Did COVID-19 Kill the Colossal Chinese Market in Australia?
As the Coronavirus outbreak continues, Chinese tourists are still missing from Australia, despite the lead up to Lunar New Year and a fantastic summer season down under. As we depend on tourists and external markets to drive economic growth and widen our appeal, Australia’s economy has suffered.
In terms of selling to China, Chinese Daigous (Chinese personal shoppers) and Chinese consumers are no longer overwhelmed by choice and demand. Previously hot-selling products like baby formula and dietary supplements are overstocked, and the education and tourism industries are also under an added layer of stress.
During these tough times, is it still necessary for Australian-based brands to pay attention to the Chinese market, both at home and overseas?
A Demographic That Demands Your Attention
By the end of 2020, Australia reached a population of over 25 million. In 2019, there were over 7.5 million migrants living in Australia, meaning that 29.7% of the population were born overseas. Chinese migrants make up the second largest segment of these overseas nationals.
According to the last Census (2016), the Chinese population in Australia exceeded 1.21 million, which included Australian-born Chinese, Chinese permanent residents, and Chinese citizens working and studying in Australia. This means that Mandarin has become the second most spoken language in Australia behind English, according to a BBC report.
2020 shifted many things, including the population and demographics of Australia’s communities. Although the number of international students has plummeted, there is still a large and noteworthy Chinese demographic right here in Australia.
Australian Chinese migrants who have worked in Australia for a long time and have chosen to settle here are a distinct and powerful purchasing segment. This demographic is highly skilled, well financed and has a median age of 34.
They are also big communicators!
You’ll find them on WeChat, Little Red Book, Douyin (TikTok), Weibo, Kwai and other Chinese social platforms.
Key Opinion Consumers – A Killer Weapon for Chinese Social Media
User reviews, influencer marketing, organic social, dark social and PPC… all things we would associate with English-speaking digital marketing, also have Chinese counterparts. What are brands doing on Chinese social media to win over customers and buy back business? They’re getting smart with Key Opinion Leaders (KOLs), using data and infiltrating Key Opinion Consumers (KOCs).
What is a KOC? A Key Opinion Consumer has a dual identity; as both consumer and creator. Their reviews and content can influence other potential buyers to take the plunge. These users have their own websites or profiles on Chinese social platforms and share their products reviews and opinions. This kind of user generated marketing relies on real world behaviours and product experiences, which in turn affect the brand ideas and potential purchases that other consumers may be experiencing or preparing for.
In recent years, more and more Australian companies have been focusing on the Chinese market, not only in the Australian Chinese market, but also in the mainland China market. These smart marketers are going behind the curtain to influence users both at home and overseas. By marketing to the wider Chinese community, these brands are winning hearts and minds globally with the help of KOCs. Brands are built in China, but dollars are spent overseas too.
Find the right social media, find the right target audience
Customers are looking for brands to talk to them in a style that makes them feel seen and heard – on whichever platform they choose. In the rapidly developing and fragmented digital world, how can brands increase their influence?
In order to create long lasting and meaningful customer engagements, brands need to adopt a “platform for persona” mindset and get on the same level as their customers. Businesses need to develop a deeper understanding of their target audience and adopt effective reporting solutions to track coverage and engagements. This allows us to report on ROI, ROAS and the platforms that are most effective with our target audiences.
Marketers must be able to analyse target audiences more precisely, find multiple platforms and engagement points to achieve seamless connections with their customers. Delivering the right message at the right time to the right people.
Considering the size and buying power of the Chinese community, Australian companies also need a strong communication strategy for the Chinese demographic in Australia. These strategies should establish relationships with Chinese media channels, KOLs, KOCs and consumers in order to increase support for the company's products and services. Bringing about a new level of authenticity for the brand within this target market.
With expertise in Chinese Social Media platforms and the ability to relay messages in the correct language and in a culturally appropriate style, Twentieth Letter have the staff and skills to help you start your conversation with the Chinese community.
Sources:
https://www.abs.gov.au/statistics/people/population/migration-australia/latest-release
http://chinaplus.cri.cn/news/china/9/20170630/7525.html
“Marketers must be able to analyse target audiences more precisely, find multiple platforms and engagement points to achieve seamless connections with their customers”