The Most Comprehensive Chinese Localisation Marketing Strategy Guide

Nov 19, 2021 |  Tianxing Z & Janie Z|6 Min

Enlybee Localisation Video

Intro

China represents the world’s second-largest economy overall (behind only the US) and the fastest-growing economy by GDP. As the Chinese market grows, many foreign brands are increasingly willing to customise their products for China. However, Chinese localisation marketing is no easy task. Localisation can be effective in some cases, but in other cases, these good intentions can seriously backfire. To achieve success in China, brands must carefully consider which elements of products and business processes will be most conducive to incorporating local characteristics.

Table Of Contents

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Intro
What is localisation?
What could go wrong with localisation?
What is different about the Chinese market?
An 8-step plan for a localisation strategy to China
Conclusion
Chinese Localisation Marketing Strategy FAQs

What is localisation?

A localisation strategy should be a crucial part of any company’s international business plan, which includes addressing customer behaviour, purchasing habits, and cultural differences in each country where they operate. The trick is finding that balance between staying true to your brand while still resonating with the local audience and not losing its appeal.

What could go wrong with localisation?

There are common problems that international brands face when they come into the China market. A few examples are brand messaging, underestimating local competitors, English websites not working due to inappropriate Chinese translations, technical problems, wrong product mixes or local regulations, etc.

Look below at some classic examples outlined by brand analysts Stefan Weynfeldt and Fran Lu of how they got it wrong, such as branding in Chinese.

1. Coca-Cola

Translation and branding failures can get the best of everyone, including Coca-Cola. When the brand first appeared in China, their name sometimes translated to “Bite the wax tadpole” or “Female horse stuffed with wax” – depending on the dialect.

2. KFC

The KFC slogan “finger-lickin’ good,” has been translated to “eat your fingers off” in Beijing. This slogan makes people feel uncomfortable, so they turn away from the restaurant.

3. Pepsi

The famous slogan from Pepsi – “Pepsi Brings You Back to Life” had an unfortunate translation mishap in China. The slogan translated to “Pepsi Brings Your Ancestors Back from the Grave.” The Chinese translation of it was odd and has caused many causes many customers to give up consuming the product.

4.Costa – 咖世家 Ka Shi Jia

The “Ka Shi Jia”, translated to “Respectable Family (skilled in) Coffee”, and appears more like a furniture store that sells products of poor taste. But luckily, its Chinese name is not that widely known because most Costa stores do not have the Chinese name on their shop fronts.

5. Airbnb – 爱彼迎 Ai Bi Ying

Airbnb’s Chinese name caused a stir on social networks when they announced it in March. Although the company explained that “Ai Bi Ying” meant “Let people greet each other with love” and insisted that the name conveys Airbnb’s spirit, many people found it far-fetched and hard to read. Some even joked that the name and pink backdrop looked more like a family planning brand.

What is different about the Chinese market?

Chinese localisation marketing starts with understanding China Market:

China is not one homogenous market but a diverse place with many different cultures. You can almost see China as the whole European continent.

For example, there are seven major dialects spoken throughout the country, which affect how people communicate. So, the strategies you use to get ahead in one region may not work elsewhere, even if it has similar circumstances or demographics!

Many markets in China are changing fast. Some of these changes may be difficult to predict because they are so new, which means it is important that you stay on top of your game!

In the past, stores in China had to focus on mass-produced products. That is not necessary anymore because consumers want niche brands with individualised attention now more than ever. Smaller local businesses can meet this demand by catering specifically to their desires.

Chinese consumers love digital and social media. Online shopping is huge in China, with many people using it to share their experiences or seek reviews from others before making a purchase decision. That is why it is important to carry out digital marketing campaigns to leverage these channels wisely.

Speak to the Enlybee team about digital marketing campaigns.

An 8-step plan for a localisation strategy to China

Market Research On local competitions.

Do not underestimate the local competitor and always do research. It has never been an easy task to compete with local brands in China. They can outbid you on price and supply chain operations like Shein, which started as a $20 million investment only a few years ago! So, brands need to develop their distinctive market positioning before entering China.

2. Organise your message right.

The key to success in any market is getting your message right. Often, the first step of that process seems simple- get a professional agency. But you need to know what makes sense for this country, so do not take their word on it when they say, ‘this will work’. No matter how fancy your marketing plan may seem at first glance, it is all about who you are and how that message caters to Chinese consumers.

3. Overcome the language barriers and cultural differences.

Individuals speak English in parts of China like big cities, but it is not the official language. Using the local language is the most effective way to promote your business. They use the simplified Chinese characters in Mainland China, compared to traditional Chinese used in Hong Kong. So, make sure that the native language of these individuals is clear to them.

