Chinese or English? That is the Question
An article in the Sydney Morning Herald last week highlighted some common misnomers about localisation and translation for China: After researching in China, an Australian vitamin brand found that their Mandarin-speaking Chief Science Officer would be most compelling speaking English in the brand's promotional videos for the Mainland market.
For some, it may be a strange concept that communicating to the Chinese target market in Chinese can hurt sales. But it comes down to authenticity. If you are trying to promote yourself as an Australian brand, or from another English-speaking country, you appear to be the real thing if your communications are in English.
Similarly with packaging. If a brand's labels are translated in Chinese, many consumers are less likely to associate the product with the positive attributes around that country of origin and will question how the Chinese supply chain has been involved. The less similar it looks to the same products in the supermarket of an item's home country, the less Chinese consumers will trust it.
Notwithstanding, there are countless touch points where translating into Chinese is advantageous. Even though over 300 million claim to have English skills, it is rudimentary for many. And even fluent English speakers will instinctively turn to Chinese and be more comfortable in their native tongue. Chinese language is often preferred in the details, such as searching for facts on a website, or reading a visitor guide on holiday.
Whilst some videos look more authentic with spoken English and Chinese subtitles, there are many examples where videos in Chinese or with a Chinese speaker translating on the fly are hugely successful, such as Tmall's streaming video service.
Getting the mix of English and Chinese language right, and in the correct places is just the start - localisation should be much more than just translating messaging word for word. Chinese consumers often have completely different buying behaviour and motivations which is best reflected in positioning and communications. And those motivations regularly differ from region to region. Here are this week's news and highlights for China:
Chinese Consumers
Mandarin? No Thanks, We're Chinese: Brand videos, packaging and other communications in English often appear much more authentic to Chinese consumers in their research and selection of imported products.
China Growth Steadies on Consumer, Dimming Stimulus Expectations: China's economy grew 6.7% in Q2 from a year ago, slightly above expectations of 6.6%. Consumption contributed 73.4% to the growth in the first half, up from about 60% a year earlier, helped by retail growth of 10.6% ahead of estimates of 9.9%. Industrial production growth and profitability also exceeded forecasts.
Changing Face Of Chinese Consumer Is Changing China and Beyond: Two-thirds of consumers say that shopping with family is the best way to spend time with them, 21 percentage points more than three years ago according to McKinsey. A weekend outing to the mall allows Mum, Dad, the only child and grandparents to combine shopping, dining, and entertainment experiences for the family.
Chinese Consumers Set the Trend Online: Whereas the US and Britain used to lead the world for retail trends, Chinese are now setting the pace in terms of mobile shopping and the importance of social media in shopping decisions according to PwC.
Digital China
Why Tencent’s Deals With Publicis and WPP are Good for Global Advertisers: Tencent has barely scratched the surface with the marketing potential of WeChat – both in how it utilizes big data and the omnipresent nature of the app. Tencent's partnership deals with WPP and Publicis could help change that.
With Live Streaming, US Brands Bring July 4th To China: U.S. sports nutrition retailer GNC took 122,000 Chinese consumers on a tour of one its stores near its headquarters in Pittsburgh through live streaming through Tmall's mobile app. Macy’s had close to 100,000 viewers on a "private" walk-through of its flagship store on 34th Street in NYC issuing e-coupons for products shown on its live stream, which viewers could use to purchase on Tmall. It also allowed viewers to interact by playing a "name the brand" game.
Apple Still the Most Popular Smartphone Brand Among Chinese Consumers: China's biggest mobile operator, China Mobile, has published a report on its 800 million user base, showing Apple is the most popular brand account for 15% of its subscribers - or 120 million users. Xiaomi, Huawei and Samsung tie for second spot on 9% each. Vivo comes in as the fastest-growing smartphone manufacturer due to its thriving offline retail sales channels in smaller cities.
Food & Beverage
More wine, More Frequently, Shows Chinese Consumer Survey: 48 million of China's urban upper middle class drink wine at least twice a year, up from 38 million in 2014 according to Wine Intelligence. 35% drink imported wine at least once a month, up from 23% in 2015. More consumers are buying wines priced ¥200-¥299 ($30-$45) to drink at home.
Chinese Chocolate Market Hit by Price Hikes and Health Concerns: 67% of chocolate eaters in China limit their consumption as they believe it will cause weight gain, however 44% perceive dark chocolate as good for health. The top-9 foreign chocolate brands collectively account for 80% of China's $4.1 billion chocolate market according to Mintel.
Health & Beauty
Chinese Consumers Turn to Health and Wellness Products as Living Standards Rise: 72% of Chinese consider exercise and 74% staying a proper weight important in maintaining a healthy lifestyle, while 86% believe healthy eating is important according to NMI. 85% think stores should carry both natural and 79% organic food & beverages. In the 30 days leading up to the survey, 59% of respondents had taken vitamins/minerals and 28% Traditional Chinese Medicine/OTC.
Over 70% China Cosmetics Searches Online are Non-Brand Terms: Makeup-related searches on Baidu grew 93% in 12 months, with desktop searches growing faster than mobile. Over 70% of searches were non-brand keywords, the majority of which weren't related to products, but more focused on solutions and how-to guides.
Entertainment
China’s Strange Trump Love: Chinese consumers may loathe Trump for using them as theatrical punching bags, but they also love him as a novelty and as entertainment.
Finance
The Trilemma of China's Capital Outflow: China is unable to have a stable exchange rate, free capital movement and independent monetary policy simultaneously, all contributing to its capital outflow.
Environment
Price of Cleaner Air in China? $213 for Five Years, Study Shows: Chinese consumers are spending about $213 over five years on average to make their air cleaner, according to their air purifier buying habits in 81 Chinese cities over seven years according to a University of Chicago and Colorado study.That's the Skinny for the week! See previous newsletters here. Contact China Skinny for marketing, research and digital advice and implementation.
