The Digital IQ of Prestige Brands in China

The enormous potential for retail organizations in China is nothing unexpected to anybody in particular distinction brands. Following quite a while of yearly twofold digit development, China’s blasting economy has left a huge number of shoppers looking for better approaches to spend their discretionary cashflow. In 2009, China turned into the world’s second biggest extravagance market behind Japan, surpassing the United States.

Despite the fact that these patterns were unmistakable no less than 20 years prior, numerous eminence brands are as yet playing get up to speed in this various and quickly evolving commercial center. With 384 million web clients more than the U.S. also, Japan joined a significant part of the opposition for clients and brand devotion will play out on the web. The venture notoriety brands make in their own advanced capability could be an integral component in their capacity to survive and flourish in China, and is prone to end up progressively imperative as the business sector develops.

What is Digital IQ and How is it Measured?

In July of 2010, L2, a research organization for notoriety brands, cooperated with Labbrand to quantify and rank the computerized capability of one hundred eminence brands in China[1]. The estimation strategy, “Advanced IQ,” gives every brand a consolidated score taking into account site interpretation, usefulness and substance, site design improvement (SEO), online networking execution, and computerized advertising endeavors

Computerized IQ Ranking: China

A Closer Look at the Numbers

These rankings uncover a few fascinating patterns and relationships with other accessible measurements. For instance, the eight style brands measured demonstrate a solid positive connection (0.72) between Digital IQ and brand esteem as reported in BusinessWeek’s yearly 100 Best Global Brands report.

Missed Opportunities and Winning Strategies

Most prestige brands earning high Digital IQ scores in China share at least two attributes: local relevance and availability across a broad range of media.

Local relevance stems partly from familiarity with Chinese sites like Baidu, Kaixin, and Youku, which can be loosely compared to Google, Facebook, and YouTube, respectively. But brands doing business in China must recognize that for Western sites and their Chinese counterparts, different strategies are required; simply translating site content is often ineffective.

While homegrown search engine Baidu boasts 62 percent market share in China[3], only 39 percent of measured prestige brands come up first in its organic results when searching by English brand name. Meanwhile, 94 percent of brand sites came up first on Google.cn (prior to its departure from China) when using English names. When searching with Chinese names, approximately 30 percent of brand sites are not among the top three search results on either search engine. This indicates the difficulty of brand name translation for many multinational brands. These numbers suggest that many brands approach search visibility with a Google-centric mentality that fails to recognize the Baidu algorithm and other local nuances.

One way brands can enhance SEO is by creating more opportunities for consumer interaction through a combination of social network sites (SNS), microsites, bulletin-board systems (BBS) and e-commerce and mobile websites.

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