KEVIN CHOI HAVAS GROUP - HEAD OF STRATEGY, GREATER CHINA
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MARKETING
OPPORTUNITIES
AFTER COVID
KEVIN CHOI
HEAD OF STRATEGY, GREATER CHINA
HAVAS GROUP
Kevin Choi • Oversees strategy development in Greater China for
Head of Strategy, Greater China
Havas Group Havas Group
• Covers both Havas Creative and Havas Media
• 11+ years marketing experience in China, at media
agency, creative agency, and client-side
• Category expertise in FMCG, technology, healthcare,
travel & tourism, luxury, and skincare
• Winner of Gold Effie Award in China for marketing
effectiveness for Adidas
• Author of “Red Cool,” the first book in China exploring
how young people define “cool”
PART OF EUROPE’S BIGGEST CONTENT AND ENTERTAINMENT GROUP
A FEW OF OUR CLIENTS
HOW DO I GROW MY BUSINESS IN 2021 AND BEYOND?
THE COVID VACCINE IS HERE…
CONSUMER BEHAVIOR THAT SHIFTED IN 2020 ARE LIKELY TO STAY FOR GOOD… WE ARE MORE WE ARE WE USE HEALTH- BUYING MORE THE HOME CONSCIOUS ONLINE MORE
BUT TRACKING DOWN THE CONSUMER
CONTINUES TO BE ELUSIVE…
HOW DO I GRAB THE UPSIDE OF CHANGE?
THE OPPORTUNITIES
THE LATE BIRD THE OFFLINE EVERY DAY IS A
ALSO GETS THE EXPERIENCED SHOPPING
WORM ONLINE FESTIVAL
ADVERTISING EMBRACE
GETS OUTSIDE COLLECTIVE
THE BOX INDIVIDUALISMTHE LATE BIRD ALSO GETS THE WORM
COVID-19 HAS RESHAPED CONSUMERS’ DESIRES
74%
SEEK DAILY LIFE ENJOYMENT
76%
PROUD OF MY COUNTRY
78%
APPRECIATE AND PROTECTIVE OF NATURE
Ranking +8 vs. 2019 Ranking +14 vs. 2019 Ranking +3 vs. 2019
…LEADING TO THEM DISCOVERING NEW
BRANDS THAT THEY LOVE
Sources: Kantar, 2020
13A YOUNG MAKEUP BRAND
EMERGES…quick to leverage live-
streaming and partnerships to build
connection with young girls in China.
Achieved RMB 100M monthly sales on
Tmall store. Became #2 bestselling
brand among post-00s. (As a
benchmark, the Chinese brand Jahwa
experienced a sales decline of 14.8%
during 2020 Q1) Leverages digital channels such as Partners with China National Geographic
Little Red Book and Li Jiaqi’s to launch “China Geographic” eye shadow
livestreams to reach young collection
consumers
14A NEW MARKET ENTRY
SUCCEEDS…quick to
leverage the health trend as
well as KOLs to build a
community of likeminded
women to threaten Nike’s and Leverages multiple tiers of KOLs Worldwide sales recovered quickly during 2020 Q2,
Adidas’s share of market. and “circle marketing” to promote with China’s growth “the most prominent growth
branded activities such as a virtual market in all regions”. China’s sales volume increased
half-marathon to build brand and by 30% YOY, with e-commerce business increasing
drive sales by 136%.
15A BRAND EXITS…
Superdry says goodbye
to China after failing to
adapt to changing
trends in Chinese
fashion.
16HOW TO SEIZE THIS OPPORTUNITY
Quickly react to changes in market trends.
Brands don’t need to be mature brands in China
to succeed, they just need to be quick to react.
Get closer to consumer to understand their
feelings. Pay attention to consumer sentiment and
craft your communication around it.
Make it easy for consumers to learn about you.
Brands need to be very sharp about their value
proposition, and leverage KOLs and digital tactics
to deliver relevant content and build a following.
