There is none a businessman who doesn`t want to adventure in nowadays China, one of the world`s fastest-growing markets. So does Diageo, the world`s leading spirits company who owns famous brands like Guinness, Johnnie Walker, Smirnoff vodka etc..
I know nothing about Diageo plc before I was allocated to write an report about it for Gary. However, I do know the brand Johnnie Walker. Its ad in China impressed me much. “You are young and sucessful. Why not enjoy them?” “Them” refers to luxuary saloon car, gorgeous, premium drinks…Pure persuasion of splashing money for luxury goods.
The ad exposed human being`s desire of money and social status without hesitation. Indeed, more and more Chinese people are striving to earn more money and climing up for higher social status. But the ad`s unveiling our inner desire is still hardly accepted by most of us, at least not by me. “The ad is of sheer capitalism,” I thought.
It is a brand coming from a UK company called Diageo, who is itching to enter China, one of the world`s fast-growing whisky market. “Tailored for the Chinese market, the campaign relied on the idea that Chinese people are not content simply with the fact of their achievements but often seek the acknowledgment of their peers…Chinese consumers like to signal their success more overtly than those in many other countries,” said the company.
Is that ture? I believe it is true to a certain extent. We are so eager to become stronger that sometimes we crave for greatness and success too much. From leaders in government to staffs in company, they tend to boast of their achievements by druming up in media and of course, splashing wines on table–the greater success they achieve, the more expensive wine they splash.
Interestingly enough, Diageo does know Chinese consumers very well! The first, and most strategically important consumers for Diageo are “Guanxi men”–status-driven 35 to 45-year-olds for whom business entertainning plays a big role. The second are “strong independent women” aged 35 to 45-year-olds. The third group is “upward mobiles”–25 to 35-year-olds men and women who want to be seen at the cutting edge. The last group, the “choice generation”, are early twentysomethings who are eager to explore and experence something new.
Diageo introduced its strategy for expanding in China two years ago. Now Johnnie Walker has 34% of the Chinese whisky market. And there is definitely much for it to play for. According to the Scotch Whisky Association, whisky exports to China rose from 1.5m pounds in 2001 to 46m last year–almost 40 times more!!
I can`t help thinking: China is indeed a huge market!!!
But, another naive thought flashed into my mind: where do Chinese people earn that much money to afford the luxuary drinks like Johnnie Walker? It must be somewhere. I hope the day that most of us can afford Johnnie Walker is coming, rather than enjoyed exclusively by the “guanxi men”.
PS. All facts coming from FT Nov. 14 2006