Chinafication is a phenomenon that has been creeping up on us. China is 1/5 of the world’s population so brands are adapting for this market. Since the onset of Covid 19 China has turned increasingly inward. There has been a real – a decoupling
Businesses have been forced to allow their China entities to be more independent.
There are key areas that are increasingly difficult:
👉Data – New regulations
👉Money – flows tightened
👉Products – increased border checks, reduction in Daigous
👉People – flow from international to China, foreigners leaving and Chinese not travelling
Successful International brands have been quick to recognize this and adapt to local trends
In this podcast episode I speak to Rachel Daydou from Fabernovel based in Shanghai about how brands are Chinafying their strategies.
What is Chinafication – it is brands becoming more sophisticated in the way they operate in China.
I have talked here many times about localizing for China – it is truly essential for success.
Here are 5 key areas where brands are adapting as identified by Fabernovel’s report:
1️⃣ Brand DNA – a local Chinese brand name
2️⃣ Product – adapting formulae or creating new products fit for local needs
3️⃣ Channels – need to use local channels
4️⃣ Communication – your story, hierarchy of messaging
5️⃣ Experience – O2O, pop ups and cooperations with Chinese brands
National Tide (国潮) the wave of nationalism that has led to the rise of C-Beauty has made foreign brands stand up and pay attention.
So if you are operating in China now or planning on entering what are the areas that are crucial to consider:
- Brand messaging & Product story telling
- Influencers to get your message out locally
- Coops with Chinese local brands to amplify your message
- If you are able O2O events
In conclusion: Why should international brands localise for China?
The days of Brands talking to consumer from the top down are gone. Successful Beauty brands all over the world are creating communities and conversations with their consumers.
China is no different. Over the past 5 years Guo Chao国朝 National Tide has exploded in popularity giving rise to many Chinese beauty brands. But International brands are still very much desired.
However to be a successful international brand in China now you need to prove you suit the local Chinese consumer’s needs. You need to appeal to their sensitivities and fully grasp just how different the China market is. Creating a tailored China strategy is essential – naming, messaging, assets, talent, social channels and NPD are all things that need to be considered.
Suggested Article to Read:
If you want to know more about Chinese Brands, you may want to read the full article on my interview with Linda & Ching about the Importance of having a Chinese name for your Brand.
Watch the Full Podcast Interview here.
