How Social Media Affects Chinese Buying Decisions.

From CIC, we can track the buying process Chinese netizens progress through before the buying decision is made.

Tracking the decision process for purchasing a netbook, we can see how the initial inquiry arises, and how a Brand is selected from the buzz. Netizens value collective opinion first, and then look to popular advocates second to confirm their decisions. Afterwards, netizens refer back online for maintenace and upkeep of their new purchase.

The relationship between products and the web is quite clear, while TV, newspaper and magazines may create awareness for Brands, its the web that creates engagement through social community from everything to popular opinions, review, recommendations and upkeep information.

This opens up new avenues of strategy for brands such as creating presence on BBS and forums where products are discussed, in addition to working with blogger advocates to help promotion of products.

Nielsen Asia Pacific Social Media Report.

Nielsen’s recent social media report release gives great insight into the region; but let’s focus on China specifically.

Some of the key elements to note; of which we’ve discovered through our own campaigns; is that BBS’s dominate China social media, and this is where buzz campaigns and engagement are typically generated.

Looking deeper; social gaming is an excellent, through very expensive alternative to engagement on BBS, and the use of online celebs and bloggers are a common staple in a social media campaign diet.

Chinese being more likely to write a negative review is also quite true; though we’ve found they tend not to be as negative as those found in the west; so while overall quantity of negative comments are high; the overall depth of the negativity isn’t.

From Nielsen’s press release:

  • All about BBS, not the SNS: Bulletin board systems underpin popular social media behaviour in China – over 80 percent of social media content is bulletin board systems.
  • Revenue from Social Games: Social media games are used as a stimuli to drive new users and gain reach with existing users, while content sharing behaviours are more popular among the more experienced users. Virtual product placement within social networking site games is becoming one of the most profitable methods of revenue for social networking sites, generating between US$200,000 to US$500,000 per month on product placement.
  • Online Celebs are hotter than offline: ‘Grass roots’ celebrity tracking dominates online conversations in China, with grass roots celebrities such as Phoenix Sister and Mr Yuan outperforming real life celebrities in popularity.
  • Chinese are negative: Chinese Internet users are the most likely in Asia Pacific to post a negative online product review, and are the only consumers in the region more likely to share negative reviews than positive reviews – 62% of Chinese Internet users say they are more likely to share a negative review compared to 41 percent globally.

China’s Luxury Market: 840 Million Potential Customers.

According to research compiled by L2, China’s luxury market is about to explode.

Interesting to note is the age groups of luxury buyers. China’s unique historical circumstances come into play, with 80% of luxury buyers under the age of 45. This makes luxury branding in China require a distinctly “young/modern” feel vs. the US and Japan.

With such large potential looming in the near future, luxury brands are beginning to enter the market in force. Whether they will succeed will be a careful balance between their brand values, Chinese taste, and their ability to localize their message and cost effectively communicate that message to Chinese audiences.

We can expect digital campaigns to be a large part of luxury brands entrance into China; we’ve seen evidence of this already from Lancome, Porsche, BMW and others.

China Social Media Usage by Income Level.

From Synovate China Media Atlas; social media usage of China’s netizens.

Chinese tend to spend more time meeting new people than maintaing current relationships. Higher income’d netizens tend to be the most social; and have access to digital tools in which to be social with.

A brief history of Resonance.

Resonance was created by BA360 in 2009 as a “China social media” specific agency; it is an evolution of BA’s 360 service into China’s digital landscape; it is an online to BA’s offline.

To see BA360′s past clients; please visit www.bloodyamazing.com. We’re also creators and authors of the semi-famous littleredbook.cn. You’ll get a sense of where we come from and where we’re going. Resonance’s clients (3Suisses, American Airlines, Unilever, SapientNitro as of 5/2010) and brief descriptions thereof are also included.

In the near future, we’ll begin posting Resonance’s newest client wins in on this site as well as case studies as time and success allows. Stay tuned / don’t touch that dial – there is much more to come.