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IDN Conference – Hong Kong

IDN Conference – Hong Kong. Your New Solution | Expansion into Greater China. 19 April 2013 Presented by King Leung, Managing Director – Datatrade Ltd. Founded in 1983 Direct Marketing. Specialize in loyalty marketing outsourcing Loyalty Consulting Data Analytics Technology

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IDN Conference – Hong Kong

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  1. IDN Conference – Hong Kong Your New Solution | Expansion into Greater China 19 April 2013 Presented by King Leung, Managing Director – Datatrade Ltd.

  2. Founded in 1983 • Direct Marketing • Specialize in loyalty marketing outsourcing • Loyalty Consulting • Data Analytics • Technology • Marketing Execution • Incubated since 2004 • Official launch in Q2 2013 • Overall brand custodian in helping overseas companies expand in China • Incubated since 2004 • Official launch in Q2 2013 • Acquisition through network of local agencies • Loyalty “in-sourced” to Clix

  3. Seasoned management team with 90+ years of direct marketing experience King Leung Managing Director Lilian Salenius Co-founder Monica Chan Group Managing Director • Since 2003 • Former Booz Allen Hamilton / KPMG Consulting • University of Chicago (MBA) • Stanford Who’s Who (Marketing) • Since 1983 • Former International Advisory Board – Direct Marketing Association in the US (DMA) • Henley • Since 1988 • Board of Director – HK Direct Marketing Association (HKDMA) • Henley Bo Salenius Co-founder / Special Advisor • Since 1983 • Former Chairman – Union Carbide Asia • Harvard (AMP)

  4. We support our clients’ projects through our 120+ team members across 4 major cities in Asia Pacific • Client facing • Program planning • Project management • CRM consultancy & analytics • IT architecture design • Data management • Operation management • Client facing • Campaign planning • Project management • Data management • Operation management Hong Kong, China (Headquarters) Guangzhou, China • Rep Office • IT development • Data management • Contact centre Shanghai, China Manila, The Philippines

  5. 2003 & Before 2004 2005 2006 2007 2008 2009 2010 Snapshot of Datatrade’s clients in recent years (selected clients only)

  6. … and since industry domain knowledge is one of our major value propositions, we are targeting industry verticals that leverage on our industry experience Beauty Fashion and Accessories Health Food & Beverages Hospitality

  7. Beauty

  8. Fashion

  9. Health

  10. Food & Beverages

  11. Hospitality

  12. We are honored that our work was recognized by industry by winning Direct Marketing Agency of the Year Awards from Marketing Magazine in 2011 and 2012 • DIRECT MARKETING AGENCY OF THE YEAR AWARD • Local Hero (#1 independent agency) (2011 & 2012) • Bronze Overall (2011) > Silver Overall (2012)

  13. CRM Methodology and Approach Event Management Channel Coordination Contact Centre Support Fulfillment Phase 5 – Operational Support Marketing Strategy (e.g., media plan) CRM Campaign Planning Campaign Delivery (Operation Support) Campaign Measurements Creative Phase4 – Marketing Planning & Execution Customer Research Customer Lifecycle Management Consultancy Customer Segmentation & Analytics CRM Reporting Phase3 – Learn about Customers Data Hosting Data Cleaning Data Synchronization (ETL) Data Entry Phase 2 – Data Management Overall CRM Program Strategy Overall Technical Design (Data warehouse) Web Development Other Infrastructure (Campaign response tracking, etc.) Phase 1 – Infrastructure Setup Existing client’s agency / Clix’s partner Clix

  14. Infant Milk Formula | Stock Reservation Program

  15. Case Highlights • Client Challenges • Foresaw an increasingly tight supply of infant milk formula for local mothers • Our Value Adds • Proactive planning from ramping up active engagements with our Mother’s Club members to online sales system upgrade to resources planning on operation support were made in early 2012 in anticipation of sudden spike in demand, esp. by end of 2012 through CNY in 2013 • Building & maintaining a passionate operation team who serve members with “heart”! • Results • Friso achieved No.2 marketshare in 2012 where the client attributed part of success to our “personal” member engagements – which helped foster their brand reputation and loyalty over the 7 years of our partnership • Overall member engagements increased by over 500% • Significant increase in online sales • Despite exponential demand growth, our “personal” member engagements were being widely recognized by public (see customer online excerpts on last page)

