Digital Darwinism and Internet Thinking in China [Part 1]

In this first part of a two-part series, Tencent's SY Lau looks at how market disruption has accelerated in China, and what opportunities this creates for marketing and marketers.

The role of marketing in China has changed massively over the past five to 10 years.

In The Origin of Species, Charles Darwin stated that “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” This ability to change is so important, as companies seek to win customers and expand their markets.

The term “disruption” is one that is probably most famous in the tech sector due to the publication of The Innovator’s Dilemma by Clayton Christensen. Market disruption occurs when new companies enter an existing market and take a completely different approach to solving a problem.

At this point, marketing professionals are faced with a quandary. Should they stick to their trusted approaches that have proved to be successful in the past? Should they change their methods in response to the new market entrants? More importantly, how do marketing professionals affect the overall course that their companies take in the future?

Part of any response to this has to involve how marketing is perceived within these organizations. Five years ago, the marketing department was viewed as an adjunct to sales, solely concerned with helping the sales team to execute.

Today, the situation is very different. Marketing has to be concerned with so much more within the business. However, market disruption presents its own opportunities as well.

The growth of the Internet in China, particularly through mobile phones, has been essential to this.

The fact is that everyone has more access to information, and people in rural villages can find out what is taking place in Beijing almost instantly. There is now much less time between a trend developing in the capital and people finding out about it across the country. The availability of the Internet gives people the chance to put a direct connection in place.

For people, this can be social networking like instant messaging or video chat; for businesses, this makes it much easier to find buyers that are interested in what you have to sell.

Getting over issues like location and channel is simpler when you can find and connect people faster. This availability and ubiquity of information comes hand-in-hand with more power for the consumer. People can make connections and discuss their interests, so they have much more data and they can make informed decisions ahead of any purchases. These customers are empowered. What this means is that they will be less likely to rely solely on sales.

Marketing can step into this gap. This involves acting as the bridge between the company and its customers, providing a voice for these customers and prospects internally.

This approach can help the company to keep up with user adoption trends, and therefore in a better position to manage the impact of market disruption.

This ability to work with market changes is a difficult one to cultivate. Evolving and making use of any disruption is challenging, as it involves risking established revenue channels.

However, it is essential to make use of any situation that arises. By being agile and making small, swift innovations, companies can keep pace with the market rather than being left behind.

The most challenging aspect of this is that it is becoming a standard part of how businesses have to manage themselves. In China, this “new normal” describes an economy that needs each business to operate at a higher efficiency, with lower costs and a more sustainable model.

After 35 years of development at a tremendous speed, China is now entering this new mode of growth. For marketers, this evolution of their role is both a challenge and an opportunity. With their companies facing huge upheaval, getting closer to customers is essential.

Image via Shutterstock.

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