The vast population of 1.4 billion people with an affluent, blossoming middle class, and 76 per cent digital buyers in the population, mark China as a lucrative destination for companies from the Gulf Cooperation Council (GCC) region looking to broaden their reach and influence.
China’s burgeoning middle class forms a dynamic consumer market with a growing demand for a wide variety of goods and services.
Notably, this includes offerings from GCC companies, renowned for their high-quality, innovative products, and unique experiences.
As these consumers become increasingly brand-conscious, advertisers recognise the golden opportunity to establish brand recognition and loyalty through digital channels.
Prominent examples include Dubai Tourism, Saudi Tourism and the regional airlines and hotel groups, which already focus on Chinese visitors, not only to fill seats and beds, but to drive traffic to malls and attractions in significant volumes, with success.
Chinese consumers have returned to luxury retail outlets, malls and hotels and the Middle East is a preferred destination for the affluent Chinese traveller, according to Dubai’s Department of Economy and Tourism (DET).
The return of the Chinese traveller
Over 20 per cent of Chinese millionaires plan to visit the Middle East in the next 12 months, according to the latest TrendLens report from consulting firm Agility as reported by Skift. To facilitate the return of the Chinese traveller post pandemic, Dubai has implemented a visa-free policy for Chinese visitors and Saudi Arabia has included China in its e-visa programme.
This year, mainland China’s luxury consumption is poised to return to positive growth following a Covid-impacted 2022, that saw the market decline 10 per cent year-over-year (its first such drop in five years), according to a report in Ying Daily, which will see brands ramp up their China strategy.
Reaching Chinese consumers
The pace of digital expansion in China has been extraordinary, mirrored by similar growth in the GCC region. China’s digital ecosystem, home to over a billion internet users, is dominated by platforms like WeChat, which has grown beyond its instant messaging roots to become an integral part of everyday life.
Its ubiquitous presence makes it an essential tool for businesses looking to connect with Chinese consumers. In the GCC region companies like Noon or Careem have also expanded their service range in a similar vein to become all-encompassing platforms.
China is rapidly emerging as a global leader in AI, with significant investment from both the government and private sectors. AI’s influence spans across various industries, including advertising, revolutionising the way businesses address, engage with, and understand their consumers.
Reaching the right audiences at the right time relies increasingly on artificial intelligence (AI). At The Trade Desk for example, we see 13 million ad opportunities each second globally. Our AI engine, Koa, analyses these vast amounts of data to surface opportunities for advertisers to deliver successful advertising campaigns.
Leveraging tech
However, manoeuvring in the Chinese market isn’t without its challenges. Advertisers need to traverse a different regulatory landscape and adjust to the distinct consumer behaviour in China, understanding that narratives that resonate with GCC consumers might not have the same impact in China.
Recognising cultural diversity within China is key to achieving advertising success. Just as the GCC is a tapestry of diverse traditions, tastes, and preferences, so is China.
Businesses need to acknowledge these differences to connect authentically with their audience, on multiple platforms and devices, if they want to be truly successful.
Moreover, the competition in China’s advertising market is fierce. International businesses face competition not only from each other but also from formidable local brands.
This emphasises the necessity of strong local partnerships, a deep understanding of the competitive landscape, and a nuanced approach to market strategy. Add to this a very specific landscape for brand safety, measurement and recognisable success metrics.
In this dynamic context, the use of advanced advertising technologies can significantly aid GCC businesses in navigating the Chinese market.
Advanced media-buying platforms, which deliver data-driven insights and access to premium ad inventories in China, can provide businesses with significant leverage to tap into China’s rich advertising potential.
These platforms offer precise targeting and measurement tools, enabling businesses to heighten brand awareness and enhance customer engagement more effectively, with brand safety in mind in a very complex and competitive Chinese market.
By Terry Kane, Managing Director Middle East & Africa at The Trade Desk
