Win overseas Chinese for your local business and lift the potential of their immense purchasing power. Raise your brand’s visibility and increase sales by tapping into the overseas Chinese market segment.
Understanding the preferences of overseas Chinese allows you to cater to their specific needs and desires with targeted strategies. The China experts at China Gravy with more than 10 years of practical experience guide you through the process step by step.
Table of Contents
- The Power of Overseas Chinese
- How to Win Overseas Chinese for Your Local Business
- The Takeaway – Win Overseas Chinese for Your Local Business
Let’s begin.
The Power of Overseas Chinese
Chinese people living abroad, also known as overseas Chinese, are the largest diaspora in the world. About 10.7 million Chinese live outside of mainland China, and 60 million if their descendants are included.
Where do Overseas Chinese Live?
Chinese communities can be found in many countries of the world. According to minorityrights.org, the largest groups can be found in:
- Thailand: 9.3 million
- Malaysia: 7.4 million
- USA: 5.4 million
- Singapore: 3 million
- Indonesia: 2.8 million
- Canada: 1.7 million
They typically have strong ties to their new home countries as well as their cultural roots in China. These aspects make them a unique and valuable target demographic for your local business around the world.
These communities typically maintain ties to their family or ancestors in China as well as Chinese customs and traditions.
In this article, overseas Chinese refers to people born in mainland China and who immigrated to another country to study or work and their first-generation descendants. It does not refer to Chinese who are born abroad in the second-generation, and may not even speak Mandarin.
Purchasing Habits of Overseas Chinese
The global Chinese market, retail and e-commerce, is driven by citizens in mainland China. However, Chinese expats around the world also contribute to the relevance and size of the Chinese economy.
- High quality, reputation, and prestige are of utmost importance
- Cultural preferences in product choices (emphasis on values like family and health)
- Brand loyalty among Chinese diaspora
- Ties to the Chinese community where they live (often following their recommendations for products and services or business with any relation to China, e.g. Chinese founder)
- Use of Chinese mobile payment services (WeChat Pay, Alipay)
Cater to these unique preferences with your local business to win Chinese communities abroad for your brand.
Types of Businesses That Attract Chinese Community
As a local brand, you can leverage the power of the overseas Chinese market. Service-based businesses in the following sectors are particularly attractive to Chinese people.
- Education/Universities
- Immigration/Golden Visa (Real Estate)
- Hospitality/Tourism
- Healthcare/Wellness (Traditional Chinese Medicine)
- Chinese Food and Beverages
- SMEs/Private Sector
Keep in mind that Chinese people overseas expect high-end services, especially in the hospitality sector (e.g. restaurants, clubs).
Golden visa refers to residency or citizenship through real estate investment, for which Portugal, Greece, and Spain are most attractive for Chinese people.
Private local small and medium enterprises can be anything from beauty salons to dental clinics, that tailor their services to the needs and expectations of the Chinese community.
But how can brands start with marketing to overseas Chinese?
How to Win Overseas Chinese for Your Local Business
Achieve these specific goals for your local service-based business when it comes to overseas Chinese
- Raise your brand’s visibility (through targeted digital campaigns)
- Increase sales (through landing pages/social presence that convert prospects effectively)
Based on our experience of more than 10 years, these are the individual strategic steps you can take to attract overseas Chinese to your local business.
1. Understand Overseas Chinese
Understanding your target demographic, their preferences, needs, and spending habits is crucial to gain them as loyal customers.
The overseas Chinese population is diverse and includes professionals, students, entrepreneurs, and established Chinese immigrants.
In case you are not yet familiar with the Chinese community in your area, conduct market research to understand how your business can make their lives easier.
2. Leverage Chinese Social Media
The Chinese digital landscape differs from the Western world. Let’s examine how.
Key Differences Chinese vs. Western Social Media
While there are some overlaps in use and purpose, there are vast differences in how social media is used.
