How Australian brands are winning in China

An insight by Michael MacRitchie

Australian companies have been building a strong relationship and reputation with Chinese consumers for many years now. Given the rising availability of Australian products and the increasing ease with which they can be purchased online in China, such companies have been leveraging their popularity and growing demand to establish a foothold in what is becoming a vital market. According to estimates by Austrade, between 5% and 10% of retail food, including health products and baby formula, are now sold online on e-commerce platforms such as Taobao and Alibaba.

 

 

Wise brands have made efforts to attach their names to the image of Chinese celebrities and influences to further resonate and connect with existing and new customers alike. Celebrity partnerships, influencer campaigns and product placement on Chinese television shows will increasingly help bolster sales for Australian brands in China. Australian companies using Chinese celebrities in their marketing are enhancing their brand in the eyes of the 434 million active users in China of the Alibaba platforms which include Tmall, Tmall Global and Taobao.

 

 

Online shoppers in China have a high regard for Australian products, seeing them as safe, high quality and good value for money. Australia, seen by Chinese consumers as a place with a good lifestyle, resonates so much that most plan to buy something from the country in the next 12 months.

 

 

Reflected in the numbers, a recent poll of 1,000 Chinese online shoppers, aged 18 to 44 years old in the cities of Beijing, Shanghai, Guangzhou and Shenzhen, revealed that Australian brands are already highly revered, with 81% having previously purchased at least one Australian product online. The online shoppers estimated that they have spent RMB4,895 ($940) on Australian goods over the last year. Nearly two thirds (62%) of these consumers like buying Australian-made because they consider the way of life appealing. More than one third (36%) said the Australian goods are value for money and 32% believed they are safer than Chinese goods.

“The Chinese middle-class have voraciously embraced online retailing and many celebrities and sports stars have enormous followings on social media, with small mentions of products, photos or videos featuring a particular product in the background having major impact”, Alibaba’s Australia boss Maggie Zhou has said. “With the China-Australia Free Trade Agreement and the emergence of online marketplaces connecting to consumers in China, it is becoming much easier for Australian businesses to do business with China.”

 

 

In the survey, Australian dairy products were seen as world-class by 58% of Chinese online shoppers. A fifth or more believe the same for health supplements and pharmaceutical products (39%), baby products (31%), skincare products (25%), fresh seafood and meat (24%), fresh fruit and vegetables (20%) and wine (20%). Cosmetic and skincare products were purchased by 31%, followed by healthcare and pharmaceutical products (25%).

“This research indicates secure payment, authenticity and seller recommendations are more important to Chinese online shoppers than price and brand. It’s important to have a world-leading product, but selling it through the right channels is also crucial.”

 

 

MGI sees continued growth areas around tourism and travel, dairy, health supplements, beauty care and education. The key, however is understanding that China is such a vast country and if you are looking to target a specific city, say Shanghai or Beijing, brands need to work with influencers who will resonate the most in specific areas. Be smart when approaching China – a well thought out influencer strategy verses a large scale celebrity endorsement is more effective in “selling” product, while the correct celebrities will generate a large amount of exposure and brand awareness.

 

 

The perfect example of Australian brands utilizing their strong reputation can be seen in the vitamin and supplement industry – which has seen rapidly growing demand from China where the focus amongst consumers has shifted from a product based mind-set to prioritizing quality of life and experiences. China is currently Australia’s second largest market for pharmaceuticals such as vitamins and health products with exports amounting to $381 million in 2013-14, according to a report by The University of Sydney.

 

 

Vitamin group Blackmores has enlisted retired Chinese tennis star Li Na as an ambassador for its brand, while Swisse vitamins uses actress Nicole Kidman & Fan Bingbing in its marketing. Whilst the Weetbix breakfast cereal made by Sanitarium experienced a huge spike in sales after it featured in a domestic scene in the Chinese television drama Ode To Joy.

 

 

As living standards rise and people become more conscious of their health and wellbeing, Chinese consumers have been turning their focus to offshore products. Most notably, Australia’s baby formula and multivitamins.

“China is facing a host of new health challenges, including an ageing population, changing diets, increasing prevalence of obesity and environmental problems,” says professor John Knight, at the George Institute for Global Health. “The demand for high quality health care is a constant, unlike the boom and bust cycles of many other industries such as the resources sector.”

 

 

This comes as no surprise. Over the past years, there have been multiple reports of people in China selling counterfeit products including powder packaged in A2 Platinum Formula and Bellamy’s Organic milk tins. While Chinese authorities have tried to clamp down on unregulated imports by levying import taxes in a bid to save local businesses, this hasn’t affected those who are sending products by post.

 

 

My Top 5 tips for brands in the China market.

1) Be clever in how you maximize your celebrity/KOL investment. If you work with a KOL make sure you do the necessary research on their numbers and followers so you understand that their audience is “real”.

2) It’s not always necessary to always work with the biggest celebrity. Choose relevance and fit over fame.

3) Target your approach. If are only focusing on 1st tier cities, make sure the followers of the talent are linked to the city.

4) Tell a good story and localize your message. If you are promoting a food product, do some grass roots marketing with live streaming to showcase your farm, meet the farmers or people producing the product.

