Chinese Market Growth
Chinese Market Growth
GROWTH
A MARKETING GUIDEBOOK
FOR UNIGRAF
FEB 2021
While it is easy to think that an accomplished and innovative product can attract a lot of
attention, a complex and dynamic business environment can tell us otherwise. It requires
excellent preparedness and strategic ability to make the business successful.
This book builds on the argument that it is time for innovative companies such as Unigraf
to rethink the traditional 4P’s of marketing for today’s B2B reality. In the 21st century,
more and more companies embrace customer-centric marketing in order to succeed. As you
shift your mindset from products to solutions, place to access, price to value, and promotion
to education, you will be able to maximize the benefit for both your customers and you.
ABOUT CHINA
C H I N E S E M A R K E T P E S T E L A N A LY S I S ( V I D E O
ELECTRONICS INDUSTRY)
Political factors— The government regulations and the Chinese market had become
inextricably intertwined. The socialist Chinese government is known for changing policies
overnight and this affects both the Chinese and foreign traders. As a result, having a long-
term marketing plans becomes almost an impossible concept in China.
The strong presence of the Communist Party is also another factor that all businesses must
take into consideration. If any product or service or any of its segments are suspected to be
against the ideals of the Communist Party, then it will be strictly banned. Hence, all
advertising materials and marketing strategies need to be revised carefully when dealing
with the Chinese market.
The last political factor that affects the Chinese market is the government’s international
trading policies. The recent trade war with USA had deepened the impacts on the Chinese
market and the American traders who operate in that scope.
In recent years, the country has been pushing a number of projects and policy such as "Made
in China 2025", "Special Action for the Innovation and Development of the Smart Hardware
Industry (2016-2018)", and " Chinese Robot Industry Development Plan". The government
has provided great support towards specializing and streamlining the development of the
video electronics and information technology manufacturing industry. Therefore, the video
electronics and information technology manufacturing industry has gradually become the
industry field that various manufacturing companies compete for.
Economical factors— Before the Coronavirus outbreak, the Chinese economy was
performing at an all-time high and with the recent GDP rate it was predicted to soon
surpass the U.S. economy. The consumer purchasing power is continually increasing and
meanwhile the labor costs are some of the lowest in the world. Subsequently, the economy
attracts more foreign brands to invest. Foreign brands profit from hiring Chinese workers as
much as selling to Chinese consumers.The urbanisation process in China is also helping
expand its economy to become a more consumer friendly one
The two primary factors that can slow down the Chinese economic growth are its current
inflation situation and the rise in property rates. There seems to be no effective measure
being taken to control the inflation as of now, although there is a notice from the central
banks asking other banks to lend less money. As a result, there is a steady growth in interest
rates which is not helpful towards the growth of small and medium enterprises.
Trade policies is another major factor that affects the Chinese economy. Many
large companies find it difficult to enter the Chinese market due to its high import duties
and some of them are only able to penetrate the market recently.
In recent years, the per capita disposable income of residents in China has grown rapidly,
and the consumption structure of residents is changing from the consumption of survival
demand to spiritual consumption. Under this premise, combined with the gradual
improvement of a series of social factors such as science and technology and culture,
residents' consumption has gradually shifted to spiritual consumption products that focus
on technology and culture. A typical example is the mobile Internet services and software
industries driven by hardware products such as tablets and mobile phones. As a result, it
also provides a huge potential for the development of the electronic information
manufacturing industry.
At the same time, Internet giants, technology giants, traditional hardware companies, etc.
have also deployed the smart hardware market, driven by industry giants, the market has
gradually matured.
Social factors— Cultural values account for a big share of the social trends in China.
Factors such as population growth and family size, dictate how the market operates, thus it
also ensures that social values are kept in line with the cultural needs. The Chinese literacy
rate is over 90% and a huge portion of the population has access to the internet. Meanwhile,
consumer behavior is quite different than the rest of the world.
