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Making the Consumer Connection

Heroes can mean everything when marketing in China

Marketers around the world, in an effort to make their products more appealing, are charged with identifying and meeting the needs of potential consumers. In the advertising world, it is well known that many consumers whether subconsciously or consciously are drawn to certain "hero" figures because they admire the heroes' behavior or what the heroes symbolize. As a case in point, sports legends are commonly used to endorse products in the United States.

This notion is especially interesting for those trying to market their products in China, where economic and societal changes have proceeded at a furious pace. Some Western marketing experts have questioned whether heroes are as important to the Chinese consumer as they are to most Westerners. Many sociologists point to fundamental differences between the Western and Chinese cultures, noting in particular the Western emphasis on the individual and the importance Chinese place on the group. Individual heroes, thus, may not appeal to the Chinese consumer.

As the Chinese economy has become more market-oriented and disposable incomes in the PRC have risen, however, the Chinese population has evolved into an increasingly discerning group of consumers, showing clear preferences both in terms of product quality and how a particular product fulfills individual needs. Following the lead of foreign firms, some Chinese companies now link well-known persons or characters to their advertising displays to differentiate their products from other brands. The Haomen Brewery in Beijing, for example, recently used a photo of the brewery's president standing with President Clinton for a display in the Wangfujing shopping district.

Other firms in China have also begun to realize the usefulness of associating their product with the "right" heroes whether celebrities or mythic figures to convey a clear message about the specific product to potential customers. Many Western companies, including the Philip Morris Co., The Walt Disney Co., and NIKE, Inc., have created global markets for their products in part through advertising campaigns that use powerful figures like the Marlboro man, Mickey Mouse, and basketball superstar Michael Jordan. Those companies that accomplish the difficult task of discovering specific heroes with widespread consumer appeal and use these figures to create symbolic marketing imagery may be more likely to become market leaders in many countries, including China.

Hunting for heroes

In China, four specific image types may have a strong influence on consumer behavior and purchasing patterns. One archetype which may give Western marketing executives a sense of what will work in advertising campaigns is the old revolutionary. In the late 19th and early 20th centuries, elders in China, particularly deceased ancestors, were revered, because ancestral spirits were thought to determine a family' s fortune or misfortune. The high esteem granted the emperor was in part due to the fact that he was considered by most Chinese to be the ultimate elder. Even after the fall of the last dynasty and the ensuing decades of revolution and rebuilding, elders are making a comeback as Chinese heroes. A notable example is the "old revolutionary, " Zhou Enlai, who is revered by many in China today for his quiet but forceful criticism of the excesses of the Cultural Revolution.

Marketers may be able to capitalize on the Chinese sentiment that their elders are the bu dao weng, or the backbone of society. While no firm in China is permitted to use images of Zhou, Mao Zedong, or other past or current government officials to promote its products in China, using indirect references to these figures is a possible marketing strategy. Similar to Smith Barney ads that featured well- known actor John Houseman proclaiming that the firm "makes money the old-fashioned way," a trustworthy Zhou-like elder could, for example, deliver a pitch for a foreign financial services firm about the value of dealing with a reliable, consistent investment firm.

A second heroic figure, the modern tycoon, is a more recent phenomenon in China. Tycoons familiar to many in China include overseas Chinese such as Acer Inc. President Stan Shih and Hutchison Whampoa founder Li Kashing, as well as mainland businesspeople who have made their fortunes through their connections with established political and business channels; and getihu, or private entrepreneurs, who have made their money by taking advantage of the new commercial opportunities created by China's transition to a market economy. Both types of mainland and overseas Chinese tycoons are perceived as conspicuous consumers who eagerly snap up luxury goods like imported cars, clothes, watches, and alcoholic beverages.

The vision of the "good life" has potential appeal for Chinese, who aspire to become rich and flaunt their wealth. This imagery is not lost on advertisers; one product series popular in Hong Kong and Shanghai plays on the tycoon image by billing itself as Diamond Jeans. Each pair of these J-brand blue jeans, priced at $100, contains a very small diamond mounted above the label on the right back pocket. The Hong Kong company, J's, also operates a chain of J's jewelry stores in Hong Kong, Shanghai, and Guangdong Province. The company locates the jeans and jewelry stores near each other in prime shopping spots, selling the jewelry at street level and the jeans in the upper-level space, encouraging people to purchase jewelry on their way to buy jeans.

The emergence of a Chinese middle class in pursuit of material wealth reflects China's growing integration with the world economy. As China' s participation in global markets has increased, so has its presence on another global stage world-class sporting events. Chinese athletes have won medals in numerous Olympic events, including swimming, diving, and gymnastics, and are now considered heroes by many of their compatriots.

