Western brands looking to enter the Chinese market through digital marketing will run into some difficulties that other organizations aren’t likely to encounter.
There are plenty of opportunities in China’s digital marketing space, but they come with challenges and roadblocks too.
Targeting a new audience is always risky and especially so in China, where expectations differ drastically from western consumers.
While brands are finding themselves increasingly competitive in the Chinese market, a survey carried out by McKinsey showed that both homegrown and foreign brands can thrive if they get to know what consumers there want.
However, this is more difficult for western brands of course.
The difference in culture and social norms towards the digital areas are stark and require companies to adopt new philosophies if they want to be successful.
That’s why we’ve put together this list of the most common problems facing western brands in China’s digital landscape today and suggestions on how to overcome them.
Why it is difficult to attract a Chinese audience?
It can be difficult for western businesses to target Chinese customers, especially B2C.
They have
- A higher willingness to pay,
- Greater sensitivity towards issues such as the trustworthiness of information sources,
- An emphasis on personal relationships and more.
This can make it difficult for western businesses targeting Chinese customers who don’t understand these concepts or share them, much less incorporate them into marketing strategies.
If a brand tries to cater only to what they think is best, they may miss out on great opportunities with other consumers who will continue to see your brand as outsiders no matter how hard you try.
The importance of localizing your content
Before you even decide to target the Chinese market, you need to figure out where your potential customers hang out and find ways to connect with them.
Like any other culture, social norms and values influence how Chinese consumers buy stuff online and offline.
They tend not to trust strangers, particularly foreign ones, especially if you make some stereotypical mistakes in your promotions.
So when it comes time for them to engage with your brand, it better be quality content that keeps their attention from start to finish…or else risk getting lost in a sea of noise.
As if it weren’t difficult enough as is!
Cultural & lingual differences
So, before even thinking about implementing a social media strategy, western brands must be able to communicate clearly with their Chinese consumers.
China has a history of civilization of thousands of years.
A deep understanding of Chinese culture can be challenging for foreign companies.
Not only because of the complex language system but also because metaphors frequently appear in communication.
If you’re not willing to understand Chinese, then it’s unlikely that a social media program will be effective.
While some companies may emphasize translation, there are subtitles within cultural concepts and expressions that simply can’t be expressed in another language.
Combine online and offline efforts
To do business in China, where consumer markets are changing radically, companies must understand how to serve a growing population with new social and technological needs.
Thanks to China’s highly tech-savvy market, you have an opportunity to put a creative spin on your marketing efforts.
We believe Chinese consumers are ready and willing to engage with new content, no matter where it comes from.
You can create your own unique brand story via PR, native advertising or influencer outreach—just make sure all of your online activities reinforce your offline ones.
After all, as an overseas brand operating in China, you don’t have unlimited funds for marketing campaigns.
By coming up with one cohesive strategy, you’ll be able to take advantage of every channel at your disposal.
No exploitation of consumers’ personal information.
If a western brand is planning on entering the Chinese market, it will have to be cautious when it comes to privacy and make sure that the personal information of consumers isn’t misused.
A Euromonitor survey conducted in 2021 found that 45% of respondents in China shared their data for personalized offers and deals.
For comparison, only 30% of customers do so in France, Germany, and the United Kingdom.
However, recent regulatory action in China, including new data protection policies that took effect in 2021, has changed the way many companies handle consumer data.
They may need to renew their focus on delivering the right value for consumers while at the same time complying with regulations.
Therefore, before any western company establishes a presence on Chinese Internet platforms, they should consult with local laws.
Failure to do so may result in hefty fines if there is a privacy breach or data leak.
Conclusion
Despite potential difficulties, a growing number of western companies have successfully implemented their digital strategies in China.
New media such as Weibo and WeChat have become essential channels for foreign companies to reach and interact with Chinese customers.
From there, businesses can engage consumers across channels from smartphones, tablets and desktops as well as TV screens.
Regardless of how far along a company is on its own journey towards success in China, it is clear that understanding local customer preferences is a crucial first step that all firms should take.
Do you need help with your localized digital marketing efforts in China? Contact us to learn more about how we can help your business succeed!