Chinese culture is profoundly tied in with its Communist political setting. This means that
goods are often regulated by the government. The current wave of urbanization in China is
also affecting the social behavior of China and economists claim that there will be a strong
surge towards internet-based buying in the near future.
Generation Y and Z from the 90s and 00s have gradually become the main consumer
groups. Internet elements have also been integrated into all aspects of our lives, e.g. home
furnishing, travel, etc., which is conducive to the development of smart hardware; user
consumption habits are also moving towards high-quality, better-serviced products.
Technological factors— The biggest technological factor benefiting the Chinese market is
its internet usage. There are around 883 million internet users in China as of 2019, and this
dictates their purchasing pattern. E-commerce is another important factor that has increased
the Chinese population’s purchasing power. The website Taobao is China’s biggest e-
commerce store and a huge percent of the population accesses all their goods from this
platform.(Farooq, 2019)
With the advancement of a series of technologies such as artificial intelligence, sensors, the
Internet, cloud computing, and big data, smart hardware will become more perfect in
human-computer interaction mode and intelligent performance.
Environmental factors— China is one of the most polluted countries in the 21st century.
Therefore, many industries have to spend extra on securing environmental standards for
production. This, in turn, raises the assembly cost and reduces profit margins. So, China’s
immediate concern should be with breaking up systems that negatively affect their
environment. (Farooq, 2019)
Apart from this China is aiming to enter the electric vehicles market which will also help
reduce the pollution levels in their urban areas. Environmental factors need to be kept in
mind by all countries operating within China and globally as well.(Farooq, 2019)
Legal factors— The pressing legal issue relating to the Chinese economy is the formation of
e-commerce legislation and its various segments such as tax policies, intellectual property
rights, consumer rights, etc. E-commerce is still a fairly new sector in China and the
development of its legality will largely impact the current developmental model that the
economy is following.(Farooq, 2019)
Another relevant issue is trade-related legalities. This is under constant change and is
usually poised towards prohibiting the establishment of a neoliberal economy. However, it is
expected that the import tax will be reduced once the economy reaches its full capabilities.
(Farooq, 2019)
K N O W YO U R P L AY F I E L D 1 - R E C E N T T R E N D S I N T H E
VIDEO ELECTRONICS INDUSTRY
On the one hand, with the development of artificial intelligence, especially after the human-
machine war of Google AlphaGo, the popularity of artificial intelligence continues to rise,
and society and people gradually understand artificial intelligence. On the other hand, based
on the country's long-term investment in "Internet +" and artificial intelligence, and R & D
in science and technology, the future of artificial intelligence in the manufacturing and
software industries is very promising in the next few years.
VR / AR market is growing
Over the years, the Chinese government has been promoting "Made in China + Internet",
building several platforms for manufacturing with innovation on the national level,
implemented a number of smart manufacturing demonstration projects, and started major
projects such as building strong industrial foundation to improve the manufacturing quality
and efficiency, environmentally conscious manufacturing, and high-end manufacturing. In
the process of integrated development of manufacturing and the Internet, the big data and
integrated circuit industry has ushered in a period of industrial development opportunities.
With the above-mentioned trends in the relevant industry, it will be a good time for Unigraf
to build a strong brand in the Chinese market.
K N O W YO U R P L AY F I E L D 2 — 2 0 2 0 C H I N E S E
CONSUMER TRENDS
Looking back from 2017 to 2019, China's consumption pattern is constantly changing. From
the "upgrade and renewal" in 2017, to the "new refinement and new smart" in 2018, to the
"retrospection and return to trueness" in 2019, we can see that Chinese consumers are
constantly adjusting their consumption structure, and the consumption concept is
undergoing profound changes, from conspicuous and symbolic consumption to self-seeking
consumption, from "need" to "necessary", from function-oriented to focusing on culture and
experience. Today's Chinese consumer market is at the intersection of traditional
consumption and new consumption, the diversification of consumption, and the release of
personalization.
In 2020, Chinese consumers are feeling more optimistic about expected consumption.