5) Reward your top performing KOL or celebrity with non cash incentive. Sometimes a good experience is even more valuable than a pure cash payment.

 

Michael MacRitchie, BA, Media, is Managing Partner at MGI Entertainment. Michael has over 15 years of experience MGI has negotiated contracts with notable Chinese artists like; Andy Lau, Li Bingbing, Fan Bingbing, Jolin Tsai, Sunny Wang, Laure Shang, Jay Chou, Blackie Chen, Jackie Chan and many influencers.

How KOLs can help with Tourism and incite travel

An Insight from Rob Pringle

It’s becoming increasingly clear that KOLs, particularly in China, hold a great deal of influence among their followings. Able to sway the decision making habits of huge audiences, they’ve become an essential avenue for brands to promote their products and services to a highly engaged and targeted audience. KOLs can help brands connect with China’s massive $261 billion USD outbound tourism market. But companies can do much more than offer free trips and merchandise to build working relationships with KOLs.

 

 

KOL Advertising in China began small a few years ago and has turned into a $8 billion industry. The tourism sector, in particular, has made a massive transformation from more traditional billboard-and-commercial advertising to using social media influence.

For example, actress Yao Chen had 26 million Weibo fans when she got married in New Zealand in 2012. Her social media updates throughout the trip plus constant media coverage helped New Zealand attract a staggering 30% more Chinese tourists that year.

 

 

Travel decisions are weightier than other consumer expenditures. The safety of a destination is a leading consideration for both free independent travellers (FITs) and package tour groups from China. The latter are particularly price-sensitive and value using their available time effectively. For example, a premium travel destination such as Australia, which already commands a favourable image among Chinese travellers, is able to leverage such status to appeal to a wider audience of potential tourists from China. It is well known that China is now Australia’s largest and most lucrative source of tourism to Australia at 1.35 million visitors and AU$11 billion annually.

 

 

It’s easy to see how trust carries a premium when marketing to Chinese outbound tourists. Yet too many travel companies aren’t leveraging their value when recruiting China KOLs beyond offering free trips and merchandise. Here are five strategies to increase KOL Advertising ROI.

Collaboration

Brands big and small should post about the KOL with whom they work. Not just a quick shout-out, but promotion across all relevant platforms that makes the KOL feel valued and gives them a larger footprint.

Just as brands might view China-based, Chinese-speaking KOLs as a complex yet lucrative foreign frontier, so too are Western brands seen as an exciting new opportunity by Chinese KOLs.

 

 

Influence

It’s true; Chinese travellers have clear preferences and expectations.

However, the above statement can be very misleading.

While plenty of studies have been done to grasp the nature of the Chinese tourist, it’s important to avoid generalizations. This group of 133 million people can be broken down into a myriad of cohorts by age, status, and interests. They all have very different wants and expectations.

 

 

KOLs allow smaller groups with very particular desires to gravitate to content that reflects their personalities. Traditional outlets don’t come close in this regard. By working with a KOL for marketing in China, you get insight into specific groups from the individuals who understand them best. This creates a much more effective and targeted strategy for strengthening your presence with the right audience.

 

 

Start by asking what the KOLs’ followers want and what travel services they’d like to see. Work with them to create new offerings that target markets other brands haven’t penetrated. Deeply insightful market research doesn’t need to cost a fortune if you have a strong relationship with a KOL.

Chinese fans are more willing to be influenced by people they are familiar with rather than brands themselves. When someone they consider to be genuine or a role model is doing the talking, chances are higher that they will be influenced. Here is the example of Janice 简妮, a renowned traveling blogger based in Shenzhen. With more than 3 million Weibo fans, she’s constantly sharing her life and insider tips to things like having high tea in Macau, taking a SPA experience in Sanya, or enjoying the best beaches around LA. By actively interacting with her fans, Janice helps to create tangible guides for future travellers.

@Janice简妮

 

 

Research

Travel KOLs are supposed to be experts, so brands should help them expand their expertise. This means providing exclusive insights into locations, trends, and services that travellers will find valuable.

As a travel company, you know a lot more about unique, out-of-the-way or emerging itineraries than the average person. These kinds of trip ideas are especially alluring for people browsing the web for their next destination, as Airbnb well knew when creating their Experiences feature and Wanderlust campaign.

 

 

Airbnb x Janice简妮

Airbnb used their hosts’ plethora of local knowledge to create unique experiences.

People start following a KOL because they provide unique value and perspectives that appeal to them. For most travel-focused China KOLs, unshared information to create something valuable in their niche is worth much more than discounts or merchandise.

 

 

Creative

Provide the KOL with exclusive images and videos that are worth posting. This strategy is especially useful if the KOL will not be traveling. Give him or her as much support as you would an in-house employee to produce content. After all, they are taking the role of an employee.

If you don’t hire a KOL, you will pay someone to do creative, do distribution, and make targeted ads. A KOL does the work of an entire marketing department. You, however — as a travel company with on-location staff or at least a network in the destination area — have the raw materials and vicinity to make great content.

 

 

Give Aways

Finally, give-aways do have their place — but here’s an alternative method. Rather than giving the KOL a product, give her something she can give to fans in her own give-away. Chinese followers love give-aways. It’s fun, makes them feel valued, and can create additional promotional materials. But don’t make it a broad discount give-away, make it exclusive, and make it exciting.

