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A FRAMEWORK FOR UNDERSTANDING SOCIAL MEDIA TRENDS IN CHINA

Dr. P Candace Deans Barrett Miles

Why China?
Attractiveness and importance as a market for businesses: Market size Unbelievable recent economic growth 420 million Internet users as of June, 2010
Represents a penetration of only about 30% of total population

450 400 350 Millions 300 250 200 150 100 50 0 23


2000

China Internet Users 2000-2010

384

420

253 137 162

34
2001

59
2002

69
2003

94
2004

103

2005

2006

2007

2008

2009

2010

Background
July 2009: Chinese government bans popular Western social media sites The Great Chinese Firewall Led to emergence of domestic companies

Social Networks
Western/global China

Online Games and Virtual Goods


Estimated 15 million urban white-collars spend more than 5 hours a day on Happy Farm, according to data from the games creator, Five Minutes TenCent did $719 million USD in revenue from sales of virtual goods alone in 2008
h-p://venturebeat.com/2009/10/29/china-qq-farm-happy-farm-games

Search Engines / Web portals


Western/global China

Video
Western/global China

Microblog
Western/global China

2010: ~ 17 million users

Used by over 90% of Chinese Internet users - Forbes 2011 estimate: ~140 million users

E-commerce
Western/global China

190 million registered users in May 2010 2009 year transaction volume: $29 Billion USD

Blogs, Forums, User Review


Western/global China

Sample Case Study Lessons


PepsiCo: used lot of right sites and channels but campaign still ineffective because the content theme did not align / appeal to target audience Sony and Clinique had great success reaching target through creating engaging TV miniseries broadcast on Todou and Youku GM was very effective by sponsoring an online game -Parking Lot- relevant to brand and products

Recommendations for companies


Strategies from one market don't necessarily transfer to China Primary users = youths & young professionals Government poses risk/challenges Games highly popular and present great sponsorship opportunity Mobile is critical: +65% users of Internet users Blogs directly impact purchasing decisions

What to watch for


Potential entrance of Western companies into China Potential expansion of Chinese companies to international markets Chinese social, cultural and/or political changes due to access to information and others--which has never existed before

Broad social implications


Social media's role in "Arab Spring" sociopolitical revolutions Similar story in China with rising unrests Chinese government actions amid concern for social unrests

Conclusions
Rapidly changing environment so constant/ continual monitoring is necessary U.S. companies need to know that popular Western sites may be banned or censored in China Companies need to have specifically tailored social media strategy for the China market

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