17THE OFFLINE EXPERIENCED ONLINE
MONTHLY ACTIVE INTERNET USERS INCREASED
DURING COVID AS A WIDER AUDIENCE LOGS ON
10 thousand Monthly active users of China Mobile Internet 2020 Q2
YOY
growth
Monthly active users of China Mobile Internet
Monthly active
100 million user size YOY growth
7.04 million growth in 2019 7.96 million growth in 2020 Jan-Sep
New Tier1 Tier1 Tier2 Tier3 Tier4 Tier5
YOY
growth
Below 18 19-24 25-30 31-35 36-40 41-45 46+
Data source: QuestMobile
19BRANDS ARE TRYING TO DIGITALIZE
TRADITIONAL OFFLINE EXPERIENCES…
Les Mills Fiture
Hardware + content + service + AI
20HOPING TO REPLICATE THE FEELING OF THE
PHYSICAL…
Gucci AR technology to TOYOTA VR technology to view
try on shoes cars online
21EVEN LONG-RELUCTANT LUXURY BRANDS ARE
EXPERIMENTING WITH NEW SALES CHANNELS…
Online luxury growth rate in 2020 More brands enter into online Online new/limited product Live streaming
platforms launch
10%
2%
DELVAUX GUCCI
3%
-5%
-5%
-13% -13%
-20%
Jan&Feb Mar Apr
Tmall/JD sales data, including apparel, shoes, accessories,
beauty
LONDON FASHION WEEK
WITH JD
During 618, JD reported > 100% sales MIUMIU
increase of luxury products YoY.
More than 100 luxury brands
increased 10x YoY
Data source: JD
22…AND SOCIAL MEDIA PLATFORMS
DIOR DEPUTE 2020 FALL/WINTER FASHION CAMPAIGN AT BILIBILI
23HOW TO SEIZE THIS OPPORTUNITY
Know that you can now reach a wider
range of audiences online than before.
Audiences from across the country and
across age groups are more active online.
The boundaries are blurring between
mass and high-end sales channels and
media. Every sales channel and social
media platform is an opportunity to reach
your audience.
Every social media platform is rich with
possibilities. Be bold and experiment
reaching your audience wherever they are.
24EVERY DAY IS A SHOPPING FESTIVAL
SERIOUSLY…EVERY DAY IS A SHOPPING FESTIVAL
2021 Tmall & JD promotion calendar
E-commerce festivals are distributed throughout the year, and no longer limited to Double 11 and 6-18
January February March April January February March April
宝宝出 天猫粉 情系意
出游季 美甲节
天猫过年年 天猫情⼈人 年年货不不打 托⻢马斯总 聚划算38 天猫空调 三⼋八⼥女女王 春季汽⻋车 ⾏行行节 丝节 国
不不打烊 节 烊 动员 ⼤大促 节 节 节 春雷雷⾏行行动 京东厨卫节 悦读节 衬衫节 烘焙节 厨具节
家装⾏行行 天猫婚 美⽩白防 ⼉儿童⽣生 天猫校
业⼤大促 博会 晒节 活节 园季
家装新年年惠 阿⾥里里年年货节 开年年总动 油漆涂装 天猫灯饰 天猫奥特 互联⽹网家 317吃货 天猫跑步 年年货节
春茶节
员 节 节 莱斯 装节 节 节 甜蜜新 超级⼤大 我⻋车我 懒⼈人欧 321图书
⻄西兰 牌狂欢 show 洲杯 节
天猫国际 ⼥女女⼈人节 冰洗节 ⼿手机节 美⻝⾷食节 家装节
天猫睡眠 美妆春光 2021春夏 天猫国际
开学季 家装节 3⽉月健康⽇日 三⽉月玩具 天猫男 家装 匠⼼心⼿手 天猫厨 天猫⽜牛
节 节 新⻛风尚 愚⼈人节
节 ⼈人节 O2O 作节 卫节 仔节
May June July August May June July August
天猫⺟母 5⽉月春茶 天猫T恤 家装⼤大
健康节 天猫理理想
亲节 节 节 促
618年年中 聚划算66 66全国爱 开学总动 天猫中秋 七夕情⼈人
⽣生活狂欢 造物节 天猫啤酒节 天猫游泳节 秋冬上新 京东机票 美妆节 诺曼底 洗护节
通信狂 520表⽩白 天猫橱 517吃货 天猫底 ⼤大促 ⼤大聚惠 眼⽇日 员 节 节
节
欢节 节 柜节 ⽇日 妆节
清凉节
全球⼉儿 天猫粉
天猫闺 ⼤大六⼀一 进⼝口狂
童⽣生活 丝狂欢
密节 旅⾏行行季 欢周 天猫端午 天猫99⼤大 天猫嬉⽔水 天猫开学 阿⾥里里88汽 天猫88全
节 节 722洗护节 天猫运动会 家装⼤大促 818暑促 家电节 ⺟母婴节 冰箱节 618
节 促 节 季 ⻋车节 球狂欢节
天猫⽗父 意⼤大利利
亲节 周
September October November December
September October November December
淘宝中秋 淘宝重阳 抢⼤大牌活 今⽇日必抢
天猫国庆出游
国庆⼤大惠战 9⽉月结婚季 节 节 动 活动
季
感恩节&伙拼 天猫国际年年货 购物狂欢
10⽉月淘抢 10⽉月淘抢
国庆⼤大惠 国庆疯狂 ⽕火锅节 天猫感恩节 周 节 梦幻圣诞节 天猫滑雪节 厨房⽤用具节 数码节 沙漠⻛风暴暴 洗⾐衣机节 会员关爱⽇日
购⽇日常单 购整体品 节
站 购 （双⼗十⼀一） （双⼗十⼆二）
9.12辣妈囤货 品 牌
⾦金金秋出游季
季 国庆珠宝 ⼤大家电国 天猫国庆 淘宝全球
节⽇日 庆7天乐 节2折起 购国庆节
26FOR SOME CATEGORIES, TRADITIONAL SALES
PEAKS HAVE THEREFORE FLATTENED
Monthly Total Media Spend – Home Decoration
300
225
• Category spending peak is largely affected by the
2018 peak season of home decoration.
