CHINA AND DIRECT MARKETING

Table of Contents

Disclaimer
A Notice on Copyright
 Table of Contents
Foreword

Section 1 Direct Marketing in China: Introduction

      1.1 Definitions & Report Coverage
      1.2 Executive Summary
The DM Challenge in China
China's Strengths
Outlook for DM in China
      1.3 Relevant Reports From Access Asia

Section 2 Direct Marketing in China: The Industry Today

      2.1 The Market
        2.1.1 The Market: China's New Consumers
Focus Box: 19 Things to Know About DM
      2.2 The Market: Market Size
      2.2 Mail Order
        2.2.1 Mail Order: Current Environment
        2.2.2 Mail Order: Foreign Investment
        2.2.3 Mail Order: Official Recognition
      2.3 Mail Inserts
        2.3.1 Mail Inserts: Print Publications Overview
        2.3.2 Mail Inserts: Restructuring of Print Publications Sector
        2.3.3 Mail Inserts: Subscription Services Via the Post Office
        2.3.4 Mail Inserts: Current Environment
        2.3.5 Inserts and Testing
      2.4 Direct Mail
        2.4.1 Direct Mail: Overview
        Table 2.1 Direct Mailing Statistics in China
        2.4.2 Direct Mail: Major Players

Bertelsmann

Dangdang
Joyo
Mecox Lane
OA 365
Xiaokang
        2.4.3 Direct Mail: The Post Office - China Post

Case Study: Selling Home Computers

        2.4.4 Direct Mail: Postal Rates
        2.4.5 Direct Mail: Postal (Zip) Codes
        2.4.6 Direct Mail: Address Formats
        2.4.7 Direct Mail: Window Envelopes
        2.4.8 Direct Mail: Outer Envelopes and Colour Printing
        2.4.9 Direct Mail: Business Reply (BR) Envelopes

Case Study: Launching a New Mobile Phone

       2.5 Door-to-Door
        2.5.1 Door-to-Door: Overview

Focus Box: Less Door-to-Door, More Retail

      2.6 Telemarketing
        2.6.1 Telemarketing: Overview
      2.7 SMS
        2.7.1 SMS: Current Environment
        2.7.2 SMS: Marketing Opportunities
        2.7.3 SMS: Working with Chinese Copy
        2.7.4 SMS: Government Controls

Case Study: Coke*s SMS Success

        2.7.5 SMS: Market Outlook
      2.8 Direct Response Print Advertising
        2.8.1 Direct Response Print Advertising: Print Sector Overview
        2.8.2 Direct Response Print Advertising: Current Environment
        2.8.3 Direct Response Print Advertising: Offline Versus Online
        2.8.4 Direct Response Print Advertising: Lead Times and Standby Rates
        2.8.5 Direct Response Print Advertising: Standby Advertising
        2.8.6 Direct Response Print Advertising: Positioning
        2.8.7 Direct Response Print Advertising: Split Run Testing and Inserts
Focus Box: Testing, Testing, One#Two#Free!
        2.8.8 Direct Response Print Advertising: Quality
        2.8.9 Direct Response Print Advertising: Creative Ads for the Consumer

Case Study: Dow Jones and the Chopsticks

Focus Box: Do You Copy?
      2.9 Lists and List Brokers
        2.9.1 Lists and List Brokers: Overview
        2.9.2 Lists and List Brokers: Telephone Directories
        2.9.3 Lists and List Brokers: China Post
        2.9.4 Lists and List Brokers: Undeliverables
        2.9.5 Lists and List Brokers: Limited Options
        2.9.6 Lists and List Brokers: Build Your Own
       2.10 Home Shopping
         2.10.1 Home Shopping: Obstacles
         2.10.2 Home Shopping: Foreign Investors

Case Study: TVSN*s First-Mover Advantage

       2.11 Interactive & Pay TV
         2.11.1 Interactive & Pay TV: Obstacles
         2.11.2 Interactive & Pay TV: Foreign Investors
         2.11.3 Interactive & Pay TV: Shanghai Cable Network
       2.12 E-commerce
         2.12.1 Overview
         2.12.2 E-commerce: Payment Methods

Case Study: Traditional Payments Still the Best

         2.12.3 E-commerce: China Post
         2.12.4 E-commerce: Postal Saving and Remittance Bureau (PSRB)
         2.12.5 E-commerce: Major Players
Bertelsmann
Ctrip
Dangdang
Eachnet
Joyo
         2.12.6 E-commerce: Market Forecast
         Table 2.2 Total B2C E-commerce Expenditure by Country
       2.13 The Internet
         2.13.1 The Internet: Current Environment
         2.13.2 The Internet: Relationship Marketing

Case Study: China Interactive Gets Personal

         2.13.3 The Internet: Online Advertising
         Table 2.3 Users* Preferred Advert Format
       2.14 Email
         2.14.1 Email: Current Environment

Case Study: E-Marketing Beverages with Xianzai

         2.14.2 Response Rates
       2.15 Cards, Clubs and Points
         2.15.1 Cards, Clubs and Points: Card Issuers
         2.15.2 Cards, Clubs and Points: Joining Clubs and Earning Points
         2.15.3 Cards, Clubs and Points: Using the Data
         2.15.4 Cards, Clubs and Points: An Undeveloped Market

Case Study: Which Card Buys Loyalty?

