Campaign Strategies for Chinese Customer


Campaign Strategies for Chinese Customer

By Cyril ChenEmma Li
23 March 2018


Target China, ConnectX and Latipay jointly organised a Chinese New Year Opportunities event on 21 February. Target China is a professional marketing firm that specialises in assisting clients from Australia and other locations expand into the Chinese market. ConnectX provides media solutions to link advertisers with Chinese clients throughout Australia and China. Latipay is a global online financial technology solution focusing on enterprise-level clients; its platform allows Chinese clients payers to make payments in RMB yuan through online banks or their WeChat or Baidu wallets, while the relevant Australian or New Zealand business receives full payment directly in their home currency in real time, at no cost to the business.

In the Opportunities event, Target China, ConnectX and LatiPay expressed their views on marketing in China; Chinese tourists as consumers; and the e-payment market among ethnic Chinese people living in Australia.  Target China addressed the question of how non-Chinese enterprises—especially small and medium enterprises (SMEs)—enter the Chinese market. This set off a discussion involving the whole audience.

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Target China’s General Manager Jane Li identified cultural barriers, platform barriers and regulatory barriers preventing overseas enterprises from entering the Chinese market: ‘The Chinese market is very attractive to foreign SMEs, but when they prepare to enter the market or launch marketing campaigns, the majority of foreign SMEs enterprises find these hurdles very difficult to really overcome.’ Target China Director Kevin Wang explained that identifying these three barriers to entry came out of extensive research and reviews of Australian enterprises in the context of the Chinese market. ‘We have found that when overseas enterprises undertake promotions in the Chinese market, their efforts just don’t translate into the desired outcomes. This is where we come in. Target China’s mission is to provide an optimal solution for each SME that consults us.’

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In the Questions and Answers session, Target China staff responded to particular concerns by participants. One such question was from the marketing manager of an Australian wine producing company, who wanted to know how to register a business account on Chinese social media platforms. How to do this was explained in detail. While identifying difficulties, the Chinese New Year Opportunities event was successful in showing participants how Target China’s expertise can provide a tailored solution for a company that is prepared to   work together with Target China as well as with ConnectX  or Latipay as relevant.

At this time, China is opening up on an unprecedented scale, welcoming investment and trade with companies from all over the world. But this does not mean that it’s just plain sailing. Apart from cultural barriers, platform barriers and regulatory barriers, we have found that there are still many constraints in getting into the Chinese market and operating successfully in that market. The goal of Target China’s long-term commitment to trade with China is, in precise terms, to understand and overcome such constraints.

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CHINA INTERNETS SIX MAIN TRENDS OF PROMOTION

PROMOTION ON THE INTERNET IN CHINA

CHINA INTERNETS SIX MAIN TRENDS OF PROMOTION

PROMOTION ON THE INTERNET IN CHINA

By Jane Li(Target China)
04 July 2017


The expansion of social media
Conceived as instruments for personal interconnection between users, social media have become a prominent channel for the transmission of news. Social media are used for online shopping and in e-commerce applications designed for compatibility with the ubiquitous mobile phone. On WeChat, the mobile phone is often used for making payments of personal accounts.

Decentralised news delivery
Traditional sources for the dissemination of information—television, radio, portal advertising, and even online search engines—are tending to decline as users spend time on their mobile phones rather than on personal computers, and gradually choose among specialised professional paths to obtain the information they need. In this picture of decentralised delivery, there are two prominent vehicles of news information. ‘Citizen journalism’ refers to the dissemination and analysis of collected Internet information by the general public; and ‘influencers’—individuals who can affect others’ decisions because of their relationship with a group.

The value of network information depends on interpersonal relationships
At one time hyperlinked websites were the vehicles of Internet information. But in the current mobile-dominated environment, due to social media, automatic information reception and online video, the transmission of information is constantly increasing while users click links much less often. Influencers may influence the nature of information and the way it is viewed by users.

User community groups
Community group members tend to share information and this happens very rapidly within a single group, whereas information takes time to be disseminated between different community groups. A community group will have its own key opinion leaders (KOL) trusted to represent group public opinion. Some public companies have begun to assess the values of community groups in order to target promotions to each group.

Good stories speed dissemination within user networks
Within each interpersonal network formed by a user’s relationship with other users, attractive content—an interesting story, or a potentially controversial topic—will tend to disseminate rapidly. The important factors in terms of speed of dissemination are not the quality and length of the information, but interesting content and location within an interpersonal network.

Standardization in the new media industry
Over the last few years, definite pricing levels and operational methods have been established on a standardised basis. This is positive in terms of efficiency, and it also tends to appeal to companies who may decide to use their own promotion methods within the new media industry.

THE RISE OF “HER ERA” IN CHINA

The rise of “Her Era” in China

THE RISE OF “HER ERA” IN CHINA

The rise of “Her Era” in China

By Penno Chen(Target China)
28 June 2017


“Her Era” and opening female-targeted market has become a popular topic within the Chinese businesses community during the recent time period. Along with the expanding of Chinese female’s status and their rapid increase in consumption ability, the female market in majority areas has exceeded male’s market, becoming one of the main decisive factors in enterprizes and product development direction. The reasons for the formation of this situation include China’s cultural background, improve in women’s economic ability, family financial mastery and national policy guidance.

