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The Booming PR Industry in China

The Booming PR Industry in China. The data comes from CIPRA.

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The Booming PR Industry in China

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  1. The Booming PR Industry in China

  2. The data comes from CIPRA Since the reform and opening up in the 1970’s, many special economic zones have been set up in coastal cities of China to draw foreign investment.This brought in many multi-national companies into the Chinese market. They built factories and sold products here, and also established their PR department, which gave birth to an emerging industry.China’s rapid economic growth in the past 30 years has repositioned itself as the strategic market of many foreign companies and even the largest market in the world. Excellent local brands gradually appeared, and started to compete with their foreign counterparts in the Chinese market.In the silent battle of fighting for market share, China’s PR industry has started from scratch and grew from strength to strength, playing an indispensable role in marketing strategies. The birth of China’s PR industry • PR is a young industry in China, burgeoning in the 1980’s. • It is a vibrant industry for the young too, the average age of working staff in this industry is around 30.

  3. The data comes from CIPRA Market Volume 9.5 billion ＄ • The annual growth rate of PR industry remains at 30% • It is estimated to reach 9.5 billion ＄ by 2015.

  4. The data comes from CIPRA Market Volume Beijing，70% Beijing Shanghai Chengdu Guangzhou • PR companies are mainly located in Beijing, Shanghai, Guangzhou and Chengdu. • Beijing takes up around 70% of the market, because here are the major media of China.

  5. The data comes from CIPRA Market Volume 1/4 • The lion’s share of the market are devoted to Automobile, IT, FMCG (fast-moving consumer goods), Medical care and Finance. • PR service in the automobile industry is the leading performer in China’s PR industry, accounting for 25% of the market share. China’s automobile industry has been blooming and China is now the largest auto market in the world. Automobile Industry

  6. Products promotion Service Scope Main services of PR companies New growth point: demand for PR services in government, NGOs and cities has increased. Products promotion Digital marketing Activity management Brand communication Event marketing Crisis management Corporate Social responsibility

  7. Industry trends • Capital inflow: With more frequent capital flow and operation integration in this industry, more investment and institutions are coming in, greatly promoting the development of China’s PR industry. • Integrated service: PR companies will strengthen integration and transformation, spreading from coastal cities to inland cities, from single service to integrated service. • International PR agencies go local; local PR agencies become international • Business evolved from IT sector to automobile, FMCG (fast-moving consumer goods), DCG (durable consumption goods), medicine, etc. • Services become diversified from providing communication service to activity management, digital marketing, entertainment marketing, now heading for integrated marketing. • Offices expand from the Beijing Headquarter to Shanghai, Guangzhou, now reaching 23 offices in China. • As the largest and most successful PR agency in China, Blue Focus is an epitome of the development of China’s PR industry. In the past 16 yearsBlue Focus:

  8. International companies entering the Chinese market  • Mature Foreign enterprises • They have been in Chinese market for long, with a large number of local staff even at the management-level • Most of them have their own PR department and a lot of them cooperate with PR agencies • Some of them conduct cooperation with international PR companies through global procurement; but more and more Fortune 500 companies choose local PR agencies, because local PR agencies are familiar with the market, especially with media relations, which is deemed as an important factor in PR services. Steady growth in PR Input: thanksto China’s overall economic trend and the growing influence of PR industry, many brands have raised their investment in PR industry to expand their market share and brand influence. More frequent PR activities in New Geographic markets: because the purchasing power of the second-tier and third-tier cities have been unleashed and major brands are penetrating into these cities.

  9. International companies entering the Chinese market  • New Comer foreign enterprises • New comer foreign enterprises in the Chinese market: Most of them are sales companies who only set up offices in China. Their market share in China is waiting to be expanded and most of their brands are promoted by distributors or agents, without the setup of PR department. • These companies are not yet well-known in China. They don’t have a clear long-term promotion strategy. They mainly need services such as activity management, exhibition promotion and crisis management. • Foreign enterprises that seek to enter the Chinese market. They are interested in this market yet totally strange to it. PR services they may need are strategy consulting and market research. • Foreign enterprises ready for this market

  10. Chinese companies going international Successful local brands which are competing in the global arena: • There are two types of Chinese companies in overseas market, first, the independent brands such as Lenovo, Haier and Huawei; second, monopolistic stated-owned enterprises such as CNPC, Bank of China and BAOSTEEL. • These brands have been navigating the international market for many years and have stable international market share. They have their fixed PR agencies in the local market or rely on their PR department in the foreign market.

