Stretching and remoulding the traditional 4-Ps of marketing in China

In the 13 years since the Skinny was founded, there has been a fascinating evolution in the way brands are successfully marketed in China. In the early 2010s, many foreign brands just needed to be on shelves to sell - their origin holding enough gravitas to lure consumers in. Then they just needed to be on Tmall. Some didn’t even need to be in the mainland; Chinese students, tourists and other residents shifted slews of products through the Daigou channels. Messaging spoke of functional benefits and implied the status they would bring, but little else.

Most reputable international brands had secured a foothold by the middle of the decade, alongside countless hungry and cashed-up domestic brands. All wanted a piece of the world’s most populous and fastest growing consumer market. That intense competition – alongside a rapidly maturing Chinese consumer – helped transform China from a relatively primitive market to one of the world’s most sophisticated and dynamic.

After a slow start on the Internet, China’s love of gadgets, aided by its under-developed bricks & mortar infrastructure, saw its digital adoption leapfrog every other nation. This encouraged new, innovative ways of reaching Chinese consumers online, and through integrated online and offline initiatives.

China’s ‘Super-Apps’ like WeChat boasted suites of features and data for brands that apps in the West could only dream of. It even saw tech giants such as Amazon, Apple, Meta and Elon Musk looking to China for inspiration.

The evolution of the consumer ecosystem continued at speed, seeing China lead the world in ecommerce, social commerce, integrated payments and livestreaming. Early-adopting brands embraced each new iteration of tech, and many followed soon after.

It became so easy to sell lots of stuff by simply paying a livestreamer or KOL, that almost every brand was doing it. But staying true to supply & demand dynamics, the rising call from brands for KOLs and popular livestreamers pushed the cost up over 50% in a year on some platforms.

These soaring costs have seen these marketing tactics increasingly unsustainable, forcing brands to implement other strategies such as owned-channels, loyalty initiatives and even bringing in good old fashioned CEOs to peddle their wares on livestreams. Brands can even build up their own livestreamers with personal ads at metro stations.

Despite online platforms playing a vital part of any China marketing mix, it remains a fiercely crowded space which is seeing more brands go analogue for viral initiatives. Some of the most interesting marketing innovations we’re now seeing are happening in the physical world, as brands look for ways to stand out that are easier on the P&L.

Product design is becoming a powerful marketing tool – which some would say, can be at the expense of consumers’ pragmatic needs. Nevertheless, unique and iconic design goes viral and can drive sales as a collectable.

Despite many Chinese consumers tightening their belts, there’s still plenty of interest in exclusive or limited edition products. Whether or not they are purchasing them, aspirational products will often draw consumers in and get them talking. That’s why brands like Jordan release $1,000 sneakers.

Design and exclusivity aren’t restricted to the products and packaging themselves. Brands are increasingly curating stunning retail experiences that are luring in consumers, and providing plenty of selfie fodder to share on social media. 

Brands are also getting more creative with their advertising media, rather than investing in traditional and digital advertising and KOLs, brands are using everything from hanging bed sheets to sewn-in labels to win the hearts of consumers.

Stretching and remoulding the 4-Ps beyond the formulaic tactics can help brands stand out amongst the sea of competitors all vying for mindshare. It is usually much more cost effective and fun to work on, so why wouldn’t you at least have a crack? Contact China Skinny for some considered but creative ideas to help move the dial.