ESADE experts agree that a presence in the Internet and in Social Networks is vital in the Chinese market

The importance of being present on the Weibo social network, focusing on WeChat and positioning oneself in Baidu (the "Chinese Google") are some of the key points that a Spanish company or brand wishing to set up in China should take into account. This was the message highlighted by some of the participants of the ESADE China Europe Club Forum, held today at the ESADE Business School.

Gil Serra, Director-General of Freixenet China stressed that “At the end of 2015, China will account for roughly 25% of the Internet’s users worldwide”. Accordingly, his company has bet on a strong web presence and is trying cross-promotions using both on-line and off-line approaches. An example of this is that this coming Christmas, the necks of Freixenet cava [Catalan 'champagne’] bottles will bear QR codes as part of a competition to win an electric motorbike.

Manu Sánchez, ESADE professor and President of the China Marketing Centre of Barcelona’s Marketing Club had the same message, stating that "As far as consumers are concerned, if you are not on the Internet using Chinese characters, your firm does not exist". He considered that "It is not enough to translate the firm’s web site — one has to make it thoroughly Chinese". He also said that one needs to bear in mind digital marketing strategies using smart phones, given that 80% of Chinese use these to connect to the Internet.

The importance of where the product comes from

Javier Torra, former CEO of Simon Holding SL, explained the importance of highlighting the fact that goods come from Barcelona on the packaging. Freixenet also adopts this labelling policy, the company stressing that "The brand’s history and where the firm springs from is very important for Chinese consumers".

ESADE’s Professor Ivana Casaburi and Director of the School’s China-Europe Club stressed that "The Chinese market is different and we have to adapt to it." She noted that what works in Spain does not work in China when doing business. Simon [electric fittings company] for example has over 2,000 franchised shops in China — a business model that does not exist in Spain. That is because flats in China are sold unfinished and purchasers buy everything else in instalments. "This leads to a different market model and a multi-channel strategy", noted Torra, speaking for the firm.

Spain as a hub

Xavier Trias, the Mayor of Barcelona, attended today’s ESADE China Europe Club Forum and mingled with the participants. He stressed the importance of Chinese tourism for Barcelona. The Director-General of Air China in Barcelona, Yinghui Zhang, said his airline wanted to fly over a million Chinese tourists a year to Spain by 2020.

These data are representative. China’s former ambassador to Spain noted that "China will have 250 million university graduates in 2035". Pedro León, KPMG Spain’s Director for Markets, added that "Collaboration with China was and still is vital for boosting foreign investment in Spain".