In recent years, the development of the athlete as a third hero archetype has been aided greatly by Beijing's efforts to foster such imagery. Like its recurring glorification of Lei Feng as the ideal, selfless young worker who died helping to build a better China, Beijing has promoted the country's athletes as new models of ideal citizens. Athletes have gained hero status in present-day China because the average Chinese person believes that athletic excellence is achieved through discipline, determination, and dedication qualities highly valued in the Chinese culture. Moreover, many Chinese citizens believe that athletes have a social obligation to develop their talents for the benefit of all. Like many Americans, Chinese also consider PRC athletes to be making a genuinely patriotic effort when engaged in international competition. Given these positive associations, it is hardly surprising that PRC athletes like two-time Olympic diving champion Fu Mingxia have been awarded high-profile endorsements from several Chinese companies. Foreign firms hoping to gain market share also stand to benefit from enlisting prominent Chinese athletes to endorse products or appear in advertisements.

Just as the Chinese universally admire sports superstars, so, too, do Chinese parents adore and pamper their children. Like parents around the world, Chinese parents often live vicariously through their children and are willing to make sacrifices for their children's benefit. Marketers who advertise their products as satisfying the perceived needs of the millions of Chinese children are utilizing a fourth image that of the new generation of sibling-less Chinese children, or "little emperors." As Chinese parents are faced with far more buying choices than those of previous generations, marketing strategies that appeal to the parental desire to facilitate their children's educational, nutritional, or social development are more likely to succeed (see The CBR, May-June 1996, p.30). McDonald's Corp., Kentucky Fried Chicken, and McCormick & Co., Inc. are just some of the foreign firms that have set up marketing campaigns aimed at Chinese children and their parents.

Top-notch drinks

All four of these image types appear in the packaging and marketing of various types of beverages popular in China. For example, much of the success of maotai, the traditional Chinese distilled grain liquor, can be attributed to the fact that it was the preferred drink of Zhou Enlai. For many years, maotai was not heavily advertised, but nonetheless reigned supreme as the ceremonial drink of choice at government-sponsored banquets. It continues to function as a "social lubricant," a beverage drunk to signify sincerity and, therefore, is often consumed at deal-signing ceremonies.

Just as maotai embodies the desire of many Chinese to keep in touch with past heroes, cognac, the liquor of choice today, has strong links to the modern-day tycoon. Chinese, including overseas Chinese, now account for one-fourth of global cognac sales. Appealing to the mainland Chinese fascination for things foreign, expensive imported cognac has been positioned as a "social marker," a liquor consumed by China' s newly rich. Perhaps aware of the desire of many middle-class Chinese to live a tycoon-like lifestyle, in 1994, Joseph E. Seagram & Sons, Inc. introduced Martell Noblige, a mid-priced cognac aimed at a new generation of consumers in France, China, Hong Kong, and Taiwan. The 1995 Seagram annual report notes that just days after the brand was launched, it had become a house brand in more than 60 clubs in China.

Unlike imported cognac, Jianlibao, a popular sports drink, is marketed via close association with PRC sports teams. Considered by many consumers to be a tonic or magical brew, complete with a scientific pedigree listing the various vitamins and minerals in each can, this drink was developed specifically in connection with the PRC team's participation in the 1984 Los Angeles Olympics. The sports drink manufacturer then offered a gold soda can and a cash prize to each PRC medalist at the 1992 Barcelona Games. Following the 1996 Olympics, the company started lining up endorsement contracts with a number of PRC athletes, including diving champion Fu Mingxia.

Like Jianlibao, the popular Wahaha beverage derives much of its appeal from its link with a heroic image, that of the devoted parent doing everything possible to ensure the well-being of his or her only child. When introduced to the market in the early 1990s, Wahaha, the beverage' s manufacturer, advertised the product extensively on television during prime-time hours. The Far Eastern Economic Review reports that Wahaha' s success also stems from its elaborate packaging, which gives the parent the illusion of opening a special elixir. In China, similar presentations were used in the past for precious herbal tonics, such as Peking Royal Jelly. By using this elaborate packaging, making parents feel they are providing a precious tonic for their children, the drink has attracted a strong following among Chinese parents; children, meanwhile, have apparently been drawn to the sugary taste. Buoyed by the success of Wahaha, in April 1996 the company announced the formation of a joint venture with the Danone Group of France to produce milk beverages in China.

