Upstream Update
August 2007


Beijing 2008 CountdownBeijing 2008 -- One year and counting. This August 8 will mark just 365 days until the opening ceremony of the Beijing 2008 Olympic Games. Upstream's Beijing team can help with a range of needs, ranging from pre-games corporate and marketing communications programs, to advising on ticket availability, translation resources and other essential services to support corporate visits to the Games. Contact Hua Foley for more information.

ADMA YearbookUpstream is a Board member of the Asia Digital Marketing Association. Click here for a free PDF of the 2007 ADMA Digital Marketing yearbook. It's a great resource to help your company make the most of the power of the Internet in Asia Pacific.


Recent Media Coverage

Named by Media as the region’s
New PR Consultancy of the Year in 2001, the firm rapidly grew to include seven offices... - Media

Ketchum believes that the 2008 Olympics, Shanghai Expo 2010 and WTO market opportunities provide a background for long-term growth.... - Aim | Micro


more

Visit Us:
Upstream Asia
Upstream Australia
Media Services Asia
Asia Release
AboutUpstream

Contact Us: pr@upstreamasia.com


Unsubscribe
Upstream Asia respects your right to privacy online. Your e-mail will never be shared with a third party without your consent.

2007 may go down in history as the summer no one took a vacation. Multinational companies remain very active in Asia Pacific, developing partnerships and driving sales, despite last week's downturn in global markets.

On the 10th anniversaries of the Asian financial crisis and the return of Hong Kong to China, economists are expecting strong growth in the next six months, keeping one eye on inflation and interest rates.

The Chinese economy is growing at 11.9% annually -- and with next year's Olympics, the pot looks to keep on boiling.

Here are just a few of Upstream's clients now on full boil:
Deloitte Embraer Fiat Jumeirah Monsanto SWIFT

For insight on how multinationals can maximize their value in China, read this month's feature on Branding in China written in conjunction with Upstream's US-based branding partner Movéo, the integrated marketing agency.


Featured Article
The Emergence of Branding in China
By Brian Davies, Managing Partner, Movéo Integrated Branding, and David Ketchum, CEO, Upstream Asia

The clichéd image of a Chinese consumer riding a bicycle and buying little except rice is fast being swept away. Chinese people - in the Peoples' Republic of China, Taiwan and overseas - are now the largest purchasers of luxury goods. And domestic Chinese brands, such as Haier and Lenovo (a sponsor of the 2008 Olympics), are coming onto the world stage. Read more »
Back to top

Client Activity
Poised for takeoff
This month, Upstream begins work with two companies well poised to benefit from China's economic development: global accountancy firm Deloitte and commercial aircraft manufacturer Embraer. The assignments include corporate communications and public affairs.
DeloitteEmbraer
Back to top



Fiat Shifts Up in China
FiatFiat, has invited Upstream to represent the company as it aggressively pursues a growing share of the Chinese market.

Upstream is aiding Fiat with its strategic, corporate and issues communications, as well as initiating a program of business and automotive media engagement to explain and promote its strategy in the fast developing China automotive market.
Back to top



Asia's Music Industry Comes Together For Music Matters
Music MattersMusic Matters, the only forum in the world dedicated to the Asian music business, was held in Hong Kong from 29 - 31 May. Upstream was responsible for managing media relations connected to the 3-day event and managed the press office on-site. More than fifty members of the press, regional and local, attended the forum to hear music industry heavyweights convene and address issues unique to the Asian landscape. Media coverage of the conference reached far and wide, even appearing in US media.
Back to top



Have You Registered YourCompany.Asia Yet?
DotAsiaDotAsia, the organization that is bringing the latest top level domain to hit the Internet space, .asia, has enlisted the help of Upstream Asia to manage a communications campaign around its Pioneer Domains Programme (PDP). Upstream Asia will help the organization identify and reach out to corporations, brand owners or individuals to offer them the chance to apply for popular domain names. There will also be a media relations campaign around the programme to raise awareness amongst target audience groups.
Back to top



An Evolution in Yoga
Asia Yoga ConferenceWhen Asia Yoga Conference planned to organize Evolution, the largest yoga conference in Asia, they looked to Upstream Asia to help them generate some pre- and post- conference public awareness. Dedicated to serving the growing interest of yoga around the region, their objective was to spread the news of the Hong Kong event held between 1-4 June, and to garner on-site media attention so that audiences around the region would be educated on the value that Evolution brought to the yoga community in this region. Through media relations efforts, Upstream helped Asia Yoga Conference reach out to audiences in China, Hong Kong and India.

Click here to watch a video about the event on Reuters
Back to top



Bringing Agricultural Biotechnology to China
MonsantoBased in ST. Louis, U.S., Monsanto Company is a multinational agricultural biotechnology corporation and provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

Upstream was invited to organize a series of events for Monsanto in China, including a media workshop and an academic seminar. These events are aimed to address media and public concerns about the potential risks of genetically modified foods on human health and the environment, as well as providing opportunities for two-way communication.
Back to top



SWIFT Reaches Out in Asia
SWIFTSince June, Upstream has begun servicing serve SWIFT (the industry-owned co-operative supplying secure, standardised messaging services and interface software) in seven countries - Hong Kong, China, Korea, Taiwan, Japan, Singapore and Australia.

This regional account will be managed in Hong Kong with Upstream reporting directly to SWIFT's Asia Pacific leadership team. As well as managing SWIFT's regional and local communications programs, Upstream will provide strategic counsel, media relations/outreach, events management and media monitoring.
Back to top



Jumeirah Comes to Asia
JumeirahIn Summer 2008, leading luxury hotel chain Jumeirah will be launching its first Asian hotel in Shanghai, China.

