September 13, 2011

SCOTT GALLOWAY NYU Stern

China IQ

DOUG GUTHRIE The George Washington University School of Business
© L2 2011 L2ThinkTank.com

Friday, October 14 CEIBS, Shanghai
China Europe International Business School Pre-event reception:

HOSTED BY:

Thursday, October 13 Four Seasons Shanghai

For an invitation & more information, contact:

CLINIC

Joseph@L2ThinkTank.com

CORPORATE PARTNERS:

The Social Graph: China
L2’s inaugural event in China will probe the underpinnings, platforms, and best practices of social media in China.
Year upon year of double-digit economic growth and urbanization has armed tens of millions of Chinese consumers with increasing disposable income and a voracious appetite for luxury goods. In 2009, China surpassed the United States as the world’s second-largest luxury market, trailing only Japan. However, while several prestige brands have been operating in China for almost 20 years, most are still trying to determine how to best tap this enormous but complex opportunity. The social media landscape in China is dramatically different from other markets. Industry leaders like Facebook, Google, YouTube, and Twitter are non-factors in the market, requiring even the most digitally adept brands to fundamentally adapt their social media strategies to local platforms like Baidu, Youku, Sina Weibo, and RenRen. The L2 China Clinic will provide a framework for thinking about the overall opportunity in China for prestige brands. Speakers will explore the key digital players and strategies that lead to success, as well as findings from the 2011 L2 Prestige 100®: China IQ.
MEDIA PARTNERS:

工学坊
GONGXF.COM

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China:

The greatest opportunity for prestige brands in a generation
Tomorrow Belongs to Me Over the next 15 years, the global addressable market for luxury goods is expected to grow by 600 million
consumers, provoking growth forecasts of 2.2 times GDP.1 Much of this growth is projected to come from one market: China. In 2000, the Chinese market accounted for a fraction of luxury sales globally, however torrid growth means in 2015, China will likely overtake Japan as the world’s largest luxury market.

McKinsey reports that 73 percent of Chinese luxury consumers are under the age of 45, and upwards of 45 percent are under the age of 35, suggesting that the majority of prestige purchasers are digitally native.3 In the U.S., the average female prestige consumer registers household income of $150,000 and spends $3,000 annually on handbags. In contrast, the average female prestige consumer in China makes $18,300 (125 RMB) and spends $2,000 annually on handbags.4 Often these purchases occur after two to three months of research and consideration, most of it done online.

Forget What You Know
The algorithm for success in China is different:
• Less about a 50-something millionaire, more about a 30-something, upper middle class consumer • Less about retail in Tier I cities, more about new modes of distri1. McKinsey & Company, “Understanding China’s Love for Luxury”, March 2011. 2. Ibid. 3. Ibid. 4. Pao Principle, 2010. 5. Bain & Company, “China’s Luxury Market Study 2010”, November 2010.

The fastest growing luxury channel(s) in China: Paris and New York
Increasing wariness of counterfeit merchandise, coupled with significantly lower prices abroad, has led to 56 percent of Chinese luxury purchases occurring outside of China, suggesting that a brand’s digital marketing investments on the mainland drive sales in Shanghai and Beijing... and New York, Paris, and Hong Kong.5

bution in Tier ll and lll cities • Less about print, more about mobile and emerging platforms • Less about “expert” editorial, more about peer reviews, as 60 percent of consumers indicate that the Internet is one of the primary sources for information on luxury goods (up from 30 percent in 2008)2

Digital Is Different
Not a single global Internet leader is number one in China. The proliferation of SNS platforms, BBS sites, and other digital channels present a challenge to marketers. The environment favors brands

© L2 2011 L2ThinkTank.com

3

Want to know more about your brand’s China IQ? CONTACT US

that adopt nimble, platform-agnostic digital strategies that can be adapted to multiple channels. A testament to the pace of change, Chinese microblogging platform Sina Weibo was not analyzed in our May 2010 study. Launched in August 2009, the platform has added more than 10 million users per month and recently topped 200 million registered accounts. Sina Weibo has become the platform of choice for prestige brands—57 percent of the brands in the study now maintain an official presence.

Internet Tidal Wave
INTERNET USERS IN THE WORLD’S LARGEST LUXURY MARKETS 2010 vs. 2015
(in Millions)

800
= CHINA = U.S. = JAPAN = U.K. = FRANCE

740

China IQ = Growth
Our thesis is that success in the world’s fastest-growing prestige market is inextricably linked to digital competence. This study attempts to quantify the digital competence in China of 100 iconic brands (The Prestige 100®). The majority, 91, compete globally, while nine are of Chinese/Hong Kong origin. Our aim is to provide a robust tool to diagnose digital strengths and weaknesses and help managers achieve greater return on incremental investment. Like the medium we are assessing, our methodology is dynamic, and we hope you will reach out to us with comments that improve our approach, investigation, and findings. You can reach us at scott@stern.nyu.edu and guthrie@gwu.edu. Sincerely,
Internet Users (in Millions)

600

TOTAL:

450

TOTAL:

447
43 50 97

401
39 44 94

400

200 224 257

SCOTT GALLOWAY

DOUG GUTHRIE

Founder, L2 Clinical Professor of Marketing, NYU Stern

Dean, The George Washington University School of Business

0

2010

2015
Source: eMarketer, April 2011.

© L2 2011 L2ThinkTank.com

4

Want to know more about your brand’s China IQ? CONTACT US

Addressable Market for Luxury Brands
POPULATION WITH INCOME > $30,000 USD
(1995-2025 Estimates, in Millions)

1,500
= REST OF THE WORLD = CHINA = JAPAN = EUROPE = U.S.

+600 million
(2010-2025)

1,200

Population (in Millions)

900

+300 million
(1995-2010)

600

300

0
199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

202

1

202

2

202

3

202

4

202

5

Source: Goldman Sachs, March 2011.

© L2 2011 L2ThinkTank.com

5

Viral Videos 110-139 GIFTED Brands are experimenting and innovating across site. Number of Uploads. Programs. Chinese social media efforts complement broader digital strategy. Interaction Rate • Tencent Weibo: Presence. Subscriber Growth. 15% MOBILE: Compatibility and marketing on smartphones and other mobile devices. Web Authority. does not translate to the Chinese consumer. community size. Subscriber Growth. Programs. Site content is innovative and optimized for the Chinese consumer. Popularity. 30% SOCIAL MEDIA: Brand presence. mobile. Community Size. 90-109 AVERAGE Digital presence is functional yet predictable. Functionality < 70 FEEBLE Investment does not match opportunity.Want to know more about your brand’s China IQ? CONTACT US Methodology 40% SITE: Effectiveness of brand site. Promotions 70-89 CHALLENGED Limited or inconsistent adoption of mobile and social media platforms. Functionality • Android & Ovi Applications: Availability. Content. Digital presence is consistent with brand image and larger marketing efforts. Brand experience seamlessly extends across mobile platforms. • Search: China Site Traffic. Interaction Rate SNS: • Renren: Presence. off-site brand presence. © L2 2011 L2ThinkTank. BBS. Community Size. Popularity. 15% DIGITAL MARKETING: Marketing efforts. Interaction Rate • Kaixin: Presence. content. Community Size. Interaction Rate • Douban: Presence. Language. Number of Uploads. Functionality. & engagement on major Chinese social media platforms. Efforts are often siloed across platforms. Transaction Capability • iOS Applications (iPhone & iPad): Availability. Viral Videos • Tudou: Views. Taobao and Jiepang Activity • Brand Buzz: Mentions and Video Uploads on Chinese Social Platforms • Email: Frequency. and social platforms. FUNCTIONALITY & CONTENT: 70% • Site Technology: Load Time. Chinese Social Media Integration. Community Size. SEO and SEM on Baidu and Google • Advertising & Innovation: Recent Brand Initiatives. • Mobile Site: Compatibility. Programs. Programs. Programs. Hosting Location • Site Navigation & Search • Product & Promotions • E-Commerce • Chinese Social Media Integration • Customer Service • Account Services • Content Localization China Digital IQ Classes BRAND TRANSLATION: 30% • Site Aesthetics • Messaging & Imagery • Chinese Relevance & Translation IQ Range IQ Class 140+ GENIUS Digital competence is a point of differentiation. MICROBLOGGING: • Sina Weibo: Presence. Community Size ONLINE VIDEO: • Youku: Views. Site lacks inspiration. and visibility on search engines.com 6 .

