Weibo social media crisis learning from Sesderma in China
With almost 400 million monthly active users by the end of 2017 on Weibo, without a doubt, every foreigner brand would consider Weibo as an important social media channel to build up awareness in China. We can imagine if one brand could appear on the top search topics, it may be because they have successfully created a big issue, but on the other hand, the popularity maybe also comes from unexpected negative feedbacks which a small issue could turn into a serious PR disaster in the blink.
We can always learn from other’s case and prepare tailored social media crisis management for our own brand in advance, and this time we learn from Sesderma’s experience.
Sesderma hit No.27 on the Weibo top search topics
On the daily social media monitoring, we found that Sesderma, the well-known Spanish dermocosmetics brand was on the hot search list on Weibo, but they were dealing with the crisis out of a careless mistake in China. Their account has more than 7,000 fans, but the brand name search volume was 14 times more, we can assume the negative news brought in lots of people who aren’t familiar with the brand Sesderma before. What caused the PR crisis exactly? Let’s get back to where the issue started.
2/17 12 pm: Sesderma’s controversial post
Their intention was to educate the fans how to apply their product for a better result and created the post in a soft and self-deprecating way, but the critical part is they said “you” are poor and “you” don’t have money, so they misled the perspective and turned out to discriminate against the fans. Unfortunately, since then, the post started to accumulate passive comments in a quick-speed.
2/18 6 am: One user posted the negative feedback about Sesderma’s post (share:2,865 / comments:514 / likes:3,477)Not only the improper content, but the way Sesderma managed the issue. The user found Sesderma directly deleted the original post and without responding to fans’ anger. The post just went viral afterward, and it easily pushed Sesderma on the hot search list on Weibo.
2/18 8 pm: Sesderma apologized sincerely to their fans
After waiting for more than one day, Sesderma had an official post to apology for their careless mistake. According to the comments, most of the fans could accept and left their support notes, but Sesderma continued to occupy the hot search topic position, until late afternoon on 2/20. Social media crisis comes easily, but it’s definitely hard to disappear.
3 takeaway to prepare crisis management on social media in China
1/Respond timely and as long as the mistake is confirmed, a sincere apology and open communication is needed
In many cases, actually, the crises are avoidable, if we can manage the potential crisis timely, and organize the crisis management team if necessary with members from involved departments, to create a open dialogue with fans within 24 horas.
2/Self-deprecating humor is easily taking over on social media, but extra care and attention for this kind of content is crucial
Sometimes self-deprecating humor is delicate, it’s better the content can be viewed and checked by different people to taste the respond. And keep the first person perspective clearly through whole content, as we can see in the Sesderma’s case, as long as you change the perspective, self-deprecating post could backfire quickly.
3/Chinese local team represents the foreign brand in China, so it’s important to work closely with headquarter to deliver the brand value
Even though many foreign brands have local subsidiary or agency to execute all the Chinese market marketing communications in China, but work integrally and have regular meeting is essential to keep both parts on the same track towards the ultimate success.
If you are interested in developing business in China through online marketing and e-commerce, 2 Open are glad to listen to you, please feel free to contact us by e-mail: INFO@2OPEN.BIZ, or just leave us a message below, we will get back to you as soon as possible.
Is Sina Weibo On The Way Out?
There are plenty of Social Media platforms in China: while a few achieve great success, many succumb to a highly competitive scenario.
Result of its dynamism, it is essential to keep attention on the changes that China faces in the digital world.
From 2 Open, we have prepared a brief introduction about Weibo´s current situation.
Our goal is to give you some tips to fully understand what is going on with one of the biggest Chinese Social Media.
Do not hesitate to contact us for a more thorough analysis!
Weibo is a Social Media platform to produce, share and find out Chinese-language content.
As a leading platform, provides an easy way to express in real time and interact with people and corporations.
Its importance is not only due to its capacity to be an official/unofficial news source, but also because it allows people to express themselves in a public way.
The doomsayers come into the picture
Currently, Alibaba is the biggest Chinese e-commerce company: it provides C2C, B2C and B2B sales services via web portals, plus electronic payment services, a shopping search engine and data-centric cloud computing services.
Three years ago, Alibaba bought 18% stock of Weibo. Since then, several media have speculated that Weibo or even Sina might be acquired by Alibaba in a short time.
Encouraged by the rise of Wechat, many marketers have predicted the fall of Weibo. Well, the latest Earnings report proves they were wrong.
Is Weibo on the way out? Let the Earnings speak the truth
According to official Earnings Report of 2016 Q2 from Sina Weibo, the Net profit of 25.9 million dollars (net revenues of $ 146.9 million) increased 516% compared to the same period last year.
Moreover, Weibo 2016 Q2 data shows the Total revenue of Weibo is 146.9 million, including 127.2 million revenue from Advertising business, value-added services $ 19.7 million for value-added services.
Let’s review the users’ data on Weibo now
Monthly Active Users –MAU- is 282 million, increase 33% compared to the same period of last year. In addition, Daily Active Users –DAU- is 126 million with 36% increase compared to same period of last year.
