Internet in China 

CNNIC (China Internet Network Information Center) has just published today its 25th report on the development of Internet in China (only available in Chinese for now).

At the end of dec 2009, the online population in China had reached 384 million netizens. The adoption rate is now 28.9% of the Chinese population. The number of mobile users netizens reached 223 millions of people  (+120 millions vs 2008) or 60.8% of netizens.

This huge increase is partly due to 3G mobile phones launch in China since last year. (source : CNNIC/BNP Paribas Atelier Asie)

 

China's Social Networks Map by ZeroDegrees

China's Social Networks Map by ZeroDegrees

 

What are the key factors to successfully lead a Social Media strategy in China ? How do you measure success?

 

In a country where 360 millions people surfs on the Internet, it is certainly worth asking these questions. If you are reading this blog, chances are you are at least on the right path for getting some answers. The title is just a hook of course, the real question is :

 

How to lead a successful strategy on sns in China ? – Part I

 

It is difficult to talk companies and brands into Social Media, whether they are conservative or not.

Why? Social Media Marketing (SMM) is a relatively newly used medium for marketers especially in China where they face a general lack of transparency and a tremendous growth of the Internet population. Although we all agree there is something “out there”, it is difficult to find the right model, define KPIs, execute and get a good return on investment.

Whether you already started some social campaigns or just thinking about it, you will encounter a lot of obstacles but the reward might be worth it.

 

Here are 6 big mistakes that keep on ruining social media strategies :

 

Mistake # 1 : Ignore it

The recent statistics on sns population in China published on nov 11th by CNNIC show the following (full article on web2asia.com) :

 

By the end of 2009, China will reach 124 million users of online social networks.

The vast majority of users has accounts on multiple networks – on average 2.78

More than half of SNS users (52.6%) are aged 20-29, which is significantly higher than the average 22.8% of Internet users in that age group.

More than half of Chinese users spend around 1 hour on SNSs, 22.6% spend up to 2 hours per day and 12.8% are logged on for more than 2 hours.

 

So basically, chances are :

1. People are talking about you Instead of letting people talk about you without you, you should go there and talk with them. This will not only help you monitor your branding and message, but this will certainly help you get a better reflection on how people perceive you.

or 2. People are not talking about you. Well they should. This is a unique opportunity to create/position your brand in an effective way. The great thing about having little awareness is that there is plenty of room to say absolutely what you want and brand yourself with more freedom than you are able to once your reputation is built.

 

 

Mistake # 2. Underestimate the investment

Costs

Just because opening a profile on a social network is free does not mean there is a cheap way to lead a good social media strategy. Think about it : the power of social media is that it enables you to reach your targeted customers (current and future) very accurately. Even if this is China, good things come at a price.  It is however a cost effective, long term strategy, requiring at the beginning some investment, but in the long term the costs remain the same more or less whereas your influence keep on growing.  It is also an excellent complement for PR, market research and advertising operations.

 

Resources

Underestimate the power of content : as I wrote in a recent post, quality brings quantity.  The content is the Champagne you bring to a party : original, relevant and entertaining articles, videos, gifts and contests. Anything keeping the people interested in you rather than in your competitor or another distraction.

The Mango case shows that despite their move to social networks Xiaonei, Baidu, Haibao and others, too little effort was made to provide and update content. 

If your company is not big enough to allocate a budget for hiring an in-house social media manager, it is best to have a dedicated staff and contact to monitor campaigns together with the agency in charge of your account.

 

 

Mistake # 3. Own the conversation

 

Most people tend to forget the word “Social” in “Social Media”. Social means living together in organized groups or similar close aggregates, seeking out or enjoying the company of others for convivial activities. The common mistake brands make on social media, be it forums or blogs, is crash in and start a monologue – just like traditional PR sending out press release.

 

We see it very clearly with the Levis Blog example : a blog talking about Levis and nothing else.  The Cartier case study  is also a good example for the don’ts : no benefit, no conversation, no activity, no technical maintainance.

 

As I described in the Social Media Love theory, the ideal relationship between a brand and its customer is positive and emotional. Therefore, your circle of influence is meeting another circle (people) and the interaction between the two are creating a new space : your unique relationship.

