Twitter Sets Its Sights on Chinese Brands With New Hong Kong Office
Twitter's strategic decision to open an office in Hong Kong will create a stronger digital marketing channel for Chinese brands looking to go global.
Chinese companies may soon look to ramp up their global social media campaigns after Twitter announced plans to open a Hong Kong office next year.
The launch, first reported in the Wall Street Journal, gives Twitter a stronger platform to engage with outgoing Chinese brands, despite the fact that the company has been banned in China since 2009.
Thomas Crampton, global managing director, Social@Ogilvy, Ogilvy & Mather, says Twitter’s decision to open an office in Hong Kong is recognition of the extremely high engagement of social media across Asia, and will give Twitter a stronger base to engage with regional brands, especially those with global marketing strategies.
“The value is you can work with the platform in a more creative and strategic manner,” says Crampton.
“It’s not about social as such, Chinese brands understand they have to be social and have a deep understanding of that. But it is how do they go out of China, what’s the right platform, and Twitter can definitely be part of that,” he says.
The main focus of the Hong Kong office will be on building sales capabilities to work with agencies and advertisers domestically in Hong Kong, internationally in Taiwan, and with Chinese advertisers looking to go global, says Shailesh Rao, Twitter’s vice president for Asia Pacific, Latin America, and emerging markets, in an interview with the Wall Street Journal.
As Twitter struggles to generate a profit – recently announcing third quarter losses of $175 million, up from $65 million for the same period in 2013 – tapping into the China market could help generate new revenue streams.
Joshua J. Steimle, chief executive (CEO) for Hong Kong-based digital marketing agency MWI, says the decision will help give Twitter better feedback about expanding in Asia.
“I think Twitter is a great tool, even if they’re struggling to find a vision and revenue strategy,” says Steimle. “The more people who use it, the better it will be for those of us already using it.”
Regionally, Twitter has offices in Sydney, Singapore, Mumbai, Tokyo, and Seoul. In August, Twitter revealed plans to open an office in Jakarta.
Twitter did not immediately respond to a request for comment.
