Global Brands Market to China

Nissan Micra

The consumer market in China, which has seen its buying power grow year after year, continues to be the focus of many multinational brands' marketing efforts.

The Japanese automaker Nissan recently announced that it expects China will be the brand's top market within four years. Detroit-based Ford has actively marketed to Chinese consumers for years and, after a reset in 2018 to introduce new products, it sees China as a key market. "In China, you get a big uptick with a new product. And if you don’t have new product, you pay a little bit of a price for that," explains a senior Ford official.

California-based streetwear brand Vans is emphasizing social and digital media in targeting Chinese consumers, using the highly popular WeChat social network in particular. Well-known global fashion brands like YSL, Chanel and Dior are extending their names to makeup products and attracting fans in China, competing with established cosmetics brands popular there, such as Estee Lauder and Shiseido.

Brands can pursue omnichannel marketing to offer consumers in China multiple ways of making a purchase. The ecommerce giant Alibaba, for instance, serves as a valuable distribution channel for global brands like Burberry.

Meanwhile, Chinese brands are targeting US consumers. As just one example, China-based automaker GAC will begin marketing its electric cars and SUVs in America next year. Watch for more Chinese brands to enter Western markets year after year, even as US brands continue entering China.

Brands Ride Along with Disney's Theme Park Expansion Plans

Walt Disney has a new theme park, Shanghai Disneyland. PepsiCo was at the opening, with a limited-edition.

PepsiCo also partnered on a branded stage inside the Shanghai park. Four years ago, Pepsi opened a special R&D center to develop products that fit the taste buds of customers in China. Working with Disney furthers PepsiCo's expansion in China.

Starbucks is another brand that sees opportunity in working with Disney. In Shanghai at the Disney Resort, Starbucks just opened what will be its busiest coffee shop in the world, with 110 baristas to serve 25 million customers yearly. Starbucks already had a presence in each of the Disney parks in Orlando, and in Disneyland California.

These are only two of the global brands that are riding along with Disney's marketing magic in its global expansion. One more brand enjoying the ride is Hasbro, which won the lucrative doll license from Mattel and now produces princess dolls and other toys based on strong Disney brand franchises like Frozen.

Marketing Oreos in China

Last week, National Public Radio aired a fascinating story about marketing Oreos in China. The cookie had to be reformulated for Chinese tastes, which Kraft did a few years ago by reducing the sugar content, with globalization expert Sanjay Khosla leading the way. Kraft also had to reduce the size of packages so it could reduce the price.

"Twist, lick, and dunk" may be a traditional U.S. Oreo consumption ritual, but it doesn't come naturally in China, where milk and cookies are an acquired taste. Now Kraft has rethought the shape and size of Oreos, as well, coming up with new versions that appeal to local tastes. Thanks to glocalization, the Oreo is now the best-selling cookie in China.