 

To be continued …

 

e commerce china
 
 
Brian Clarke wrote about Google in Authority rules  : “People respond to and follow important people more than others. And Google ranks important pages and sites higher than others.”
 
Social networks are now the new referrers of authority and brands are fighting to get these networks attention and even use mimetism. Why?  Just because of the very simple question :
Who are you going to listen to when you buy something?
 
A. The friendly yet unknown woman/man/persona in the ad
B. Your friend, family or any person with similar interests
 
Something tells me most of us will go with B, meaning we are somehow each other special “Google”.
 
Let’s talk about growing trends and Internet facts in China :
x Boom of the Internet population : by the end of September 2009, Chinese Internet users had reached 360 millions (CNNIC)
x Growth of online shopping : online shopping transactions were worth 46.7 billion yuan (US$6.8 billion) in China in the first quarter, nearly twice as much as a year earlier, among which over three-quarters of that transaction value occurred among consumers on Taobao (iResearch)
x Growth of social networks along with a crave for participating – voting, acting, chosing.
 
So it is only a matter of time until we see more and more models emerging from these trends.
China’s Alibaba understands that very well : more engagement = more time spent on site = more $
 

According to the press release, “Alibaba is crafting social-networking platforms specifically to complement two of its core operations. The beta version of a Web site with Facebook-style applications and a Twitter-style feed is being grafted onto Taobao.com, Alibaba’s auction and retail Web site, a spokeswoman said. A more professional platform that the spokeswoman likened to LinkedIn is being added to Alibaba.com, the group’s business-to-business e-commerce operation.”

 

Taobao or the Gargantua of the E-Commerce

Taobao or the Gargantua of the E-Commerce

 
The platform, called Taojianghu, is designed by Taobao and supposed to encourage users to form groups and share their interests – in Taobao products that is. 
 
Really, will adding some Facebook apps and tweet some stuff about products be really effective? How can we know when Taobao has volume (120 million registered users reported at the end of the first quarter, more than one-third of China’s total number of people online*) and a certain monopoly when it comes to e-commerce in China ?
Are we facing an Authoritarian Socialite?
 
The thing I find most laughable is that both Facebook and Twitter are blocked here, undesired, but a giant like Alibaba is still getting “inspiration” from them…
Legitimacy anyone?



Sources

* IResearch
12
 
 
Name-dropping, as in “using the name of someone famous or popular to let other people know you are yourself popular and have friends” is a tacky practice, especially when not done properly. By properly I mean knowing the person you are talking about and whose name you are using in an effort to promote yourself or add value to your opinion.
 
Lately I have been meeting with a lot of agencies and professional from the digital industry in China and I have noticed a really hot trend among these fellows : the “social media” name-dropping. Have you noticed too?
 
You get to talk with anyone involved in the internet business and then at some point you hear “Yeah, we do social media too”. I have the feeling most of them are just saying it for the sake of not feeling leftout in the digital game – on both sides, agencies and brands.
 
I’m like “Really? What do you do?”. Most times I get a “We go on Chinese social networks sites, blabla”. But it is no long before the conversation dries up.
 
So, before I typed the term “social media” into Google trends, I had a slight idea about how would look the graph.
 
 

Picture1

 
As we can see, there’s a lot of talk but who can walk the walk?
And who can moon-walk?
 
computer-thrown-out-a-window

 

 
This weekend I went out in a happy socializing mood and inevitably, the question popped up
“What do you do in China?”
 
It’s funny how most people ask you “in China” as if what you do is only relevant as long as you do it here…Anyway I gave my usual and vague answer ” I work in the Web”.
The girl opened her eyes wide and said 
“Can you ask them to bring back Facebook?”
 
Well, sure. As a matter of fact, I am on my way to a little chat with the Politic Bureau see if I can pull some strings and ask them “C’mon, you know, we just want to update our status”.
 