Cultural background
Although feminism is not universal in China, Chinese women almost obtain equal social status to men, and in certain areas, female may even be stronger than male. This is due to the policy of one-child policy in China leading to every family to treat their only child with equality and care. With girls obtaining physical weakness this instead leads to a higher attention from family and society. Also due to the contemporary culture in China, men are considered to be more responsible and accountable while women should be more protected. Further views and discussions include “men are to support financial capital and women are to spend the capital”, therefore in China, men obtain a much higher production capacity, however, has a lower consumption ability compared to women.

Financial ability
Official data from China government shows, in 2016 women who participate in full-time employment obtains the proportion close to 67%. This percentage is still lower than male which is 79%, however female business leaders under 35 years of age obtains the proportion of 51% (female business leader above 35 years of age only obtain 16%).

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This is due to the improvement of the educational level of women and the strengthening of awareness of equality between men and women, gender is no longer an obstacle of work. Female’s increase in business status directly led to the improvement of women’s economic capacity, which is also one of the important reasons for the prosperity of the female market.

Family Finance
In the Chinese family, majority women are in full control of family finances and dominate household consumption. According to Target China’s survey data, in 85% of Chinese families, women not only manage their own income but also manage men’s income. This means that in a family women are who is aware of the information and total of finance with men having weak awareness of any information. Women also decides the daily consumption of the family whether for use, wear or eat. For “travel”, women’s decision influences on the purchase of transportation, especially for consumption of cars over a hundred thousand which will normally be decided by the female. In addition, apart from the expenses of family essentials, women’s consumption in luxury products are much larger than men and present a larger growth trend.

Policy guidance
As China’s export share in recent years continued to decline, expanding domestic demand become one of the important strategies to save the economy. The main strategy includes the expanding in female market, stimulate more women to spend. Businesses are also increasingly becoming aware of the significance of the female market. Apart from traditional female industry such as fashion, cosmetic etc, the original male-dominated industry also began to tilt toward females such as sporting equipment, electronic games, and etc.

Power of “Her Era”
According to China’s largest e-commerce operation Alibaba Group’s research data, it shows that currently the size of mainland women’s economic market is nearly 2.5 trillion yuan, to 2019 the economic market is expected to reach 4.5 trillion yuan. Comparing to male consumer community which obtains a more stable aesthetic view, women are more willing to accept new products and experiences. In the situation of female consumption goods rising by years, compared to male, female consumption has a lower concentration but are balanced and diverse. Female is a significant driving force for the diversification of consumption.

Travel consumption
Women take more autonomy in travel decision. In 2016, in family travel and couple travel, the majority are women’s decision making In family travels, women’s decision proportion exceeds 70% and in couple travels, this data highly reaches 85%.

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In addition, the independence of women in travelling is also growing. From 2014 to 2016, more women participated in private travel, obtains a higher ratio to men. From 2016, 46.8% of female indicate the participation in private travelling throughout the recent year whereas the male only obtains the ratio of 43.2%.

Self-education consumption
Apart from spending on shopping and travel, women’s independence is also reflected in the rising on self-education spending. Although this expenditure is still lower than men, in time the difference between them continuously decreases. In 2016, women are expected to spend more than $ 4,500 yuan on education and training in the coming year which is only $48 yuan lower than men.
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In addition, in 2016, the proportion of women who plan to process hobby and talent training in the coming year reaches 67.2%, much higher than men’s 33.8%. This demonstrates that women are not only more diverse in material consumption but are also willing to experience in mental consumptions.

For Australian companies willing to expand its Chinese market, Female is one of the most significant market factors to be aware of. However, due to cultural differences and other reasons, Chinese women’s preferences may be different to Western cultures. Therefore, before processing promotion of product to Chinese female, seek market planning companies with strong Chinese background such as Target China for consultation toward the characteristic and preference of Chinese female’s market, this surely lead to an extreme increase in the probability of success in the promotion.

A REPORT OF WECHAT NON-CASH OVERSEA TRAVELLING OF INTERNATIONAL WORKERS’ DAY HOLIDAY

A Report of WeChat Non-cash oversea travelling of International Workers’ Day Holiday

A REPORT OF WECHAT NON-CASH OVERSEA TRAVELLING OF INTERNATIONAL WORKERS’ DAY HOLIDAY

A Report of WeChat Non-cash oversea travelling of International Workers’ Day Holiday(1st May ~ 4th May)

By Kevin Wang(Target China)
10 March 2017


The first of May as “International Workers’ Day” brings the opportunity of all populations in China to a whole week holiday. Lots of Chinese travel to Hong Kong, Taiwan, Macau and overseas during the holidays.