However, recent consumption and life planning tend to be more realistic and pragmatic,
people are more focusing on investing in self-spiritual learning and other aspects. After
seeing the growth in the buying power and pursuit of better life quality, Chinese consumers
are still evolving and condensing new consumption tensions.
In the mean time, there is ten important consumption trends observed on the market:
1. Full-scenario intelligence: With the development of 5G, we will depend more and more
on intelligent technology it will change our lives significantly.
2. Smarter consumers: Almost everyone can look up information anytime on their phones,
most of the consumers will dig into many aspects before they decide to make the purchase.
3. Tendency to buy local brands: From advocating international brands to trusting Chinese
local brands.
4. Open innovation and crowdsourcing: Nowadays, consumers use brands to express their
attitude towards life and they want to get inspired by the vision and the story of the brand.
Many brands listen to the crowd for innovation, create a product that is very attractive for a
certain segment of the market.
5. Strong brand image is key: With the information people received every day, it is crucial for
a brand to deliver a strong message in a short period of time.
6. Focusing on regimen: People are paying more attention to health and well-being.
7. Virtual idols become popular: Y and Z generation are gradually becoming the main
consumer group on the market, deeply influenced by Otaku and ACGN, the potential market
of virtual idols is growing. For example, LV had successfully launched a campaign using one
of the famous virtual idols.
8. Gaming market is growing rapidly: the e-sport industry is gradually maturing. The
number of e-sport users in China reached 440 million in 2019. As the influence of e-sports
has increased, more and more brands have begun to add e-sports to their marketing
strategies, and "e-sports commerce" is emerging with vitality.
9. Time to put our minds at ease: People either look for alone time for spiritual relaxation or
change of a scenario to interact with a new space.
10. The elderly’s new consumption trends: The elderly population (over 60 years old) in
China has reached 250 million, which accounts for about 18 percent of the population. With
the popularity of the internet, consumer behaviour among the elderly has become younger.
In 2020, consumers' pursuit of a better life will rise to an even higher level with the 5G
wave. From these major trends, we can observe a significant surge in quality requirements
How many hours people spend
on e-sport in a day
1%
6%
51 %
41,9 %
Less than 1 hour Less than 2 hours Lessthan 3 hours
More than 3 hours
and consumption of video electronics products from the Chinese consumers. This
highlights a great timing for Unigraf to develop its presence on the market.
C O M P E T I T O R A N A LY S I S
K N OW YO U R C O M P E T I T O R S — W H O A R E T H E Y ?
Competitor categories
• In house solutions: In order for their products to meet the standards, and save seemingly
quite a big amount of costs to buy certified test equipments, many small to medium size
Chinese companies tend to come up with a test solution of their own, appropriate or not.
And it is believed to be the most common form of competition in China.
• Local small companies: There are some local companies which also make somehow
similar testing equipments as us, as expected, the prices are much lower. However, the
quality and completeness of the product is also far behind us.
• Global companies: Another form of competition is global companies that produce even
wider range of testing equipments. These companies are more product-oriented than
solution-oriented. For this form of competition, we are able to provide more flexible
solutions to customers than they do.
C O M P E T I T O R M A R K E T I N G A N A LY S I S
Website: Most of the companies display information about their products on the website.
However, the SEO rankings of these companies might not be as good as us when relevant
keywords are searched on Baidu. (China’s most popular search engine)
Social media presence: In China, they use their own social media, the most used social
media is QQ, Wechat, Gaga and Weibo. Teledyne Le Croy has Wechat and Weibo accounts.
Astro design has Wechat public account. Most of the global competitors are using these
channels for distributing information. Moreover, there are some articles about Keysight’s
products available on Wechat (search engine: Sogo wechat).
Local marketing partner: Most of the main competitors have resellers in China just like we
do.
CURRENT MARKETING ACTIVITIES
PRESENT SITUATION
• Unigraf website: Web page is Unigraf ’s main marketing channel, we are recently
launching a new one to deliver the messages to our customers in a more effective way.