  16. Print communication for key channels Note: Above-the-line executed by client

  17. Clear message about commitment on securing supply Note: Above-the-line executed by client

  18. In-store Signage Communication

  19. Clear info about stock supply in prominent position

  20. Customer Feedback Online

  21. Customer Intelligence Discovery • Client Challenges • Inadequate in-house expertise and resources to analyze and take action on customer data • Little visibility of customer insights (e.g., didn’t know where to focus in driving customer retention) • Our Value Adds • Performed customer segmentation and CRM analytics to understand unique characteristics across different customer segments more intimately • Outlined execution roadmap, esp. on Customer Lifecycle Management programs – New Customer Cultivation, Retention, Value Segment Migration – in order to better focus CRM efforts • Uncovered in-depth customer insights for the Hong Kong market for the first time in the history of the client • Results • Identified substantial business opportunities through low hanging fruits in customer retention and cross-selling • Successfully gained buy-in from client’s regional marketing and CRM leadership regarding our proposed longer term CRM strategy and execution roadmap

  22. Size of china opportunities

  23. Among global leaders, China is their #1 expansion destination…

  24. Total imports accounted for USD 1.7 trillion and its growth (24.9%) has outpaced export (20.3%) in 2011 Total Imports: USD 1.7 trillion = 2011 GDP of Canada, #10 in the world (IMF) Source: China Census Bureau

  25. Domestic Consumption, a USD 2.9 trillion market, had double digit growth over the past 5 years Domestic Consumption Market Size: USD 2.9 trillion = Between GDP of Germany (#4) and France (#5) (IMF) Year-on-year (YOY) Growth Rate: 17.1%

  26. Boosting domestic consumption is a key policy drive from Chinese Government for next 5-10 years

  27. Consumer, industrial products and services in China are amongst the most attractive sectors for foreign players

  28. Our GAX’s Support Scope

  29. Case Study #1 – DigiKey (USA) Nature: B2B Path: Hong Kong, China, Taiwanand Singapore concurrently via eCommerce since 2004 Legal Entity in China: No Products Registered in China: No Channel(s) eCommerce – individual packages shipped directly from US into Asia markets Accept RMB? No Marketing Offline (Trade magazines); Search Marketing

  30. RESULTS Sales over USD 1.5 billion in 2012 (with significant % growth from Asia) “Digi-Key initially engaged with Datatrade in 2004.   Our sales in Greater China at that time was very small.  We credit Datatrade with being a truly significant factor in consistently and capably supporting our exponential sales growth in Hong Kong, Singapore, Taiwan and China.” Mark Larson President - Digi-Key Corporation Ranking of worldwide marketshare rose from 11th to 8th

  31. Case #2 –OZ Kids (Australia) Background To support the new product launch, we have designed a 360-degree marketing campaign for OZ Kids on both offline & online channels

  32. Showcase - OZ Kids (Website) Multi-language Facebook Connect Integrated webstore Celebrity endorsement User-friendly CMS Web-based membership ePayment mechanisms

  33. Webstore Multi-currency User-friendly shopping cart

  34. Facebook Fans Page

  35. Facebook Campaign Application

  36. Weibo (Chinese Twitter) Activities and sharing Weibo verification

  37. Online Advertising

  38. PR Events

  39. Case Study #3 – Beauty Brand (USA) Nature: B2C Path: Hong Kong > China shortly after Legal Entity in China: Yes (from scratch) Products registered in China: Yes (30+ SKUs) Channel(s): Phase 1 – Offline retail in Hong Kong Phase 2 – Offline retail in China Phase 3 – eCommerce in China where DT helps negotiate with largest health & beauty retail chain in Hong Kong and southern China Accept RMB? Yes Marketing Offline (Print) + Online Display + Blogging + In-Store Promotion

  40. Why you should bring your local clients abroad Think about the advantage of global agencies with their global accounts, once you advise the client beyond your local market, they have less incentive to change agency due to higher switching cost.

  41. The Suggested IDN Working Model IDN Affiliate GAX • Client Management • Marketing / Brand Strategic Advisory • Brand story / Creatives • Local logistics coordination (e.g., Swedish Post) • Local execution in Greater China (Above-the-line, Below-the-line, CRM) • Feedback on local market knowledge

  42. Do you see this “China Solution” as a viable new product for your agency? Any of your clients that have plans to expand into China? What are their considerations / “mental blocks”? Any client that we can pilot with? Discussion: How could we get the ball rolling?

  43. Any Questions?

  44. Thank You! This document is prepared by: • King Leung, Managing Director • king@datatrade.com.hk • (+852) 21575338 • Sheila Chan, Marketing Officer • sheila.chan@datatrade.com.hk • (+852) 21575322 • Jennifer Tsui, Senior Consultant – Consumer Intelligence • jennifer.tsui@datatrade.com.hk • (+852) 21575337

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