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Large Untapped Potential for Savvy Brands in China

 

The “Digital IQ Index” report by the L2 Think Tank in June recently highlighted the large growth opportunities found in China’s luxury market sector. “Prestige brands can do a mediocre job in every other market and still grow revenues and profits substantially by getting one thing right: China.” In speaking with Bloomberg News, L2 founder and New York professor Scott Galloway discussed the future of e-commerce and the areas of untapped market potential China.

 

By far the largest opportunity for Brands comes from China’s internet user base of 380 million, outnumbering USA and Japanese internet users combined (200 million, 90 million respectively). With around 80 percent of China’s luxury consumers below the age of 45 compared to the USA (30%) and Japan (19%), the statistics show that young internet savvy consumers in China are an e-commerce magnet that has still yet to be fully realised by a majority of western brands in China.

 

Facts & Figures:

·     The size of the e-commerce market has quadrupled since 2006

·     Luxury brands - Physical presence underperformed in comparison to social buzz and sales online

·     Within industries excluding Luxury brands, less than 10 percent are e-commerce enabled

·     There are 745 million mobile phone users in China but only 42 percent of brand websites are mobile-enabled

 

via Jing Daily

 

Filed under  //   brands   china   chinese social media   marketing   social media  

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China Q1 Online Payment Exceeded 212 Billion Yuan | China Internet Watch

China online payment market growth

China Online Payment Market - Q1 2009 to Q1 2010: green line indicates the growth compared to the previous quarter; blue line the year on year growth

According to iResearch, the first quarter of china’s online payment market in 2010 totaled to $212.1 billion yuan (US$31 billion) with an increase of 17.8% compared to Q4 2009.

iResearch estimated online payment industry will continue to maintain the momentum of rapid growth in the field.

Market Leader in China Online Payment

Alibaba Group’s Alibaba has a market share of 47.1% followed by Tenpay from Tencent with 20.4% market share. The other online service providers each has a market share of below 10%.

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Education essential if businesses are to succeed at social media | Social Media IQ

Article By Peter Du Toit at socialmediaiq.co.za

One of the elements of your social media strategy must be education. Yes, how to use the tools but of far greater importance is education on how you need to behave as a business on social networks. There are no shortcuts to this. It’s just something you have to set aside time for and do.

 

 

Over on Google Buzz a few days ago Thomas Morffew Director at Ren Media asked an interesting question:

 

“How would you feel about Brands and Businesses coming into Buzz?”

 

 

The ensuing discussion which resulted in over a 100 comments from the Buzz community was very insightful and illustrates very well what I mean by saying that education is needed for businesses to succeed in using social media.

 

 

 

 

 

Here are some insights.  First lets look at some responses that show what social media users don’t want:
  • I don’t wanna see some stupid company that just promotes itself.
  • I don’t like it when someone follows me who looks like they are just trying to sell something.
  • I’ve only blocked a few folks who were consistently spamming with their current sales and promotional offers – it’s 24/7 DEAL DEAL DEAL and no conversation. I will most certainly block you.
Then take a look at what is viewed as acceptable:
  • I do tend to block what seems like spammers or people with only commercial interest in mind, I’m not completely against brand’s presence here, especially if they are here to LISTEN and ACT upon conversations.
  • I demand interaction. If a newspaper for instance, was posting here, that would be OK if their journalist/blogger was interacting.
  • Companies will really need individual personalities representing them here, much more so than Twitter.
  • If you are the brand I’ll converse with you here in Buzz as a person. I don’t converse with businesses, and only rarely with salesmen (I go to them.)
  • I’d welcome any corporate presence if its Buzz interaction was as timely and interactive as the Google Buzz team.
  • I think that at the end of the day as long as they understand the community and add value to the conversation they will be welcome. Though I for one would rather befriend so and so at such and such a company than the brand itself. I prefer to connect with a person than a brand name even if the person is there solely to represent the brand, at least I know I’m talking with a person and not some anonymous Intern or PR girl with little more than a job to do. That’s the problem with companies and brands on social media, to them it’s a job when it should just be a part of the conversation. Have opinions, be a person, you customers are people, you can be one too.
You can check out the entire conversation here.

 

 

So the message is pretty clear: (and this is not new by the way)  If a business uses these platforms as just another media channel like TV or print for example, they will fail.  Social media participation requires coming out from behind the company logo and engaging with the community you are in.  Yes, that means being more interested than interesting.  It means bringing value.  If you do that you will be building your brand.  Remember people do business with people they like.  Social media is a great place to show that, as a business,  you understand this and that it’s part of your culture.

 

 

So, do you have a plan in place to educate those who will be speaking on behalf of your business in social network communities?