Images for the future

In years to come, China's beverage sector is hardly likely to be the only sector in which heroic imagery is used to promote products. Finding the right image for each product will be important, though. Although Chinese entrepreneurs have capitalized directly on the old revolutionary image by opening up restaurants with a Cultural Revolution theme, or by creating summer camps to instill children with revolutionary- type values, foreign firms may have difficulty doing so. Nevertheless, some foreign firms may be able to profit from such imagery. Foreign insurance firms, for instance, could acquire a competitive advantage in coming decades by running ads that show trustworthy, happy elders discussing their new insurance policies.

In contrast, those hoping to advertise expensive foreign-made products, including watches, cars, and pens, might find the tycoon image useful. Marketers should be aware, though, that not all expensive goods can be marketed as "exclusive." Red wine, for instance, has become popular in China primarily because of its alleged health benefits; marketers would likely be better off trying to advertise their wines as healthful, rather than exclusive (see p.19). And, in the end, many consumers may find distasteful the growing reports of tycoon behavior such as burning money and smashing expensive liquor and wine bottles and may avoid buying "tycoon"-associated products.

In the short and long terms, countless opportunities exist for foreign firms to market their products using the appeal of the athlete, without the down sides associated with the tycoon image. What has worked for Jianlibao could also work for such products as Coca-Cola, Pepsi, athletic shoes, and even milk. But with the exception of basketball superstar Michael Jordan or tennis star Michael Chang, most foreign athletes will not likely be recognized by Chinese consumers and therefore may not prove suitable for Chinese marketing campaigns.

Similarly, those hoping to capitalize on the image of the parent/child relationship also can find ways to pitch their products as healthy, nutritious, educational, or in some other way beneficial to children. Products that possess scientifically documented nutritional benefits, such as Tang, have become popular in China. Instant cereals and other breakfast or healthy snack products could also be marketed as products that appeal to children as well as something a devoted parent would want to provide for his or her child.

When marketers select an appropriate hero to advertise their product, they also must ensure that the overall image associated with the hero seems genuine. A television advertisement for a fast-food restaurant chain in Shanghai, for example, should feature actors speaking the correct dialect and wearing region-specific clothing.

Ultimately, though, what sells a product need not be a celebrity testimonial. Marketing research, in fact, has shown that celebrity testimonials can backfire if consumers feel that the celebrity has been bought or if the advertisements lead the consumer to remember the celebrity rather than the product. And, while using the right imagery to meet perceived consumer needs may be enough to sell a product today, China' s heroes may well change over time. Foreign companies that want to continue marketing their products successfully in China will need to keep an eye on the heroes of tomorrow.

Celebrity Watch

Notwithstanding the fundamental importance of athletes, tycoons, and other heroes in marketing products in China, Chinese film and entertainment celebrities also appear increasingly as sponsors of products. To date, few US companies have used Chinese entertainers in their advertisements, though The Procter & Gamble Co. has run ads in China featuring Chinese- American tennis professional Michael Chang. The results of an October 1996 poll by Guoji Guanggao (International Advertising) magazine suggest that foreign firms could benefit from enlisting Chinese entertainers to sponsor their products.

The Chinese poll asked approximately 1,000 residents in Beijing, Dalian, Guangzhou, Qingdao, and Shanghai to rank their favorite celebrities. Nineteen of the top 20 celebrities nominated were entertainers; Michael Chang was the only athlete mentioned by respondents. Eight of the celebrities on the list were Hong Kong or Taiwan superstars who advertise principally for cosmetics firms. Curiously, many high-profile celebrities, including film stars Zhang Weir, Chen Daomei, and Wang Zhiwei, did not make the list.

Topping the list was Hong Kong starlet Liu Dehua, a familiar face on many advertisements in China. Liu was rated most popular among Chinese aged 36-45. In the number two spot was Chinese actress Gong Li, star of "Farewell My Concubine" (1992), "Raise the Red Lantern" (1991), and other well-known Chinese films. Rounding out the top five were comedian Guo You and film stars Liu Shaoqing and Wang Chen.

Respondents also nominated some non-Chinese celebrities (though these celebrities failed to make the top-20 list), including NIKE, Inc. spokesmen Michael Jordan and Pete Sampras, Pepsi endorser Michael Jackson, and Lishi cosmetics sponsor Nastassja Kinski. Many foreign celebrities popular in China were not nominated at all, including Arnold Schwarzenegger, Sylvester Stallone, and Sharon Stone.

Joseph Scarry is president of Chicago-based Argonaut Export Marketing, Inc., a firm specializing in helping US companies market their products in China.

Reprinted with the permission of The US-China Business Council, Washington, DC.

Joseph Scarry, Making the Consumer Connection. , The China Business Review, 07-01-1997.

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