great translation of a global campaigns for the Chinese market C70 Sina Weibo challenges consumers to design the plot for the next Volvo commercial Local e-commerce launch caters to consumers with samples and gift-with-purchase offer. From Jiepang VIP guest passes for Beijing grand opening to Christopher Bailey soundtrack on Youku. games. Burberry claims the fashion crown From “beasts to joy”—sheer social pleasure. downloads and events.com Luxury’s digital darling doesn’t disappoint. however could be updated more frequently Launched sampling program through popular fashion BBS communities Only Lady and Metroer VOLVO BENEFIT COSMETICS CADILLAC ESTÉE LAUDER LAND ROVER MERCEDES-BENZ PORSCHE FERRARI INFINITI Automobiles Beauty Automobiles Beauty Automobiles Automobiles Automobiles Automobiles Automobiles HERBORIST Beauty © L2 2011 L2ThinkTank. Q&A.Want to know more about your brand’s China IQ? CONTACT US Brand Ranking Rank Brand 1 2 3 4 5 6 6 8 8 10 11 12 13 AUDI BURBERRY BMW Automobiles Beauty Champagne & Spirits Fashion Watches & Jewelry Category Automobiles Fashion Automobiles China IQ Class 170 Genius 157 Genius 155 Genius 133 Gifted 127 Gifted 124 Gifted 124 Gifted 122 Gifted 122 Gifted 112 Gifted 111 Gifted 110 Gifted 108 Average Description Innovation in technology: maintains presence on six different social media sites in addition to its own OurAudi. Sina Weibo and Kaixin “Benefit Beach Honey” contests delight Recently released Route 66 short film starring Karen Mok across site and social media EL-Lady BBS includes videos. and link to purchase “The Evoque Effect” sets the standard for multichannel digital campaigns SLK Mask Party contest provides winners tickets to China Fashion Week and site visitors an opportunity to create their own virtual mask Innovative comparison tool and stunning microsites for each model are the engine of their online presence Sina Weibo fans earn tickets and tees for Ferrari Racing Days in Shanghai Online owners club provides access to forums.com 7 .

000 users participated in Renren “Knock Out the Old Me” campaign in early 2011 Live-streamed summer men’s fashion show exclusively through iOS and Android platforms More that 180. Douban.Want to know more about your brand’s China IQ? CONTACT US Brand Ranking Rank Brand 13 15 15 15 18 19 20 21 22 22 24 25 26 SWAROVSKI CARTIER GUCCI LANCÔME LOUIS VUITTON CHANEL KIEHL’S CHRISTIAN DIOR CLINIQUE DOLCE & GABBANA SK-II OMEGA M•A•C Automobiles Beauty Champagne & Spirits Fashion Watches & Jewelry Category Watches & Jewelry Watches & Jewelry Fashion Beauty Fashion Fashion Beauty Fashion Beauty Fashion Beauty Watches & Jewelry Beauty China IQ Class 108 Average 107 Average 107 Average 107 Average 104 Average 103 Average 102 Average 101 Average 100 Average 100 Average 98 Average 96 Average 95 Average Description Dedicated channel on PPTV sparkles with live event feeds Love microsite is shareable across Kaixin. but Sina Weibo hasn’t been updated since October 2010 Voyages microsite and Jiepang tie-in promote exhibit at National Museum of China Chinese iPhone app provides access to Chanel News content and fashion videos Dedicated Sina blog profiles local influencers Lady Blue Shanghai film disappoints with only 146 views on official Tudou page More than 145.000 user wishes have been submitted through the “Start Early” microsite for a chance to win gifts and samples Resting on the laurels of China legacy.com 8 . and Sina Weibo Gucci Style iPhone app transcends language barrier Rose Beauty continues to score points. dedicated Youku page and well-configured watch finder aren’t enough to keep time Dynamic product recommendation engine transcends borders © L2 2011 L2ThinkTank.

product videos and a members-only zone Yulu campaign features 12 mini films highlighting local personalities Generic site fails in pursuit of perfection Mobile optimized site features the men’s collection Diane’s personal Sina Weibo account gets a boost from media mogul Hong Huang China-specific iPhone app cross-promoted on site 33 33 33 36 37 38 39 ACURA CHOW TAI FOOK JAGUAR GUERLAIN HUBLOT CLARINS YUE-SAI Automobiles Watches & Jewelry Automobiles Beauty Watches & Jewelry Beauty Beauty Creative promotions on Sina Weibo drive to the dealership Hong Kong jeweler showcases dedicated Taobao shop Live-streamed a press conference announcing its new models.5 million views © L2 2011 L2ThinkTank.Want to know more about your brand’s China IQ? CONTACT US Brand Ranking Rank Brand 27 28 28 30 30 30 HENNESSY JOHNNIE WALKER LEXUS COACH DIANE VON FURSTENBERG LONGINES Automobiles Beauty Champagne & Spirits Fashion Watches & Jewelry Category Champagne & Spirits Champagne & Spirits Automobiles Fashion Fashion Watches & Jewelry China IQ Class 94 Average 91 Average 91 Average 90 Average 90 Average 90 Average 89 Challenged 89 Challenged 89 Challenged 88 Challenged 87 Challenged 86 Challenged 83 Challenged Description China-only Hxindian microsite hosts online contests.com 9 .000 entrants Dedicated Youku page for eight episode miniseries directed by Gil Wadsworth received more than 1. but needs to push the accelerator on its digital efforts 1.570 participants on the Rouge Aomatique microsite indicates the brand is puckering up to the Chinese market Teaming with Formula 1 racer/blogger Han Han to create limited edition watch and accompanying Sina Weibo page “Looking for V-Girl Contest” in search of perfect face shape received more than 7.

com 10 .000 strong. but brand is lost on Baidu to Chinese consumers Translated microsite allows Chinese consumers to celebrate the 80th anniversary of the Reverso collection Global video contest boasts dedicated pages on Douban and eYeka Single post on Sina Weibo account suggests “What Makes Love True” site will be launched in September Exhibition at National Museum of China has no digital footprint Interactive IWC forum is mobile-optimized but available only in English Sina Weibo following more than 400.000 visitors Almost 9. BULGARI IWC SCHAFFHAUSEN IDO CALVIN KLEIN L’OCCITANE Automobiles Beauty Champagne & Spirits Fashion Watches & Jewelry Category Fashion Beauty Automobiles Watches & Jewelry Fashion Watches & Jewelry Watches & Jewelry Watches & Jewelry Watches & Jewelry Watches & Jewelry Watches & Jewelry Fashion Beauty China IQ Class 82 Challenged 82 Challenged 80 Challenged 80 Challenged 80 Challenged 79 Challenged 79 Challenged 79 Challenged 78 Challenged 78 Challenged 77 Challenged 76 Challenged 76 Challenged Description Chloé’s short-lived Chinese-language blog live-streamed runway shows and garnered more than 40. decicated Sina Weibo account provides customer service CK One virtual box extends life of event One of three in Index with e-commerce enabled mobile app © L2 2011 L2ThinkTank.000 votes were cast in the search to find the best beauty expert on the brand’s 13.660 member BBS Strong configurator. but available only in English Must spend time on more than a mobile-optimized China site and a Youku channel if it wants to raise its profile E-commerce enabled iPhone app features city guides and taxi cards for Western visitors.Want to know more about your brand’s China IQ? CONTACT US Brand Ranking Rank Brand 40 40 42 42 42 45 45 45 48 48 50 51 51 CHLOÉ SHISEIDO MASERATI ROLEX SHANGHAI TANG JAEGER-LECOULTRE RAYMOND WEIL TIFFANY & CO.