- Big players like Google and Facebook are blocked. Therefore, Chinese people are used to the Chinese social media ecosystem even when they are overseas. Most of them still use and stick to the Chinese social apps they know and trust.
- The user behavior of Chinese netizens differs vastly from the West due to cultural, social, and technological factors.
- Western users typically use separate apps for each function and rely more on credit/debit cards.
- Chinese netizens prefer mobile payments, livestream shopping, and influencer engagement, which is driven by their collectivist culture and a regulated internet environment.
To sum it up, Chinese online users primarily use
- WeChat for their communication, payment, shopping
- Xiaohongshu and Douyin (not TikTok!) for social content
- Bilbili for short videos
So, what is so special about WeChat?
Why Open a WeChat Official Account
We recommend opening a WeChat Official Account (OA) for your brand to reach overseas Chinese. Other Chinese platforms like Weibo, Douyin, and RED are also important, but more relevant for citizens in mainland China.
Use the WeChat OA to
- share engaging information
- offer promotions
- provide customer service
- create groups around your niche
- run targeted ads to reach your ideal audience
Keep in mind that while overseas Chinese will likely speak English and the basics of the local language where they live, they will still prefer information and customer support in Chinese.
For example, take a look at this in-depth article on how to win Chinese students abroad with a WeChat OA and ads, influencer collaborations, and more.
If you would like help with setting up a WeChat Official Account, a China marketing expert like China Gravy can help you.
3. Translate and Localize Your Website
Develop a Chinese website, and optimize it for Chinese search engines. Keep in mind that localization goes way beyond simple translation. It includes adapting your content to resonate with Chinese culture, values, and preferences.
We recommend using simplified Chinese characters and incorporating culturally relevant photos, colors, and references. Highlight aspects of your services that speak to Chinese cultural values such as family, health, and quality.
4. Offer Chinese Payment Options
Many overseas Chinese prefer using Alipay and WeChat Pay for transactions. Integrating these payment options can be challenging, but can be made easier when partnering with payment processors like Stripe or PayPal.
5. Build Partnerships with Chinese Communities
Overseas Chinese communities often have strong local ties. Collaborate with Chinese cultural associations, student groups, business chambers, and other institutions to promote your business.
Consider sponsoring cultural events, festivals, and other community activities to increase your brand visibility and trust within the Chinese community.
6. Collaborate with Influencers
Key Opinion Leaders (KOLs) play a significant role in Chinese consumer behavior. Collaborate with influencers who are popular among the overseas Chinese community in your area.
These influencers can provide authentic reviews and recommendations of your services, and help to build your brand’s reputation and reach.
A China expert like China Gravy can connect you with the best Chinese influencers for your niche and goals.
7. Highlight Your Brand’s Connection to China
If your business has any connections to China, such as partnerships with Chinese companies, or products from China, highlight these in your marketing communication.
This connection can create a sense of familiarity and trust among overseas Chinese consumers.
8. Run Marketing Campaigns
Online and offline marketing campaigns with bright and disruptive visuals together with a culturally resonant message, and clear call-to-action drive engagement.
Our top tips are
- Use QR codes (scan at offline touchpoints and direct viewers to landing page)
- Include popular Chinese shopping festivals in your marketing plan, e.g. Singles’ Day (11.11)
Make sure to collect feedback from your Chinese customers to understand their needs and preferences. Use surveys and reviews to continuously improve your services and marketing strategies.
By showing that you value and act on customer feedback, you have the possibility to foster brand loyalty and positive word-of-mouth marketing.
The Takeaway – Win Overseas Chinese for Your Local Business
Attract overseas Chinese to your local service business on the right channels with a culturally adapted approach. Leverage popular Chinese social media WeChat, localize your marketing efforts, and tap into the local Chinese community for maximum reach and sales conversion.
A knowledgeable partner like China Gravy, with over a decade of practical experience, can guide you through this process step by step.