WeChat payment has become Chinese population’s main purchasing method. In developed cities approximately all businesses provide WeChat payment services, also know as Paylinx in Australia. WeChat payment can be quickly processed by all purchasing reasons including grocery shopping, taxi, take away and any other bills. This type of “Non-Cash Travel” has become the main trend in China mainland. This lead to other region and areas around China mainland willing to develop this way of payment method for population and tourist attraction purposes. Nowadays, not only Hong Kong and Taiwan but as well as Korea and Thailand’s focused tourist areas are also developing this method of WeChat Payment. This cross-border payment service by WeChat allows Chinese tourists to proceed payments using RMB with the current exchange rate which allows time-saving and resolve other inconvenient issues. This has made a great welcome from tourist and businesses in these areas.

Last day of “May First” holiday 2017, WeChat published ‘Non-cash out of border report’. This data supported by 889 million active users is calculated by the total average of Chinese consumer’s “Non-Cash” payment action in out of border areas during the “May First” holiday.

During the holiday period, Guangdong obtains the largest number of outbound tourism, followed by Shanghai, Beijing, Fujian, Zhejiang, Jiangsu. According to the report, the location most favoured by Guangdong tourists are Hong Kong, the majority of Shanghai tourist’s travel location is Japan with the shortest travelling distance, the majority of Beijing tourist travels to the United States and Zhejiang tourists travels to Italy.

Hong Kong at first place, Korea falling behind for the first time, Thailand achieving the fastest growth.

Cross-border WeChat payment consumption data shows that Hong Kong as the area where most consumption processed with cross-border WeChat payment exceeded Korea for the first time. Originally Korea as the usual first ranked country dropped to the second, due to American and South Korean military officials agreed to deploy the THAAD missile defence system in the country. Other countries ranked in the order of Thailand, Japan, Australia, China Taiwan, New Zealand, Singapore. Among them, Thailand is the country with the fastest growth of Non-Cash payment frequency processed by the Chinese tourist, this is related to the growth of the number of Chinese tourists travelling to Thailand. This year, during the Chinese new year holiday period, Thailand’s number of transactions compared to the same period last year rose 104%. During the Songkran Festival in April, the number of transaction rose another 38% than the new year period which is six times of the same period from last year and during the “May First” holiday, this data again rose 10%. Nowadays all businesses including global duty-free shops, Chiang Mai and even Phuket’s street hawkers obtains the access to WeChat payment. Furthermore, Japan is also a Non-Cash destination favoured by Chinese tourists. The nuclear pollution heavily impacted on Japan’s tourism businesses, however, many Chinese consumers still maintain the choice to travel to Japan for travelling and shopping during Holiday periods.

Non-Cash payment becomes a cross-border trend, businesses uses WeChat payment to attract customers.

Hong Kong Sasa cosmetic shop is one of Hong Kong’s highest number WeChat payment transaction business during “May First” period and 70% of its customers are from China mainland. This is achieved by Sasa cosmetic activate WeChat payment application as well as release WeChat payment discount activities to attract Mainland tourists as WeChat payment is a usual consumption method from Mainland’s consumer.

Thailand’s largest king power duty free shops marketing manager Kuang Wei indicates that more Chinese tourists wishing to proceed purchases using WeChat payment, therefore, they accessed WeChat Payment last year for Chinese consumers to be able to experience the same convenient shopping environment as they do in China also will not need to worry about money exchange or other issues.

Currently, WeChat has been registered in 12 countries and regions, support 11 direct currency settlement and solves the issue of money exchange or other problems for Chinese tourists. Travel the world without a wallet as an action of “Non-Cash” has constantly become reality. WeChat Payment team indicates that cross-border businesses will follow the pace of Chinese tourists. From Hong Kong, Japan, Southeast Asia as well as other neighbouring region and countries of tourism as the start, and gradually develop to the world.

HOW DOES AUSTRALIAN HEALTH PRODUCTS LAUNCH INTO CHINA’S MARKET

How does Australian health products launch into China’s market

HOW DOES AUSTRALIAN HEALTH PRODUCTS LAUNCH INTO CHINA’S MARKET

How does Australian health products launch into China’s market

By Jane Li(Target China)
01 May 2017


China’s health care product’s market is still positioning in the early stage of growth phase, demand has not been fully met and with the development of digital communication, overseas health care product enterprises receives more opportunities for development in China.

In recent years, health issues have become one of the most significant livelihood issues of Chinese society. Due to the negative effects from government’s long-term population control policy, China’s ageing population is deepening. According to the research from Target China, the number of elderly people aged 60 and above in China calculated to 8.2% of the total population in 2004 and has risen 15.5% in 2014 with the increase of nearly 60 million aged population. This developed the popular topics relevant to aged population’s health issue across social media. At the same time, environmental pollution is also one of the reasons why Chinese population obtained further attention in health topics. The sudden haze pollution in 2013 made people become deeply aware of the danger of environmental pollution. Although the Chinese government has embarked on a number of remedial actions on this air pollution issue, but did not completely win the trust of the community. In addition, the increase of pressure from young people in China and a large number of sudden death cases lead to the population began to pay further attention to young people’s health problems.