MGI has outlined some additional tips for selecting the right KOLs, building and developing meaningful relationships with them.

Engagement

Focus on engagement. Rather than just looking for the bloggers or celebrities with the most number of followers, focus instead on engagement. Some of the most influential KOLs post about quite niche topics, such as wine or handbags, but this means that they will be followed by a highly engaged and loyal audience, and can generate more profound effects. “Some brands understand the power of KOLs’ word of mouth. I did a WeChat promotion for a hotel group, and although the post only had 15,000 views, there was a high degree of interaction with fans, and this is sometimes a much more meaningful metric than exposure,” says Ju Zhu. WeChat also feels more personal to users than Weibo, as there is more interaction, and its focus on friends and relationships leads users to trust it more.

 

 

Develop the relationship. Some KOLs might endorse a different product every day of the week. This ultimately leads to lower ROI and a lower level of trust from followers. Rather than thinking about your relationship with a KOL as merely paying for a certain number of posts, you should focus instead on helping them to really get to know you. This might mean giving them more freedom – Ju Zhu explains that her most successful partnerships have come when she is allowed to write about her true feelings rather than to push a certain agenda. Mr Bags has also commented that he prefers working with companies that trust his opinion and allow him to promote the bags that he truly thinks will be most popular with his audience, not just the designs that the company thinks will do well in China.

 

 

Channel

Choose your channel. The social media channel that a KOL uses can impact the effect they have and how easy it is for followers to connect to you. With WeChat, many KOLs will be reluctant to add in a brand’s QR code, as they want to maintain their independent image. With Weibo, travel KOLs can more easily mention/@ the brand, ensuring more visibility for the brand’s account and an increase in number of followers. However, Weibo has been capitalizing on the popularity of KOLs and has begun to ask brands to pay a fee to run KOL campaigns where there is an obvious call to action to mention a brand, thus increasing the user base.

 

 

Goals

Set clear goals. In order to make sure you’re getting the exposure you’ve paid for, it’s important for brands to set clear KPIs for the KOLs they work with. This can include agreeing on a certain number of articles to write, format, the timing of the posts and whether the brand can share the KOL’s content on its channels.

In China, you’ll find influencers in all regions from cosmetics to fashion. These bloggers have shaped large communities of countless admirers. Important influencers have a wonderful affect on the Chinese as the typical netizen utilizes social networks as their key source of knowledge. WeChat is commonly referred to as the ‘WeChat times’. Quite a few Chinese now distrust the normal push from official sources. This kind of data informs their worldview and it has a terrific influence.

Influencer posts may perhaps incorporate the celebrity working with the services or products, function a url to the formal social networking webpages or web site or a direct endorsement of your high quality from the product/service. Visible photographs and video material are inclined to entice the most attention and allows the post to go viral. Followers will often share influencer posts on their own feeds.

 

 

Collaboration with Influencers and Creating Belief

It’s important to discover the Influencers who can faucet into your current market niche and link with them to get started on constructing relationships. This can be complicated with all the language obstacles, so acquiring a third social gathering agent to liaise together with the influencer is essential to signal an offer.

In relation to new services and products the Chinese are famously distrustful and like to buy whatever they know or whatever happens to be suggested. An endorsement from the trustworthy dependable figure is worth its weight in gold.

 

 

Partnerships are significantly costly

Influencers in China are aware of their privileged placement and know how to leverage it. Businesses have sprung nearly represent them since they absolutely are a very valued digital asset. It’s akin on the good results of the ‘Celebrity YouTubers’ but over a greater scale monetarily (with regards to original financial investment and possible return).

Papi Jiang, for instance, bought her 1st video advert for 3 million dollars. She’s a satirical movie maker with more than one hundred million followers. Weibo user ‘Han Huo Huo’ is one of one of the most influential manner bloggers in China with above three million followers on his page.

 

 

More KOL examples

‘Micro influencers’ can also be vital. They are figures which have shaped scaled-down communities based upon niche topics and pursuits. They don’t have tens of millions of followers but are still influential in their smaller communities.

When you use a more compact price range and can’t find the money for the large-scale ‘Opinion Leaders’ and famous people then contemplate utilizing ‘micro influencers’.

 

 

Summary

Using the diversification of media applications in 2017, ‘alternative platforms’ such as ‘Nice’ (akin to Instagram) or Little Pink Reserve (e-commerce app with social team chats) are gaining strength. This could really encourage the rise of micro-influencers to make a distinct style of social place outside the house in the significant scale Influencer-led WeChat.

 

6 Products China wants to buy from Australia

An article by Rob Pringle

As far as reputations go, Australian products in China have a stronghold on reception with Chinese consumers, widely regarded as premium quality, value for money and trustworthiness. MGI has previously written on the trend of Chinese shoppers preferring Australian made products to local or other international options.

This is particularly true of FMCG items, where safety and standard of ingredients are important considerations at the purchasing point. Food produce, as well as health and beauty products have fared particularly well by capturing the attention of the China market and leveraging Australia’s positive image to drive sales.