Unit: Mil RMB
2019
150 2020 • Mar.-Apr., Aug.-Sep. are typically the popular season
for home decoration, because of good weather.
75
• Nov peak is driven by EC promotions
0
January March May July September November
Traditional peak seasons remain important, but more peaks are
appearing throughout the year as EC periods have gained in
importance
Data source : CTR, CODC, iResearch 2018-2020H1.
27CONSTANT SHOPPING FESTIVALS ARE ACCELERATING
CONSUMERS’ DIS-ATTACHMENT TO BRANDS
54%
of brands in China could disappear
tomorrow & no one would care
% of brands whose disappearance
people would not care about
2015 2017 2019
50% 52% 54%
Data source : Havas prosumer, National bureau of statistics, 2019
28BRANDS ARE BECOMING MORE INNOVATIVE
DURING SHOPPING FESTIVALS
Yili released the theme
marketing campaign during
the 520 period, and the
brand ambassador gained
Brands are becoming 3 million likes in the live
interaction on douyin.
more competitive and
savvy at capturing sales
opportunities from
shopping festivals
Using interactive games to attract
consumers. Watsons launched theme
Fresh launched the creative marketing activities through faceu, and
challenge on Douyin, using AR used the game lottery to stimulate
technology to interact with
users' enthusiasm and participation
users
Data source : Festival marketing report 2020 JuliangyinqingHOW TO SEIZE THIS OPPORTUNITY
Manage consumers’ expectations
on year-round discounting.
Consumers are getting sales-savvy
and willing to postpone purchases.
They are also used to every single
promotional tactic. Don’t try to
out-smart consumers. Promotions
should be straight-forward.
Do leverage key shopping
festivals to build sales. Work with
the key EC platforms to leverage
resources for your brand.
30ADVERTISING GETS OUTSIDE THE BOX
DIGITAL PENETRATION INCREASES WHILE
OTHER MEDIA DECLINE
Outdoor TV Internet Radio Magazine Newspaper
98.0% 97.6% 97.9% 97.5%
100% 93.9% 95.8%
91.2% 91.0% 90.9% 89.2%
86.9% 84.8%
82.8% 84.7%
80.0%
76.1%
75% 69.6%
62.8%
50%
38.4%
22.2% 32.1%
25% 19.1% 17.6%
13.3% 13.0% 14.8%
22.2% 15.0%
14.7% 12.6% 11.9%
15.0% 8.1% 7.1%
7.3% 6.8%
0%
2015 2016 2017 2018 2019 2020Q2
Source: CMMS, 2020
32MEDIA CONSUMPTION IS INCREASINGLY ON
MOBILE
Daily time spend in Hr:min
2017 2018 2019 2020 2021
Digital 3:19 3:36 3:54 4:14 4:35
- Mobile 2:25 2:43 3:02 3:22 3:43
- Desktop 0:41 0:38 0:35 0:33 0:32
TV 2:35 2:33 2:28 2:25 2:22
Digital Video 0:47 1:02 1:13 1:23 1:32
Radio 0:12 0:11 0:11 0:11 0:11
Newspaper 0:06 0:05 0:05 0:04 0:04
Magazines 0:01 0:01 0:01 0:01 0:01
Source: eMarketer, Hrs:Minutes, * excludes digital ** excludes time spent with video via social media
33BATT PLATFORMS DOMINATE CHINA’S
DIGITAL LANDSCAPE
BATT Penetration Mobile Group APP Usage Time Proportion
User scale YOY 5.4% 9.0% 3.1% 18.5%
growth rate
99%
87%
Jun-20 33.0% 7.3% 3.5%9.9% 46.4%
74%
57%
Jun-19 38.2% 6.1% 3.4%7.7% 44.7%
Tencent Ali Baidu ByteDance
Jun-19 Penetration Jun-20 Penetration Tencent Ali Baidu ByteDance Others
Source: iResearch, Date: 2020.06
34DOUYIN’S NEW AD UNITS
“Easter Eggs” Ad A/B Storyline Ad
35BILIBILI’S “DANMU” AD UNIT
Bilibili’s new ad unit
allows branded
messages to fly across
the screen as
consumers watch
content on the
platform.