 

Related Topics:
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China’s RenRen Social Network Introduces Social Gaming

renrenThe popular Chinese social networking site RenRen, has seemingly shifted its marketing efforts to social gaming. China’s online social networks have gained tremendous popularity over the years, allowing users to connect with existing friends and meet new people alike. RenRen has the most active users out of all the Chinese social networks and will look to continue to engage its university crowd with more mass-appeal games from outside developers as well as in-house efforts.

RenRen’s shifting marketing focus could be a response to the recent debates of whether Chinese social networks are more for meeting new people or for playing games with existing friends. RenRen’s campaign last year was more focused on real people connecting using RenRen as opposed to this year where its campaign highlights animated animals, vegetables and furniture. Videos of the campaign can be seen here.

RenRen’s interface is similar to Facebook and is popular among students in China. Formerly known as Xianei, its APIs are similar to Facebooks with efforts underway to develop an SDK similar to Facebook as well. Chinese social networks definitely have a need to improve their social gaming efforts, as developers on their platforms are looking to migrate to industries such as the US for better pay offs. RenRen’s API is currently open to 3rd parties with revenue share capped at 56%.

Apart from RenRen, the 3 other top competitors include Kaixin001 for white collar workers, Qzone which attracts young teens and 51.com. RenRen already has a great set of games due to its open platform but continues to focus on in-house gaming efforts. With a stronger focus on social games, we can expect to see more games focused for college kids like RPGs that are already very popular in Asia.

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The NEW “Four P’s” of marketing | {grow}

Place, product, price and promotion.

We all learned these basic marketing principles in college and they still stand up today. But the social web is a true shift in the way we communicate and go to market.  For the first time, mankind has access to real-time, free, instantaneous, two-way, global communication — and the good old marketing mantra needs a little updating.  Here are my thoughts on the NEW Four P’s of social media marketing — People, Presence, Pervasiveness and Publishing.

People

The social web is the first true PEOPLE-driven communication channel.  Everybody’s a video star, a rock star, a broadcaster, an author. Everybody creates, reviews, publishes, and bitches.  Publicly.  Permanently.  We have the opportunity to listen intimately and often. We can tune in to laugh and cry with our customers, wherever they are in the world. The consumer-driven web is the biggest marketing revolution since radio.

Presence

This is different from the old concept of “place.”  The old marketing “place” to sell, market or distribute was a tangible location like a grocery store. We knew where our consumers were … and they’ve probably been there for decades.   Where are they getting their information today?  From a video game?  From a link on a tweet?   From their phone?  From a coupon on their phone automatically sent to them by an RFID/GPS system while they are standing next to your product in the grocery store?

To make it even more complicated, a customer’s source of information may be constantly shifting.  Think of the implications if you choose incorrectly or your competitor moves into an emerging platform more rapidly. Kind of makes you want to go back to newspapers, huh? That’s why you need to develop a presence that can adapt and adjust to wherever consumer attention drags you. It will be fascinating to watch the big brands create a unified and compelling presence across so many platforms.

Pervasiveness

Let’s take a lesson from Twitter to illustrate this key concept. For years, Twitter hasn’t focused on making money. It has focused on DOMINATING  and pervading a consumer space. Why? They know that consumers will have the bandwidth for just one micro-blogging site. Once they devote their emotional equity to one platform it will be extremely difficult to get them to switch. Perhaps impossible. And that’s what Twitter is counting on.

So it might be easy to get folks to taste a new brand of cookie or soft drink, but it will be much more difficult to get them to switch to an unfamiliar communication or marketing channel.  Brand marketers jockeying for precious consumer online attention will have to develop ideas and entertainment concepts that are pervasive and with high emotional switching costs.  Not cheap. Not easy.

Publishing

Five years ago, would you consider a shoe company to be a significant publisher?  Yet Zappos has more than a dozen blogs. I contend the biggest challenge to any marketer may be the publishing of consistently engaging, meaningful content. And increasingly that means cutting through the clutter with entertaining content like puzzles, games, contests and videos. The implications of sustaining an organization’s publishing presence is daunting!

So what’s your take on this?  How are you adjusting to the new P’s?  How are you integrating them with the old ones?

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Internet Advertising Revenues Hit $5.9 Billion in Q1 ’10, Highest First-Quarter Revenue Level On Record

May 13, 2010
Internet Advertising Revenues Hit $5.9 Billion in Q1 ’10, Highest First-Quarter Revenue Level On Record

7.5% Year-Over-Year Increase a Bright Spot in Marketing & Advertising Media

NEW YORK, NY (May 13, 2009) — Internet advertising revenues in the U.S. hit $5.9 billion for the first quarter of 2010, representing a 7.5 percent increase over the same period in 2009, according to the numbers released today by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). This marks the highest first-quarter revenue level ever for the industry.