Upstream is providing Jumeirah with a full range of media relations services on a retainer basis.
Back to top



Acrossmedia In-Store Marketing Systems in Taiwan
AcrossmediaAcrossmedia, a leading supplier of in-store TV-based marketing solutions headquartered in Denmark, has selected Upstream to execute its debut in Taiwan through an integrated public relations campaign. Acrossmedia's content creation and screen placement solutions are a breakthrough in the targeted advertising of impulse products in-store that can have not only sell a product quickly and impact the bottom line, but also ensure a quick return on investment.
Back to top

Feature Article
The Emergence of Branding in China
By Brian Davies, Managing Partner, Movéo Integrated Branding, and David Ketchum, CEO, Upstream Asia

The clichéd image of a Chinese consumer riding a bicycle and buying little except rice is fast being swept away. Chinese people - in the Peoples' Republic of China, Taiwan and overseas - are now the largest purchasers of luxury goods. And domestic Chinese brands, such as Haier and Lenovo (a sponsor of the 2008 Olympics), are coming onto the world stage.

On the B2B front, opportunities are opening up everywhere. Domestic enterprises, like Telecommunications companies ZTE and Huawei, are growing from their Chinese bases. Meanwhile, foreign multinationals are seeking to expand their business in China and capitalize on the opening of markets following China's accession to the WTO.

Just a generation ago, most goods in China were simply produced and distributed - there were few actual brands (e.g. "Product 'A' came from factory No. 306"). Of course, a handful of products did tap into the fervor of the Cultural Revolution, such as Red Lantern radios and Panda cigarettes. And while Chairman Mao frequently mentioned Zhangxiaoquan scissors and Ostrich ink, he did so as a proud head of state, not as an endorser.

Under Mao, China was denied the opportunity to economically evolve. It wasn't until the transforming reforms of Deng Xiaoping that the very "idea" of branding became imaginable in China (advertising was banned until 1979). Once it did (perhaps as a result of latent demand), people rapidly started to establish strong relationships with favored brands. Today, brands are now seen as accepted - even essential - elements of a modern society.

An enthusiasm for brand
Today, the Chinese have embraced brands - and the values they represent - in a big way. The Chinese Brand Admiration Survey by the Ingram Brand Company found that consumers in Beijing and Shanghai have affinities for both local and international brands (6 of the top 10 "most admired brands" in Shanghai were global). Among the international contenders, Nokia was a clear standout, with strong response also generated by Nike and Adidas. Local favorites included Haier, Lenovo, Moutai and Mengniu.

The rules on branding in China are still being written, and those hoping to simply transport what has worked in the US or other parts of the world may be in for few surprises. For example, according to the Ingram survey, advertising and promotions are not the main drivers of brand admiration, but rather product/service quality and the ability to deliver on promises. The US or European marketer will need to be flexible about both the tactics and brand building strategy used in this rapidly developing environment.

Homogeneity is an illusion
While perhaps not as complex as Europe, the notion that China is a homogenous market because it is a single country is a false one. One challenge for global marketers is tailoring brands to varying regional sensibilities. There is a huge divide between the rich coastal cities and the poorer interior of the country, and companies must make sure their brand messages fit the audience. Shanghai (perhaps partly due to its colonial past) is a cosmopolitan city more open to new ideas than other parts of country. In central regions, successful brands may need to be more straightforward in their messages. This may even mean initially "selling the category" - an approach usually frowned upon in the West.

Generational differences may come into play as well. Younger Chinese are fast brand adopters because they are "brand natives." For older Chinese, such as those in senior management positions, brands may still represent a type of "bourgeois" thinking. The process of building a trusted brand relationship with them may require a different approach.

West is best?
Clearly Western brands, especially those that entered the "new China" early and have had time to build credibility, have caché. On a recent trip there, I was told by a Chinese colleague not to worry so much about showing Chinese people in marketing materials. In his opinion, Western models enhanced the perception of quality. While this may be true, a new Chinese pride is emerging. At some point, stressing the Western heritage of a brand may no longer be enough to convey the quality message. With Chinese consumer companies gaining share and prestige, there is no reason to think this phenomenon won't crossover to the B2B space as well. Depending on future marketplace equities, Western brands may want to consider a shadow endorsement strategy, in which the Chinese brand name is the most prominent - or the only - one.

Don't go it alone
Successful branding in China (like anywhere else) depends on understanding the customer. This concern has spurred some B2B marketers to seek local expertise. According to Adweek, the country today has some 80,000 ad agencies doing everything from designing fliers to placing ads on the Internet. And yet this route is not without peril - qualifying local resources, many with little or no track record, can be a daunting task. One way around this is to find a US resource like Movéo, that has taken it upon itself to do the extensive (not to mention expensive) due diligence needed to select the right resource. Our clients now benefit from the marketing savvy, cultural insights and geographical reach of our partner - Upstream Asia - but only after an extensive search process was concluded. Today, an exchange of branding practices, processes and methodology has begun between the two firms. We believe the results will help our clients better integrate their global brand strategies - while minimizing the cultural learning curve inherent in introducing brands in China.

Did you know?
By next year, China will be the third largest ad market in the world, and the numbers are predicted to keep climbing as the nation gears up for the 2008 Beijing Olympics.

About Movéo
Working in collaborative partnership, Movéo helps its clients build extraordinary B2B brands. The agency's integrated services-research, brand strategy and marketing communications-have helped global leaders such as Siemens, Motorola, US Robotics and CareerBuilder align their brands with their overall business strategy to produce bottom-line results. For more information on Movéo visit www.moveo.com/b2b
©2007 Movéo Integrated Branding.
Back to top


Copyright © 2007 Upstream Marketing and Communications Inc. All Rights Reserved.