Often hailed as “clean and green”, Australia’s image boasts real authenticity, a trait frequently attributed to influencing purchasing behaviour and demand in China. MGI has selected 6 types of products below that Chinese consumers often want specifically from Australia.

In this post, we will summarise the key points on how to “sell” Aussie products to China with influencers.

 

A China market strategy. 

Although an opportunity exists, in order to gain traction in the Chinese market the approach needs to be strategic, holistic and relentless. It’s more than just language, it’s about understanding cultures. It needs to be a long term view.

 

 

Supplements

China is currently the second largest pharmaceutical market, expected to be worth $167billion by 2020. Healthcare is an increasing priority for China and Chinese consumers with many looking for high quality supplement products from Australia.

Swisse and Blackmores are both examples of Australian companies connecting with Chinese consumers and carving out demand. Swisse deepened their connection with the market by partnering with Fan Bingbing for a promotional campaign, using her status to resonate with existing and new consumers. Blackmores appears daily at the top of Tmall Global, selling more than 30,000 units per month.

 

 

After a wave of scandals, negatively affecting the image of local Chinese healthcare products, other counties’ products have become more synonymous with safety and guaranteed quality, swaying many consumers to opt for an international option.

How to sell:

We believe this space will continue to grow.  Areas that these brands can focus on are in sponsoring branded entertainment, aligning with KOLs with a call to action campaign. (Sport, fashion, beauty, food) pillars.

 

 

Dairy

Over the last 5 years, the value of dairy products exported from Australia to China has grown from $144million to $403million. The increase in demand has been so steep that butter prices in Australia have been affected with the shifting destination of the supply.

As the Chinese market has matured, dairy consumption has increased, with China and Malaysia still being the fastest growing markets in the region.

 

 

How to sell:

Doing some story telling with KOLs in NZ or Australia is an effective way to explain the health benefits of Australian/NZ dairy products. Emphasis to show where the products come from and the environment where the conditions are optimal. (Diets for today’s high-producing dairy cows are typically higher in energy from readily fermentable carbohydrates than fats)

 

Honey

Packaging over 2,000 tonnes of honey each year,  Chinese consumers are wanting the very best in “Australian Honey”. Chinese consumers are very wary of fake honey products. Capilano is Australia’s leading honey producer and product is sourced from only Certified Organic beekeepers. This is 100% pure Australian honey. Which is what Chinese consumers want.

 

 

As Chinese culture places a special significance on the natural healing abilities of honey, China has become of huge consumer of premium honey produce.

How to sell:

Doing some story telling with KOLs in NZ & Australia. Do some live streaming while honey is collected from wild bee colonies. More importantly talk about the health benefits especially for young children. Hint – work with “Super Mother KOLS” “Health and beauty influencers”

 

 

Food

Drawing on the same status of safe products with authentic and quality ingredients, Australia’s food industry has seen growing demand with increasing exports to China. China, which possesses the world’s largest food and beverage market worth over $560 billion, presents a vital region of potential customers to exporting countries such as Australia. China’s import market value is growing and expected to be valued at $71 billion this year.

 

 

Chinese consumers are often willing to pay a large premium to get imported food products. This has been apparent with Chinese social media based obsession with Australian goods. Local exporters have been selling boxes of Weet-Bix, an Autralian breakfast cereal, for upwards of $50 on Chinese social media.

 

 

This price is about 10 times the cost of Weet-Bix in Australian stores, demonstrating just how popular Australian products are in China, with chance celebrity endorsements ramping up the exposure and demand of the product with local consumers. Sanitarium have enjoyed a 50% sales spike from last year as the group put together a product placement and sponsorship program with Taiwanese-Chinese reality TV star and “supermum” Alyssa Chia.

How How to sell:

It was a product placement in a popular Chinese drama program called Ode to Joy, and the reaction sent sales through the roof.

When one of the drama’s lead characters expressed their love for the flaky wheat cakes on the program during an episode that aired in May, demand shot up in a way Sanitarium had never anticipated.

In summary, to make the most of the demand for Australian organic food in China, brands need to be able to understand what’s driving the organic food craze, and to partner with savvy distributors. Pick KOLs and influencers who represent a healthy, premium lifestyle, work with the right influencers and other brands will also enjoy a similar product spike.

 

 

Skincare and Beauty Products

Skincare and beauty products coming from Australia are held in high regard in China, with a stellar reputation stemming from higher quality of ingredients and more rigorous testing standards.

 

 

A’kin (pictured) Creates its hard-working products by selecting natural ingredients that work in synergy with the skin, and extracting them in a way that retains their goodness. Better yet, every step of the process used to create A’kin’s effective skin care products is done in an environmentally-friendly way.

Ever since China started to shift its position from the world’s dominant manufacturing powerhouse to the world’s biggest and most attractive consumer market, the consumption habits of Chinese consumers also started to move toward increasing maturity and sophistication. This trend is perceived as a tremendous opportunity for organic brands entering China and competition in this market is intensifying

“The rosemary shampoo comes in a dark green bottle that is beautiful and practical, the smell is beyond amazing! it smells divine and exactly like fresh rosemary. The smell lingers in your hair after and your bathroom also smells amazing. Since switching haircare brands and especially using the rosemary shampoo my scalp has returned to normal and i have had no bad reactions” Said Janice (Chinese beauty influencer)

Australian made beauty products have become so popular that Australian Creams, owned by Sydney-based G & M Cosmetics has been rated the “most recognised” Australian brand, ahead of airline Qantas.

