership the US towers above all countries in the Chinese minds. Chinese clearly acknowledge America as an economic powerhouse, a world leader and an influential country – far ahead of any other country, including their own. As an economic power they place China at the third place, just a little behind Japan. However as a “world leader” and an “influential country” the Chinese place their own country at the No. 2 slot, after the US, but far ahead of any other country. It is evident that the Chinese are proud of what they have achieved (justifiably so, if you look at the 8%+ growth rate for 20 years in succession) and clearly place China far ahead of any other as a country “with a fast growing economy”.
The Chinese do not have a high association of any country other than their own as “peaceful”. The Scandinavian countries come next – though at a significant distance from China. Only 9% consider the US as “peaceful” – the same as the UK. Japan, a country against which China still harbors historical grudges, is rated even poorer.
German machinery and American computers
On the commercial front, the Chinese have the highest opinion of Germany - with a 38%association with “a country which makes excellent quality products” . US has the second highest association (33%). Japan and Scandinavian countries also do well, followed by Korea, China itself and UK.
US industry is seen to excel in many areas – ranging from quality of high tech products (No. 1 position), health care products (No. 1), and quality of drinks (No. 1 again). Germany is seen to make the best automobiles and machinery. Despite all the trouble facing the American automobile industry, Chinese still hold the American automobiles in high regard – next only to the ones made by the Germans.
But when it comes to perfumes and luxury products, no country can match the allure of France – a perception which extends to personal products in general and in fact also garments (though Chinese feel they themselves make pretty good garments).
In the field of computer hardware and software, US is the clear leader – with no other country anywhere near it (India a distant second in software). In general, American products have a perception of being technologically advanced, innovative and modern. Germans and the Japanese do better on products with good craftsmanship, good detailing and products with a long life. Quite understandably, the Chinese consider themselves as the country offering products with the best value for money (followed by Japan, and the US not doing too badly at No. 3 slot).
Fashion leader and trend setter
America is seen to combine the best of science and art, and is not only seen as a centre of technological excellence but also as fashion leader and a trend setter. US is far ahead of anyone else in producing good popular music and good movies and drama. Chinese express their appreciation of this by lapping up the pirated DVDs and downloading from free file share sites – though not as the US would like them to express - by paying the full price that the Americans normally pay.
Not only science, technology and art, the Chinese recognize American excellence in education and sports. American Universities are considered as the best, with UK not far behind.
While in pop art, the US reigns supreme, when it comes to serious art and culture, it is France which takes the place of pride, and specifically on the quality of museums, UK takes the top spot. As a country with rich culture and traditions, the Chinese are proud of their own place – India and UK are a distant second.
The Chinese feel that the US is the best country in the world to go and work in (China included). However, much to the relief of the anti-immigration American lobby, most Chinese still prefer to settle and finally retire in their own country. They would, however, like to visit America as tourists – though in this US competes strongly with several other destinations such as France, Australia , Scandinavia and Italy.
Cuisine and people
In spite of the fact that the Chinese consume large quantities of Kentucky Fried Chicken and McDonald’s burgers (or perhaps because of it!), the Chinese do not hold the American cuisine in a high esteem. On this aspect, Chinese show extreme patriotism, though some have positive associations with French food.
Finally, there is one area that the Chinese men need to seriously work on. Only 12% of Chinese women consider men from their own country as handsome (Japanese men rate the worst here). Many more Chinese women seem to be drawn towards the French, the British and the Italians (all above 20% association). However, the Chinese men are most drawn to their own women (40%), though some acknowledge the charms of the French ladies (23%). With a serious gender imbalance coupled with the poor evaluation from their women, Chinese men may find attracting suitable spouses an uphill task.
Based on an online research among 398 Chinese, aged 18-44 and living in key tier 1 and tier 2 cities of China. The research was conducted by TNS, the largest marketing information provider in China, and the second largest research agency in the world.
Written by Ashok Sethi. Ashok is the regional director methodology and analytics for TNS and is based in Shanghai.
