You are on page 1of 96

School of Business STOCKHOLM UNIVERSITY

Master thesis 10 credits Fall semester 2005

EDUCATING CHINESE CONSUMERS


A case study of IKEA & Absolut Vodka

Authors: Catherine Holmstrm & Kristin Spjuth

Supervisor: Tony Fang, Assisting Professor, PhD

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

ABSTRACT
China has gone through rapid change the last decade, which has opened up possibilities for many western companies. The consumer market is booming and consumers are getting more open to western brands and values, especially in the metropolitan regions. Due to the rapid change in todays China, it is difficult to be enough updated. This is the main reason for why we have chosen this subject, to be able to contribute to a better understanding concerning western companies interaction with the dynamic contemporary urban China. This thesis investigates specific marketing tools used by two successful Swedish companies, IKEA and Absolut Vodka, in their quest to reach modern Chinese urban consumers. To answer this question we also found it necessary to examine how IKEAs and Absolut Vodkas brand values interact with the Chinese culture. A qualitative multiple-case study approach is used and has resulted in two separate cases: The creative vodka (Absolut Vodka) and Design for the many people (IKEA). The cases are mainly based on interviews with representatives from IKEA, Absolut Vodka and Eastwei in Shanghai. Documentation as well as observation has assisted in complementing and verifying the empirical findings we gathered from the interviews. The subject is introduced by a chapter that supplies relevant background information concerning China, in terms of the market, consumers and cultural aspects. Our theoretical framework consists of two interdependent areas: culture and global marketing, which include Chinese culture-, value- and branding theories. Our conclusions have mainly one focus, which we call educational marketing. When entering the Chinese urban market, the companies have to learn about the Chinese culture and the consumers, but they do not have to fully adapt to the new environment. We found that when IKEA and Absolut Vodka market themselves on the Chinese market, they modify their marketing efforts slightly to be able to communicate with the Chinese consumers. This does not mean that they change their brand values in their adaptation, though, but rather that they use different communication tools to get the consumers to consume the brand with its original core values. With the information gained from marketing research, they learn what the consumers lack in terms of knowledge and then the educational process starts. They help the consumer to understand how to consume the brand. Absolut Vodka has to, for example, teach the consumers how to make drinks, which is something that is rather new for Chinese people. Before gaining this knowledge, it is difficult for them to consume the product and furthermore the brand. In IKEAs case, they help the Chinese consumers to understand the advantages of the concept of DIY (do-it-yourself), but they also teach them how to use interior design in their homes. Another conclusion concerns the dynamics of culture. When these companies enter the Chinese urban market and start to communicate with the consumers, something happens. Instead of fully adapting to the needs and demands of the Chinese consumer, they educate them and furthermore change them. The consumers start to consume in a somewhat different way with the values of the western companies, which in its turn contributes to a change in the values of the Chinese culture. Our empirical findings have resulted in a theory that explains this dynamic process of educational marketing on the contemporary Chinese urban market.

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

TABLE OF CONTENTS
ABSTRACT............................................................................................................................................. 2 1 INTRODUCTION ................................................................................................................................ 6 1.1 BACKGROUND ............................................................................................................................ 7 1.1.1 CHINA - THE PAST HALF-CENTURY........................................................................................... 8 1.2 DEFINITIONS OF CHINESE CULTURAL VALUE CONCEPTS ...................................... 9 1.2.1 THE CONCEPT OF FACE .............................................................................................................. 9 1.2.2 THE CONCEPT OF GUANXI ......................................................................................................... 9 1.2.3 THE FAMILY ALTAR .................................................................................................................... 9 1.2.3.1 Roundness .................................................................................................................................. 9 1.2.3.2 Harmony................................................................................................................................... 10 1.2.3.3 Fluidity ..................................................................................................................................... 10 1.2.4 THE THREE FAITHS IN ONE ...................................................................................................... 10 1.2.4.1 Confucianism ........................................................................................................................... 10 1.2.4.2 Taoism...................................................................................................................................... 11 1.2.4.3 Buddhism.................................................................................................................................. 11 1.3 THE CHINESE CONSUMER ................................................................................................... 11 1.3.1 THE LITTLE EMPEROR ............................................................................................................ 12 1.3.2 SHANGHAI AND THE SHANGHAINESE ................................................................................... 13 1.4 PROBLEM DISCUSSION ......................................................................................................... 13 1.5 PURPOSE ..................................................................................................................................... 14 1.6 RESEARCH QUESTIONS......................................................................................................... 14 1.7 DELIMITATIONS ...................................................................................................................... 15 2 METHODOLOGY .............................................................................................................................. 15 2.1 SCIENTIFIC PERSPECTIVES ................................................................................................ 15 2.1.1 HERMENEUTICS ........................................................................................................................ 15 2.1.2 POSTMODERNISM .................................................................................................................... 16 2.2. RESEARCH APPROACH ........................................................................................................ 17 2.2.1 ABDUCTION ............................................................................................................................... 18 2.3 RESEARCH STRATEGY.......................................................................................................... 19 2.3.1 CASE STUDY AS RESEARCH STRATEGY ................................................................................ 20 2.3.2 CASE STUDY DESIGN................................................................................................................ 20 2.3.2.1 Single-case design VS multiple-case design ......................................................................... 21 2.3.2.2 Embedded VS holistic case design ....................................................................................... 21 2.3.3 DATA COLLECTION.................................................................................................................... 21 2.3.3.1 Interview.................................................................................................................................. 22 2.3.3.2 Documentation ....................................................................................................................... 22 2.3.3.3 Observation............................................................................................................................. 23 2.3.4 A QUALITATIVE APPROACH ..................................................................................................... 23 2.4 ALTERNATIVE RESEARCH STRATEGY........................................................................... 24 2.5 CRITICISM OF RESEARCH STRATEGY............................................................................ 25 2.6 PREVIOUS UNDERSTANDING.............................................................................................. 26

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

3 THEORY ............................................................................................................................................ 28 3.1 CULTURE .................................................................................................................................... 28 3.1.1 DEFINITION OF CULTURE.......................................................................................................... 28 3.1.2 CULTURAL VALUES .................................................................................................................. 28 3.1.3 HOFSTEDES FIVE DIMENSIONS OF CHINESE CULTURE ...................................................... 29 3.1.4 CRITIQUE OF HOFSTEDES DIMENSIONS OF CULTURE ........................................................ 30 3.1.5 THE DYNAMICS OF CHINESE CULTURE.................................................................................. 32 3.1.6 METACULTURE.......................................................................................................................... 33 3.1.7 CULTURAL CAPITAL ................................................................................................................. 33 3.2 GLOBAL MARKETING ........................................................................................................... 33 3.2.1 DEFINITION OF A GLOBAL BRAND .......................................................................................... 34 3.2.2 THE THREE-LAYER MODEL ....................................................................................................... 34 3.2.3 MAXIMUM MARKET POTENTIAL AND CURRENT MARKET DEMAND ................................ 35 4 EMPIRICAL DATA ........................................................................................................................... 36 4.1 PRESENTATION OF RESPONDENTS.................................................................................. 36 4.2 ABSOLUT VODKA CASE ........................................................................................................ 37 COMPANY BACKGROUND ................................................................................................................. 37 THE ABSOLUT BRAND ........................................................................................................................ 38 TARGET GROUP ................................................................................................................................... 40 MARKETING STRATEGY ..................................................................................................................... 41 FUTURE PROSPECTS .......................................................................................................................... 44 4.3 IKEA CASE.................................................................................................................................. 45 COMPANY BACKGROUND ................................................................................................................. 45 THE IKEA BRAND CONCEPT............................................................................................................... 45 THE CHINESE EXPANSION.................................................................................................................. 47 MARKETING RESEARCH ..................................................................................................................... 48 MARKETING STRATEGY ..................................................................................................................... 48 IN THE FUTURE.................................................................................................................................... 51 5 ANALYSIS ........................................................................................................................................ 51 5.1 GLOBAL BRANDING AND CULTURE ................................................................................ 51 5.1.1 THE SECOND LAYER OF BRANDING ....................................................................................... 52 5.1.2 THE FIRST LAYER OF BRANDING ............................................................................................ 52 5.1.3 THIRD LAYER ............................................................................................................................. 54 5.1.4 CREATING MAXIMUM MARKET POTENTIAL .......................................................................... 55 5.2 EDUCATING THE CONSUMER............................................................................................. 58 5.1.1 INFLUENCING CHINESE TASTE AND CULTURE ..................................................................... 61 6 CONCLUSION .................................................................................................................................. 62 7 FURTHER RESEARCH .................................................................................................................... 63 REFERENCES ...................................................................................................................................... 64

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

APPENDIX 1. Transcript, Absolut Vodka/Maxxium, Interview, Maggie Shen 2. Transcript, IKEA, Interview, Magnus Omstedt 3. Transcript, Eastwei, Interview, Pr Uhlin

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

1 INTRODUCTION
The first segment of this introductory chapter will supply background information in regards to the chosen area of research and also discuss why we find it to be of academic relevance. In order to create a deeper understanding for the context of the Chinese consumer and the Chinese market, a brief history of China and descriptions of some specific aspects of the Chinese culture will be accounted for. Thereafter, the purpose of this thesis work will be explained and last, but not least, the specific research questions will be clearly stated.

1.1 BACKGROUND
The Chinese economy and consumer market is booming, especially in the metropolitan regions. Western luxury fashion brands, such as Gucci, Prada, Armani, Yves Saint Laurent, and Louis Vuitton (to name a few), have all opened up concepts stores in Shanghai, and many more are about to enter the market. International brands are all eager to attract the urban Chinese consumers and to get their share of the fortune cookie the giant Chinese consumer market. In Shanghai, almost everywhere you turn your head, there are billboards advertising western brands, magazine covers featuring western models and fashion, and countless shopping malls are popping up like mushrooms all over the city. Walking down the street, passing by luxurious shopping areas, you almost forget you are in Shanghai and not in London, Paris or New York. Strangely enough, side by side with all this modernity is also the old China present. Its a city full of contrasts and paradoxes - rich and poor, individualistic and collectivistic, western and eastern, consumerism and communism, and Shanghainese yuppies (Shuppies) and unemployed farmers begging on the streets all in a mish mash. It is easy to be fooled by the modern face of Shanghai, but the city has evolved much faster than what the individual has, explains Mattias Erlandsson, a Swedish entrepreneur living in Shanghai (Skarin, 2005). The Chinese middle- and upper classes are growing fast, and the life of a young Chinese is much different today compared to only 10 years ago. After years of repression, forced collectiveness and lack of economic resources, a major interest in expressing individuality through consumption has arisen. The urban Chinese are becoming more and more westernized, at least in terms of appearance and in what brands they consume. The western dream has become a concept. Chinese women are getting plastic surgery to alter the shape of their eyes to look more round and western, as well as changing the structure of their faces (jaws and chin) to appear less Chinese (Wong, 2004). Almost all facial moisturizing creams to be find in department store contains whitening pigments, to make the color of the skin look paler. Charlotta Woodward has started up an agency in Shanghai consulting Chinese companies on image and personal style. They offer workshops on body language, make-up, clothing style and behavior appropriate in the new China, or counseling on what to wear to a western wedding. Personal image is something completely new, she explains (Engstrm, 2005, pp. 134).

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

1.1.1 CHINA - THE PAST HALF-CENTURY During the past 200 years, China has been through various dramatic political, economic and social changes. Below, a brief overview of the past half-century will be provided.
In 1949, the communist party came into power, with Mao Zedong as its leader. After 12 years of being at war (1937-1945 against Japan and thereafter civil war between Nationalist and Communists), his quest was to get China back on its feet by applying the Soviet model. Private ownership was abolished and the countryside was divided into agricultural cooperatives and state run work units (Hui, 2003). All aspects of a workers life was state-controlled; allocation of housing, food, clothes and even whom to marry. Between 1959-1961 the country suffered a great economic depression, which lead to starvation crisis in the poorer rural areas (BBC News, 2005). In 1966, the movement called the Great Proletarian Cultural Revolution began. Mao started the campaign in order to win back some of the power over the party that hed lost during the years of depression. He mobilized young radicals, many students, to act as Red Guards. Their mission was to eliminate old customs, habits, culture and thinking known as the four olds in Chinese culture (ibid). For instance, the Confucian philosophy (the core of the Chinese value system) was banned (Yau, 1988). The Cultural Revolution created a violent society where people were being killed in the name of the revolution. Everything that represented authority or tradition, including temples, parents and teachers, were at risk of being attacked. The first two years were by far the worst, but the Cultural Revolution did not come to an end until the death of Mao Zedong in 1976 (BBC News, 2005). Deng Xiaoping, who had been kicked out of the party by Mao during the revolution, came into power after his death (Hui, 2003). In 1978 Deng initiated the Open-door-policy through economic reforms, in order to stimulate the economy. He realized that China was in the need for foreign investments and know-how (Hooper, 2000). Nationally, the system of state-controlled work units where dissolved, and private enterprising was allowed. Chinas economy really responded well to Dengs reforms, and has since then been the fastest growing in the world. "To get rich is glorious", Deng Xiaoping once said (BBC News, 2005). The two contrasting ideologies of capitalism and communism are now paired together in the economic/political environment of modern China. In order to control the nations massive population growth, a one-child-per-family policy was put into effect by the Chinese government in 1979. The policy has supposedly prevented more than 250 million births in 20 years, making it a success according to government officials (BBC News, 2000). Today, China has a population of about 1,3 billion people. The policy regulates people living in the cities to have one child only, but in most rural regions, a second child is allowed, if conceived several years after the birth of the first child. If one or both parents are from an ethnic minority, or both parents are only children themselves, a second child can also be granted city-couples. Unfortunately, the restrictive policy has resulted in the killing of baby girls because of the families common preference for boys in Chinese culture. This has also lead to a surplus of men by 60 million in comparison to the number of women in China.

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

1.2 DEFINITIONS OF CHINESE CULTURAL VALUE CONCEPTS


1.2.1 THE CONCEPT OF FACE Chinese are extremely concerned about maintaining and gaining face at all times in social situations. Possessing a face is equal to having high status in the eyes of others and is a major part of a persons dignity and honor. Loosing face is a great disgrace and could be fatal to business or personal relationships. Face can be categorized in two types: lien and mien-tsu. Lien is something everyone has automatically to begin with, but that can be lost through wrongdoings. Lien is closely related to the Chinese concept of shame (chih). Mien-tsu, on the other hand, is gained in connected to a persons social status and success in life. It may be obtained either through personal qualities, or derived from nonpersonal characteristics, such as wealth, social connections and authority through personal connections [Ho, 1072] (Yau, 1988, pp 50). Loosing Lien is much more serious than loosing Mien-tsu, and can even be the reason for suicide (ibid). 1.2.2 THE CONCEPT OF GUANXI Guanxi can be defined as the social relationship between two persons under a particular bonding (Chan, 1999, pp. 101). The word is built from two different Chinese characters put together: guan and xi - where guan is standing for relating and xi for bonding. This relationship can for instance refer to relatives, townsmen, classmates, colleagues and members of the same informal organization, acquaintances and friends, as well as former classmates, colleagues or students (ibid). 1.2.3 THE FAMILY ALTAR The Chinese are very family and group oriented. The physical family altar, usually placed in the living room, is a symbol for connecting an extended family, including the living, the dead, and unborn. The altar is a bridge between the natural world and the supernatural, between the living and the dead, and is a place for worshiping and commemorating those past away. Many rituals are connected to the altar. In some parts of China, the Family Altar is considered old-fashioned and traditional and not at display. However, it serves as a tool for gaining knowledge of the underlying values, attitudes and behaviors of the Chinese culture. The mental concept of the family altar rests upon three cultural characteristics - Roundness, Harmony and Fluidity described further below (Gannon, 1994).
1.2.3.1 Roundness The characteristic of roundness represents the continuity and structural completeness of the family (Gannon, 1994, pp. 330). It symbolizes the family as the most central and persistent component of Chinese culture. The family altar in itself represents such continuity in bringing the kinship group together, whether in this life or beyond. The roundness is much connected to the Chinese perspective on life and time, as it is viewed

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

as something organic and circular. Due to the tradition of male children executing the ceremonial and ancestral rites by the altar, the concept of roundness also includes the preference for sons over daughters. Therefore, daughters are less valued than sons within some families (ibid). This rounded conception of familial relationships is distinctively Chinese, and it encompasses members of the family over space and time(ibid, pp. 332) Roundness is also applicable to relations outside of the family, as in the practice of guanxi (ibid). 1.2.3.2 Harmony Roundness is a basic condition for the existence of harmony. Prayers for harmony are actually the most frequent ones among Chinese. Wordings wishing for harmony are often used in print on wedding cakes, on artifacts and even written on walls or doors in Chinese homes. Harmony is a central concept in the Chinese culture, and is also present in the Yin Yang philosophy (described further below) within Taoism and part of the foundation for Buddhism (ibid). 1.2.3.3 Fluidity Fluidity stands for the ability to change while maintaining tradition, which mirrors the relation-oriented character of Chinese culture. This means that a Chinese person can be individualistic, as long as he/she considers the many obligations to the family members first (living and deceased). A balance between two contradictions, or the ability to make alterations to traditions if necessary, but with loosing its value, are examples of fluidity (ibid).

1.2.4 THE THREE FAITHS IN ONE Chinese culture is closely related to especially Confucianism and Taoism, but also to Buddhism. Taoism is regarded as the main religion of the Chinese, whereas Confucianism is the major influence in guiding the people in their conduct of behavior within social contexts. There is not a conflict in a person being true to Taoism or Buddhism as well as the thoughts of Confucianism. All three are complementary to one another, hence the expression the Three Faiths in One (Gannon, 1994).
1.2.4.1 Confucianism Even though Confucius died in 479 B.C. (Gannon, 1994, pp. 325), his thoughts are still affecting the morals, values and daily lives of the modern Chinese. Confucianism is considered to be the foundation of the Chinese value system (Yau, 1988). It can be explained as a framework for how to conduct oneself in relation to other members of the society. Some central concepts within the Confucian philosophy are protecting ones face, to live in harmony and to avoid conflicts, to honor age and hierarchy, the importance of

10

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

guanxi and family, and the strive for personal evolvement in terms of moral principles (Fang, 2005). 1.2.4.2 Taoism A man called Lao Tzu supposedly founded the religion of Taoism in 604 B.C. Tao means the way and symbols three inter-related insights: [1] it can be known only through mystical insight[2] it refers to the ordering principle behind the universe or all life, and it represents the rhythm and driving force of nature [and] [3] humans should order their lives to be in balance with the universe (Gannon, 1994, pp. 327). Taoism also includes the philosophy of Yin and Yang. Yin stands for female elements, and Yang for its female counterparts. The symbol of Yin Yang (to the left) represents those both sides, white and black, respectively. There exists no complete white and no complete black (because of the dot in each field of color), meaning that Yin and Yang is always present in each other. The shape of the image suggests a dynamic relationship, without a beginning or an end. Yin and Yang is about balance and harmony, and the embracement of paradoxes and interchangeability in life (Fang, 2006).

Figure 1. Yin Yang

1.2.4.3 Buddhism Buddhism, built upon the teachings of Siddhartha Gautama, the Buddha, was brought to China from India around 2,000 years ago. Buddhism is not centered on a god- figure, but a man. One of its central ideas is that life is suffering and that happiness only can be achieved by overcoming hate, wants and negative thoughts. Meditation is an important tool in the process of reaching spiritual emancipation. Importantly, the journey towards reaching a happiness and spiritual freedom in life is just as important as actually getting there (Li, 1998).

1.3 THE CHINESE CONSUMER


China is a vast country with many regional differences. There are therefore great variations in income, habits and consumer behavior between urban and rural areas. While 50% of Chinas households are located in urban areas, 250 million people of the population are considered to be urbanized consumers. Among those, the highest spending consumers live in the coastal cities. The discretionary income and purchasing power of the Chinese have been growing from year to year, affecting consumption accordingly. (Agri-Food, 2004) Between 1997 and 2003 the economic growth was measured at 9% per year, resulting in that the per capita disposable income of urban Chinese increased with 64.2% for the same period (Deloitte, 2005). Being famous for saving a large share of

11

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

their income and bargain whenever they get a chance, the Chinese are still willing to pay for quality or other perceived value (Agri-Food, 2004). Theres a general open-mindness to new western products and styles among the Chinese, and they continuously show proof on the ability to change, adapt and broaden their tastes in accordance to the newness. But there are also strong variations in consumption patterns between the young and the old. The urban segment of the younger generation is more familiar with western lifestyles and global media, than other consumer groups, and is therefore more apt to use untraditional westernized products. Foreign products tend to be viewed as of higher quality, to be safer, and worthy of a higher price tag than comparable domestic products. Many western brands are also considered to be symbols of status. The Chinese consumers can be divided into three different generation groups: National Survivors, Economic Modernizers, and Young Achievers. Below each group will be described in terms of their major consumer traits (ibid). National Survivors (born 1946-1964): Non-materialistic, price sensitive, conservative in terms of product choice. Economic Modernizers (born 1965-1976): Value monetary benefits and stability brought on by reforms, price sensitive, conservative in terms of product choice. Young Achievers (born 1976 and onward): Consumption oriented, willing to spend money on and try out new products, see consumption as entertainment and an essential part of everyday life. Chinas population growth is pretty slow, due to the one-child-policy. In 20 years time, the increase is only estimated at 11%, resulting in a population of about 1.45 billion people in 2025. By then, the nations age distribution look very different compared to today. The young population will decrease and the middle aged and elderly groups will increase massively. Theses facts will have major implications for future marketers (Deloitte, 2005).

1.3.1 THE LITTLE EMPEROR The term little emperor has been widely used to describe the first generation of children resulting from the one-child-policy, also called the S-generation. Today, almost 20 years later, marketers are for the fist time facing the adult single-child consumers. There have been many speculations regarding how this generation - that has been spoiled rotten by its parents, grandparents and relatives - will turn out in terms of consumption behavior.
They are a new social phenomenon and unique in history, and over the next 10-15 years they will have the best education, the greatest opportunities and the highest incomes. (Li, 1998, pp. 59)

12

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

1.3.2 SHANGHAI AND THE SHANGHAINESE Shanghai has gone through a historic transformation since its liberation in 1949. Since the Chinese government adopted the open-door policy in 1978, Shanghai has witnessed rapid change in its social and economic development. The past decade the city has further developed with great success on many fronts: foreign investment, trade, improvements in living standards, infrastructure construction, environmental improvement to name a few (Leman, 2002; Shanghai Daily, 2004).
Today, Shanghai is Chinas economic centre and is continuing to grow rapidly. The income levels of both urban and rural residents have kept rising along with Shanghais economic development. With more income, the consumption structure has changed. For example, the urban families now own more and better electric appliances and the consumers tend to care more about brands (Shanghai Daily, 2004). Shanghai is in the midst of a consumer revolution. Evidence of this is readily apparent in the well-stocked stores and Hong Kong-style shopping plazas packed with shoppers, the proliferation of advertising billboards, neon signs, numerous lavishly furnished new restaurants filled with diners, expensive nightclubs, karaoke bars, jewellery shops, and fancy bakeries. The once drab clothing of its inhabitants has been replaced, especially that of the young, by the latest fashions and accessories. On television, glamorous and alluring images designed to entice the audience seep into almost every living room, elaborately, or unwittingly, creating new desires and new needs. The consumer tide, the flood of consuming, as local newspapers describe it, is there for all to see. (Gamble, 2001, pp. 90) Because of Shanghais history as an immigrant city with strong foreign influence, a unique culture has developed. It is a culture that combines East with West and has given the Shanghainese certain characteristics, often called huaipai or Shanghai Style. People in Shanghai are more familiar with Western people compared to many other cities in China, which give them a tendency to treat Westerners more equally. Shanghainese have also a tendency to adopt Western ways of doing business and can more easily conform to international standards (Chen, 2004).

1.4 PROBLEM DISCUSSION


In considering that China is such a huge and economically expansive market, one might get the expression of that any western company, almost without an effort, would succeed and prosper on the Chinese market. In business magazines and on the news there are constant reports on yet another western brands establishment in China. Is there a secret recipe?

13

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

The Chinese are being called the new Japanese, referring to their fanaticism when it comes to shopping western luxury brands. For young Chinese, especially in urban China, western fashion, food, music and products are the symbols of a new and modern way of life, in total contrast to the old China. The remarkable thing is that what we call the old China wasnt very long ago at all. In only 20 years China has changed dramatically. Before that brands didnt even exist. In that context, many products and brands are very new to the Chinese people, as well as the opposite. The speed of this spectacular development is historically unheard of and is therefore a new phenomenon for economical experts, social scientist, as well as for marketers. Who are these Chinese consumers and how do you market yourself towards them? Is everyone really so exited about all the western product and ideas invading their country? There are not only the young Chinese to consider, but also the middle aged and older Chinese. Do they have the same fascination for western culture and brands as the younger Chinese do? But on the other hand, China being a country of 1,3 billion people, to target only the young is might not be such a bad option. The Chinese culture and traditions are unarguably very different from the western way of life and doing things. Strong cultural values guide many Chinese in their everyday life, which according to cross-cultural marking research should influence them in some way in their consumption habits. But how does this really work in real life? How do western brands, established in China, handle these cultural differences and how does it affect their marketing strategies? Considering the newness and dynamic nature of the Chinese consumer market, we find it relevant to investigate and describe how western brands conduct their marketing in urban China, and if and how they need to adapt their global marketing strategies due to cultural differences.

1.5 PURPOSE
The purpose of this research is to result in a contribution to existing global marketing theory. In order to achieve that goal, we will study the marketing efforts applied by western brands towards the urban Chinese consumers. Throughout this study a business perspective will be held, but with the recognition of consumer behavior and cultural context as integral parts of all marketing processes.

1.6 RESEARCH QUESTIONS


1. Which marketing tools are central for IKEA and Absolut Vodka in their marketing strategies towards Chinese urban consumers? 2. How do IKEAs and Absolut Vodkas brand values interact with the Chinese culture?

14

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

1.7 DELIMITATIONS
This research is limited to the Swedish consumer brands of IKEA and Absolut Vodka established on the Chinese market. This is mainly due to accessibility. We found it easier to make contact with the selected companies, as well as Eastwei (a PR- / Branding Agency that works closely with both companies), being Swedes ourselves, than with companies from other nations. Furthermore, in aspiring coherence, weve decided to limit this case study to only include Swedish companies. Our research is also limited to the urban Chinese market, and specifically Shanghai. China is a vast and fragmented country with many regional differences in terms of economy, culture and way of life. It would be impossible for us to generalize China into one single market. Shanghai is the city in China that is most internationalized and most open to western ideas and brands. The three companies included in this study are all present in Shanghai and all interviews took place with representatives in their Shanghai offices. The term urban China will therefore further on foremost refer to the city of Shanghai.

2 METHODOLOGY
This chapter will first explain the scientific perspectives in which our study is being carried out. Following section describes our choise of research approaches and their specific criteria. We have given the next section most attention because it describes our research strategy in terms of research design, data collection methods, etc. To really legitimate our choise of research strategy we have included a section that brings up alternative research strategies, which also includes a discussion on how we made our specific choice. We also found it necessary to present a critical review over our choise of research strategy, which we will describe in a separate section. Finally, we will include a discussion about previous understanding concerning the subject.

2.1 SCIENTIFIC PERSPECTIVES


The scientific perspectives will serve as a framework for this study and is important for the understanding of the work process thereof. We chose the perspectives in relation to what is most suitable for the type of study we are conducting, but also according to our perception of the world around us.

2.1.1 HERMENEUTICS We will use a hermeneutic perspective in this study, which focuses on factors like understanding, interpretation, explanation and previous understanding (Gustavsson, 2004). In a general way of describing the hermeneutic approach one can say that the object for hermeneutic science is living creatures, things and events that expresses meaning in some way (Wedin & Sandell, 1995). Because our study will treat the complexity of culture as an important factor for Swedish companies marketing strategies toward the Chinese urban consumer, it is crucial to take into account meaning,
15

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

understanding and explanation of this specific culture and furthermore its effects. That is why it is of great interest for us to use the hermeneutic perspective, which allows us to be more open to our objects of study. Our study is mainly based on interviews with representatives from Swedish companies that are currently active on this market, which also forces us to use interpretation and understanding in this process. It is inevitable to collect empirical data in this way without using interpretation as a tool to analyze the data. We as researchers had to interpret the interviewee in terms of body language, facial expression and so forth. Also, the person being interviewed has his or her own view of the topics being discussed and was allowed to speak freely concerning personal thoughts and opinions. Due to the fact that this person is working for the company, it can be difficult to receive completely objective information because of the possibility that he or she will speak in the interest of the company. All these factors are necessary to consider when conducting this type of study, which is why the hermeneutic approach is the most suitable scientific perspective to use. We will also use observation as a tool to get a wider and complementary understanding of firstly the Chinese consumers in terms of their cultural values, who they are, how they spend, how they behave and so forth. Secondly, we want to get information about the Swedish companies marketing efforts in terms of advertising, events, articles, etc., that were not provided by the companies themselves. The observation therefore includes both understanding gained by observing Chinese people in general, but also information gathered by watching advertisement in magazines, on billboards, on the Internet, in stores, etc. Thus, to be able to get useful information out of the observation, we will need to use tools that involve a great deal of interpretation and understanding, which, again, the hermeneutic approach allows.

2.1.2 POSTMODERNISM In addition to the hermeneutic perspective, we will also be wearing our postmodern glasses throughout this research. The two concepts of hermeneutics and postmodernism are not contradictory and will serve as complements to each other. In order to be able to understand, interpret and explain the behavior and values of the Chinese consumer, and the marketing efforts needed by the Swedish brands to reach them, we also need a postmodern frame of mind at hand. The Chinese consumer market (especially in Shanghai) is at this stage of westernization and globalization a highly complex context to be present in. East meats west, capitalism and consumerism exists side by side with communism, and individualistic ways of expression are mixed up with collectivistic traditions. According to post-modern theory there are no simple answers, no solely black or white. Contradictions and opposites can co-exist and interact, which is exactly what is happening in todays China.
Consumption, as well as branding, is an action that takes place within social structures. Within these social structures others influence us in making choices, developing tastes, dislikes and interests (Bourdieu, 1979). Consumers are, according to post-modern theory, irrational and fragmented in making purchase decisions, meaning that they dont

16

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

necessarily need to act as expected or stay loyal to a style or a brand. Consumption is a symbolic act, where products are given meanings apart from the pure functional ones. The ideology of consumerism is, according to Baudrillard, the core of postmodernism. Consumerism has transformed all material objects into bearers of meaning, reduced them to their sign value (Gottdiener, 1995). These meanings are constructed through advertising, branding and by consumers attached values and beliefs (Firat, Venkatesh, 1995). The role of the consumer and the producer are inter-changeable in this value-creating process. Central to postmodern theory is the linkage between culture, consumption and value. Consumption [determines] many consumers values and experiences regarding life and being (ibid, 1995, pp. 248). Another postmodern conclusion, made by thinkers such as Douglas, Barthers and Bourdieu, is the connection between material production and cultural change (ibid, 1995). Since this research will discuss global branding, culture and consumption, a postmodern perspective will be present in studying the interaction between the Swedish brands (IKEA and Absolut Vodka) and the Chinese urban consumers.

2.2. RESEARCH APPROACH


The research approach is an important factor to consider before choosing appropriate research strategy. Yin (1989) explains that there are three different research approaches: the exploratory, explanatory or descriptive approach. The exploratory approach is used in studies where the researcher initially has little knowledge about the intended topic being studied. The intention should be to explore a subject and to develop hypotheses and propositions for further inquiry (Aaker, 1996). The approach is used when the research questions mainly focus on what questions. When a study seeks to explain a specific occurrence or event, and when the research questions have a focus on questions like how and why, the explanatory approach is the preferred choice. Such questions need to be traced over time rather than have a focus on frequencies or incidence. The descriptive approach is used when the purpose of the study is to describe a scenario or a phenomenon. It is useful when there already exist prior knowledge and one can detect a clear structure of the topic being studied. It is important to understand that it is a fine line between the different approaches and that one does not exclude the use of another (Yin, 1989). The case study will have a combination of both an exploratory and explanatory approach. We will initially have little knowledge about both the marketing methods of Swedish companies toward the Chinese consumer, and the values, culture, lifestyle etc of the contemporary Chinese urban consumer. This forces us to explore the topic by collecting information through observation as well as making interviews, to be able to examine how the Chinese urban consumers behave and consume today and what their culture, behavior and values are like. We would also like to explore if and in that case how Swedish companies react in terms of modifying their marketing strategies toward this new market, and furthermore how they understand and perceive the Chinese urban consumer. At the same time the study will have an explanatory approach in that we will explain the

17

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

relevant marketing methods used by Swedish companies that is presently active in the Chinese urban market. Also, we will try to explain how the Swedish companys brand values interact with the Chinese culture.