000 visits E-commerce pioneer with Emporio Armani launch. but not much else © L2 2011 L2ThinkTank. but not placing enough attention on its overall strategy Brand-approved Taobao shop showcases eight different models but has yet to post a sale It’s hard to “contact us” when info is only for North America 64 64 HUGO BOSS MONTBLANC Fashion Watches & Jewelry Online footprint pales in comparison to monstrous brick-and-mortar presence Huge SNS buzz. but fails to innovate elsewhere Site is slow to load and lean on Chinese customization Placing in-video ads through Youku.Want to know more about your brand’s China IQ? CONTACT US Brand Ranking Rank Brand 53 54 55 56 56 56 59 59 59 62 62 AUDEMARS PIGUET RÉMY MARTIN PANDORA LANEIGE LUK FOOK PIAGET ARMANI BOTTEGA VENETA FENDI LAMBORGHINI ROLLS-ROYCE Automobiles Beauty Champagne & Spirits Fashion Watches & Jewelry Category Watches & Jewelry Champagne & Spirits Watches & Jewelry Beauty Watches & Jewelry Watches & Jewelry Fashion Fashion Fashion Automobiles Automobiles China IQ Class 75 Challenged 74 Challenged 73 Challenged 72 Challenged 72 Challenged 72 Challenged 71 Challenged 71 Challenged 71 Challenged 70 Challenged 70 Challenged 66 Feeble 66 Feeble Description Royal Oak Offshore collection microsite is buttressed by Chinese translation “Real Man” video contest via Youku encourages user-generated video from macho entrants Limited Chinese site content leaves a lot still trapped in the box Café Laneige online community enhances interactivity Faulty store locator is limited to Hong Kong site. but only brand to support Taobao plug-in on homepage Official Sina blog has registered only 5.com 11 .

too bad it isn’t in Chinese Sina Weibo alone is not going to move the needle Falling into fashion with global site redesign. not so much Day 8 blog available in Chinese. but site doesn’t support e-commerce Chopard Diary boasts strong content. Versace Fashion. noticeably absent from SNS First mover is one of few in Fashion to sell online Chinese golf fans can follow the action at the Ballantine’s Championship via online and mobile More than 9.com 12 .Want to know more about your brand’s China IQ? CONTACT US Brand Ranking Rank Brand 64 64 68 68 70 71 71 73 73 75 75 77 77 TAG HEUER VERSACE ALFRED DUNHILL BALENCIAGA BOBBI BROWN CHOPARD GIVENCHY MIU MIU PORTS 1961 BALLANTINE’S WULIANGYE DE BEERS FERRAGAMO Automobiles Beauty Champagne & Spirits Fashion Watches & Jewelry Category Watches & Jewelry Fashion Fashion Fashion Beauty Watches & Jewelry Fashion Fashion Fashion Champagne & Spirits Champagne & Spirits Watches & Jewelry Fashion China IQ Class 66 Feeble 66 Feeble 65 Feeble 65 Feeble 64 Feeble 63 Feeble 63 Feeble 62 Feeble 62 Feeble 61 Feeble 61 Feeble 60 Feeble 60 Feeble Description Tick tock—patience runs out waiting for site to load Versace Home is e-commerce enabled.000 members on site BBS April site relaunch included simplified Chinese translation Not much other than a Sina Weibo account with 30.000 fans and not a single post © L2 2011 L2ThinkTank. but only shareable via Facebook and Twitter July site launch fails to incorporate Chinese language version Users can tune into tips from experts on Sina Weibo.

digital fluency has yet to translate Lacks SNS presence and Chinese-specific content on its translated site Strong brand equity. but with limited visibility on Baidu. Sino efforts aren't any different Global e-commerce site ships to China. but consumers must be comfortable shopping in English One of two brands with mobile app for Nokia’s Ovi platform Supporting site info for “Craft of Chivalry” concert tour is first step Men’s runway at fashion week featured projections of Chinese landscapes. did content even reach Chinese consumers? Should read Louis Vuitton’s manual on courting China Company website has good localized Chinese content but limited interactivity beyond flash navigation U.Want to know more about your brand’s China IQ? CONTACT US Brand Ranking Rank Brand 77 80 80 82 83 83 83 86 87 87 87 90 91 HERMÉS MOUTAI (MAOTAI) PRADA VALENTINO ASTON MARTIN CHIVAS REGAL ERMENEGILDO ZEGNA MARC JACOBS MOVADO RALPH LAUREN VAN CLEEF & ARPELS PATEK PHILIPPE HARRY WINSTON Automobiles Beauty Champagne & Spirits Fashion Watches & Jewelry Category Fashion Champagne & Spirits Fashion Fashion Automobiles Champagne & Spirits Fashion Fashion Watches & Jewelry Fashion Watches & Jewelry Watches & Jewelry Watches & Jewelry China IQ Class 60 Feeble 58 Feeble 58 Feeble 56 Feeble 55 Feeble 55 Feeble 55 Feeble 54 Feeble 52 Feeble 52 Feeble 52 Feeble 51 Feeble 50 Feeble Description Offline innovation doesn’t translate online Eagerly awaiting impending BBS launch and reactivation of online e-commerce Luxury’s digital laggard. weak digital presence Rich site heritage content is tempered by poor load times © L2 2011 L2ThinkTank.S.com 13 .

artistry.Want to know more about your brand’s China IQ? CONTACT US Brand Ranking Rank Brand 91 93 94 95 96 97 98 99 100 MOËT & CHANDON VACHERON CONSTANTIN BELVEDERE VODKA MACALLAN YVES SAINT LAURENT DAVID YURMAN BACCARAT DOM PÉRIGNON VEUVE CLICQUOT Automobiles Beauty Champagne & Spirits Fashion Watches & Jewelry Category Champagne & Spirits Watches & Jewelry Champagne & Spirits Champagne & Spirits Fashion Watches & Jewelry Watches & Jewelry Champagne & Spirits Champagne & Spirits China IQ Class 50 Feeble 49 Feeble 46 Feeble 44 Feeble 43 Feeble 42 Feeble 41 Feeble 26 Feeble 24 Feeble Description Recent “Mr. and photo contest in English only Despite the iconic brand’s worst efforts. it still manages to gain some buzz on Chinese social media Compared to the global site. its digital presence not so much Flat © L2 2011 L2ThinkTank. the Chinese site has no luster Struggling to shine online China is in love with the brand. & Miss Moët” Sina Weibo contest suggests IQ is about to pop English-only watch configurator and absent concierge need resetting Facebook focus doesn’t help in the East Interactive elements not translated—blogs.com 14 .

retained their status. Burberry and Benefit Cosmetics. both launching e-commerce in the past 12 months and making significant investments in Chinese social platforms. Chinese-specific technology integration. More than two-thirds of the Prestige 100® posted a Challenged or Feeble IQ. Estée Lauder. Bulgari IWC Scaffhausen IDo Calvin Klein L’Occitane Audemars Piguet Rémy Martin Pandora Laneige Luk Fook Piaget Armani Bottega Veneta Fendi Lamborghini Rolls-Royce Volvo Benefit Cosmetics Cadillac Estée Lauder Land Rover Mercedes-Benz Porsche Ferrari Infiniti China IQ Distribution % OF BRANDS PER CHINA DIGITAL IQ CLASS: GENIUS 3% Audi CHINA IQ Burberry BMW >140 GIFTED CHINA IQ Herborist Swarovski Cartier Gucci Lancôme Louis Vuitton Chanel Kiehl’s Christian Dior Clinique Dolce & Gabbana SK-II Omega M•A•C Hennessy Johnnie Walker Lexus Coach Diane von Furstenberg Longines 110-139 9% AVERAGE 20% CHINA IQ 90-109 CHALLENGED Hugo Boss Montblanc TAG Heuer CHINA IQ Ermenegildo Zegna Marc Jacobs Movado Ralph Lauren Van Cleef & Arpels Patek Philippe Harry Winston Moët & Chandon Vacheron Constantin Belvedere Vodka Macallan Yves Saint Laurent David Yurman Baccarat Dom Pérignon Veuve Clicquot 70-89 31% Versace Alfred Dunhill Balenciaga Bobbi Brown Chopard Givenchy FEEBLE Miu Miu Ports 1961 Ballantine’s Wuliangye De Beers CHINA IQ Ferragamo Hermés Moutai (Maotai) Prada Valentino Aston Martin Chivas Regal 37% <70 © L2 2011 L2ThinkTank. the other three. and consistent translation. remained solidly in the top quartile. Audi and BMW. Brands that score well have developed transaction-oriented sites with superior customer service.KEY FINDINGS Want to know more about your brand’s China IQ? CONTACT US Key Findings In the Company of Genius Two of 2010’s five Genius brands. and Clinique. tailored content. New to the Genius and Gifted ranks. suggesting digital efforts in China remain nascent across the industry. The biggest differentiator between Genius and Gifted brands occurred across the Site dimension.com 15 . Lancôme. buttressing the notion that constant innovation and investment are requisites for digital success in this dynamic market. Acura Chow Tai Fook Jaguar Guerlain Hublot Clarins Yue-Sai Chloé Shiseido Maserati Rolex Shanghai Tang JaegerLeCoultre Raymond Weil Tiffany & Co. were among 2011’s biggest winners.

