Should I Use Celebrity Endorsers in China?
In a country where more than 500 new products launch every day, celebrities can help your brand get noticed in China. They can also give your products credibility, when many other goods go untrusted.
Chinese have long looked to the voice of a few to reinforce their decisions. A little over a generation ago, framed portraits of Chairman Mao hung in many homes where residents studied the leader's quotations in their Little Red Book. Nowadays, residents look to video downloads and social media accounts of their idols on Xiaomi smartphones.
Chinese tennis star Li Na became the world's second highest paid female athlete in 2011 after winning just one major tournament, as brands swarmed for the positive association in China. A Yao Ming-led campaign to stop the slaughtering of sharks helped sink demand for shark fin soup 82% in a couple of years. Tasmania's Lavender Bears became an overnight sensation after celebrity Zhang Xinyu posted pictures on social media, and actress Yao Chen's endorsement of New Zealand and subsequent wedding there, helped the country become one of the most aspirational destinations for Chinese tourists.
Local celebrities aren't the only ones with sway in China. Louis Vuitton invested $80 million in a Korean artist management agency last year, given K-Pop's influence in China. When Kobe Bryant visited China, 15,000 fans were already at the venue seven hours before his scheduled appearance.
David Beckham is another celebrity who is worshipped in China, further fuelled by his Chinese tattoo. So it's no surprise that he is cashing in, launching a line of Beckham-branded products in China. He has some catching up to do - David Bickham inflatable adult dolls have been selling on Taobao for some time now.
For products without a huge budget to attract A-list celebrity associations, all is not lost. Chinese consumers are becoming more and more sophisticated and will often see through such endorsements, and smarter marketing campaigns will resonate more than those who've just thrown a lot of cash at a famous person.
Many of the greatest celebrity endorsement success stories happened over Weibo, spreading like wildfire to the tens of millions. But with consumers sidelining Weibo for the less-viral WeChat, the celeb multiplier-effect has lost some of its mojo.
Whether you use celebrities or not to promote your wares in China, like anything, it will be greatly enhanced with some insights-based tactics and creativity. We hope you enjoy this week's Skinny.
Chinese Consumers
How David Beckham Plans to Become an Even Bigger Star in China: Beckham-branded products such as sportswear, footwear, casual wear, high-tech and skincare will be available in China this year in partnership with HK-based Global Brands Group. He may be playing catchup, with David 'Bickham' blow-up dolls are already being sold on Taobao for ¥480 ($77).
Watch OK Go's Crazy Commercial for a Chinese Furniture Store: Chinese furniture retailer Red Star Macalline has enlisted Grammy Award winning American alternative rock band OK Go for its latest ad - another high standard commercial to come out of China.
Internet, Social Media & Mobile
Marketers in China Lag Behind Consumer Mobile Adoption: Mobile has completely shifted expectations with consumers now wanting to get anything they need immediately, in context. Chinese consumers average mobile expectation score of 62 is much higher the 39 in U.S. according to Forrester research.
WeChat Tests Out Banner Ads and Promoted App Installs in Article View: Readers of WeChat articles are likely to see more ads, with WeChat testing banner ads on the service with promoters able to select from a list of categories to make their ad relevant.
Food & Beverage
COFCO Adjusts Fine Wine Message to Target ‘Mass Consumers’ at China Food and Drinks Fair: State-owned food and drinks giant COFCO showed 100 ‘accessible, reliable and good value’ ¥80-¥200 ($13-$32) wines from nearly 20 international producers to the China Food and Drinks Fair in Chengdu last week, amid a period of market adjustment.
Paying the Price For Rice: Chinese experts are claiming that local rice is just as good as the Japanese stuff, yet Chinese are prepared to pay up to sixty times as much for the safe, imported alternative. Chinese brought in 160 tons of Japanese rice in 2014, roughly triple the 2013 figure.
Disney in Fruit e-Retail First: Disney has recognised the growing importance of online food and beverage sales in China through its first partnership with an online seller of fresh produce. The company has teamed up with Fruitday to offer Chinese consumers Cinderella-themed oranges online as part of the movie promotions.
Chinese Tourists
Chinese Tourists Shun Package Trips in Favour of Independent Travel: 71% of China's 109 million outbound tourists travelled independently in 2014, versus 65% in 2013 - an increase of 13 million tourists overall according to Qyer.com. Europe was the 'favourite' destination that 29% of independent travellers want to visit, with the U.S. at 10%. Women accounted for 62% of overseas travellers overall last year.
Report from IHG Unveils Scale of China Outbound Opportunity: IHG and Oxford Economics research found 62% of outbound Chinese will be leisure travellers by 2023. Over 85% will be visiting major global cities, accounting for 92.5% of spending. The study forecasts that Hong Kong and Macau will account for almost half of all spending, although they may not have factored in the recent dive in spending in the two regions.
Airlines Unveil New Deals, Services: Five new start-up and low-cost carriers entered China last year with new Boeing planes as more airlines compete for the lucrative Chinese tourist market. Delta is trying to appeal to Chinese needs, becoming the first U.S. airline letting Chinese travellers use Alipay when booking flights on their website.
Health
Alibaba, Other e-Retailers May Foray into Rx Drugs in China: The China Food and Drug Administration could approve Internet sales of prescription drugs by the end of the year breaking Chinese hospital's virtual monopoly of China's $149 billion prescription drug market.
Education
Xbox Boasts its Education Function: Xbox has teamed up with education provider New Oriental to develop preschool education products. The tools will help children aged 2-8 learn English in an entertaining way, as many Chinese parents place focus on education in purchases for their children. China's preschool education market is valued at around ¥100 billion ($16.1 billion) a year.
Investments
Alibaba-Affiliated Money Market Fund Yu’ebao Users Hit 185 Million For 2014: 185 million Chinese were using Yu'ebao by the end of 2014, 430% more than 2013. After shrinking last autumn, the fund's asset base bounced back to grow 200% from a year earlier to ¥579 billion ($93 billion).
China Relaxes Mortgage Rules for Second Home Buyers: To help kick some life into China's slumping house market, the Government has dropped downpayment levels for general second home buyers to 40% from the current 60 to 70%.
Auto
Tesla to Localize Production in China in 3 Years: Tesla Motors plans to localize production and engineering in China as soon as 2017. The company is still committed to China after having excessive stock due to speculators and scalpers misleading the company about "extremely high" demand.
That's the Skinny for the week! See previous newsletters here. Contact China Skinny for marketing, research and digital advice and implementation.