The birth of new Unigraf website also includes an ambitious content marketing strategy.
• Resellers: Unigraf does not sell directly in China, we sell through only resellers. Resellers
also have their marketing strategies in place. However, it is felt that the evaluation of this
area from Unigraf is not yet in place. And the communication between Unigraf and
resellers has room for improvement.
• Email Marketing: Customers can contact us through Emails and we also send out
newsletters though Constant Contact (E-mail marketing tool).
• Social media: We currently post regularly on WeChat. Since we have only created the
account few months ago, more content is needed to attract a larger numbers of followers.
We also post on LinkedIn,
After launching our new website, we will measure our effort according to the following
steps:
• Visibility: How do we rank on Baidu? What is our average position in SERP (search
engine result page)?
• URL and meta descriptions: Shorten URLs and meta descriptions to include primary and
secondary keywords.
• Title and headings: Attention-grabbing titles and always include SEO keywords. Try to
find a long-tail keyword that is a little less competitive to help ranking high on SERP.
• Backlinks: Other sites link back to Unigraf, it is a suggestion to the search engine that we
are a trustworthy website.
• Spam score: Remove bad backlinks from low-authority websites. Either ask them to
remove or disavow the link.
• Check for broken links: Broken links are bad for SEO, be on the constant lookout for
those.
• Website content: Check for any duplicate contents which is a SEO red flag and de-index if
needed.
• Auditing the images: Write good Alt text and compress the image to improve load speed.
(Tool: ImageOptim)
• Page speed: page speed will affect SEO and overall user experience. (Tool: Chinaz)
Product info on
SEO ranking Customer visit Feedback from
company
on Baidu frequency customers
website
ESE
SYMHTEC
Souzhou Podar
Full Wise
H O W D I D W E P E R F O R M — S W O T A N A LY S I S
Strengths Weakness
• Run a better Chinese website than most of • Current communication routine with
the competitors. resellers.
Opportunities Threats
• The competition isn’t exploring new • Our competition outranks with domain
content delivery methodology (blogging, authority + many search results we’d like
ultimate guides, etc.) to own. (Chroma)
• Most of our competitors don’t rank very • Our competitor’s reseller is doing a better
well on baidu and Sogo Wechat. job on their website (e.g.Keysight)
• SEO: SEO is currently very competitive on Baidu, especially for common keywords.
Luckily, our keywords are quite unpopular. We have a much better chance to rank high on
Baidu than other type of companies. However, SEO on Wechat search (Sogo) isn’t as
concerned by most companies as on Baidu, this can be a great opportunity for Unigraf. It
will be good for Unigraf to acquire a public Wechat account, for people, a public account
means more trustworthy source and it also ranks better.
• Social Media: Consider using QQ Wechat or Weibo. Develop LinkedIn profile with
Chinese contents.
• Reporting: Create a marketing result reporting guideline to get feedback from the team
regularly.
• Marketing partner: Getting a Chinese B2B marketing partner to help with managing
different accounts in China and contact relevant magazines to post articles, and help
getting our videos on the major video platforms. Report marketing results to Unigraf.
With our current budget and resources, online marketing is the most suitable option.
Official social media accounts can help companies build a good image and have a voice on
the market; community channels can help companies to carry out cluster bombing against
core target user groups to create hot spots and form phenomenal events.
I am advocating the use of online marketing to continuously output content, building the
relationship between our company, our products, and our users, using videos, pictures, and
text to elaborate from different aspects, to bring the company and users closer, and to shape
the image and reputation of the company.
B2B MARKETING FRAMEWORK
Solution(Product)
Instead of telling how amazing our products are, we need to tell the story of how we solve
one problem after another. Unlike some of the global companies, Unigraf is able to be more
flexible with the solutions we provide to our customers. We are able to create solutions
tailored just for our customers’ products.
Access (Place)
In China, we sell through resellers, it is not only important to build an integrated cross-
channel presence for Unigraf but also for resellers. Customer should have access to
information about our products through many channels. For now we have a Chinese
website, and official WeChat account.