2.2.1 ABDUCTION It is also of great relevance to consider whether to use an inductive, deductive or perhaps an abductive way of approaching the research question. Initially when we got our idea of focusing on China as our subject for the master thesis, we started to read articles, books, watch documentaries etc about the topic. We got interested in the differences between western and Chinese culture as well as western companies problems of reaching the Chinese consumers in their marketing. We did not found any theories that exactly fitted and answered our questions of interest, even if there were theories that treated the subject in some way. Finally we decided to make a trip to Shanghai to study the Chinese urban consumer and to see how Swedish companies adapted to this environment in terms of marketing efforts. We started to collect empirical data by making interviews with companies, read articles, watch advertisement, take pictures, make observations and furthermore developing a picture of the culture in general, how the consumer works and how these Swedish companies handles their marketing. Different theories have served as a base; some of the theories are used in a more complete way, others are modified to our convenience. We have collected additional information along the way and therefore having to modify and develop research questions and theories.
The way we initially approached the subject is called induction. This approach is characterized by the way the researcher is building up a theory after identifying a phenomenon found in real life. An induction is nothing more than a statement of probability because it is based on selective information (Wedin & Sandell, 1995). A deductive approach is rather the opposite. In this case, you start with theories and then use real life and empirical findings to verify or reject the theories (Gustavsson, 2004). A deductive derivation is a logical consequence of the theory, and if this derivation is confirmed by reality or your empirical findings, then you have got support for the theory (Wedin & Sandell, 1995). Because of the fact that we did not use theories as a starting point, the deductive approach cannot be fully applied. But even if we initially started working according to an inductive structure, we still base our study on different theories and try to verify or reject them through empirical findings, which is according to the deductive approach. This could be said to be a problem, but instead of conducting the study according to one of these approaches we will use a third approach, abduction. One can say that abduction is like a detective work where the researcher highlights a phenomenon that needs to be understood or explained, but where known theories and our experience have difficulties giving a good explanation. Furthermore, different information and facts gets included throughout the way in different forms, to later be able to draw temporarily conclusions on the way towards better understanding. Creativity and intuition, which include previous understanding, are then important for how and where to look to be able to collect relevant information (Alvesson, 1994). After discussing and

18

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

finally choosing appropriate research approach for our study, it makes it easier to decide on what research strategy to use.

2.3 RESEARCH STRATEGY


There are a lot of different research strategies that can be considered. To be able to choose the most suitable strategy it is important to understand the advantages and disadvantages of the different methods. Yin (1989) describes three conditions that needs to be taken into account when making this choice: 1) the type of research question, 2) the control an investigator has over actual behavioral events and 3) the focus on contemporary as opposed to historical phenomena.

Figure 2. Relevant situations for different research strategies (Yin, 1989).

The research question will ask how two Swedish brands market themselves toward the Chinese urban consumers in terms of marketing tools. We also ask how their brand values interact with the Chinese culture. Furthermore, this study treats contemporary events, which exclude at least one research strategy. We will also have little control over behavioral events during the study, which means that the relevant behavior cannot be manipulated.

19

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

After analyzing Yins different factors but also after considering the choise of research approach, we decided to use case study as the most suitable research strategy for our thesis.

2.3.1 CASE STUDY AS RESEARCH STRATEGY More specifically Yin (1989) explains that case study is the strategy to use when examining contemporary events within a real-life context, when the boundaries between phenomenon and context are not clearly evident, and in which multiple sources of evidence are used. He continues to say that a case studys unique strength is its ability to include a variety of evidence, for example documents, artifacts, interviews and observations. It is of great importance when conducting a case study to choose what kind of method to use when collecting empirical data. It is also important to choose a relevant research design. There are four major types of designs that can be used: 1) single-case (holistic) designs, 2) single-case (embedded) designs, 3) multiple-case (holistic) designs and 4) multiple-case (embedded) designs (ibid).
The following part will discuss case study designs followed by a part that explains the different methods that can be used to collect empirical data.

2.3.2 CASE STUDY DESIGN The appropriate choice to make when it comes to case designs depends on the number of case studies that needs to be included in the research, but also on how many units of analysis that are involved. First we have to understand the distinction between single- and multiple-case designs to be able to know in what way the research question will be addressed. We also have to take into account if the case study is of embedded or holistic form (Yin, 1989).

Figure 3. Basic types of designs for case studies (Yin, 1989).

20

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

2.3.2.1 Single-case design VS multiple-case design


The single-case design is the preferred design in many different situations. The design can be compared to a single experiment when the case represents the critical case in testing a theory. It is also the preferred design when the case represents an extreme or unique case. A third rationale for a single-case study is the revelatory case. This means situations where the investigator has an opportunity to observe and analyze a phenomenon that no previous investigator has have access to (ibid). Multiple-case design is used when the same study contain more than a single case. A study can use a multiple-case design but every site is the subject of an individual case study. Every case should serve a specific purpose within the study as a whole and should also be predicted to generate similar results alternative contrary results but for predictable reasons. The multiple-case design is sometimes considered as more robust than the single-case design because of its advantage to compare two or more individual cases (ibid).

2.3.2.2 Embedded VS holistic case design


The same case study may involve more than one unit of analysis. In that case the design would be called an embedded case design in which the case can include outcomes from individual projects within the case as a whole. In contrast, if the case/cases examined include only one unit of analysis, a holistic case design is then being used (ibid). Our study has the form of a multiple-case design with multiple unit of analysis (an embedded case design). It will be a multiple-case design because we will mainly perform interviews and collect information about two different Swedish companies, each treated as individual cases. Furthermore, we will have an embedded view in that every case will include outcomes from individual projects within the different cases as a whole. We will include information concerning different campaigns, launches, etc. of both companies, collected through many different sources. All the information received from every companys different projects will help us to understand the culture, values and lifestyle of the Chinese urban consumer, and furthermore give us a clearer image of every companys marketing strategies to succeed in this environment. This can also be said to be especially true for the interview with the PR/event consultant-company (Eastwei), which is only used as a complementary interview to the two main cases, because of their role to work with different companies in different projects, which forces us to include more than one single unit of analyses.

2.3.3 DATA COLLECTION There are a number of ways to collect empirical data when doing a case study. Yin (1989) talks about six different sources of evidence: documentation, archival records, interviews, direct-observation, participant-observation and physical artifact. In our study we will use three of them: interviews, documentation and observation.

21

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

2.3.3.1 Interview
Yin (ibid) states that one of the most important sources of case study information is the interview. The interviews can be of different form but the most commonly used is the open-ended interview. The open-ended interview allows the investigators to ask the respondents for facts of a matter as well as for the respondents opinions concerning different events. Another type of interview is a focused interview, in which a person is interviewed in a short period of time. In these cases the investigator often follows a certain set of questions even though the interview still can be of open-ended nature. A third type of interviews has the form of a formal survey and has more structure than the other two alternatives. We will use a combination of the first two types of interviews, open-ended interview and focused interview. It is important for us to be able to have an open dialogue with the person being interviewed to catch their perception and opinions concerning our topic. At the same time we perform the interviews in a limited period of time and with a certain set of questions to be sure to receive the information we are looking for but also to create a better structure. The case study will mainly be based on interviews with representatives from two Swedish companies, which will be presented as individual cases with general information of every company with a focus on the marketing methods used to reach the Chinese urban consumer. An additional interview was also performed with a company that could give us complementary and verifiably information of the two main objects of study. All interviews were conducted in Shanghai at the offices of the different companies. They were also recorded so that the information used in the study would be as precise as possible. The information from the different companies was then compared to detect patterns of similarities and differences between the cases, but also between the interviewees perceptions and opinions concerning the topic. In relation to the kind of information needed for the research question, we found it highly relevant to use interviews as the main form of collecting data.

2.3.3.2 Documentation
We also used documentation as a way of collecting empirical data. Documentation can take many forms for example: letters, agendas, administrative documents, news clippings, articles, etc. (Yin, 1989). The companies interviewed provided in some cases material that complemented the interviews, which could for example be a disc that described the different parts in a specific marketing campaign. This material gave us more tangible data but it also helped us to confirm, or detect differences, in the information we received from the interviews. Furthermore, we collected other sorts of documents as for example articles, paper clippings, pictures, ads etc. These mainly served as tools to verify and complement information gathered from the interviews.

22

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

2.3.3.3 Observation
A third research tool that we found useful for our thesis was observation. One reason why we chose to include this method of collecting empirical data was because we had limited knowledge about the life, people, values etc in contemporary urban China. The observations really helped us to get a solid base concerning the context of the topic. Another reason was to further complement but also verify information received from the interviews and the documentation. According to Yin (1989) observational evidence is often useful in providing additional information about a topic. The observations can range from formal to casual data collection activities, which means that they can be more or less controlled and measured. The observations we did were of more casual form in which we observed and took photographs of people, places, signs and advertising in magazines, on the streets, on billboards, in shopping malls etc. We also interacted with Chinese people and thereby tried to get a better understanding of the culture and how the Chinese urban people live and consume. We spent around three weeks in Shanghai to collect as much information as possible through observation. During this period we also did all of our interviews and collected most of the documents. This visit in total really helped us to get a good baseline of how the Chinese consumers interact and behave in their own context. We were able to observe and experience their environment in real life, which we found to be a basic understanding for a well conducted study. We believe that the combination of these three ways of collecting data complement each other in a good way. The study includes both personal interviews and documents of different form, which gives us more tangible data, (even though interpretation is needed here as well), but also general observation with somewhat even more abstract and interpreted information.

2.3.4 A QUALITATIVE APPROACH A case study can be of both qualitative and quantitative form. A quantitative way of conducting a study is according to Bryman based on a natural science model in which factors like variables, control, measurement and experiment play central roles (Bryman, 1997). Surveys and experiments are two of the most important research strategies in quantitative research much because of the fact that the different variables can be measured in a controlled way and generate valid knowledge (ibid, 1997). When it comes to qualitative research strategies it is more connected to a social science model. In this case other factors take the central roles such as interpretation, understanding, previous understanding, etc. (Gustavsson, 2003). The most basic characteristic in qualitative research is the will to see and express events, actions, norms and values from the perspective of the people being studied. Often used research strategies in qualitative research are participating observation and unstructured interviews (Bryman, 1997). Even though most case studies relay on qualitative evidence they can also include quantitative evidence, and sometimes even consist of only quantitative information. This is nothing that limits the use of case study as a research design (Yin, 1989; Gustavsson, 2004).

23

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Our study will be qualitative in which we will perform deep interviews with companies to get a better understanding in how western companies market themselves towards contemporary Chinese urban consumers. The interviews will be of qualitative form where we mainly use an open-ended technique when conducting all interviews. It is important that the person being interviewed can speak freely and supply both self-interpreted but also more verified information. We are both interested in the persons own perceptions and experiences as well as the results from for example a specific campaign or launch of a new product. The collection of documents and the observation study will also be of qualitative form. We will observe the different objects of study and collect documents in a way that will not generate data that can be put into statistical categories. The information will rather be used as a basic and complementary understanding of the topic, but sometimes also to verify the interviews.

2.4 ALTERNATIVE RESEARCH STRATEGY


All research strategies have their advantages and disadvantages and it is important to understand what they are when choosing the appropriate research strategy. When discussing different strategies, we only came up with one other alternative than case study, which we even considered to use in our study: survey. We could have chosen to conduct a survey and collect information from the different companies by sending out questionnaires. One of the advantages with this strategy is that it is not as time consuming as making face-to-face interviews, which is the alternative we found necessary as our main source of collecting empirical information. We might also have been able to include more companies in the study if we would have chosen survey as a research strategy, which could have made the generalization easier. Also we would have lower the risk of biased elements when not being able to affect the direction of the interviews. Reliability issues would definitely be easier to defend because of the fact that another researcher more easily could replicate the study; for example, one only has to use the same questionnaires. On the other hand, interviews often provide more information because of its dynamic form and it also gives the researcher more freedom to adapt to the person being interviewed. Everybody does not react and understand questions in the same way, and sometimes a person might avoid certain questions, which a researcher can detect and thus affect, when a more dynamic and flexible way of conducting a study is used. It also opens up for related questions that can be of great importance to the study, and not to forget, when doing face-to-face interviews, we get information from the interviewees body language, voice etc which can be valuable information. In our case we found it interesting to include observation as a way of getting a better understanding of the subject but also to create a solid base to our research. This is something that case study as a research strategy also allows. It was basically suitable for most of our different needs in terms of collecting useful empirical data and conducting the study in a satisfying way.

24

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

2.5 CRITICISM OF RESEARCH STRATEGY


There are some things that can be criticized when using case study as a research strategy. One of the greatest concerns that many researchers have is that of reliability. To conduct a reliable study, it must be possible for another researcher to follow the same procedures as described by an earlier researcher and get the same findings and conclusions as the latter. Yin says: The goal of reliability is to minimize the errors and biases in a study (Yin, 1989, pp. 45). It is practically impossible to not fully eliminate biases when conducting this type of study. There exist biased views and opinions in basically everything in this study; we as researchers have predetermined opinions about topics in the study, the person being interviewed also have his or her view and chooses to include and exclude information in the interview, all the empirical findings we include in the study is interpreted by us etc. It is important for every investigator to be aware of these problems and to work hard to minimize them. One should not forget that it is not only when using case study as a research strategy that biased views can influence the study; this is also a factor when conducting for example experiments even if it can be more of a challenge in this type of studies (Yin, 1989). In our case we are well aware of the fact that our previous knowledge and opinions concerning the companies included in the study and the country in focus, has affected the study in some sense. But by being aware of that fact and also discussing this problem between us, it helped us to better understand what our previous opinions and feelings are in relation to the topic. Even though, it is difficult to fully eliminate these biased elements. Another criticism of the strategy is that of generalization. A case study has to deal with the problem of knowing whether a studys findings are generalizable beyond the immediate case study (Yin, 1989). Generalization is intimate connected to validity and is sometimes called external validity (Gustavsson, 2004). When we want an answer to an empirical question, one cannot do a study that includes all individuals, situations, conditions as the research question contains. We have to make a selection, which creates problems of generalization (Wedin & Sandell, 1995). This is especially difficult when it comes to studies that include only one case, (i.e. single-case study). The defenders of case studies say that this type of strategy is generalizable to theoretical propositions and not to populations or universes. So the case study strategys aim is to expand and generalize theories rather than representing a sample that can be used in a statistical generalization (Yin, 1998). In our case we have decided to conduct a multiple-case study, which makes the factor of generalization easier that that of a single-case study. We are using two different cases so that we can be able to compare them, but still there are things that can be criticized. Even if the interviews will treat the same topic and we will ask the representatives from the companies somewhat the same type of questions, it is very difficult to perform identical interviews. The context in which the interviews are being held will differ as well as the interviewees knowledge, personality, behavior etc. The different companies might also have different experiences that sometimes can be hard to compare in a direct way. Another factor in relation to this problem is the fact that the person being interviewed is well aware of that

25

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

they are a part of an investigation and therefore limit their answers. They might also have a tendency to defend their company and exclude information that can harm the company but is crucial for our study. These and other factors will play an important part when conducting a multiple-case study and furthermore influence the studys ability to generate generalizable results. Furthermore, as mentioned before, the interview with the PR/event consultant-company was used to assist in verifying information received through the interviews with the Swedish companies. We found it highly useful to get complementary information from a company that has great knowledge concerning marketing strategies of the two Swedish companies, but that is not part of them. The information from this consultant company will then be given to us from a more outside perspective than of the Swedish companies themselves.

2.6 PREVIOUS UNDERSTANDING


Previous understanding is the building stone from which we can understand things around us. It is built on previous learning but also on experiences and feelings, which can obviously never be neutral. Therefore, it can be both an asset and a barrier when conducting a study. It can create problems of biased views and opinions that have an effect on the study in a negative way. At the same time previous understanding can contribute to a first orientation, which makes it possible to move on (Gustavsson, 2004). Previous knowledge about a topic can give the study depth and also make the researcher more attentive to empirical information that is not correct. A lot can be said about previous understanding but it is nevertheless impossible not to include some essence of it in a study, whether or not it is in a positive or negative way. When it comes to our topic, it took us a while to really grasp what our previous understandings were and how it affected us and furthermore the study. We did not know much about China and neither of us had ever been to China. We also live in a country (Sweden) that is well protected with a history of democracy, which we have learned to take for granted. We are in our twenties and have grown up with a pattern of consumption that is characterized as a western way of consuming; we do not ever have to worry about the basic needs, for example food, shelter and clothing, neither do we have to worry about getting an education and so forth. Our concerns lies mostly on another level and include things connected to self-realization. We are also very much influenced by other western countries like the United States, Great Britain, etc., which strengthen this need for self-realization. What we initially knew about China was what we had read, heard and studied. We now understand, after have been doing a lot of research on the topic, how little we knew and how many opinions that were not correct concerning everything from the country itself and the culture, to the people. Because of the fact that China has been, and still is in some respect, a very closed and controlled country, it is hard for us to even imagine how this has affected the country and furthermore the people. After reading a lot of articles about China in general and Chinese consumers in particular, we really understood that to be able to perform a well conducted study we have to spend some time in China. The trip

26

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

really helped us to broaden our understanding so we could continue our study in a better, less biased way. The two companies that the thesis is based on, IKEA and Absolut, are well familiar to us. Both companies are Swedish and they are well known and appreciated by most people in Sweden, including us. Of course we have previous understanding regarding these companies, and this is also something we had to take in to account throughout the process. IKEA is a company that we have grown up with; we bought our first furniture there when we moved away from home. And before that, we have followed our parents to IKEA once in a while to make bigger or smaller purchases. We have learned the IKEA concept pretty early and we more or less take it for granted. When it comes to China, they are not used to this type of concept that includes do-it-yourself, flat packaging etc., and these differences in culture and habits were in the beginning difficult to detect. We took this concept, which we think is really smart and in a sense obvious, and came to IKEA in Shanghai. For us IKEA in Shanghai was not really expensive at all, just as we are used to in Sweden. But when you compare the price-level to what the average Chinese earns per month, it was not really that cheap as we initially had experienced it. Here we had to rethink and soon we learned that previous understanding sometimes could create barriers, which limit the ability to assimilate new knowledge. In Absoluts case, we also found that our previous understanding had some affect on our way of approaching and assimilate different things throughout the process. In Sweden, Absolut is a known brand with, according to us, connotations of quality and security; typically Swedish one might say. We believe that we (the authors of this thesis) consume Absolut in a different way than they do in urban China; sometimes we drink Absolut to the hearing when we celebrate Midsummer or Easter, we can also drink Absolut when we go out on clubs or bars, even if we do not choose Absolut on a regular basis. We have been discussing if we see Absolut as a trendy brand, and we came to the conclusion that we do not really have that kind of feeling towards it. We appreciate their marketing concept and even think it is trendy and creative, but somewhere along the way we have a different view of the brand, as mentioned above. We believe that it might be because we are so used to the brand, which somewhat takes away the feeling of Absolut as a trendy and exclusive brand. This was something we brought with us to Shanghai when we did our interview with Maxxium, (the company that controls distribution, sales and marketing for Absolut in China). We were surprised that Chinese consumers did not see Absolut as a Swedish brand, but rather as an international brand. It took us a while to really understand how Chinese urban consumers consume the brand, which we could not fully connect to our own consumption of the brand. At the same time we found it very useful to have a good previous understanding about Absolut. We could ask better questions at the interview concerning the brand and also more easily detect biased answers. Of course we did not have to do as much research about the company as we would have been forced to do if we initially had limited knowledge concerning the object of study.

27

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

3 THEORY
The purpose of this chapter is to present the framework of theory we are using in order to better understand the field of research and in analyzing the empirical data of this study. We have identified two interdependent areas of theory to be part of this framework: Culture and Global marketing.

3.1 CULTURE
Values are a central part of any culture and vise versa. Paying attention to cultural values is inevitable in conducting successful global marketing and in studying the processes thereof. Therefore, we find it to be of major importance to describe the different dimensions of culture and values, for a better understanding of the behavior of the urban Chinese consumers and IKEAs and Absolut Vodkas communication with that group.

3.1.1 DEFINITION OF CULTURE There are many different definitions of culture. According to Hofstede, culture is the following:
The collective mental programming of the people in an environment. Culture is not a characteristic of individuals; it encompasses a number of people who were conditioned by the same education and life experience Culture defines communities and their members. Culture is not separable from individuals, nor from history. It includes shared values, norms, beliefs, attitudes, roles and language among individuals within a group who live during a common period in time (de Mooij, 2004). A culture and its inherent value system influences the individual in social processes, such as in behavior towards friends, family, work, education, and consumption (Chan, 1999).

3.1.2 CULTURAL VALUES Values are something that is learned within a culture. According to Bradley, cultural norms and values are in most cases developed ether by socialization or by acculturation. When developed by socialization, the norms and values are generated from life experience and/or influences of institutions such as family, religion and education systems. You might say that those cultural values are picked up somewhat subconsciously at young age. Acculturation, on the other hand, refers to a by the individual chosen process of learning from a foreign cultures value system (Bradley, 1999).
The values of a nation or subculture cannot be fully observed directly. It manifests itself in cultural products, such as literature, film, magazines, advertising, etc, or is derived from interviews with individuals in a society. Since people are only partly aware of their own values, asking might not always give the most accurate answers (Chan, 1999). 28

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

In order to be able to understand behavior patterns within any culture, it is of major importance to acknowledge the evolutionary nature of culture. Today, culture is more adaptive than it used to be. This is due to rapid technological advancements in society, globalization, as well as structural changes in the institutional triad of family, religion and education. Also the co-existence of different sub-cultures affects the dominant culture, when values of sub-cultures often are passed on to the mainstream culture. Many fashion and music trends have for instance been adopted from the punk or hip-hop communities over the years (Bradley, 1999).

3.1.3 HOFSTEDES FIVE DIMENSIONS OF CHINESE CULTURE Geert Hofstede has developed a model based on data from 85 different countries to aid the understanding and of cultural value differences. The model consists of 5 dimensions of culture: Power Distance (PDI), Individualism/Collectivism (IDV), Masculinity/Femininity (MAS), Uncertainty Avoidance (UAI), and the final score that was based on Confucian dynamism, Long-Term Orientation (LTO) (de Mooij, 2004).
Hofstede created the fist four dimensions by analyzing data from an extensive IBM-study on employee values collected between 1967 and 1973. Later on, further studies were conducted, for the first time including China. The fifth dimension (LTO) was added in 1991 (Fang, 2003). Hofstedes five dimensions are critiqued for being too static and being build upon stereotypes and simplifications. Keeping that in mind, it can however provide an initial understanding of a nations culture (Fang, 2006). Therefore, we find it relevant to first give a description of the five dimensions in relation to the Chinese culture, to be continued by a review of more recent cultural theory research. The below graph shows the scores for China, according to Hofstedes five cultural dimensions.(Hofstede, 2003).

Figure 4. Geert Hofstede Cultural Dimensions (Hofstede, 2003).

Power Distance: A significantly high score illustrates the presence of inequalities within the society. There is not an equal allocation of power and wealth among the countrys citizens. This is a typical score for a communistic or otherwise undemocratic nation with a strict power structure Individuality: The raking of 20 is below the score of all other Asian countries. This low score of individualism shows on a collectivistic society, where there is an emphasis on

29

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

family, extended family, group loyalty and the formation of strong relationships between members of the society. Masculinity: A medium/high score. A high ranking indicates that males dominate a significant portion of the society and power structure. The traditionally masculine values of achievement, control, and power are reinforced throughout the society. China ranks slightly higher than the world average of 48 in this dimension. Uncertainty Avoidance: Measures the members of a countrys tolerance for change, risk and uncertainty. A low ranking would indicate a less rule- and regulations oriented society that easily accepts change and promotes risk-taking, whereas a high score signifies a nation that attempts to avoid uncertainty through laws and varied means of government controls. Long-term Orientation: Chinas highest score. Measures the societys perspective on time, and if it is past or future oriented. The extremely high score indicates values of long-term devotion and commitment as well as perseverance. . (Hofstede, 2003)

3.1.4 CRITIQUE OF HOFSTEDES DIMENSIONS OF CULTURE We have to take into consideration that much of the data that Hofstedes research is based upon were collected many years ago (1967-1973). Are his findings really valid in the age of globalization that we find ourselves in today? There are critiques of Hofstedes way of analyzing culture and his five dimensions describing cultural values therein, claiming that his theories are out of date. In this section we will preset the thoughts of two of them, Tony Fang (2006, 2003) and B. McSweeney (2002), which will contribute to our frame of reference in understanding and analyzing Chinese culture and consumption.
In his article, From Onion to Ocean: Paradox and Change in National Culture, Tony Fang (2006) use the the onion and the ocean as metaphors, to illustrate respectively Hofstedes static view on national culture (onion) and the dynamic and paradoxal nature of a nations culture that is true today (ocean). According to the onion comparison (originally created by Hofstede himself), the outer layers of the onions peel equals symbols, heroes, and rituals, and the inner core of it symbolizes basic assumptions, values and beliefs. The core of the onion is stable, while the outer level is apt to change over time. In this view, each national culture is illustrated by separate onions and will stay separated in interaction with each other - in other words most certainly collide. Also, as an onion is either big or small size wise, so are cultures, either/or, and can therefore not be both feminine and masculine, or individualist and collectivist at the same time (Fang, 2006). Fang (2006), on the other hand, describes culture as an ocean - vast and in constant movement, without borders but sometimes separated, and with visual wave patterns as well as unknown depths. Firstly, he critiques Hofstedes use of bi-polarization (being either/or) as a method of understanding and analyzing culture, as it theoretically enables opposites to co-exist. Instead he promotes viewing culture in the light of the Yin Yang

30

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

philosophy, acknowledging contradictive and dynamic values and behavior within any national culture. As Yin Yang produce each other, a cultures tendency towards one extreme of a bi-polar dimension (e.g., femininity) creates the opposite tendency (e.g., masculinity) of the same culture (Fang, 2006, pp. 7). Culture assumes capacities to reconcile the opposite poles of all cultural dimension and can thus be both feminine and masculine, both long-term and short-term, both individualist and collectivist, etc. in a dynamic process of change and transformation (Fang, 2006, pp. 5) Secondly, Fang (2006) comment on Hofstedes context- and time-free approach to culture, meaning that cultural expressions are indeed affected by in which situations and what moment in time they take place. Furthermore, he apposes the idea that only behavior is changeable while values and beliefs stay constant over time. In contrast, the relationship between values and beliefs on one side, and behaviors and artifacts on the other, is a dynamic one. Not only are behaviors shaped by beliefs and values but they can proactively shape new beliefs and values, thereby germinating the process of culture change (Fang, 2006, pp. 11). Contradictory to Hofstedes beliefs, culture is not constrained by national boundaries. Globalization has enabled influences and cultural expressions to travel around the world in a fast pace, without any regard to borders. TV, the Internet, magazines, cell phones, air travel, films, brands, etc. are bearers of culture and promote more rapid changes in societies than possible before. Cultural groupings are therefore no longer restricted to nations, but are most often of ethnic, religious, industry-specific or self-selected nature. Instead of seeking an explanation for assumed national uniformity from the conceptual lacuna that is the essentialist notion of national culture, we need to engage with and use theories of action which can cope with change, power, variety, multiple influences including the non-national and the complexity and situational variability of the individual subject. (McSweeney, 2002, pp. 113) There are also specific critique to Hofstedes fifth dimension, Long-term orientation, questioning its validity and relevance (Fang, 2003, McSweeney, 2002). This dimension, supposedly being founded upon two contrasting poles of Chinese Confucian values (divided into positive and negative values), should distinct cultures as to being long-term or short-term oriented (either/or). This is not possible, however, since the values on each pole are highly inter-related and hard to separate from each other. China is an excellent example of the dynamic and paradoxal nature of national culture discussed in the above critiques to Hofstede. We will use the provided ocean perspective in analyzing IKEAs and Abloslut Vodkas marketing towards the Chinese.

31

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

To further clarify the dynamism of Chinese culture, the next section will provide a further description how different cultural groups co-exist and interact within the Chinese society.

3.1.5 THE DYNAMICS OF CHINESE CULTURE As shown in the below model, the Chinese culture is, in the context of globalization, shaped by an interplay between different cultural groupings. Foreign cultures, people and brands present in Chinas today communicate and interact with the Chinese people. During the 30s and 40s there where a lot of western business people living in Shanghai, but they kept to themselves and was never part of the Chinese culture. Instead, they considered themselves to be above the Chinese. Today, on the other hand, the new China is being build by westerners and Chinese together. The foreign companies present on the Chinese market are part of creating the new Chinese society and culture. Integration leads to evolvement. Western brands are part of and influence the lifestyles and culture of the Chinese people (Fang, 2005).

Figure 5. What is Chinese Culture (CC) today? (Fang, 2005).

The model illustrates how Communism, Capitalism and Corporate Cultures (both foreign and domestic) co-exist and interplay within the Chinese Civilization (traditional Chinese cultural values). They are all represent different values (listed in the model) that influence the Chinese culture. Examples of some of those values are; Family & Face (Chinese Civilization) Planning economy & The Cultural Revolution (Communism), Professionalism & Branding (Capitalism) and Entrepreneurship & Individualism

32

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

(Corporate Culture). This is Chinese culture of today, but being dynamic, as the cultural groupings change, so will the culture.

3.1.6 METACULTURE Greg Urban describes how culture evolves with the concept of metaculture in his book with the same name. Metaculture defines the movement of culture throughout the modern world from country to country or from one group of people to another. Culture is not standing still - it is always on its way somewhere. In the global society of today, cultural objects are spread through TV, music, the Internet, magazines, etc. According to Urbans theory, a cultural expression is either unique or, as in most cases, a copy or a modification of an old expression.
The entrepreneur takes something old into a new world, or ties something new out on an old world. The former is transparently cultural taking the already given to new people, new places, another generation, hoping that something from the past will carry over. (Urban, 2001, pp. 2) In the spread of culture lies a human force of always wanting something new and therefore the desire to produce something that appear new enough compared to the old, but necessarily not completely new, to meet that demand. This creates a met culture of newness, which Urban identifies as a major driving force behind capitalism.

3.1.7 CULTURAL CAPITAL Pierre Bourdieu also discusses the acceleration of culture in his book Distinction A Social Critique of the Judgment of Taste, in where he provides a framework for symbolism in consumption He states that consumers tastes are formed within a social structures and are determined by social class. The social class Bourdieu refers to is however not only defined by traditional demographics, but is characterized by habitus a set of group specific tastes, habits and values. The symbolic hierarchy (status) within and among the different social classes is determined by the different kind of capital people possess. But not only by economic capital, which conventionally has been the typical means to measure status. In addition, he has identified three other types of capital to influence those structures: cultural, educational and symbolic capital (Firat, Venkatesh, 1995). Depending on a persons belonging to a certain social class or aspiration to a higher class, these forms of capital (related to habitus) has bearing on consumption and the preference for specific brands.

3.2 GLOBAL MARKETING


Since the aim of this research is to investigate how two Swedish international brands how established themselves on the Chinese market, a deeper understanding of global marketing strategy is of central importance. We will start by defining the concept of a

33

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

global brand. Thereafter, a three-layer model of branding & two-way communication will be presented, followed by a model illustrating how to reach maximum market potential and increase the demand for a brands products or services.

3.2.1 DEFINITION OF A GLOBAL BRAND In theory, a global brand is defined as a brand present in most countries in the world, where all facets within the brand are globally standardized - with no variations in brand identity, positioning, marketing mix, distribution, strategy and advertising.
A global brand is one which shares the same strategic principles, positioning and marketing in every market throughout the world, although the marketing mix can vary. It carries the same brand name or logo. Its values are identical in all countries, it has a substantial market share in all countries and comparable brand loyalty. The distributions channels are similar (De Mooij, 1998, pp. 16) In view of this definition there hardly exists any truly global brands in the world. Usually there will be some modification to the product mix, advertising, or brand strategy, to meet the needs of local consumers (ibid).

