Modern Business Magazine July 2016 | Page 66

MODERN MARKETING Authentic Advocacy: The Game-changer for Brands in China By Asit Gupta Chinese consumers have long trusted the informal word of mouth within their social network more than any other means of communication. Over the last decade, the digital revolution has massively boosted the scale and speed of this social exchange of information and opinion. It is like Chinese whispers on steroids. Without massive media spend brands cannot grow, and without growth they cannot fund the media spend. Brand Advocacy can be unleashed for even mundane and low involvement products. China is the most exciting growth opportunity in the world for companies and brands. However consumer attitudes and the media landscape present unique challenges. In this huge market, which can be a minefield to the uninitiated, a more authentic approach to Word of Mouth marketing using Advocates can be a game changer, delivering growth at a fraction of traditional media spend. Word of mouth (WOM) recommendations of friends and family (F&F) have been consistently 66 ModernBusiness July 2016 rated as the number one driver of purchase across countries. According to Nielsen’s Global Trust in Advertising study, 92% of people trust WOM recommendations from friends and family, while the same figure for TV is almost half at 47% and for online video it is 36%. CHINESE CONSUMERS TRUST WOM EVEN MORE WOM of Friends and Family is far more powerful in China and other emerging markets, compared to developed markets. A McKinsey study on mobile phones purchase showed that WOM was the leading factor at all stages of the consumer decision journey in developing markets, while in mature markets it was no. 3 (refer figure below). In another McKinsey study, 68% of Chinese consumers said they would consider F&F recommendations when choosing a moisturizer compared with just 38% of respondents in the US and UK. There are 3 key reasons why WOM is more powerful in China, compared to other markets. History of information control by government: Most people in China under the age of 70 today, did not see any commercial advertising until the early 1980s. Even by the end of that decade, there was only one TV channel and very few magazines and newspapers. Even when more channels became available in the 90s, the content was controlled. 1 Source : “ A new way to Measure Word of Mouth Marketing”, McKinsey Quarterly, April