Value (Price)
Connect the price with the value of the product, instead of competitors’ price or profit
margins. This aspect will be important to our business, since our products are of high
quality and with relatively higher price.
Education (Promotion)
Our current marketing strategy will focus one providing information specific to customers’
needs at each stage of the buyer journey.
In the different stages of the purchasing decisions, the buyers have very specific information
and interaction needs.
The audience targeted in the SEE stage probably don’t even know our product yet, but they
can totally be interested in topics related to our products.
https://www.more-fire.com/en/about-us/see-think-do-care/
MODERN B2B BUYER’S JOURNEY
In the old marketing funnel, typically there is an interested buyer, then he follows a
controlled, predictable, path. As of 2020, these tactics aren’t as effective as before, for four
main reasons:
• Half of these buyers are now millennials, cold calls simply don’t work.
• Modern buyers do their own online research. They make an average of 12 searches before
getting in contact with a vendor. Even in industrial and manufacturing industries, 67% of
purchases are influenced by E-commerce. (Blue Corona, 2019)
• More people are now involved in B2B purchase decisions, a typical buying group
nowadays includes about 6-10 people, even though usually C-suite executives have the
final sign off, most of the time the non-C-suiters also have a say.
• 90% of B2B buyers now go back and forth through the sales funnel, looping back and
repeating at least one or more task in the buyer’s journey
The modern B2B buyer’s journey
Here we can easily build
the See-Think-Do-Care
model into the modern
buyer loop.
Source: bluecorona.com
There is usually more than one person involved in the decision-making process. The “buying
committee” often includes people from different backgrounds in the firm, such as C-level
executives, engineers, finance, etc.
You can split the buying committee into four main groups: (Leake et al., 2012)
• The change agent is the main point of contact. This person is leading the project and
evaluating suppliers. The biggest concern for the change agent is our product’s success,
because the person’s reputation is on the line. This is why we need to establish a strong
level of trust with branding, so the change agent will feel comfortable with choosing us.
• The executive sponsor has the ultimate veto power. If he is not happy about your product,
the purchase will never go through. Trust is also the key factor when we deal with
executive sponsor. The bigger the company is, the more the executive sponsor will want to
work with an established brand.
• The check signer may be in a sourcing or procurement role. This person will make sure
the pricing lines up with the perceived value and all the requirements are met. The check
signer is usually risk-adverse. Trust here remains a key factor, this group wants to know
that our business is stable, and we will be around after the company makes the purchase.
This group is also vey value-driven, they want to feel the product is worth every penny
they pay.
• The influencers don’t have the veto power, but they can influence the decision if they don’t
think our products meet their needs. The influencers mostly want to feel well-informed,
so the message here should be more product-focused and tactical. They want to know how
our products can make their job easier. If we can get the influencer to be excited about all
the benefits our products can bring them, they can surely influence the buying decision in
a positive way.
After dividing the prospects into groups and understanding their pain points, we can build
the message to convince each group our product is the best choice.
MARKETING PLAN
LAUNCHING NEW WEBSITE— OUR 24-HOUR SALES REP
Unigraf has launched a new global website in April 2020, the Chinese version is expected to
go online latest in June.
Since Unigraf is doing business in a more established market, most of our content on the
website is product-centric. However, we are working towards a more hybrid approach
(produce both product-centric content and educational content for the industry) to appeal to
our audiences as the industry leader.
A professional B2B website is the best marketing strategy for any stage of the marketing
funnel. A sales-driving website needs to be fast, secure, mobile friendly, actionable, and
professionally designed.
Mobile friendly: People browse information on their phones very often, especially the
Chinese! More than 50% of their lives happen on WeChat. There is no telling when and
where the potential customers will find our information, we must be prepared.
Professionally designed: Great navigation and visual experience can encourage revisit.