3.2.2 THE THREE-LAYER MODEL The purpose with this model is to help marketers to gain a comprehensive interpretation of the impact of culture in branding, and particularly of the role and significance of added value.
The three-layer model explains the two characteristics of branding value adding and communication. From a brand managers perspective, the first layer of branding consist of focusing on the product or service itself, in terms of attributes, rewards for users, philosophy, design, etc. The second layer of branding concerns the brand name, where certain questions can be asked. Does the brand match the product or service philosophy? How does it translate into other languages? Are there any misunderstandings in foreign languages? The third layer of branding treats the values or associations of the brand. What values are necessary or useful to add? What kinds of associations are desired? How can those values be added? How can the associations be realized? What do consumers think about these values? (Li, 2001). When it comes to the consumer perspective, a branded product is seen as a transparent ball with three layers. The fist layer, the core, consists of the product or the service. The third layer represents the additional values and is less tangible and concrete than the core, although it is usually as important as the core. The middle layer is the brand name and links the two other layers together (ibid).

34

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

This model reveals another important characteristic of branding, that of branding as interactive. Marketing in general, including branding, is not a simple flow from the marketer to the consumer, rather an interactive process (ibid).

Figure 6. Branding seen as a 3-layered, 2-way communication (Li, 2001).

3.2.3 MAXIMUM MARKET POTENTIAL AND CURRENT MARKET DEMAND Many new markets and most global markets are well below their full market potential, meaning that there are large numbers of possible customers who have not yet entered the market. This model describes five major forces that can restrict a market from reaching its full potential (Best, (2005).
Awareness: These potential customers would buy the product if they knew it was available and accurately understood its benefits. Availability: Potential customers are aware, able to buy, and have the desire to buy, but the product or service is not available in their geographic market. Ability to Use: Although the product is affordable and attractive for customers, they are not able to use it because of the environment in which they operate. These customers lack the knowledge, other resources, and/or requirements to make the product or service workable. Benefit Deficiency: The key benefits of the product or service are not important (or are even unattractive) to a subset of potential customers.

35

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Affordability: Regardless of product attractiveness or perceived benefits, the coast is simply too high for some customers (ibid).

Figure 7. Maximum market potential and current demand (Best, 2005).

Because the number of consuming units is always less than the maximum market potential it is important to take these factors into account before preparing any marketing activities (ibid). When a company has identified one or several factors that have an effect on their specific market, they will now have to move to the next level and develop propermarketing efforts to maximize their market potential.

4 EMPIRICAL DATA
In this chapter we will present our empirical data, which this study is based on. We have developed two cases stories about ABSLOUT VODKA and IKEA, presenting the results of the different parts of our empirical findings. Because of the interviewees importance in collecting the empirical data for this study, we will start this chapter by presenting the respondents, followed by the two cases.

4.1 PRESENTATION OF RESPONDENTS


Maggie Shen is the group brand manager at Maxxium in Shanghai. Maxxium are responsible for all marketing, sales and distribution of Absolut Vodka in China. Other spirits brands in the Maxxium portfolio are for example Famous Grouse Scotch Whisky, Jim Beam Burbon and Cointreau liqueur. Maggie Shen is in charge of some of

36

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Maxxiums brand developments including Absolut Vodka. She is also a coordinator for different team projects. Magnus Omstedt works at the marketing department at the head office (Service Office) for IKEA in China. The office is situated in Shanghai, next to the IKEA store. Marketing research and strategizing for all of China is controlled from the Shanghai office. Magnus main responsibilities include conducting market research in China (in existing regions and prior to store openings in new areas) and preparations for the future launch of IKEA Family in China. Pr Uhlin is the general manager at Eastwei in Shanghai. Eastwei is a PR- and branding consult agency with offices in Shanghai, Beijing and Guangzhou. They help foreign companies established on the Chinese market with brand analysis and the development of strategies for communication, event management and media relations, They cover more or less the whole of China, in terms of media contacts and PR. Some of their Swedish retainer customers are IKEA, Absolut Vodka, Electrolux and Saab, but they also work with American and other European companies.

4.2 ABSOLUT VODKA CASE

The Creative Vodka


COMPANY BACKGROUND

Absolut Vodka is a premium spirits brand and is part of the V&S Group. The V&S Group was established in 1917 and is the leading producer and distributor of spirits and wines in Northern Europe and is one of the worlds ten largest international spirits companies. The Group has operations in 12 countries and sales on about 125 markets. The most important brand is Absolut, which is the third largest premium spirits brand in the world. The V&S Group consists of three different business areas: V&S Distillers, V&S Wine and V&S Absolut Spirits. It is the latter that is responsible for the production, marketing and distribution of Absolut Vodka (Vin & Sprit, 2005; Maxxium, 2005). The first bottle of Absolut Vodka was exported from Sweden to the US in 1979. Since then, Absolut has achieved significant sales growth from 90 000 liters (Maxxium, 2005) to 81 million liters in 2005 (Affrsvrlden, 2005). Krister Asplund, factory manager of the V&S Absolut Spirits in hus, says in a press release in the end of 2005: 37

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

9 000.000 9-litre boxes during one year is a milestone in V&S Absolut Spirits success. We havent produced this many boxes in hus any previous year, which proves that Absolut is appreciated by consumers all over the world. During 2005, we produced as much Absolut as we did the first nine years counted together. Krister Asplund, V&S, 2005 (Affrsvrlden, 2005) Distribution, sales and local marketing in China are handled by Maxxium, in which V&S owns 25 percent. Absolut has been on the Chinese market for more than ten years, but before Maxxium took over sales and distribution, smaller distributors handled it, says Maggie Shen (2005), the marketing manager of Maxxium in Shanghai. Maxxium started business in August 1999 and the formation of Maxxium in Shanghai was developed in September 2000 (ibid). According to Maggie Shen (2005), Absolut has a market share of over 50% within the vodka market in China today. Their main competitors are Smirnoff, Stolichnaya and some smaller brands.

THE ABSOLUT BRAND


Although Absolut is the leader in the Chinese premium vodka market, it remains unfamiliar to the vast majority of Chinese, who are used to local spirits and styles of drinking (PR Newswire, 2005). The brand and the business ran effortlessly for two decades. Absolut was introduced in the U.S in 1979 and soon after the first print ad appeared. It features the Absolut bottle in the centre of the picture with only two words included: Absolut Perfection (Miller, 2004). The minimalist clear bottle, with its long, wide neck and the words ABSOLUT VODKA spelled out in the glass in evenly sized letters, stands out. New product lines such as Absolut Kurant, Absolut Citron, etc. is introduced naturally with minor changes in appearance such as new lettering color. Combined with the trendy advertising campaigns, Absolut gets linked to a hip, creative and high-end culture. The typical Absolut ad displays the distinctively shaped bottle above a two-word headline that starts with the word Absolut. The bottle is always there but in different settings, which gives the brand a feeling of constant unexpected change (Shmitt and Simonson, 1997). The different themes and settings give the brand its creativity but at the same time its consistency. Maggie Shen (2005) says: You can see it is very individualistic, very consistent, the bottle is always there (). Here are some examples of campaigns where the bottle is shown in different creative settings: Absolut Spring, Absolut Take-Out, Absolut Cruelty, Absolut Duplex, Absolut Supermodel.

38

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Absolut print ad campaigns (Absolutad, 2006). The brands view from a marketing perspective differs a bit from what Maxxium believes is the perception for the consumers. From the marketing people perspective, the Absolut brand is about simplicity, clarity and perfection, says Maggie (2005). At Maxxium, they believe that for the consumers, Absolut is perceived as a trendsetting brand connected to creativeness and originality. They also think consumers see Absolut as a processing brand - as a developed brand that is growing quite fast (ibid). In China, sometimes information in ads, labels etc need to be translated to reach the majority of the potential customers. This can create problems for a brand, especially when the translation is not adequate to the original. Maggie (2005) says that labels and recipes are more or less always fully translated, but when it comes to the advertising, it depends on the content. If it is a very complicated campaign they might make a sub headline to clear out eventual interpretation problems. When it comes to the Chinese language and its symbols of meaning, it is even more difficult to make these translations work with the original message. She explains how the translation works: It is not literary translation. It is more like, you have to recreate, but the meaning is very close to the original copy. It is never, you can literary translate everything. If we give you a Chinese saying, if you translate it, definitely you loose something. A good translator is never literary translating everything. You will put in some of your understanding of that. (Maggie Shen, Maxxium, 2005) It is not only about overcoming language barriers, but also having to cope with the balance of staying true to the Absolut brand while making a campaign informative, interactive and inviting to a large Chinas population (PR Newswire, 2005).You want to make the brand more relevant, but you dont want the brand to loose the global essence. So it is a balance, I would say (Interview, Shen, 2005).

39

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

The Absolut family today consist of Absolut Vodka, Absolut Peppar, Absolut Citron, Absolut Kurant, Absolut Mandarin, Absolut Vanilia, Absolut Apeach and Absolut Raspberri (V&S Distillers, 2005).

Absolut assortment 2005 (Shanghai Star, 2005). In Shanghai all the flavors have not yet been introduced but the consumers seem to appreciate different flavors. The Absolut Vanilia and the Absolut Mandarin were introduced 2005 and they plan to introduce Absolut Apeach and Absolut Raspberri in 2006. The different flavors are doing quite well in China; together they consist of around 20% of the total business. Absolut Citron is the biggest flavor in China right now (Interview, Shen, 2005). When it comes to evaluating the brand, Maxxium are doing different types of marketing research. They perform research concerning brand awareness, brand health etc, but they also do research concerning present trends and what will happen in the future (ibid).

TARGET GROUP
The communication target group for Absolut in China is between 25 and 35 years old and are more individualistic than the average Chinese, with jobs in more creative areas like in the art, fashion or advertisement field. They tend to be very fashion conscience, passionate to life, willing to socialize with their friends, etc. It is important to understand that the communication target group is different from the consumption target group, which is much bigger. These are the consumers that in some sense look up to the consumers in the communication target group and tries to reproduce the consumption of brands of this group (Interview, Uhlin, 2005). Compared to Sweden, it works in more or less the same way, but as Pr Uhlin at Eastwai in Shanghai explains, there are still some differences:

40

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

If you compare this to Sweden, I would say that the target group here is more trendy than in Sweden, actually. It is a smaller group who drinks Absolut. (Well, they do their communication the same way in Sweden; they have a group who is the communication target group, and those are pretty trendy too in Sweden.) Furthermore, they have a consumption target group and that is not exactly the same. They think that if we want to communicate to this group, others will observe and wanting to be like them and thus buy Absolut. But in China I think that it is more the same group, communication- and consumption target group, and that is a smaller group who is more sensitive to trends than those in Sweden, I believe. (Pr Uhlin, Eastwei, 2005) Maggie (2005) says that they will always target the young rather that the old but that the age range is not that limited. She believes it is more about your life attitude: If you are working in the fashion field, no matter if you are 50, you are still an Absolut drinker (Interview, Shen, 2005).

MARKETING STRATEGY
The marketing of Absolut in China is very much in line with the global strategy, which is possible because Chinese people treat Absolut as an international brand. Sometimes though, Maxxium choose to adapt their marketing to better coincide with the local environment. For example, they recently did a campaign in relation to the Chinese New Years, which is a very important holiday in China. This was the first local Absolut campaign for China in a bigger scale (ibid). The main aim of the New Years campaign was to educate the audience about the values and characteristics of the Absolut brand, but in a familiar and localized way (PR Newswire, 2005). The campaign featured an Absolut bottle emblazoned with the Chinese character fu, which means fortune, blessing and happiness. When turned upside-down, the character symbolizes welcome, and is a common tradition for Chinese people to put on their front door for New Years. The campaign take advantage of these two meanings when the bottle is put on innovative rotating billboards and print ads, allowing it to be turned either direction to communicate both meanings. The New Years campaign also represents the first time Absolut created a Web site specifically for a non-English speaking audience. Integrated with the Web site, the offline campaign features billboards, print advertisements and one-line advertising, all specially designed for a Mainland Chinese audience (ibid). Other marketing activities connected to this campaign were promotions in bars, restaurants and liquor stores (Wall Street Journal, 2005). The launch of the campaign represents a significant achievement. In less than four month, Absolut received all necessary approvals from the Chinese government and began to work with different agencies in China to gain deeper understanding and appreciation of Chinese culture (PR Newswire, 2005).

41

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

The New Years campaign (Wall Street Journal, 2005). Pr Uhlin at Eastwei got the impression that Absolut got mixed opinions from Chinese consumers after the campaign. Some reacted negatively and thought the campaign was strange and different from what Absolut normally does, but others received the campaign in a positive way and felt that it was fun that Absolut did something in relation to China for once (Interview, Uhlin, 2005). Maggie believes it was very well received. We got a lot of media exposure, and even from international ones like Reuters. This shows how a brand respects the local culture and the ambitions of the brand to be really part of the country (Interview, Shen, 2005). Another example of including local elements in their marketing is when Absolut did the campaign Absolut Fashion. In this case they worked together with local fashion designers to create a Chinese touch to the campaign. Even in Shanghai where people are very international and westernized, Maggie believes that it is still important to work on a local level, make the brand more relevant, and help people get closer to the brand (ibid). It can also differ a lot concerning how the marketing is used in different cities and regions. Maggie explains: We have just done one project, the Vanilla launch in China. We did it in Shanghai but also in Beijing. The Shanghai one was very international; it was all about the fantasy, very western style. But when we did the one in Beijing it was completely different. It is still fantasy, dreaming but in a cultural way. We used the rice-paper, we did the white lanterns, everything () the concept is still the same, but the execution is completely different. (Maggie Shen, Maxxium, 2005) Absolut is very strong at print advertising and they tend to advertise in mostly niche magazines such as fashion, lifestyle, photo, interior design, film and other creative magazines. Today they have no present TV advertising, because they believe it is to mass, which is not in line with their target group. Next year they will develop their marketing on the Internet and work more with on-line campaigns. Sometimes Maxxium 42

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

together with Eastwei have PR events for Absolut in Shanghai and Beijing to target the core consumers like the art designers, party animals in the city, etc. There are also some consumer events in other cities. Maxxium tries to avoid sponsorship because they believe that the Absolut brand should be in focus. They have been involved in some brand cooperations, but only in a limited scale. An example of Absoluts integration with other brands is the marketing activities they had at IKEA during Christmas 2005. Especially for the Christmas campaign, Absolut developed a Christmas promotion pack, which was sold at IKEA. Also they did a special tasting where the customers got to try Absolut together with herring, etc. Normally, Absolut is sold all year in the IKEAs Swedish shop together with other Swedish specialties (Interview, Shen, 2005). When it comes to the Chinese Absolut website, there are some significant differences compared to the global one. It is written entirely in the simplified Chinese characters, which are standard on the mainland (Newswire, 2005). It also has different messages and is not generally focusing on campaigns, as the global one does. To be able to reach the Chinese consumer in a better way, the website contains more information concerning how to make drinks; step-by-step illustrations on how to make a cocktail and what to mix Absolut spirits with. This is necessary modification for the Chinese market due to the fact that there is a lack in knowledge of how to make cocktails (Interview, Shen, 2005).Vodka category is quite new to the Chinese consumers and making cocktails is also at the very early stage (ibid). During the New Years campaign, the web site featured three different sections. The first section celebrated the Chinese New Year and its numerous customs and traditions. The rotating bottle was shown and signaled either the symbol of fortune/blessing or welcome, as mentioned earlier. The welcome side offered for example recipes on different New Years drinks. In fortune/blessing, visitors were invited to create a traditional paper lantern and share it with friends. The second section featured numerous drink recipes on different Absolut flavours currently existing in China. Here, consumers throughout China were invited to experiment with the drinks and learn more about the international cocktail culture. The third section featured a video on the history of Absolut and the heritage of the brand. Visitors could learn about the winter wheat that Absolut is made of, but also about the town of hus in Sweden, where all bottles of Absolut originate (Newswire, 2005). Pr Uhlin at Eastwei also talks about differences in information aimed at the Chinese consumer compared to the global messages: () if you look at the product communication you can see that it is much more basic than it is in Sweden. In Sweden they are doing more creative drinkmixing, in China it is more about how to mix Vodka with Vanilla-Coke. You can do it!. It focuses more on basic education, simply, how to consume Vodka! (Pr Uhlin, Eastwei, 2005)

43

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

It is not only on the web page where the educational elements are in focus. In an article in Shanghai Star (2005), which is an English-language newspaper in Shanghai read by numerous of people, Lo Chang writes examples of how to best make drinks out of Absolut Vanilia: One of the best ways to drink Absolut Vanilia is to mix some of it with coffee latte or cappuccino, which adds a slight vanilla fragrance to the coffee. Other options for mixes include Coke, Seven-Up, apple or orange juice, ginger ale, and the popular coconut milk. The proportion of vodka to the mix is best kept at 1:2. If you want to taste pure vodka, a simple slice of apple or orange dipped with some sugar or cinnamon powder makes a perfect match. (Lo Chang, Shanghai Star, 2005) Absolut have developed the education-concept and has started the so-called Absolut Academy, which consist of two parts. The fist part focuses on the brand and explains marketing concepts of the Absolut brand and discusses some product attributes, etc. The second part explains more on how to mix creative drinks with Absolut as a base. Normally they invite bartenders to take this course so they can get inspiration and fun recipes; basically learn how to use vodka in drinks. Sometimes they introduce new flavors with one or two recipes so that the bartenders know how to mix tasty drinks with the different flavors.

FUTURE PROSPECTS
Maggie Shen (2005) believes that Absolut has a great potential of recruiting more consumers to the brand. She speculates on who the new consumers will be: () China is such a huge market. Actually China is the biggest beer market in the world. It is the biggest! So actually if you are talking about who will be the next consumersbeer drinkers! You upgrade them to spirit drinkers. So it is huge potential. (Maggie Shen, Maxxium, 2005) She finds it difficult to speculate in and to forsee what they will do in the future. Generally speaking, they will still follow the global strategy, but there are some ideas that might be interesting for the future. Maggie thinks is could be of interest to work with some regional projects and cooperate more with local elements, for example local artists, to create a translation from a Chinese culture perspective. Another thought is to introduce new consumption methodology for the Chinese consumer, more connected to the Chinese culture. Maxxium has for example introduced another of their brands, Shivas, to a new way of consuming the product for the Chinese together with green tea. It is very popular, Maggie says (Shen, 2005).

44

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

4.3 IKEA CASE

Design for the many people


IKEA is the Swedish furniture store that is conquering the world, continent by continent. It is not an understatement to say that it is an internationally successful company, with a vision to create a better everyday life for the majority of the people by providing welldesigned, high quality home furnishing products at low prices. Ikea has brought design to the masses. It has helped people realize the value of well-designed furniture this is contemporary design in a digestible way. Its equivalent of taking wine and putting it on the supermarket shelf. (Lewis, 2005, pp. 19)

COMPANY BACKGROUND
Ingvar Kamprad founded IKEA in 1943. The name was derived from his initials (I and K) and the first letters in Elmtaryd and Aguunaryd (E and A), the name of the farm and the village in Smland where he grew up IKEA. In the beginning all types of merchandise was sold by Ikea, as long as the price could be kept low. In 1951 Ingvar decided on to focus his business on large-scale sales of furniture only and during the rest of the 1950s IKEA evolved into what it is today. The first catalogue was released, the idea of flat packages was formed, and the first store was opened in lmhult in 1957. In its quest to furnish the world, IKEA is so far (as per August 31, 2005) present with 220 stores (24 of those are franchises) in 33 different countries in Europe, North America and Asia. In the fiscal year of 2004/2005 (ending August 05) an estimated number of at least 400 million people visited IKEA stores worldwide. The IKEA catalogue was printed in 160 millions copies, in 52 editions and 24 different languages. The turnover of this period rose by EUR 2 billion to EUR 14.8 billion compared to the previous fiscal year. Its not only in terms of retailing that IKEA acts globally, the same goes for purchasing and production. The 9,500 products are manufactured in 53 countries all over the world, depending on where the best deal is struck, with most of the purchasing done in China, Poland, Sweden, Italy and Germany (IKEA, 2005a).

THE IKEA BRAND CONCEPT


What makes IKEA different? IKEA has a very strong corporate culture, built upon a belief system and set of core values that are present in all activities throughout the company. Ingvar Kamprad is the soul of IKEA. His ideas and visions are what the IKEA

45

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

culture is all about to produce inexpensive, well-designed, quality furniture and interior solutions that as many people as possible, all over the world, can afford. The fact that Kamprad is officially retired since 1986 doesnt stop him from still being involved in every aspect of the business. He has opinions regarding everything from how the hot dogstand is run, the prices and displays of products, to the layout of a new store. Even though allegedly being the richest man in the world, Ingvar Kamprad is famous for his life philosophy of always searching for the cheapest possible alternative. There are many stories and myths about his economical ways; among others that he travels in a rusty old Volvo, flies economy class, use public transportations whenever he can, and that he recycles his teabags. Wherever theres a penny to be saved, he will make sure to do so. This philosophy of cost-consciousness has rubbed of from the personality of its founder to the personality of the IKEA brand. The IKEA concept is founded upon a partnership with the consumer and value-for-money orientation. In using design and creative ideas to find smart solutions for manufacturing, searching for the cheapest production facilities globally, and by purchasing large quantities IKEA achieves the lowest possible retail price for their products. All furniture, that can be, are packed flat to reduces distribution and storage costs, as well as making it easier for the customers to transport to their home. The IKEA stores look exactly the same all over the world, with room settings displaying the products in the context of a home environment. They are laid out in a way that makes the shopper pass every product category when following the set path leading through the store to the check out counters making them pick up things they didnt knew they needed in the fist place. All stores are equipped with a restaurant area, where the Swedish meatballs are a given on the menu, that gives the shoppers a break and energy to keep on. By the entrance there is a childrens playroom where the customers can drop off their kids. To visit an IKEA store is more than just shopping, it is an experience in itself to enter the hyper-reality of the IKEA world. To many IKEA fans, it seems to be more of an exciting and inspirational event, than a must. Much like a daytrip to a theme park (Capell et. al, 2005). Through guidance of information notes attached to the displayed furniture in the store, the customers pick up the flat packed furniture themselves in the self-service warehouse on their way out. Once at home they also do the assembling themselves, a concept called DYI (do-it-yourself). This makes the consumers part of the production process and helps IKEA to keep the manufacturing costs down, which in the extension enables lower retail costs (Ikea, 2005b). Ikea we love it and hate it, lean on it, and shun it, but we keep coming back for more. Ikea is an anti-marketing brand. On paper it doesnt work. It never asks its customers what they want, but tells them instead. The barriers to purchase are extraordinary. Were expected to get into our cars, drive out of town, become gnarled up in traffic, be heard around a spaceship of a shop with a thousand other followers,

46

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

collect our own stuff from the warehouse, and then build it with missing screws and unintelligible instructions. (Lewis, 2005, pp. 23) Not to be forgotten is the IKEA catalogue - the number one marketing tool for IKEA (Interview, Omstedt, 2005)) and one of the corner stones of the IKEA brand. It is the most widely distributed book in the world, and communicates what IKEA stands for to the masses. It is also a great source of inspiration to many and can in that sense almost be comparable to an interior magazine but featuring IKEA products only. Another corner stone is lmhult in the south of Sweden, a town very close to where Ingar Kamprad grew up. IKEAs heart is in lmhult. All global communication material and product designs are created and controlled by the headquarter office in lmhult, Smland (ibid).

THE CHINESE EXPANSION


There are currently (Dec. 2005) three IKEA stores in China, excluding 4 franchise outlets in Hong-Kong, and there are plans to add 10 more stores by the year 2010. We will open one new store every 6 months, explains Magnus Omstedt (2005). IKEA first entered the Chinese market in 1998, by opening a store in Beijing. The second store in China was opened in Shanghai in 2001. IKEA grew out of that first Shanghai location pretty fast, and in 2003 a new and four times bigger Shanghai store in the Puxi-district opened, replacing the old outlet. At 33,000 square meters, this store was the second largest in Asia (Miller, 2005). The most recent opening took place in Guangzhou (Kanton), in the south of China, in October 2005 (Interview, Omstedt, 2005). In 10-15 years, China is estimated to be IKEAs biggest market world wide, hence the companys rapid expansion in this region. When fist launched in China, IKEA was in the eyes of the consumers considered to be an expensive western brand, which was far from what IKEA stands for and their slogan affordable solutions for better living (Ikea, 2006c). The high price level was due to high import taxes, freight costs, etc. IKEA has since then shifted a lot of its production to local factories and has therefore managed to lower its prices in China by 50%. Today, about 20% of all IKEA products globally are manufactured in China. Even though this has helped to improve the price image of IKEA, which is now considered as mid-range, it is still perceived as more expensive than what they would like. A fact to be considered in discussing this is also the low levels of income in China. The same IKEA shopping basket that equals two months of salary for Swiss customer, would equal one and a half years of income for a Chinese customer (Interview, Omstedt, 2005).

47

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

MARKETING RESEARCH
In order to better understand the Chinese consumers and their way of life, home situations and needs and wants, IKEA conducts marketing research in terms of focus groups, home visits and surveys (Miller, 2004). Owning or renting your own home is fairly new to the Chinese people. Prior to 1998, housing was provided to the citizens through their work unit. Therefore, home decoration and interior design is a new cultural phenomenon in China (Lewis, 2005). Magnus Omsted (2005) also explains that when buying an apartment you basically get a blown out space, without floor, fixtures any appliances. The buyer needs to put everything in from scratch, and is of habit of buying everything at once at the same place, and preferably hiring a company to handle the transportation and installment. The consumers are therefore not used to DYI (do-ityourself) or to add furniture or details to the interior continuously. They buy in sets, he says. An average Shanghai, Beijing and Guangzhou apartment is around 80 square meters (bigger than an average Swedish apartment), with a kitchen smaller than European ones, and often has a balcony. The TV is the central of the home, which makes the living room the most prioritized area in most Chinese homes (Interview, Omstedt, 2005). The average IKEA customer in China is a bit younger that elsewhere - between 25-40 years old (ibid) - earns about RMB 3,300 per month (the national average is RMB 1,000 per month), and are better educated than a typical Chinese (Miller, 2004). The largest consumer group is a married couple with one child, alternatively a double income couple without a child. Adult children tend to live with their parents for many years before they move out and get their own home, sometimes not until they married themselves. According to Chinese tradition, when getting married, the wifes parents move in to live with the couple as well. This is changing gradually, but it is no unusual for families to live three generations under one roof child, parents and grandparents (Interview, Omstedt, 2005). The brand awareness of IKEA in Beijing and Shanghai is very high: 95%, Omstedt tells us. This is due to the fact that IKEA has been present in these cities for years now, and has put a lot of efforts into advertising and PR activities. But only 15% knows that its Swedish. Prior to the opening in Guangzhou, on the other hand, the awareness of IKEA was 30%, and thereof only 1% knew that KEA was from Sweden. Each city in China is very different from each other and therefore thorough marketing research is needed prior to each new store opening (ibid).

MARKETING STRATEGY
In spite of many culture specific differences, IKEA keeps true to its global strategy and to the IKEA concept on the Chinese market. Even though the Chinese customers resistance to the DYI principle of self-assembling, pick-up and delivery, and their difference in taste and way of life, IKEA has not given up any of the core concepts or changed the style of their products to accommodate local preferences. Only three articles have been added for the Chinese market: chopsticks, a wok, and a cleaver (Lewis, 2005). Some marketing

48

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

efforts are of course custom made for the Chinese market, though. Except for the global advertising campaigns and materials (produced in lmhult), local print advertising, brochures, commercials, and in-store-displays are made especially for the Chinese market. The IKEA catalogue for China is not custom made for that market only, but adapted in terms of language and copy. There is also the possibility for the China marketing office to switch out some of the pages within the catalogue, as well as the back and front cover, to be more suitable for their market (Interview, Omstedt, 2005). Through focus groups they have learned that the customers requests more Chinese models in the catalogue and advertising images. Therefore they try to implement that as much as possible. When it comes to the local advertising, brochures and the in-storematerial that is really carried out, otherwise IKEA looks very western. The IKEA brand name is always paired with its Chinese name, Yijia (approx. translation: suits the home), and all slogans are translated into Chinese characters, without English by-lines. The original Swedish product names are kept, which is something that helps the IKEA brand to communicate its country of origin. The layout of the stores, product presentations and room settings are adapted to reflect home Chinese homes look. For instance, a balcony department is added to the Chinese IKEA stores as well as smaller kitchens in the room settings (ibid).

Photos of in-store signs explaining why prices are low, why IKEA produce in bulk, why the furniture are flatpacked, why selfassembling, why they dont deliver for free, etc.

(Own photos, IKEA store Shanghai, 2005) In order to teach the Chinese consumers how to understand the IKEA concept, they display useful instructions, explanations and design ideas inside the stores. In addition, brochures, the catalog, and the Chinese web site (with different versions for each city) are of help to convey those messages. The IKEA print ad campaign Small changes, a refreshing new life was created by IKEAs advertising agency in China (Saatchi & Saatchi), showing on how its possible to change ones gradually. The CEO of the advertising agency Charles Sampsom explains: "Many Chinese consumers follow an 'all or nothing' approach to interior design. If they want to redesign their living room they will either completely redo everything or do nothing. IKEA wanted to convey that change can be easy, and that it is okay to make small changes, step-bystep. (Miller, 2005, pp. 38) 49

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

(Own photos, IKEA store Shanghai, 2005) Recently, IKEA has focused their advertising on women and the concept of storage and organizing. In print ads, outdoor billboards, on their web site and in brochures they show images of how an untidy home can become organized with the help of IKEA storage products and solutions. In a brochure communicating the same message, where the images plays with the traditional family roles, as it shows a man ironing while his wife sits back in a comfortable arm chair watching. Another spread illustrates how a dad plays princess with his daughter in her room. IKEA has engaged a China-based PR agency, Eastwei, to handle their public relations as well as store opening events and other happenings. Prior to the opening of the store in Guangzhou, Eastwei worked with educating the media about what IKEA is about. It started out in May with a general press conference informing about the upcoming opening of IKEA, Pr Uhlin tells us. Thereafter, a trip to lmhult and Stockholm in Sweden was arranged for the most influential magazines in Guangzhou, to teach the journalists about the unique IKEA concept and their corporate culture. They got to visit the headquarters of IKEA, the design team, IKEA stores, etc. This trip was followed up by workshops in Shanghai discussing Swedish design and Swedish culture. During these sessions the journalist were also educated in the concept of DYI and the idea of flat packs. They also got to actually assembling IKEA furniture themselves. Because of the low awareness rate of IKEA in Guangzhou, this media training was necessary in order to make the journalists evolved and interested in the opening of the IKEA store and help them really understand this new concept of retailing that they were supposed to report on (Interview, Uhlin, 2005). In order to stimulate the interest among Chinese for home decoration, IKEA has also been involved in creating a TV show (for Shanghai and Peking) about interior design. Eastwei produced this weekly TV reality program, where Chinese families got their homes re-decorated according to their needs and wishes, illustrated with before and after images. The program showed the viewers how to improve their homes in terms of functionality as well as looks. The show was aired during one year and was a great success for IKEA (Bjrkstn, 2005).

50

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

IN THE FUTURE
Some of the main tasks for IKEA from now on and forward are to keep on inspiring and educating the Chinese consumers in how to change and improve their homes in the Scandinavian way, according to the DYI and step-by-step concepts of IKEA. They also want to raise the awareness of the Swedish origin of the company. The Swedish food shop situated in the exit area of all the stores, are a great marketing tool for that purpose, Magnus Omstedt says. Keeping the prices low are also a major concern, especially in motivating the Chinese to buy their products instead of making copies of the furniture at their local carpenters. One thing is for certain - KEA will follow their vision in making the western dream affordable to as many Chinese people as possible.

