This blog was written in collaboration with one of LAT’s regular Meetup participants, Leith Wan, a Chinese Marketing Professional who recently made Vancouver his home.
China’s vast population and economic growth has made it a magnet for companies wishing to have a share of this important market. But expanding in China requires a brand strategy that is well adapted and differs vastly from North American and European markets. Though many brands fail to adapt to the Chinese market, there are several North American companies that have created a successful Chinese brand identity
Here are 5 tips to help your brand succeed in the Chinese market:
1) Adapt to the Culture
2) Stay Away from Politics
Becoming embroiled in political controversy has a negative impact on brands. Politics is a sensitive topic in China, and avoiding the subject all together is the safest way of protecting your brand identity in the country.
3) Define your Market Geographically
A clearly defined market focus allows brands to develop a strategy specifically adapted to the market.
4) Learn from Your Competitors
Direct competitors can be your most valuable guides. Learn from the brands that are already operating in your target market. If they’re doing well, what are they doing right? If they’re not, what are they doing wrong?
Understanding how your competitors are performing in China will provide you with valuable insights. Market research is crucial to help you avoid costly mistakes and define your own position within China.
The previously mentioned Russell Brewing is the first Canadian beer brand to set foot in this competitive Chinese industry. Since it is in unfamiliar territory, researching the top brands in the Chinese beer market will give Russell Brewing the tools to launch an effective brand strategy.
5) Stay in Touch with the Community
There’s no doubt that real world experience is a valuable asset. Amidst all the market reports and analytics, find the time to step outside your office and meet with people in your company and within your community.
Leith had the opportunity to work with Horber’s British shareholder to formulate business strategies. Horber is a leading Western food-processing brand in Beijing. Prior to being a shareholder, the man Leith met with was hired as a technician for the company. During this time he visited nearly all the hotels, restaurants, and fast food chains in Beijing and established a good reputation amongst a network of chefs. This man later became a recipe expert for Horber, and eventually became a shareholder of the company. Even now, he still prefers to work like he did in the past; it’s hard to find him in the office. As he says, “my office is in the kitchen and factory.”
The fundamentals of branding in China are no different than any other market; businesses must stay focused on their goals and make a long-term effort. Just as Rome was not built in a day, establishing a solid brand identity in China takes time. Though it may not instantly turn a profit, the long-term benefits are sure to be worth the investment.