4. Customer research for local preferences and cultural sensitivity

After Norwegian Cruise Lines launched a new ship specifically for the China market, they quickly realised their mistake. The boat featured typical features of China, such as teahouses and karaoke rooms, when passengers wanted more Western-style experiences like those found on American ships.

Another example is Home Depot in China. As a DIY store, it does not fit the needs or culture where people often reside in small apartments, and there are centuries-old traditions against “Do It yourself” work!

Researching your customers’ local preferences is vital for launching a new brand in China. You can conduct different surveys, focus groups, and phone interviews to research their needs locally before establishing operations there. If you want to know more about localisation in China, please contact Enlybee.

5. Get a feel for the social landscape

The social landscape in China is unique, and marketers need to understand what they cannot do. Without access to Facebook, Instagram, and Twitter in China, you will have a much harder time connecting with your audience.

So, what you should do is get yourself acquainted with the Chinese versions of each one to start. Learn how people use these sites differently from their Western counterparts so your content will resonate more authentically there.

It is not only social media, but your original website may also have problems. Depending on where your server is or who you share it with, it could be blocked or slow. You need local hosting services for optimal performance; we offer those as well as SEO advice tailored towards our clients based out of China (and all over!)

You could learn more about Chinese social media platforms and mobile apps via our blog: Top 10 social media platforms.

Top 10 Chinese Social Media Platform 2021

6. Find your branding and localising balance

Brand localisation can be difficult. Too little or too much effort in localisation may lead to the production being rejected by target audience, lessening its appeal and value for you as well.

The key is finding that “sweet spot” where it resonates with your own brand’s values but still appeals specifically towards those who live locally in relevant cultures around them. Evaluating your marketing materials or having someone do it for you is vital to ensure your global alignment.

7. Always seek innovation

Peter Drucker is famously quoted as saying that two basic functions of business are marketing and innovation. Localisation in China is a constant process of unleashing your creativity.

A recent survey of KFC in China showed that they introduced about fifty new products a year compared with one or two at most for the US. The fast-food business model explained why the lack of novelty contributed heavily to many retailers’ downfall.

8. The importance of finding the right partner

The right partner can help you avoid many mistakes and help you enter the Chinese market smoothly. You may choose your agency partner depending on various other factors such as your goals and budget, MarTech and branding strategy, etc.

We have a blog for your reference on how to choose the right partner and hope it can help you.

Conclusion

To conclude, it is not enough to look at China with dollar signs in your eyes because of the size of the market there. Playing your cards right is essential if you want to be competitive. Sometimes you need some expert assistance for Chinese localisation marketing – from someone who understands local languages, markets, segments, regions, and so on. If this is the case for your business, get in contact with our bilingual China marketing team!

Chinese Localisation Marketing Strategy FAQs

What is Chinese localization?

Chinese localization requires cultural and political sensitivity, knowledge of the differences and uses of the Simplified Chinese and Traditional Chinese writing forms, as well as a solid understanding of software engineering issues.

What does localization mean in marketing?

This is where marketing localization comes in. Essentially, the term means honing in on a specific area and marketing your product to that area. This involves crossing certain language and cultural barriers. This can be a touchy area, especially when other cultures are so different.

What is localization strategy example?

Popular examples of well-crafted localization strategies are Coca-Cola, Microsoft and Nike. At Ulatus, we track brands that do exceptional work with their content localization and shatter language barriers to increase their presence in global markets.

What is localization in international marketing?

Instead, localisation – defined as the adaptation of content to a specific market – is the process that should lie at the core of every global marketing campaign if the content is to be diverse enough to include different values, lifestyles and ethnicities.

What is a good localisation?

Good localisation will consider established cultural norms and societal attitudes. It should go beyond translating a list of text strings to ensure that the chosen language is correct in context.

What Is the difference between Standardisation and Localisation?

Standardisation helps create a unique identity no matter the target market while ensuring brand consistency through good content. In contrast, localisation focuses on tackling every market individually. Both can help you achieve your global objectives, but both are not suited for any kind of business.

What are the pros and cons of choosing to outsource to develop a localisation strategy?

Some companies rely entirely on in-house talent—which offers you the most control and the lowest cost. There is a lot of strength in building a translation team with linguists you know directly. However, you will run into difficulty when it comes time to scale up. Other companies rely on 100% outsourced talent and technology to achieve faster, smoother, large-scale localisation. With this strategy, what you give up in control and cost, you gain in scalability and sustainable long-term success. Companies localise successfully with both strategies and by operating between work that is fully outsourced and in-house. To find your perfect balance, look at how the pros and cons of localisation strategies stack up. By comparing the details of the seven most common solutions, you will be prepared to implement a localisation process that lets you stay in control, keep costs low, and empower your global vision.

Should all company localise their product for the Chinese market?