5 ANALYSIS
5.1 GLOBAL BRANDING AND CULTURE
China and its specific culture have sometimes given western companies problems when trying to succeed on the Chinese market. When it comes to marketing efforts, the company should be careful before making decisions too fast. It is easy to get trapped in cultural differences where Chinese consumers react differently than what the company normally is used to. To solve this problem, global branding strategy theories can recommend an adaptation of a brands core values, in other words load it with different values, in order to coincide with the existing cultural values of the host culture. These thoughts are exemplified by the following quote: International brands succeed when consumers in each market believe they are being spoken to by somebody who understands them, somebody who knows their needs and who talks and feels just as they do (de Mooij, 1998, pp. 292) We believe that this is a simplification of reality and that there are other ways to go when trying to succeed in a global environment. Understanding the Chinese culture and its consumers is always crucial before making any decisions, but it does not have to be a winning concept to make great modifications in the marketing strategy and to change the core values of the brand - to adopt to the consumers. The company has to understand and maybe adapt to the new environment, but at the same time preserve the brands original values. With our two cases, IKEA and Absolut Vodka, we have tried to explain and evaluate what these brands have done to be successful in contemporary urban China, which have led us to focus on following questions:

51

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

How do IKEAs and Absolut Vodkas brand values interact with the Chinese culture, and also, which marketing tools are central for them to reach Chinese urban consumers?

5.1.1 THE SECOND LAYER OF BRANDING To find an answer to these questions we have used Lis model of culture and branding that treats the complexity of adapting a brand to a new culture. The second layer of this model talks about the brand name. The name itself can create misunderstandings when translated and therefore add new values to a brand. When it comes to Absolut Vodka, they have avoided translating the brand name. On the website, on print ads, in articles etc, you can find the name Absolut without any translation. Even the different flavors such as Absolut Citron or Absolut Vanilia get to keep their original names. This helps them to avoid misunderstandings in the translation and to preserve the values of Absolut. Also it sends out signals that it is an international brand, which is sometimes seen as a symbol of status in urban China today. The name Absolut is in itself more than a brand, it also has a meaning as a word, which is used in nearly all Absolut campaigns, for example: Absolut Spring, Absolut Supermodel and Absolut Creativity. If translated, the campaign stands a risk of being interpreted in the wrong way, leading to value change for the brand. If a campaign is very complicated, Absolut can use translation to clarify the message. In that case they put a Chinese translation underneath the original message. In general we can say that when it comes to the brand name, Absolut have avoided to adapt itself to the Chinese market.
IKEA actually translate their brand name to Yijia, which more or less means, suits the home (passar hemmet). Although translated, the original name is in focus and is always there together with the translated name. The products also have their original names like Klippan or Billy, but here they also complement the Swedish names with the Chinese translation. The original names help them to communicate the country of origin of the brand, which strengthens the brands original values. It is almost impossible not to add some type of interpretations or values into a translation, which could affect the IKEA brand. At the same time it is important to be able to reach the consumer, which can be difficult in China because of the lack of knowledge in English, but also due to problems in reading western letters. Also, we must add to the discussion that IKEA has a different vision and goal than that of Absolut. They want to create a better everyday life for the majority of the people, which forces them to be more clear in their communications, in order for the majority of Chinese to understand it. Absolut is more of a niche brand and can be a bit more selective. So in IKEAs case, they use translation in a higher degree, which is an adaptation to the Chinese culture and the needs of the consumers.

5.1.2 THE FIRST LAYER OF BRANDING The first layer of this model discusses the product itself and its attributes, design, etc. Absolut uses the bottle as a central icon to send out signals of design, art, creativity, etc., to load the Absolut brand with different values. The bottle is a very important ingredient in Absoluts brand values, and it is always there in some way in the campaigns. When

52

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

operating in the Chinese market, the bottle is always there too, but sometimes Absolut uses certain modifications to make campaigns coincide with the Chinese culture. During the New Years campaign in 2005, they used the bottle as they normally would have, but they added a sign onto the bottle. Over the name Absolut they put on a sticker with a Chinese sign representing two different meanings central for Chinese during New Years celebrations. The campaign was specifically developed for the Chinese market, which is an adaptation to the Chinese culture. It can be a risk to use Chinese values, in this manner, combined with the ones of the brand. We will come back to that discussion further on. Absolut is a brand of vodka that consumers normally use as an ingredient in different drinks. One of the purposes with the various flavors of Absolut is to be able to mix exciting new drinks and vary the consumption. The flavors also give Absolut a chance to motivate the consumers to be one of the flavors, depending on which of the flavors that suits your personality. This is a very individualistic approach that many Chinese might find attractive because it transmit a feeling of the West and somewhat goes against traditional Chinese values, such as for example collectivism. When operating on Western markets, Absolut can normally take for granted that consumers in general know how to make basic drinks, so that Absolut only have to contribute with new creative recipes for the consumer to try out. In China, the culture of making drinks is not that developed, especially not in the rural areas, which put Absolut in a new position. They have to adopt their marketing in some way to make the consumer understand how the product should be consumed. IKEAs product consists of both the products themselves that you can buy in the stores, but you can also see the IKEA store as a product. The fact that they have only added three articles in their assortment, chopsticks, a wok and a cleaver, is a signal that they do not make significant changes in terms of products. However, when it comes to the store itself, we found some modifications. The music was louder in the store, maybe not loud compared to many other stores in China, but compared to Sweden we could really notice a difference. Many Chinese think it is welcoming when there is loud music and lots of color in stores. Furthermore, the room settings in the store were somewhat different to what we are used to at home. An example of this is the added balcony-sections, where Chinese consumers could see solutions in how to take advantage of that space. In urban China, many people have balconies but they often use them as a storage space. IKEA noticed that, and adapted the room settings to include balcony sections. The consumer is provided with new ideas and ways of consumption, others than what they are used to. In this way IKEA get to educate the consumer in how to take advantage of the home in an effective way. IKEA is also about Scandinavian design, even if not all Chinese people are aware of that it is a Swedish brand. Chinese people are used to heavy, dark furniture, which is rather the opposite from what IKEA provides. Also, when Chinese people in general want to redesign their homes, they redo everything or nothing. Here are some typical cultural differences compared to many western countries. IKEA does not change their assortment to be more in line with what Chinese are used to, in terms of furniture and solutions.

53

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Instead they tell them how to consume the IKEA way, with designed, light furniture and with smart solutions. They also tries to communicate, through different campaigns, that it is possible to make interesting changes to a home by just adding a detail like one single piece of furniture. The concept if IKEA, including DIY and flat packaging, is something that IKEA preserves even on the Chinese market. This was especially a problem when IKEA first entered the Chinese market. Normally, Chinese people are used to getting everything done when buying a product, without having to think about neither home transportation nor assembling it themselves. IKEAs main argument for flat packaging and DIY is that they can provide customers with low prices. However, when IKEA first entered the Chinese market, they could not lower the prices enough to be seen as an affordable brand. The brand got a more exclusive image that was not in line with the global image of the brand, which damaged the brand values somewhat. Nowadays, prices have fallen and are more in line with the IKEA concept. Even if the prices have fallen, they still have some problems concerning for example DIY. To solve this problem, IKEA provides the consumer with clear and informative in-store signs that explains the concept, how to comfortable get the products home, and furthermore how to assemble them. Once more and more consumers learn how to accept and appreciate this concept, IKEA might be even more successful.

5.1.3 THIRD LAYER Both IKEA and Absolut do not only consist of their products, but also of values and associations connected to the brand. We have discussed this in different ways, but not completely. The third layer of the three-layer model discusses the values and the associations of brands and explains that when operating in another culture, it is important to think about values that are necessary to add to the brand. The company should also consider how these values could be added, and furthermore how the consumers think about these added values. In our case study we have found empirical results that contradicts this part of the three-layer model.
Absolut have through their design of the bottle, the campaigns, the different flavors, etc., communicated to the consumers that they are a creative, trendy, original and individualistic brand. They want the consumers to consume the brand together with those values, regardless of which market they operate in. As mentioned before, the Chinese culture has traditionally been connected with values like collectivism, family, face, etc, which could be said are values that stands relatively far away from the ones of Absolut. In this case, Absolut do not add values to the brand, but rather teach consumers how to consume Absoluts specific values. If we go back to the New Years campaign, Absolut did choose to include Chinese values and mix it with the ones of the brand. As mentioned before, those values are not always compatible. At this occasion, using typical Chinese values was a way for Absolut to reach new consumers, and show some interest in the local culture. It is a balance between including specific values of a culture, and at the same time preserving and

54

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

communicating the values of the brand. Absolut, in this case, were successful even though not everybody appreciated this campaign. If consumers consume the brand only due to its western values, it can communicate negative connotations when Chinese values are included. The campaign gave the Absolut brand a touch of Chinese values, but at the same time they want the consumer to consume Absolut the same way as they do on western markets. In IKEAs case, they also want their brand to be consumed in the same way as it is consumed in any other market. The IKEA brand is connected to different values such as design, quality and value for money. Their DIY concept is still there, even if some Chinese consumers dislike it, and the consumers have to learn and adapt to the concept. When buying from IKEA they start to change their ways of consuming and therefore also their behavior and values. The IKEA way of consuming, which is connected to a more western way of consumption, is transmitted to the Chinese consumers, who either accept it and adapt their consumption, or reject it. An example of how IKEA is transmitting values is through their catalogue. The IKEA catalogue for China is not custom made to fit China but is of course translated into Chinese. The marketing office in China has the possibility to change some of the information transmitted, but to a limited extent. For example, they produce brochures specifically for the Chinese market, which include more Chinese models than the western one does. Even though they are adapted to the Chinese market, they can still transmit western values. For example, a page in one of the brochures shows a man ironing while his wife sits back in a comfortable chair watching him. Another picture illustrates a dad, playing princess with his daughter in her room. This can be seen as playing with the traditional values and roles in a Chinese family. Thus, even if IKEA can make adaptations for the Chinese market they still consist of western values that get transmitted to the Chinese consumers. IKEA and Absolut Vodka are not making any changes to their core brand values to fit Chinese culture. They stay true to their global branding strategy, but make slight modifications to their local communication and marketing efforts in order reach the consumers and to make them interested. We see upon such efforts as door-openers ways of making contact with the consumers - that in the extension enables them to teach the Chinese how to embrace the brand concept and the lifestyle that it communicates.

5.1.4 CREATING MAXIMUM MARKET POTENTIAL With the aid of the model for Maximum market potential and current demand (Best, 2005) presented in the theory chapter, we will investigate the factors enabling IKEA and Absolut Vodka to reach the maximum numbers of Chinese consumers within their desired target group. The five identified forces to limit market demand (Not Aware, Not available. Unable to Use, Lacks benefits, and Not Affordable) can sometimes be interrelated and therefore overlap each other.

55

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Both IKEA and Absolut Vodka are conducting marketing research to gain a better understanding of the Chinese consumer and to discover untapped potential on their markets. In other words, to find out reasons for why some customers within their target group arent buying their products, and how they can take actions to change that. In China, IKEA and Absolut Vodka are only present in the major big cities. Therefore, the availability of the brands is not complete throughout China, far from it. China, being such a new and divers market, with great differences in income and lifestyles within the country, cannot really be treated as ONE from a marketing perspective. Therefore, IKEA and Absolute will enter other regions of China gradually, as they mature. There are great future market opportunities in these other Chinese markets, waiting to be explored. [W]e are expanding now. We will have 10 stores within 10 years, Magnus Omstedt (2005) at IKEA predicts. Both IKEA and Absolut are excluding many Chinese because of being to expensive, considering that the average income in China is RMB 1,000. As mentioned earlier, IKEA had the problem of entering the Chinese market with way to high prices, excluding even more potential customers than necessary. The too high prices damaged IKEAs image considerably, given that affordability is communicated as one of IKEAs core values. Being able to lower the prices during the past years has increased the purchasing power of the IKEA customers considerable. Lowering the prices even more would create a larger market potential. The development and expansion of the Chinese economy and raised income levels of the Chinese people will automatically increase especially IKEAs, but also Absolut Vodkas market potential. Absolut Vodkas target group and price strategy is much different from IKEAs, though. They use a higher price to communicate status and quality (compared to value-for-money) and therefore exclude consumers purposely. Brand awareness is one parameter that IKEA measures regularly and takes into account when designing marketing activities. For instance, prior to opening a new store in China, if the awareness of IKEA is very low, they use PR and advertising to communicate the brand concept and product range. People need to first understand the brand in order to be interested in visiting the store. If, on the other hand, the knowledge of the brand is already high, the most important thing to give information on is where the store is located, opening hour, etc. When entering a new market, creating awareness is crucial for a brands survival. We find this especially true on the Chinese urban market of today, as the competition over the consumers attention is fierce. In Shanghai there are advertising messages wherever you look. Its not easy to stand out in the crowd. Thats the biggest problem. To reach out with your message and get people to embrace it and come to the store (Interview, Omstedt, 2005) When Eastwei invited journalist to media training, teaching them about IKEA and bringing them to Sweden to show them the soul of IKEA, they promoted raising the general awareness of IKEA. If a journalist has gained a true understanding of the brand,

56

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

the philosophy of it, and its products, theres a greater chance that the potential customers also will understand that when reading his/her article. Any kind of exposure is helpful in making people aware of a brand. Absolut Vodka directs the exposure of the brand toward its target communication group, when taking part in events and parties for specially invited guests (from the fashion, advertising, art and music industries). Also, being sold at IKEA helps Absolut to reach new consumers that already have an appreciation for Swedish style, as well as to raise the awareness of its Swedish origin. Not being aware is not only about unawareness of the brand itself, but also includes not fully comprehending the product benefits. Informing the consumers on the good quality, design and environmental friendliness of the IKEA products are benefits that can increase the awareness and market demand. Information and exposure are the key factors in raising any kind of awareness for IKEA and Absolut Vodka. The inability to use the products in combination with benefit deficiency have we identified as the most crucial limited forces that IKEA and Absolut Vodka considers in their marketing strategies, in order to increase the consumption and market demand of their products. In many other markets of the world, IKEAs DYI concept (letting the consumer be part of the production), leading to low prices, are considered a benefit (even though not everyone enjoys the self-assembling part, but they know its a condition for the low price, and it is therefore worth while). This has not been received beneficial in China at all, rather a benefit deficiency, since the prices havent been low enough to motivate the consumer to do some of the work him-/herself. IKEA is very concerned with explaining the reason for the DYI concept for its consumers, in order to change the consumers negative view of it. Also, since Chinese people arent used to home interior and doing improvements themselves (without hiring someone), they dont have the know-how (the ability) of assembling furniture, to put up shelves on walls, or use a nail and hammer. This is something that IKEA educate their consumer in doing through brochures, customerservice and in-store displays. Importantly, the Chinese IKEA consumer is also taught to live with the IKEA concept of changing things in their homes step-by-step. Home decoration presented a bit like fashion you can always need something new to spice up the old wardrobe. To reverse this inability to use to an ability to use, IKEA strives to inspire and educate the Chinese in understanding the IKEA concept. For example through the participation in a TV show on home decoration, step-by-step advertising campaigns, in-store signs, brochures and room-settings, etc. The workshops and media training arranged for journalist is another excellent example on how IKEA overbridged a lack of knowledge, in (through PR) educating the Chinese in how to consume IKEA the IKEA-way. Absolut Vodka has also meet forces of inability to use their product, in their interaction with potential Chinese consumers. As mentioned, this is because of the newness of the drink and cocktail culture in China. The Absolute Academy is one example of their

57

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

efforts in educating the Chinese in drinking Vodka. Maggie Shen (2005) tells us that they are doing [a] lot of educating. We actually started with educating in China and we are continuing doing that. She also believes that Absolut has a great potential of recruiting more consumers to the brand, making more information and education needed in order to succeed with. () China is such a huge market. Actually China is the biggest beer market in the world. It is the biggest! So actually if you are talking about who will be the next consumersbeer drinkers! You upgrade them to spirit drinkers. So it is huge potential. (Maggie Shen, Maxxium, 2005)

5.2 EDUCATING THE CONSUMER


As discussed above, to be a brand incorporates supplying additional value to the functional benefits of a product or service in all facets of the brand activities. IKEA and Absolut Vodka are both very image-driven brands. They are successful on the Chinese market because of their strong inherent brand values and their effectiveness in communicating those values. But brands are relatively new to the Chinese. The phenomenon has only been present on the Chinese market for the past 20 years. Before, all commodities were generic and state-produced. Individuality was not expressed through consumption. That has all changed now. Postmodern consumption has made its way into China. Indigenous mass media, too, often purvey images which implicitly promote the lifestyles of wealthy Westerners and overseas Chinese and the consumerism associated with them. In these programs the furniture, house decoration, cars, clothing, eating and drinking habits, the look of the characterscreates images of life-styles which are perceived as being desirable in the eyes of the viewers [Barock, 1993: 93]. In a complex interplay media images stimulate, form, and articulate consumer desires. At the same time they create, fuel, and define standards of success and provide patterns of ways of life [ways of consuming] that many Shanghainese aspire to and seek to emulate (Gamble, 2001, pp. 97-98) According to Bourdieu (1979), consumers create their tastes in interaction with others and in relation to the social context they live in. Being exposed to media, music, fashion, brands and advertising images conveying western culture and way of life, has created a desire to look western and consume western brands, especially among the young urban Chinese (the Young Achievers). Leading a western lifestyle accumulates cultural capital within that social group. The fact that the brands of IKEA and Absolut Vodka are western definitely comes into play in attracting the Chinese urban consumers. Everything from the west is cool, Omsted (2005) says when we discuss the Chinese preference for and

58

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

obsession with western brands. The presence of all other western influences (brands, magazines, films, fashion, etc.) has made that condition possible. In that sense, western brands are not only competing, but are at some level also helping each other in creating this buzz around everything western. The existence of other foreign brands on the Chinese market can therefore be considered as a condition for IKEAs and Absolut Vodkas initial market potential and even for being able to establish themselves on the market. In analyzing the empirical findings on IKEAs and Absolut Vodkas marketing strategies in urban China, we have arrived at the below model. It describes the processes of their common and most central marketing tool used on the Chinese market: Education. The model also considers the interactive relationships between the Chinese culture, the Chinese urban consumer, and the Western brand. We will continue by describing the model and its functions in detail.

Figure 8. The process of Educational Marketing toward the Chinese Urban Consumer (In the context of Chinese Culture)

To clarify the model, we will explain it in terms of imagining the following scenario: A Western Brand (IKEA or Absolut Vodka) enters the Chinese market (inbound arrow) due to expected market potential on this new market. In order to understand their target consumers and learn about their culture, they carry out marketing research. This process

59

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

is symbolized by the LEARNING arrow leading from the Chinese Urban Consumer to the Western Brand. The marketer at the brand learns about the consumer, that on his/her end is influenced by the Chinese Culture (inbound arrows). The information gained is used to evaluate what the consumer lacks knowledge about, in terms of brand awareness, the product benefits or the brand concept (inability to use, benefit deficiency, etc.). If there is a gap, the western company needs to educate the consumer, in order to increase their market potential, and able them to use or understand the products or the brand values. The information collected is also used to identify minor local adaptations needed to their marketing (in language, communication tools, etc), but without changing any of the brand core values or altering the global branding strategy. Notice that there are no inbound arrows from the Chinese Culture to the Western Brand. The absence of such arrows represents the brands refusal to adapt its core brand values to the local culture and risking losing its brand personality. The Western Brand communicates the information needed to increase the Chinese Urban Consumers knowledge (identified through the marketing research), illustrated by the EDUCATION arrow. The education element can be communicated through any channel (print advertising, PR, in-store material, the internet, work-shops, TV-shows, commercials, etc.). When the Chinese Urban Consumer gets educated, his/her behavior, taste and/or lifestyle are altered, which in the extension lead to cultural value change. The consumer constitutes an integral part of its cultural context and will therefore influence it with its new consumer behavior and change of values - see outbound arrows. The Western Brand is also integrated in the Chinese Culture and will be part of affecting the future values of that culture, both in terms of changing the values of its customers, but also in terms of employing local people, being part of the capitalist system and the development of the country in a time of massive expansion. The outbound arrows leading from the brand to the culture illustrate this process. As the consumer gets educated on how to use the brand, the grey field (representing consumption) connecting the The Chinese Consumer and The Western Brand will grow, and the EDUCATION and LEARNING arrows will shorten. The education efforts are in other words stimulating the consumption and eventually (as the consumers learn and the market evolve) making the need for educational marketing decreased. To further illustrate the inherent processes of the model of Educational Marketing we would like to once more go back to the case studies of IKEA and Abolut Vodka, and how it applies to their marketing strategies on the Chinese market. IKEA did for instance, through marketing research, tap the Chinese consumers inability to use their products in accordance to the IKEA concept, due to cultural differences. One reason for this is for instance because of their habits of not adding peaces of furniture to

60

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

their homes step-by-step. To change this attitude to interior design among the Chinese, IKEA carried out print campaigns, commercials and a TV-show communicating this central idea of IKEAs. In inspiring and showing the consumers how to grasp the IKEA concept and use the products as intended by the company, IKEA is educating the consumers in terms of behavior. The IKEA consumers change of behavior, of for example redecorating their homes more frequently in accordance to western culture, will also in the long run promote a change of Chinese lifestyles and cultural values. The same scenario is true in regards to Absolut Vodkas efforts to teach the Chinese how to mix drinks and embrace the western cocktail culture, in order to enable them to consume Absolut Vodka. When implementing educational marketing efforts on the Chinese market, as IKEA and Absolut Vodka has done, all processes described in the model are at play.

5.1.1 INFLUENCING CHINESE TASTE AND CULTURE Cross-cultural marketing theories stress the importance of adapting a brands values to match the cultural values of the new consumers. According to our findings that is not a necessity. As the case studies of IKEA and Absolut Vodka show, the marketing tool of Education enables a company to, instead of carrying out that change of brand values, influence a change of the consumers tastes and cultural values. In doing that, the brand values and the consumer values will eventually coincide, but through a reversed procedure, if you will. The Chinese consumers are through acculturation - a by the individual chosen process of learning from a foreign cultures value system adapting themselves to the brand and western ideas. This is an example of the movement of culture across the world, defined by the concept of metaculture. Cultural expressions are through IKEA and Absolut Vodka, spread from the west to the east. It is important to emphasize that this doesnt mean that the Chinese culture will transform into a replica of western culture, but evolve into a new unique Chinese culture influenced by some western elements.
In this discussion we would like to refer to Fangs model describing the dynamics of Chinese culture (What is Chinese Culture (CC) today?), which shows on the interrelated interplay between different cultural groupings that make up the Chinese Culture and its values. Foreign and domestic corporate cultures are represented as one of those groups influencing the national culture of China. The model of Educational Marketing is in a micro perspective explaining that one force contributing to the dynamics of Chinese culture, describing the processes within that specific group and their interaction with the Chinese consumers and their culture.

61

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

6 CONCLUSION
1. Which marketing tools are central for IKEA and Absolut Vodka in their marketing strategies towards Chinese urban consumers? Absolut Vodka and IKEA conduct market research in order to gain knowledge about the Chinese culture and the consumers on the urban consumer market. They custom make some of their marketing activities especially for the local market, (in terms of translations, room-settings in store, PR-events, localized campaigns with educational messages, etc.) to better reach the consumers. These modifications serves as door-openers, which enables them to better communicate their brand identity to the Chinese urban consumer. Both companies use Education as a central marketing tool on the Chinese market. They use this tool when they have detected a lack in the consumers knowledge about crucial understanding of the consumption of the products and brand concepts. Instead of modifying the product or brand functions according to the Chinese consumers culture, values and tastes, they teach them how to consume the brand in its western manner.

2. How do IKEAs and Absolut Vodkas brand values interact with the Chinese culture? Absolut Vodka and IKEA do not change their brands core values when they operate on the Chinese urban market. They communicate how to use their products and brands, and at the same time transmit values that is connected to usage and the brand itself. When the Chinese urban consumers use these products and brands they also consume the western companies values. These values change their consumption habits and furthermore the consumers tastes and values. The Chinese culture is in turn affected by this value change of the consumers, due to the interaction between the western brand, the new educated Chinese urban consumer and the Chinese society in which they co-exist. Educated consumers lead to a total increase of the consumption of the brand, and decrease the need for educational marketing activities accordingly.

The empirical findings have resulted in a model that describes this process of education in marketing. The model describes western companies, which as a generalization can be criticized. We have only based our results on two Swedish companies, which can be considered as not being enough of an empirical base to able a generalization as such. In our belief, the applicability of this model and tool of marketing for the urban Chinese market is more dependent on the type of brand and the degree of initial knowledge of the consumers, than the country of origin of the brand. The success of educational marketing 62

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

requires a solid brand with strong brand values, established on a new market such as the Chinese, where the product category or the way of consuming it is new to the consumers.

7 FURTHER RESEARCH
Our results are restricted to urban Chinese consumers, and especially Shanghainese. We performed the interviews in Shanghai and also collected most of our other empirical information based on that market, which is why the focus lies there. The interviewees also mentioned other urban parts of China than Shanghai (as Beijing and Guangzhou) in describing their marketing activities, but the focal point of this study was Shanghai. Therefore it would be interesting to further investigate the applicability of educational marketing on other urban areas in China, as well as on more rural parts. It would also be of relevance to find out if our model is only limited to the special condition of the Chinese market or if it is applicable on other developing markets (going through similar process of newness to brands from foreign cultures). The subject of culture change, which we have discussed in this study, is also a topic that can be studied more in-depth. Firstly, it can be of interest to conduct further research on the effects of foreign corporate culture on national culture. Secondly, an investigation of the specific cultural value change taking place in China today would be of great interest. Which traditional cultural values are changing, and which new ones are arriving?

63

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

REFERENCES
LITERATURE & ARTICLES Aaker, D. (1996) Building Strong Brands, New York: New York Free Press corp. Agri-Food. (2004) China Consumer Profile Agriculture and Agri-food Canada August Alvesson, Mats. (1994) Tolkning och reflektion: vetenskapsfilosofi och kvalitativ metod. Lund: Studentlitteratur Bradley, Frank. (1999) International Marketing Strategy. Hertfordshire: Prentice Hall Europe. Best, Roger. J. (2005) Market-Based Management: Strategies for Growing Customer Value and Profitability. New Jersey: Pearson Education, Inc. Bourdieu, Pierre. (1979) Distinction: A Social Critique of the Judgement of Taste. London: Routledge & Kegan Paul plc. Bryman, Alan. (1997) Kvantitet och kvalitet I samhllsvetenskaplig forskning, Lund: Alan Bryman och Studentlitteratur. Capell, K. Sains, A. Lindblad, C. Palmer, A. T. Bush, J. Roberts, D. Hall, K. (2005) IKEA, Business Week 11/14, #3959: cover story. Chan, T.S. (1999) Consumer Behavior in Asia Issues and Marketing Practices. New York : International Business Press, cop Chen, Min, Common Culture, Different Styles, The China Business Review, September-October 2004. De Mooij, Marieke. (2004) Consumer Behavior and culture Consequences for Global Marketing and Advertising. Thousand Oaks: Sage Publications, Inc. De Mooij, Marieke. (1998) Global Marketing and Advertising: Understanding Cultural Paradoxes. London: SAGE Publications, Inc. Deloitte. (2005) Chinas Consumer Market: Opportunities and Risks, Deloitte Research. Engstm, Ulrika. (2005) Guldgrvare i st, Elle (Swedish edition) Oktober: 130-135. Fang, Tony. (2003) A Critique of Hofstedes Fifth National Culture Dimension, International Journal of Cross Cultural Management, Volume 3: 347-368 64

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Fang, Tony. (Red.) (2005) Att gra affrer i dagens Kina. Stockholm: SNS Frlag. Fang, Tony. (2006) From Onion to Ocean: Paradox and Change in National Cultures, International Studies of Management and Organization, to be published: 1-15. Firat, A. Faut. Venkatesh, Alladi. (1995) Liberatory Postmodernism and the Reenchantment of Consumption, Journal of Consumer Research. Dec, Volume 22. Gamble, Jos. (2001) Shanghainese Consumerism, Asia Pacific Business Review, Spring, Vol. 7, Issue 3: 90-112 Gannon, Martin J. and associates. (1994) Understanding Global Cultures Metaphorical Journeys Through 17 Countries. Thousand Oaks: Sage Publications, Inc. Gottdiener, M. (1995) Postmodern semiotics Material Culture and the Forms of Postmodern Life. Cambridge: Blackwell Publishers Gustavsson (Red.), Bengt. (2003, 2004) Kunskapande metoder inom samhllsvetenskapen. Lund: Frfattarna och Studentlitteratur. Hooper, Beverly. (2000) Globalisation and Resistance in Post-Mao China: The case of foreign consumer products, Asian Studies Review, Volume 24, #4, December: 439-470 Hui, Wang. (2003) Chinas New Order. Cambridge: Harvard University Press Keller, Kevin. Lane (1998) Strategic Brand Management. New Jersey: Prentice-Hall, Inc. Leman, Edward, Can Shanghai Compete as a Global City?, The China Business Review, September-October 2002. Lewis, Elen (2005) Great IKEA! A brand for all the people. London: Cyan Communications Limited. Li, Conghua (1998) China: The Consumer Revolution. New York: John Whiley / Sons, Inc. Li, Zhenyi (2001) Cultural impact on International Branding A case of Marketing Finnish Mobile Phones in China. Jyvskyl: Jyvskyl Univerity Printing House and ER-Paino, Lievestoure. McSweeney, Brendan. Hofstedes model of national cultural differences and their consequences: A triumph of faith a failure of analysis, Human Relations, Volume 55(1): 89-118

65

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Miller, Paula M. (2004) IKEA with Chinese Characteristics, The China Business Review July-Ausgust: 36-38 Scmitt, Bernd; Simonson, Alex. (1997) Marketing Aesthetics The Strategic Management of Brands, Identity and Image, New York: The Free Press. Skarin, Ulf. (2005) Svenskfeber i vilda stern, Veckans Affrer Sept. 13, #38: 68-70. Uggla, Henrik. (2001) Organisation av varumrken, Henrik Uggla och Liber AB. Urban, Greg. (2001) Metaculture How Culture Moves through the World. Minneapolis: University of Minnesota Press Wedin, Lage; Sandell, Rolf (1995) Psykologiska underskningsmetoder, Lund: Frfattarna och Studentlitteratur. Wong, Ola. (2004) No, Im from Bors. Stockholm: Ordfront Yau, Oliver. H. M. Chinese Cultural Values: Their Dimensions and Marketing Implications, European Journal of Marketing, 22,5: 44-57 Yin, Robert. K. (1994) Case study research design and methods. Thousand Oaks: Sage Publications, Inc.

ELECTRONIC SOURCES Absolutad (2006), Absolut Gallery Singles, Hmtade den 2006-01-10 frn http://absolutad.com/absolut_gallery/singles/. Affrsvrlden (2005), Rekordr fr Absolut Vodka. Hmtad den 2005-12-11 frn http://www.affarsvarlden.se/art/123501. BBC News (2005), Inside Chinas ruling party. Iron rice bowl. Hmtad den 2005-12-04 frn http://news.bbc.co.uk/1/shared/spl/hi/asia_pac/02/china_party_congress/china_ruling_par ty/key_people_events/html/iron_rice_bowl.stm Hofstede (2003), Geert Hofstede Cultural Dimentions. Hmtad den 2005-11-17 frn www.geert-hofstede.com/hofstede_china.shtml IKEA (2005a), Facts. Hmtad den 2005-12-04 frn www.ikea.cn IKEA (2005b), IKEA Press Relese - IKEA sales and stores on the rise. Hmtad den 200512-04 frn http://www.ikea-group.ikea.com/press/press_releases.html 66

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

IKEA (2005c), Our Vision Our everyday life. Hmtad den 2005-12-04 frn http://www.ikea.com/ms/en_CN/about_ikea/our_vision/better_life.html Maxxium (2005), Facts. Hmtad den 2005-12-11 frn www.maxxium.com. Miller, Matthew (2004), Absolut Chaos. Forbes, Vol. 174, Issue 12. Hmtad den 200512-11 frn http://www.forbes.com/forbes/2004/1213/084_print.html PR Newswire (2005), Absolut Unveils Major Expansion Campaign Throughout Mainland China. Hmtad den 2006-01-12 frn http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-142005/0003019486&EDATE= Shanghai Daily (2004), Shanghai Facts. Hmtad den 2006-01-12 frn http://www.shanghaidaily.com/bf_all.php Shanghai Star (2005), Absolutely luscious. Hmtad den 2006-01-10 frn http://app1.chinadaily.com.cn/star/2005/0526/di25-2.html V&S (2005), Facts. Hmtad den 2005-12-11 frn www.vsgroup.com Wall Street Journal (2005), Absolut Seeks Fortune in China. Hmtad den 2006-01-10 frn http://www.brandnoise.typepad.com/brand_noise/2005/02/absolut_seeks_f.html

INTERVIEWS Omstedt, Magnus, IKEA, 04/11/2005, Shanghai, China. Shen, Maggie, MAXXIUM, 28/11/2005, Shanghai, China. Uhlin, Pr, EASTWEI, 11/11/2005, Shanghai, China.

