Developing business in China: some successful stories

Knowing the target markets in detail and adopting product localisation strategies is essential when a business wants to sell in a foreign country with laws and cultures different from its own. This is more important when a business wants to build a stable position in the target country (localisation) and even more so when it comes to China, where marketing strategies in particular have to be completely rethought. Due to diplomatic issues, the Chinese government has decided to block foreign (mainly American) internet companies in their own country. Here, there aren’t search engines, instant messaging apps or social networks to which the rest of the world is accustomed. Google, WhatsApp, Facebook, Instagram, YouTube or Twitter are banned, replaced by Baidu, Qzone, Wechat, Youku and Sina Weibo. It is therefore mandatory to adapt communication to this digital segment. But many nailed it, and here there are some success stories that can now count on the revenues from the Chinese market.

The Charlotte Tilbury case: a successful strategy
The well-known British cosmetics brand Charlotte Tilbury debuted in the Chinese market in 2021, gaining great popularity among women in a market now considered saturated, especially because of nearby South Korea, considered the number one cosmetics country in the world with its very popular ‘K-beauty’. But thanks to the collaboration with well-known Chinese influencers that allowed it to build up a good fan base, the opening of pop-up shops in large cities where products could be tested, and the skillful calibration of physical shops and digital tools, the British brand managed to make its way in this market, earning a place of honour.

The Disney case: LinaBell, an emancipated fox

In September 2021, a pink and cuddly-looking fox named LinaBell made her first appearance at Disneyland Shanghai. The character is only present in China and it has never starred in any Disney movie, but has nevertheless become extremely popular within a short period of time. This was solely thanks to Chinese social media, which hailed her to such an extent that even just to meet her inside the park there was a queue of several hours. Moreover, here is her official presentation provided by Disney: “She is a fox with an inquisitive mind and the intelligence that supports it. She finds joy and excitement in solving problems and mysteries”. Although the fox looks adorable and therefore attractive, her presentation breaks the stereotypical Disney’s female characters, which have always been characterised by sweetness, naivety and emotional dependence (especially on a fictional man). This has caught the attention of many young Chinese, attracted by the ideal of an emancipated and independent woman that is becoming more and more established in the collective imagination, generating additional revenue for the company, especially in merchandising.

Tackling localisation strategies correctly – i.e. seeking digital and physical positioning even in distant markets is possible for any product – is essential for gaining space in the huge Chinese market that is very attentive to its values, customs and traditions that are proper to the historical moment they are living in. Here lies the difference, and for this reason it is essential to know this market directly, to be there and to have first-hand information.

By the Shanghai office of Pangea Studio Associato
For information: Eileen – tel (0086) 21 56961365; shanghai@studio-pangea.com

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