 

 

Best way to sell:

Make up tutorials, positioning with “Little Red Book” & call to action campaigns would be effective ways to communicate with consumers via relevant KOLs. Partner with KOLs who’s audience is interested in skincare, beauty products and makeup. Work with a KOL to explain the benefits over time. One beauty influencer said of using A’kin

“The rosemary shampoo comes in a dark green bottle that is beautiful and practical, the smell is beyond amazing! it smells divine and exactly like fresh rosemary. The smell lingers in your hair after and your bathroom also smells amazing. Since switching haircare brands and especially using the rosemary shampoo my scalp has returned to normal and i have had no bad reactions” Janice

 

Baby Formula

 When it comes to the importance of selecting the highest quality products, parents will often choose the best option when buying for their children. This is especially true of Chinese consumers opting for Australian made baby formula.

 

 

Figures have revealed that China is taking 67% of Australia’s $45 million formula industry. An increase of 26% from five years before.

How to sell:

Trust is a very important issue when parents decide what to buy to nourish their babies. Obviously, please make sure you select KOL’s with a good reputation and do your research on engagement. We have mentioned the term “super mums” previously in this article. (Footnote- to Australian baby formulae companies, need  to explain that CHINA is not trying to raid Aussie supplies completely.)

Memoirs of a Geisha star Zhang Ziyi set to deliver multimillion-dollar tourism boost to Australia

·       Ziyi Zhang, one of China’s most successful actors and recognised personalities will be starring in Mango TV’s Viva La Romance.

·       Viva La Romance is watched by over 130 million people weekly and each season attracts a total audience of more than 2 billion viewers.   

·       The leading Chinese show (most popular show in Q3, 2018) begins filming Season 2 in Australia between the 19^th -29^th January 2019.

·       Filming locations will include Rottnest Island and Melbourne showcasing Australia to more than 2 billion viewers.

·       Zhang Ziyi is best known for her appearances in Ang Lee’s Crouching Tiger, Hidden Dragon and she was nominated for a Golden Globe Award, a BAFTA Award and a Screen Actors Guild for her role in Memoirs of a Geisha

 

 

 

Ziyi Zhang, one of China’s most successful actors and recognised personalities arrived in Australia last weekend and to film season 2 of Mango TV’s Viva La Romance.

As one of the most popular Chinese programs, Viva La Romance is watched by more than 130 million people weekly and each season attracts a total audience or more than 2 billion viewers.

The Chinese reality show centres around some of China’s most famous women as they embark on romantic journeys around the world including; the Palace of Princess Sissi in Hungary, the Blue Danube in Austria, Mogan Mountain in China and now leading tourist locations in Australia.

 

 

Filming for Season 2 of Viva La Romance  will showcase the beauty of Rottnest Island and Melbourne to the 130 million Chinese viewers who tune in to the program on a weekly basis.

Founder of leading entertainment marketing company, MGI Entertainment, Michael MacRitchie said, “this is an incredible opportunity for Australia to be exported straight into the homes of tens of millions of Chinese viewers and consumers.”

“This show desires to showcase the most magical and beautiful places on the planet provides an incredible opportunity not only for Australian Tourism, but Australian businesses to be exposed to the ever-expanding Chinese consumer market.”

 

 

“Viva La Romance is primarily watched by young, urban, educated women who make up China’s highest spend and earning demographic. This provides and incredible opportunity for Australia that is unparalleled in gaining instant exposure,” Michael MacRitchie said.

Zhang Ziyi is best known for her appearances in Ang Lee’s Crouching Tiger, Hidden Dragon, Rush Hour 2, Hero and House of Flying Daggers. One of her most critically acclaimed works, Memoirs of a Geisha, earned her nominations for a Golden Globe Award, a BAFTA Award and a Screen Actors Guild Award for Outstanding Performance. She as well won 12 different Best Actress Awards for The Grandmaster.

 

 

Mango TV

Mango TV (芒果TV, Mángguǒ TV) is a Chinese Internet enterprise operated by mgtv.com Corporation. Mango TV was established on May 26, 2006 in Changsha, Hunan and later decided to use ‘Mango TV(Internet TV, PC, Phone and Pad)’ as its video platform branding title in 2008.[2] Mango TV specialises in creating online videos and is an online platform providing all of the content that is presented in TV channels, and all other copyright works from Hunan Broadcasting System and Hunan Satellite TV. Its current headquarter is located in Golden Eagle Movie & TV Cultural City, Changsha, Hunan, China. Mango TV provides audience with all kinds of content including films, TV series, music, cartoons and entertainment.

MGI Entertainment 

MGI was founded in 2010 and is currently the leading entertainment marketing company for cross border transactions. MGI helps Australian and international brands gain exposure and sell product into the Chinese market by executing content, celebrity and influencer transactions. MGI has executed celebrity, influencer and sponsorship campaigns with artists; Brad Pitt, Li Bingbing, Fan Bingbing, Sunny Wang, Godfrey Gao, Kobe Bryant, Jay Chou, Karen Mok, Jessica Alba, Andy Lau, Beyonce, David Beckham, Ronaldinho and many Chinese influencer and KOL’s transactions.

