The next major China marketing frontier: community & neighbourhood marketing in China

A homogenous, one-size-fits-all strategy is unlikely to break through the clutter in China these days. Whilst brands should stay true to their core DNA across China, they would be wise to tweak communications and strategies by geography to connect with regional variances in preferences and behaviour.

Localising by city or region is much more effective than doing so nationally, however there is another level of micro-targeting within those geographies that gets to the grassroots. As consumers are placing higher value on their community and neighbourhood connections, this should be reflected in brand strategies.

Some of the most successful foreign brands in China are those who have given back to local communities. We saw this with Uniqlo, who fared much better than H&M after the Xinjiang cotton scandal landed. This was largely due to them looking to give back - from donations after natural disasters, to partnering with local colleges for student design competitions. Similarly, brands like Nestle and Starbucks support coffee growing communities, Zespri is always quick to send kiwifruit to those in need, and Treasury Wine Estates works with China’s wine growers. These all help to signal to consumers that companies are not in China just for profit, but to give back too – something which is increasingly important as Chinese consumers’ patriotism grows. ?

Connecting with communities doesn’t necessarily mean pledging support. Effective examples of grassroots initiatives are the recent brand activations at local wet markets. What made these great is they connected with consumers at a cultural level, with wet markets being an embedded part of Chinese society. They also induced nostalgia as many consumers look fondly at wet markets as a symbol of when life was simpler. Each initiative cleverly integrated the brand at an emotional level that connected with consumers.

While the wet market initiatives took place in a specific community, the emotional connection created a halo effect far beyond the proximity of the initiatives, spreading nationally through social media. This could also be said for Uniqlo, the coffee makers, Zespri and Treasury, whose goodwill spanned beyond the communities they’re impacting, reaching both consumers and some key folk in Beijing.

With consumers placing an increasing emphasis on experiences and hobbies, brands are connecting with consumers through these interests. This is often through online communities which can positively impact consumer sales, retention and advocacy. Yet combining these communities with real-world experiences can be even stronger. Running groups, outdoor lovers, car enthusiast communities, even tufting fans respond well to brands who support their interests.

Beyond hobbies and interests, some of the most effective community initiatives – and those most needed – are creating support networks around pain points. This includes IKEA’s support of mothers in the workplace, or Lululemon’s ongoing support for mental health.

China Skinny’s understanding of Chinese consumers can ensure that your community initiatives are authentic and don’t come across too salesy – while still being profitable and scalable. Let’s chat about how we can work with you on this.