How to choose the right marketing method for your business in China

From live streaming to influencer collaborations, which marketing method is right for your business in China? Dana Goldburd, Co-Founder and CMO of Up2China, explores the pros and cons of some of the most popular marketing strategies

Success in the Chinese market is rarely the result of a uni-directional strategy; it requires a more complex approach that takes in multiple platforms and strategies.

To help businesses build a presence and loyalty in the Chinese market, Dana Goldburd from Up2China has outlined what businesses need to know about the most common digital marketing methods. By highlighting the advantages and challenges of various marketing approaches, companies can navigate the complexities of China’s dynamic market landscape with greater clarity and informed decision-making.

Live streaming

The gold-paved streets of China’s live streaming landscape have attracted many brands, keen to get a slice of a market valued in the trillions of RMB. For millions of Chinese consumers, live streams are a major part of the e-commerce experience, watched as much for entertainment as they are for commerce.

Pros: No marketing method enables real-time engagement with an audience quite like live streaming. Via a well-known host or an in-house presenter, brands can answer audience questions and get feedback in real-time. This makes it great for brands that need to provide product education – for example, a nutritional supplement or a professional haircare product – enabling them to explain key benefits and functions.

Cons: A successful live stream is often dependent on the popularity and skill of the host, and the best hosts come at a high price. There is also a complicated regulatory landscape to navigate, as well as the threat of technical challenges or disruptions.

Key opinion leaders

China is a global leader in influencer marketing, with the market for key opinion leaders (KOLs) – the more common term for influencers in the Chinese context – reaching RMB 340 billion (£37.7 billion) in 2021.

Pros: An endorsement from the right KOL instantly adds credibility to your brand. Chinese consumers trust KOL recommendations and use them to decide what to buy, ranking the opinions of KOLs almost as highly as recommendations from family and friends when it comes to making purchasing decisions.

Cons: As with live streaming, working with major KOLs is very costly and may be out of reach for smaller brands. Moreover, some Chinese consumers are starting to have doubts about the authenticity of KOL recommendations. For companies, there is a risk that promotions with a KOL who promotes a lot of different brands comes off as inauthentic.

Key opinion consumers

In response to the cons of KOLs, many brands are instead choosing to work with key opinion consumers (KOCs) – basically micro-influencers with a much smaller but much more engaged audience base.

Pros: As the name suggests, consumers turn to KOCs for trusted opinions on products and brands and working with the right one can give you access to a highly engaged community of potential brand loyalists. Since they have fewer followers, campaigns with KOCs are also typically less expensive than KOLs.

Cons: There are many creators who could qualify as KOCs, so identifying the right one for your brand can be challenging. Since they have limited influence on a broader scale, KOC collaborations are better considered as one part of a broader marketing strategy.

Official social media channels

Wherever they are in the world, businesses need to have a strong social media presence. In China, consumers expect to be able to use social media – especially the biggest platforms like WeChat and Weibo – to find out key information about businesses.

Pros: A strong social media presence gives you control over your brand’s content and tone of voice. It allows you to engage with your audience and build a community of people who resonate with your content and tone. Moreover, detailed metrics about followers can be used to inform other marketing strategies.

Cons: Social media visibility is at the mercy of the algorithm, which can make growth seem slow, especially if you are a new business just starting out. Businesses must also consider the risk of social media crises, as negative opinion spreads very quickly on Chinese social platforms.

For more insights from CBBC Member Up2China, join CBBC’s upcoming Consumer Masterclass on ‘Navigating the Chinese Market: Strategies for Success’ on 25 April. Click here to register.

This article is based on an infographic created by Up2China. Click here to view the original infographic.