Wine Tourism: Leveraging KOLs to attract Chinese tourists

MGI were recently asked to present at the China/Australia wine Summit on “Tourism, Trends and success factors in attracting Chinese tourists”.

China has the world’s highest number of smartphones and mobile internet users who spend in excess of three hours on their devices every day. Social media platforms such as WeChat, Sina Weibo, live stream video site Douyin, and Zhihu (a question and answer forum) are powerful communication tools on which to share wine wisdom and opinion without the usual constraints (or thoughtful curation) of traditional media.

China’s social media influencers reside in two camps. Key opinion leaders, or KOLs, comprised of the country’s famous actors, singers, and TV personalities, as well as web celebrities and bloggers. This group wields incredible power in China’s massive online retail market, especially in fashion, cosmetics, and luxury goods. They command commissions as payment for their endorsements: the higher the number of clicks per post, the more they get paid.

The term KOL has even become a job title in its own right and spawned an industry of agents who train and groom influencers in exchange for a share of their endorsement proceeds. While still strong, the influence of KOLs is waning as savvy consumers realize their heroes are paid to endorse products.

 

 

The gap in-between is where micro influencers are on the rise. Micro influencers are also bloggers and live stream video stars, but their voices carry more weight because they offer genuine opinions from trusted personalities. “There is something to be said for micro influencers,” Heller told an audience at Vinexpo Hong Kong 2018, noting that Millennial consumers are more reliant on their peers’ experiences than blindly following a KOL.

Where traditional media has historically been hampered by censorship, China’s social media stars are opening dialogue about wine. Their often candid, entertaining, bite-sized wine opinions are breaking down barriers and creating communities of wine lovers.

MGI founder Michael MacRitchie spoke about KOLs and stressed that the type of KOL you activate will depend on your target audience.

 

 

What is a KOL?

KOL (Key Opinion Leaders) can be known as either Chinese celebrities or famous social media users who create viral content and gained a huge following on social media websites. It can also refer to influencers, ‘wang hong’ and Internet celebrity.

 

Best way to work with KOL in the Wine Industry?

1)     Create an amazing experience for the KOL at the cellar door.

2)     Start conversations – Gift KOL’s your product.

3)    Be targeted in your approach (18% of tourists come from SH, 18% come from GZ, 18% BJ).

4)    Next wave of growth will be in second and third tier cities. Start developing conversations with KOLs now.

5)    Make sure you are building relationships with 25-35-year-olds (biggest opportunity to grow your brand).

6)    Have Chinese speaking support.

7)   Collaborate. Collaborate. Collaborate (work with partners in food, tourism, Australian lifestyle, and experiences e.g. Horse Racing).

8)     Look at where the KOLs are most active to compliment your shops (TMALL, TIKTOK, BILLBILLI).

9)   Work with partners who can deliver results. Make sure the KOL does not have fake followers.

 

 

What does Successful Wine tourism look like?

Sales and profits for all stakeholders. But you’ll see this at the end of the year. What are the qualitative indicators you’re doing this right?

For the Chinese market specifically, additional factors influence visitor satisfaction.

These include:

– Personal safety and security

– Friendliness of locals

– Nature-based experiences

– Wine experiences

– Food and beverages.

– Value for money.

 

While food and wine can be experienced in Australia’s capital cities, the real attraction is the region where the product is produced. Australia’s wine regions offer potential visitors a combination of desirable factors that drive visitation, including world class natural beauty, safety and security, interesting attractions, and friendly, local people. There are five underlying principles for successful wine and food tourism in a global context:

• The proposition is authentic
• There is a strong cultural connection
• There is a clear regional identity
• Quality and hospitality is first class
• There is a clear and consistent point of difference

 

 

Language

Chinese people speak Cchinese. If you want to sell to them, you need to market to them in their language.

Chinese visitors accept that most Australians won’t be able to converse in Mandarin or Cantonese, so if multi-lingual staff or translators are not available, there are still plenty of options to overcome the language barrier.

A conversational approach that is delivered with sincerity is appreciated.

 

 

Gifting

De-risk a bit of your investment, and sell to them before they leave.

Gifts are an important aspect of holidays for Chinese visitors, and most will be seeking to take home souvenirs of their visit. High quality, authentic gifts that reflect the experience are particularly sought after.

Establishing an emotional connection to the brand that is sustained post-visit is a challenge every wine business faces. Reinforcement of the brand story throughout the visit is critical, however a sale or sign-up to the mailing list is the best way to ensure a connection is maintained. Every bottle of wine is unique and has its own story.

 

 

Engage with the visitors

Like visitors to any international destination, Chinese tourists are seeking an authentic cultural experience, delivered by real, local people. While most still prefer Chinese food, they are increasingly eager to explore new culinary frontiers, especially if a story is attached to the experience. Sharing food is a social experience, and the provision of food options to accompany or follow a tasting experience is highly regarded. The longer guests spend at the cellar door, the more likely they are to engage with the brand and record and share their experience.

 

 

Is bigger better?