There are about 6 tasks a B2B buyer has to go through before any B2B purchase: (Blue
Corona, 2019)
1. Problem identification
2. Solution exploration
3. Requirements building
4. Supplier selection
5. Validation
6. Consensus creation
To guide the target audience through the buyers stages, our B2B marketing plan should
create a customer experience that solves for each task. What we could do for the first three
tasks (demand generation) are content marketing, video marketing and SEO. We can target
the last three tasks (lead generation) through PPC search ads, remarking, affiliates,
testimonials, partnership, content marketing and SEO.
We need to first understand the specific task buyers need to go through on the purchase
journey, while keeping in mind which group of the buying committee are we speaking to.
Then we can provide information and tools specifically for the task through their preferred
channels.
• Infographics
• Webinars
• E-books
• Blogs that show your expertise in the industry (think: “how-to ” , and “ultimate guide”
blogs)
• Tutorial videos about the products/services and how they benefit your target audience
• Press coverage
• News releases
• Case studies
• White papers
What buyers want in a nutshell: customer/peer examples, content from credible sources,
and short, digestible content.
It’s a great way to help our existing customer base stay aware of new products, insights, and
deals/savings from Unigraf.
• Monthly newsletters
• Blog newsletters
• Webinar notifications
- Zhihu: a platform for everyone to ask questions, you will get more followers when you
have an answer that is very helpful.
• Promote posts for other accounts in exchange for them to promote our posts. (In this case
we could do it with resellers’ accounts)
• Use paid advertising. Pay existing popular official accounts to promote us or pay existing
professional group chat to advertise in the group. This is the most expensive option.
• High quality content, here are some tips for WeChat articles
- Font size.
- In terms of paragraph, each paragraph should be as short as possible.
- Try to post pitures and tell a story instead of just posting text.
- Position yourself in the industry, find out where you are with the audience.
- Less people are reading on the weekends. Do not post articles on weekends.
- With the help of Sina Weibo referrals. According to Google statistics, Sina Weibo’s
referral sources are more than twice as high as Tencent Weibo.
- Every article on WeChat is reviewed by a real person. (No political keywords allowed)
Track our marketing campaigns, test new strategies, tweak the campaigns based on the
results, and repeat the process.
SEO ranking tools for Baidu:
• Dragon metrics
• Screaming frog
• Baidu statistics
• Search engine real estate evaluation, including current search results rankings, content
authority, and search opportunities
• Product, service, and value proposition evaluation, including what sales funnel you and
your competitors are encouraging potential customers down (to identify ways to
nurture more opportunities and leads into sales)
Action plan
Short-term: lead generation, forward potential customers to resellers (business social media
platform)
• Comb through registered users on the current website, reach out to them through E-mail.
http://www.chanyeguihua.com/2886.html
https://baijiahao.baidu.com/s?id=1656345592436382013&wfr=spider&for=pc
https://zhuanlan.zhihu.com/p/110510727
Ch3:
Anon, How to conduct an seo analysis to Climb SERPs for 2021 (+ SEO evaluation tools
and checklists). Available at: https://www.bluleadz.com/blog/what-is-an-seo-analysis-and-
why-is-it-important [Accessed February 1, 2021].
CoSchedule, 2020. SWOT Analysis: How To Conduct Your Marketing SWOT. CoSchedule
Blog. Available at: https://coschedule.com/marketing-strategy/swot-analysis/ [Accessed
January 12, 2021].
https://mp.weixin.qq.com/s?
__biz=MjM5OTI5MTczNA==&mid=402399291&idx=1&sn=bcf58fd6ad54208e9eefc4509
97e909f
Ch4:
Anon, 2019. The Ultimate B2B Marketing Strategy Guide for 2020. Blue Corona. Available at:
https://www.bluecorona.com/blog/b2b-marketing-strategy-guide/ [Accessed December 31,
2020].
Ch5:
Anon, 2019. The Ultimate B2B Marketing Strategy Guide for 2020. Blue Corona. Available at:
https://www.bluecorona.com/blog/b2b-marketing-strategy-guide/ [Accessed December 31,
2020].