       2.16 Radio
         2.16.1 Radio: Overview
         2.16.2 Radio: Traditional Government Medium
         2.16.2 Radio: Benefits for Consumer-Goods Firms
         2.16.3 Radio: Foreign Investment
       2.17 Cinema
         2.17.1 Cinema: Overview
         2.17.2 Cinema: Foreign Investment
         2.17.3 Cinema: On-Screen Advertising
       2.18 Outdoor and Mobile/Transport
         2.18.1 Outdoor and Mobile: Outdoor Overview
         2.18.2 Outdoor and Mobile: Transport Overview
       2.19 Field Marketing/Face-to-Face
       2.20 International Direct Marketing

Section 3 Direct Marketing in China: Infrastructure

      3.1 Postal Services
        3.1.1 Postal Services: China Post
        Table 3.1 China*s Post Offices and Postal Services
        3.1.2 Postal Services: China Post*s Facilities by Province
        Table 3.2 Postal Services Facilities by Province
        3.1.3 Postal Services: China Post*s Postal Volumes
        Table 3.3 Postal Service Volumes in China
        3.1.4 Postal Services: Per Capita Use
        Table 3.4 Postal Services: Business Volume by Province
        3.1.5 Postal Services: Express Mail Delivery

Case Study: Fighting for Express Mail

      3.2 Telecom Services
        3.2.1 Telecom Services: Telephone Penetration
        Table 3.5 Telecom Services in China
        3.2.2 Telecom Services: Telephone Lines Per Household
        3.2.3 Telecom Services: Telecom Operators
        3.2.4 Telecom Services: Technology
        3.2.5 Telecom Services: Wireless Pagers
      3.3 Internet Infrastructure
        3.3.1 Internet Infrastructure: Overview
        3.3.2 Internet Infrastructure: Users in China

Case Study: Driving Consumers to Product Trial

        3.3.4 Internet Infrastructure: Personal Computers
        Table 3.8 PC Ownership per Urban Household
      3.4 Television Infrastructure
        3.4.1 TV Infrastructure: Overview
        Table 3.9 China TV Statistics
        3.4.2 TV Infrastructure: TV Penetration
        Table 3.10 % Growth in Urban Household TV Ownership, 1997-2002
        Table 3.11 Urban Household TV Ownership
        3.4.3 TV Infrastructure: Terrestrial Television
        3.4.4 TV Infrastructure: Cable Television
        3.4.5 TV Infrastructure: Satellite Television

Section 4 Direct Marketing in China: SWOT Analysis

      4.1 SWOT Analysis: Strengths
      4.2 SWOT Analysis: Weaknesses
      4.3 SWOT Analysis: Opportunities
      4.4 SWOT Analysis: Threats
Section 5 Direct Marketing in China: Regulatory Environment
      5.1 Regulatory Environment
        5.1.1 Regulatory Environment: Overview
        5.1.2 Regulatory Environment: Consumer Privacy Legislation

Consumer Privacy

Direct Sales
              ※Bonus§, ※Gift§ and Discounted Products and Services
Product Recalls
Consumers's Right of Safety
Return and Refund
Punitive Damages
Administrative Penalties
        5.1.3 Postal Legislation
        5.1.4 Advertising Legislation
Focus Box: Prescription Drug Laws
        5.1.5 Regulatory Environment: Internet Legislation
        5.1.6 Regulatory Environment: Direct Selling Legislation
Notice of the State Council on the Prohibition of Direct Marketing Business Activities, April 18th 1998.
        5.1.7 SMS Legislation
      5.2 Government Organizations
        5.2.1 Ministry of Commerce (MOFCOM)
State Economic & Trade Commission
Ministry of Foreign Trade & Economic Co-operation (MOFTEC)
        5.2.2 State Postal Bureau (China Post)
        Table 5.1 China Post Structure
        5.2.3 Ministry of Information Industries (MII)
        5.2.4 State Administration of Radio, Film and Television (SARFT)
        5.2.5 China Radio, Film & Television Group (CRFT)
        5.2.6 China Advertising Association (CAA)
      5.3 The China Direct Marketing Association
China DMA members
Benefits of China DMA membership
Events and Conferences
Legal and regulatory issues
Ethics
Education
Information
Commissions
The China DMA Website

