ADM – EA Consulting

MARKETING IN CHINA – between strategy and new perception of being “cool”

Can you imagine how big profit could come out during the start of  chinese new year if we’ll fix our marketing strategy on thousands of people moving from every side of China? This is  a well know point in particular by travel agencies and airlines companies that keep always on mind that we’re talking about the biggest human migration of China. Every year in China around 300 million trips are made by plane and if we add railways we’ll get more than 2 billion of trips made by chinese travelers crossing the nation in the aim of seeing their loved ones in their hometowns.

BUT recently a huge number of companies involved on rental cars market are approaching a new way to meet one more interesting  target: the individual customers. It’s real common now in China see slogans like “drive with fun instead of being packed in train” or “save money, get your rental car and enjoy new dimension of free trip” – Independance and comfort that’s new marketing strategy useful to get private customers for the car – rental industry, in China usually dependent by contracts with multinational corporates despite good link with private users.

Beyond good marketing strategy what has also helped this field is the rising cost of using taxis and a new perception that is making  the use of private car really cool. In particular we need to consider the recent use of rental cars from state-owned entities, that are becoming one of most important target and at the same time shows one significant point: usually chinese people from high positions always prefer to get personal drivers than own one car for private use. But nowadays choose one car for private needs is becoming sign of distinction, and we well know that harmony in China today is really represented by the power of “buying own distinctive social position”. Renting cars can cut public costs, according with government agencies, more than 30 percent, if we compare rental use with maintaining such cars themselves.

In addition rental car majors in China like  Avis, China Auto Rental and EHi are doing their best to make their business brighter, approaching with contracts several chinese airlines to offer exclusive rental service for their frequent flyers. It’s good way to expand the network getting into airports or close to them. Hertz china for exemple is also targeting the rising number of chinese middle – class, consumers who travel abroad for fun. In this way obviously a good guanxi with National Tourism Association could be really useful to set special packages for white collars or managers thrown into outbound travel programs, that are increasing around 25% every year!

If until today the concrete way to start business in China for car rental industries was closing secure conctracts with multinationals, now the big potential is represented by individual customers and to get them is really important starting from big advirtising activity to make people aware about this experience… it’ll be probably more effective if we’ll say that driving free is the way to travel cool!

Paolo Cacciato

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