Under this large background, Chinese people had to change their traditional concept of consumption. More and more Chinese consumers begin to advocate to a healthy lifestyle and the quality of life requirement rapidly improves, this lead to the constant increase of demand of health care products. However, Chinese community has lost its complete trust in China’s health care products and this is caused by three main reasons: First of all, the domestic health products are only targeted on elderly population and can not meet the demand for other age populations. Followed by unscrupulous businesses who focuses on the attraction of consumer and hype false advertising also exaggerate the results of products, this lead to people having negative emotions towards domestic health care products. Finally, the domestic health care product’s market develops over speed however results in the incomplete of the regulatory system, supervision of relevant departments unable to meet the expectation, resulting in a number of unscrupulous businesses blatantly sells poor quality and even harmful products causing further negativity in domestic health care industries.

The poor performance of China’s health care products provided great development opportunities for overseas health care industries including Blackmore and Swiss who established cooperation with Chinese industries hoping to expand further in China’s health care product’s market. In 2015, overseas health care products presented great and positive hit to China’s market. Among with this, NBTY in the finance year turned from negative income to rapid profits with a net profit that reached 269%. Blackmores in the second half of the year increased the sales to 73%, reaching an amount of $237,600,000 and obtained China communities like and wants. Due to this great increase of sale the company even hired the sporting celebrity Lee Na as their representative of their brand’s image.
Although overseas health care products received the positive welcome from the Chinese community, the unsuccessful of import approval are very high – health care product conventional import procedures are very complicated and lengthy. Usually, in order to collect the approval from relevant departments of China, overseas health care brands will need to defray a fee ranged $50,000-$200,000 in average for each product and the approval time takes up to 1-2 years. If the brand does not own the approval from the department of China, products will not be able to enter pharmacy or direct marketing as well as other channels. Therefore, in contemporary times the majority of overseas health care brands uses the method of Daigou(second person purchase), cross-border e – commerces or declare the products as food to enter Chinese markets. E-commerce is a form of overseas sale. It uses a form of self-purchase and mailing to import the products. This meets the standard of the monitor of food or drug from the country of origin as well as decreased the barrier of overseas brand entering China’s market. According to Target China’s investigation, 18% of China’s consumer purchases online at an average of everyday and this takes up 40% of the young population. Cross-border e-commerce and overseas Taobao is an essential part from daily life of the majority of consumers and overseas health care products are one of the significant components of overseas Taobao.

Apart from the consumption channels, brand promotion is also one of the issue that overseas healthcare brands need to face. Different to China’s local companies, overseas enterprises have huge barriers toward Chinese culture and Chinese market’s cognition. Many overseas companies insist on applying the Western marketing strategy towards Chinese market, ignoring the characteristics of Chinese markets and results in failing. Germany’s famous electronic device brand ‘Siemens’ released the Xelibri series of mobile phones in 2003. However, Siemens’s promotion team did not considerate Chinese market’s characteristics, instead directly developed market location and promotion strategies focusing on the situation of Germany’s market. This lead to the decline of the product and eventually came to a cessation of production in 2004. It is surely irrational to blindly arbitrate promotion activities in Chinese market unless there are specific and high understanding of China’s culture and market environment. Regarding to most of overseas enterprises, support from an intermediary agency such as Target China that obtains strong Chinese background will be a wise choice.

Overall, due to the issue of aging of the population, environmental pollution, over the stress of work and other factors of the society lead to the demand of health care products for China’s population. China’s huge potential spending power is the the targeted object all overseas enterprises covets, but it is surely difficult to take place in China’s market. The deep understanding of Chinese culture and market as well as the promotion method meeting China’s national condition is what needs to be obtained in order to reach success. Target China is Chinese market’s marketing profession and can provide you with China’s latest market information, promotion method as well as National policies. We are highly experienced in developing cross-border business solutions and increasing brand visibility. Since 2012, we have a consistent record of helping clients achieve their goals and promote their business to the public. Our creative strategies are well designed basing on data-driven research and our unique resources including China celebrities, local distributors and our wholly owned social media channels. If you are interesting in China market, please contact us!

What is “Internet Celebrity Economy” in China


What is “Internet Celebrity Economy” in China

By Kael Xu(Target China)
28 April 2017


Internet celebrities and internet celebrity economy have achieved an extreme expand in popularity becoming the most frequent topic in China. According to China Daily(Sep, 2016), the market size of internet celebrity economy has been larger than the box office in 2016.

What is a “Chinese Internet Celebrity?”

Chinese internet celebrities, known as “Wang Hong(网红)”, are people who have become famous on Chinese social media and online communities especially those who has the abilities to advance their internet traffic to real cash. Internet celebrity economy means the business chain of internet celebrities which includes incubators and agents, support teams and platforms, online marketing strategies as well as product selling methods.