  11. Chinese companies going international • Although most local brands focus their business on the domestic market, they have never stopped exploring new geographic markets. • In recent years, Automotive, fashion consumer goods (costume, watch and jewelry), airlines are entering the international market. Their demand for PR services in the local market have risen. • Chinese brands are showing the world that they know more about consumption experience and care about quality , design and innovation.

  12. The world is ready for Chinese brand THINK LONDON Johnson, Mayor of London, are traveling in China in the TX4 car co-manufactured by China’s Geely Motor and the British Manganese Bronze, promoting London Olympics.

  13. The world is ready for Chinese brand SHIATZY CHEN Shiatzy Chen A Taiwanese brand which has entered the European market. It holds fashion shows in Paris every year, grabbing the attention of top fashion media.

  14. The world is ready for Chinese brand The fusion of inspirational elements from French and Chinese culture captures the ethos of Qeelin, China’s first luxury jewelry brand. The brand was founded by Dennis Chan and Guillaume Brochard who share the mutual dream of combining the rich aesthetic heritage of China with the French mastery of luxury craftsmanship to create stylish, contemporary jewelry. Launched in Paris, 2004, Qeelin swiftly became an international brand. All Qeelin collections are exclusively made of precious metals and stones, such as gold, platinum, diamond, sapphire, ruby and naturally, the Chinese national stone, jade

  15. The world is ready for Chinese brand SHANG XIA SHANG XIA Founded in 2008, SHANG XIA is a brand for art of living that promises a unique encounter with the heritage of Chinese design and craftsmanship. Together with the celebrated Hermes Group, renowned Chinese designer Jiang Qiong Er established SHANG XIA with a mission to create a 21st century lifestyle founded on the finest of Chinese design.

  16. City Image Promotion in overseas market • There is an increasing demand of Government to enhance city awareness in international market. • Issue marketing is a widely used way, which usually initiated by the government and put forward by domestic PR agencies together with agency in local market “HANGZHOU” in London Take London Olympic for example, many provincial capital cities have been promoting their images in London in the hope of attracting more tourists. “SHENZHEN” in Berlin This year marks the 40th anniversary of Sino-Germany diplomatic relations. As the first Special Economic Zone in China, Shenzhen is holding exhibition in the Chinese Culture Center in Bolin to uplift its international profile.

  17. Any ideas to grow business exchanges between our network and your market   New companies that are entering the Chinese market • Blue Focus is a comprehensive PR company, with many partners in various sectors in the Chinese market. We can help companies who want to expand business in China break industry barriers, through conducting various marketing strategies. • If your clients or partners want to promote your brand in China or seek to understand the Chinese market, we are definitely your best choice! Chinese companies that have PR demand in the international market • As more Chinese brands are going global, their images in the international market are to be enhanced. We regard this as a huge opportunity. • At present, Blue Focus has hundreds of clients. In case they seek to promote their brands in the foreign market, we would recommend the IPRN members to them.

  18. Any ideas to grow business exchanges between our network and your market   The following sectors enjoy the fastest growth in recent years:

  19. Any ideas to grow business exchanges between our network and your market   • Promoting IPRN to outside world: to raise awareness and influence of IPRN worldwide, like promoting our website or in twitter/linkedin; So that more and more clients may turn to IPRN for help if they have PR demand in certain market and IPRN members may also exchange information from these Social media platform • Promoting internal communication among IPRN members : Newsletter will be a good way • Exchange mechanism and business growth points are base on effective communication. • Thus we have the following suggestions regarding how to enhance communication among the IPRN members: IPRN

  20. Thanks for your attention!

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