Tencent, China’s biggest brand has announced its plans for western expansion through a focus on content, messaging and major global brand investment, reports Marketing Week.
The company currently has more than 1 billion monthly users, and runs the country’s most popular internet portal and messaging services. It is also the most valuable brand in the country, worth one hundred billion dollars, according to Millward Brown’s BrandZ research.
That valuation puts it ahead of the likes of Coca-Cola, Disney and MasterCard.
Regardless of the scale, the company is relatively unknown in the west.
China’s Internet market is so big that it offers an ideal environment for massive Chinese firms like Tencent, owner of WeChat, to establish itself before going global.
In China, trust is one of the most important, so the company itself represents a lot of value and meaning. – Steven Chang, Tencent’s corporate Vice President.
You can have the iPhone but you buy into the Apple brand. And in China, people buy into the Tencent brand. – Steven Chang, Corporate Vice Price of Tencent.
While Tencent may not be that well known among Western consumers, it is a different story with Western brands. And the likes of BMW, Burberry and Nike are all working with Tencent as they look to quickly transition their brands to a Chinese audience.
The ecosystem for China digital advertising is evolving but it will be a China edition. We are not behind; the speed of change is very fast but development is different.
Tencent is also buying in content through exclusive deals with creators such as HBO and NBA, but it is adapting the ‘Netflix Model’ and creating its own content.
A version of this appeared in Marketing Week on August 4. Read the full version here.