World leadership
On the criteria of economic development and world leadership the US towers above all countries in the Chinese minds. Chinese clearly acknowledge America as an economic powerhouse, a world leader and an influential country – far ahead of any other country, including their own. As an economic power they place China at the third place, just a little behind Japan. However as a “world leader” and an “influential country” the Chinese place their own country at the No. 2 slot, after the US, but far ahead of any other country. It is evident that the Chinese are proud of what they have achieved (justifiably so, if you look at the 8%+ growth rate for 20 years in succession) and clearly place China far ahead of any other as a country “with a fast growing economy”.
The Chinese do not have a high association of any country other than their own as “peaceful”. The Scandinavian countries come next – though at a significant distance from China. Only 9% consider the US as “peaceful” – the same as the UK. Japan, a country against which China still harbors historical grudges, is rated even poorer.
German machinery and American computers
On the commercial front, the Chinese have the highest opinion of Germany - with a 38%association with “a country which makes excellent quality products” . US has the second highest association (33%). Japan and Scandinavian countries also do well, followed by Korea, China itself and UK.
US industry is seen to excel in many areas – ranging from quality of high tech products (No. 1 position), health care products (No. 1), and quality of drinks (No. 1 again). Germany is seen to make the best automobiles and machinery. Despite all the trouble facing the American automobile industry, Chinese still hold the American automobiles in high regard – next only to the ones made by the Germans.
But when it comes to perfumes and luxury products, no country can match the allure of France – a perception which extends to personal products in general and in fact also garments (though Chinese feel they themselves make pretty good garments).
In the field of computer hardware and software, US is the clear leader – with no other country anywhere near it (India a distant second in software). In general, American products have a perception of being technologically advanced, innovative and modern. Germans and the Japanese do better on products with good craftsmanship, good detailing and products with a long life. Quite understandably, the Chinese consider themselves as the country offering products with the best value for money (followed by Japan, and the US not doing too badly at No. 3 slot).
Fashion leader and trend setter
America is seen to combine the best of science and art, and is not only seen as a centre of technological excellence but also as fashion leader and a trend setter. US is far ahead of anyone else in producing good popular music and good movies and drama. Chinese express their appreciation of this by lapping up the pirated DVDs and downloading from free file share sites – though not as the US would like them to express - by paying the full price that the Americans normally pay.
Not only science, technology and art, the Chinese recognize American excellence in education and sports. American Universities are considered as the best, with UK not far behind.
While in pop art, the US reigns supreme, when it comes to serious art and culture, it is France which takes the place of pride, and specifically on the quality of museums, UK takes the top spot. As a country with rich culture and traditions, the Chinese are proud of their own place – India and UK are a distant second.
The Chinese feel that the US is the best country in the world to go and work in (China included). However, much to the relief of the anti-immigration American lobby, most Chinese still prefer to settle and finally retire in their own country. They would, however, like to visit America as tourists – though in this US competes strongly with several other destinations such as France, Australia , Scandinavia and Italy.
Cuisine and people
In spite of the fact that the Chinese consume large quantities of Kentucky Fried Chicken and McDonald’s burgers (or perhaps because of it!), the Chinese do not hold the American cuisine in a high esteem. On this aspect, Chinese show extreme patriotism, though some have positive associations with French food.
Finally, there is one area that the Chinese men need to seriously work on. Only 12% of Chinese women consider men from their own country as handsome (Japanese men rate the worst here). Many more Chinese women seem to be drawn towards the French, the British and the Italians (all above 20% association). However, the Chinese men are most drawn to their own women (40%), though some acknowledge the charms of the French ladies (23%). With a serious gender imbalance coupled with the poor evaluation from their women, Chinese men may find attracting suitable spouses an uphill task.
Based on an online research among 398 Chinese, aged 18-44 and living in key tier 1 and tier 2 cities of China. The research was conducted by TNS, the largest marketing information provider in China, and the second largest research agency in the world.
Written by Ashok Sethi. Ashok is the regional director methodology and analytics for TNS and is based in Shanghai.
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