67

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

APPENDIX 1.
Transcript Absolut Vodka/Maxxium Maggie Shen Maxxium Shanghai Interview, 2005-10-28

So this is an interview with Maggie Shen at Maxxium, Shanghai. What is your formal title? I am the marketing manager in the company and in charge of some brand development including Absolut Vodka, Level and some liquor brands. And also I am in charge of like XXX, like a coordinator for some like team projects, the portfolio ones and give some consultant advice for the XXX direction development for the whole company. How long has Absolut been on the Chinese market? I think it has been in China for more than ten years but at the initial stage it is very like, it is not officially handled by like a big company, but it is more like some smaller distributor and the Maxxium started to launch Absolut in 2001. Officially four years right now. What is the market share within the vodka market in China? At this moment, I think we are above 50%. We are definitely the leader in the vodka category. Which are the competitors, the main competitors? Smirnoff, Stolichnaya and also some small brands like Aristof, Wibroa, Bervidia, Grey Goose but they are not that big. So, Smirnoff is the main competitor? Yes, the number one but we are actually doing much better than them. Have you been doing better than them during a long period of time? At the beginning I would say that Smirnoff is the leader, but we are very focusing on brand building in the past few years, and now we are much better than them. I think we have been better than them for the past two or three years. And, where, how is, your sails distributed? Is it mostly towards restaurants and bars or retail? In China we have like, we are mostly from the bars and some like five stars hotels. And we have a very small business in like the hypermarkets because of Absolut, Vodka category is quite new to the consumers. And mixed drinks, cocktails is also at the very early stage. It is not a habit, or a previous habit for the Chinese? No, it is not a habit. But has it developed the last one, two, three years or? Yes. I think the bar culture is growing rapidly in China. In the past it is more like brand spirits market, at this moment it is still a brand spirits market in China. It is more male, business entertainment. Whiskey, Cognac and all these brands. But when the younger generations, they are more socializing and relaxing, release the pressure, it is more friends gathering. So they are not looking for something like is very elite like exclusive, they want something more casual, more fun and vodka is becoming more and more popular. What is the biggest region that you sell, is it Shanghai, Beijing or are you present in..? It becomes china entries XXX is quite big if you are talking about the region we normally are, you can classify by province, by city. I would say that if you are talking about city Shanghai definitely is the biggest. But in terms of like the region I would say that Absolut sell quite well in all the like, we call, big cities like Shanghai, Beijing, Guangzhou, Tejnden etc all these big cities. And who is your main target, customer? 25 to 35, male and female. Both! And when are you allowed to start drinking in China? 18! And, according to you, what is the essence of Absolut Vodka, like the core values?

68

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

First, the Absolut is about, we call it simplicity, clarity, perfection from the marketing people perspective. But from the consumer Absolut is a creative brand. It is original, it is creative and it is trendsetting. I this is the most unique point of Absolut Vodka. Although in demographic you can see 25 to 35 but if you see deeper these people have like advertising background, art and fashion background or have this sense of being creative, passionate to life, try something new, is like this group is fashion conscience, this group of people. I was thinking, do you think the consumers perceive Absolute as more elite or casual? Or, you said they were trendsetting..? It is more fashionable. It is not about permanence, it is more about attitude. It is very interesting in China we drink by bottle; if you go to Stockholm it is all by glass. You never see people hold a bottle there. But in China is bottle. So you put the bottle on the table, the bottle with the logo, everything stands for your taste. So if you compare the bottle on your table, Absolute Vodka verses the scotch, different type of people. But that must be a good thing for you, the bottle is more exposed much more than, I mean if someone has a drink in their hand you dont know what it is really. So, what is your current marketing strategy in China? How do you, what media do you use, and do you use an advertising agency in China or a foreign one? Basically we are very in line with the global strategy. Because people treat Absolut as an international brand so we almost use the same communication strategy from the global guidelines. For example, Absolut is very strong at print advertising so we have some, we advertise in some fashion, lifestyle and some trade magazines like photo, like film or this type of creativeinterior design, quite niche but also we have Vogue, Elle Deco or this quite like lifestyle fashion magazines. A part from that we also have, we introduce the global campaign the same time as we did in New York, Stockholm, London like the (New Years launch?), like the Absolute fashion campaign, Absolut Music campaign. We make China the same time part of the global introduction. A part from that we try to make the message more relevant to the local market so we work together with the local agency to adapt it in a local way. For example when we introduce fashion, we worked together with local fashion designers to recreate based on the global campaign. Do you do China specific print ads? Yes, it is like the Chinese New Year, it is the most important festival for every people. And this Chinese New Year we introduced Absolute Chinese New Year. It is an integrate campaign. We have print, we have one-line, we have exclusive gift pack and we have PR events and also we have like a XXX light-box, we call it full arrival, full is the Chinese character, which means fortune. And normally we place the 4 upside down, which means full arrival. We place the full character on the Absolute bottle.. Is that what we saw in the lobby, you have that on the Absolut Pepper? Yes. And when you pour the 4 upside down, it means the full arrival. So this is the main concept and it goes to like the print, so we place the print upside down so when people see, people want to oh, why the bottle is upside down, so I take it like another way. And then you see the full upside down, and if you are Chinese you suddenly get the meaning of that. So it is very interactive and also the lightning box is also, we had the infrared light, so if you put your hand into the Absolute bottle hole all the lightning box turn upside down. Where do you put the boxes? It is a lightening box and a holder. It is outdoor. I have a clip, and in the end we can have a look, then you will know what I am saying. This is launched in January? Yes, the New Year in January this year. Yes, this is the first like a local greater China campaign. It would be very interesting to see! But when you did, this is a full campaign, but you did like print ads, like the fashion, Absolut fashion ads with Chinese designers? It more like pure events, it is not print. So this is the first print and outdoor campaign? Yes. Do you do any TV-commercials in China? No, but next year we are going to develop more one-line campaign. We believe like Internet is a very good media for you to target mass but still remain the brand cutting edge. TV is a little bit mass but it is not good for Absolut. But Internet is like young people, interactive like new technology, new media. Maybe some creative ideas.

69

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

What kind of, to reach your target, what kind of events have you been participating in? We have, normally we have the PR events in Shanghai and Beijing targeting the core consumers like the art designers, like party animals in the city, and also we have some consumer events in the rest of the countries. And, sponsorships do you..? Very few. It is part of like the brand guideline. We believe only Absolut can do it, and we want Absolut to always be the focus. So we try to avoid sponsorships. But we did do some brand co-operations like with some media, and some, we participated some like Swedish brand gathering. I just interviewed this morning. Next months, in Shanghai we will have Love in Sweden- campaign organized by the Shanghai radio. A lot of Swedish brands will be there so we have to be there. It is not like sponsorship it is more partnership or something. Do you think that the Chinese consumer know it is Swedish, like the brand being Swedish, is that of great focus or does it help the brand? Or is it a perception of a western brand (or a Swedish brand)? I think most of the people treat Absolut as an international brand. But again it is from Sweden. And also Scandinavia style is very trendy in China right now like if you go to the IKEA shop it is amazing. We sell Absolut in IKEA shop. Yes we do. We sell tremendously well! All the graduate students they buy Absolut there. It is amazing, we can sell like 30 bottles per day in such small, small stores, you have to check. In is unbelievable. We did some cooperation with IKEA. We are going to kick of a Christmas campaign very soon. Is that also going to be in the store only or is it like a? It is part of the Absolut Christmas campaign, so in IKEA we are going to sell the promotion pack, the Absolut se.(?). Oh, that is so cute. Nice! But is this specific for China or is it like worldwide? It is word wide. It is very nice, I want to buy one of those.. So we are going to sell this one and also in the IKEA restaurant we are going to do some special tasting. Absolut shots together with hearing. And a skl.. and a song.. That will be interesting! What about PR, publicity, do you, how do you work with that. Do you have an agency? Yes we have a retaining agency, Eastwai. Oh, Eastwai! We will do an interview with them as well. Because they been working on, they do the publicity and they also help you with events? Yes. They are more focusing on media maintenance and regarding the events they are more like coordinator. Yes, and we work together with some local agency. They are very strong at like networking and also creative ideas. Eastwei is more like coordinator for like several parties. It would be nice to see if you have some like press-book later or, what kind of Maybe you can check everything at Eastwei, they have the clipping, all the Absolut things in their office. That is great! So, how is your pricing strategy in China is it different from, I mean, compared to the competitors and compared internationally? In world wide, we call Absolute like the premium vodka, so normally we are 10% higher than the Smirnoff and something But in China Absolut is more like targeted, it is not like, in China the category is not that, the perception of the category is not that clear. So people drink, no matter if it is Absolut, Shivas or Johnny Walker they treat it as brands rather than a category. So in reality we are more competing with the brand spirits so the challenging of the Absolut pricing in China is high. It is very easy you are premium than like the rest of the vodka but if you are to be similar to the brand spirits, because the cost of these two products are totally different. So we are working to try to reduce the gap between the Absolut versus Shivas. But at on-trade we are very close to them but in off-trade there are still things to do. And also in regard to the product line or the different flavors. What works best here? We introduced the Vanilia and the Mandarin this year. We plan to introduce Apeach and Raspberry next year. And the flavors is doing quite well I would say, around like 20% of the total business. Citron is the biggest flavor right now and Vanilla is catching up. Did you have Peppar as well? We have Peppar! It is very niche but it is growing at a small base. I would say that, because different flavors are targeting to different people and this is the beauty of the Absolut. We introduced find your flavor, the flavor campaign

70

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

this summer. It is more about different personality, different locations different mood, you drink different flavor of Absolut. My favorite is Peppar. You said earlier that that the Chinese consumer is not really used to drink or mixing drinks, so do you work with sort of educating the consumer? A lot of educating. We actually started with educating in China and we are continuing doing that. We have Absolut Academy, it is more like a educating training course. We have normally two parts, one is the brand part. It is more about product attributes and also some like marketing concepts of Absolut. And the second part we call, it is like a creative mix drink, so normally we invite bartenders to come and to tell them like some like fun recipes. And also when we introduce some new flavor we focus on one or two recipes. Dont complicate anything! I was thinking about the flavors, you said that it is different personalities if you drink Citron or if you drink Peppar. Is it from if you market it in Sweden or in China, like the personalities? It is the same if you talk about the personalities of different flavors, it is more global. But I will say that in China in reality, flavor can work well in different regions. For example Peppar worked well in Fodjin. And Citron is more everywhere and Vanilia is very good for female, I like there saying, do you like Hgendaas? The goes always, I like Hagendaas, then you have to drink Vanilia it is like a very creamy, black chocolate flavor of Vanilia. It is very nice. It is very smooth. We call it a robust vanilia and it goes very well with Coke. It is a very nice product. How do you think the, since Absolut and all the flavors, it is all in Swedish and it is not, do you use Chinese signs to explain the flavors or? Yes, they have Chinese back label. Everything like when we communicate we have like, Absolute is always there but we have the Chinese name like in terms of the recipes we definitely have the Chinese recipes and of course some advertising like as for example Magic, this is the same word, then we do not do the sub-line, sub headline. But if it is very complicated we probably will have like a small sentence of the sub-line to XXX about the ad. We were talking about this on our way here, if you can translate it into Chinese. Do you use signs that symbolize other meanings. How do you translate it? It is not literary translation. It is more like, you have to recreate, but the meaning is very close to the original copy. It is never you can literary translate everything. If you, we give you a Chinese like a saying, if you translate. Definitely you have to loose something. A good translator is never literary translating everything. You will put in some of your understanding of that. There is trend now, or trend, but more and more people are learning English in China. Do you think like eventually you can stop doing, or do you have sort of a, do you think it is going to take long..? I think, more people are learning English, but still in a very small base. If you are talking about the print, it is still like mass. So also, we have the Chinese website. We have the like official brand website in Chinese version. So we believe in China when we are talking about the whole country. We still need to do something like that. On the website, that is a specific website for China, is it different images, different messages? It is different messages, it is completely new website. What are the main differences? Versus the global one? Yes! I think that in the Chinese we have more about the drink, like recipes and also there are some like step-by-step, some illustrations. Like first you pour. We need it! Like education. And also we add in like pressroom so the journalist can download some like press-release, like pictures from the site. An also we update the activities in China and also plus like the global one we have the newsletter for the database, for the register. Is not that completely different but I will say it is a little bit different. What would you say is the focus on the global website? The global is more campaign I would say. It is the latest like fashion XXX things. And the local is more focusing on the basic one. Would you say that the target customers or the target consumers are different in China than worldwide? I would say that the sophisticated level is different. The target group are probably the same. But in worldwide is more, is like a cocktail is part of your culture. You dont have to say like, you dont have to tell, every Chinese people need to know how to cook. So you do not have to say these basic things, but here is like you have to encourage them to make cocktails by themselves. So you need to give them more tips on that.

71

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

So that is the major differences? Yes! We have been talking about this but Which consumers do you think produce value growth for the brand? Or which consumers do you want to reach to be sort of fashion leaders or opinion leaders? Do you use like celebrities? We XXX like Absolut influencers. They are not necessary celebrities but they have to be quite treated as like a group leader in their community. Like this type of people are always trendsetting so we actually have established quite well connections with all these like friends. They can be the marketing manager from all the like big brands Ferragamo like, Max Mara, all the marketing managers they are the Absolut friends. They drink Absolut when they hang out. And some artist and like media people, fashion designers, they are not as big as the celebrities. We never spend money to invite all these like celebrities to our Absolut parties, but we did some cooperation with them. Like for example, they opened a bar in Beijing, we would probably have some business relationship with them. And we work together quite well with some like producers, so when we have like Absolut parties all these people they will come. So you invite them? Yes, we invite them, but not like some of the brands, like you use the celebrities to indorse you brand. So it is not like an active endorsement. But if they for instance are having an industry party you can participate and use Absolute in the bar? Yes! Do you need in the future to be more in tune with the Chinese market? Do you think you need to stretch the brand specifically in China? Maybe a Chinese flavor or? I think in the near future we will still follow the global one. Do you think the consumers are going to be more international? Do you think that the target consumers are going to grow? Yes! So like more people than those between 25 and 35 are going so..? 25 to 35 is our communication target. If we are talking about consumption target it is much bigger. And I would say that the spirits drinker is like the group of, the universe is getting bigger. So definitely we have big potential to recruit more consumers. And maybe in the nearest future it is not necessary a new Chinese flavor but it is more like a consumer understanding. Introduce some like consumption methodology for them, for example, I think, probably you know Shivas, Shivas with green tea. It is very popular. With the bottle, the green tea is the flavor. That is only for China? That is more from Taiwan and China, but the people are the same. So this is the like one of their winning point. I think Absolut is like, if you want to recruit more people it is convenient and relevant consumption method is very important. I was thinking maybe if you look at the older consumers, maybe 40-50 and older, so this is like a sort of a new way of consuming liquor so Absolut stands for something different. Do you think, do you think they are adaptive to change? I think we will always target the young rather than the old. And I think Absolut belongs to the people it is like, it is not necessary like 40 or 45 but it is more like, your life attitude. If you are working in a fashion field, no matter if you are 50 you are still an Absolut drinker. But if you are in a factory maybe the XXX is enough. It is like more active, very socializing, very exceptive of new ideas. That is more Absolut. And also we have Level. We introduce Level to targeting to an older group. It is a more, I would say, wealthy group among the older group. But still with a certain lifestyle or sophistication? Yes, but it is quite different from Absolut Vodka. Being an international brand, what would you say is the greatest challenge to be on the Chinese market? Or is it only benefits being an international brand right now? I think at this moment it is benefits more than the barriers. China is now becoming more international, especially Shanghai. I just had Absoluts CEO visiting a few days ago. He cant believe this is Shanghai. He said is like New York it is like London, it is very cosmopolitan. But Shanghai is not representative for China. Shanghai is the showcase of the whole China. The rest of the cities they are all looking to Shanghai. So a brand, if you are successful, Shanghai is very beneficial to the whole China. But again if Absolut is doing very well in New York I believe it is beneficial to Shanghai. But on the second hand you have to do something localization, make the brand more relevant, more like approachable, to help the people to get closer to the brand. It is not aspiration but you have to be part of your life. Do you conduct market research, focus groups, or how do you..?

72

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

We did some like brand tracking, to monitor the brand health like awareness and all these things. And we did some customer research to know the, find out the trends rather than what happened before, it is more what will happen in the future. So what do you think the trends are? I believe the white spirits is the next, will be the hottest category in like 3-5 years. Have you looked into sort of the consumers, what do you think will be the trends within your target groups? If you see like, in more and more cities like the bars, are very well developed. The dancing clubs are very well, nightclubs like, all these entertainment things is like shrinked. And the young people, the life values are changing. It is not just about money and money, it is more about enjoying your life, socializing, friends and all these things, fun. So I think this is the root of the whole trends, if people are looking for something different, they want something different to help them to express themselves. Because bars was not that common, or the bar culture only developed the last few years basically.. Actually it is booming in the past like one year, it is booming. It is unbelievable. Even in some like quite XXX cities, they have very nice bars there, and the people, the young people they are just chasing something like, they believe going to bars is the trend. Even Monday evening, it is packed! Do you have like western or American TV-shows, I was thinking like Sex and the city if you know, and stuff like that. Do you think that is influencing..? We call it product placement. There are a lot of dramas, like shows, the local ones. But I think, it really depends on opportunity so we are quite close with some like film producers and we send out a message. It is like, we used to work quite well with Sex and the city and Cosmopolitan, like Absolute Hunk, it is quite successful I would said. Probably, they are going to introduce some dramas, it is not dramas, it is more kind of like TV-shows programs. For example, you are going to recruit, to interview, to get an interview from one company. And probably, Absolute is trying to make XXX, recruiting a manager. But you put this story on TV. So something like that so we, I am not sure it is still in discussing about all these things. We were talking before about what Absolut stands for and it is creative, fun sort of. Do you think in you marketing research, or do you think that is what the consumers perceive as well? Yes! Or has something else been added that you know or noticed that or maybe it is more this the way they use it? Absolute is considered as a creative brand an also as a progressing brand. They perceive Absolut developed, growing quite fast. Now that we are here we noticed that all the western brands are here now and it is like exploding almost. How do you think that that affect Absolut? I think it is helping. It XXX the trend, and China is such a huge market. Actually China is the biggest beer market in the world. It is the biggest. So actually if you are talking about like who will be your next consumersbeer drinkers! You upgrade them to the spirits drinkers. So it is huge potential. Do you see any Chinese traditional cultural values that influence their consumption or that is? Not really! Is it that easy to adapt the Chinese consumer to international values or lifestyles? Because, I think in China, for the generations like, below 40 I would say, we all gone through like the cultural revolution, so the group of people they are not so connected with the traditional values. I would say, it is still there for example, very, comparatively we are very close to the family, very respective to the senior people. Comparatively we are not that individualistic, we are more confirmative. But I would say it is more like your life and your career, if you are talking about socializing with your friends we are more western culture influenced but if you go to your family with your parents then we become more like traditional XXX. So you do not think that this is something that affects the consumption of the brand. I dont see that at this moment. In the Chinese one it is more like, we have the Chinese spirits is more like in the restaurants. You drink it together with food but it is very male oriented and it is very like, it is quite like old it is not like young people. Young people are more like beer drinkers. And also, all these like local spirits are comparatively in the north part of China. Shanghai is very international I think, even in, starting from 1940, is becoming international, a lot of like immigrations. I think in Shanghai one tenth of the population is foreign people.

73

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

We have like 300 000 Taiwanese in Shanghai. Hong Kong is around like Taiwanese 700 000, Hong Kong 300 000, that is one million. And then you plus all the foreigners. Shanghai in total is about like 14 million. And also Shanghai, I think even if you use our company as an example only half are Shanghainese, the rest are from the other provinces and other countries. And there are a lot of people working here now for international companies? Yes! You said that in traditional values Chinese are like collectivist and to me Absolut is a very individualistic brand, your advertising is all about expressing yourself sort of. How do you think, is that attractive I mean coming from sort of a collective value base. Why do you think it is working? I think it is like, China as a whole is collective but the target consumers for Absolut, is still a very niche market, so I dont think Absolut is a mass brand, would be accepted of most of the people, it is still quite niche. But the good thing is that the base is so big, so even if it is niche, it is quite a big potential there. An also it is very difficult to for see what we are going to do in the future. I think that Absolut, the beauty of Absolut is very XXX. You can see it is very individualistic, very consistent, the bottle is always there and the, you can interpret the brand from like, give more like a regional understanding. Probably in the future we can work together with local artists to give a translation from like a culture perspective. But in an artist way, I believe that that would be very interesting. It is so rich in China in terms of culture, in terms of the artists, we have a lot of different types of operas and we have a lot of like, I dont know how to say, but like the paper cutting, like the broidery. It is amazing. So do you think that Absolut is maybe going to take advantage of the culture a little bit more, maybe in their..? It would be very interesting if we have some like regional project in the future if we cooperate with these local artists. We have just done one project, the Vanilia launch in China, and we did it in Shanghai and also in Beijing. The Shanghai one is very international, it is all about these fantasy, very western style. But when we did the one in Beijing it was completely different. It is still fantasy dreaming but in a cultural way. We use all the like rice paper, we did the white lanterns, everything, and we did the gardening, and we did that in the summer palace so it is completely, it is still, the concept is still the same but the execution is completely different. So do you think the international way of doing it wouldnt work in Beijing? I dont think its not working, but I would say the local one is more relevant. You can not say you use the local one to represent Absolut. We still have the international one for most of the cities in china, but if you want to versatile the brand you add a little bit of the local flavor and you feel like.. Do you think they consume the brand differently in Beijing? They consume it in the same way. Its more like a PR activity. But you wouldnt do the opposite doing the more Chinese way in Shanghai? I dont think Shanghai is more international. Yeh. And I would not do the Chinese way as the representative of Absolut in the whole of China. I would still remain the international image. But when we are talking about the Beijing city event, we can do it more in a Beijing style, maybe citron next time we would like to add a little bit of citron spicy style there. But for the young consumers, do you think its more status or more aspireable when its like westernized? I was thinking if you where to use like Chinese artists, for instance, for your campaigns in comparison to using an international one - as a New York artist. For that target group, do you think its as attractive with using Chinese ones? The way we are doing is likewe still have the international. For example, an art campaign, we have the international one - different artists from different countries to give their own interpretations, and the Chinese artist will be one of them. So you still have the global one, but a little bit focusing on the local ones. Make people feel proud of being Chinese. Do you use Chinese people in the ads or is it more western models in the advertising? For advertising we only use global ads. But when we are talking about a fashion/art campaign, more like PR, we introduce the local artists to be part of the whole campaign. Its more like an interpretation, like for example music, we have the global one and we invite djs from Belgium, Germany and China to remix it with your own style. Something like that. It would be nice to know more about the New Years campaign. Ok Ill show you! (see the Absolut XXX file film on the execution of the Chinese New Years campaign: promotions, window displays, in-store displays, packaging, IKEA-event, etc) Did this activity take place in Shanghai as well as in Beijing?

74

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

We had the launch event only in Shanghai, but we had the promotions in several cities. With the in-store displays, gift box, etc How was the response? It was very very well received. We got a lot of media exposure, and even from international ones, from Reuters. This showed how a brand respects the local culture and the ambitions of the brand to be really part of the country. You dont think its normal for international brands to adapt to the Chinese and use it in their marketing? I think most of the international brands just bring the international oneits very seldom a brand do something only for the local market (noise) So youre saying that other international companies arent not really using Chinese culture in the way they communicate? Maybe this is not precisethey do use the Chinese consumer insight, I would say. For example some brands in china very focusing on the aesthetics, they would tailor make a TV-commercial for the market. But I would say not every brand is doing that. Do you think its because they are afraid of changing the values of the brand? I think so. Global brands always want to remain the global image. They dont want to be to far away from the global one. Its always a challenge. You want to make the brand more relevant, but you dont want the brand to loose the global essence. So its balance, I would say. Maybe for Absolut its not that far off anyway, because many of the Absolut campaigns are very different, - have different themes. So this is just another theme. Its very smart. Yes! For example we have the city campaign - its for all the different countries, different cities. But if you look at it its very Absolut. This is the smart way. Do you think, again, you could just name a few of the main magazines you are advertising in here in China? Vogue, Elle, Dcor, Vision (lifestyle magazine), Mens Ono (Male magazine Taiwan), etc. I think thats it! Just give me a call or send me an e-mail if you have any further questions. Thank you so much for your time!

75

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

APPENDIX 2.
Transcript IKEA Magnus Omstedt IKEA Shanghai Interview 2005-11-04

Har ni ppnat butiken i Guangzhou nnu fanns inte med p er karta i receptionen? Den r inte uppdaterad n hr r huvudkontoret i Kina, kan man sga, hr sitter service office, SO. Vi hjlper Peking och Shanghai varuhusen och vern Guango varuhuset med deras marknadsfring och ven frsljning, hjlper till att stta priser i hela Kina. S vi stttar alla dom hr varuhusen. Men s finns ven trading house som sitter och tillverkar produkter i Kina. Men ni har vl samma produktsortiment i hela vrlden, s r det fr bara Kina eller centralt fr all produktion i Kina? Det r fr hela vlden. 20% av allt tillverkas i Kina globalt. Men dom gr ven ocks fr oss sjlva , om vi sger att vi importerar den hr frn Sverige och ser att det blir alldeles fr dyrt, det r ingen som kper, kan inte ni tillverka den hr i den hr mngden? D gr de det ocks t oss. Och dom r ju experter p att kopiera hr ocks Men marknadsfringen grs i Shanghai fr hela Kina? Ja, vi gr det fr hela Kina, men varje varuhus har en local marketing manager ocks som ansvarar lokalt. Men vi sitter och gr de stora kampanjerna och vljer ut vilken grupp vi ska fokusera p, hur vi ska tnka, hur vi ska trycka p. Vi jobbar mycket med store and organising, Frvaring. Det r det som r vr leadership business, kan man sga. D har vi med det i vr marknadsfring. Vi jobbar d med Tv-reklam, extern reklam, print/tidningar, och skart kataloger och broshyrer. Katalogen r det viktigaste marknadfringsinstrumentet fr IKEA. r det en specifik katalog fr Kina, eller kombinerat fr flera lnder? Som fr en del av Asien, kanske? Den r uppdelad fr olika delar av vrlden. Som den r nu - nu har vi lite planer p att ndra den men det r inte bokat n - r katalogen inte s lokalt anpassad, frutom priserna som vi stter sjlva. Men dom ger oss en engelsk version, s verstter vi den, med rtt copy ocks, s att det inte lter helt galet. Och s fr vi ndra en viss del av sidorna. Vi kan ta ut vissa sidor och ta in vra egna sidor. Baksidan och omslaget tex. Pa omslaget kan vi ha vran egen produkt. Sg att dom har klippansoppan i Sverige och det visar sig att det inte r en stark produkt i Kina kan vi vlja att ha ngot annat. Byter ni ven personer i bilderna s att det blir mer asiatiskt? Det vi frsker gra r att ha mer kinesiska modeller. Vi har haft fokusgrupper, d sitter vi bakom en spegel och lyssnar p vad de pratar om i katalogen. vad fint det r, vad vackert. De lskar verkligen inspirationen. S r det en bild med 10 designers och alla r blonda och scandinaver. Dom frstr inte vrt hem. Hur kan dom sitta och designa t oss?, och sdr. Det r ngot vi verkligen har tagit till oss av, att vi ska ha kinesiska modeller vldigt mycket. r det mixat, eller r majoriteten kinesiska? I och med att vi r ganska lsta med den hr katalogproduktionen, fr att alla i resten av vrlden inte har kineser och svenskar i SverigeVi frsker, dom sidor vi kan mixa lgger vi in egna kinesiska modeller. Om ni gr runt i varuhuset senare kommer ni se att det nstan verallt bara r kinesiska modeller. Det uppskattas. Kan ni gra specifikt in-store material fr varje varuhuset? Det kan vi gra. Men det ska ju sklart flja vr strategi. Det ska vara ett IKEA, s att det inte spretar t alla hll. Dr r man mer flexibel. Broschyrer och s kan vi gra sjlva. Kina r det ultimata landet. Det r s billigt att gra allting, att tillverka en broschyr kostar nstan ingenting, s att man r mer flexibel, men d r risken att man bara springer ivg frn IKEA. Det r ju en fara. Om man tnker p vstvrlden och alla vsterlndska IKEA-varuhus, har dom mycket specifikt, som tex italienska modeller i Italien? Man frsker det. Allting grs av IKEA communications, det r som en reklambyr fr IKEA i lmhult. Allting ligger ju i lmhult. Jag vet inte hur mycket nu vet om IKEA, men Ingvar Kamprad, Elmtaryd, Aguunaryd, str ju namnet fr. Det r ju fr att han r uppvxt dr. lmhult ligger vldigt nra. IKEAs hjrta r lmhult, s all design, alla mbler och

76

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

all tillverkning konceptuellt grs dr. S det r ett jttekul fretag att jobba fr. Speciellt hr, fr det vxer ju som bara den. Och man fr mycket ansvar, jag r ju nd ganska ung, men starta upp IKEA family, gr det hr, jttemnga stora projekt. Man hinner inte ta ut nn frn nt annat land att stta sig in i det. Det r jttekul. Men du har jobbat med nyppningen av varuhus i Kina? Det jag jobbar med r market research i Kina. S i alla kundunderskningar, alla marknadsunderskningar innan vi ppnade i Kanton kollar vi tex: hur mnga knner till IKEA - brand awareness. Jag vet inte om ni kan gissa - awareness i Peking och Shanghai r vldigt hgt: hr r det 95%. Vi har funnits hr sedan 98. Har haft mycket TV-reklam, mycket push, mycket PR. Om ni tnker d i Kanton, vad tror ni dr, dr vi inte har funnits allt och dr vi ppnade nu i r? Det r svrt att gissa.. Ja, de som har rest knner vl kanske till 10%, kanske? 30%. Men det r fr att IKEA finns i Hong Kong. Det r p franschise. IKEA r ganska uppsplittrat. Det hr r den bla gruppen. Det finns olika grupper inom ikea. Det r mindre konceptbutiker som r franschisegda. Det finns fyra stycken i Hong Kong. Kina r inte alls med och styr de, allts vi hr i Shanghai. r de mindre butiker, som finns inne i stan, mer som mbelbutiker och in varuhus? De r varuhus ocks, men de r mycket mindre. De utgr frn exakt samma guidelines koncept - dom mste frga dom som sitter i Holland fr att inte frng konceptet. Dom r nd en del av IKEA, men det r en annan garstruktur. I kanton ser dom d kinesisk reklam, eller Hong Kong reklam, s dom har sett p TV och drigenom knner dom till IKEA. S 30% har hrt talas om IKEA och 80% av dom tror att det r ett Hong Kong fretag. Bara 1% visste att det kom ifrn Sverige. Hur stor procent r det i Beijing och Shanghai som vet att IKEA r Svenskt? 15% som vet att vi kommer ifrn Sverige. Oj, r inte det ngot som ni verkligen vill ska komma fram? Jo, det r vldigt lgt. Vi vill pusha det och att vi r annorlunda mot andra fretag. Nu ses vi som ett dyrt vsterlndskt fretag vldigt mycket hr. Men det har frbttrats dock, priserna har gtt ner med 50% sen vi kom hit. Fr vi har tillverkat mycket lokalt, med samma kvalitet. Istllet fr att importera en klippansoffa, 98 kostade den 3,800, nu kostar den 695. I Sverige kostar den vl runt 1,800? Det r mycket billigare n i Sverige. Det mesta hr r billigare och det som sljs mest r det som r lokaltillverkat. Nu nr priserna har gtt ner s mycket, r fortfarande synen hr p IKEA som dyrt? Tyvrr r det nog s. Det r mnga fretag som har ftt den stmpeln. Man gr in och inte tillverkar lokalt med kostnader fr tullar, transporter, etc. Och att tillverka i Sverige r mycket dyrare n i Kina. S frn brjan var det ju vldigt dyrt. Prisuppfattningen har blivit mycket bttre. Dom ser att det har blivit lgre prise. Men det ses fortfarande som dyrt. Vilken skillnad! IKEA i Kina r det billigaste landet, relativt sett bland alla lnder och jmfrt med Sverige. I Schweiz tex dr tar det, att kpa en korg med IKEA-produkter, standardprodukter med ett kk kanske, komplett hyllsystem, det tar tv mnader fr en kille i Schweiz, i hans inkomst. I Kina tar det ett och ett halvt r fr motsvarande korg. Inkomsterna r ju s mycket lgre inkomster hr. Men iden r vl samma hr - att IKEA ska finnas i varje kinesiskt hem s smningom? Det r alltid: made for the people..att alla ska kunna ha IKEA. Jag lste i en artikel att IKEA, just som du sa, ses som exklusivt, men i ett positivt avseende. Som en lyxvara, eftertraktansvrd och trendigt Jag allt vsterlndskt r hftigt. Det r ju mnga som satsar p just de segmentet, men IKEA vill n ut till mnga mnniskor. Men nu bjar vi fokusera mer p kvinnor. Inte p rika mnniskor, men p the working woman. Kvinnor som jobbar, men som inte har ngon hgre inkomst. Bda i familjen jobbar oftastVi fokuserar mycket p det segmentet. Hur gr ni det d? Det handlar mycket om media placering, vilka tidningar vi gr ut i, och vrt budskap. Ser annonseringen annorlunda ut ocks?