Different with pop stars, models, actors and traditional KOLs, internet celebrities represent strong personalities on the social media and online community. They share their lifestyle, experience, and opinions on their channel frequently, keeping interaction with fans and guide them to shops, brands or other goods and services. Fans then become willing to follow the suggestions as they feel internet celebrities are a representation of higher cordial and friend-like than pop stars and traditional KOLs. Most Internet celebrities are not professionalist. However, they admit stronger influences and achieve strong effectiveness in specific areas.  Dayi Zhang, one of best known Chinese internet celebrity, defining herself as a model and fashionistas with a great amount of five million fans on social media channels. Furthermore, in the ‘Bachelordom Day’ 2016, she presented herself on TaoBao livestream show, guiding her audiences to the fashion store and brands of Taobao, this made a huge amount of 100 million sales on the day.(Ebrun, 2016) BBC news(Aug 2016) points out that Zhang’s income has reached 46 million US dollars, which is the double amount of the top Chinese actress Bingbing Fan.

The History of internet celebrities in China

The reasons why internet celebrities in China accomplish such influential results are actually complicated. The situation is formed by the highly developing of internet technology, unique pop culture background, and the rapid economy growing.

In the past twenty years internet technologies especially social media, e-commerce, and mobile applications have been highly developed in China. Based on research of CNNIC(2015), China obtains 6.49 billion internet users by the end of 2015. This includes at least 5.57 billion users uses mobile to access the Internet for purchasing and social behaviours.

As a high population in the society of the new generation agrees and sticks more to the enjoyment of indoor entertainment, the Internet has become a major path of entertainment for the decades. From the early 2000s, community websites, esports games, and online videos are the pop culture of China’s young generation, especially for university students. The internet users who obtain an advantage in commenting games, the creating interesting content, or writing in web fictions are instantly becoming famous on the community of websites as well as video websites. They are the prototype of the Chinese internet celebrities that are present in nowaday fashions.

After 2010, the strong force of social media and eCommerce are growing rapidly also effectively in China. Social media users share photos of their lifestyles on the internet such as food, makeup products, fashions, and pets. Part of them became internet celebrities due to their experiences in makeup or collocation of fashion. Many shop owners of Taobao particularly the fashion store owners immediately took notice of the great chance to promote their products by becoming internet fashionistas in order for them to work towards the creation of firm relationships with customers on social media and collects attention from them to purchase the owners store and brands. Some content creators also transfer from website communities to social media because they believed it was a faster result to spread their jokes, comics, comments as well as articles. In the same year the influence of Japanese animation which was another Chinese teenager and young adults way of entertainment also barrage video websites(known as “Danmu-video site”, which contains a real-time commentary subtitle system that displays user comments as streams of moving subtitles overlaid on the videos playback screen) became popular as it is a combination of functions of video sites also online communities.

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Barrage Video

Some alterations of internet celebrities are the change from traditional video website to barrage video websites in order to seek for greater traffic and better interaction experience.

In 2014, livestream websites and applications spread out rapidly in China. Different with traditional video, livestream allows the uploader to make a real-time video containing a comment system to interact with the audience. The esports game commentators and advantaged appearance of teenagers were the first type of group of video maker. The majority of them gains popularity and collects money from fans’ tips(known as “Da Shang 打赏”). As more accessibility introduced, fans became more devoted to internet celebrities even greater than actual celebrities of actors and/or models also top musicians. Some shop owners of Taobao and ‘DaiGo’(people who consumes product to sell to a different area which does not provide those certain goods) develops that live streams can be another effective marketing method to promote their products , therefore, they also became a part of livestream celebrities in order to earn considerable traffic for their stores and successfully converts their fans to the real money. Furthermore, due to the efficient developments growing in mobile device and applications, social media and online videos have covered a large percentage of China’s population of different ages and careers. In regard to developing reactions to this large amount of traffic, a new generation of KOLs based on the internet has approached and introduced to the market. They can be found in all industries such as finance, health, IT also military. This generation is raising with high speed across the online community and become parts of internet celebrities, providing and supporting their opinions to their fan, usually for commercial purposes.

The impact of internet celebrities and the success of Taobao store owners effectively attracts the attention of all industries in China. In 2015, ‘ALIBABA’ begin his new strategy to blend in with social media with e-commerce of the core idea for the marketing of internet celebrities. Comparing with the original market resolution of celebrities, internet celebrities strategy processes with lower cost and higher accurate marketing. Wang(2016) points out that although China’s economy is slowed down in 2016, the revenue of Taobao also Tmall are continuing dramatically rising due to their advantages in internet celebrities strategies.

Alibaba is not the only successful example. Livestream platforms, social medias and video sites have all realised the influence and potential value of internet celebrities, therefore, begins to develop their own strategies also effective resolutions. Up to the beginning of 2016, Chinese companies has created a completed business chain of internet celebrities called “internet celebrities economy”, related to the internet celebrities incubator, internet celebrities agency, investor, social media platform, e-commerce website as well as advertising agencies. Throughout this business chain, internet celebrities are responsible for the role of traffic container. They fill themselves with the traffic from social media and video platforms then proceeds the auction of the traffic to platforms, brands, companies also online stores in order to accomplish their commercial needs.

