Teaming up with a giant is the way to go

Social media engagement carries a different meaning in the minds of the Chinese public. Social media consumption is about much more than sharing social lives with friends. Chinese consumers make use of social media to define and communicate a personal identity.

Another uniquely Chinese phenomenon is the power of recommendation via social media. Foreign firms need to understand the opportunity that social media presents to build a brand that consumers recommend to a friend. In the Chinese mainland market, it is social media advertising more than any other advertising channel that offers the ability to capitalize on the power of recommendation.

Recent research studies also reveal that Chinese male consumers buy slightly more online than females do. Studies also found that when using only one electronic device, males favored mobile, while women are more likely to buy on a PC. However, using multiple devices was the overriding trend for both genders.

Furthermore, while the vast majority of Chinese consumers appear to search online before buying, it is also apparent that more than half of all online purchase decision-making by Chinese consumers is heavily influenced by recommendations from friends or comments recorded on social media by someone who has recently engaged in buying and consuming a similar product.

Less clear at present is the influence, both informational and persuasive, of online advertisements. Some studies point to moderate to low influence and to Chinese online consumers not relying heavily on online advertisements for product information. The importance of personal recommendation in Chinese consumer decision-making appears to be highlighted further with studies revealing that TV ads also do not appear to carry strong influence.

It would appear, therefore, that foreign firms need to view Chinese consumers' social media activity as a crucial market research tool and one that will provide key insights into brand consumption meaning in the minds of the Chinese public.

So teaming up with one or more of China's dominant Internet companies such as Baidu or Alibaba has never been more important for foreign firms and their brand building across the Chinese mainland.

The author is a visiting professor at the University of International Business and Economics in Beijing and a senior lecturer in marketing at Southampton Solent University's School of Business. The views do not necessarily reflect those of China Daily.