Is noteworthy that 89% of them are mobile users.
The progress is closely related to their own media advantage
Three years ago, relying on its social communication advantages, Weibo attracted $ 600 million of Alibaba, while became an effective channel for celebrity campaigns, events, marketing and other commercial activities.
After that, Weibo focused on the advertising model. At the end, it decided to put aside Alibaba and manage the business alone.
In 2016 Q1, advertising investment from small and medium enterprises increased 147%. The quantity of SME’s and self-service advertisers reached 830K with 25% increase compared to previous quarter.
In 2016 Q1, investment in small and medium advertising revenue grew 147%, the number of SMEs and self-service advertisers reached 830,000 and a 25% increase the previous quarter.
Why both SMEs and big brands value Weibo a lot?
Both leverage it as an important channel frequently, specially because:
- Increase of traffic and users with 282 million MAU
- Optimized Algorithm of Ad Platform
- Active Internet Celebrities
- Live－streaming
The outbreak of short videos
We should add that speaking of its development path, the outbreak of short videos is also a milestone of growth of Weibo.
According to the 2016 Q2 Earning report, the playback amount of short videos on Weibo has increased 200%.
Meanwhile, the Internet celebrity economy is rapidly booming. Based on short videos, live-streaming broadcast and e-commerce, Weibo occupies the core position of social media with its incredible social power.
Margin improvement for future
The operating leverage will keep being prominent in the future. Based on the non-GAAP, the operating Margin rate of Weibo was 23.6% in the second quarter.
It is expected that the Weibo´s operating Margin rate could reach 25.2% in the third quarter, 23.4% in 2016 financial year, and 28.7% in 2017 financial year.
After seven years, Weibo proves to the world its strength and influence.
Do you still think Weibo is on the way out?
Our Digital Marketing and Ecommerce Agency have the experience of a team dedicated to know in depth the Chinese Social Media.
If you are looking to push your sales in China, do not hesitate to contact us.
Moreover, if you are interested in receiving to your mail the latest trends of Chinese Social Media, please suscribe to our monthly Newsletter!
This article has been edited by Paula Vicuña, from 2 Open.
How to Acquire Chinese Tourists through Digital Marketing
It is almost August and tourists are everywhere. From 2 OPEN we are pleased to give you some basic steps to acquire Chinese Tourists through Digital Marketing.
Since 2013, the number of Chinese outbound travel population and tourism consumption both already ranked the world’s first.
In the next few years, Chinese outbound tourism consumption market will continue to maintain high growth speed: 174 million Chinese people will choose to travel abroad, and the amount of consumption will be around 264 billion US dollars in the year 2019 by estimation.
Chinese tourists has become the “cash cow” of global travel industry
This prosperity is due to the increase of urban population and disposable income, the rise of the middle class, RMB appreciation, the gradually liberal visa policy and the increase of international flight routes have given rise to the empowerment of as a yet undeveloped sector.
What kind of travel products do Chinese tourist usually choose when travelling?
When travelling, Chinese tourists mainly choose to travel with tour guide, both group package and/or flight + hotel. Even if travelling without guidance is still scarcely used, it is a fast leading trend and a great opportunity of future.
Which Channels do Chinese tourism use to purchase travel products?
Even if traditional travel agencies are still the most popular, every day more Chinese opt to book though Online travel agencies, such as Ctrip and Qunar. It is highly likely that its importance grow each year.
How Chinese travelers spread their feeling about their country-destination?
The consumption of Social Networks in China is massive. Either through posts or instant messaging, the power of “Word of Mouth” is overwhelming.
Wechat and Weibo play a very important role in choosing destinations for Chinese people.
From 2 Open, we suggest you paying attention to online platforms in any plan to approach the Chinese market.
Which channels do Chinese people use to search touristic-information?
Either through an Agency´s Website or through Social Media, Chinese travelers love using new technologies to discover places, compare tariffs and share their experiences abroad.
Once again, the power of the main Social Media Platforms in China –Wechat and Weibo– is increasing each year.
What do Chinese travelers suggest for information channel?
The most expected information search channel for Chinese travelers is to set up Chinese official website, followed by WeChat and Weibo Chinese accounts set-up.
So, What can you do to attract more potential Chinese tourist to your destination?
From 2 OPEN we suggest you some ideas before starting your approach to China:
- Build a Website:
To set up a Chinese Website, this must be hosted in China (-cn domain). It would be necessary to make it consistent with Chinese search engine´s standards and be entirely written in Mandarin.
From 2 OPEN we strongly suggest you to take advantage of new technologies –Big Data- to improve the user experience and target the right audience.
- Search and Display Marketing:
Baidu, the biggest Chinese search engine, is essential on any approach to Chinese digital market. Your site should be well-ranged on Baidu´s search engine to let Chinese tourist find you.
In 2 OPEN we have the expertise to deal with SEO or SEM campaigns, in order to help you to gain visibility and target potential customers.
- Social Media:
Social networks are the most used channels in China. Try to attract users to your official accounts –WeChat and Weibo– by posting travel news and proposals to people. Start your Social Media plan with our help!