77

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Att man kan f ordning p sitt hem. Det vill vldigt mnga - att det ska vara ordning och reda hemma. Det vill mnga kvinnor. Skert mnga mn ocks. Men, man bryr sig lite mer om hemmet, s vi fokuserar p det. I andra lnder, ses inte IKEA som lite hgstatus ocks? Ja, det r lustigt. I Sverige r det mest studenter som handlar p IKEA. I Polen, i Tjeckien r det ocks mycket mer hgstatus, och i andra stlnder r det ocks lite mer status och dyrare. Det blir ju lgre priser i och med att man tillverkar lokalt. Vi frsker ndra xxx.Vi fsker pusha mycket att vi r ifrn Sverige. Hur tnker ni att ni ska gra det med tanke p att det bara r 15% som r medvetna om det? Vi ska ha luciafirande tex. i varuhuset. Och d f reaktionen: Ah, r det svenskt, de r frn sverige. Skapa en koppling. De vet ju inte s mycket om sverige, kineser. Och Sverige och Schweiz p kinesiska lter likadant. Dom tror att Schweiz och sverige r samma sak. S begreppet Scandinavian design som finns i USA och Europa det finns inte med i medvetandet hos kineser. Som i USA tex, s bara fr att det finns swedish meatballs fattar alla att det r svenskt, men hr vet man kanske inte ens vad swedish meatballs r Men vi har ju hr sweden food shop, som gr jttebra! Det r ju ingenting vi tjnar pengar p egentligen, utan r ocks mer marknadsfring. Hr det kineser som kper dr? Ja, sklart expats ocks, men den r ju fr kineser den dr shopen. Det kommer expats och frgar: varfr sljer ni inte pocket-bcker. Men det r fr kineserna. Och dom tycker att det r jttekul. Choklad r ganska dyrt i Kina och hr kan du kpa en daim som kostar ingenting, och de har aldrig sett det frut, och de tycker att det r gott. S det gr vldigt bra, faktiskt. Vi pratade med Absolut vodka och de hade frsljning i butiken, eller ett speciellt event dr de slde Absolut p IKEA..? Ja, vi sljer ju Absolut vodka hr. I samband med att vi brjade slja det snkte Carre Fourre priset med 30% p sin Absolut vodka. OJ. Det r sn himla konkurrens hr i Kina. Carre Fourre r hr vart tredje vecka och kollar vra saker. Knner ni till Carre Fourre? Ja, det r franskt. Dom sljer..xxxoch sna grejor.. r det en av de strsta konkurrenterna hr? Vi har olika konkurrenter. Det finns hypermarkets stores, Carre Fourre, och s finns det ju depot clubs som B&Q, BNA, motsvarande byggvaruhus i Sverige, gr-det-sjlv Har det funnits mnga sna fretag i Kina? Gr-det-sjlv knns ju inte som typiskt kinesiskt Det kommer mer och mer. Gr-det-sjlv i Kina r att det r ett fretag som du anlitar, som gr med dig och vljer ut vad du vill ha och sen gr de allting t dig i huset. I hemmet. En kompis som jag har, han hade ftt enfaktura, vad kallar man det fr, ett upplgg av ett do-it-yourself-fretag som skulle gra allting t honom. Men d tog han bara prislistan och gick till ett BNA och kollade att priserna var ungefr samma. Dom knnar pengar p det, att folk upprustar sina hus. Men dom har mer hard furnishing vggar och golv och allt det dr. Inte interior, allts? Nej, men de gr mot mycket mer soft furnishing, ven mbler. Hur har hela IKEAs motera-sjlv-konceptet mottagits hr? Det r svrt. Det r ju ocks IKEA-konceptet. I Sverige r ju det vldigt lgt pris och bra kvalitet, men du fr gra en del av det sjlv, du fr ta hem det sjlv och allt det dr. Men hr r det ju inte s lgt pris, men kvaliteten r bra. Men det tycker fortfarande att det r fr dyrt, och s ska de betala fr att ta hem det sjlv. Delivery r ju inte gratis. Och s ska du installera det sjlv. Det r ju lttare om det r verkligen lga priser, fr d kan man frst att om jag gr det hr sjlvMen hr r ju arbetskraft s billigt s man r van vid att f allting nd. S gr du till NJ road hr bakom, dr de gr made-to-order mbler, kan du bara be dom gra en IKEA-grej, s gr dom en kopia. r det mnga som handlar p det sttet? Ja. Det r halva priset och det fr det installerat och levererat gratis.

78

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

De tar med sig katalogen dit? De har den dr. Frsker ni utbilda kunden till att bli mer gr-det-sjlv? Inte s mycket gr-det-sjlv, men vi visar p vr kvalitet istllet. Att vi inte har ngra miljgifter, det r en sak de kolla p. Det r viktigt, att det inte r ngra gifter i frgen och limmet i mbler. I de hr fokusgrupperna kom de fram att vi bryr oss mycket om miljn. Vad konstigt, tnkte vi, fr att kineserna struntar i miljn, men inte i sitt eget hem. Man vill inte utstta barnen fr farliga gifter. Det har varit skandaler om att man har slt, just i mat, att de har blekningsmedel i mjl och ris fr att gra det vitare. Det r mycket gifter. Folk blir sjuka, Det renoverar sin lgenhet, flyttar in direkt och blir jttesjuka. Det r vldigt hga mijkrav p IKEA. S det pushar vi vldigt mycket p. Det mste ju vara en stor skillnad mot ngon annanstans in vrlden, det r inget som frknippas i frsta hand med IKEA. Det r inget sljargument. Det tar man ganska fr givet i Sverige och att det r s hg standard p i Europa. Tyskland har ju stenhga krav. Och i Japan har de nnu hgre krav n i Tyskland. I Kina har de ju inte s jttehga krav och bra koll. Men de har pushat oss, och det r en bra grej att komma med. Att det r en miljmedveten produkt. Det r ngot som det r bra att kolla p kanske. Fr det r ett plus. Och s kvalitet. Och No-nonsens return policy, att du kan lmna tillbaks om du inte r njd. Det r vl inte s vanligt i Kina annars? Det blir mer och mer vanligt. Men det r oftast vldigt dlig service i Kina generellt. Fr att g tillbaka till konkurrenterna, de stora hyper-markets, de har ock No-noncens-return och ocks bra kvalitet, s det r ju vldigt stark konkurrens. Och s finns det ju kinesiska mbelvaruhus, vet inte om ni har varit och kollat, med sm affrer i. Det r ungefr samma priser, men med mera en stil som kineser r vana vid. Lite tyngre grejer, mycket lder och stort och det hr versaille palatset, som jag kallar det, guldkransar och snt. PAUS (Konverstion om varfr vi har valt att ka till Kina) Det r s annorlunda hr frn stad till stad, i Shanghai r dom vldigt bortskmda, dom vet exakt vad dom vill ha, de kan priserna. Framfr allt, du kan inte lura shanghaineserna. Du kan inte sga att det hr r de billigaste priserna. De vet exakt hur marknaden ser ut. De r mer vanligt att det gr till ngon med katalogen och tillverkar det likadant. I Beijing bl.a. r det mer som ok, det r bra, den kper jag. Inte rkna varenda krona lika mycket. S det skiljer sig mycket frn stad till stad. Nu ppnar vi i Guangzhou, generellt lgre inkomster, och det r svrt att sga n s lnge hur beteendet r dr. S ppnar vi ven i (Shouandgu?) i vstra Kina nsta r. En helt ny marknad. S det ska bli kul! S det mste bli vldigt lokalt i och med att det fungerar s pass olika p olika stllen och det r olika inkomstniver? Det r vldigt spnnande, men ocks en av anledningarna till mycket huvudvrk. Det r s svrt. Det r sdan jkla konkurrens. Och att skicka ut kataloger, ocks ngot jag ansvara fr. Det r ocks vldigt tufft. Att skicka ut till rtt hushll, och hitta rtt kanaler. Hur ft man ut den ver huvud taget? Hur mnga skickar ni ut i Shanghai? I miljon per stad ungefr. Vilka fr katalogen? Det finns ingen databas. Det finns inget SCB i Kina. Jag frsker skicka tilljag gr p typ av hushll, typ av byggnad. Jag vet att den hr byggnaden, som ni ser hr bakom finns det mnga nya byggnader, jag skickar inte ut till de tv-trevningshusen som har mycket lgre inkomst. De bara slnger den. S du mste bygga upp ett register frn brjan? Ja, jag gr till China Post och sitter och slr i deras databas, men dom har ingen data. De har ingen inkomstdata alls. Men nu bygger vi upp vr egen databas, s att vi vetom vi vet att de har varit hr kanske, att det tycker om det S vi jobbar mycket med det. Har ni startat upp IKEA Family? Vi ska gra det. Det r en del av det. Fr d kan vi se exakt vad de har handlat. Det r mitt drmscenario. D kan vi se att den hr kunden var hr frra veckan, handlade fr 3000 spnn eller om ett r 20,000, ok dom ska f den hr katalogen. Alla som bara har kpt fr 100 kr fr en annan broschyr kanske, med special offers. Men vi r inte dr nnu alls. Men min databas nu r en del av IKEA Family. Nr den r klar med adresser kan vi bilda IKEA Family. Bjuda in dom till det. Men vi mste bygga en databas frst. Det r ett fretag som skulle komma hit och gra det, TNT, ett hollndskt fretag som har jobbat med det i 16 r i Europa, som ska vara experter. Men nr vi kte till Peking och

79

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

gjorde ett test och sen tittade efter broshyrer som de skickat ut, var det jttemnga som inte kommit fram, som frsvunnit p vgen. S det visar sig inte vara s ltt. Pa Island skickar vi ut till vartenda hushll. I Sverige mste det vara s ocks? Ja, oh ja. Men dr funkar ju allt ocks. Ni har inte postorder hr? Nej. Du kan kpa Elle Decoration fr 20 och en stulen IKA-katalog fr 8. Och sedan g till hrnan och kopiera p hrnan Ja, precis. S det r ngonting vi inte tycker alls r kul och frsker kontrollera stenhrt genom olika kanaler. Men det r ganska svrt. Om vi ser till fler skillnader - problem med logistik, att det inte finns information om vilka kunderna r i en databas, kopiering r ett problem - vad ser du mer som r specifikt fr Kina? Att prisbilden fortfarande r fr hg. Samtidigt vill vi ju haatt det ses som bra kvalitet, s det r mycket viktigt. Inkomsterna kar ju varje r i Shanghai och Peking, och Guangzhou.S att mer och mer har rd att kpa vra mbler. Problem. Det r ju mnga saker som r svrt. Just logistiken r inte s svr, tror jag, att f in mbler och skicka, de har ju mnga hamnar, Men att skicka ut direkt reklam r vldigt svrt. Lite bttre i Shanghai som ju r ganska modernt. Sen, att vertyga alla. Om ni kan komma fram till i er uppsats vad det r som fr Shanghaineserna att komma in och shoppa, s fr ni grna sga det. De r vldigt svrflirtade konsumenter. De kan marknaden vldigt bra, Hur fungerar det, om du har gjort underskningar om det, i ett medelklass kinesiskt hem hur r kpvanorna? I Sverige tex r vi ju vana att piffa upp vrt hem lite d och d och kper en liten grejHur fungerar det hr? Nr man kper en lgenhet i Shanghai kper man ett cementhl. Det r inte s att den r inredd och klar. Sen gr du allting sjlv. Du betalar sjlv fr att f all inredning. D anlitar du ett inredningsfretag, som gr det jttefult, tycker jag. Eller s kan man gra det sjlv och kpa mbler p IKEA eller andra stllen och frska f in. Man gr oftast allting p en gng i brjan, s vi har pushat vldigt mycket fr: one step at a time, du kan gra det step-by-step, du behver inte ndra allting. Det var en bra kampanj, d kom mnga och bara kpte delar bara, och bytte ut kanske Men det r en print kampanj? Print och ja, vi hade TV-reklam ocks. De strsta r verktygen r TV-reklam och katalogen...? Det strsta r katalogen, och s har vi print ads i tidningar. Vilka tidningar anvnder ni er av? Det r olika, nu vet jag inte exakt, China one Evening News (02 06.17) r det mest dagstidningar? Ja, dagstidningar. Inga koncepttidningar, Elle Interiortrendiga tidningar? Det skrivs vldigt mycket i Elle Interior i alla fall, om oss. Men det r inget vi betalar fr. Och s jobbar vi mycket med PR. S det publiceras ju ganska mycket artiklar om Kina. Gr ni det hr ocks, eller har ni en PR-byr? Vi har en PR-byr Eastwei. Dom r duktiga, faktiskt. Vi ska trffa dom ocks. Dom har Absolut ocks. De verkar jobba med alla svenska fretag Johan har en vldigt bra kontakt med svenska fretag..och s r dom vldigt duktiga. Dom hjlpte oss nu hr i Kanton med mycket PR. Men det som r kul hr r ju att det r s olika fr varje stad. S ppnar vi i Guangzhou, dr det r mnga som knner till Ikea, mnga som ville komma till Ikea och var jtteintresserade: varfr ppnar ni s sent, ni har funnits i Shanghai, vi r ju den mest utvecklade staden i Kina, ni mste komma hit frst, och sdr. Vi visste ju att det skulle vara vldigt mycket mnniskor som kom. D marknadsfrde vi ju inte med en stenhrd ppningskampanj. Nr vi i Shanghai hade vi 82 000 pers frsta dagen. En vanlig dag r det 10 000 pers hr, ungefr. Det r ju helt galetVar det hr som de frsta kunderna fick en gratis sng, s att det var folk som sov ver utanfr? Nej, men vi frsker g ifrn sna kampanjer nu. Det var i, var var det, Saudi ArabierFrenade Arabamiraterna s blev det olyckor, folk blev krossade till dds fr att det var s mycket mnniskor. Och s i England var det ocks en kampanj som hade lder-Klippan fr 40 pund slagsml brt, det var fr mycket mnniskor. S nr vi ppnar

80

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Guangzhou ville vi har en soft opening, och inte det hrfolk som bara kommer och kper den hr, och sen sticker jag Och kanske aldrig mer vill komma tillbaka, som ser det som en lskig upplevelse S nr vi krde i Guangzhou hade vi vldigt mycket reklam externt, men inte s jttemycket. Man pushade inga speciella low-offers, inga sna priser fr att f dom att komma. Fr det lockar ju just inte till inredningslsningar med det, inte visa att kp den hr, du fr halva priset nu fr att vi har ppnat idag. Kom bara, shoppa och shoppa . Utan det var mer: vra lsningar, inspiration, att vi har mnga room-settings, att du kan lra dig mycket om hur du kan frndra hemmet. Och det lockade jttemnga. r det ngonting nytt fr just den hr marknaden att man ser ett helt rum i affren? Det r vi ledande p i Kina, kan jag sga. Det r bara vi som har sna room-settings. I andra varuhus ser du bara en soffa och kanske en stol. Dom frsker hrma vldigt mycket Ikea, det finns ett stlle som heter Oriental Home. Det r en stor gul lda med rd text. Du fr gula sna hr vskor ocks. Det r en vldig kopia p Ikea. Men dom har inte ftt in den hrvi har ju d inredare som jobbar med displayerdom har inte ftt den, riktigt, dom har inte ftt knslan fr det. P Ikea r det vldigt uttnkt hur man visar upp det, det r vldigt snyggt, tycker jag. Du ser ju hela rummet med mbler, soffa och matta och anti-halkskydd under mattan allting r vldigt uttnkt, allting r med. Men dr r det bara en stol och ett bord eller en soffa. Men det uppskattas vldigt mycket hr. De lever i vra room sets. Om du gr till ett annat varuhus fr du inte ens rra mblerna. Hr kan du ju sova p sngen om du vill. Folk sitter och sover i vra soffer. Dom sitter och sover och liksom bor i varuhuset. Och det tycker ju vi r jttekul. D sitter dom och drmmer, tnk om vi hade den hr soffan hemma, jag kper denMen du f inte gra det i andra varuhus. Det r bara: dont touch. Du fr inte rra ngonting. S det r ju ocks ngonting som r annorlunda just i Kina. I hela Ikeavlden fr du ju rra sakerna. Hoppa i sngen, om du vill... Vad sger Dux fr nt d? Dom r ju ganska nya Dom ppnade ju fr inte ens ett r sen. Dom var ju den frsta detaljhandelfretaget som ppnadeDom har ju lite en helt annandet r vldigt upper-end r allting importerat fortfarande, av deras mbler? Ja, dom gr ju precis tvrtom. Det segmentet r ju ocks stort i Kina de med mycket pengar sklart. Men vi frsker n fler. Men ni skriver om urbana kineserDet r svrt. Det r s mnga meddelande hela tiden. Det r reklam verallt och det r s mycket. Unga mnniskor vet inte ens vilket mrke de ska ha. Det finns s mycket att vlja p. Det knns ju verkligen nr man r hr nu. verallt r det affrer och brand namesdet mste vara jttesvrt att bryta igenom med nt budskap. Det r ju det som r tufft. Det r ju det strsta problemet. Att n ut med budskapet och f folk att fastna och komma till Ikea. r det just i Shanghai som ni har ndrat om kampanjen mot just kvinnor? Det r i hela Kina. Men det r ju inget nytt egentligen fr att 70% av vra kunder r kvinnor. S det r mer att man frsker ge mer vad dom vill ha. Att vstvrlden ses som efterstrvbartr det den uppfattningen ni har ftt ocks? Mnga sger det the western dream. Det r drfr som mnga har just en vsterlndsk familj i en reklambild. De sitter i en soffa och r alla jtteglada och har en koreansk diskmaskin. LG dom har sn reklam. Vi frsker ha ett kinesiskt hem, och vissa mbler r Ikea-mbler, visa att du behver inte byta ut allting p en gng. Mblerna passar vldigt mycket in i era hem ocks. On-step-at-a-time. Och det funkar ocks bra. Nr vi har pratat med andra fretag, r den allmnna uppfattningen att man inte behver anpassa sig s mycket, fr att konsumenten ser s mycket till vst och aspirerar ditt, att det inte riktigt r en ndvndighet. Frutom sprkligt, man ndrar copy, osv. Medans ni i era underskningar har sett att man vill kunna identifiera sig med bilder och reklam? Man mste kunna se att man kan ha det hr sjlv i sitt hem. Det ska vara en affordable drm, som du har rd att kpa, som r mjlig. Du ska inte knna att gud vad lngt bort det dr r, den vsterlndska drmmen med stort jttekk. Det kan man inte riktigt ha. Men nt som r lite nrmare. Du behver inte byta ut allting Det knns som att hela nyckeln r, det sger bde Dux och Absolut, att man utbildar konsumenten att konsumera vstvlden. Vi utbildar inte, men vi inspirerar. Fr att utbilda tycker jag lter som att s hr ska ni gra. Men det r inte alls s. Det r mera att visa inspiration, s hr kan du gra.

81

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Men just det dr om att dom r vana att byta ut allt, och s sger ni att man behver inte det. Det r ju en sn tendens. Kanske inte sga t. Men ni kan informera och inspirera till ett mer ppet tnkande Att ndra olika saker. ndra ver huvudtaget. Och att frbttra livet i hemmet. Vr slogan r ju: A better everyday life for the many people. Man ska ha ett bttre liv hemma. Ni har funnits hr sedan 98. Vet du ungefr hur utvecklingen har gtt under dom sju ren? Frsljning, eller? Ja, frsljning, och om man har tnkt om i sin marknadsfringsstrategi? Det enda vi har tnkt om r ju att vi kom in vldigt dyrt. Vi har jobbat bra fr att f ner priserna som bara den. Vi har tryckt ner alla priser. Det r den strsta grejen som vi har jobbat med. Vi har ju lrt oss att dom tycker om vra roomsettings och frsker visa mer inspiration. Och det gr ju bra, jag kan ju inte sga exakt hur vi gr. Det r ju ett privat fretag Ikea, ocks. Men det gr ju bttre varje r. Och vi expanderar ju nu. Vi ska ha 10 varuhus inom 10 r. Hur mnga har ni nu? V i har 3 nu. Men var 6:e mnad ppnar vi ett nytt. S jag har precis kommit i rtt tid hr, det r bara hur mycket som helst och varje marknad r s annorlunda. S man gr verkligen sin hemlxa innan. Som vi ppnade nu i xxx, dr r det bara 10% som knner till Ikea. D fr man pusha lite andra saker, vad Ikea r verhuvudtaget. Dom tror att vi sljer grnsaker liksom. Men i Guangzhou var det mer om att pusha var vi finns ngonstans. Fr att alla vill grna komma, vi var vldigt tydliga i all kommunikation med karta och adress. Karta och adress verallt, s att det var ltt att hitta. S det beror vldigt mycket p vilken marknad man ppnar. Nu ppnar vi ju ocks ett nytt varuhus i Peking ocks, nsta r. Och dr har vi intervjuat nuvarande kunder, vi stnger det nuvarande varuhuset och ppnar ett nytt. Ett strre. Vrldens nststrsta Ikea. Och d kollar vi om de kan tnka sig att komma. Och det r vldigt mnga som sa det: ja, jag kommer bara jag vet hur jag tar mig dit och var det ligger. Och grna vill jag ha shuttle bus, gratisbuss, dit ocks. Och sen skulle jag tycka det var kul med, det hr och det hr och det hr, vissa saker de vill ha mer av. Det r nt vi tar med i den kommunikationen, i den katalogen vi ger ut, vi ger ut en broschyr infr det, s pushar vi mycket p det: exakt var det ligger, hur man tar sig dit, hur man ker dit, vilka bussar man tar och vad vi har mer i det varuhuset. S att varje ppning r annorlunda. Det r det som r s kul. Har ni gratisbussar hr? Nej, Hr kanske det inte behvs. Hr r det s bra frbindelser. Det hr r vl ett av de fsta varuhusen som ligger i stan? I vlden menar du? Njaaadet ligger vldigt centralt. Och den i Guangzhou ligger mitt i stan. Men det r fr att vi hyr det varuhuset, eller vi hyr den byggnaden. Eventuellt kanske vi bygger ett riktigt stort varuhus i Guangzhou ocks. Det ska ju ligga en bit utanfr. Man ker med sin egen bil och hmtar sjlv. Men har r det ju inte alla som har bil. Nej, s det r ett medvetet val, att hr br man kanske ligga mer centralt? Det beror ju ocks p var man fr tillstnd att bygga. Det r s hrt styrt i Kina. Vi kanske skulle vilja ligga ngon helt annanstans, men nu finns det den hr biten av land: vill ni ha den? D kollar vi: ja, det hr verkar bra. S man styrs mycket av det, det r s mnga olika faktorer som styr. Men om vi ska kolla just p urbana konsumenter. Jag tror att man r vldigtdom vet inte riktigt, det finns s mycket att vlja p, det r s mnga meddelanden, det r s svrt att vlja. Och man aspirerar mycket till dyrare, finare, vsterlndska mrken, som r fr dyra. Det r en overklighet. En drm som inte riktigt gr att frverkliga riktigt. Men tror du att den kinesiska kulturen pverkar hur dom konsumerar, vad dom tar till sig? Absolut, men detvi ndrar ju inte vra mbler. Vi gr ju inte kinesiska mbler och ming och ching dynastin mbler. Det r exakt samma. Vi hller konceptet rakt igenom, nstan. Frutom att vi har lite broschyrer ocks, det har dom p Ikea i andra lnder ocks, men vi har inte tagit bort fee delivery, vi har inte tagit bort att man mste installera sjlv. Men kulturen, jag vet inte vad man kan ta in med det, att manr vldigt rknande pengar. Man har ju inte haftdet r kultur, men historia vldigt mycket ocks. Det r ju et u-land. Det r ju fortfarande det. Ett utvecklingsland. S att folk har ju inte s hga inkomster. S det r klart att man bryr sig vldigt mycket om vad man lgger pengarna p. Men s r det ju nstan i hela vlden. Frutom om man r stormrik. Det finns ju med, att man r verkligen, g och kolla dr nere dr man kan ta glas tex, dr str de och tittar p varje glas, ven fast de kostar en krona. (man r vldigt noggrann). Och sen ocks mycket kvaliteten, att man r van vi att ofta bli lurad i Kina. S har det varit frr. Nr man gr och kper en kamera tex, tittar man p den och testar. Jag tar den hr. Men det r utstllningsexet. Ja, men jag vill ha den hr. Det r gammalt. Men det har ndrats, fr kinesiska fretag har ju ocks moderniserat sig och fixat bra service. Det kanske lever kvar lite grann den dr knslan? Det lever kvar lite grann. Man testar alla lampor. Gldlampor i varuhuset. Man testar att de funkar. Man testar allt, alla elektriska saker. Alla lampor och s. Det finns kvar vldigt mycket. Det gr det. Vad r det mer. Man strvar lite efter

82

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

nt vsterlndskt. Lite frndring. Nt nytt. Det r inga 50-ringar som r hr riktigt. Nu vill jag inte diskriminera den gruppen. De fr jttegrna komma hit och handla, men det r mer 25-40 som r hr. S average age r ungefr 30. Det r vl ganska ungt om man jmfr med resten av vrlden, eller i alla fall jmfrt med Sverige dr kan man ju se alla ldrar, frn student till pensionr i princip. Det kanske r lite snvare hr. Det knns som att Ikea r lite trendigt nd, fr mnga. Ja, det r nog lite det. Mnga ldre sger att det r fr yngre mnniskor. Du pratade ju tidigare om att ni tar in egna designers fr vissatex PS-serien, eller vad det nu kan varatar ni in ngra kinesiska designers som gr ngon special edtition? Alla mbler har en designer bakom sig. Det r designers som tillverkar allting, som tar fram koncepten fr allting. Men ibland brukar ni har speciella...som r designad av den hr och den hr Absolut, det pushar vi ocks i varuhuset. Vi har en bild p designer. Det hr har hon gjort, det hr har han gjort. r det ngra kinesiska designers? Nej. Vi har en japan (ha, ha). Nej, det r absolut inte close enough. Allvarlig det r nt som kanske kommer att man har en kinesisk designer. Men det r en positiv sak att man visar att det r design bakom allting. Att du fr design fr ett lgt pris. Bo-koncept finns ju hr dr r det jttedyrt. Det ligger i nrheten hr. Det r danskt. Det finns i Sverige ocks. Dom r ju jttedyra. Men det r ju design ocks. Men vi gr design billigare. Men tror du att det uppfattas av konsumenten som en designprodukt, mer n som massproduktion? Dom som handlar dr vill nog ha mer face dom tycker att det r hftigt. Dom har nog mycket mer pengar. Wow, jag har bo-koncept. En rik kines kper ju grna stort, fr att visa upp. Skrytsamt, men det finns olika sorters rika. Det finns dom som bara r helt skrniga, som kper Versaille-palatset. Guldgrejor. Allting r bara guld, guld. Jag var och kollade p en lgenhets r det en jttegammal hemsk byggnad. S gr jag dit, s hr jag jttehg klassisk musik, jttehgt! S gr jag in: Welcome, welcome. Stt ner musiken, sger jag. S r det guld i hela lgenheten. Han har liksom stylat allting. Bordet r uppdukat med bla tallrikarS r det ett hotelfretag som har gjort hela lgenheten. Sg att ett rum r s hr litet s har du ett bord som tog upp hela rummet! Det var ju verkligen fr att gegive face, som man kallar det. Och ett stort skrivbord, och en jttelder fotlj, som en chef har dOch det trodde han att jag skulle tycka om. Det blev ju lite fel. Det var ju absolut inte det jag ville ha. Men d sa han att det r en kille frn Fenyeng och Guangzhou som vill flytta in om inte du vill ha det. Och det kan jag frst, fr dr r det vldigt mnga, som jag skulle kalla nyrika, som kanske tycker om den stilen. Men sen finns det ju sklart de som har stil. Allt r egen smak. Men som vi ser det, kanske har ett normalt vsterlndskt kk. Det finns ju ocks den gruppen. Dom gr nog skert och handlar p bo-koncept fr att de tycker att det r snyggt. Och vill inte vara sdr skrniga och visa upp guldstuket. Just det hr med att visa upp saker, tror du att man gr det med Ikea-produkter. Att de har sdan status? Nej, de har inte den statusen. Men det kanske var s frr, att det hr r Ikea. Men det r fortfarande mer status n i Europa. Att man kan sga att jag har kpte det hr p Ikea. Vissa skriver ju det i annonser: Ikea furnished house for rent och sdr. S att det r mer status. Det kanske r mer kvalitetsstmpel..? Mmm. Jag hoppas att det r det. Det r ju det bsta om de ser det som att det r en kvalitetsgrej. Men jag tror inte att man visar upp ansikte med det hr r frn Ikea. Men det r kvar det, fr att mnga tycker att det r dyrt fortfarande, den stmpeln r kvar. r butiken exakt likadan hr, eller har man ett annat beteende nr man handlar i Kina? Nej, samma varuhus. Vi ndrar ju sklart designen. Frklarar, om det heter Cook-shop i England, frsker vi frklara att det r just kksgrejor. Det fattar alla i England, fr de har varit dr s mnga gnger. Men allting r ett koncept, s det r vldigt standardiserat. I butiken d, vi lste ngonstans att kineser r vldigt frtjusta i vldigt hg musik och att det ska vara ganska hgljudd volym i en retail-milj. Har ni anpassat er till det? Nej, vi har inte s hg musik. Men dom tycker om det, det heter xxxx p kinesiska, vrme och aktivitet kan man kalla det, det r mycket boom och speakers f full gng och ngon som str och dansar utanfr. Och det r mnga som klagar, nr dom kommer hit knner dom sig inte vlkomna, det r inte tillrckligt hot drinne. Men ni vill nd bevara det mer lgmlda?