“The year-over-year growth we are seeing reflects marketers’ confidence in the value and effectiveness of interactive advertising,” said Randall Rothenberg, President and CEO of the IAB. “The Internet, together with explosive technological innovation in devices and platforms, has transformed consumers’ lives, giving them access to entertainment and information however, whenever, and wherever they want it. That’s why the vibrant interactive advertising and marketing industry lends major fuel to the U.S. economy.”

“We are seeing continued signs of an improved economy and interactive advertising market," said David Silverman, PwC Assurance partner.  “The media industry —like the economy as a whole—saw tremendous challenges this past year, and uncertainty about the recovery remains.  However, entering 2010 with such strong Q1 revenues is a sign of the health and vitality of online media, and of marketers’ continuing investment in interactive as a cornerstone of their advertising campaigns.”

 The following chart highlights quarterly ad revenue since 2001; dollar figures are rounded.

About the IAB:
The Interactive Advertising Bureau (IAB) is comprised of more than 460 leading media and technology companies who are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C.  For more information, please visit www.iab.net.

About PricewaterhouseCoopers:
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

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China: More time on Internet than the USA - Thomas Crampton

China

China: More time on Internet than the USA

By thomascrampton May 12, 2010 Post a comment

An interesting report by BCG on China’s Internet, China’s Digital Generations, shows once again the extremely high level of Internet usage by Chinese citizens.

What are people in China doing for 2.7 hours per day? Many of them are using social networks, IM-ing, gaming and chatting in bulletin boards.


Not only are more Chinese people using the Internet but they also use the Internet more than do consum- ers in the major emerging markets of Brazil, Russia, India, and Indonesia—which, together with China, form what we call the BRICI countries.
◊ Digital devices and the Internet are moving to center stage in the lives of China’s digital consumers, with total time spent online averaging 2.7 hours a day in 2009.
◊ This usage rate is the highest among all the BRICI countries and averages 0.4 hours a day more than the average rate in the United States.
◊ As a country, China spent more than 1 billion hours online per day in 2009—double the daily total in the United States. This number will grow to well over 2 billion hours per day by 2015.

Social, historical, and economic factors have shaped a unique set of needs and behaviors among Chinese digital consumers compared with the other BRICI economies.
◊ The most prominent themes are that far more Chinese people use the Internet to communicate and seek en- tertainment than in the other BRICI markets.
◊ For instance, more than 80 percent of Chinese digital consumers use instant messaging (IM), read news on- line, and stream or download music via the Internet. Three-quarters stream video content, and more than 50 percent use search engines and play games online.

Any company committed to engaging Chinese consumers will need to grasp the trends and implications of the country’s Internet-usage patterns.
◊ Understanding the underlying needs and tastes of the different segments of Chinese digital consumers is vital to creating an effective approach to communicating with them.
◊ However well established they may currently be, consumption trends such as e-commerce, online advertis- ing, and social-networking sites are far from realizing their potential.
◊ Many consumer-oriented multinationals in China are operating under outdated assumptions regarding Chi- nese consumers’ media and shopping behaviors. These companies are at grave risk of losing touch with one of the world’s most important growth markets.
◊ It is imperative to act fast, because the shift toward digital media and commerce has already become mainstream—and is gaining momentum at a tremendous rate.

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7 Scientific Ways to Promote Sharing on Facebook

7 Scientific Ways to Promote Sharing on Facebook

Leonardo Da Vinci once wrote, “simplicity is the ultimate sophistication.” Kelly Johnson modernized that philosophy with an alternate twist, KISS, Keep it Simple, Stupid a.k.a. Keep it Short and Simple.

In a social economy where attention is a precious commodity, the ability to strip a social object down to its essence to capture attention has less to do with compacting character counts and more to do with the art and science of packaging and presenting content so that it is immediately compelling, simple to grasp and appreciate and in turn, share across social graphs.

For participants in the socialization of media, an ever-thinning attention span is forcing the rapid evolution of our ability to multitask – albeit at shallow depths.  Cognition is thereby stimulated by relevance, simplicity, and in social networks, the objects and content screened and shared by peers.

In Twitter, we learned that there is indeed an art to ReTweets and to increase the likelihood for tweets to spread, the words and times we choose dictate their lifespan and ultimately, fate. To examine social objects and how they affect sharing in Facebook, I once again reached out to my friend and social scientist, Dan Zarrella.