Want to know more about your brand’s China IQ? CONTACT US Top 20 Brands China Digital IQ Scores = BRANDS THAT RANKED IN THE SAME IQ CLASS IN 2010 & 2011 = BRANDS THAT RANKED IN THE TOP 20 IN BOTH 2010 & 2011 BUT CHANGED IQ CLASSES TIE 2010 Rank Brand IQ Class IQ Score Rank Brand 2011 IQ Class IQ Score #1 #2 #2 #4 #5 #6 #7 #8 #9 #10 #11 TIE Lancôme BMW Estée Lauder Audi Clinique Mercedes Benz Clarins Acura Cadillac Wullangye Lexus Infiniti Land Rover Moutai (Maotai) Cartier Porsche Herborist Christian Dior Louis Vuitton Tiffany Luk Fook Genius Genius Genius Genius Genius Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Average Average Average Average 167 157 157 150 146 138 137 130 124 121 119 118 118 115 114 113 112 109 108 108 108 TIE TIE TIE TIE #1 #2 #3 #4 #5 #6 #6 #8 #8 #10 #11 #12 #13 #13 #15 #15 #15 #18 #19 #20 Audi Burberry BMW Volvo Benefit Cosmetics Cadillac Estée Lauder Land Rover Mercedes Benz Porsche Ferrari Infiniti Herborist Swarovski Cartier Gucci Lancôme Louis Vuitton Chanel Kiehl’s Genius Genius Genius Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Gifted Average Average Average Average Average Average Average Average 170 157 155 133 127 124 124 122 122 112 111 110 108 108 107 107 107 104 103 102 KEY Automobiles Beauty Champagne & Spirits #12 #12 #14 #15 #16 #17 #18 #19 #19 #19 Fashion Watches & Jewelry TIE © L2 2011 L2ThinkTank.com 16 .

The Audi Driving Experience hashtag #奥迪驾控汇# has generated 147. Renren: Users compete for a chance to win professional racecar training at Shanghai’s Formula 1 race track. Audi also maintains separate Weibo pages for many of its models.Want to know more about your brand’s China IQ? CONTACT US Key Findings GENIUS BRANDS: Audi Sina Weibo: A branded Sina event page.850 posts on Sina Weibo.000. Fans on the brand Sina Weibo page grew 70 percent to almost 61. from July 1 to August 1.com 17 . linking to the official Weibo account. © L2 2011 L2ThinkTank. features the interactive Audi Driving Experience game. The winner receives a PS3 or iPad 2.

Kaixin: 181.Want to know more about your brand’s China IQ? CONTACT US Key Findings GENIUS BRANDS: Audi Mobile: Multiple Chineselanguage mobile apps provide virtual tours of the Audi A8L and complement a mobile optimized brand site. © L2 2011 L2ThinkTank.590 video views. Tencent Weibo: Presence on Tencent Weibo is in its infancy.450 followers. Youku: 275.com 18 .

Digital Innovation at Brick and Mortar Stores: Burberry’s Chinese stores are outfitted with the latest in digital technology.Want to know more about your brand’s China IQ? CONTACT US Key Findings GENIUS BRANDS: Burberry Mobile: E-commerce enabled Chineselanguage mobile site translates.com 19 . © L2 2011 L2ThinkTank. Site: Chinese-language. e-commerce enabled site mirrors the brand’s global experience. including full-length touch screens and iPads. including Chinese subtitled versions of the Burberry Acoustic video series.

holographic fashion show was streamed on brand site.com 20 . Live Stream: An all-digital.Want to know more about your brand’s China IQ? CONTACT US Key Findings GENIUS BRANDS: Burberry Youku: Milan Fashion Show live stream on Youku garnered Burberry almost 1. © L2 2011 L2ThinkTank.2 million views on its channel. marking the grand opening of the flagship Beijing store.

fm. and a music channel on Douban.780 members enjoy Acoustic series videos.920 followers.com 21 . product photo galleries.250 Sina Weibo fans are treated to product videos and pics. Sina Weibo: 182. and celebrity sightings. © L2 2011 L2ThinkTank. Douban: 20. magazine covers.Want to know more about your brand’s China IQ? CONTACT US Key Findings GENIUS BRANDS: Burberry Kaixin: 61.

300 fans on Sina Weibo experience the Joy of BMW. Sina Weibo: 240. and offline meet-ups and events. MyBMWClub includes click-to-call customer service. iPhone App: Exclusive iPhone app for Chinese BMW owners.Want to know more about your brand’s China IQ? CONTACT US Key Findings GENIUS BRANDS: BMW Mobile Site: Provides BMW model overviews and pricing. © L2 2011 L2ThinkTank. but fails to take advantage of mobile features. a dealer locator.com 22 .

000 fans. Jiepang: Fans checked in on Jiepang to the Bird’s Nest National Stadium in Beijing for a virtual badge and a chance to win tickets to the BMW 3 Series fashion concert. with more than 173.640 followers. Kaixin: 622.800 unofficial BMW videos on Youku.Want to know more about your brand’s China IQ? CONTACT US Key Findings GENIUS BRANDS: BMW Youku: There are 31. © L2 2011 L2ThinkTank.com 23 . Tencent Weibo: BMW has the largest brand following on Tencent Weibo. the most of any brand and testament to brand strength.

2011 IQ PERCENTILE RANK +67% +48% +44% +40% +37% -41% -43% -56% -67% -68% Vacheron Constantin FEEBLE FEEBLE Hour Lounge BBS available in Chinese receives minimal updates. © L2 2011 L2ThinkTank.com 24 . few updates since 2010. and Sina Weibo propel this LVMH brand to the top of the Beauty rankings. Kaixin. Has extended social media prowess to Chinese platforms. Chivas Regal AVERAGE FEEBLE With the exception of Douban page. Developed mobile app for Ovi platform. Dolce & Gabbana FEEBLE AVERAGE Fighting on every front. Top Five Biggest Winners & Losers 2010 VS. Van Cleef & Arpels CHALLENGED FEEBLE Flash and media-heavy site has had few technology or functionality updates. Wuliangye GIFTED FEEBLE Localized site and high participation BBS forum aren’t enough to hold their ground. has launched a presence on nine social media sites globally including three in China.KEY FINDINGS Want to know more about your brand’s China IQ? CONTACT US Key Findings Benefit FEEBLE GIFTED Top-notch e-commerce and program launches on Youku. Johnnie Walker FEEBLE AVERAGE Launched presence on Sina Weibo and Douban. Burberry CHALLENGED GENIUS One of first in Fashion to launch e-commerce. Audemars Piguet FEEBLE CHALLENGED Launch of Chinese site launches brand from Feeble to Challenged. Yulu campaign featuring Jia Zhangke documentaries is shareable across social media. Tudou. Moutai (Maotai) GIFTED FEEBLE E-commerce functionality alone isn’t enough to keep this iconic liquor brand in the Gifted ranks.

and brands selling online those without online sales. In addition. (continued on next page) 88% 80% = 2011 85% = 2010 62% Feature Adoption (%) registered average IQs 16 points higher than 33% 32% 20% 10% 0% Chinese Language Locate Retail Within China Site Hosted in China E-Commerce Enabled © L2 2011 L2ThinkTank. additional resources are allocated to digital marketing.com 25 . that do not host a Chinese site sell and ship to China via their global site. The number of brands that were e-commerce enabled doubled. The Beauty category leads the way with 11 of the 15 brands in the study boasting e-commerce capability. Some Fashion brands. 2011) Selling Is Knowing The biggest change in site investments year on year are tied directly to sales. 23 brands have added offline retail locators.KEY FINDINGS Want to know more about your brand’s China IQ? CONTACT US Key Findings Brand Site Sophistication % OF SITES WITH THE FOLLOWING ATTRIBUTES: (2010 vs. suggesting that as an organization begins generating revenue online. The Fashion category posted the largest year on year change as the percentage of brands selling went from just seven percent to 24 percent. such as Valentino and Diane von Furstenberg. E-commerce continues to be directly correlated with strong digital performance across dimensions. and one-fifth now sell online.

com 26 . Nearly 60 percent of brands still accept cash on delivery. popularized by B2C e-commerce site Taobao.KEY FINDINGS Want to know more about your brand’s China IQ? CONTACT US Key Findings E-Commerce Payment Methods % OF E-COMMERCE ENABLED SITES EMPLOYING THE FOLLOWING: (August 2011) Selling Is Knowing (continued from previous page) Weak credit card penetration rates and online fraud fears continue to present e-commerce obstacles. More than through Alipay. E-commerce enabled brands tackle the payment infrastructure in a variety of ways. % of E-Commerce Enabled Sites 63% 58% 79% 60 percent of brands provide payment option 32% 21% 0% OTHER Online Banking Alipay Cash on Delivery Credit Card Other © L2 2011 L2ThinkTank. the most popular being accepting payments from the customer’s bank online. a PayPal equivalent.