83

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Vi frsker ha nn dr som delar ut lite broschyrer kanske, och sger vlkommen in. Man r ju van i Kina att ha ngon som fljer med en nr man handlar. Hallo, vill ni har den hr. Nn som fljer efter en. Det har vi ju inte alls hr. Men det uppskattar dom ocks. Speciellt kvinnor tycker att det r sknt. hh, sknt att slippa det dr. Jaha, dom tycker det. Fr vi har funderat ver det, om det bara r vi som tycker det r jobbigt. Men dom vill ha hjlp nr dom vill ha hjlp. I ett kinesiskt varuhus r det sker 10 pers i ett omrde, och hr har vi 2 max. Fr det r alldeles fr dyrt att ha s mnga. Och det r inte allskonceptet heter gr-det-mycket-sjlv. Du ser priset, du kan lsa av exakt vart det str, du hittar det, det r vldigt enkelt, bara du har lrt dig det dr. Fr kineser som r van vid: vad kostar dent hr?. Ja men, det str ju p. Jaha, ok. Vad hmtar jag den hr? Ja, men det str ju p dr ocks. S det blir ju lite problem. Vi lr ju vra anstllda att det ska jobba med konceptet, men kineserna r ju vana vid full service. Det r en liten balansgng dr. Men det dr kommer dom sker smlta in i efter ett tag Jag hoppas det. Jag tror det. Och folk tycker att det r sknt att slippa: vill du har det hr, eller vill du har den hr, titta, titta. Vi tnkte att kineser tycker att det r ok, det r s vana vid det att de tnker inte p det och att det var mest vi som reagerar p det Jag reagerar p det ocks. Och jag har varit hr ganska lnge, men jag frstr fortfarande inte vad det kommer ifrn. Fr jag tror att kineserna tycker att det r jobbigt ocks. Man blir snarare bara mer stressad och vill drifrnmycket konstigt. Det var en sn dr DVD-fsljare som stod och hela tiden: look, do you like this, do you like this. Vad ska jag sga till dom om dom kommer, frgade han mig d, fr jag kunde kinesiska. Sg bara: let me know if I can help you, sa jag till honom. Han bara, ok. S kom jag tillbaka tv veckor senare. Thank you, thank you, och var skitglad. D har han sagt det, det var precis vid western hotel och mnga amerikaner som gick dit, han hade slt ut alla sina DVD. Han var jtteglad! Fr att han hade sagt let me know if I can help you. Dom sken ju upp som solar, alla han sger det till. Annars str han ju bara och prackar p folk saker. Allting r ju vldigt generellt nu. Jag vet inte vad frgestllningen r mer fokuserad p. Nu berttar jag ju bara allt. Men du har jobbat mycket med fokusgrupper och konsumenter? Jag jobbar ju vldigt mycket ocks med att kolla inkomstniver, om man ger bil, har dom tillgng till internet, i olika stder. Och sen kundnjdhet i varuhusen, vad det tycker om services och sdr. Och s jobbar jag ju nu med att tracka vad vi ska skicka ut i material och broschyrer. Kolla vrt marketing area, vilka vi ska skicka till, var det bor, konsumenterna. Var de kommer ifrn. Det r mycket snt som jag har jobbat med. Men det du sa om att konsumenten bryr sig om miljn, det var ju intressant. Vad tycker du mer? Det r inte det strsta. Det strsta r att priset r bra. Value for money, r vad som sljer i Kina. Och sen r det ju viktikgt sklart med awareness. Att vi ska ha miljvnliga produkter. Vi vill ju grna att man ska kunna lita p Ikea. Vi frsker vara vldigt rliga hela tiden. S det handlar ju om sn hr terkallning av produkter. Det var en stol som hade rda ftter lngst ner, som kunde trilla av. Ett barn skulle kunna stta det i halsen. D hade vi sn global recall i hela vlden, och tog tillbaka den produkten. Vr PR-chef hr, communications manager, blev nedringd hela dagen. Fr vi la upp det p hemsida: Den hr tar vi tillbaka. D frgar dom: vem r det som har dtt, vilket barn? Det r inget barn som har dtt, men i fall attDet blev en sn PR-kupp fr oss, fr ingen i Kina hade gjort det. Wow, dom tar tillbaka den i fall att Och det kom folk och filmade h. S det r vldigt bra att vara rliga. Vi blev jmfrda med ett Japanskt fretag dr det var en produkt som var felaktig, skadlig. Global recall, men inte i Kina. Fr att det var logistiskt svrt att ta tillbaks allting. Men d blir ju sn himla negativ PR runt. Jvla japaner. S vi frsker vara vldigt rliga. Och nr vi har recall r det klart att det r i Kina ocks. Och det hjlper ju d, d ser man oj. Och det var en sn ny grej. Dom hade vntat tills det hade hnt vanligtvis i Kina. Och sedan gmt det under mattan. Men vi hade det fast ingenting hade hnt. Men alla trodde ju det. Vad har hnt, vilka barn, var r barnen. S dom r inte alls vanaMen det r sklart. Nu sger jag allting som vldigt positivt. Men vi har ju lite problem hr och dr ocks. Men det mesta gr bra. Fr er mste det ju ocks pverkas vldigt mycket av att allt vsterlndskt som kommer hit, man blir mer van, i filmer tex ser man hur vsterlndska hem ser ut. Det strsta frndringen r ju att man kan brja ga sitt hus i Kina. Det kunde man inte gra frut. Man fick sin lgenhet av sin work unit. S frn 1990, tror jag, brjade dom med att du kan kpa ditt eget hus. Kanske tidigare i Shanghai. Och d om man kper sitt eget hus, r det klart att man grna vill lgga lite mer pengar p det. Hyr man ett hus, eller som du har ftt av din arbetsgivare, fr det frsta bryr du dig ju inte s mycket om det, du sliter p det mycket mer. Och du vill inte alls lgga ngon tid p att mblera det och hnga upp saker p vggarna. Men kper du ditt eget hus, det r ju den kinesiska drmmen. Hellre kper man ngonting istllet fr att hyra, och kasta pengar i sjn. Man vill

84

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

investera. Det r ju bra fr oss ocks. Det r drfr BNQ, OBI kommer in s mycket. De har ju 16 butiker i Kina. Dom ser den potentialen. Vad i hemmet prioriteras mest hr, om man kan generalisera s? Ahhh, bra frga. Dr man kollar p TV. TV:n r mycket centrum i hemmet. I Sverige r det mer soffan eller matbordet kanske, eller middagsrummet. Hr r det mycket vardagsrum, med TV, central of the home . Dom kollar mycket p TV. Vi gr ju sna home visits och kollar hur folk bor. Ni gr ganska mycket underskningar fr att kartlgga hur beteenden ser ut. Just att frst life at home, hur man bor, det mste vi frst, annars om vi kommer in med brakkk i Guangzhou dr alla har ett kk p balkongen. Tycker ni att ni har problem med att frst konsument beteendet? Har ni misslyckats? Det r ju s lika. Man gr ju samma saker i vlden. Man ter, man sover, man duschar. Det r vldigt lika var man n r. Men sen kanske inte var och hur, eller nr man gr det r p ett lite annorlunda stt. Men vi har nog en ganska bra bild av hur ett kinesiskt hem ser ut. S vra rum hr r ju anpassade till ett typiskt kinesiskt hem. Ett kk r ett ungefr samma storlek som vi vet att average kitchen r i Kina eller Shanghai, eller i Guangzhou. Och ven balkonger har dom brjat bygga. Men balkong i Shanghai r det bara skrp p oftast. Dr stller man ett gammalt kylskp och ldor. S att d har vi tagit och gjort vldigt mnga fina balkong-setttings. Du stller tvttmaskinenen dr, man kan ha lite grna vxter, man kan ha hyller uppsatta och ha ett extrarum. Om man tnker sig enbarnspolicyn ni kan inte slja s mnga vningssngar d Det r ju fortfarande en vldigt strikt enbarnspolicy, det r det. Men d blir det en frdel ocks, att man vill lgga mycket pengar p det barnet. Man kper grna miljmedvetna mbler, allts utan gifter i, till det barnet. Och en bra arbetsbnk, och en dator till barnet. Vldigt mnga barn har ju en dator nr dom r sm. Man satsar mycket p utbildning. Dom ska ha bra belysning nr dom pluggar. S att barnavdelningen gr ju vldigt bra, fast det r vldigt dyrt. Vi sljer ju barnartiklar ocks. S att det blir en frdel man lgger mycket p det barnet. Men vningssngar, nej Nr dom barnen vxer upp hur tror du att konsumenten kommer att frndra sig? Det r en intressant relation, fr dom r ju s bortskmda. 76 brjade dom med det, med enbarnspolicyn. Dom har haft det vldigt bra. Men mnga av dom har haft det vldigt bra fram tills att dom r 10, sen kommer krav, krav, krav. Dom fr plugga som en toking. Plugga, komma in p universitetet, plugga, plugga, plugga. Sen ska dom hitta jobb, och s ska man sttta mamma och pappa, mamma och pappas frldrar och sen ven fruns, om du r en man, s flyttar ju dom ocks med. Det brjar ju ndras. Det finns kvar. Det beror p hur traditionell man r. Men det ndras mer och mer, att man flyttar ihop med sin fru och bara bor ihop med sin fru, eller flyttar ihop med sin man och bor bara med sin man och kper en lgenhet tillsammans. Men du skall alltid vrna om dina frldrar och sttta dom. Det finns ju inget jttebra pensionssystem heller. S att, lderstriangeln ser ju ut shr tvremot, det ska ju g shr, s att det r mnga nya mnniskor som kommer in. Det gr ju helt fel fr Kina p grund av den hr enbarnspolitiken. S att det r ju en ganska bortskmd grupp konsumenter som har ftt allt dom vill ha, och aldrig behvt laga mat, aldrig behvt tvtta. Men samtidigt har mycket krav p sig i skolan. Men flyttar man inte hemifrn frrn man gifter sig hr, vanligtvis? Eller finns det mnga singelhushll? Det finns, men det blir mer och mer att man bor ihop utan att man r gift. Vilket fortfarande r olagligt, officiellt. Med det ndras ju jttemycket. Det r inte alls lika konservativt lngre. S att just i storstderna blir det ju att mnga kommer dit och jobbar, och kper dom en lgenhet eller hyr en lgenhet och bor ihop med sin flickvn eller pojkvn. Det r jttevanligt. Men det r traditionellt, att familjen r jtteviktig. Man mste ta hand om sina frldrar, det r inte s att man stter dom p ett hem. Det finns inte. Man fr grna bo hosom man gifter sig s flyttar mamman och pappan hem till den nya lgenheten. Det mste ju ocks pverka mbelinkp strre matbord, och allt snt. Strre sociala ytor. Det tittar vi ocks p, hur mnga som r just 3-generations under one roof. Hur mnga som r singlar. Hur mnga som r precis gifta. Den strsta delen r just 1+1=3. De har gift sig och ftt ett barn. Det r en stor grupp. Eller ihopflyttade. Det r den strsta konsumentgruppen som handlar hr. Sen r det mnga som kommer med sina frldrar. De bestller vad dom vill ha, dom r kanske 20 gamla. Dom pekar ut: det hr vill jag ha. S kper frldrarna. Nr dom ska flytta hemifrn? Nej, ven i det nuvarnade hemmet. Mnga bor hemma lngre. Det r inte som i Sverige, dr man flyttar hemifrn s fort man kan. S det r inte lika mycket fokus p kompact living, som det r i Sverige?

85

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Nej, husen som byggs hr r ju stora som hus. De r jttestora. 80 kvm r ju minimum. Vra kunder har mycket strre lgenheter n den average lgenhetsstorleken hr. Men average hr r mycket strre i Kina n den r i Sveige. Fr kper du en 3:a i Sverige r det hur dyrt som helst. Hr r det fortfarande lite lgre priser jmfrt med Sverige. Men det byggs bara stora lgenheter. Man bygger mycket strre. Men det mste bero p att mnga bor tillsammans hela familjen. Ja, och s bygger man p hjden. Det finns mer plats att bygga p hr. S att mycket strre rum m man kan tnka, man tror skert kompact living, men k till Hong-Kong eller Guangzhou, dr r det mindre. Och i Hong-Kong sljer ju kompact living jttebra. Men Guangzhou r lite strre, och s i Shanghai och Peking r det stora lgenheter. Det r inte alls s att de ska vara jttesm. Att allting r litet. Ni kan anpassa sortimentet d, antar jag Ja det kan vi gra. Vi tar inte in allting. Vi tar inte in brakkk. ven om de har stora r det inga som har jttestora kk. S vi tar inte in dom dr strsta kken. Vi anpassar. Men inte vid nya produkter. Frre eller fler av vissa artiklar kanska. Man kan sga att det ni gr specifikt fr Kina r reklamkampanjer, det som ni kan anpassa totalt till den kinesiska marknaden r print och TV Vi jobbar ju inte bara med iacom i Sverige, vi har ju en byr hr ocks som vi jobbar med. Som hjlper oss att tnka hur vi ska tnka mot den kinesiska konsumenten. Men om man tnker den hr reklamen ni har hr. Vad skiljer sig du sa att det kanske r mer kinesiska modeller, ni fr anpassa men vad mer? Det var en bild p ett stkigt hem, och s blir det organiserat. Bara det att vi har sett det problemet p den hr marknaden. Att man vill grna organisera sitt hem. Tyvrr r inte det s sexigtvad ska man sgakul, just storyn organize i sig sjlv. Det r inte s kommerciellt. Det r inte in fashion att man ska ha det. Det kanske r mer fashion att ha den nyaste soffan. Men det finns vldigt mycket i medvetandet att, ppnar jag den hr ldan ligger det plaskassar frn tusen r dr. Du kan organisera dom s hr. S att det r det vi har sett, det behovet. Och visar s p dom lsningarna. Om man kollar p USA, s kanske det r just en stor soffa. Man visar mer soffor. Annars r det inte s stor skillnad. Priset r med i all kommunikation, det r Ikeas trademark Allt annat r ganska likartat. Du vet inget just mer Kina-specifikt i vad man fr med annonser? Kinesiska modeller. Kinesiska tag lines. Vi har ingen liksom: Make life better in Ikea, ingen engelsk slogan i Kina. Varumrket r ju Ikea sklart. Xxxxxxx, p kinesiskt. Det r samma mening, fast p kinesiska. Alla produktnamn, d? Dr har vi med det svenska och kinesiska namnet. Fr att det r ju just ocks fr att visa att vi r ett vsterlndskt, ett svenskt fretag. Eller Schweiziskt(ha, ha). Det hjlper ocks, fr d blir vi annorlunda. Man fr knippar ofta utlndska produkter med kvalitet. Och s blir vi ju annorlunda d: Aa, Sverige, , vad roligt, vad r det fr ngonting. Det ska vara lite skillnad. Annars r det inte s mycket. Dom billboards, utomhusreklamen, som vi har sett, det knns som att dom r lite yngre, i frgerna och utseendelite poppiga Jag hller med, just dom hr nu r ganska kommerciellla, Wow, liksom lite s hr. Fr att s r hela marknaden. Lite poppiga. Det knns lite mer strikt hemma. Ikea-katalogen r organiserad. Det knns vldigt trevligt och lugnt. Jag kan hmta en broschyr, s fr ni se, som vi har gjort nu fr Kina Vnta lite. Den hr har Ikea Communications gjort i lmhult, bara med kinesiska modeller som det hittade i Sverige. Hr ser ni d, liksom, det hr r inte typiskt traditionellt kinesiskt att mannen str och stryker sina skjortor och hon sitter dr och softar, liksom.. Ja just det det r vl vldigt omvnt? Och s blev det ganska kul, det r ju i varuhuset, men det ser ut som hon har tv mn (se broschyren) D leker man ju lite med de kinesiska vrderingarna, knns det som, i alla fall hr Ja lite, hr. Nu har vi ju inte gjort ngon underskning p hur dom hr tas emot. (bldder, bldder) Hr r hon i varuhuset och handlar. Om jag kper de hr produkterna kan jag f lite ordning och reda i mitt hem. S sitter hon och softar och hennes man fixar lite. Dr r det ocks lite ombytta roller Man fr kopplingen till varuhuset i broschyren, och sen att det r lite(xxx)

86

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Ja, det r ju ett lite annorlunda grepp, nd, att det blir lite mer som en historia fr att knyta ihop det. Och s r det en annan grej som r speciellt, jag ska visa det, att vi har sna hr! (bldder, bldder) Nej. Hr r ocks en grej som r ganska kul. Pappan som leker med sitt barn. Man r ju vldigt affectionate i Kina. Man umgs vldigt mycket med barnen, och ven mnga som gr och hller hnderS jag hoppas p att folk kommer att uppskatta det hr ocks. Och se det. Att pappa leker med sitt barn, liksom. Hr r ocks samma mamman har handlat. Fr det r lite tvrtom Dux r en annan kategori, kanske men dr r det nstan bara mn som handlar. r det hr Dux (tar p broschyr). r det bara mn som handlar. r det sant? Ok. Ja, och s sger dom till frun att fixa lakan, ungefrdet r deras department. Fr s r det inte hr. Hr r det mer kvinnor som: det hr mste ni tnka p. Med det r drfr det r ju sna hr dom sljer p. Eller hur? Visst r det det. Dom hade ven annonser i BMW-tidningen, just mot vlbrgade mn. Och Shanghai Tatler Dom sljer ju mycket p sex, eller vad ska jag sga? Det r mycket mer naket. Det skulle aldrig Ikea gra. Det skulle dom nog aldrig erknna heller Nej, jag vet inte. Men ocks att det r bra smn, och sdr. Men s r det ocks en helt annan priskategori det kanske r mnnen som har 100,000 att lgga p en sng, ocks. Men det r mycket kvinnor som bestmmer inkp, ocks, fr hemmet. Ja, det var det vi diskuterade med henne och tyckte att det kanske inte var s. Fr i Sverige r det ju ofta kvinnan som kanske bestmmer mer, eller planerar mer familjemssigt Jag hade en hr som var klockren (bldder, bldder). Det r typ sna hr som vi frsker gra, Affordable Dreams. S att: den, den, den fr det priset. Du ser det som ett set. Man kper ju grna i set. Vissa kper ju jag vill ha det dr rummet Gr till varuhuset och sger: jag vill ha det rummet, hela det, plocka ihop det till mig. Ja, det r ju inte riktigt s det funkar. Men dom tycker om att ha ett set. S det r det vi frsker f med hr. S det r ju ocks en anpassning till vad dom r vana vid hur som konsumerar. Men det r lite det som r konceptet: Affordable Dreams. Den vsterlndska drmmen, lite grann. Ja. Det r en drm men nd genomfrbart. S hr r en young professional woman. Och s rummet att frska frklara hur man kan gra. Jag frsker f med det i nsta nummer: hur man stter upp en hylla. En borr, hl, att det r ltt. Annars r det bara. Uhh. Men sljer ni borrmaskiner och snt, fr det kan jag tnka mig att man kanske inte har..? Nej. Det har dom inte heller. Oftast ber man nn gra det. Men vi sljer hammare och skruvar och mejslar Vilken r storsljaren? Ludde. Sheep skin. Den lilla mattan. Ja. Och det r fr att det r ett s bra pris fr Kina. 299 kronor. Den kostar 500 verallt annars. Den ser ut som ett litet lamm. En pld. Som man har p golvet. Men mnga kper ju den fr att slja den vidare.. Kan vi behlla den (broschyren)? Ja, ni kan behlla den. Men det hr kommersiella, det var det jag skulle komma till ja. Vi har krt crazy Tuesdays, Saturdays, Wednesdays, crazy Thursday vi har speciella priser p de dagarna. Varje vecka? Ja. Och det r ju fr att vi har vldigt mycket beskare p helgerna. Vi vill ha mer beskare p dagarna. S att d, mndag, tisdag, onsdag, torsdag har vi halva priset p vissa artiklar. Och dom annonseras ut p vr hemsida. Det hr r ocks vldigt speciellt (fr Kina)alla butiker har dom alltid dom hr, just dom hr formerna. 50%,, vrnyheter, eller vad det kan vara Det r det nda man kan sga som blir mer kinesiskt. Man frsker nd. Vi vill ju inte haatt man vad fan r det hr?..nu r det ju nd lite s p den hrvilket fretag r det hr? Det kan man inte se riktigt. Vi frsker hlla samma. Hr r det ju ganska direkt vad det r. Killing 99 kr. Pris. Namn p svenska och produkten som r ocks Ikeaprodukt. Det blir svrare nr det r som p den hr. Vi hller p att kolla p det hr lite nu. Konsekvent varumkesbild.

87

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Du har inga fler annonser, eller tryckt material vi skulle kunna f? Jag har inget jag kan ge ut, tyvrr. Men ni kan kolla p hemsikdan. Ikea.cn. Det finns p engelska dr ocks. Vi har en lokal hemsida fr varje stad. Ikea.cn och s klicka vidare Tack s jttemycket fr din tid! Tack! S kan ni vl skicka till mig nr ni r klara. Om ni har ngra frgor kan ni ju bara skriva till mig.

88

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

APPENDIX 3.
Transcript Eastwei Pr Uhlin Eastwei Shanghai Interview 2005-11-11

Det vi gr r analys och strategi fr kommunikation, event management och media relations. Vi r 60 personer har tre kontor. Har ven ett system med deltidsanstllda som hjlper oss att gra mediekontakter i mindre stder ssom Xondo, Nandjing etc. vi tcker mer eller mindre hela Kina fr mediekontakter och PR. Vra retainerkunder dvs de kunder vi jobbar med p mnadsbasis eller rskontrakt, r t ex svenska fretag som, IKEA, Electrolux, Absolut Vodka och Saab, hur svenskt det nu n r nu fr tiden, men ven ganska mycket amerikanska och andra europeiska fretag. I stort sett handlar det om tre olika omrden, det ena r konsumentprodukter som t ex IKEA eller Absolut Vodka eller Cointreau, den andra r bilar tex Porche och Saab p retainerbasis. Den tredje r It dr du har Palm, telefoner och PDAs vi har Sony laptops, Envidia grafikkort och ven AMD. Det vi gr fr AMD r inte riktigt PR men det r ett projekt fr att gra promotion fr dem p olika Internetcafer. (AMD r som Intel men de r inte lika bra som dem. De gr ocks processorer). S s ser det ut kortfattat. Vi jobbar med analys fast bara som en bakgrund fr kommunikation. S ingen marknadsunderskning. Det r ganska mycket kvalitativa metoder, intervjuer, fokusgrupper etc fr att frst p vilken niv journalister, eller hur mycket de vet om en produkt just nu. Hur vi ska vi lgga det hr. Om vi lgger det alldeles fr avancerat kanske ingen kommer att frst men om man gr det fr enkelt kanske det inte r intressant. Ikea jobbar ju ocks mycket med fokusgrupper etc, har ni ngot samarbete med dem i frga om detta? Nej, inte vad gller det. Vi har haft det tidigare men nu anvnder de en reklambyr (Satchi-Satchi) som gr det t dem. Men vi gr denna typ av uderskning mer mot journalister. Vi var i och fr sig inblandade i en underskning nr IKEA ppnade sitt varuhus i Kampton i oktober 2005. Men d gjorde vi underskningar innan i februari-mars frra ret. Vi pratade d med journalister och gjorde intervjuer och kollade om de vet vad IKEA r fr ngot, knner de till namnet, vet de att det r ett svenskt fretag och vet de vad som r unikt med IKEAS koncept etc. De kom fram till att devet lite grann men inte speciellt mycket s drfr var vi tvungna att brja ganska tidigt med att utbilda journalister om vad IKEA r och vad r DIY (do it yourself/gr det sjlv), vad r flatpacks, Ingvar Kamprad och allt sdant. Det gjorde vi lngsamt fram till lanseringen i oktoiber. S det r ett exempel p vad vi gr fr ngonting. Strategi, kommunikationsstrategi hller vi ocks p med men det r egentligen mest lngsiktiga PR program som vi gr. Event management gr vi oftast med mlsttningen att bjuda in journalister som ska leda till att de sedan skriver om det. Vi hller p ganska lite med konferencer och liknande, utan oftast lanseringar och presskonferencer etc. Vi jobbar med mediakontakter dr vi frsker gra det s som det ser ut i Europa. I Kina har det varit en ganska ful mediascen p s stt att man fr muta folk fr att f de att skriva om det man vill. Vi vill helst inte gra det och dessutom blir inte s bra om man bara r beroende av att betala fr att f coverage, fr d kommer aldrig journalister ngonsin att frska verkligen frst vad det r man gr och vara intresserade av det och d mste man ven betala varje gng man vill ha coverage. S p lng sikt r det inte alls bra fastn det p kort sikt kanske kan knnas sknt att kunna garantera en viss tckning. Hur hur tror du det har frndrats frr gentemot nu? Det har frndrats ganska mycket. Det kanske lter lite konstigt men det har frndrats ganska mycket p grund av att media har blivit mer beroende av att tjna pengar. Frr hade nstan alla media ngon form av statligt std och d spelade det inte s stor roll fr dem att tjna pengar, de kunde skriva vad skit som helst fr de behvde ju nd inte slja eller f in annonser. Men nu mste de pltsligt det och d mste de gra ngonting bra och d mste de ven profilera sig och ha intressanta artikar, och d fungerar det inte om man bara knner ngon och mutar dem fr att skriva. Man mste allts kunna f journalisterna att vara intresserade av saker och skriva ngonting sjlva och s mste man ven g till rtt media, rtt journalist och rtt del av media fr att verkligen kunna f rtt coverage. Det r mer s det fungerar i Sverige och i USA etc. ven om det kanske inte r lika svrt ibland att f rtt coverage i Kina jmfrt med vissa andra lnder, det kan vara lite lttare. Hur mnga r pratar vi om som det sg ut som du tidigare beskrev?

89

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Den frsta riktiga modetidningen var kinesiska Elle som jag tror kom ut 1992. Det har hngt ihop ganska mycket med att det kom utlndska medier och etablerade sig i Kina och startade upp sin egen kinesiska version och sen har de dragit upp kvaliteten p allt. Oavsett om det r modetidningar, biltidningar eller Ittidningar eller vad det nu r fr ngot. Dremot nyhetsmedier och politiska saker fr de ju inte rra. Men det pverkar ju inte oss s mycket eftersom vi nstan bara jobbar med marknadskommunikation allts fr produkter och fretag, hjlper de att sja grejjer. Vi jobbar inte med opinionsbildning eller government relations eller ngot sdant. Jobbar ni mest med printmedia och TV? Vi jobbar med printmedia, TV, oneline, portalen och sdr, fast inte s mycket med online busmarketing och sdana saker men mer med online PR. Det finns vl otroligt mnga magasin i Kina? Ja, det gr det. Jag tror att det ligger kring 9000 stycken. Men det r bara en brkdel av dessa som r intressanta. Det finns mycket skit. Det r lite intressant fr antalet magasin har inte frndrats utan det ligger p ett fast antal. Alla mste ha ett nummer och det finns bara ett begrnsat antal nummer. Vill man starta en ny tidning mste man kpa ett nummer av ngon gammal och sen gra om det, starta sin egen. S det r s det fungerar. Och de hr 9000, det har varit mycket sm tidningar som t ex det hr lilla omrdets kommunisttidning eller gruvfrbundet eller nn liten forskningsdel, alla hade sin egen lilla tidning fr d kunde man tvinga folk att prenumerera p dem och d fick man in pengar eller ocks kunde man f subventioner. S drfr fanns det s mnga. Om du tittar p alla utlndska media har de ett utlndskt namn men s heter de ngot p kinesiska ocks som inte har ngonting att gra med deras utlndska namn, och det r fr att de har kpt eller tagit ver ett gammalt nummer. Vi har ju bde trffat IKEA, Absolut Vodka och Dux, alla som Eastwai har jobbat med. Dux gjorde vi dock bara ett projekt fr. Absolut Vodka r en av vra retainer kunder som vi har haft i ett par r nu och gr deras mediekontakter kan man sga och vissa av deras event. Vi gr inte alla deras event men vi r i alla fall inblandade i alla event de gr och ser till att det blir rtt; rtt budskap, rtt kvalitet och s men det r inte vi som gr allt. Hur lnge har ni jobbat med dem? Sedan 2003. Vi brjade 2003 och d var det projektbaserat och sedan frra ret skrev vi p en retainer. Och idag har vi precis ftt klart att vi kommer utka retainern fr nsta r s det r kul. Den nyrskampanjen som vi pratade om fr Absolut Vodka, var ni inblandade i den? Den var vi inte s inblandade i utan den var driven av TWA, deras reklamfretag s de gjorde t ex den hr designen de gjorde den annonsen och ven den dr giftpacken. Vi hade i och fr sig ett litet mediaevent fr det och krde lite pressreleaser och sdr men det var itne s mycket. Vi koordinerade i och fr sig kampanjen ganska mycket, fr det fanns en onlinesite dr ocks som var den frsta kampanjsiten som gjordes fr Absolut i Kina. S den var med och den var vi med p och sen ven ontrade och offtrade promotion och PR och reklam och sdr. S vi var nd ganska inblandade i och fr sig men vi gjorde inte s mycket. Hr r Absolut Vanilia som lanserades hr i maj som vi ocks gjorde eventet och PR och allt runtomkring fr. Nr det gller eventen, r ni med och bjuder in gster etc? Vad har ni fr strategi och vilka r det som ni ser som pverkare eller influencers? Journalister bjuder vi in men ibland s bjuder vi ven in andra gster ihop med Absoult och TWA. Vi brukar stta ihop gstlistan ihop. Fr Absolut r det ganska mycket folk i kreativa yrken oavsett om det r reklam eller PR, konstnrer, fashion designers eller arkitekter. Det r ganska mycket sdana mnniskor men sen s r det ven ganska mycket partymnniskor eller festprissar som gillar att festa. Det dr var en ganska stor fest och man hade 700-800 personer dr under hela kvllen och man hade den p ett gammalt lager och s hade vi byggt in allt i vitt och sdr. Det eventet gjorde vi sjlva men vissa andra grejjer inte. I Peking gr vi inte s mycket sjlva utan dr jobbar vi med ett annat eventfretag. Det hr r ett ganska viktigt event, det r ju sjlva lanseringseventet men sen hade Absolut Vanilia ven mindre promotionfester ute p barar och de gjorde inte vi. Vi gr ofta det eventet som grs fr att kommunicera ngonting. Om det bara r fr att dra dit folk och fr att vcka uppmrksamhet kan de gra det sjlva, det r inte lika avancerat. Hur bjd ni p Absolut Vanilia p det stora eventet? Vi bjd p det i olika drinkar, ganska enkla drinkar. Det r ocks lite speciellt fr Kina att folk tycker att det r komplicerat med cocktails s de vet inte hur man blandar dem s det r ganska mycket ocks att visa att det hr r ngonting som du kan kpa och gra hemma. S det var Vanilj Cola, Vanilj Tonic och andra ltta grejjer som man kan blanda ihop sjlv.

