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The North Face China Finding True North (DIR)
The North Face China Finding True North (DIR)
The North Face China Finding True North (DIR)
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Competition
Given all the opportunity there is, outdoor apparel is a fiercely competitive market. There are 325 international outdoor brands
and 229 domestic brands registered in China, and because apparel is a fragmented category with low barriers to entry, there
are a large number of brands trading on price.
Position in the market
The North Face is still an upstart in this category, with mainland China sales of just US$90 million in 2011. At the start of 2011,
awareness of the brand was just 7% significantly lower than Columbia (18%) and Toread (14%).
Objectives
Our key objective was to keep up with category sales growth for 2011. But we also believed that we had to peg our results
against our key rival, Columbia, because the outdoor category is growing so quickly from a low base and is consolidating more
every year. The North Face was trying to eat into Columbia's market share quickly, by planting a flag firmly in the ground as
the authentic outdoor brand. Our aims were to:
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Outgrow a rapidly expanding category (estimated to be 30% sales value growth in 2011)
Establish The North Face as the most 'authentic' outdoor brand in China.
With the strategy in place, copywriters started playing around with the cultural context of 'north' and 'never stop exploring'.
They struck on the Chinese idiom 'can't find North', and realised it could be turned on its head as a rallying cry to join a series
of outdoor activities.
The TNF team then designed a route from Guangzhou in the south of China, to Mohe in the far north, that took in 10 cities
along the way and recruited people through social media to join our mission 'to the North'. In each city, the 'True North' team
designed a series of outdoor activities (hiking, mountain biking etc) that took people from the centre to the northernmost point.
At each checkpoint, people were able to unlock 'achievement badges' via their phones, which were then shared across social
media.
The top nine performers in the first nine cities were invited to join an exclusive group that would set out from Mohe, in northern
China, to find the country's 'True North'.
Media mix
Remaining faithful to The North Face's aim to plant a flag of authenticity, and so differentiate it from its rivals, this campaign
was built around outdoor events on the 'True North' trail. But to kick the buzz up a level:
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We built installations in our stores so that people could track the team's progress
We spent less than one-third of our budget on strategic print/OOH to build awareness of the event
We created a campaign website, integrated with social media, where people could sign up to events, track progress and
get tips for getting out there
We partnered with Weibo and location-based, mobile social network Jiepang.com to allow people to check in and win
badges that acknowledged their achievement.
Digital: US$540,000
Activation: US$300,000
PR: US$250,000.
every US$1m The North Face spent on media in 2011 returned 1.15% sales growth
every US$1m Columbia spent on media in 2011 returned just 0.35% sales growth.
162,544 badges unlocked by Jiepang.com mobile check-in (the highest number in the history of the site)
More than 50,000 followers on Sina Weibo, three times more than just a year earlier
(Source: Maxus/GroupM data tracking, Agency PR tracking report, Sina Weibo analytics, Jiepang.com, IPSOS ASI Brand
Awareness Report, The North Face China Sales Report 2010, 2011)
Improve perception of The North Face as the most 'authentic' outdoor brand in China
Interestingly, The North Face's awareness to intention-to-purchase conversion rate was significantly higher than its rivals in
2011, suggesting that those with any interest in the category now see TNF as the 'real deal'.
(Source: IPSOS ASI Brand Awareness Report, The North Face China Sales Report 2010, 2011)
Lessons learned
The Chinese dream is changing
The surge of materialism and fierce ambition triggered by Deng Xiaoping's reforms in 1978 has been remarkable for its
endurance. But now it is changing, slowly and irresistibly. While 'face' will always be an important concept in China, now
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success is not being measured by the accumulation of 'things'. The middle-class Chinese are on the cusp of post-materialism.
Outdoor brands have to lead by example
In a culture where outdoor exploration has a short history, outdoor brands still have to show people how. Everything about the
brand has to embody the outdoor lifestyle. These brands should have the courage to take up the challenge of building a
culture, rather than satisfying themselves with flogging kit.
Acknowledgement
Brands should create social environments that incentivise exploration, by rewarding explorers with peer approval. The key to
the success of this campaign was the use of achievement badges that could be unlocked at checkpoints and shared with
friends. Although the western exploration ideal has a romantic strain of isolation and self-reliance, the Chinese don't see
connectivity as contrary to the experience of the outdoors.
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