In most cases.com 27 . are only incorporated on eight sites. just over half of Chinese language sites provide a U.S. when incorporated. social sharing via Chinese SNS and solicitation of user reviews is relegated to simple interface BBS forums. so is local customization.S. Although. a missed opportunity to provide information to Chinese tourists. and European store locator. Common 2. that are ubiquitous on U. sites. Store Locator % of Sites WITH the following: Site Features: % OF SITES WITH & WITHOUT THE FOLLOWING TOOLS (August 2011) 42% 58% 52% Wish List 48% 68% Prices Viewable in RMB 32% 8% 92% Content Shareable on Chinese SNS 8% © L2 2011 L2ThinkTank. and less than a third of sites publish prices in Renminbi.S. however. specific international information is limited on many sites.0 tools including user reviews and social media integration. particularly in commerce-oriented categories such as Auto and Beauty. 92% User Reviews % of Sites WITHOUT the following: European & U.KEY FINDINGS Want to know more about your brand’s China IQ? CONTACT US Key Findings Missed Opportunities Fifty-six percent of Chinese luxury purchases are made abroad.

Only 31 percent of brand sites come up first in organic search results for the Chinese brand name. and 42 percent of sites are not returned in the top three. Brands are doing better on Google. 2011”. Baidu: Chinese Brand Name Google: Chinese Brand Name Baidu: Brand Zone Baidu: Paid Search Google: Paid Search © L2 2011 L2ThinkTank. 0% 71% 67% 43% 42% 31% 29% 30% 22% 15% 18% 13% 12% 26% 25% 6.6 This is a dramatic shift from 2009. Prestige brands continue to struggle with visibility on the local leader. Analysys International. when Baidu controlled 58 percent of the market versus Google’s 36 percent. Organic visibility has actually declined on the platform since our May 2010 report. “Seasonal Survey of China Internet Search Market in Q2. The market share of local search engine Baidu stands at 76 percent versus Google’s 19 percent. July 2011. however optimizing for a search engine that has decreasing relevance is short-sighted. as the Baidu algorithm increasingly prioritizes organic returns of customers purchasing terms on other Baidu platforms.KEY FINDINGS Want to know more about your brand’s China IQ? CONTACT US Key Findings Brand Name Search Results POSITION OF BRAND SITES IN ORGANIC SEARCH RESULTS (August 2011) = 2010: 1ST POSITION = 2011: 1ST POSITION = 2010: OUTSIDE TOP 3 = 2011: OUTSIDE TOP 3 = CHINESE = ENGLISH Paid Search Tactics % OF BRANDS PARTICIPATING IN THE FOLLOWING FOR BRANDED SEARCH TERMS (August 2011) Google: A Distant Second Google continues to lose share in the Chinese search market since redirecting searches to Hong Kong in early 2010.com 28 .

Curating brand content on Baidu platforms Tieba (à la forums). Without a presence on Baidu. In many ways. 7. 1 2 3 4 5 6 Get Your License: A legal ICP license is crucial. Buy a Baidu Brandzone: Brandzones drive results. Despite being a proven source of traffic. Host Your Site in China: Baidu’s crawler is “impatient” and will skip sites experiencing even minor latency issues eliminating the chance to appear in organic search results. brands are virtually invisible in China. 7 Six Simple Strategies for Successful SEO in China: A quarter of the brands are engaging in paid search on Baidu. “2010 Q4 China Search Engine Market” January 2011. Streamlining code and adding alternative text improves visibility. Backlinks Boost: Targeted efforts to acquire backlinks can significantly improve ROI and search visibility. As with Google. © L2 2011 L2ThinkTank. Baike (à la Wikipedia). iResearch.com 29 . Reap What You Sow: Baidu content is prioritized in the search results.KEY FINDINGS Want to know more about your brand’s China IQ? CONTACT US Key Findings Pay to Play Paid search accounts for 31 percent of total online ad spend in China and search revenues were up 67 percent year-over-year for 2010. Cut the Code: Baidu’s crawler is not very sophisticated and requires aggressive spoon-feeding. Without a certificate. and Zhidao (à la Yahoo Questions) is “free” and can improve search results 10-20 percent if done right. site may be omitted from search results. flash-heavy sites encumber the crawler. Brands report up to 30 percent of their traffic originating from a brandzone and have seen click through rates up to 75 percent. less than a quarter of the brands are purchasing Baidu brandzones. Many are using paid search to bypass Baidu’s algorithm and ensure visibility of their Chinese site. Baidu’s algorithm is different than Google’s and requires a dedicated strategy. Baidu is simpler and more accessible than Google. and can be a very powerful tool with minimal investment.

and 43 percent in the U. However.9 100% 8. April 18. Although 69 percent of brands provide email opt-in. Email Marketing: % OF BRANDS WITH & WITHOUT THE FOLLOWING: (August 2011) % of Brands WITHOUT the following: % of Brands WITH the following: 31% Email Opt-in 69% 57% Welcome Email 43% 65% Chinese Language 35% 83% Marketing Email 17% 90% Link to Chinese Social Media 10% Viewable on Mobile 0% © L2 2011 L2ThinkTank. As brands continue to push towards e-commerce. The level of adoption across the Prestige 100® indicates a missed opportunity. iResearch.S.8 but not a single brand optimized emails for a mobile phone. Seventy-five percent of Chinese Internet users indicate willingness to purchase after receiving an email. 9. more than 65 percent of Chinese Internet users regularly use email. Global consumer research suggests that the Chinese are more receptive when it comes to email as a call to action. “2010 China Internet Market Annual Review Report”. Furthermore.com 30 . only 35 percent send Chinese language emails and just 17 percent send marketing emails after an initial welcome email. 2011. 46 percent of Chinese users access email through a mobile device.K. eDialogue 2010. versus 51 percent in the U. email marketing becomes imperative.Want to know more about your brand’s China IQ? CONTACT US Key Findings Empty Inbox Email in China is often overlooked in favor of SNS or BBS communication. China Internet Network Information Center (CNNIC) 2011.

Social media fragmentation coupled with the fact that most efforts were launched in the past 12 months. the social media ecosystem in China is fragmented. up from less than five percent in April 2010. Brand communities on Kaixin and Renren.986 50.130 133.Want to know more about your brand’s China IQ? CONTACT US Key Findings Social Mania Unlike other global markets. respectively. More than half are present on two or more.275 Sina Weibo Youku Tencent Weibo Kaixin Douban Tudou Renren 490% 200 16% 231 No Data 233 -29% 116 5% 50 12% 191 6% 124 3-Month Traffic Growth Registered Users (in Millions) © L2 2011 L2ThinkTank. 0% 0% 0% 0% 22% 14% 4% 13% 9% 0% 0% 8% 1% 7% Tencent Weibo Sina Weibo Renren Kaixin Facebook *June 2011 57% 25. Sixty-six percent of Prestige 100 brands have ® Social Media Adoption % OF PRESTIGE BRANDS PRESENT ON CHINESE SOCIAL MEDIA PLATFORMS (August 2011) Average # of Followers = 2011 = 2010 CHINESE PLATFORMS VS. Facebook substitutes with some of the longest brand legacies. Geniuses Audi and Burberry are fighting a war across several fronts and are present on six and five different social platforms.com 31 . typically combining a microblogging platform (Sina Weibo or Tencent Weibo) and a video site (Youku or Tudou).902* presence on at least one platform. averaging slightly more than 133.000 likes. respectively. where network effects lead to natural monopolies. the average brand page in the June 2011 L2 Prestige 100®: Facebook IQ registered almost 600.000 members. leads to social media communities that are much smaller than average Facebook and Twitter equivalents.000 and 101. In contrast. FACEBOOK (August 2011) 588. are the largest.501 101.

