ShanghaiZhan: All Things China Marketing, Advertising, Tech & Platforms The 2025 China Brand Equity & ROI Paradox - Totem's Chris Baker & OMD's Ahle Kuang
Jan 10, 2025
Chris Baker, Founder of Totem, and Ahle Kuang, General Manager of OMD China, share their insights on China's shifting marketing landscape. They discuss the trend of marketers prioritizing short-term sales over brand equity, with 48% planning budget cuts for 2025. Local brands are adapting effectively, leveraging platforms like TikTok, while global brands struggle to resonate with local consumers. The duo emphasizes the need for a balance between immediate ROI and long-term brand loyalty in a rapidly evolving digital marketplace.
AI Snips
Chapters
Transcript
Episode notes
Shift in Marketing Strategy
- Brands are shifting from prioritizing brand building to focusing on short-term ROI.
- This change reflects a "new normal" in China's market, resembling Western consumer behavior.
China's "New Normal"
- The "new normal" in China's market shows decreased growth and more cautious consumer spending.
- This trend, starting in 2019 and exacerbated by COVID-19, emphasizes value-seeking purchases.
Impact Across Categories
- The decline in marketing spend and focus on performance affects almost all categories in China.
- Few bright spots exist, primarily in niche markets and leading brands in emerging areas.