Section 6 Direct Marketing in China: Demographics

      6.1 Regions of China
      Map 1.1 China: Provinces and Municipalities
      6.2 Demographics
        6.2.1 Demographics: Total Population
        Table 6.1 Total Population
        6.2.2 Demographics: Population by Location
        Table 6.2 Population by Urban-Rural Divide
        6.2.3 Demographics: Population Breakdown by Location
        Table 6.6 Population Breakdown by Urban-Rural Divide
        6.2.4 Demographics: Population by Province
        Table 6.4 Population by Province
        6.2.5 Demographics: Population Density by Province
        Table 6.5 Population Density by Province
        6.2.6 Demographics: Population Concentration
        6.2.7 Demographics: Population by Gender
        Table 6.6 Total Population Breakdown by Gender
        6.2.8 Demographics: Population by Age Group
        Table 6.7 Population by Age Group
        Table 6.8 Population by Age Group (%)
      6.3 Consumer Attitudes
        6.3.1 Consumer Attitudes: Overview
        6.3.2 Consumer Attitudes: Response to Political Change
        6.3.3 Consumer Attitudes: Response to Economic Change
        6.3.4 Consumer Attitudes: Changes in Lifestyle
Livelihood
Individual loans
Housing
Possessions
Travel
Entertainment
Health and Fitness
Purchasing Influences
Taboos
      6.4 Consumer Wealth
        6.4.1 Consumer Wealth: GDP and Cost of Living
Dealing with WTO
Confident Shoppers
        Table 6.9 GDP and Cost of Living Index
        6.4.2 Consumer Wealth: Provincial Differences in GDP
        Table 6.10 GDP Ranked by Province, 1996每2002*
        6.4.3 Consumer Wealth: GDP Growth by Province
        Table 6.11 GDP Growth Ranked by Province
        6.4.4 Consumer Wealth: GDP Per Capita by Province
        Table 6.12 Per Capita GDP Ranked by Province
        6.4.5 Consumer Wealth: Concentration of Wealth by Province
        6.4.6 Consumer Wealth: The Major Cities
        Table 6.13 Leading Cities: Key Economic Indicators
      6.5 Households
        6.5.1 Households: Overview of Household Conditions
        6.5.2 Households: Total Households by Size
        Table 6.14 Number of Households by Size
        6.5.3 Households: Total households by Urban/Rural Split
        Table 6.15 Number and Size of Households by Location
        6.5.4 Households: Income Earners Per Household
        Table 6.16 Average Number of Income Earners per Household
      6.6 Employment
        6.6.1 Employment: Number of Workers by Sector
        Table 6.17 National Employment by Sector, 1996每2002
        6.6.2 Employment: Growth by Sector
        Table 6.18 Growth in Employment by Sector, 1996每2002
        6.6.3 Employment: Number of Workers by Gender
        6.6.3 Employment: Number of Workers by Habitation
        Table 6.19 National Workforce by Habitation, 1996每2002
        6.6.4 Employment: Urban Unemployment
        Table 6.20 Urban Unemployment Rates, 1996每2002
      6.7 Consumer Income
        6.7.1 Consumer Income: Average Incomes by Sector
        Table 6.21 Average Incomes by Sector
        6.7.2 Consumer Income: Growth by Sector
        Table 6.22 Growth in Average Incomes by Sector, 1996每2002
        6.7.3 Consumer Income: Average Incomes by Region
        Table 6.23 Average Incomes by Region
        6.8.4 Consumer Income: Growth by Region
        Table 6.24 Growth in Average Incomes by Region, 1998每2002
      6.8 Consumer Market
        6.8.1 Consumer Market: Spending Trends
        Table 6.25 Consumer Expenditure* by Broad Sector at Current Prices
        6.8.2 Consumer Market: Per Capita Consumer Expenditure
        Table 6.26 Per Capita Consumer Expenditure* by Broad Sector at Current Prices, 1996每2002
        6.8.3 Consumer Market: Retail Sales and Consumer Spending
        Table 6.27 Retail Sales as a Proportion of Consumer Expenditure, 1996每2002
        6.8.4 Consumer Market: Urban Income and Spending Compared
        Table 6.28 Urban Average Annual Income/Expenditure, 1996每2002

Appendix Direct Marketing in China: Post Office Interview

Shanghai 2003
The Authors
Barry Colman
Christopher Torrens
Relevant Reports From Access Asia