103 Dolce & Gabbana Fashion 69% 100% Benefit Followers: 110.964 month by referencing popular celebrities in its posts.056 Herborist Moët & Chandon Calvin Klein 128% Burberry 108% Followers: 180. Auto brands claim five of the top 10 spots. and prestige brands can’t get enough of the microblogging platform. most integrating Sina Weibo efforts with a wealth of cross-platform digital campaigns.803 Watches & Jewelry #10 © L2 2011 L2ThinkTank.Want to know more about your brand’s China IQ? CONTACT US Key Findings Wild About Weibo Traffic to Sina Weibo is up more than 490 percent in the past three months. tripling its base over the course of the KEY Top 10 Brands: Largest Sina Weibo Fan Base: (August 2011) Top 10 Brands: Sina Weibo Follower Growth (August 2011) #1 IDo Followers: 409.408 32 .com Louis Vuitton Followers: 107. In July. Ports 1961 led all brands in growth on Sina Weibo. a testament to its growth. prestige brand Weibo fan growth averaged 41 percent among brands with accounts on the platform.500 fans through its “Audi Driving Experi- #6 #7 #8 #9 200% 300% Diane von Furstenberg Followers: 153.693 Automobiles Audi 70% Audi Followers: 148. Local jeweler IDo leads all brands on Weibo on the heels of its “Irresistibly Appealing” campaign in which users could spin a daily prize wheel on the platform to win diamonds. Rémy Martin 70% Volvo Champagne & Spirits Followers: 117.374 Ports 1961 #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 0% 77% 140% 314% #2 #3 #4 #5 Cadillac Followers: 366.882 Ferrari 136% Shiseido 135% BMW Followers: 231. Audi was able to grow its already substantial base by 70 percent to more than 148.567 Beauty ence” promotion.179 Luk Fook Mercedes-Benz Followers: 293.

com Dior Prada Burberry Shiseido Watches & Jewelry 33 .Want to know more about your brand’s China IQ? CONTACT US Key Findings Top 15 Brands: Organic Buzz RELATIVE AGGREGATED ORGANIC MENTIONS ON SINA WEIBO & QZONE & NUMBER OF VIDEOS ON YOUKU & TUDOU (August 2011) #1 #2 #3 #4 #5 BMW #6 Audi #7 Chanel #8 Ferrari #9 Lamborghini #10 KEY Tiffany #11 #12 Porsche Gucci Moutai (Maotai) Volvo Automobiles Beauty Champagne & Spirits #13 #14 #15 Fashion Hermès © L2 2011 L2ThinkTank.

have created apps for Nokia’s Ovi platform. 318 million access the web through their mobile phone. Furthermore. China Internet Network Information Center (CNNIC). and Shanghai Tang—are commerce enabled. Aston Martin and Dolce & Gabbana. and only three—Lancôme. TOTAL: TOTAL: Mobile Adoption Rates (2010 vs. Slightly more than half of brands have apps available in the Chinese iTunes store.com . July 2011. While prestige brand programming on mobile platforms has increased dramatically from 2010. 2011) 60% 25% 16% = 2011 = 2010 2% 0% Mobile Site Mobile App Mobile Adoption Rates Across Platforms % OF BRANDS ON THE FOLLOWING MOBILE PLATFORMS: (August 2011) 51% = AVAILABLE IN CHINESE 31% TOTAL: 25% 14% 19% TOTAL: 10% 3% 6% TOTAL: 2% 0% iPhone Market Share 10. only two brands. L’Occitane.Want to know more about your brand’s China IQ? CONTACT US Key Findings Mobile Incompatible Of the 485 million Internet users in China. but two thirds of these apps do not provide a Chinese language option. iOS iPad Mobile Site Android Ovi 12% 1% 31% 116% 39% -30% 34 YOY Change © L2 2011 L2ThinkTank. it has not kept pace with the opportunity.10 Many Internet users have gone from no Internet directly to mobile Internet.

“The Evoque Effect.com 35 . At the core of the campaign is a half-animated.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius LAND ROVER: The Evoque Effect Land Rover’s 360 digital campaign. Android. City of Aurora. mini action movie series. “The Evoque Effect” microsite On Sina Weibo users can view the mini movies and answer a series of questions for a chance to win a Macbook Air or create a custom poster Sina Weibo page used to drive traffic to custom Sina event pages © L2 2011 L2ThinkTank. iPhone.” highlights an ability to expand and customize the user experience across a variety of digital and social platforms. and iPad apps provide additional screens for viewing the episodes. eight.episode.

leave comments.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius The Evoque Effect continued A virtual drive-in movie theater on Tudou allows users to view the movies. The page also included links to other social media properties and a behind-the-scenes photo gallery © L2 2011 L2ThinkTank. and paint their own comic cells with an online tool On Douban users write their own script or use an online tool to paint the city for a chance to win prizes ranging from model cars to notebooks and pens On Renren users answer quizzes around the movie’s plot and characters for a chance to win prizes. create their own version of the movie using an online editing tool.com 36 .

2011. Taobao’s online chat functionality. built by a Shanghai dealer and approved by the brand. to receive more information about specific models and after-sales customer service. none of them resulted in an actual purchase. Among the 800 million products sold on Taobao. Tom Doctoroff.com 37 . com”. Customers can leverage Wangwang. however. August 14.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius Lambos on Taobao Taobao controls 75 percent of all e-commerce transactions in China. Although it attracted more than 8. 12. is a $1 million Lamborghini. The store highlights the brand history that would otherwise be lost in translation on the English language site. Herborist. is the only Chinese showcase for Lamborghini. Red Luxury.000 orders. 2011. Lamborghini’s Taobao sales stunt succeeds in gaining buzz and raising the brand profile © L2 2011 L2ThinkTank.12 In addition to e-commerce enabled sites. Chinese brands Chow Tai Fook. “E-Commerce in China: Patriarchic Benevolence”. May 26. with 48. The site is more buzz than business. Huffington Post. Detailed product pages for eight different models feature stunning images and performance specs in Chinese.000 items purchased every minute.11 The online Taobao store. only Western brand in the study with a Taobao presence. Lamborghini is the 11. and Wuliangye also maintain Taobao stores. Luk Fook. “Selling Lamborghini’s on Taobao.

Through its website. Chinese spirit brand Wuliangye has digitally armed its customers with the means to authenticate its product. Wuliangye allows consumers to authenticate their product online © L2 2011 L2ThinkTank. Wuliangye provides RFID kiosks at authorized retailers.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius Counteracting Counterfeiting Counterfeiting is a challenge for both brands and consumers. In-store.com 38 . customers can enter the RFID code from the box or the product code from the bottle. Consumers can also text the RFID code to a designated phone number to receive authentication and to report manufacturers and resellers of counterfeit products online.

and lacking e-commerce capability and Chinese social networking integration. Users can watch runway and travel videos. and locate the closest store. has garnered more than 700 ratings—the most of any brand in the study—and is currently among the 60 most popular lifestyle apps in the Chinese iTunes store.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius Gucci Style The recently updated Gucci Style app available for iPhone and iPad.com 39 . share products via email. add products to wish lists. The Gucci Style app available in Chinese has the most ratings of any in the study © L2 2011 L2ThinkTank. although only partially translated into Chinese.

most of Bobbi Brown’s weibos are curated from her Twitter account and in English. Ricky Martin.901 Followers on Sina Weibo as of August 2011 107. Diane von Furstenberg’s weibos are in English and directly lifted from her Twitter account. Similarly. Diane Von Furstenberg’s personal Sina Weibo page 153. The Sina Weibo accounts of the Chinese make-up artist team are highlighted. With the endorsement of Hong Huang. Diane von Furstenberg and Bobbi Brown have joined forces with Tom Cruise.142 Bobbi Brown’s Sina Weibo brand page © L2 2011 L2ThinkTank. more than 34 times the number of fans of the official DVF brand Sina Weibo account. She also reposts from the brand account.000 fans.” Her answers are translated and posted in Chinese.000 fans compared with her 107.397 29.693 4. As she does on Twitter. Bobbi Brown accepts questions from her Chinese fans in a monthly series called “#Askbobbi. and Radiohead in signing up for a Sina Weibo account.com Bobbi Brown’s personal Sina Weibo page 40 .Want to know more about your brand’s China IQ? CONTACT US DVF’s Sina Weibo brand page Flash of Genius Personal Appeal Looking to extend their brands. Her account also reposts DVF brand weibos in Chinese. the editor of fashion magazine iLook. which has only 29. Diane’s account has garnered almost 154.400 fans.