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There are other influential factors causing the phenomenon of internet celebrities. One of the reasons of the contribution is traditional KOLs are more likely to lose trusts from Chinese society. From the 2000s, there are some traditional KOLs especially certain professor and professionalist presenting ridiculous and unsuitable opinions to the academic reports, interviews of news also TV shows which then burn up and negatively affected the audiences. Some Chinese audiences believed that professors and professionalists are equivalent to idiots(known as “zhuanjia 砖家” and “jiaoshou 叫兽”). As a result, audiences are more considerable to internet celebrities as they are more “professional” and has further advantages of friend-like and affable.

Another extensive reason is that Chinese people enjoy the feeling and communication of sharing lifestyles. They are positive to notice and value different stories from others. An great example is Fulin Fang, who’s from British but can fluently speak Chinese. He insists on updating his video blog on Bilibili video website, mentions about the difference between England and China. Recording his daily life in Europe and discuss the British English accent also pronunciation. With less than one year he achieved the amount of one million fans on Bilibili as well as hundreds of thousands followers on Weibo and WeChat.

Types of Chinese internet celebrities

There are three general types of internet celebrities in China: content creator, product sales, and controversial figures.

Content Creators
The first type is the content creator, including bloggers, writers, illustrators, KOLs, commentators, photographer, livestream host and video makers. They cover topics of lifestyles, finance, technology, literature, culture, fashion also entertainment and can be further classified based on the different type of media they use. The most common medias are social media application and community websites such as WeChat, Weibo and Zhihu. The creators are usually encouraged to share personal experiences or write articles on these channels. The users who produce high-quality content are more likely to attract a greater amount of audiences and followers and becomes online internet celebrities.

Weibo and WeChat are the largest and most popular social media channels in China that created plenty of internet celebrities. WeChat is a free, cross-platform and instant messaging application released in 2011. Although Wechat is a private social channel, its official account function can be consumed in the public channel. It provides content creators a blog system which allows to release and share the articles with their followers. According to WeChat’s official report in 2016, it reached 10 million official accounts and over 60% of the WeChat users are more like to read news as well as articles from the official account instead of TV, magazine, and newspapers.

Comparing with WeChat, Weibo is supposed to be more efficient on gaining fans and spreading articles. However, as Weibo does not have a serious verification system on registration and commenting, therefore, fake fans and meaningless comments can be massly produced by soft programs. It is not a secret that some websites and companies make use the software to produce Weibo fake fans and fake comments to provide them to people who desires to become an “internet celebrity” instantly without any effort. (China.com, 2014) Baidu Baike states, there are a certain amount of Taobao stores selling the fake fans of Weibo services online with the price of 4 dollars for 2000 fans. As a consequence, Chinese social media users appears to lose trust in internet celebrities on Weibo as they suspect unfamiliar accounts that whether their fans factual.  Moreover, the content on Weibo was limited to 140 characters, which requires higher skills in order for the creators to develop quality contents. On the other hand, WeChat Official account doesn’t have many limitations on characters, images, audios and videos which provide users with a simplified and advantaged reading experience also make users gaining the feeling of professional.

As a commercial consideration, internet celebrities on social media and online communities generally select stealth advertising as the way to switch fans into real money. Different with Western users, Chinese users heavily dislikes seeing any form of display advertising, especially from an official account. Tieba, which was the top ranking community website had tried to insert display advertisements under the comment that contains specific keywords. For example, if a user posts a comment including “car”, an advertisement of a car will appear under that comment. This action caused the anger and negative attitude of Tieba users. As Tieba charges business owner every time when the advertising appears, various amount of users deliberately mentions the keywords in the comment as they believe their actions may result in the business owner realizing the expense and uselessness of the advertisements.Some users may even appear to write inappropriate quotes such as “the next comment is written by my son” then adds the keywords to joke on the business owner. Moreover, a few months after the advertising campaigns brand or title, Tieba fell to the second of community websites ranking due to the transfer of users to Zhihu. It was the second in placement and announced that they never display any sort of advertisements. As Chinese content creators clearly understanding of the possible damage caused by making display advertising, they usually hide the advertisement in the articles or use other attractive ways to represent the advertising content. This form of stealth online advertisement are more acceptable and had positive reflections from clients.
In the later of 2014, the traffic of traditional video websites starts to fall down. Instead, livestream websites and barrage video websites begin to expand and increase in popularity. Bilibili, the most popular barrage video website, defeating Iqiyi in 2016, became the No.1 ranking video platform in China. Found at 2010, Bilibili was only focusing on Japanese animation and its related videos. With the growth of audiences, a wide range of content such like sports, lifestyles, movies, TV drama and handcrafts was added. Afterward, Bilibili became a comprehensive video website.

