How can Chinese companies manage their brand reputation in turbulent times?
How can Chinese companies manage their brand reputation in turbulent times?
The state of play and recommended strategies
Today’s post was a collaboration with
and originally appeared in FT Chinese and cross-posted in .With the media industry facing significant changes and ongoing U.S.-China geopolitical tensions, strategic PR and reputation management have become increasingly important for Chinese companies aiming for overseas markets. This piece offers some perspectives on the current state of Chinese companies' reputation management and recommended strategies for navigating these challenges and enhancing brand influence in international markets
Recently, many American media have been making drastic layoffs. For example, Timemagazine laid off about 15% of its union-represented editorial staff; the Los Angeles Times also launched the largest layoff in the newspaper's 142-year history. According to Pew Research, employment in the U.S. media industry fell by 26% from 2008 to 2020; in 2023, the number of layoffs in the U.S. news industry was close to 2,700, the highest annual number since 2020.
Why now? Simply put, the channels through which people obtain information have changed. With traditional media and cable channels losing audiences, their advertising revenue has shrunk, leading to these mass layoffs.
Despite this turmoil, PR continues to rely on the media to win trust. Regardless of size, many Chinese companies have enhanced their global strategy to grow. Therefore, reputation management in international markets is becoming increasingly important.
Faced with the potential uncertainty of U.S.-China geopolitical tensions, Chinese brands must adopt a more strategic approach to maintain and expand their influence in the United States and other international markets. This geopolitical tension may cause brands to encounter increased doubts from reporters, media organizations, and consumers. Against this context, some Chinese companies have adopted a more strategic approach to media relations to objectively present their brand's story and achievements to win greater trust in these key markets.
In addition, advertising expenses of Chinese companies in overseas markets such as the United States are rising. According to CNBC, digital advertising spending in the United States will reach $ 201 billion in 2023, almost double the $108 billion in 2018. With rising advertising costs, companies may use PR strategies to establish contact with local authoritative media, resulting in positive word-of-mouth essential to reputation management.
With the significant contraction of the U.S. media industry, how should those companies and brands that need to expand their reputation and influence through the media lay out their plans? According to the 2023 Global State of the Media Report released by Cision, a media software and services company, here's what journalists are on the lookout for:
40% of journalists said they increasingly rely on data to decide what topics to cover.
68% of journalists said they want more research data, such as industry trends and market insights.
When asked what journalists hope PR professionals could do, 66% answered, "providing data and third-party experts."
Another 37% of journalists said they would only consider publishing a corporate press release if it included a specific analysis of trends and how the product/project could help consumers solve their problems.
Increase engagement rates by up to six times compared to text-only press releases.
The PR focus of many companies can be classified into product and reputation management. Product PR seeks to make the public pay attention to the product through media reports. As for reputation management, the scope is even broader. When companies develop PR strategies, they tend to focus on three key questions: "Who are we (or why should the media trust us)?" "Why should the media write about us instead of our competitors?" "How do we demonstrate our core differences?"
Based on Cision's survey report, journalists favor data and industry trends when reporting. Companies could adjust our PR strategies accordingly. For example, they could convey these key messages to the media: "XX brand has won more than ten global innovation awards," "XX company's global consumer research report reveals the three major needs of [product category]," and so on. By conveying this information, the media can better evaluate how products and companies impact consumer experience.
In addition, new restrictions, tariffs, and policies may be introduced in international markets at any time (just ask TikTok), so companies cannot rely solely on PR strategies but must also continue to optimize corresponding operating structures. For example, a cross-departmental legal and information security team can be established to review corporate strategic risks and ESG policies while actively obtaining corresponding third-party certifications. More importantly, for market regulators and the media, the efforts made by the company prove the company's commitment to the underlying concerns of the local community and making positive contributions.
Although media relations and corporate communication are integral to reputation management, internal communication and collaboration must also be strengthened. In the early stages of going global, the company's PR team may coordinate with other departments to formulate a risk management plan and detailed response plans, such as tallying third-party certifications related to the company's key business areas, which may win more trust in times of crisis.
Reputation management is more critical than ever for Chinese companies, especially today when operating in an ever-changing environment. Companies can establish a strong international brand image by utilizing research data and media relations, actively responding to external policy changes, and demonstrating brand value and differentiators. PR serves to strengthen connections between companies and global consumers by growing, managing, and defending their brands.
About the authors:
JX Tan, Author of The Tao of Communications newsletter, head of international communications and PR at BGI Genomics, and former head of content (APAC) at PR Newswire. Leveraging data to produce original reports, he has helped brands gain broader trust amid an increasingly unpredictable international environment. (LinkedIn)
Ivy YangAuthor of theCalling the Shots 话语权时代, a newsletter and a columnist for FT Chinese. Her insights are widely recognized by international publications, including the Wall Street Journal, Bloomberg, Le Monde, The Wire China, Vogue Business, The Guardian, Wired, and Rest of World. She runs Wavelet Strategy, a reputation management PR agency in New York.(LinkedIn)