Zarrella studied Facebook data for quite some time and observed that simplicity, among other interesting linguistic and timed attributes, is the key to triggering word of mouth.

Readability’s Effects on Sharing in Facebook

With a view from the top, we can see that Facebook sharing is enhanced by simple language and thus modernizes the old adage KISS to now represent Keep it Simple and “Shareable.”

In his research, Zarrella examined article titles and matched the propensity for sharing with reading grade levels. The results were revealing to say the least. Essentially, the higher the share rates, the lower the reading grade level, with notable spikes resonating at fifth and ninth grades.

Numerical Value

For those looking to capitalize on propagating your content in Facebook, although the same could be true in other online mediums, consider the addition of digits to your titles.

Yes, there’s a reason why we as content consumers, are duped into reading and distributing social objects with numerical digits in the headline. For example, the title of this article is intentional “7 Scientific Ways to Promote Sharing on Facebook.“  Social science now shows that there’s a reason why articles with similar titles consistently perform well.

In Facebook, titles with digits (1-9) outperform text only titles. As much as I’d like to see more originality in and creativity in the school of compelling headline writing, the numbers add up to make a strong case for considering alternatives.

Carpe Diem

Similar to Twitter, there are days and times where we as content consumers transform into curators by sharing relevant content objects.

Whereas on Twitter, RT’s occur most often on Monday and Friday, Facebook users seem most likely to share on Saturdays and Sundays. It’s important to note here that while sharing is notably higher on the weekend, the volume of URLs introduced into Facebook are higher during weekdays, most notably Wednesdays and Fridays.  However, as Zarrella observed, stories published on the weekends tended to be shared on Facebook on average, more than those published during the week. This could be due in part to the fact that more than half of businesses in the U.S. block Facebook and other social networks in the workplace. But then again, if this were true, the science of retweets would also prove otherwise.

Personally, I’ve experimented with this over the last couple of years. Indeed, content introduced on Twitter, tends to spark greater reactions during the week, with Monday and Wednesday and Friday in particular. However, when I withhold the same object and introduce it to my social graph in Facebook on Saturday morning, responses are far more notable.

What Are Words For, When No One Listens Anymore

The act of sharing implies so much more than curation. When we “Like” or share content in Facebook, we are essentially endorsing it and as such, recommending it to friends and followers to act and react.

The words we intentionally or unintentionally surround the objects we share result in either relevance or irrelevance.

While current events play a role defining the most shareable content, truly, experiential words such as “why,” “most,” “world,” and “how” trigger the greatest volume of shares in aggregate. However, when viewing the activity of words in isolation of sharing events, “you” and “video” prove extremely noteworthy.

When words aren’t working for you, they’re working against you. As documented, certain words serve as inhibitors to sharing, closing the attention aperture before content has an opportunity to breathe. According to Zarrella’s research, the least shareable words include expressions I would not have otherwise guessed, including “review,” “poll,” and “social.” Among the least shareable words however, the following terms are introduced with greater frequency, however do not engender the desired outcome, “time,” “Twitter,” and “live.”

Action Speaks Louder Than Words

Part-of-speech also lends to the shareability of social object. Much like Tweets or any other update in the “statusphere,” brevity serves as a framework for what we introduce into the stream.

Seems that we have proof that actions speak louder than words, or at the very least, verbs as action words appear to motivate sharing with important nouns following in second. As to be expected, there are a greater number of nouns introduced into updates, however, it is verbs that imply action and therefore the right verbs compel us to share. Adjectives and adverbs appear to be among the least shared parts-of-speech in Facebook as our attention spans are trained to look beyond promotion or hyperbole.

The Glass is Half Full

The effect of linguistic content and the tone of updates and objects introduced in Facebook say everything about you. At the same time, determine whether someone reads, ignores, and more importantly, shares what they encounter.

Negative updates are among the least shared objects with positive sentiment and words sitting on the opposite end, prove to be among the most shared. It’s interesting to note that a greater number of negative updates are introduced into NewsFeeds than those that are positive. I suppose it’s to be expected, but sex is at the very top of the list and also among the least often introduced into social feeds. I’m also pleasantly surprised and encouraged to see learning, media, work and constructive in the company of shareable linguistic performers.

There are times where the content we introduce into the activity feeds of those in our social graph is intended to inspire sharing across the graphs of friends and friends of friends. Consider the science and then craft the update to employ it to your benefit – and hopefully the benefit of others.

Antione de Saint Exupéry observed, “Perfection is reached not when there is nothing left to add, but when there is nothing left to take away.”

Please consider reading my new book, Engage!


Get Putting the Public Back in Public Relations and The Conversation Prism:



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