- Key Opinion Leader:
To build a proper networking with Key Opinion Leaders on Social Networks can make the difference in China, and they are a very effective way to promote products and services.
- Cooperate with a third-party agency:
Online Travel Agencies -like Ctrip– provide a package of services include tickets, hotel, tourism products and car rental etc. Cooperate with them will bring you huge traffic and a great chance to sell. In addition, Online Travel Agencies let customers interact each other about trips, top destinations and advices.
From 2 Open, we encourage you to take an advantage of their social marketing impact by improving your content marketing.
- O2O:
In last year, China tourism O2O industry achieved great improvement. The relationship between resources and platforms become closer under the impetus of capital. Wheather through Online platform + offline resource or Online channel + offline channel, both can make the difference.
- Offline Event and Public Relations:
Traditional offline advertisement promotion can be useful in China, but very expensive. Combine Online and Offline Marketing can be the top-solution for your company.
We hope this information has been valuable and helpful to you, and we encourage you to start your approach to the huge Chinese tourism market. With our help, your company could take the great advantage online marketing offers!
Have a look to our services!
This article was edited by Paula Vicuña, from 2 OPEN.
L’Oreal Digital Marketing Campaign in China
In the first half of 2015, L’Oreal’s financial statement reported revenues of 12.82 billion euros worldwide. In comparison with 2014, there was an increase of 14.7%, which is the fastest growth that the company has had in the past 20 years. Its digital marketing campaign was not the exception, with an outstanding 40% increase in online sales, exceeding 1 billion euros; it represented 5% of the company’s total turnover strengthening its position in the online market.
Nowadays, in the cosmetic & beauty industry, 70% of customers search products online before they actually buy them, which means that social media must play a big role in this. Why? You might be wondering, well, the importance of knowing consumer’s needs and preferences enables companies to come up with tailored ads and maximize their marketing budget. Many industries have transitioned from the classic marketing model into its modern version to further understand consumers and optimize results.
It seems that the upcoming era is digital, the society now is constantly connected with their mobile phones, and people are interacting on social media all the time. Most Chinese people love to share moments of their daily life via Weibo or Wechat, these social mobile applications gather a lot of Chinese young people who are potential online buyers, this is one of the main reasons why this new consumption model results so profitable.
Taking all of this into account, L’Oreal, the global beauty brand, keeps track of trends and maintains strong competence in the Chinese online market. The business credo for the marketing industry “where are the consumers, where are we” is practiced well by L’Oreal. In fact, in the digital marketing revolution, L’Oreal is not only expanding its e-commerce channels, they also apply a complete strategy to digital marketing.
All the product and services have to be digitalized
For instance, on the CES conference in Las Vegas, L’Oreal released a patch for sun-induced skin damage – My UV Patch, helps users track real-time ultraviolet exposure damage on the skin with the help of an App. In addition, L’Oreal has also launched a mobile App called Makeup Genius. The App can help users find their own appropriate makeup. Most Chinese people are shy and they do not dare to try exaggerated makeup, with this App users can try hundreds of makeup options and share on various social platforms. In the future, L’Oreal will try to launch more service-oriented App.
-L’Oreal APP for IOS
Digital involvement into every step of decision-making
In the buying decision process, customers experience 4 steps: identifying, considering, purchasing, and sharing. L’Oreal gets involved in every step of the process. For brand awareness, they launched a video advertisement on the entire media platform of Weibo and Wechat. For the decision-making stage they issued a series of makeup tutorial videos on Youku and finally let the users use social media to share their purchasing experience. With this, the entire consumer decision-making process is digitized.
-L’Oreal official account on Weibo and Wechat
Take this case for example, in the 2015 Cannes Film Festival; L’Oreal launched a video advertisement on Wechat, where L’Oreal’s stars would post their pictures and voice message saying “I am in Cannes, will you come? ” and a link to L’Oreal’s e-commerce page. Through this event L’Oreal attracted a lot of fans and potential customers, and the brand’s social influence was digitalized.
-L’Oreal Cannes Event on Wechat
All brands on digital platforms
Based on the first two points, L’Oreal Group including Lancome, Maybelline, L’Oreal Paris and other brands, try to position themselves, as much as possible, on various digital platforms, that is, “where are the consumers, where are we”. Since, nowadays, almost all of the customers are online, L’Oreal has to be searched and discussed as much as possible by customers in order to gain more popularity in the digital world.
-L’Oreal brands on Weibo
When analyzing L’Oreal’s digital marketing strategy, it is worth noticing that this giant enterprise takes digital marketing as a key element of responding to the rising demand among beauty consumers. The O2O (online-to-offline) model gradually drives the enterprise transforming it into a new business model. Digital marketing could not only develop a new market but also help to create a new CRM (Customer Relationship Management) system for other companies. We believe in the future and Chinese digital marketing will become more and more important in the following years.
Have you learned Chinese yet?
If you have any questions or require any information about our services, please do not hesitate in contacting us, our group of specialists will happily assist you.
This article was edited by Andres Arroyo Olson from 2Open.