Business Seminar: Branding a Product In a New Market, Part 2

Okay, so last post I spoke about using the government’s five-year plan when entering the Chinese market, inspired by a talk from Arthur at Strategic Public Relations Group. Today I’m going to talk about how things can work in reverse – moving a Chinese company to the UK.

One member of the panel on Wednesday was Georgia Yaxley from Mobike (摩拜单车), who has just launched the brand in Manchester, UK. For those who don’t know, there are a few companies in China that allow you to rent out bikes anywhere at any time. They line the streets and can be picked up by anyone – all you need is your phone to unlock them and pay. The bikes are monitored over GPS so that the company knows where their bikes are at all times, although apparently this technology is exclusive to Mobike – other companies use the GPS on your phone and hope for the best.

Mobike has over 5 million bicycles in circulation throughout China and Singapore, making them one of the largest networks of IOT (internet of things). IOT has really taken prominence in research and design lately and some examples of the application include kettles that switch on when they know you are coming home, mobile apps that control central heating and there is talk of fridges that scan the barcodes of products put in, so that they can reorder foods when you are running low. It’s taking off, but a lot slower in the UK.

Part of Mobike’s success lies in the ease of purchase. Renting a bike is cheap and easy to do, as you only need to scan a QR code. Although most people are familiar with these codes, they are rarely used in the UK, which could cause a potential problem for the company. In order for people to see how efficient the system is, they first must know how to use QR codes and be willing to do so, so one of the first steps of marketing Mobike in the UK has been educating people on this ‘new’ method. Last year another company attempted to launch in London and did not last very long, as they had not prepared consumers. They showed up, presenting a different method than they knew and the lack of understanding led to an unsatisfactory uptake. From the sound of it, Mobike made sure that consumers knew exactly how to use the bikes and the app before launching.

Another important part of ensuring success was communication with local authorities. I’m sure it will shock no one when I say road rules are a lot more lax in China, so the idea of picking up a bike anywhere and then leaving it anywhere is a lot more feasible. In the UK, there are designated areas for everything. In order to ensure it works in the UK, Mobike have worked alongside the City of Manchester and City of Salford Councils, not only ensuring the bikes aren’t disruptive, but also feeding into cycle-to-work and green energy schemes. Thinking on this, I’m sure there are going to be more restrictions on UK cyclists than those in China, perhaps in the form of designated pick-up and drop-off points, that may impede the brand’s current way of working and inhibit how quickly they can expand the geographical area covered.

Finally, I want to talk about something Georgia mentioned about the ‘stigma of a Chinese company’. Even just that word – stigma – resonates with me. Everyone has a stereotype in their head of what China is like and how things function and, truthfully, that image is 10-20 years out of date. People still think of the ‘made in China’ label and use it to represent different prejudices – the quality is inferior, the service is bad, the employers are poorly treated – and trying to tell the world that ‘made in China’ doesn’t mean that anymore is a hard job. Changing people’s opinion is hard because they don’t like to feel that they were wrong. Rather than tackling this head-on, Mobike has opted to remove many of the overtly Chinese elements from their marketing. It’s an unfortunate but wise business move as the West doesn’t currently respect Chinese business as much as they should. I’m hoping this will change in the future as more and more brands emerge, showcasing top-quality and this may be one way to do that. Establishing Mobike as a familiar brand, only to later find out that the firm you have given your loyalty is Chinese could open up your perspective. I hope so.

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