3a: Capitalising on China’s digital culture explosion Speakers: • Sam Fleming – Co-founder and CEO, CIC, China • Andrew Disbury – Director of Admissions, University of St Andrews, UK • Nick Jones – Director of Interactive Services, Central Office of Information, UK • Professor Weihe Zhong – Vice-President of Academic and External Affairs, Guangdong University of Foreign Studies, China Chair: Dr James Bellini – Futurologist and broadcaster, UK Capitalizing on China’s Digital Cultural Explosion Presented by: Sam Flemming, CEO & Founder, CIC Date: December 4, 2008 Introduction to Chinese Internet Word of Mouth CHINA INTERNET NUMBERS DOMINATE THE WORLD - Chinese Internet population is equivalent to the 4th largest country in the world. 220 Million 253 Million Average time spent online per week1,2 7 Hrs 14 Hrs Average time Internet users spend watching TV per week3,4 31 hours 9 hours 73% 19% Number of Internet users1,2 Internet Penetration1,2 Data Source: 1)The 22nd Statistical Survey Report on the Internet Development in China by CNNIC, July 2008. 2) Nielsen Netraitings, July 2008. 3) “Whichever Screen, People Are Watching”, The New York Times, July 2008. 4) China Academy of Social Sciences THE IWOM LANDSCAPE 2008 Inspired by Brian Solis and JESS3 Blogs BBS SNS Diary: “Content Driven by Me” Community: “Content driven by Topics” Network: “Content Driven Relationships” CHINA AHEAD OF THE GAME: China has a more developed social internet than the West New Business Models in Online Communities, Plus Eight Star Ltd, March 2008 “The fact is China has surpassed the West in some web2.0 application fields: such as IM, online community development and cross-platform service, etc.”2 Boston Consulting Group, “China’s Digital Generation,” 2008 NET CULTURE • 顶 - support • FT(晕倒) - faint • PMP (拍马屁) - kissing ass • Ford Focus: 小福,, 福福, FKS, FCS • 做人不能太CNN don’t be deceptive • 俯卧撑 - It’s none of my business. • 打酱油 – It’s none of my business Little Fatty NETIZEN INSPIRED MARKETING NET LANGUAGE: NBA fans have their own Athlete and Team Nick Names Nick Name 大姚 明王 Big Yao Ming with mustache King Ming 四克拉 Four carats 影帝 Movie king 点球皮 Piero for penalty goal 斑马王子 Prince of zebra 绿衫军 The green shirt army The grasshoppers 胡子明 Yao Ming Luis Scola Alessandro Del Piero Boston Celtics Interpretation 蚱蜢 What Does IWOM mean to you? CHINA FOCUS: IWOM impacts opinion and purchase behavior • CHINESE NETIZENS LOOK TO BBS FOR PURCHASING ADVICE → more than 80% users use BBS to search for information of the product they plan to buy and 62% users ask other BBS users for opinions before make purchases.1 • IWOM INFLUENCES PURCHASE DECISIONS →User-generated content (consumer reviews/rating sites, forum/discussion boards, blogs, etc.) influences 58% of all purchase decisions in China, compared with 19% in the US. 2 • INTERNET IS KEY TO STAY INFORMED ABOUT PRODUCTS →91% of respondents listed the Internet as the preferred medium to stay informed post-purchase 3 1 The Phenomenon of Chinese BBS by IResearch Consulting Group, November, 2007 2 Netpop / Nations: China and the U.S. in a Web 2.0 World by Netpop, November, 2007 3 Consumers and Marketers’ Media Interaction Survey Report, I-merge/Sinomonitor September, 2007 IWOM TOPS SEARCH RESULTS: Search results of “Overseas Study in UK” from Google •40% come from BBS •15% come from BLOG Industry Portal BBS BBS Industry Portal Industry Portal Source: http://www.google.cn/search?hl=zh-CN&lr=lang_zh-CN%7Clang_zhTW&newwindow=1&q=%E8%8B%B1%E5%9B%BD%E7%95%99%E5%AD%A6&start=70&sa=N Confidential 13 BBS IS MAINSTREAM: President Hu Jin Tao listens to IWOM...why shouldn't you? “I always try to spare some time for the internet.” “Through the web I also want to know what netizens are thinking about and what their opinions are. I hope to get some suggestions and advice proposed by our netizens to the government and the Party.” On June 20th, President Hu visited the bbs of People