The Hindu Business Line : Decode the largest market on the planet

THE Year of the Dog, the Chinese New Year, kicked in towards the end of January. What you may not know is that the Chinese have a custom of wearing red underwear during his or her zodiac animal year, which happens every 12 years, as www.shanghaidaily.com informs. But why? "To keep themselves extra safe," writes Tom Doctoroff in Billions: Selling to the New Chinese Consumer, from Palgrave Macmillan (www.palgrave.com) .

"The immense success of Haier, the local appliance behemoth, is founded on its reputation for after-sales service, rather than product quality," he points out, emphasising the need to position brands on safety.

Similarly, while the West would pay attention to nutrition benefits that are `transformative,' such as the focus on "a taller, smarter, and more handsome kid," the Chinese look for "immunity, especially in infant food." No wonder, "P&G's Safeguard commands a 25 per cent share in China because of its germ-killing claims."

Another tip from the book: `reinforce the family rampart.' For instance, Gui Bie Wan, a health supplement, hinges on `a son's obligation to his father,' and Lao Cai, a soy sauce, links taste with `family health and harmony.' How? "The closing shot of the commercial shows a mom beaming as her husband and son, clean plates in hand, ask for a second serving."

Doctoroff interprets the ad: "In China, (a) eating more means more nutrition, (b) more nutrition means a healthy family, and (c) a healthy family means a `durably balanced' family."

The third insight reads, `Turn bargain hunting into smart shopping.' Unreasonable premiums are suicide, cautions the author. "If a brand is not `launched cheap' by charging a low price, introducing a second-tier brand (such as Unilever's Zhonghua toothpaste), or extending the mother brand downwards (e.g. Colgate), it will die."

Glorify the mundane, exhorts the fourth advice. Doctoroff cites as example Nike's `Sports Anytime' spots, where "sitting in class, catching a bus, and receiving flowers become unexpected bursts of athletic excitement." Products have to be joyful releases because the Chinese like to put on a happy face, says the author. They are "most masterful at `micro-dazzle,' little touches meant to satisfy, not impress."

The fifth lesson is to fuel the fantasy of control, so as to empower the people. Chinese fables reinforce the triumph of Davids over Goliaths. "Sun Wu Kong (the Monkey King) fights monsters with magical powers to protect his master on a quest to locate the Buddhist Sutra. Na Zhe is a small child guarding his home town from evil dragons," narrates the author.

As if to gel with such a psyche, "Nestle Ice Cream's X Crunch portrays a typical teenager who shakes and rattles the world around him with every bite of his crunchy cone."

The book is packed with info and examples about culture and motivations of the men and women in the Dragon Land; but all that is only one part of the book. Part II is on `the fundamentals of relevant China strategies,' where the author discusses topics such as `how and when to extend a brand,' and the how of leveraging `the Glory of Beijing 2008.'

The final part discusses `ground lessons' on `winning and losing in China.' Quick takeaways are `ten easy tips' to make `relevant, penetrating, powerful advertising for the masses.' First, don't anger Beijing, because "the city's consumers are easy to offend." Tip 2: `Keep it simple in smaller cities and rural areas.'

For example, "a rural shopper is more likely to select Lux shampoo due to its `pretty package' rather than a belief that `my hair will be smooth and silky like a movie star's.' Another tip, `teach the old,' by getting to the point quickly; the young, however, have adapted to the trendy creative ads. Instructive material is the chapter on why multinational corporations fail in China.

"The opportunity for both local and international marketers to define and own consumer desires is wide open," urges Doctoroff. What you need are "courage, investment, and respect of China's culture and worldview."

A book that decodes the biggest market on the planet!

BookMark@TheHindu.co.in

D. Murali