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The key points of Bilibilis’ success are that this program consistently catches the pop culture and builds up the kindly environment as well as strong support for internet celebrities. Video creators in China are also particularly enjoying the content of Bilibili. This provides results that Bilibili contains a firm relationship with both audience and content creators in the current new Chinese generation and will also take the following generations with positivities in the future. The internet celebrities on Bilibili are not only Chinese but also foreigners. Introduced by local students and friends, oversee students in China and Chinese learners over the world whom also are a part of audiences in watching videos on Bilibili. Some of those audiences become internet celebrities by uploading their own videos which are certainly rare on other social media channels or video websites.

Livestream is another popular type of video platforms in China. After the explosive growth in 2015, livestream websites has kept on increasing throughout 2016. Li (2016, Sohu) points out, up to the end of 2016  there was more than 300 live stream platforms and half of it has completed capital financing. Among these platforms, the valuation of Panda TV, Chushou, Douyu are over 1 billion(Li, 2016).

The greatest amount of population of internet celebrities performing on livestream platforms is mainly game players, game commentators and young beauties. Due to the booming of e-sports game in China in recent years, livestream became a perfect way to broadcast the live game contents especially the game competitions. According to Hanson(2016), throughout 2016 a percentage up to 92% of Chinese young population watches the competition online from the number of 87.6% in 2015. Similar to traditional sports games such as soccer, basketball and tennis, e-sports games require a high standard of skills and techniques for games which are delight and entertainable for people to watch. The esports players are confident and positive to share their game on the livestream, discussing the skills and techniques they used. Consequently, skilful players and experienced commentators change into internet celebrities which are followed by other esports game fans.

Another type of internet celebrity is who plays entertainment video games and present them on livestreams. Different with the esports players and commentators, they don’t have the qualified skill and techniques but plays various type of games. They present the games for people who are short in time or unwilling to purchase the software. They perform the game on live and provide audiences with the enjoyment of the game content even if the audiences don’t have the opportunity to. Moreover, the players and audience often discuss the game through the video, this makes audiences to obtain the feeling of actually operating the games.

Users of livestream websites and barrage video websites are not paying as much as social media and online community website towards advertisements. And in most situations, a short display advertising is tolerable. Many content creators on these video websites are also capable of the knowledge to create the display advertisement into something more interesting, catching and acceptable. Comparing with Wechat and Weibo, video promotion can reach more targeted audiences and invest higher conversions rates.

Young beauties as internet celebrities are another type of content creators on livestream who are controversial in China. Most of these advantaged appearance people who meets the beauty standard of nowaday society performs by dancing, singing or simply communicating with the audience throughout the livestream and majority of their fans(mostly male) are willing to “tip” them from one to millions of dollars. Part of those beauties further decides to wear inappropriate fashions, talking or performing with a strong sexual suggestiveness that directly aiming at attracting more male fans for tips. Shi(2016, Sina) points out that these beautiful young ladies are “playing edge balls”. They are fitting into the audience’s sensory needs with beautiful appearance, stimulating their desires and leading them to tip.

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In fact, these young beauties also believe an attractive appearance is a key to achieving fans and income and due to this a development of standard beauty face called the “internet celebrity faces”. This title is mainly created by makeups and plastic surgery also injections. Tsoi(2016, BBC) states that a pair of doe eyes, a pointy chin, a high nose and fair skin become a “standard face” of female internet celebrities in China. They believed that the “internet celebrity faces” are one of the most effective weapons which can support them to attract male audiences. Additionally, the recent reports appear that handsome and attractive male internet celebrities who sings and dances on livestream website are also dramatically rising and the majority of their audiences are female.

Product Seller
Before Alibaba launched its internet celebrity strategy, some Taobao shop owners already realised the importance of raising their own reputation on social media. They are the first generation of product sellers in the title of internet celebrity. They introduce products on social media with their Taobao store links. They don’t only speak about the advantages but also presents their followers the stories and their using experiences of the product which is a high effective way to guide the followers to purchase goods.

Due to the successful history and results of Taobao shop owners, Alibaba believes that it could be an effective strategy for product promotion and sales. Starting in 2015, Alibaba established an education facility to mass produce internet celebrities as their next generation salesmen in order to work towards Taobao and Tmalls. After one year of the process of the strategy, with the contribution of these internet celebrities, Tmall reached a 100 billion sales in a single day on the 11th of Nov 2016 which became the largest sales record in e-business history. Alibaba has also developed their own livestream system which allows the customers to order the products while they are watching the real-time video by the internet celebrities. Furthermore, Alibaba provides the internet celebrities rental services for the Tmall store owners who desires to promote their shop and products, besides the general rental fee, internet celebrities can also share the profit from the promotion activities.
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Internet Celebrities sell products on Taobao app

Alibaba is not the only online platform who promotes the sales of the products with internet celebrities, Weibo and Douyu are also have their own product selling system. Weibo allows their contracted internet celebrities to create a “product showcase” on their personal page with links of the goods from the Taobao store. Douyu provides a game purchase function while the audience watches the live stream of famous game players performing the exact game. This strategy of training and attracting more internet celebrities so their traffic can be transferred into real money has become the most significant theory of Chinese online social platforms and e-business websites.