These investments are traceable with links to your devoted TMALL Store or authorized vendors. You can learn from them and collect data. Those big spenders are the ones you have your distributors invite to their wine dinners back home, and not the distributors buddies.

 

 

What does Successful Wine tourism look like?

The most important factor in a successful wine tourism project is collaboration. For the Chinese market specifically, additional factors influence visitor satisfaction.

These include:

– Personal safety and security

– Friendliness of locals

– Nature-based experiences

– Wine experiences

– Food and beverages.

– Value for money.

 

 

Leveraging KOLs to attract Chinese tourists

Wine Tourism, is a multi-stakeholder platform, while all stakeholders generating a profit and value isn’t overly complex it does require clear goals, roles, and prudent risk managing distribution of resources. This starts with identifying all the stakeholders, what they want out of it, and what tools they’ll use to get it.

Airlines & Tour providers:  Selling tickets, knowing when they’ll sell tickets, and who they’ll be selling them to. 

Hotels: Selling rooms, knowing when they’ll sell the rooms, and who they’ll sell them to.

All the other businesses in the region; same thing.

And most importantly the labels: They want to introduce their wines to new customers, and establish a better relationship with existing customers – but most importantly, sell bottles after the tourist goes back home.

The labels in Northern California and France do this well while the majority of the other old world peers have missed the boat. While wine tourism booms in Spain, Italy, and Portugal with tourism being the engine of their economies, most wine consumers would be hard pressed to name an Italian label besides Sassicia or Ornelia, Spain and Portgual? Goose Eggs.

In the minds of Chinese consumers Australian wine and agricultural products are world class, and there’s already a demonstrated demand across all middle class and upwardly economic segments for  agri-tourism.

 

 

Paid tasting experiences are best presented in a ‘tutored’ rather than self guided format to ensure the value proposition is fulfilled. Positive influence, maximum use of photos and visual materials with a laminated Chinese translation version of key brand story and of wine tasting information. Negative influence; assumption that all Chinese visitors lack wine knowledge. Presenting information about mass production.

In China’s populous cities, small voices are making a big impact. Where in many established wine countries the mass media has the power to move the market, China is a different story. Wine enthusiasts rely on their peers and social media influencers for wine information and recommendations, accessed by smartphone on popular social media platforms.

The dominance of social media has coincided with another phenomenon: the rise of China’s real consumer – where those who buy the wine are the ones who drink it, as opposed to gifting.

 

 

Here are some KOLs

Wang Shenghan
Better known by her internet nickname Drunken Mother Goose, Wang Shenghan is the founder of Lady Penguin, a social media channel and online wine retailer. The Beijing native rose to fame via Sina Weibo – a microblogging website with more than 430m monthly active users – where her candid wine review videos are popular with well-educated urban drinkers. She now has millions of fans and operates a successful wine club. A graduate of Brown University and Le Cordon Bleu, Wang’s influence has grown to the point where she now has a team of people to produce her attention-grabbing online Lady Penguin shows. The company has also branched into wine tastings and events, publishing wine guides, and operating a wine bar in Beijing’s Sanlitun district.

Fongyee Walker MW 
Education is an influential segment of China’s wine scene, with The Wine & Spirit Trust (WSET) reporting mainland China as its major source of growth last academic year. Fongyee Walker, China’s first Master of Wine, is arguably Beijing’s most skilled wine educator. Since obtaining the prestigious MW qualification, Walker – who also holds a Cambridge PhD in Classical Chinese – has committed to advancing wine knowledge in China through her consultancy Dragon Phoenix Wine Consulting. She co-founded the consultancy in 2007 with husband Edward Ragg. Dragon Phoenix was the first school in China to teach WSET Level 4 in a classroom setting. Walker, through her teaching, media articles, commentary, and social media accounts, is enhancing professionalism in the industry and promoting wine in China as an everyday pleasure rather than a luxury.

Terry Xu
Shanghai-based wine writer, educator, and presenter Terry Xu has thousands of followers on WeChat and Weibo and is a regular columnist for Decanter’s China website. Xu – another in-demand educator – trained in China’s popular import market of Bordeaux and carries trainer certifications from six other wine regions and countries. The WSET diploma holder co-founded wine consultancy and marketing agency Aroma Republic and is passionate about promoting wine culture. Xu is positive about social media’s impact on wine culture but believes the spread of good content should extend beyond wine alone. “The Chinese are becoming more connected via social media than any other country in the world,” Xu said in an interview with WSET Global. “I believe we are now entering a second era of wine promotion on social media, where you find not only wine professionals on social media channels, but also the voices and views of many wine lovers and enthusiasts.”

Chufei Churan Twins
Web celebrities the Chufei Churan Twins have made the leap to promoting wine as a lifestyle and were recently engaged by Wine Australia for a journey to visit Australia’s wineries and tourist areas, all of which will be live-streamed to millions of followers (mainly females) on Tmall, Alibaba’s retail platform. The social media stars gained legions of fans by live-streaming their overseas holidays, high-end fashion and fine dining dinners to young, upper-middle-class Chinese women who also happen to be discovering and buying wine online.

