China is one of the most powerful economies in the world. In 2014, it overtook the United States in terms of GDP derived from purchasing power parity. GDP per capita has increased 407% over 10 years; real growth in 2014 was 6.9%. Surprisingly, many companies in Europe and the US have a limited knowledge of business opportunities. The Chinese audience remains a mystery for many Western marketing departments. This lack of knowledge negatively influences the launch of products and services in the Chinese market. A fast-growing and more sophisticated upper middle class and increasing wealth in tier 3 and 4 cities are two of the main reasons why 2015 is the right year to exploit opportunities in the Chinese market.
These figures encouraged In Other Words, a translation agency, to create an infographic, titled China in a Nutshell, showing prospects in ecommerce and tourism sectors. The part dedicated to online purchase highlights the immense potential of the Chinese market for international retail companies. One of the most interesting points concerns the fact that China’s online market is not replacing offline purchases. In fact, in midsized and small cities, ecommerce is the only way to buy products unavailable in high street stores.
As for tourism, In Other Words presents impressive figures on the opportunities many key players in the tourism sector are missing. In 2014, Chinese outbound tourists numbered more than 100 million, but only 3% of them opted for a journey to Europe. China in a Nutshell lists four tips for tourism organizations and companies wanting to grab the attention of Chinese tourists:
- Partnering with a Chinese travel agency (Tourism industry in China is here)
- Providing information in Chinese
- Using key opinion leaders (Opinion Leaders are online in China
- Using appropriate social media (see here for more information)
The last point deserves a more detailed analysis. In the next section of China in a Nutshell you can find a short presentation of four Chinese social media platforms. You may know that Facebook and Twitter are blocked in China, although many people use them. What you may not know are the names of popular social networking services and how to use them to promote your products effectively.Four platforms need to be used in social media marketing in China :
- Sina Weibo
As already said, one of the biggest challenges Western brands face when doing business in China is their lack of knowledge of the audience whom they are talking to. In order to better understand the needs and tastes of customers and to organize an effective strategy, it is essential to create a business persona. This is what In Other Words does for you in its infographic. In the last section of China in a Nutshell, you will find the description of a potential middle class client – a useful implement if you are planning your communication strategy to approach the Chinese market (Penetrating the Chinese market at Luna Vega).