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Australian wines businesses can, and should, capitalise on Chinese social media to both create a presence and a recognised brand in China. While some Australian businesses are operating in this space, many have not fully appreciated the enormous potential that these channels offer.
This report provides an outline that enhances current understanding of the activities that take place across two dominant social media platforms in the context of wine business in China, namely, WeChat and Sina Weibo. Furthermore, it also explores new channels for Australian wines and new ways to educate Chinese consumers concerning Australian wine brands.
While WeChat and Sina Weibo are presently being used by wineries in similar ways, they have key differences. WeChat accounts have the capability to offer built-in payment options, whereas Sina Weibo accounts do not have this capability.
The key reason behind wineries’ use of these platforms is to enhance and strengthen engagement with consumers and other partners in the supply chain.
Potential benefits of these platforms include:
- opportunities for innovation that leads to stronger engagement with both consumers and business partners; both platforms offer the opportunities for ‘Guanxii’, that is, for replicating the unique Chinese network approach to doing business in online settings.
- advertising and promotion of products and services
- leveraging reputation to strengthen brands
- providing customers with assurance of product authenticity and combatting ‘fake’ brands.
While the uptake for Chinese social media by Australian wineries might be low, there is growing awareness of the role that these platforms can play for wine businesses that are keen to penetrate and increase trade with China.
There are opportunities for Australian wine businesses to develop innovative engagement strategies using both platforms. To do this well use of Chinese social media platforms needs to be integrated and aligned with the broader business strategy. In addition, since Chinese social media use Chinese as a medium of communication, adequate budgets and culturally-aware personnel with appropriate command of the Chinese language is needed for the use of these channels to deliver effective outcomes.
Specific guidelines in relation to account set up, communication of high quality content, consumer engagement, building network and converting them into communities are included in the report.
Abstract
With unparalleled exponential growth in China, Sina Weibo and WeChat have become the two major social media platforms used by Chinese consumers. While many wine business actors including Chinese wine brands, wine retailers, wine distributors, and restaurant businesses are already taking advantage of these applications little evidence exists concerning the activity of foreign wine brands in this space.
Aiming to enhance understanding of the current activities that take place on the two dominant social media platforms in the context of wine business in China, this project uses netnography and interviews to explore and identify new channels for Australian wines and new ways to educate Chinese consumers concerning Australian wine brands.
Objectives
This project aims to:
- Identify the key wine supply chain businesses on Wechat and Sina Weibo
- Document how these firms, including Chinese wine supply chain businesses, Australian wine businesses and foreign wine brands are using Wechat and Sina Weibo
- Gain a better understanding of competitor activities in the Chinese market
Background
The Chinese mobile e-commerce market is substantial and growing rapidly. Sina Weibo, a Chinese microblogging application, has more than 556 million users, over 50 million of whom are active daily users. WeChat has grown to become the dominant mobile social media channel in China which has recently become an all-encompassing marketplace.
WeChat and Sina Weibo are channels that Australian marketers may be able to effectively use to directly communicate with their Chinese consumers. The rise of these social media with high network externalities offers a way of social network marketing which is characterised by both interactivity and precision.
Approach
The project will use qualitative methods to achieve the research objectives. Key actors (importers, retailers, on-premise, distributors, and competitors including Chinese domestic and foreign wine brands operating in the China market) and their Wechat accounts and Sina Weibo pages will be identified and a database will be compiled.
Sector benefits
The project will result in:
- A framework of how Wechat and Sina Weibo is used within the wine business context
- A database of the predominant gatekeepers and industry actors using Wechat and Sina Weibo and their roles; and
- A clear picture of how competitors in the China market are using social media.
This will enhance the understanding of the current activities that take place on the two dominant social media applications in the context of wine business in China. It will explore new channels for Australian wines and new ways to educate Chinese consumers concerning Australian wine brands.
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