Want to know more about your brand’s China IQ? CONTACT US Flash of Genius IDo Does Sina Weibo IDo launched a Sina Weibo effort estimated to have cost the brand millions of Yuan. Ibid. Each day fans were able to spin a virtual prize wheel on its Weibo page for a chance to win a diamond ring or pendant. 14. These bracelets contained a code that was to be texted to a designated phone number for a chance to win a diamond. Instructions were posted on Sina Weibo for fans to obtain a free bracelet at an IDo store. IDo’s fanbase grew 28 percent to more than 409. 2011. for the chance to have it fulfilled. the largest community on Sina Weibo in the study. Fans were also encouraged to post their dreams or submit via mobile. Weibo was also used to drive online traffic offline. August 22. more than 10.com 41 . The “Irresistibly Appealing” campaign generated more than 80.000 bracelets were given away and the company had to order 100.000 new Sina Weibo fans. Within three days.13 During the study period. Fans show off their bracelets on Sina Weibo © L2 2011 L2ThinkTank.14 IDo’s “Irresistibly Appealing” interactive campaign on Sina Weibo 13.000 more to meet demand.000.000 posts and 100. Central People’s Broadcasting Station of China. “Weibo Marketing Is ‘Irresistibly Appealing’ to Luxury Brands”.

Want to know more about your brand’s China IQ? CONTACT US Flash of Genius Badges Before Bags Luxury brands have taken to Chinese Foursquare clone Jiepang to raise brand awareness and drive online/offline engagement. but do not maintain a permanent presence on the platform. Date Brand Badge Jiepang Followers Promotion Sina Weibo fans that checked into one of three Beijing stores received a virtual badge and were entered into a drawing for the chance to win a VIP pass to the grand opening party for its Beijing Sparkle Roll Plaza store. April 2011 Burberry 888 126 676 April 2011 June 2011 Guerlain and BMW have also experimented with event specific Jiepang promotions. Virtual badges on the phone replace shopping bags as a digital symbol of exclusivity and being in the know. Users who checked in at any Chinese Swarovski boutique received a virtual badge. Swarovski provided location-based tips and activities to celebrate Spring. Users who checked-in at the Louis Vuitton Art Cosmic Voyage exhibit at the National Museum of China and shared it via any of the Chinese social networks earned an LV virtual badge. © L2 2011 L2ThinkTank.com 42 .

“ Joy Is BMW” microsite Users share their stories to collect votes in order to win a BMW bicycle “ Joy Is BMW” Sina event page BMW’s Tencent Weibo page © L2 2011 L2ThinkTank. Users submit their stories or place their votes through branded Sina and Tencent event pages. and the best overall will get to appear in a BMW Joy video. BMW’s Tencent Weibo following grew 736 percent to more than 135. launched simultaneously on Sina Weibo and Tencent Weibo. An app analyzes the content of their Weibo page to detect their joy level.000.671. The most popular story to date on the microsite has received almost 315.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius Joy Is BMW The “ Joy Is BMW” microsite features content on the next generation of BMW hybrid technology and a series of videos in which everyday people describe the impact that BMW has had on their life. The hashtag #BMW之悦的故事# (#JoyOfBMWStories) generated 16.000 words or less.370 posts. The site’s contest. The author of the tale with the most votes per platform will win a BMW bicycle. If they share their results with 3 friends they receive a BMW virtual badge. The hashtag #BMW在创造什么# (#WhatIsBMWCreating) generated 23.000 votes.131 mentions during the month of July.766 posts and 3. allows users to share their own story in 1.com 43 .

000 followers on Kaixin. videos. Estée Lauder grew its Renren following more than 50 percent (the most of any brand) to more than 200. The challenge for Estée Lauder will be to migrate these fans to new platforms or to its own branded BBS. The top scorers received a tube of the new Idealist eye cream. © L2 2011 L2ThinkTank. the brand’s Sina Weibo account has slightly more than 45.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius ESTÉE LAUDER: Applauded on Social Media In July.000 users participated in the game. EL-Lady Estée Lauder’s Kaixin page Estée Lauder’s Renren brand page Estée Lauder’s interactive game on Renren 44 . product recommendations from featured community members. combines editorial content. Interactive skin care surveys and online tests provide customized product recommendations. and select content can be shared on other SNS platforms. Thus far.000. a social platform whose traffic is down 28 percent in the last three months. promotions. which linked to Estée Lauder’s e-commerce site. Estée Lauder has amassed more than 625. interactive games. Estée Lauder’s BBS. EL-Lady. More than 76. Additional points could be gained by sharing the game with friends.500 fans. and online shopping.com Estée Lauder’s BBS. BBS members are encouraged to answer each other’s makeup questions and give tips. All BBS content is shareable to Kaixin. EL-Lady. Its Renren page featured an interactive game in which users were challenged to collect coins.

infused with street culture.com Sina Weibo account promotes the contests and encourages voting The microsite is sharable on Kaixin. with the top five contestants earning a total of 93. The membership-based microsite. Qzone. urban Chinese consumer through a dedicated microsite and Sina Weibo account. or special editions exclusively in China in effort to appeal to the local consumer. As of August 31. promotes sponsored events. and build goodwill with the Chinese government. Site members vote on the submissions with the top five vote getters for each contest receiving a $250 watch. Hennessy is leveraging digital to help it reach the young. product lines. and hosts a series of contests.210 votes. a number of prestige brands have launched sub-brands.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius Made for China Despite the Chinese’ love of foreign brands. With its China-only brand.450 votes. In the latest contest. increase brand awareness. Voters are also eligible for a prize. Renren. assume one of four hip hop personas—rapper. © L2 2011 L2ThinkTank. beat boxer or graffiti artist—to create a custom video featuring their animated avatar or submit a new idea with an accompanying photo. breakdancer. users create a profile. upload their picture. Baidu Space. Classivm. Two hundred-fifty people participated in the “New Idea” contest. provides drink recipes. and the top five contestants had a combined 596. almost 900 people participated in the video contest. and Sina Weibo Site members create a profile and animated avatars that others can vote on 45 .

Beijing Hologram Fashion Show Live Stream Fall/Winter Collection Beijing Event Live Stream on PPTV Fall 2011 Ad Campaign–Shanghai Lady Blue Shanghai © L2 2011 L2ThinkTank.Want to know more about your brand’s China IQ? CONTACT US Flash of Genius Beijing Backdrop Luxury brands have harnessed online video to introduce themselves to the Chinese market and announce to the world its importance.com 46 .