There are countless examples of brands that have successfully adapted their international products to meet local tastes in new markets. However, a strategic approach is critical to ensure you implement the localisations effectively. In some cases, Chinese customers’ preferences and behaviors will differ from other markets enough that you must tailor the product itself for China. In these situations, companies must carefully consider which elements they should localise and which to remain standard worldwide.

What kind of foreign brands are popular in China?

According to a survey conducted in China in June 2020 about shopping behavior, around 61 percent of respondents said they preferred to buy foreign brand maternity and childcare products. Foreign brands were also favoured when purchasing cars and cosmetic products. There are some new interesting categories added since Covid.

What are good marketing strategies for a small business?

Know your audience.
Emphasise your value proposition.
Stay focused on singular goals and objectives.
Capitalise on short-term plays.
Double-down on what works.
Understand the power of existing customers.
Use free promotional tools.
Create a website to own your online presence.
Consider blogging to attract prospects for your website.
Promote yourself on social media.
Invest in ads.
Make sure you’re capturing web prospects’ information.
Use email marketing to nurture leads.
Manage relationships with a CRM.
Lean into word of mouth as a promotion channel.

What does localisation strategy benefit?

Increase sales in a specific market
It could be either new geographical (new countries) or sectorial (government, corporate, consumer) areas, i.e. a company could decide to start selling their services or products in other countries or in sectors previously not explored.

Gain strategic advantage over competitors
To increase revenue gains a strategic market entry advantage over competitors even if this could mean a short-term cost. The investment is expected to pay off in the near future.

Branding
The early establishment of a recognisable brand in a new market is also a more long-term investment that will not show positive returns immediately. Companies may decide to bring their brands to other markets even if the product itself is not fully available in these markets in order to secure their position.

Is the UK real estate market popular for Chinese buyers/investors?

According to the Hurun Chinese Luxury Consumer Survey 2020, Chinese high-net-worth individuals have placed 12.5 percent of their wealth into overseas assets, with London ranked as the most popular investment destination.

In 2019, Office for National Statistics data showed that buyers from the Chinese mainland and Hong Kong invested 7.69 billion pounds ($10.6 billion) in London property, including more than 750 million pounds in residential property in the City of Westminster and the Royal Borough of Kensington and Chelsea.

How about localisation of games in China?

Localisation of digital games is unique in three aspects. First, they are a culture product, and as such they reflect specific cultures, genres and viewpoints. The storyline and tasks embedded are influenced by the cultural background of the designers. In addition, the external environment of games is unique. There are cultural, legal, and political contexts with which gameplay takes place. Finally, digital games’ target audience is not composed of just typical consumers, but cultural consumers. Digital games attract users from everywhere in the world and players bring expectations and judgment into the gaming experience. To conclude, the localisation of digital games is related to various facets and layers, both inside the game, and out in the real world.

How about localisation of luxury brands in China?

Localisation of digital games is unique in three aspects. First, they are a culture product, and as such they reflect specific cultures, genres and viewpoints. The storyline and tasks embedded are influenced by the cultural background of the designers. In addition, the external environment of games is unique. The Chinese market is different from other markets because the brand has control over e-commerce and can limit distribution in order to maintain its positioning. In China, luxury brands have been able to take advantage of new technology and social media by using it as a way for consumers to get more access than ever before. In order to create successful digital strategies across Asia’s largest economy, there is still much cultural adaptation required which hasn’t been seen elsewhere.

How about localisation of fashion brands in China?

With the emphasis on meeting Chinese consumers where they are, companies that are undertaking or considering localisation in China should keep a handful of considerations in mind. For one thing, for consumers in the Chinese market, the Chinese language translation of a brand name is as important as the foreign language original, and can be essential in developing recognition and goodwill. Where a foreign brand in China has no Chinese translation for its brand name, consumers in the Chinese market commonly will coin one on their own. As such, brand owners should take control of the creation of their Chinese brand name, or file to register in their name the one which already exists. Failing to do this runs the risk that a malicious third party will do it first, creating a harmful risk of consumer confusion and potentially leading to a lengthy and costly battle for the brand owner to reclaim what is theirs.

What are data localisation requirements in China?

Given the unique features of the China market and the growing importance of Chinese consumer tastes, it is essential for brand owners to look at brand localisation so as to maximise their performance China does not require all network operators to comply with the data localisation provisions, and does not prohibit all data from being transferred outside of China. Currently, CIIOs in China should be mindful to store their data in China, including personal data and important data generated from their important networks and systems. For most of organisations which are not a CIIO, they may consider how best to conduct a security assessment when the need arises to transfer data outside of China; this however is also a problem for legislators and the Cyberspace Administration of China, and may be subject to the new data laws (e.g. the Draft Data Security Law and draft personal information protection law) and regulations, the status of which should be carefully monitored.

(Source: www.dataguidance.com)