Since Facebook was banned early in July this year, only 14 000 out of the 1 million monthly active users remain according to Facebook Global Monitor. The report does not mention the impact this has on us, survivors :
 
x We can’t randomly update status, tag/comment anymore to remind people on the other side of the world we still exist.
x We can’t upload party pictures to prove our relatives we are having so much fun away from them.
x Now we have to ask people what’s new in their life instead of just checking their profile.
x I can’t know what city should I live in or what would be my ghetto name anymore – this probably increased the productivity of foreign staff working in China.
x Most seriously lots of businesses like restaurants, clubs and hotels were using it to promote their events. How do they do now?
 
The web 2.0 situation is frustrating here : I can’t say how many times a day I come accross a blog or a website, an author and the guy is like “follow me on Twitter” “add me on Facebook” and I feel like a loser uninvited to parties – something I never felt of course in the real life.
Or maybe it is blocked

Or maybe it is blocked

 
But why is Facebook banned in China?
 
x Insight 1 : Politics
 
As a group supporting political activism in Xinjiang appeared on Facebook, the government took sanction against the social network. According to article, Chinese netizens “agreed that Facebook should be punished for that” – nationalism is indeed very strong among Chinese Y generation.
 
What could have been done is ask Facebook to block such groups in China, just like Google was asked to filter results if it wanted to enter the market – but Google generates money as Facebook still struggle to find a long term viable business model so that leads me to :
 
x Insight 2 : Politics + Economic
 
What is the risk for a particpative foreign media/website/business with a popular concept in China ?
They are most probably very welcomed at first, then copied before being banned or blocked. They educate the market before their audience goes to local competitors who do it a lot better because of their better understanding and sometimes the support of the government.
As major foreign players cannot really play without China, they all expose themselves and face the same issue : Yahoo vs Alibaba, Ebay vs Taobao, Google vs Baidu…
This applies to all online models except micro-blogging which is not welcomed no matter what as we’ve seen with the blocking of popular micro blogging site Fanfou (back to theory #1). So basically in this counter-creative environment, foreign models are just used to leverage local ones.
 
What to do? For companies, I’d just say : Who might benefit from the crime? That’s your Achille tendon. Make sure you work with people, Chinese and foreigners, who have experience and a deep understanding of both the country and market. The human factor is the key.
What about you, lonely foreigner facing the Great Firewall ? Get a VPN. Move. Or stop complaining about it.
 
Peace x
Sources
 
 
 

 

Social Media Love Theory by BuzzandtheCity

Social Media Love Theory by BuzzandtheCity

 

 

Last night in a beautiful sunday dusk, I shared a few martinis with a good friend of mine who was telling me how much in love he was with this girl.

The thing with people in love : they feel the need to justify and explain in details how much love they feel and why.This is just magic – even just to watch it happen.

And then as if he was a life-long researcher in medicine who just discovered a revolutionary cure, he started drawing on a napkin his newfound theory about love.

 

“This is two circles, he said while drawing. The one on the left is her, and this is me. These 2 circles represent our worlds. Then at the center, love is where our worlds meet.

This shared part is my world with her, and this one is her world with me. But most important is the part of our new world that has nothing to do with our current worlds and which is what we create and build together.”

 

Honestly I find this definition of love brilliant – romantic and analytic. The fact that my friend managed to define love between two people by using 3 circles wowed me.

 

Then here I am thinking about this love theory applied to brands interaction with consumers - yes, I’m a bit obsessed with work lately.

And I found this is exactly the mirror of what social media can do entertwined with a brand :

 

The ideal relationship between a brand and its consumers is a loving one. We must get rid of old school marketing archaism, where the engagement with the customer is a post-engagement, and move to an “inclusive marketing” in which there is a conversation rather than a monologue (full article from Customer Collective here )

 

I believe social media is the best way to re-create these love circles. To paraphrase my friend :

On one side, there is the users world. On the other side, the brand world. Then through social media (love) two worlds meet to share a part together in each other’s world. But moreover, social media will provide a whole new space belonging exclusively to both of them and thus creating the new “inclusive” experience.

 

My best wishes to my friend and his sweetheart xx

 

For more on Social Media, visit ZeroDegrees and SocialMediaToday