B. consumer and media companies. a brand strategy consultancy that employs more than 120 professionals in the United States. Harvard Business School.F.B.A. Danielle has a B. specializes in identity. She has benchmarked digital marketing. In 1992. NYU Stern Founder. in Human Biology from Stanford University and an M. and invitations. including The New York Times Company. Since then she has provided creative direction for a wide array of clients. Pharma. Specialty Retail. CHRISTINE PATTON Creative Director. Disney/ABC. an Internet-based consumer gift retailer (2007 revenues: $100 million). JESSICA BRAGA L2 Jessica. and UC Berkeley’s Haas School of Business. in Illustration from Rochester Institute of Technology. ecoAmerica. digital and print collateral. DOUG GUTHRIE Dean. and the Graduate Schools of Business at Stanford University.A. He received a B. DANIELLE BAILEY L2 Danielle began her career at The Home Depot. L2 Scott is the founder of L2.com in-depth look at how China’s government-driven form of capitalism has successfully overcome traditional theories of development and helped China become the economic and political juggernaut it is today. 47 . In 1997.” which recognizes 100 individuals under age 40 “whose accomplishments have had impact on a global level. R. Luxury. MAUREEN MULLEN L2 Maureen leads L2’s Research and Advisory Practice where she helped developed the Digital IQ Index®. and Political Change in the World’s Largest Nation. and Emory University. She then focused on the Elie Tahari brand aesthetic and consistency in design across its many developing disciplines. Inc. and Zagat. designing textiles and prints at Elie Tahari’s design studio in New York City. and is co-editor of Social Connections in China: Institutions. Wine & Spirits. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. with a particular focus on the visual packaging of L2’s research. she leads the translation of the L2 brand across all touchpoints. Europe. Scott was elected to the World Economic Forum’s “Global Leaders of Tomorrow. in Graphic Design and an A. Gateway Computer. in Systems Engineering from the University of Virginia and an M. and Financial Services industries. Doug is currently the Dean of the George Washington School of Business and has taught at NYU Stern. Public Sector. Maureen has a B. a think tank for digital innovation. merchandising. in Economics and Journalism from the University of Connecticut and an M. a freelance art director. a trusted adviser of both multinationals and local Chinese companies. L2 Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands..S.B. where she led a variety of internal consulting engagements focused on supply chain.A from NYU Stern. Christine received a B. and the Public Sector.D. and Asia. As creative director of L2.A. In addition to these major works. and social media efforts of more than 300 brands across Pharma. She went on to become the art director of a small.A. and the Changing Nature of Guanxi. which is an © L2 2011 L2ThinkTank. GWSB Doug has been an expert in Chinese economic reform for more than decade. He received his B. Jessica has a B.” Scott has served on the boards of directors of Eddie Bauer. and brand aesthetics for companies both large and small. prestigious design firm in Chelsea. She began her career in fashion. Scott is also the founder of Firebrand Partners. in organizational sociology from the UC Berkeley. He is currently writing China’s Radical Transformation: Economic Reform. from UCLA and an M.S. an operational activist firm that has invested more than $1 billion in U. he founded Red Envelope. She began her career at Cosí. While at L2 she has benchmarked the digital competence of brands spanning the Specialty Retail. She went on to manage the implementation of award-winning mobile initiatives for several large media clients. Doug has published more than 60 articles on China and has been an invited speaker on a number of occasions. UCSF. where she focused on event graphics. Scott founded Prophet. and HCA. and in-store process improvement. where she developed the brand and oversaw its evolution from concept through growth to 100 restaurants. Auto.A. iconography. including the launch of Kidville and CosmoGIRL! magazine.B. Before joining L2. Maxim magazine.A.A. and a Clinical Professor of Marketing at the NYU Stern School of Business where he teaches brand strategy and digital marketing. Beauty.A from UC Berkeley. Maureen was with Triage Consulting Group and led managed care payment review and payment benchmarking projects for hospitals. event graphics. Columbia University.A. in Chinese literature from the University of Chicago and a Ph. from NYU Stern. Culture. NBC Universal. He is the author of Dragon in a Three-Piece Suit: The Emergence of Capitalism in China and China and Globalization: The Social. Economic and Political Transformation of Chinese Society.S.Want to know more about your brand’s China IQ? CONTACT US Biographies SCOTT GALLOWAY Clinical Professor of Marketing. and a student of China for some 25 years. from NYU Stern. INSEAD. including UCLA Medical Center. Global Integration. e-commerce. Travel. The New York Times Company.

Her experience running a store on Taobao provides her with a unique perspective on fashion and commerce in China.A.A. Europe. Japan.S. as both an advisor and a manager of entrepreneurial companies in China. Emma speaks Mandarin and Cantonese. and Asia.. © L2 2011 L2ThinkTank. most recently based in Shanghai.in International Education from New York University. Sage has both an undergraduate degree in International Studies and an M. XI CHEN L2 Born and raised in Beijing and a resident of New York for more than two years.Want to know more about your brand’s China IQ? CONTACT US Biographies SAGE BRENNAN China Luxury Network Sage is a longtime media and Internet analyst in China. In 2003. from Capital University of Economics and Business in Beijing and an M. he was general manager of Shanghai-based Pacific Epoch.B. and remains a frequent commentator on China-related media and technology issues in print media and on programs such as CNBC’s Asia Squawk Box. talents. Richard returned to China to lead the opening of Wieden+Kennedy’s China office in Shanghai..A. She received her Bachelor of Commerce degree from the University of Windsor and has a M. which focuses on China and China-related brands. Winnie Rui. Additional thanks to Yvonne Du. and design across the U. in Cross-Cultural Communication from New York University. Richard studied architecture in the U. from the University of North Carolina at Chapel Hill and has been speaking and studying Mandarin since he first lived in Beijing in 1987. Most recently. and Flora Lan. RICHARD HSU Brand Translation Expert H+ Branding Born in Shanghai. consumer research. market entry. For two years. Born and raised in China. EMMA LI L2 Emma has served as a research analyst in China and has worked on a number of engagements advising foreign companies on their China expansion strategies and market prospects.com and education. he opened the brand consultancy firm [h+] in Shanghai. conducting research and assessing trends in the Chinese luxury and contemporary art markets. New York University. a boutique telecom and technology research firm later acquired by Pacific Crest Securities. Xi previously worked in personal banking for RBC.A.S. branding. Sage is a founder and curator of the Shanghai chapter of MobileMonday and TEDxShanghai. Before that. Sage was research director of Hong Kongbased hedge fund Pacific Sun Investment Management and chief representative of the firm’s China operations. Xi serves as a bridge between American and Chinese culture. based in Shanghai. A native of Boston. and the Central Academy of Fine Arts Beijing. Richard lectures regularly in the subjects of brand development and multi-disciplinary design at Columbia University.B. In 2006. providing customized and localized banking services to Chinese clients. advertising. developing a career in retail. and financial analysis experience. she supported the online publication Jing Daily. He has a broad range of marketing. Xi has a B. 48 . Tongji University. who served as additional data collection resources and advised on methodology. He contributed the weekly “This Week in China” column to Dow Jones’ MarketWatch for two years.

Social Media Strategy. 60 –120 attendees Working Lunches: Members-only lunches led by digital thought leaders and academics. startups. intensive Clinic. 300+ attendees Clinics: Executive education in a classroom setting with a balance of theory. EVE N T S Forums: Big-picture thinking and game-changing innovations meet education and entertainment. 14. and marketing executives in North America. UPCOMING 2011 RESEARCH PRESTIGE 100® Reports: Mobile DIGITAL IQ INDEX® Reports: CON S U LT I N G Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. tactics. Topic immersion in a relaxed environment that encourages open discussion. Digital IQ Index® reports score brands against peers on more than 350 quantitative and qualitative data points. and underpinnings of social media in the prestige industry in a one-day. 10. and case studies. and Site Optimization engagements. Advisory work includes Digital Roadmaps. 12 – 24 attendees MBA Mashups: Access and introduction to digital marketing talent from top MBA schools. We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation. future growth. and best practices of social media in China. Prestige 100 : These reports index and analyze the IQs of 100 iconic prestige brands in areas key to ® 11.11 L2 Clinic The Social Graph: Europe Academics and industry professionals highlight the PARIS opportunities. This intensive executive session will enhance participants’ fluency in brand-driven social media efforts on Chinese platforms. platforms. Beauty Fashion & Leather Goods Watches & Jewelry MEM B E R S H I P For membership info and inquiries: membership@L2ThinkTank. challenges.” L2’s third-annual Innovation Forum will bring together the highest density of scholars. The largest gatherings of prestige executives in North America. RES E A R C H Digital IQ Index®: The definitive benchmark for online competence. as well as on Mobile platforms. 21. business leaders. Publications in 2011 will measure the performance of the Prestige 100® brand set in two of the world’s largest “markets”.11 L2 Forum Innovation 2011 NYC Called the “TED for marketing. 11. Facebook and China. diagnosing their digital strengths and weaknesses.11 L2 Clinic The Social Graph: China SHANGHAI L2’s inaugural event in China will probe the underpinnings.L2 is a think tank for digital innovation. UPCOMING 2011 EVENTS 10.com .

A THINK TANK for DIGITAL INNOVATION 51 East 12th Street. NY 10003 W: L2ThinkTank. 2nd Floor New York.com .com E: info@L2ThinkTank.

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