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

Your brand may be popular in your local community, but Chinese consumers will likely not be familiar with it. The California wine industry offers a good example of effective cultural marketing in China as California wineries have had a lot of success entering the Southern Chinese market. Though local California brand names were not known in China, a well-planned cultural marketing approach has allowed wineries to quickly grow their market share and distinguish themselves from the French wines that have long been favourites in China. How? By targeting a specific geographic and economic group, and adapting their brand’s image accordingly. For example: “Lucky Bull”, a Californian brand, decided to target high-end consumers by translating their name into Chinese to “Wall Street Luck Bull” – which appealed to a high end market.
Lucky Bull Wine in China

2) Stay Away from Politics

Brands should never get involved in politics. In North America, the President of Chick-fil-A sparked boycotts after making homophobic comments in 2012. Similarly, Cadillac ran into trouble in China when trying to market its XTS brand with Brad Pitt as its ambassador. The actor is banned from entering China due to his role in the movie Seven Years in Tibet.
Brad Pitt

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

In its own way, China is like its own small world. For instance, Sichuan Province is the size of France, the population of Shanghai is equal to the entire Canadian population, and the total international trade of Guangdong Province is almost the same as that of Russia. When entering the Chinese market, target specific locations and adapt your content accordingly. Vancouver-based Russell Brewing is expanding into China so they set up a test brewery and brewpub this summer in Hefei, a city of 5.7 million people in the Anhui Province of Eastern China.
Russell Brewing in China
By focusing on one geographical area, Russell Brewing will be able to effectively localize its brand and better plan for further expansion.

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.”

Relationships are central to the Chinese culture. Getting involved with your network is a great way to establish your brand’s identity. When expanding into China, make connections with the people and companies you work with to establish your market position. Interacting and “investing” in people who live and work in your target market are great ways to get insight into the current and future needs of your customers.
building relationships

 

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.

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