90

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

Det r ingefr samma seker vi gr fr alla vra kunder ven om det r vldigt olika hur man gr det fr varje kund s att sga. IKEA r vl lite speciellt. Vi hjlper dem ganska mycket med att gra deras nya varuhuslansering nu ocks. S det var Kanton i r och s nsta r i april r det det nya varuhuset i Peking och senare det ret r det Djong Do. Och s nsta r r det Sanxian s det kommer att vara varje r nu minst tv varuhus som ska lanserat, s det r ganska mycket. De brjar att komma igng nu. Hur skter ni en sdan lansering? Brukar ni ha ett ppningsevent? r det fr allmnhetet? I Kanton har inte IKEA funnits s de vet inte s mycket om det. Varuhuset ppnades i oktober och vi brjade mediaeducation frn maj, frst med en ganska enkel presskonferens som berttade att IKEA kommer till Kanton och det kommer ligga hr, det kommer vara s hr stort. Vi hade en pressresa till Sverige dr vissa av de viktigase tidningarna i Kanton var representerade. De kte till lmhult och de kte till Stockholm och tittade p vad IKEA r, designavdelingen etc. Ok, IKEA r ett mbelvaruhus men det r samtidigt inte heller bara det utan det r ett koncept och de har sin egen design och de har sitt egna unika koncept. Det r svenskhet osv, det r en massa saker man ska prata om. Efter det hade vi mindre workshops fr journalister under sommaren, d vi hade ett mne som vi pratade om som t ex svenskhet och vad r svensk design fr ngonting. Och sen hade IKEA folk dr och ven andra designers dr. Vi pratade om DIY, vad r det fr ngonting och s fick de prova att stta ihop sina egna grejjer. S vi hade tre sdana. Infr varje tillflle frbereder vi material s de r ltt fr dem att skriva. De fr bilder, de fr i stort stt hela artikeln klar. Hur mnga journalister r med p dessa aktiviteter? Det r inte s mnga. I Kampton r det ett 20-30 stycken tidningar och magasin som r viktiga fr IKEA. P presskonferensen hade vi ungefr 50 personer. Sen har vi ven olika pressreleaser ocks som bygger upp, bygger fram till ppning. 10 dagar innan brjar hela kampanjen med PR och olika jippon och grejjer ute p stan. Fr Kanton hade de ingen reklam innan utan brjade med den efter ppning, fr de ville inte ha fr mycket folk frst dagen. Som nr de ppnad ei Shanghai s var det 80 000 frsta dagen. Det kanske inte blir ett bra frsta intryck. Ni var ocks med under Shanghaippningen? Ja, vi var med d. Hade ni samma typ av frberedelser d? Nej. Inte riktigt, eftersom det fanns redan ett varuhus i Shangahai innan. Det fanns ett mindre varuhus och sen s bara stngde de det och ppnade ett stort s man var inte tvungen att gra exakt samma fr journalister visste redan ganska mycket vad IKEA var fr ngot, s d blev det mer bara en ppningskampanj. Dessutom var det mer att f en drivetraffic till sjlva ppningen. En annan anledning i Kanton var att det var nytt s man ville inte ha fr mycket folk frsta dagen. I Shanghai s bara stngde de ett mindre och ppnade ett strre s det var samma personal som kan hantera mycket folk. Med Dux gjorde ni sjlva ppningseventet? Ja, det var ett ganska litet event faktiskt. Det r inte s stort och det r ett ganska nischat mrke ocks. Det r inte alla som har rd att kpa en Dux-sng och de r dessutom s otroligt dyra i Kina ocks. Eftersom det r en s nischad kundgrupp. Hur tnkte ni d infr ppningseventet? Det var inte s avancerat faktiskt, det var bara ett projekt. Det var mycket att bjuda in journalister delvis frn interior decorations tidningar. De bjd ven in interior designers som hjlper folk med mycket pengar att visa p hur de ska gra ordning sitt hem. Och sen bjd de in ganska mycket svenskar faktiskt. Jag har fr mig att det var tv olika sektioner, en fr media och sedan en p kvllen som var mer som ett cocktailparty fr att inviga Dux butiken s d fick folk titta runt lite. Det var inte s avancerat faktiskt. Det var ju bara ett projekt. Om vi skulle ha jobbat lngre fr Dux, som vi grna hade velat, d hade man ju ftt lgga upp en strategi fr ett helt r. Vilka mlgrupper man ska ha och hur ska vi jobba med det hr, fr det r ju inte s mycket att skriva om heller..sngar i ett helt r, s ngot mste man vl komma p under den tiden. De vill allts inte jobba vidare med er just nu? Jag tror att de dels inte har ngon budget nu i brjan och dessutom gr de ganksa mycket annonsering, i t ex handelskammaens medlemstidning har jag sett att de gr. De gr vl inte mycket annonsering, men det de gr r i s fall annonsering oxh riktar in sig ganska mycket till svenskarna som r hr. Och det r vl ganska ltt i och fr sig fr man har annonsen frdig frn Sverige och sedan r det bara att en sida i tidningen och stta dit den, och man behver inte fundera mer p det. Hon har ju bara en person ocks, Karen, tror jag , som ska gr allt i strot stt fr Dux. Men vi fr vl se, i framtiden kanske de har mer budget och mer tid. Jag kan frst att om hon ska skta affren och gra liksom allt r det nog ganska ltt att bara annonsera lite i brjan, och s fr det vara s. Men jag tror att de sljer ganska bra faktiskt. Bttre n vad de trodde faktiskt. De slde tre sngar tror jag , frsta dagen! Det finns ju folk med pengar i Shanghai, ckligt mycket pengar.

91

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

De hller p att ppna en butik i Peking ocks, men det var inte riktigt klart n. Ja, det borde de gra fr det finns folk med pengar dr ocks, men i Shanghai har man kanske tjnat dem mer lagligt n i Peking. Det finns i alla fall mnga korrupta politiker i Peking, mer n i Shanghai. I Shanghai finns mer affrsmn och entrepenrer. Det finns det givetvis i Peking ocks, men om man ska generalisera s r det nog fler som r beredda att sticka ut med att man har mycket pengar i Shanghai, ven om jag tror att folk i Peking har mer pengar n de i Shnaghai faktiskt. Men man vgar inte riktigt visa det. Finns det fler vsterlnningar i Shanghai n i Peking? Nej, jag tror inte det. Fast i och fr sig, fr de hrlyxprodukterna som t ex Dux elelr Porsche, s tror jag inte att vsterlnnignar r s speciellt viktiga. Vsterlnningar r oftast hr p tv-tre rs kontrakt, de vill inte kpa en sng fr 42 000. De fr boende ordnat och dr finns det en sng och den anvnder man och r den inte bra s ker man till IKEA och kper en ok som man har i tv r och sen ker man hem. Och man fr en bil frn fretaget ofta eller s ker man taxi. Om man ser till IKEA och Absolut till exempel, vad har du fr sikt om man ser till den kundgrupp men riktar sig till hr dvs den kinesiska konsumenten jmfrt med den svenska. Vad ser du som de strsta skillnaderna som man mste tnka p i marknadsfringen? Om man jmfr med Sverige om vi brjar med Absolut, s tror jag att mlgruppen hr r mer trendiga n i Sverige faktiskt. Det r en mindre grupp av mnniskor som dricker Absolut. I och fr sig s gr de sin kommunikation p det sttet ven i Sverige, att de har en grupp som r communication target group och det r ganska trendig personer ven i Sverige. Sedan har de en grupp som r frsljningsgruppen och det r interiktigt samma utan de tnker s att om vi vill kommunicera till den hr gruppen s kommer de andra titta p de hr och vilja vara likadana och kpa Absolut. Men i Kina tror jag att det r mer samma grupp communication- och cosnumer target group, och det r en mindre grupp som r mer trendknsliga n vad de r i Sverige tror jag faktiskt. Tror du inte att man tnker lite att den gruppen s smningom ska vara den grupp som influerar, eftersom det r en s ny produkt verhuvudtaget? Jo, det r det och det r vl s det fungerar hr ocks tror jag. Att det inte r alla som vet vad Absolut r men att det r folk som de knner som dricker det eller som bestller in det p p baren och s vill de ha en likadan. S det r vl en sak men en annan sak r ju ocks att om man ser p produktkommunikationen s r den mycket mer basic n vad den r i Sverige. I Sverige hller de mycket p med drinkar och creating drinkmixing, i Kina r det mer hur mixar du Vodka med Vanilj-Cola. Du kan ocks gra det, You can do it!. Det handlar mer om basic education, hur man konsumerar Vodka helt enkelt! Och sen r det mer i storstderna ocks. Absolut r vl mycket Shanghai och Peking och Kanton etc. Sverige r lite speciellt ocks fr Absolut. Jag tror att det r mer lika i t ex Italien och Kina eller i Storbritannien och Kina n vad det r i Sverige och Kina fr i Sverige r det ganska mycket nubbar till sillen och sdr. S tror jag inte att ngon dricker Absolut ngon annanstans. T ex en pappa som kper hem ett par Absolut och har p midsommar, det tror jag heler inte r vanligt i andra lnder utan det r mer trendiga mnniskor som dricker det i cocktails faktiskt. Det r mer s att de dricks p nattklubbar nr man gr ut. Om man tittar p kommunikationen r den ganska annorlunda ocks i Sverige jmfrt med utomlands. Absolut r ju lite mer en basprodukt som man kanske ven kan sga att IKEA r i Sverige ocks, det r inte lika trendigt. Ja, mer s i alla fall. IKEA kom vl in och var ganska trendiga hr men de ville inte vara det. Prissttningen var jttehg i brjan, och det var den vl tvungen att vara kanske ocks fr att mycket var importerat med importskatter och tullar. Men sedan s har de medvetet jobbat hela tiden med att snka priserna och bli mer for the many people och gra det genom att lgga mer produktion i Kina. Jag tror att sofforna kostar ca en ttondel mot vad de gjorde nr de frst kom hit 1998. Det r en helt otrolig skillnad frn tidigare pris. De brjar nrma sig dr de vill vara nu, att de flesta kineser de kan ha rd att handla p IKEA. Man kanske inte kan kpa alla grejjer men man kanske har rd med en soffa eller kpa ett par tallrikar eller s. Tror du att det kan ha skadat IKEA genom att de initialt hade s hga priser? Det tror jag absolut! Eller det har det. De har en image som dyra. Jag tror att det brjade ndras de senaste tv ren d folk brjade frst att IKEA faktiskt inte r s dyra. Men fram till dess har man sett dem som vldigt dyra i Kina, och det r inte alls det de vill. En annan mlgrupp, det r nog lite nd mer folk med pengar och lite ldre i Kina som handlar p IKEA. Jag tycker att det r lite mer studenter eller folk som precis har flyttat hemifrn som handlar p IKEA i Sverige. Om man sger som s, jag tror inte att det mnga universitetsstudenter som kper mbler p IKEA hr. Dremot gr de skert dit och tittar och tycker att det r kul att kpa med sig ett par koppar fr tre kronor eller ngont snt, det gr de skert men jag tror inte att de handlar s mycket. De som handlar tror jag r mer folk mellan 25 och 35 r som har jobbat och brjar knna lite pengar sjlva och hller p att kpa sig en lgenhet och ska mblera den. Det r nog mer den gruppen och ocks, naturligt eftersom IKEA bara finns i Shanghai, Peking och Kanton och sdr, mycket storstadsmnniskor. Fr det r ju nd ett ganska annorlunda designsprk som inte kineser r vana vid. Det r inte s mycket tunga trmbler med rtt och guld och sdr. IKEA r ganska enkelt. Jag tror at tdet r mer attraktivt fr unga

92

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

mnniskor som vill vara lite mer vsterlndska och moderna i sitt stt att leva och vara. Sedan r det mycket kvinnor ocks som de riktar sig till. Fast det har man brjat med frst frra ret tror jag. De har frsttt att det r dem som bestmmer, var vi handlar och vad vi kper. Anvnder ni er av mer trendiga livsstilsmagasin vad gller IKEA? Det r vl allt mjligt faktiskt fr IKEA. Det r vl mera mass fr dem. Inte de riktigt trendiga mbelmagasinen r inte riktigt IKEA, det finns t ex italienska Casa som har en kinesisk version som r ganksa high-end med mycket Italien och Frankrike och sdr, och de skulle nog inte skriva om IKEA i alla fall inte speciellt ofta. Men annars som ELLE Interior och Cosmo, mnga av de kinesiska mbelmagasinen, de jobbar de med men ocks mnga dagstidningar. De har bilagor om mbler, lifestyle och sdr, s de jobbar vi mycket med. Men det r ganska brett fr IKEA faktiskt eftersom de vnder sig till en ganska bred mlgrupp. Och s TV sklart om man kan f det. Internet till viss del, men inte s mycket. Internet r mer fr t ex Sony Vio eller Envidia. Envidia r grafikkort och de mnnsikorna r p Internet. Om vi tnker Gr det sjlv- konceptet. Det r vl ganska nytt fr kineser? Hur tnker ni med det? Ja, det r ganska nytt fr kineser. Personligen tycker jag att Gr det sjlv-konceptet r inget man pratar om i PR. Jag tror att Gr det sjlv-konceptet r mer ett ndvndigt ont som man mste lsa t dem, konsumenterna. Det var lite sdr trendigt fr en tre fyra r sedan, DIY stod det om i tidnignarna. Men ganska fort tror jag folk insg att det r ganska jobbigt att slpa hem de dr paketen och liksom grla nr man frsker stta ihop det och allt sdant. IKEA frsker vl lsa det s bra de kan genom att erbjuda ven hemtransport och monterning fr en ganska lg avgifr och sdr. Om man kper mbler i Kina frman det hemskickat och uppsatt, s r det bara oavsett om det r en garderob fr 250 kronor skickar de nd hem det och stter ihop det. Det r vldigt bra service i Kina. S ni frsker inte motivera konceptet med att det r lga priser osv? Jo, det hnder vl, men d r det mer att frklara hela IKEA-konceptet och att DIY r en del utav konceptet och det r drfr vi kan ha s lga priser. Det pratar man ju om. Men jag tror inte vi sger att DIY r den nya lckra trenden, mecka sjlv! Sen tror jag att mnga av de som handlar p IKEA jobbar mycket. Alla jobbar ganska mycket i Kina, mnga timmar. Och man vill inte gna helgen till att stta ihop sin bokhylla om man inte mste. Speciellt inte om det har varit s pass dyrt hr s r det kanska svrt att motivera! Ja, nnu mindre d. Det r dyrt och dessutom ska jag slpa hem det sjlv och stta ihop det sjlv. Det gr inte riktigt ihop. Men man brjar vl and kunna sga att vi kan hlla lga priser p grund av det hr. Nu nr man brjar kunna hlla lga priser. Fast jag tror att det nd r ngot som man bara mste lsa i en information men inte lyfta fram som en frdel i kommunikationen. Dr har vi ju en skillnad om man jmfr med Sverige, fr mnga gillar det hr med att gra saker sjlva p ett annat stt! Ja, svenskar gillar att hlla p att mecka lite. Nej, jag anvnder inte rrmokare utan jag stter ihop allt sjlv, s gr min pappa i alla fall. I Kina skulle man tycka att vi var dumma i huvudet. I Sverige finns ju alla de hr inredningsprogrammen och Gr-det-sjlv programmen som r jtte stort hemma nu som pveerkar. Det gr de ju hr ocks men jag tror att man kanske vljer frgen sjlv och sen ringer man nn snickare etc som fr komma och mla. Och s fr han en hundralapp. S gr vi i alla fall. Anvnder ni den kinesiska kulturen p ngot stt som ett medel fr att kommunicera? Oftast inte faktiskt. Dremot anpassa vad som fungerar och vad som inte fungerar i Kina, t ex DIY fungerar inte att sga hr att det r kul och lckert fr att ingen tycker det. Det kanske det gr i Sverige, mer i alla fall. Det r nog mer s, att vilka budskap gr hem och inte hem och vem pratar vi medv fr det kanske ocks r olika. Men ganska sllan lnkar jag till kinesisk kultur faktiskt. Vi jobbar ocks bara med internationella fretag och d r det ganska mycket att st fr vad de r och kanske anpassa efter vad vi jobbar med och vad vi sger men inte mer. Absolutkampanjen var vl ett undantag. Tanken var vl att f mer local relevance fr Absolut i Kina och de fick vl lite sdr blandat mottagande tror jag faktiskt. Att vissa tyckte att vad r det hr, det hr r inte alls Absolut, inte alls den stilen som Absolut brukar ha medan vissa tyckte att va kul nu gr Absolut ngonting hr i Kina ocks. Aven om det var i och med den kinesiska kulturen, mot bakgrund utav det kinesiska nyret, s var det nda ganska vsterlndskt hur det r gjort. Det r ganska mycket Absolut-stil p det nd. Till viss del, den stora hgtiden i Kina r inte jul utan det kinesiska nyret s att bde Absolut och IKEA har en nyrskampanj, de har en nyrsrange, de kommer ut med speciella feature articles. T ex nur ska du bjuda gster hem och hur gr du det?, mnga i liten lgenhet etc. S visst, till viss del gr man vl det men inte s mycket nd. r det ngra andra kinesiska hgtider som r viktiga fr Kina? Hgtider r vl egentligen det kineskika nyet och moon festival. Den ligger i september. Fast man har inte ledigt fr den hgtiden utan det r bara det kinesiska nyret man har ledigt. Och sedan r det ju ocks konstruerade ledigheter,

93

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

dels nationaldagen frsta oktober och sedan frst maj, internationell arbetardagen. S de r ju ocks viktiga frn marknadsfringssynpunkt fr det r d som folk har tid att handla och gra ngot extra eller ut och resa eller shoppa eller vad man nu gr fr ngot, det gr man oftast under de veckorna d man har tid. Fast det r inte direkt kulturell bakgrund man jobbar med p det sttet. Antingen gr man ngot under den tiden eller s undviker man att gra ngot fr att folk inte har tid. Gr man en lansering s gr man den ett tag innan s att den kommer ut i pressen innan den hgtiden och sen kommer produkten ut i affren samtidigt som man stter upp reklam och fr media coverage under den veckan. Hinner man inte det s vntar man till efter fr ingen kommer att lsa tidninger s mycket under den tiden kanske. Men det pverkar i alla fall vad man gr fr ngonting. Kan du komma p ngot annat som du har sttt p nr du har jobbat med olika fretag som inte gr att kommunicera lika bra i Kina, eller det hr ska man nog undvika/modifiera att kommunicera, men som man kanske trycker p mer i andra lnder som t ex DIY-konceptet? Om vi tittar p de kunder vi har som gold, World Gold Council, och det de har jobbat med som kanske r lite unikt fr Kina r just att vertyga kineser om att 18 carat guld r riktigt guld fr i Kina r bara 24 carat riktigt guld annars r det bara fjams, ngot fejk! De har d jobbat med gold creation och att gra vldigt fina smycken, som r gjorda i Italien, och sen visa dem att det hr gr bara att gra fr att det r 18 carat och hrt nog fr att gra sdana hr grejjer. Det hr r en moderna typ av guld. S det r ju s speciellt fr Kina, fr det skulle man ju inte behva gra fr Sverige dr alla accepterar 18 carat som guld. En sak till r att till exempel Sony sger ju inte att de r Japanska i Kina fr det har man ingenting fr. Undvik det! Folk fr grna tro att det r ett internationellt eller amerikanskt fretag men frsk inte kommunicera att det r ett japanska fetag. Och de gr det kanske inte utomlands heller s mycket men de gr det nnu mindre hr fr att det inte r s poppis. Fast folk vet ju att de r japanska s de drabbades ju ganska hrt, det var ju ganska mycket anti-japanska stmningar hr i nr var det nu, i vras tror jag. Ganska nyligen var det, i somras var det nog, nr de frskte bli permanenta medlemmar i FN och sdr. Och det r kinesiska regeringen som har utnyttjat det, tycker jag, fr sina egna syften. Men hur som helst s var det det och frsljningen minskade med 40% under den tiden fr lap-tops s det knns ganska hrt och de var ganska low-key. Inga av deras planerade lanseringar eller events skedde under den tiden utan de vntade tills det hr var ver. S det r vl ocks lite annorlunda fr Kina jmfrt med Sverige. Piratkopiering hrde vi vara ett problem fr IKEA. r det ngonting ni behandlar i medialommunikationen, att ni trycker p design, att det r svenskt eller p kthet p ngot stt? Jo, det gr man vl. Visst det pverkar vad vi gr mycket genom att vi gr media monitoring och frsker hlla koll p om det finns ngonting som skrivs i pressen eller var det finns falska, eller om folk har ftt falsk absolut Vodka serverad, vilket har hnt. Men mer att bara veta om det hnder och sedan hantera det. Det r vl ingenting man gr ut med och sger akta er fr det finns falsk Absolut i Kina, d skulle folk kanske sga jaha, d kper vi ett annat mrke. I och fr sig drabbar det mer andra spritvarumrken mer n det drabbar dem ska jag sga men hur som helst p det sttet r det ju frn en krishanteringssynpunkt s pverkar vl piratkopiering oss ocks. Och kanske speciellt fr IKEA och Absolut Vodka och Mc Callan men ven AMD. Det finns en del piratkopierade processorer. Och ven piratimporterade, det kanske r riktigt grejjer men denimporteras via Hong Kong. Sony ocks faktiskt. De smugglar in dem p ngot stt. S det finns ganska mycket. Det r samma sak dr, det r mer att man mste veta om det hnder eller inte, om det brjar skrivas om det s mste man reagera p det ganska fort. Tror det r ngon skillnad p mottagandet hos den urbana kinesiska, de lite mer trendmedvetna konsumenterna fr det t ex svenska? r det vsterlndska lite samma sak? Tror du att svenskheten har stor inverkan p val av produkt att konsumera? Nej det tror jag inte men dremot tror jag inte att det r ngot negativt. Absolut inget negativt. Sverige har en vldigt positiv image. Folk gillar Sverige, De vet om Waldner och om Nobelpriset och vlfrdsstaten och bra kvalitet och design. Sverige brjar vl bli lite knd fr det ocks. Vissa knner till att Sverige var det frsta vsterlndska landet som etablerade diplomatiska relationer med Kina. S det r en ganska positiv bild av Sverige men dremot tror jag inte att folk skulle kpa en grej fr att den r svensk. Men det r absolut inget negativt. Oavsett om det r Absolut, IKEA eller SAAB. Det knns lite som om alla vsterlndska mrken som kommer till Kina blir vl mottagna, lite fr att det inte r kinesiskt. Tror du att det finns en sdan aspiration mot det vsterlndska eller ser du mottendenser? Jag tror att kineser gillar mrken. Drfr att de har vant sig vid att det har funnits s mycket skit att kpa och s mycket piratkopierade grejjer och att de har blivit lurade s mnga gnger och kpt saker som har gtt snder, s folk gillar att kpa bra mrken. Dels fr kvaliteten och det knns som en garanti p att man inte blir blst helt enkelt, men sen ocks tror jag fr att det hnder s mycket i Kina, det kommer nya stilar, nya mrken, nya bilar, nya spritsorter och jag tror ocks att mnga r lite frvirrade hr, vad r rtt och vad r inte rtt och vad vad passar mig d som har brjat tjna lite pengar hr och hur ska jag vara d. Det r ganska mycket nyrika mnniskor och d r det aldrig fel att kpa ett mrke som andra knner till. Det har inte riktigt blivit som i Sverige att mnga vill kpa mrken som ingen annan vet, eller det hr hittade jag i Tokyo p en bakgata, av en speciell japansk designer, wow! Ingen skulle liksom kpa en Tommy Hilfiger, ursch, ursch, ursch.. Inte mnga i Stockholm i alla fall. Det r lite shr att vad r det hr fr en kille, det var

94

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

ju kul. Men det skulle man dremot gra hr. Och mrket sger mycket om vem man r och vem man vill vara och det r ingen som liksom ser ner p folk som kper mrkesklder eller mrkesklockor eller mrkesbilar eller vad det nu r fr ngot. Det r mycket om att visa vem man r genom vad man kper. Du r vad du kper och vad du gillar! S att drfr tror jag ocks att vsterlndks mrken oftast tas emot ganska positivt i de strre stderna. Sen nr man gr upp i de mindre stderna d r det fortfarande mnga kinesiska mrken; mobiltelefoner, gympaskor och sdr. Drfr att det r fr dyrt kanske med de internationella mrkena. Men det fungerar inte s bra i Shanghai till exempel? Det r inge status i det? Nej, i Shanghai gr det inte det! Min fru jobbar ocks inom PR och marknadsfring och de hller p att prata med ett kinesiskt mrke som gr gympaskor, en tidigare leverantr till Nike, surprise, surprise! De sa att de kan inte slja i de strre stderna fr att folk ser ner p dem lite, men dremot sljer de bra i de mindre stderna. De gr massor med TV reklam p de nationella kanalerna och sdr. De frsker verkligen jobba med mrket men fortfarande, de accepteras inte i de stora stderna fr de r lite bonniga. Och just fr att de r kinesiska d egentligen? Just fr att de r kinesiska men inte bara kinesiska. Om de var frn Shanghai s skulle det kanske vara lttare, men nu kommer de utifrn bondvischan. Ngon gammal fabriksgare som har slt sulor till Nike och sedan startat sitt eget mrke. Han tjnar skert jkligt mycket pengar och det r skert inget fel p dem heller fr de tar skert all teknik som de har lrt sig och liksom kopierar det och sen stter p ett eget mrke. Det r skert inget fel p skorna. I brjan pratade vi om vilka magasin som r de viktigaste, fr er inom de hr 9000. Har du ngon kort lista p dem? Vi tnkte att vi skulle kpa p oss alla. Titlar p vilka magasin som ni anvnder er mycket av. Ska vi g och titta om vi hittar nt kul? PAUS Vi funderade p en sak, det blir ju lite annorlunda nu nr vi intervjuar fretag. Ni har ju mycket media, medier. S allts skillnader med att jobba med medier hr om man jmfr med hemma kanske. Hur mste man bearbeta dem p ett annat stt Stora grejjer! Blanda dig inte i politik eller nt nnt dr. Frsk inte skriva om det fr ingen kommer kunna ta det, allts dem artiklarna. S lnge du hller dig till att skriva om produkter eller om designtrender eller om soffor eller nt snt dr s r det ganska ok. S man kan skriva om i stort sett vad man vill s lnge man hller sig inom ganska ofarliga omrden. Hur man bearbetar dem, jag tycker att journalister r mycket smre, allts det r mycket lgre niv p journalister hr n vad det r i sverige. Fr att i Sverige r nd journalister ganska mycket ett statusyrke fr mnga och mnga vill bli en journalist och sdr, det r ngonting man verkligen vill gra. Men i Kina tycker jag att det r mnga som blev en journalist, att oj, nu blev jag journalist hr. Just fr att det r s mycket nya magasin och tidningar som kommer hela tiden och sdr, de behver folk helt enkelt. Och s r journalister, det r inget statusyrke i Kina eftersom det r inte s himla utmanande. Man fr ju nd inte skriva om vad man vill. Man kan inte liksom grva och fuffla med fula saker, avslja. S att generellt sett tycker jag att de yngre de r inte lika intresserade och vlfrberedda som journalister r i Sverige. Ofta om man skriver om en produkt s, ven om den hr journalisten r specialicerad p att skriva om lap-tops eller ngonting, s kan man inte ta fr givet att de vet allt som har hnt. Man fr ven nd ta ganska mycket tid till att bertta om, och ge dem liksom bakgrunden till historien, stta in det i ett strre sammanhang och sen ge dem artikarna. Och samma sak fr Absolut ocks. ven om man jobbar p en livsstilstidning, man vet kanske inte vad som hnder ute i vrlden med designers, vad som r inne och vad det r fr trender utan ven snna saker fr man bertta fr dem. Och s r de ganska lata ocks tycker jag faktiskt. Det r ofta en journalist som r ansvarig fr ganska mnga sidor i en tidning, att de mste fylla den med nt. Visserligen, det hr mste ju passa med stilen p tidningen eller magasinet men s lnge du gr det och att det r viss kvalitet s r de nd ganksa tacksamma fr att f hjlp med material. S det var det jag sa, att det r fortfarande lttare hr n vad det r i Sverige eller i Europa generellt sett att f in saker. S de r inte lika kritiska hr p samma stt? Inte lika kritiska p samma stt. Inte lika elaka heller p samma stt som journalister kan vara i Sverige. De r ganska liksom, lite naiva ibland och tar ganska mycket tid till att utbilda journalister. De stller upp p snt ocks. Jag tror, i Sverige skulle ingen komma p en glad workshop om DIY, men det gr de hr nd. Visserligen r det skillnad i Kina ocks. I Shanghai s brjar det ocks, det r ganska hgt tempo, folk r ganska snorkiga och otrevliga s att det r ofta s att folk kommer lite sent till en presskonferens och s gr hr. Det har blivit mer och mer s. I Kanton s r det inte s mnga fretag som gr ngonting i Kanton nnu s det r nd liksom wow, idag r det presskonferens och de kommer tidigt och de sitter dr och sdr. I Peking r det lite mittemellan, de r allmnt lite mer artiga i Peking faktiskt. Det r lite attityd i Shanghai faktiskt. Man r inte sdr jttevnlig och ppen utan man ska ha sin stil och man ska vara lite sdr. S att det r vl det. Lite trista grejjer i Kina r vl att det r fortfarande mycket pengar under bordset, man betalar lite fr att f in ngonting och sdr. Men det mste inte vara s tror jag. Om vi gr ett event om vi vill att folk ska komma s ger vi dem taxipengar fr att komma. Det r delvis muta och delavis att de faktiskt inte fr betalt frn sin

95

EDUCATING CHINESE CONSUMERS

HOLMSTRM & SPJUTH

tidning fr att g p presskonferensen. Men visst vi ger dem mer n vad de lgger ut. De kan ka buss ocka s lgger de ut fyra kronor och vi ger dem 200 s att visst. Men det r ungefr s att man mste jobba s. Ger vi dem inte det kommer de aldrig att komma igen. Men dremot om vi skickar ut releaser eller om vi jobbar med features eller s dr s betalar vi dem inga pengar. S man mste inte jobba s faktiskt. Men det r vl ocks en sak som r annorlunda. Tror du kommer att ebba ut eller inte? Nej, men jag tror dremot att det kommer bli mera liksom marknadsanpassat. ven i Sverige, kanske inte s mycket i Sverige men i andra delar av Europa, s r det ju fortfarande viktigt att om man annonserar i en tidning s r det ltt att f artiklar dr. Eller om man gr ngon lsartvling, eller om man gr nnting, man sponsrar deras lsarfest eller nnting, p ngot stt gynnar dem ekonomiskt s pverkar det hur ltt det r de kommer att skriva om en eller inte. Och de hller p att bli mer s i Kina ocks. Det handlar fortfarande om pengar men man ger inte pengarna till journalisten utan man ger dem till tidningen eller s. S jag tror att det kommer g mer t det hllet faktiskt. Och det r redan s, om man tittar p modetidningar, livsstil, IT, bilar. Man mste p ngot stt, eller det r i alla fall bra om man kan fundera ut ngra stt att gynna dem ekonomiskt. Man behver inte gra det varje vecka men ngon gng per r, nnting. Att det har en positiv instllning till en sjlv som mrke. r det skillnad p de vsterlndska tidningar som har kommit in som Vouge och ELLE de..? De r ju s redan, men sen s Vouge, skillnaden dr r ju att de r nnu mer professionella. De vet hur de vill positionera sig sjlv som tidning och vilka de vnder sig till och drmed vet dem vad skriver de om, vad skriver de inte om. Har ni haft ngonting i ngon av de nya? Ja, det har vi. Jag kommer inte ihg exakt var men det har vi. ven om det r vldigt svrt att f tv sidors uppslag i Vouge, det kan man nstan inte om man inte ligger verkligen rtt i tiden eller har ngonting som de nd hade tnkt skriva om sdr. Men det kan man f i andra tidningar lttare. Och det r till och med svrt i Vouge att f liksom om en liten blnkare om vad som har hnt om det r inte rtt mrke eller rtt typ av mrke som de skriver om. Men man kan titta p Vouge ocks det har ju riktigt, de har ju, dr ute lg ju liksom vrspecialen p jag tror vskor eller skor. De har ju en sn dr insert varje gng, en shoppingguide. Dr ser man ju att det r Ferragamo, det r, vad dfet r fr olika mrken, Gucci och allting som kostar, en vska kostar vl alltifrn 15 000 till 40 000. Men helt pltsligt kommer det in en Miss sixty som inte alls r rtt, eller det kommer in ngon nnu b-igare, som p skor. Det finns ett kinesiskt mrke som heter Ahi? och det har annonserat i Vouge. Konstigt! S drfr finns de med ocks, fast deras skor kostar bara 890 bredvid Ferragamo eller XXX som kostar ett par tusen i alla fall. S visst man kan g den vgen ven fr Vouge. Men dremot om man skriver om jag vet inte vad, de dr kinesiska gympaskorna jag berttade om, de kommer inte in i Vouge ven om de annonserar. De kanske inte ens fr annonsera i Vouge, jag vet inte. Men dremot vissa av de kinesiska tidningarna de r inte lika hrda p vad de str fr, naturligt stt s kanske de inte heller kan vara lika krsna p vem som fr annonsera hr och inte fr annonsera och vad vi skriver om och vad vi inte skriver om. De fr lite mer ta vad de fr ven om de har en, vissa kriterier om vad de skriver om och inte skriver om. Men Vouge de r ganska hrda. De r hrda av en annan anledning ocks. Jag tror Vouge, deras editorial de sitter i Kina men till exempel jag tror att ELLE och Cosmopolitan, deras, den som har sista ordet om allt editorial content sitter fortfarande i Hong Kong tror jag. Och drfr spelar det ingen roll om journalisten i Kina, hur bra relationer man har med den personen eller inte, fr den personen kan fortfarande inte bestmma om det hr kommer med eller inte. Ok, hon eller han kan bestmma om de kommer p intervjun, det kan de sga fast om det kommer i tidningen eller inte det vet de inte. Och det r ju lttare fr de kinesiska fr dr kan man ju bygga upp relationer med editor eller vem det nu r s man vet att det hr kommer i alla fall komma med, det vi gr. Var det ett svar p frgan? Ja, verkligen..Ja, jag vet inte var det ngot annat som vi vill frga mer. Det knns bra. Vi r jttenjda. Tack s mycket.

96

You might also like