36HOW TO SEIZE THIS OPPORTUNITY
Increase digital, mobile, and social media
investment. Chinese consumers are spending more
time online and on their phones. Reach them there.
Create content that’s suitable for each platform.
Bilibili users are different from Little Red Book’s are
different from Douyin and are seeking different types
of content.
Leverage new and creative ad units to drive
engagement. Social media platforms are getting creative
in the types of ad units they offer to marketers.
37EMBRACE COLLECTIVE INDIVIDUALISM
THERE’S A THIRD SET OF BENEFITS THAT’S MEANINGFUL
TO CONSUMERS: COLLECTIVE BENEFITS
Functional Benefits
Rational benefits focused on product functionality – intrinsic and extrinsic
qualities – also includes customer service, interactivity, and technology
Personal Benefits
Messaging and behavior that connects on an individual basis, serves a
specific personal need or want, and touches the hearts and minds of your
audience.
Collective Benefits
Company initiatives, behaviors, and actions that respond to and connect
at the social and cultural level. Causes, movements, and national
narratives.
39ART & CULTURE IS THE MOST IMPORTANT
“COLLECTIVE BENEFIT”
Meaningful Brands Study (2019)
Rank #1 Rank #2 Rank #3
Economy &
Art & Culture Environment
community
Government & Economy &
Environment
ethics community
40COLLECTIVE BENEFITS WAS ALREADY
BECOMING VALUABLE BEFORE COVID…
Meaningful Brands Study (2019)
41…CHINESE CONSUMERS ARE CHOOSING
CHINESE BRANDS
65% consumers prefer domestic products over
international brands due to better Chinese elements
Attention of Chinese brands
2009 2019
30%
38%
62%
70%
Chinese brand Foreign brand Chinese brand Foreign brand
42AFTER COVID, COLLECTIVE BENEFITS
BECOME EVEN MORE IMPORTANT
Chinese give higher scores to national pride
(China Youth Daily, 8212 sample size, 31 province Apr 24th-28th)
9.57 9.18
Which makes you proud of
your country? Its culture
Out of 10 Out of 10
Y2020 Y2019
75/63 54/48 75/72 73/65
Main reasons for the increasing national pride
Tension between
COVID-19
countries
43BRANDS ARE INTEGRATING NATIONAL
PRIDE INTO THEIR MARKETING
Lining Huaxizi
Lining sports brand has rebranded itself as China The Miao’s silver craftsmanship is disappearing.
Lining to capture “China cool” in its marketing Huaxizi integrated it into the design of its
and attract young Chinese who are proud of their products, bringing an element of Chinese culture
country and heritage to beauty consumers
44HOW TO SEIZE THIS OPPORTUNITY
This opportunity is not
suitable for every brand.
Brands that aren’t genuine or
respectful in their approach will
encounter skepticism in the
market.
It is not a rejection of Western culture or brands.
Consumers’ repertoire of brands continue to be a
mix of different brands from different countries.
Integrate both self-expression and national pride. Successful
brands know that “collectivity” and “individuality” can integrate
into a single meaningful value proposition to consumers.
45THE OPPORTUNITIES
THE LATE BIRD THE OFFLINE EVERY DAY IS A
ALSO GETS THE EXPERIENCED SHOPPING
WORM ONLINE FESTIVAL
ADVERTISING EMBRACE
GETS OUTSIDE COLLECTIVE
THE BOX INDIVIDUALISM“EVERYTHING CHANGES, NOTHING IS LOST”
OvidTHANK YOU
KEVIN CHOI
HEAD OF STRATEGY, GREATER CHINA
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