Public Figure
Besides the content creators and product sellers, some public figure either proactive or involuntary as a result to become famous across the internet. For example, Sicong Wang, the son of China’s wealthiest man Jianlin Wang is highly controversial through the internet due to his fortune and outspoken personality and this lead to him obtaining 22 millions followers on Weibo also was placed on the top of “The Most Popular Internet Celebrity in 2015” ranking list.

How to use internet Celebrities in China marketing campaign

Maggie Zhou, the managing director of Alibaba points out, the celebrity marketing is the key to for Australian companies to achieve the success in China market(Evan’s 2016). As a significant part of celebrities, internet celebrity is one of the most powerful weapons for Australian enterprise to meet Chinese clients beside the movie stars, pop singers and TV hosts. Compare with traditional public figures, internet celebrities marketing has a lower cost and a higher conversion rate. It is one of the best precision marketing solutions in China, especially for the small companies and startups. Up to March 2017, there are hundreds of famous oversea enterprises cooperate with Chinese internet celebrities to promote their products, include Microsoft, Samsung, Pizza Hut, and Colgate.

A great example of precision marketing is the new product promotion of Pizza Hut shanghai branch in spring 2017. Pizza Hut cooperates with Afu, a German young man who is famous on Bilibili video website, to promote their new Pizza. Afu is living in Shanghai and married with a Shanghai lady. He uploads videos talking about his life experience in Shanghai and earn more than two hundreds thousands fans on the social media channels. Because of he can speak fluid Chinese with nice ShangHai accent, his fans mostly are Shanghai young people, which is perfectly fit with Pizza Hut’s target market.

As some internet celebrity are actually acting the role of salesmen, their value can be represented by the raising of sales in a short term. Furthermore, compared with superstars, the general price for each advertisement produced by internet celebrity is much lower, which is usually around 1% to 5% of superstar advertising fee. These two characteristic extremely reduce the risks of the promotion campaign. However, it is difficult for a single internet celebrity to attract such high traffic as a superstar and the internet celebrity is hardly to keeping the reputation for years. According to Target China Celebrity Database, although there are a few successful internet celebrities who have been ranking on the top over five years, the most are popular for only one or two years. As a result, the strategy of internet celebrity marketing is totally different with superstar marketing which the keypoint is always selecting a group of internet celebrities for a total of larger traffic, higher conversion rate and cheaper cost. It is vitally important to choose the suitable internet celebrities to fit your industrial, and the campaign needs to be updated at least every half year basing on the new business purposes and the repetition change of the selected internet celebrities.

Similar with superstar endorsement, internet celebrities marking also has the function of improving the image and awareness of a brand. However, not all the internet celebrities are suitable for each enterprise. An inappropriate choice will outcome little and even bring negative effects. Especially for the content creator, who has very strong personality in the public. In addition, To ensure the strategy can work successfully, the advertiser need to fully communicate with the selected internet celebrities, make sure they exactly understand your products or services, so they can develop the correct content.

The selection of social media channels is another important factors need to be considered when designing the campaign. Most western researchers only know Wechat and Weibo which are the most famous in China, however, they are only the tip of the iceberg. Up to the March of 2017, there are more than one hundred popular social media applications and websites in China, most of them have complete the first significant round of venture capital financing and have built their own loyal customers groups. 

As social media marketing is culture based, especially the personalised networking taking a significant position in China, to understand the whole picture of internet celebrity is extremely difficult for western people. Unless you are highly experienced in Chinese social media promotion and internet celebrities marketing, to work with an agency, such like Target China, will save you money and time and achieve better outcomes.

Conclusion

Internet Celebrities has dramatically changed the ebusiness structure in China. Start from the beginning of this century, Chinese online channels experienced several revolutions. Users were sticking on online communities and general video sites now moving to social medias, livestream and barrage video websites. These medias come out a considerable amount of internet celebrities as a background of highly developing in internet technology, unique pop culture background and the rapid economy growing.There are three types of internet celebrities including content creators, product sellers and public figure. The content creators are working on different channels to deliver the visual contents including article and video to their followers. As Chinese audience dislike display advertising, they usually transfer fans to money by stealth advertising. Product sellers started from Taobao owners, then mass produced by Alibaba and other online ebusiness platforms. They are specialising in building good relationships with followers and guiding them to the online shops on livestream. Additionally, some controversial public figures are famous on the internet as well.

Internet celebrities are necessary marketing method for Australian companies to promote the brands and products to China market. Different with traditional stars, to achieve a considerable outcome, multiple internet celebrities will be involved in the campaign. However, to design a successful strategy requiring a highly understanding of Chinese pop culture, and well Chinese communication skills. The best choice of the western enterprise to arrange a campaign is to find an experienced agency such as Target China.

Internet Celebrity is the future of online selling and marketing in China. They are the mediators of business activities, internet traffics and personal relationships which are the major factors of Chinese online business. It can be predicted that internet celebrities will keep the significant position in the Chinese social networking for years unless the Chinese business environment Changing or new technologies appearing.    


Reference:

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