Chinese consumers in North America are spending billions on education, real estate, consumer goods and more, and North American businesses are itching at the chance to get in on the game. With the rise in wealthier Chinese classes and more Chinese moving to North America, the opportunity for North American brands to reach these consumers has never been more tantalizing.
The New Emerging Chinese Profit Market
in North America
According to Mckinsey & Company, China is by far the world’s largest e-commerce market and more than 70% of Chinese consumers actively shop using various methods (online, in-store, by phone, etc.) (1). In North America, according to Pew Research, there are 5.4 million Chinese in the United States (2), and 1.8 million in Canada (according to the Canadian Government website (3)) making Chinese residents one of the fastest-growing segments of the population across North America. These Chinese consumers show strong purchasing power and are keen on consumption. It’s thus vital for brands to have a strong, distinct, marketing strategy that specifically caters to Chinese consumers.
Reaching Chinese consumers in North America requires a very different approach, stated Mary Wang, co-founder of Noah Digital Inc., a marketing firm specializing in the Chinese consumer market. “Many things about Chinese culture are very different,” said Wang. “For example, trust is an extremely important factor and building trust through marketing is an art form that requires a lot of know-how and pre-planning.”
The first thing any business looking to attract Chinese consumers should do is effective consumer research, Wang said. The problem is that the Chinese market is diverse and also rapidly changing, which makes it difficult to keep on top of trends. “Many businesses do not include Chinese consumers as part of their marketing, mainly because they do not have, or do not know how to conduct, the proper research,” Wang said. “This is definitely costing them a lot of money and potential business.”
To stand out in the Chinese market, businesses need to tailor their marketing messages, landing page design, ad copy and creatives – all holistically and strategically custom fitted to attract and hold the attention of the sophisticated Chinese consumer in their own language.
Brands should also be open to new ways of doing business, as it takes finesse to pull Chinese consumers away from popular Chinese websites, their favorite payment methods, or from popular Chinese Internet streaming media that they use in China and carry with them to North America.
“A good strategy may include meeting them through their most popular social media platforms such as WeChat, Weibo, Bilibili, Red, and marketing through highly searched popular events such as Chinese New Year or Dragon Boat Festivals.” Wang said.
Conclusion
Many businesses tend to give up on the Chinese market too soon. To succeed in this profitable and promising market, businesses need to understand the Chinese consumer, communicate in their language, be where they are, be patient, consistent, and ultimately build that trust that will not only attract Chinese customers, but have them remain loyal for years to come.
References:
- https://www.mckinsey.com/cn/our-insights/our-insights/five-consumer-trends-shaping-the-next-decade-of-growth-in-china
- https://www.pewresearch.org/fact-tank/2021/04/29/key-facts-about-asian-americans/#:~:text=Chinese%20Americans%20are%20the%20largest,population%2C%20or%205.4%20million%20people.
- https://www.canada.ca/en/immigration-refugees-citizenship/corporate/transparency/committees/cimm-jun-02-2021/canada-china-issues.html