Kent Tsang
Journalist, judge, and marketer Kent Tsang is editor-in-chief of The Black Wine Guide, the brainchild of wine critic and sommelier Jean-Marc Nolant. She was previously Chinese edition manager of Le Pan magazine and deputy editor and managing editor of WINE Magazine. Her new project publishes wine reviews and ratings of high-end wines for the luxury market in the tradition of Bettane+Desseauve’s Guide de Vins and La Revue du Vin de France, which has been published in Mandarin since 2011. To promote their tasting events, Tsang’s team has harnessed the power of social media, gaining 130,000 followers (natural) in just three days after it screened videos on Douyin, also known as TikTok, a platform that hosts entertaining, eye-catching user-generated photos and live stream videos.

Oliver Zhou
Vinehoo.com’s managing director, Oliver Zhou, was the Cathay Pacific Hong Kong International Wine & Spirit Competition’s 2016 Young Communicator of the Year. He leads a team of trained wine writers and contributors to deliver popular, professional content. With official accounts on WeChat and Weibo, Vinehoo has produced innovative wine communications since 2008 and now has more than 300,000 monthly viewers. Zhou led the development of Vinehoo’s first online education program, first three-minute 2D animation video series and an integrated social media management program in mainland China. He also serves as the managing director of Vinehoo, which operates online retail store WineYun, and is a food and wine writer and translator.

Australian government to spend millions attracting Chinese tourists

Article by Kirsty Needham

Beijing: Australia will spend $5 million advertising to young Chinese urbanites to persuade them regional Australia isn’t dangerous and they should come despite the lack of free WiFi.

China is Australia’s biggest source of tourists and international students but there were fears last year these two important export industries could be damaged amid tension in diplomatic relations.

Chinese tourists are worth $11.5 billion a year to the economy.

 

 

A major tourism advertising campaign on billboards and metro stations in Chinese cities begins this week with colourful imagery of Australia’s natural scenery – plus a crocodile – and the slogan “Too Australian for words”.

 

 

 

 

Nature in Australian Cosmetics

Thinking of the beauty industry in Australia, organic comes to mind. The industry is predominantly natural skin care and beauty brands as there is access to a variety of raw ingredients, extracted from plants and nuts.

Image Source: creative commons licensed (BY-NC-ND) Flickr photo Powdered Makeup by FCastricum: https://www.flickr.com/photos/fcastricum/4074515953

Here are some of the hottest ingredients in Australian beauty products and see if you can spot them in your favourite brands.

1. Rosehip oil from the Rosehip seed

Image Source: creative commons licensed (BY-NC-ND) Flickr photo Seeding Rosehips by George Wesley: https://www.flickr.com/photos/85934826@N00

• Jojoba oil from the Jojoba nut

Image Source: creative commons licensed (BY-NC-ND) flickr photo Jojoba Nuts by Natalie Gagnon: https://www.flickr.com/photos/146208683@N07

• Green Tea Extract

Image Source: creative commons licensed (BY) Flickr photo Matcha Green Tea Extract by Marco Verch: https://www.flickr.com/photos/160866001@N07

• Caviar lime extract from the native Australian citrus fruit

Image Source: creative commons licensed (CC BY-NC 2.0) flickr photo Finger limes by Aardvark Ethel: https://www.flickr.com/photos/etheltheaardvark/5662754182/

Calendula, a medicinal plantImage Source: creative commons licensed (BY) flickr photo Calendula by Jamie Anderson: https://www.flickr.com/photos/160866001@N07

Not only do Australia’s cosmetic products contain natural and organic ingredients, they are also environmentally friendly as the industry phases out “almost all” microbeads from products, in the latest news reports. Microbeads are solid plastic particles found in products which often end up in water mains harming the environment, animals and even humans.

Microbeads in beauty products

Image Source: Into The Gloss https://intothegloss.com/2015/08/microbeads-in-beauty-products/

Although vegan cosmetics are hugely popular in Australia, only recently the country became the latest to introduce laws against animal testing for cosmetics. According to the Department of Health, “As technology has advanced, there has been an international move away from the use of animals for this purpose. Animal tests are expensive, time consuming to conduct and are questioned on both ethical and scientific grounds.” Good news for ethical cosmetic brands looking to export to China; agreements have been made with an animal rights group that will allow foreign beauty companies to sell products in China without having to test on animals first. This could be a huge opening for brands expanding China but remaining loyal to their ethics. China has the largest cosmetic market in the world, with approximately A$6 million in exports from Australia to China each year. The Chinese market appreciates Australian cosmetics for their value and trustworthiness.

Image Source: creative commons licensed (BY) flickr photo Makeup Brush Set by Sergio Santos: https://www.flickr.com/photos/143707811@N07

Australia’s beauty events provide the chance to expand professional horizons in the cosmetic industry and experience the latest products, treatments, innovations, education and equipment available to beauty experts.

Beauty Expo Australia, Sydney

Experience for all visitors interested in finding the latest products, hottest international and local talents, whilst learning the best tips and tricks of the beauty trade. The Beauty Expo Australia Education Programme is held alongside the expo, and features live workshops, demonstrations and tutorials run by leading industry experts. The expo also acts as a networking platform for Australian beauty professionals and provides opportunities for meet and greets between eager buyers and thousands of industry professionals in this fun and innovative community environment.

Key dates: 24-25 August, 2019