Works Cited
Merriam, Lisa. "The Formidable Market." SGB 40.11 (Nov. 2007): 21-21. Business Source Premier. EBSCO. [Library name], [City], [State abbreviation]. 5 Apr. 2008 <http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=27473496&loginpage=Login.asp&site The Formidable Market Challenges abound for brands competing in the Chinese marketplace The opportunity for marketing sporting goods in China is formidable â&#x20AC;&#x201D; in both senses of the word. Yes, the market is awesome in size, but it is also intimidating in its challenges. Companies that bring American preconceptions to sports marketing in China risk resounding failure. The Chinese have dramatically different values and expectations in a markedly different commercial environment. These differences will impact Western brands' ability to succeed in the Mainland market. A few points illustrate how easy it is to run off course. 1. The Chinese don't want to "be like Mike" â&#x20AC;&#x201D; or even to be like Yao Ming. Sports play almost no role in Chinese culture. Newspapers don't have sports sections. Kids don't clamor to join teams in school or idolize the faces on Wheaties boxes. There is no caste of athlete millionaires. China has nothing like the NFL, the NBA, or MLB. China produces fine athletes and dominates many Olympic sports, but that success does not translate into the sports-centric culture we experience in the U.S. 2. Concepts like the "thrill of victory" or the "joy of healthy competition" fall flat in China. Even before Communism, the stature of the individual was subordinate to the group. Standing out, winning, besting others, is seen as self-serving lack of humility. Furthermore, competition is not something that is sought. Life in China is already highly competitive and many people feel vulnerable. Chinese history, even very recent history, has taught many Chinese that life is full of risk and that prosperity can disappear in an instant. Security, stability and modesty are valued over standing out. 3. The importance of humility cannot be overestimated. Bragging is a cultural no-no. Superlatives are to be avoided unless you want to appear untrustworthy, arrogant and presumptuous â&#x20AC;&#x201D; particularly for foreign brands. A restaurant in Shanghai claims "very good food, not "the best." Big claims evoke Communist sloganeering such as the "Great Leap Forward along with accompanying cynicism. What earns points arc straightforward, humble, locally and personally relevant messages and promises. 4. The Olympic Games are a minefield. To most Chinese, the Games are about demonstrating the country's capabilities to the world and boosting its economy. You'll find a significant amount of "Olympic fatigue." The anticipation has been long and people just want to get on with it already. Tying marketing to the Games, with partners, sponsors, suppliers and licensees at the international, host city, national, and team levels means hundreds of companies can claim some Olympic connection. Clutter is inevitable. Beware of trying guerrilla tactics in China. The Beijing Organizing Committee and the government will not be lenient if they perceive you claiming false connection to the event. 5. Image ads and conceptual ads don't work. The Chinese are relatively new consumers and thus have a different level of sophistication in their expectations and understanding of commercial messages. Brands must be mindful not to disorient or confuse them. Government regulation can be tricky, too. What seems like a winning concept might be deemed deceptive by the government. This is a country that banned the movie Babe because it infers that pigs can talk. Simple works over fanciful. 6. Foreign brands entering the Chinese market face strong domestic competition. In 2004, the government launched a Brands Promotion Committee to help companies move toward the goal of building internationally valued brands. It is official government policy that Chinese companies create brands. Meanwhile, outsiders still have to battle their bargain basement prices, inside edge in distribution, and their local knowledge of how to work the ropes of business. 7. The truth of each of the above points varies dramatically across China. The young, westernized
strivers in Shanghai are a completely different breed from middle-aged peasants in the countryside. Mass marketing in China is impossible due to the effect of demographic differences such as age, economic status, and geographical location on attitudes and behavior. All obstacles aside, China still represents a huge opportunity for Western sports brands, an opportunity that can't be ignored. With 1.3 billion people, many of whom are reaching middle class status for the first time, it dwarfs the United States and Europe put together. But brands can't walk in with their tried and true Western marketing strategies and messages and hope to succeed in Beijing, Shanghai or Urumqi. Foreign companies need reliable, local Mainland Chinese marketing partners. A Hong Kong or Taipei ad agency will do about as much good as a Greek one. Testing brand messages rigorously with all relevant demographic groups is a must. What sounds and looks amazing to an American is just as likely to fall flat before Chinese consumers. Some are lucky and find their brand translates well. Coca-Cola means "makes mouth happy in Mandarin. Others aren't so lucky. In Chinese, Google sounds like "old dog" â&#x20AC;&#x201D; not exactly the stuff of a new economy leader. Brands, strategies and tactics need to be translated with care. PHOTO (COLOR) ~~~~~~~~ By Lisa Merriam