Daily and chat with netizens. “The web is an important channel for us to understand the concerns of the public and assemble the wisdom of the public.” WHAT IS A BBS?: Chinese consumers actively share experiences online British University Rank 2008 announced by TIMES My experience sharing on overseas study in UK FORUM LIST http://bbs.tigtag.com/index2.asp http://www.taisha.org/bbs/ http://lkcn.net/bbs/ http://bbs.gter.net/bbs/index.php http://cache.tianya.cn/publicforum/articleslist/ 0/outseachina.shtml http://bbs.earthedu.com/ TOP TIER CLIENTS AND PARTNERS: In 3 years of history, CIC has developed strategic relationships with the best Clients Top Chinese Portal Leading Computer Processor Brand Leading Mobile Phone Brand Agencies • Leading international PR firms • Leading international advertising firms • Leading digital marketing firms In September and October, U.K. generated most buzz while U.S. attracted most netizens’ participation Buzz Volume and Poster Number of Overseas Countries in September and October 12,000 10,000 8,000 6,000 4,000 2,000 0 U.K. Austrilia U.S. Canada New Zealand Post Germany Poster Total buzz volume of country in September and October: 38,448 posts Total poster number of country in September and October: 15,058 posters Japan France Korea LIVING ABROAD: Students show pictures of their life living in UK HOT TOPICS AMONG CHINESE STUDENTS ONLINE: Students decide where to study Sample Conversation Topic: Q/A on the application to Bristol in 2009 Is Bristol a financially developed city? What type of job opportunities will I have when I graduate? How do I fill in the application and financial aide forms? Do I fill out a special form if I want to pay tuition in installments? Hi, Can I ask, how is Bristol’s finance department? Is there any hope for me to get accepted? What do I have to do to get accepted? HOT TOPICS AMONG CHINESE STUDENTS ONLINE: Students decide where to study Sample Conversation Topic: Undergraduate Q&A for Oxford applications Do you know much about the program/major that I applied to at Oxford? My GPA is 82%, can I still apply to Oxford? I also have 3 years work experience. I want to apply for the 09 fall MFE program at Oxford. I’ve been looking forward to applying to this program for a long time. What should I prepare now? HOT TOPICS AMONG CHINESE STUDENTS ONLINE: Students discuss and seek advice on obtaining visas to UK Sample Conversation Topic: Guidance and advice on how to obtain visas to the UK Application advice What materials do I need to prepare when applying for UK visa? What is the longest length of time I can get a work permit for? How long do I have to wait to get the results of my visa applications? Financial advice Do I need to provide my savings account records to get approval for the visa? Most of my money is tied up in stock. I have a small amount in fixed deposits, but all are in the form of deposit receipts, Emergency advice I lost my visa while studying in the UK, what should I do? HOT TOPICS AMONG CHINESE STUDENTS ONLINE: Students share economic concerns Sample Conversation Topic: Discussion on airline tickets I am really nervous right now. My visa hasn’t been approved and my ticket is non refundable. What a headache! Do you have any good advice? Can I buy round trip tickets around Christmas time? Can I change my flight date after I get my visa? HOT TOPICS AMONG CHINESE STUDENTS ONLINE: Students share economic concerns Sample Conversation Topic: Decrease in the exchange rate between RMB and British pound sterling How will I manage financially during this tough time? It’s too bad I have to send some of my money back home at the end of each month, with the current economic situation. I remember back in July, the currency exchange rate was at 13RMB/pound. Now it’s at 11. It fell too quickly. Does anyone know when the exchange rate will go up again? 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